American University’s KOGOD SCHOOL OF BUSINESS MKTG-300-007: Principles of Marketing INSTRUCTOR INFORMATION FACULTY NAME: Michael Carberry LINK TO FACULTY BIO: Professor Carberry E-MAIL: carberry@american.edu VIRTUAL OFFICE HOURS: By appointment CONTACT HOURS: Asynchronous and… Synchronous (Thursdays 8:20pm- 10:50pm) EMAIL RESPONSE TIME: Within 24 hours ASSIGNMENTS FEEDBACK AND GRADING: Within a week after all students in the class have completed the exam (or the assignment) TA HOURS Nadeeya Harrison (nh8449a@student.american.edu) Tuesdays 9am-noon Wednesdays 9am-11am https://american.zoom.us/j/91379184892 Vincent Russo (vr9043a@student.american.edu) Thursdays noon-2:00pm Fridays 10am-1pm Zoom Meeting Room Direct Link: https://us02web.zoom.us/j/7991145694?pwd=RzZmSG9KYzh3TVVIVkVBL0w1b3RpZz09 Meeting ID: 799 114 5694 Passcode: marketing COURSE DESCRIPTION Introduction to marketing decision making in business and nonprofit organizations. Particular attention is devoted to analysis of customer needs; segmenting markets; and developing product, promotion, pricing, and distribution strategies. Relationships between consumers, business, and government are explored. Prerequisite: ECON-200 Admission into the appropriate undergraduate program. MKTG-300-007 1 American University’s KOGOD SCHOOL OF BUSINESS COURSE LEARNING OUTCOMES After completing this course, you should be able to: • • Identify how the broader marketing function operates across firms. Identify how to manage this function in both efficient and effective ways. Written Communication and Information Literacy II Learning Outcomes In this course, you will develop the following skills and knowledge: • • • • Students will be able to identify and employ the genres of a discipline. Students will be able to interpret the information and research of a discipline in order to find, evaluate and contextualize credible and appropriate sources and information and apply appropriate quantitative or reasoning. Students will be able to take a writing project through multiple drafts and revision based on reflection and interactive feedback in order to develop ideas or arguments Students will build on their ability to write clearly, concisely, and accurately (as learned in W1), in order to demonstrate the style, attribution, and correctness of a discipline. COURSE REQUIREMENTS, STRUCTURE, AND EXPECTATIONS Expectations for performance in an online course are the same as those for a traditional course. In fact, online courses require a degree of self-motivation, self-discipline, and technology skills that can make these courses more demanding for some students. It is expected from you to use all available resources to ensure your success. STRUCTURE This course provides an online learning experience and is scheduled to run for 15 weeks. Students should review the asynchronous (online) materials in advance of class (live session) to enable informed and active participation. Class time will be devoted to reviewing homework, discussing the cases, and answering questions. STUDENT EXPECTATIONS Students are expected to: • Review the syllabus and all relevant University policies • Review and follow the course calendar • Submit all assignments by the deadline (all deadlines based on Eastern Time). SHARING OF COURSE CONTENT To supplement the classroom experience, lectures may be audio or video recorded by faculty and made available to students registered for this class. Faculty may record classroom lectures or discussions for pedagogical use, future student reference, or to meet the accommodation needs of students with a MKTG-300-007 2 American University’s KOGOD SCHOOL OF BUSINESS documented disability. These recordings are limited to personal use and may not be distributed, sold, or posted on social media outlets without written permission of the instructor. Unauthorized downloading, file sharing, or distribution of any part course materials, or using information for purposes other than student’s own learning, may be deemed a violation of American University’s Student Conduct Code and subject to disciplinary action (see Student Conduct Code VI. Prohibited Conduct). TEXTBOOKS AND MATERIALS Required Text: Kotler and Armstrong, Principles of Marketing, Prentice Pearson Hall, 17th edition. ASSIGNMENTS AND ASSESSMENTS OVERVIEW 1. Examinations (70%): There will be three multiple choice exams throughout the semester covering the material reviewed to that date (My lectures and PowerPoints, our discussions and the chapters in the textbook). Exams 2 and 3 will cover just the material reviewed since the previous exam. I’ll brief you before each exam as to the chapters to be included. Exam 1 is worth 20% and exams 2 and 3 are worth 25% each. The exams will be conducted using Blackboard online and your cameras must be on during the time you take the exam. The time allowed for each exam will likely be 45 minutes. 