Question

You've been asked to analyze strategy for a specific drug and present a pricing strategy to your corporate board. Your presentation would include the following elements, and at the conclusion, your goal is to have your recommendation accepted by your board.

• Begin by identifying a drug (real or imaginary) and its pharmaceutical firm
• Identify of the possible price objectives
• Note the demand
• Identify of estimated costs
• Analyze the competition
• Recommend a pricing strategy

Answer 1

Drug - Salbutamol inhaler

Pharmaceutical firm - Cipla

The possible price objectives :-

- to sell more number of drug

- to provide such a effective drug at affordable cost

- to make the drug more familiar

The demand of the drug is so much that it is the first drug prescribed by the doctors for the patients with breathing difficulty like for asthma , COPD patients etc because it's of its effectiveness , less side effects , complications ,and low cost .

Estimated cost of the drug is 0.09$ to 0.25$ .

The competition is very huge as it is one of the common drug made by many other pharmaceutical companies like Baxter ,biogen etc

The pricing strategy for new product are :-

- Market skimming means setting a high price for a new product to maximize revenues from the target market . Results in fewer more profitable sales

- Market penetration means setting a low price for a new product in order to attract more number of buyers . Results in larger market share .