FLOVASC drug was launched two years ago, and since it has achieved less than 1% of the market share. Its sales have been disappointing since its average performance can still be considered as low because, in patients with Cardiovascular complications and has a history of stroke, it can reduce death incidences at the rate of 1 out of 100 patients, typically 10% versus 9% incidence, which is still a lower rate—however, I advise the Client to pursue this deal because of the three years expected return. Also, the annual marketing and non-personal promotional budget set at $3MM provides a possibility of meeting the expected projected sales. Putting in place good marketing strategies and running promotional advertisements will make the Client realize these returns. The present value of the drug, based on the three years expected returns, can be calculated as: Present Value = Fixed value (1+i)-n, which yields $250(1+0.1)-3=$681.81. This is an achievable value when the necessary marketing decisions are implemented well. Also, the Client’s interest in specialization, which is only sold FLOVASC oral antiplatelet drug, allows him to focus on company branding and product differentiation Baxter, W. T. (1975). This will make the company well known for that particular drug and even obtain recommendations for by medics hence making it grow even bigger.
The Peripheral Artery disease market size is expected to go even higher because more people nowadays are at high risk of contracting it. Based on the risk factors for PAD, many people engage in smoking and drugs, there’s a high intake of sugar, and sugary foods, which makes diabetic cases to be on the rise, stress and poor eating habits of people have led to an increase in high blood pressure and high cholesterol intake which makes the drug be on more demand in the coming years. According to the sub-segment analysis, FLOVASC drug reduces the incidence of PAD related hospitalization, revascularization procedures, and amputation for 20 out of 100 patients (30% versus 10% incidence). Due to its risen efficiency, there is value in the new PAD treatment, and FLOVASC drug might be priced at a higher value at the end of the expected 3-year returns.
For the Client to achieve a working market research project, the project stakeholders are essential and impactful in making this research yield success. These stakeholders have a direct interest in the project, and they are actively involved in all the phases of the project. Stakeholders that our Client should consider are the top management of the pharmaceutical company. The top management includes the presidents, directors, and CEO of the pharmaceutical company. Their core objective is to provide the necessary material and staff experienced in dealing with the project. They are also required to oversee the whole project and provide suggestions and solutions where problems may arise. The Project team is the second stakeholders to consider. It consists of people dedicated to the project, but they offer their services on a part-time basis (Goodpaster, K. E. 1991). Their core objective will be to help top management supervise and analyze the flow of work and provide recommendations where necessary. The resource managers will also play a key role in being the stakeholders, and their main objective will be to ensure that the borrowed resources to be put in the project research are well used and have yielded results. They are also needed to acquire the best equipment for working for the staff. They must establish good relationships with the members outside and inside the project team to get the research’s best equipment. The internal customers are also stakeholders in this research project. They ensure that the project meets the internal customers (Goodpaster, K. E. 1991). They hold power to either accept or reject the proposed work.
At the beginning of the research, the top manager should analyze and clarify the specifications requirement document and each phase’s main deliverables. All the stakeholders should be well equipped with this knowledge and seek clarification where they do not understand that they meet the customer demands. Thought the project, the customer should be made aware of each phase’s deliverables and make sure the project manager addresses any issues raised. (Goodpaster, K. E. 1991). The external customer is also an important stakeholder in the whole process because they play an important role during the marketing phase. They may get interested in the product and recommend it for use to other external customers, hence boosting the drug’s sales at the end of the day. This research project’s main deliverable will be establishing if FLOVASC drug will fit into the market and have a broad market.
The proper timeline for this research project is about one year and eight months. The first six months should be used to conduct thorough literature reviews and contact experts to identify gaps, risks, opportunities, and even strengths. In this period, members should also identify the project’s specific aims based on the literature review results, research plan, and the preliminary data results. For the next five months, the team should establish target agencies based on their objectives and the report. They should go through the agencies’ instructions and guidelines and make sure the agencies do fit with their research objectives. For the next four months, they should begin drafting the proposed budget to realize the project goals fully. They should also know their potential reviewers and obtain relatable advice from the necessary experts in the field. A proposal budget should be out in the next five months and provide it for both insiders and outsiders for reviewing and comments. They should then give the final proposed budget and a well-defined account of how the budget was reached and what each quotation will cater for. Finally, for the remaining time, they are to write an abstract of the whole research process and submit the budget proposal to the Client’s budget office and also submit the proposal to the overall supervisor for compliance review.
Baxter, W. T. (1975). Accounting values and inflation. London: McGraw-Hill.
Churchill, G. A., & Iacobucci, D. (2006). Marketing research: methodological foundations. New York: Dryden Press.
Goodpaster, K. E. (1991). Business ethics and stakeholder analysis. Business ethics quarterly, 53-73.