2. Brand Analysis Project (20%): See detailed requirements and due dates in the final section of the syllabus Situation & Assignment You’ve landed your first job as an assistant to a brand manager. Your boss, Miranda Priestly, wants to make sure your company’s brand is remaining competitive, so she assigns you this project: • • • Review all publicly available information related to your brand and the product category Prepare a detailed analysis of your brand and product category, and Make three recommendations to improve your brand’s competitive position based on the findings of your research. Your recommendations should be specific to the US market. Product Category The product category for your class is Over the Counter (non-prescription) medications. Note that there are several subcategories within this broad category (e.g., antacids, cough & cold, analgesics, etc.) and many brands within a subcategory (e.g., for antacids – Tums, Alka-Selzer, etc.) Objectives MKTG-300-007 3 American University’s KOGOD SCHOOL OF BUSINESS In this individually written report, you will demonstrate your writing, research abilities, and knowledge of concepts presented in this course. The assignment also gives you the chance to practice using charts and exhibits. As a bonus, the completed report can serve as your writing sample for internships and jobs. Important First Steps Each student should pick a brand within the assigned product category (OTC medications). Do not share your report with other students. This is to be solely your work…not taken from a web source or from any source other than your own very talented brain. Report Structure and Deliverables The report has three deliverables. You must submit an electronic copy of the deliverable by 5 pm on the due date (or, hopefully, earlier). Deliverable 1 (Part 1): Market Analysis of Product Category—1000 words (Due 8 October) This part should focus on two areas: (a). Industry Analysis: What is the market situation for the category? Provide a short review of the market situation facing the brands in your competitive “space.” You should examine industry sales at the monetary level for the most recent 3-5 years, forecasts if available, trends within subsectors of your industry and market shares of main players. (b). Environmental Scan: This section should address topics such as: key consumer trends, crucial political issues, technological changes, legal/regulatory challenges, and/or shifts in the nature of the competitive landscape within your industry. Choose issues that generally affect the performance of all players (i.e., some brands are affected more and some less, but the issues affect the group as a whole). Deliverable 2 (Part 2): Segmentation, Targeting and Positioning — 500 words (Due 29 October) This part 2 should focus on two areas: (a). Segmentation and Targeting: What groups of consumers (based on factors such as such as demographics, psychographics, product benefits sought, etc.) are the most likely to buy your brand? Where are your deficiencies and where are opportunities? You are required to use the Simmons data for this portion of your paper. This is a natural place in your paper for multiple charts, figures, or graphs. (Please do not use charts directly exported from Simmons as these are often contain far more numbers then you actually need, and thus are not very user friendly. I want to see that you can identify and correctly understand the important values. You’re required to take these numbers and create some of your own figures) (b). Positioning: Discuss the strategies used to position your brand. (Deliverable 3 ) Due No later than 3 December Complete paper -- Parts 3/4/5 along with revised versions of your previous parts 1 and 2 to form a final paper) MKTG-300-007 4 American University’s KOGOD SCHOOL OF BUSINESS Part 3: Brand Analysis –1000 words (SWOT does not count towards this word count This part should focus on two areas: (a). Product, Price, Place, Promotion: Discuss the key product issues. What types of pricing strategies are used for your brand? Discuss key distribution issues. What types of distribution channels are used and why? Compare point of sale merchandising and promotions. Which specific elements and tactics of the communications mix, such as advertising, public relations, sales promotion, and direct marketing are important for your brand? (b). SWOT Analysis: At the end of this section you should provide a SWOT for your brand. While SWOT’s may be identified online, you should