PROPECIA

Submitted by:

GROUP 4 Section C
Avantika Tikmany
Darshi Vasavada
Gaurav Chaudhari
Mathangi V
Nikhil Joseph
Romil Dwivedi
Sreeram P

Consumer Insights

Nee
d
Wan
t

Look younger
Social acceptance
Confidence Booster

Safe and effective solution

No side-effects

Situational Analysis

COMPANY
Merck Worlds largest pharmaceutical company
with 70,000 employees
Ranked high on Fortunes List of Most Admired
Companies
Since 1995, launched 9 products, 3 particularly
successful
Focused on diseases with large patient
population
Emphasis on safety
Previous experience of advertising DTC after
changed FDA regulation

COMPANY(contd..)

Products that are potent, well tolerated and convenient to use, with
clinical outcomes

PROPECIA

1 mg dose of Finasteride
First of its kind to treat Male Pattern Hair Loss
83% of men in the age group 18-41yrs maintained hair count
66% witnessed regrowth
Consuming more than 1 pill a day did not hasten the process
Took 3 months to produce results
On stopping consumption hair loss resumed
Birth defects in pregnant women who came in contact with it
Less than 2% of men experienced sexual side effects on taking the pill

CUSTOMERS
MPHL occurred in 30-40 million American men
Potential market half male population
Tw0-thirds of men suffering from some degree of
hair loss
One third considered hair loss a future problem
One third resigned themselves to the problem
$ 1.5 billion annual sales
$ 50 out of pocket expense per month Not
covered by health insurance

COMPETITORS
Hair Replacement surgery
Half of $ 1.5 Billion sales
Cost $2000 to $10000

Mechanical solution
Wigs, weaves and toupes Cost of $500 to $3500
Additional cost $50 to $70 every six weeks

Topical Interventions

Lotions and shampoos $20 to $40 a month

Major one Rogaine
400,000 users, $100 mn annual sales
Cost reduced from $60 to $30 and customers increased to 2.5
mn when it became over the counter
95% brand awareness in a decade
Planning to launch extra strength version

CONTEXT
FDA regulated labeling of OTC and prescription drugs
1997, FDA allowed broadcast of ads without full
disclosure
Also required to mention a national supporting print
campaign and a website for more information
Could request discontinuation of ad and ask for a
corrective one in its place
Before marketing, drug had to be FDA approved
Had to continuously inform FDA about drug safety and
adverse effects

COLLABORATORS

Primary Care Physician(PCP) promotion a major strategy

Sponsored conferences and speaker programs organized
Complimentary samples of product given to Physicians
1000 sales reps deployed for a product
Each rep assigned a list of Physicians
Most time spent in waiting for an opportune moment
Less than 2 min to make an actual pitch
Average number of calls before a PCP began prescribing a
drug =6
Merck identified PCPs who were big prescribers in this
category

THE LAUNCH PLAN

What type of advertising to be used?

Product
claim ads

Reminder
ads

Help-seeking
ads

STRATEGY

POSITIONING

One day science will create a pill for hair loss. That day is
today.
Ads with a catchy tagline
Generate an excitement around the product
Pill for men focused on TG (hair losing men)
As a preventive drug

Only marginal hair gains, no dramatic increase in hair

Prevention of hair fall for 83% people
Hair regrowth for 66% people
Emphasize above details in Physician detailing and
advertisements

DETAILING SUPPORT
Challenges:
3 new drug to be launched to follow PROPECIA in few
months time
10000 dermatologist- more 50 to 100 sales reps needed
No prior experience of marketing of dermatology products
Training new sales people
Low sales realization by PCPs (26000 out of 126000)
Advertising resource constraint
Prospects:
Dermatologists are more likely to be excited about
PROPECIA
More comfortable about talking hair loss with patients
Their advice will carry more credibility
Patients visiting Dermatologists are more likely to be
concerned about hair loss and are more likely to spend on
hair loss treatment

THANK YOU!