Pfizer
Submitted by:
Ankur Amitabh
Jai Soni
Milan Ashar
Shivang Sah
Sai Harish
Pfizer
Pfizer Cmpny is wrld renwned mnufcturer f phrmceuticl
prducts nt nly t niml helth cre but fr humn helth cre s
well.
Pfizer niml helth cre divisin is investing mre t its cre pertinl
dvntge f R&D ffecting t the qulity nd mrketing mngement f
the prducts.
Bsed n reprts nd sttisticl recrds, the niml Helth segment f
Pfizer ws ble t btin incresed revenues by twenty-tw percent,
dding tw billin US dllrs.
This success hs been ttributed t the cmpnys inline prduct brnds
like Drxxin nd Excede, medictin fr treting cttle nd swine
respirtry diseses.
Intrductin t Cse
Clvmx, Revlutin nd Rimdyl re ll medictins fr cmpnin
nimls tht hve cntributed gretly t Pfizers niml helth segment
These prduct segments were ble t cntribute significnt 3.7 percent
t its ttl revenue in 2004, 3.6 percent in 2003 nd 3.5 percent in 2002.
Frm these recrds, it is cler tht Pfizer is ble t cquire cnsistent
grwth in its niml helth prducts.
Gil ss, Territry Mnger f Pfizer Inc., niml Helth Grup in
western Mntn nd suth-estern Idh. She sld high qulity niml
helth prducts, ftentimes t premium price. She is ls respnsible t
visit nd cmmunicte with the rnchers in her territry.
The NFT greement with Cnd nd Mexic hd hit the lcl rncher
prticulrly hrd.
Tht mkes rncher n chice but t lwer their price. Sme ther
resns fr the decline re switching t lterntive met prduct,
Chnges in custmer lifestyles, 0Helth/nutritin issues.
Rnchers were ctively seeking wys t cut csts.
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ne wy in which rnchers culd cut csts ws either scrimp n niml
helth prducts r t switch t lwer cst lterntive nd sme rnchers
wnts t give up.
Gil ss wrried nt nly but her cmpny but mst especilly t her
livelihd
Utiliztin f Infrmtin Frm Herd Mngement
The segregtin f infrmtin frm the direct dt infrmtin feeds
frm the frmers cretes glem f hpe in mnging the prducts nd
prduct definitin f Pfizers niml prduct divisin.
sscitins f livestck frmers rund the wrld re being cntcted t
simulte the prgrm f defining the right specifictins f the medicl
prducts being creted in the min prductin site.
Pfizer niml Helth
Pfizer niml Helth hs tw divisins: -
Cmpnin nimls (Pets Cts, Dgs & Hrses)
Livestck (Beef Cttle, Diry Cttle & Prk)
The Cre Issue
Less demnd fr U.S. beef nd the resulting sles decline f Pfizer Prduct.
The cnsumers wnt: -
Fd Sfety ( Md Cw Disese)
Helthy ltherntives (Chicken, Fish)
Ese f preprtin (Micrwveble prducts)
Brrier t Ptentil New Mrkets
Trde Brriers due t Md Cw
QUESTINS
Q1. Bsed n the reserch findings, evlute Pfizers Cw/Clf
tems herd-size segmenttin pprch.
fter reviewing findings frm the reserch survey it is imprtnt t ntice
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tht herd-size segmenttin hd little t n effect in cpturing differences in
behvirl ptterns mng rnchers.
Rnchers in the business nd trditinlist segments re putting lt f
vlue in implementing mre cnsumer fcused mrketing effrts. These
effrts re mde up f, but n limited t, prducing higher qulity, nd mre
cnsistent beef prduct.
Hbbyists hve similr belief in regrds t qulity nd its ptentil t
increse mrket shre, hwever they view the tsk f cnsistency s futile in
cmprisn t tht f the prk nd/r pultry industry, due t the sheer size
f the nimls they wrk with.
The herd-size segmenttin pprch cn be cnsidered inefficient fr yet
nther resn s well; in regrd t ll segments within this pprch nne
f the segments hve cnfidence in relying n verticl mrketing nd
brnded beef mdel.
Q2. If it desnt mke sense t cntinue segmenting n the bsis
f herd size, wht vribles cn be used t segment tht mre
ccurtely cpture differences in the mrket.