construct your own SWOT, and the items identified in your SWOT should correlate with topics you have previously discussed in this and the prior section. I should not see items in SWOT that were not previously discussed. Part 4: Brand Recommendations for Your Brand — 750 words Present three well-founded ideas for improving the distinctive competitive position for your brand based on the issues you’ve identified in parts 1, 2 and 3. (Hint: Do not just form recommendations that will improve sales in general. Develop recommendations that will help your brand to set itself apart from the competition.) Discuss the pros and cons of each recommendation. Justify actions with supporting analyses & logic. Part 5: Executive Summary—200 words Briefly summarize your report and your three recommendations. This will be the last part you write, but this should be the first page of your final report. Due Dates Assignment must be submitted in Blackboard by 5 pm on the due date. Penalty for late submission is 10% per day. Additional Key Instructions • • • • • • Use subheadings to organize your report and provide structure for the reader. Bold specific marketing terms that we have covered in class lectures and are taken from your text. The report must contain a minimum of five figures (charts, exhibits, graphs, tables, or useful illustrations). These are not included in the word count. They should be embedded within your surrounding text as this will make it easier to read for your boss. Make sure that you label each figure and also refer to the figure within the text. Avoid confusing, uninformative, ill-conceived, simplistic and sloppy figures! I strongly encourage you to make some of your own figures and not simply copy and paste from your references. The report must contain a minimum of ten references/citations. The report should be single-spaced with double spaces between paragraphs/sections, default margins, 12-point font. Make sure your writing is concise and to-the-point and your claims are based on objective evidence. MKTG-300-007 5 American University’s KOGOD SCHOOL OF BUSINESS • • • • • • • The tone of the report should be formal and professional, so choose your wording appropriately; points will be deducted for informal writing (e.g., avoid slang, short-hand, etc.) Remember that your writing style and presentation quality will be graded. Every instance of improper grammar, spelling, unclear writing, sloppiness or error in formatting will result in a deduction in grade. Please make sure that you cite sources within the text. No footnotes or endnotes. Include a bibliography at the end of your report with an alphabetical listing of all your citations. Each citation (minimum ten) should include the author(s) name(s), the title of the publication, the date of the publication, the source name, and a website (where appropriate). Use the APA citation style. If you include a hyperlink to your articles, make sure this can be accessed by all readers of the document. All citations must come from relevant, reputable, and credible sources. Remember that your overall goal is to demonstrate your writing skills and your understanding of the concepts and principles discussed in this course. It is the responsibility of each student to keep an electronic backup of their report for their own records. The backup may be requested by the instructor. The submitted (i.e., the “original”) will be retained by the instructor. 3. Your Personal Video (5%): Once you’ve had some time in the course and get to understand what marketing is about you will develop a two- or three-minute video explaining your understanding of the essence of marketing as succinctly and accurately as possible. You may use whatever props your wish and engage others if appropriate for your production. Please be creative. Due NLT 5 November. 4. Research Participation (5%): Students in all sections of MKTG 300 are required to obtain TWO research credits over the course of the semester by participating in TWO hours of academic research studies sponsored by the marketing department. Participating in research is a valuable way for you to receive firsthand experience with marketing research. In addition, your involvement in research will help faculty at KSB continue to develop state-of-the-art marketing thought, which is ultimately brought back into the classroom. You will be able to sign up to participate in these studies online at http://kogod.sona-systems.com where you will also be able to manage your own personal account. Before participating in any studies, you must fill out a short inventory of questions online. An announcement will be made in class and you will receive an e-mail notice once studies have