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    Pediasure - Marketing Analytics - Spring 2020

    Uploaded by

    Asmer Duraid Khan
    1) PediaSure's primary target market is children ages 2-20 from socioeconomic classes A and B in Pakistan. Its secondary target is doctors, as 80% of PediaSure's marketing is done through doctors to persuade them of its nutritional benefits. 2) Rising prices due to currency depreciation and taxes have caused pricing to become an issue for PediaSure consumers. 3) Abbott should consider lowering prices or introducing a new brand at a lower price point to better target socioeconomic classes B and C as the infant formula market in Pakistan is growing rapidly.

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    Pediasure - Marketing Analytics - Spring 2020

    Uploaded by

    Asmer Duraid Khan
    393 views21 pages
    1) PediaSure's primary target market is children ages 2-20 from socioeconomic classes A and B in Pakistan. Its secondary target is doctors, as 80% of PediaSure's marketing is done through doctors to persuade them of its nutritional benefits. 2) Rising prices due to currency depreciation and taxes have caused pricing to become an issue for PediaSure consumers. 3) Abbott should consider lowering prices or introducing a new brand at a lower price point to better target socioeconomic classes B and C as the infant formula market in Pakistan is growing rapidly.

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    PPT- Pediasure- Marketing Analytics - Spring 2020

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    1) PediaSure's primary target market is children ages 2-20 from socioeconomic classes A and B in Pakistan. Its secondary target is doctors, as 80% of PediaSure's marketing is done through doctors to persuade them of its nutritional benefits. 2) Rising prices due to currency depreciation and taxes have caused pricing to become an issue for PediaSure consumers. 3) Abbott should consider lowering prices or introducing a new brand at a lower price point to better target socioeconomic classes B and C as the infant formula market in Pakistan is growing rapidly.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    393 views21 pages

    Pediasure - Marketing Analytics - Spring 2020

    Uploaded by

    Asmer Duraid Khan
    1) PediaSure's primary target market is children ages 2-20 from socioeconomic classes A and B in Pakistan. Its secondary target is doctors, as 80% of PediaSure's marketing is done through doctors to persuade them of its nutritional benefits. 2) Rising prices due to currency depreciation and taxes have caused pricing to become an issue for PediaSure consumers. 3) Abbott should consider lowering prices or introducing a new brand at a lower price point to better target socioeconomic classes B and C as the infant formula market in Pakistan is growing rapidly.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    Marketing

    Analytics
    SPRING- 2020

    CASE STUDY
    GROUP MEMEBERS
    1 1 1

    Mhd. Mahla
    Javeria
    Abdul ka
    h Zakir
    Malik Dyer
    1 1 1

    Kanwa
    Asmer Hamza
    l
    Khan Anwer
    Saeed
    COMPANY INTRODUCTION

    Abbott is an American company founded in


    1
    1888

    2 Started operation in Pakistan in 1948

    Abbott Pakistan has leadership in the fields of pain


    3 management, anesthesia, medical nutrition and anti-
    infectives.
    INDUSTRY DYNAMICS

    Pakistani pharmaceutical industry is worth


    1 US$3 bn with a growth rate of 15.61 per cent
    in 2019

    industry is highly competitive .Companies


    2 ranging from large MNCs to small companies with
    one-room operations

    The powdered milk, healthy drinks and food supplement


    3
    was approximately Rs 13 billion market.
    COMPETITION

    Price categories Infant formula Grown up category


    category – (Age: 0- (Age: 3-8 years)
    2 years)
    Low price (Rs 150-350) Lactogen, Nestle Milo Nido ,Lactogen

    Medium price (Rs 350-550) Meiji, Morinaga Meiji

    Med Johnson, Abbott, Nutrina,


    High price (Rs 550-600) Abbott: Pediasure
    Cow & Gate
    PEDIASURE
    Imported from Singapore
    1
    Second
    1 Best selling product of Abbott

    1
    Falls under Abbott nutrition Division
    Market
    1 leader in category in terms of both volume and value
    1
    Segmented among Toddle

    1Target age group 2 - 20


    Provide
    1 balanced nutrition of protein, carbohydrates, fats and vitamins.
    Provide
    1 nutrition of complete meal and not just flavor enhancer
    T
    1arget socio-economic class is A and B
    THE CASE PROBLEM