Methd 1: n bsis f Experience:
Methd 2: n bsis f the veterinrin visits:
2 mrked different grup ne wh pprches the vets fr helth check-
up & ne wh d nt sscite with vet fr helth issues.
2 mjr grup with 2 mjr vrint is sscitin & 2 different strtegy
needed fr ctin.
Methd 3: n bsis f the pckers 5 grups t be mde:
Pcker1
Pcker2
3
Pcker 3
Pcker 4
thers
80% f the ttl mrket is being cntrlled by the 4 pckers; thus ech
pcker hs lrge dtbse & custmer sscitin which cn be wrked
upn t pull in drugs in the mrket s the pckers re the price setter.
Q3. Wht segments re mst vible fr Pfizer?
Methd 1: the mst vible segment is the grup with mst experience
Methd 2: the segment wh pprches the vet fr helth checkup
Methd 3: the segment f pckers wh hd the mst munt f dt.
Q4. Hw des the suggested segmenttin pprch cpitlize n
chnges in the cttle industry? Wht Implictins d the industry
chnges hve fr Pfizer?
The industry is chnging in reference t brnding & helth cnscius
issues.
Tw mjr influencer: vets, pckers
Methd 2: vet will ply n imprtnt rle in influencing the trget
segment
Methd 3: There will be pull creted wh wuld influence the segment
t bring in the helthy cttle.
Q5. Implictin f industry chnges n Pfizer
The custmer drive t buy prduct is decresing.
Thus the driving frce being different, the push & pull strtegy
implemented by Pfizer needs t chnge with time with the driving fctrs
in mind.
The segmenttin tht held true 15yers bck hs been n
unmngeble & diffused wy f generting led fr mrketing f
prduct.
Q6. Hw gd is the reserch fr drwing cnclusins but
mrket segmenttin f beef prducers?
Key reserch finding but the beef prducers:-
Mst rnchers re still dubtful but brnded beef mdel
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Skepticism but vlue dded mrketing
Mjrity believed in the need f cnsistent qulity f beef
Mny wh were dubtful but the bbm, tend t fcus mre n cst
reductin
Q7. ssuming tht supprt exists fr the recmmended
segmenttin pprch, hw cn it be implemented in terms f
mrketing strtegy?
Methd 1: Segmenttin n the bsis f experience
Mrketing strtegy:- Mre fcus n the new nd medicre segment.
Methd 2 : Segmenttin n the bsis f vet visits
Mrketing strtegy:- T infrm nd educte the vets but the vrius
prducts
Methd 3: Segmenttin n the bsis f pckers
Mrketing Strtegy:- Persusin strtegy fr the pckers.
Q8. Wuld Pfizer benefit frm reltinship mrketing fcus? Hw
wuld their mrketing strtegy need t be mdified t tke such
fcus?
Yes it wuld. lthugh the rnchers prefer t buy directly frm Pfizer but
the cmpny still mintins gd reltinship with the rnchers
Rnchers buy their niml helth prducts frm lcl Vet, Distributr r
deler. Pfizer mintins hs t mintin gd mrketing reltinships
with they re selling the prducts t the ultimte custmers.
They shuld develp their reltinship with the rnchers becuse even
thugh the rnchers re nt directly buying frm the cmpny they sk
fr their prducts when they re mking the buying decisin.
Chnges cn be mde- ffer/smple mteril t rnchers.
This wy they wuld be ble t test the prducts nd knw in which wy
they prducts re better frm the cmpetitrs.
Q9. When n industry is in decline, hw fr shuld supplier g t
ensure its custmers livelihds?
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The industry is in decline s the Rnchers wh re Pfizers primry
custmer will be ffected by such decline. In turn they wuld be spending
less n the helth prducts fr the nimls.
Hence when the industry is in decline the supplier shuld be highly
invlved in insuring its custmers livelihd becuse the supplier is ls
dependent n the custmer, nd helping custmers in this phse will
ensure brnd lylty nd lng term success f the prducts.
But it might hve sme lses fr the supplier fr shrt perid f time.
ls, Pfizer is present in ther ctegries ls like cttle, pultry , swine
nd diry industry. If the industry is in decline then it cmes in the csh
cw side f BCG mtrix.
In such scenri we must hrvest the ctegry nd invest in thers.
Present stck cn be clered by ffering the sme t lwer prices.