been posted online. If you have any questions regarding the online system, please contact the lab manager by email at: kogod_blab@american.edu. If, however, you are unable to participate in research studies, you must complete an acceptable alternative assignment which consists of writing two 2-page summaries and critiques of two academic research articles. Each article review counts for one credit of research participation. The articles must be published in the past two years in the following journals: Journal of Consumer Research, Journal of Marketing Research, Journal of Marketing, or Marketing Science. Alternate assignments are to be emailed to kogod_blab@american.edu by 4pm on Friday, December 4th, 2020. MKTG-300-007 6 American University’s KOGOD SCHOOL OF BUSINESS Students can only participate in two research sessions. They may not participate in more studies or complete more alternative assignments to receive “extra credits.” COURSE CALENDAR Date Topic(s) Readings and Assignment(s) 8/27 Syllabus, The Marketing Concept Reading: Chapter 1 9/3 Marketing Strategy 9/10 Marketing Environment 9/17 Managing Marketing Information (Chap. 4) 9/24 Buyer Behavior Reading: Chapter 2 Video #1: Interview with Under Armour CEO Kevin Plank Reading: Chapter 3 Reading: Chapter 4 Video #2: “How do focus groups work?”By Hector Lanz Reading: Chapter 5 Video #3: “McKinsey Consumer Decision Journey” 10/1 10/8 10/15 Target Customers Product and services New Products Pricing MKTG-300-007 Assignment: Exam 1 Readings: Chapters 7 and 8 Readings: Chapter 9 Video #4: “The Secret Behind Coca-Cola Marketing Strategy” Due Dates Thursday, 10/8/20 5:00pm Assignment: Part 1- Market Analysis Readings: Chapter 10 7 American University’s KOGOD SCHOOL OF BUSINESS Date Topic(s) Readings and Assignment(s) 10/22 Distribution Channels Readings: Chapter 12 10/29 Exam 2 Readings: Chapter 13 Video #5: “Behind the scenes of an Amazon warehouse” Retailing 11/5 11/12 Integrated Marketing Communication Advertising and PR Sales Promotion Due Dates Thursday, 10/29/20 5:00pm Assignment: Part 2 - STP Readings: Chapter 14 Readings: Chapters 15 and 16 Video #6: “Top 10 Best Product Placements in Movies” 11/19 11/26 12/3 Exam 3 THANKSGIVING Wrap-up Complete Paper (Parts 1,2,3,4,5) Thursday, 12/3/20 5:00pm GRADING COMPONENTS • • • • Examinations: Brand Analysis Project: Personal Video: Research Participation: 70% of the grade 20% of total grade 5% of total grade 5% of total grade GRADING SCALE Letter Grade A A– Percentage 93–100 90–93 B+ B 87–89 84–86 MKTG-300-007 8 American University’s KOGOD SCHOOL OF BUSINESS B– 80–83 C+ C C– D+ D D– F 77–79 74–76 70–73 67–69 64–66 60–63 Below 60 BUSINESS NETIQUETTE The term "Netiquette" refers to the etiquette guidelines for electronic communications, such as e-mail and discussion forum postings. Netiquette covers not only rules to maintain civility in discussions but also special guidelines unique to the electronic nature of forum messages. Please review Virginia Shea's The Core Rules of Netiquette for general guidelines that should be followed when communicating in this course. Technical Requirements Browser Information: AU's Blackboard Support team recommends that you use Chrome or Firefox to optimize your experience and avoid incompatibility issues that can occur when accessing Blackboard with other browsers. DO NOT USE INTERNET EXPLORER. Some multimedia objects will require you to enable third-party cookies in order to play them. Blackboard Course Access: AU's online learning courses use technology created by Blackboard, the leading provider of Internet infrastructure software for online education. The minimum technical specifications needed to participate in a Blackboard course are available on Blackboard's website. Participants will use their AU account to log in at https://blackboard.american.edu. Blackboard Support: Participants should immediately report any problems to the Blackboard Support Center at blackboard@american.edu or call (202) 885-3904 for 24/7 support. Users can also access Blackboard's online support resources, including how-to guides and instructional videos. AU Help Desk (focuses on all other IT issues): Answers to your technology questions are just an e-mail, instant message, or phone call away. Contact the IT Help Desk at 202-8852550, helpdesk@american.edu, or AskAmericanUHelp to reach one of our professional staff who can answer your questions and provide general troubleshooting assistance. Students can also log on to the Need Help Now portal for support. AU Policy on Server Unavailability or Other Technical Difficulties: The university is committed to providing a reliable online course system to all users. However, in