    PRICE HIKING

    ? ISSUE WITH
    PediaSure
    REASONS OF PRICE HIKING
    Depreciation of Rupee • Import Finished Goods from Singapore
    Currency • payments are made in Dollars resulting in burden
    on customers
    • Increase in inflation rate increase the expenditures
    Increase in Inflation rate of the company
    • Includes Transportation costs, sales and distribution
    costs etc.
    • Since the product is imported so company has to
    Import Duties and Charges pay high custom duty charges at port for clearance
    which eventually resulted in price hiking".
    • Custom Duty – 20% and additional custom duty is
    Tax Imposition • 2%
    Value added tax and other taxes on imported
    products which resulted in price hike.
    INFANT BUSINESS SEGMENT
    Estimated World Population by 733.3
    millio
    2025: n

    19.5
    Pakistan’s current population age
    millio
    group 0-4: n

    death and stunting rate in the age


    50%
    group:

    PKR
    17.32
    Current Market: billio
    n
    INFANT BUSINESS SEGMENT

    Current market growth rate 7.5%

    PKR
    26
    Expected Sales Volume by 2022: billio
    n

    CAGR: 11%
    MARKETING AND DISTRIBUTION
    Total number of pharmaceutical 640
    companies

    Multi national companies 26

    Market share of multi national


    31%
    companies

    5.9
    Market share of Abbott Pakistan %

    Ranking of Abbott Pakistan 3rd


    MARKETING AND DISTRIBUTION

    Share in Adult and pediatric >


    segment 90%

    23.6
    Increase in nutritional sales in 2018 %

    Increase in nutritional sales in


    16%
    2019
    MARKETING AND DISTRIBUTION

    TRADITIONAL THROUGH
    MARKETING DOCTORS

    20% 80%
    SALES FORCE

    people in the sales force of the PediaSure including the 50-


    managers 80

    Representatives for PediaSure 40

    Each representative reach no of doctors 120-


    150
    each
    MARKETING AND DISTRIBUTION

    1 Highly scientific material is provided to


    persuade the doctors.
    1 Marketing channels for PediaSure includes
    • hypermarket and large super markets,
    • pharmacies (including both hospital and
    retail pharmacies),
    • small supermarkets, hard discounters
    and other traditional stores
    more
    1 than 100 promotion representatives for big stores.
    MARKETING AND DISTRIBUTION

    Current distributors: Premier


    agencies

    Distributors in Karachi: Waseem


    brothers
    MARKETING AND DISTRIBUTION
    1 Recent marketing activities for consumers in Q1 in 2020 included

     TV advertisement
     Sales promotion activities in Mall and super stores
     Gondola shelf activity in A class stores
     Sure child programs in schools
    1  
    Marketing activities for doctors included
     
     NUTRI NATION PROGRAM
     Nutritional assessment in ward of more than 200 hospitals in Pakistan
     OPD nutritional assessment camps with Doctors
     Taste camps in A-class hospitals

    *like a focus group it is Patent program of Abbott nutrition with more than 200
    doctors on national level.
     
    PEDIASURE’S WAY FORWARD
    Pricing
    1 is an issue for consumers

    Rising
    1 competition and growing market

    1
    Lower the prices or introduce a flagging brand

    1Changing preference
    Marketing
    1 and Distribution strategy

    Growing
    1 Infant segment Business
    QUESTIONS
    What is the primary and secondary target market of PediaSure
    and Why?

    What is the reason to promote Pediasure through Doctors?

    What do you think about the pricing strategy of Pedisure, Do


    you think that Pediasure’s price is justified?

    How do you assess the Infant Business segment in Pakistan?


    QUESTIONS
    What is your assessment on the marketing and distribution
    strategy of Pediasure?

    Do you think that Abbott should launch a flagging brand to


    cater to the B and C segment of the society?

    A flagging brand can have cannibalization effects on the main


    brand of Pediasure? What is your opinion and how can you
    counter that?

    What steps PediaSure can take to change the preference of


    the Infants (0-2 years of age), when they become older than 2
    years, as they are used to a certain brand of food supplement
    right from their birth?

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