the event of any unexpected server outage or any unusual technical difficulty that prevents completion of a time-sensitive assessment activity, the instructors may extend the time windows and provide an appropriate accommodation based on the situation. MKTG-300-007 9 American University’s KOGOD SCHOOL OF BUSINESS UNIVERSITY POLICIES ACADEMIC INTEGRITY Academic integrity is paramount in higher education and essential to effective teaching and learning. As a professional school, the Kogod School of Business is committed to preparing our students and graduates to value the notion of integrity. In fact, no issue at American University is more serious or addressed with greater severity than a breach of academic integrity. Standards of academic conduct are governed by the University’s Academic Integrity Code. By enrolling in the School and registering for this course, you acknowledge your familiarity with the Code and pledge to abide by it. All suspected violations of the Code will be immediately referred to the Office of the Dean. Disciplinary action, including failure for the course, suspension, or dismissal, may result. Additional information about the Code (i.e. acceptable forms of collaboration, definitions of plagiarism, use of sources including the Internet, and the adjudication process) can be found in a number of places including the University’s Academic Regulations, Student Handbook, and website. If you have any questions about academic integrity issues or about standards of conduct in this course, please discuss them with your instructor. EMERGENCY PREPAREDNESS In the event of an emergency, American University will implement a plan for meeting the needs of all members of the university community. Should the University be required to close for a period of time, we are committed to ensuring that all aspects of our educational programs will be delivered to our students. These may include altering and extending the duration of the traditional term schedule to complete essential instruction in the traditional format and/or the use of distance instructional methods. Specific strategies will vary from class to class, depending on the format of the course and the timing of the emergency. Faculty will communicate class-specific information to students via AU email and Blackboard, while students must inform their faculty immediately of any emergency-related absence. Students are responsible for checking their AU email regularly and keeping themselves informed of emergencies. In the event of an emergency, students should refer to the AU Student Portal, the AU website, and the AU information line at (202) 885-1100 for general university-wide information, as well as contact their faculty and/or respective dean’s office for course and school/college specific information. COPYRIGHT VIOLATIONS Copyright laws must be observed. These laws govern practices such as making use of printed and electronic materials, duplicating computer software, photoduplicating copyrighted materials, and reproducing audio visual works. The Student Conduct Code prohibits theft and the unauthorized use of documents and requires adherence to local, state, and federal law. These provisions will be enforced through the Student Conduct Code. MKTG-300-007 10 American University’s KOGOD SCHOOL OF BUSINESS ACADEMIC SUPPORT SERVICES If you have trouble in this course for any reason, please don’t hesitate to consult with me. In addition to the resources of the department, a wide range of services is available to support you in your efforts to meet the course requirements. ACADEMIC SUPPORT AND ACCESS CENTER (ASAC) All students may take advantage of the Academic Support and Access Center (ASAC) for individual academic skills counseling, workshops, tutoring, peer tutor referrals, and supplemental instruction. The ASAC is located in Mary Graydon Center 243. Additional academic support resources available at AU include the Bender Library, the Department of Literature's Writing Center (located in the Library), the Math Lab in the Department of Mathematics & Statistics, and the Center for Language Exploration, Acquisition, & Research (CLEAR) in Asbury Hall. A more complete list of campus-wide resources is available in the ASAC. Contact (202) 885-3360 or ASAC@American.edu for more details. KOGOD CENTER FOR BUSINESS COMMUNICATIONS Purpose: Your fellow Kogod students will tutor and coach you either individually or in teams to improve your writing, public speaking, and team assignments. Location: online through Zoom at www.kogod.american.edu/cbc : Contact Information: email to cbc@american.edu INTERNATIONAL STUDENT DEVELOPMENT Kogod’s International Student Development office offers programs and resources that welcome and support our international students through their academic and cultural transitions. We provide support for adjusting to a new culture, using academic English, developing good working relationships with classmates and faculty, and other issues. Our staff and peer mentors are ready to help all Kogod students having issues with class participation or group work, interacting with instructors, using effective time management strategies, and other topics. Our goal is to create a rich educational and co-curricular environment where all students can be supported and successful. Please visit KSB International Student Development website or email Shari Pattillo at pattillo@american.edu for more information. STUDENT SUPPORT SERVICES DIVERSITY AND INCLUSION The Kogod School of Business considers the diversity of its students, faculty, and staff to be a strength and strives to make an inclusive environment for everyone. Dimensions of diversity include sex, race, age, national origin, ethnicity, religion, gender identity, sexual orientation, socio-economic class, political ideology, intellectual and physical ability, and primary language. Students are encouraged to speak up and share their perspectives and experiences. This class represents a diversity of backgrounds and experiences, so everyone must show respect for others. If you feel your differences may in some way MKTG-300-007 11 American University’s KOGOD SCHOOL OF BUSINESS isolate you from the Kogod community, please speak with the instructor to help you become an active and engaged member of our class and community. DISABILITY ACCOMMODATIONS If you wish to receive accommodations for a disability, please notify me with a letter from the Academic Support and Access Center (ASAC). As accommodations are not retroactive, timely notification at the beginning of the semester, if possible, is strongly recommended. To register with a disability or for questions about disability accommodations, contact the Academic Support and Access Center (ASAC) at 202-885-3360 or ASAC@american.edu. KOGOD LAPTOP POLICY Kogod implemented a Laptop Policy to insure that all students use a consistent set of quantitative application software products. Kogod expects all students enrolled in Kogod courses to comply with its Laptop Policy, which specifically addresses two key areas: 1. Use of Compliant Laptops in the classroom 2. Use of MS Office Professional in a Windows Operating System Environment for all Quantitative assignments Professors will advise students at least one week prior to class when a compliant laptop device is required for a specific class session. Students are expected to submit all quantitative assignments (Excel, Access) using the MS Windows Operating Systems version of MS Office products. Visit the Laptop Policy to determine if your laptop is compliant and how to be prepared for class. Please note that the University Computer Labs feature devices that allow students to complete assignments outside of the classroom. DEAN OF STUDENTS OFFICE The Dean of Students Office offers individual meetings to discuss issues that impact the student experience, including academic, social, and personal matters; making referrals to appropriate campus resources for resolution. Additionally, while academic regulations state that medical absences are to be excused, if faculty require documentation to verify the student’s explanation, such documentation should be submitted to the Dean of Students. The office will then receive the documentation and verify the medical excuse. Faculty have the discretion to approve absences and do not need permission from the Dean of Students to excuse absences. Students should be sent to the Dean of Students only if faculty require further proof or if they have concerns about the impact of absences on the student’s ability to succeed. Contact the Dean of Students by phone (202) 885-3300 or email dos@american.edu. INTERNATIONAL STUDENT AND SCHOLAR SERVICES International Student & Scholar Services has resources to support academic success and participation in campus life including academic counseling, support for second language learners, response to questions about visas, immigration status and employment and intercultural programs, clubs and other campus resources. (202-885-3350, Butler Pavilion 410). MKTG-300-007 12 American University’s KOGOD SCHOOL OF BUSINESS LEARNING RESOURCES LIBRARY RESOURCES Please visit University Library webpage for library resources. DISCLAIMER The instructor reserves the right to make modifications to this information throughout the semester. MKTG-300-007 13 1 Wenxia Lu Marketing 300 Marketing-300 part 2 Segmentation and Targeting As a common cold medicine, Alka Seltzer Plus enjoys a good reputation and reputation worldwide. But people need to know that no drug, no matter how effective, will work for all groups. First and foremost, for Alka Seltzer Plus, young people are its main consumer group. Identifying consumers is like identifying drug priorities, just like that “factoring the analysis this way enables the tradeoff between resources put toward the core drug characterization vs, resources that could be expanded to additional as saving cell lines with new phenotypes” (Gujral 5049). Alka Seltzer Plus is an over-the-counter drug, so people do not need a doctor’s order to go to a pharmacy and buy their own medicine. Also, it is characterized by a quick effect. After people take medicine several times, the cold will be significantly improved and cured in a few days. Alka Seltzer Plus comes in a variety of forms, from granular to effervescent. For young people, the daily work is busy, so there is little time to go to the hospital for treatment. Moreover, young people face great pressure. Long-term illness will seriously affect their lives and their families, and Alka Seltzer Plus’s quick-acting function effectively helps young people avoid this trouble. For work reasons, young people can be treated with effervescent tablets, which is convenient for them. In the second place, patients with mild symptoms are one of the main buyers. From a psychological point of view, patients who have just caught a cold do not want to go directly to the hospital for treatment. On the one hand, hospitals often give people psychological pressure, and people will tend to go to the hospital when they are seriously ill. On the other hand, the treatment in the hospital will bring 2 huge medical costs. Therefore, patients with mild cases will choose the most cost-effective treatment to buy Alka Seltzer Plus. Alka Seltzer Plus’s shortcomings are targeted at young people, so many middle-aged and older adults do not have a deep understanding of the drug brand. Therefore, it needs more publicity in the elderly community. Also, the development of several special drugs for the elderly cold is an important solution. The purchasing power of young people is a great opportunity. As the main group of society, young people have a large base and strong purchasing power. Therefore, it can make full use of young people as a consumer group. Setting up pharmacies near offices or factories selling Alka Seltzer Plus’s medicines would be an effective way. Positioning “Consumer research insights have long played an important role in managerial decision making in many areas of marketing, for example, in the development of advertising, pricing, and channel strategies” (Keller 595). Brand positioning is an essential and difficult one. Before brand positioning, it must first carry out a detailed division of the market. On the one hand, Alka Seltzer Plus needs to understand the main customer groups that buy its products so that Alka Seltzer Plus can carry out targeted drug research and development and design. Besides, customer groups’ understanding is also conducive to help them adjust and determine the price. A customer questionnaire is an effective positioning strategy. A wide range of customer questionnaires helps Alka Seltzer Plus to fully understand the customer’s age, work, purchase reasons, and other information conducive to the company’s product positioning. On the other hand, Alka Seltzer Plus needs to consider the market positioning of its competitors fully. Positioning itself for the market vacancy will help it gain a foothold in the fierce drug competition. A brand positioning that is the opposite of a competitor will create a unique new market for Alka Seltzer Plus. Customers are 3 always curious and willing to pursue something different. Unique brand positioning will give customers a unique experience. Finally, brand positioning should be carried out based on the product itself, such as product price, product efficacy, and other aspects. In terms of the product price, the products with a higher price are suitable for middle-aged and older people who have a certain amount of savings. Lower-priced drugs are available to young people with stressful families. 4 Reference Gujral, Taranjit Singh, et al. "Exploiting Polypharmacology for Drug Target Deconvolution."Proceedings of the National Academy of Sciences of the United States of America (2014): 5048–5053. Keller, Kevin Lane. "Brand Synthesis: The Multidimensionality of Brand Knowledge." Journal of Consumer Research (2003): 595–600. Wenxia Lu Marketing-300 part 1 Ibuprofen’s Industry analysis and Environmental Scan Industry Analysis Overview The United States over the Counter (OTC) pharmaceutical market comprises the medicines that can be bought without the medical descriptions. This includes the products sold on the pharmacies and products which can be bought elsewhere except the hospitals. This market is subdivided into five segments including Analgesics, Cold and cough medicines, Skin treatment products, Vitamins and minerals, and digestive and Intestinal remedies. Ibuprofen is among the products sold under the cold and cough subsector of OTC cough and cold treatment and suppressants. Sales and Monetary Levels The United States’ cold and cough OTC market segment is worth $15 billion with more than 141 players. The revenue in this segment amount to $11,275.92 million in 2020 and the market is projected to grow by 8.3% annually between 2020 and 2025 (Statista). The market size of the cold & cough OTC segment has grown by 8.4% annually between 2015-and 2020 (Statista). The per-person revenues generated in this industry is $34.07 (Statista). Among the topselling products in this segment include Gelomyrtol, Dolo-Dobendan, Aspirin Complex, ACC Akut, Neo-Angin, Bepathen Nose and Eye cream, Isla moos, ibuprofen, and Vick Vaporup. The cold & cough drugs are availed through more than 54,000 pharmacies and more than 7,500,000 retail outlets within the country. Trends The first trend in the Cough and Cold segment of the OTC industry is the retail pharmacies distribution channel. The Cough and Cold OTC medicines are conveniently available in diverse retailer outlets in the United States including the outlets that don’t have pharmacies. In the United States, OTC medicines are sold in more than 750,000 retail establishments in both the urban and rural regions to ensure that consumers have access to the treatment of the Cough and Cold related conditions (Wroble). These outlets are growing because most patients are preferring self-medication without the inconveniences and expenses associated with doctor consultation or pharmacist. This creates an opportunity for the retail pharmacist which offers Cough and Cold remedies OTC without consultation requirements. Private label and online sales is another trend that is on the rise in the cough and cold segment of the OTC industry. Private products are the products sold under the retailer’s name or brand rather than the name or brand of the manufacturer. The percentage of private label in the US OTC industry sales increased to 31% in 2020 from 26% in 2019 (Wroble). Given that the private products contain similar or the same ingredients as compared to the manufacturer brands, the consumers are more likely to purchase private label products because they convey familiarity associated with the retailer. Also, the stores will sell private labels at lower prices than the manufacturer labels which will guarantee the private-labels a growth in popularity with a budgetconscious society. Additionally, boosting private label growth is the expansion of the cold and cough remedies of OTC sales to online platforms. The online sales account of 25% of the OTC sales in the United States and the sales are expected to grow due to the multiple product options, convenience, and ability to compare price associated with online shopping (LLS Health Technical Team). The Cough and Cold segment are a fragment market meaning that the firms operating in this sector don’t experience stiff competition. The segment is served by small, medium, and large market players which can effectively leverage the technological development and product innovations to increase their competitiveness irrespective of their sizes (Wood). This means that the low barrier of entries into this segment is likely to shrink the competition and market shares of the main players. This will also add a variety of the cough and cold remedies to the market which in turn will increase the segment’s share in the industry’s market. Market share The Cough and Cold remedies market is competitive and includes several players. However, few of the major players dominate the ibuprofen market because the mid-size and smaller companies are leveraging the technological advancements and product innovations to increase their market presence and compete with the big players. This makes the ibuprofen market of Cough and Cold sector a low-level market share sector in the American OTC industry. The businesses that hold the largest market share in the ibuprofen market of Cough and Cold OTC industry include Pfizer Inc., Rechitt Benckiser group PLC, and Johnson and Johnson. Other players in the segment include Novartis, Sun Pharmaceutical industries, Sanofi-Aventis, AstraZeneca, prestige brands holdings, Allergen, and Merck and Co. a) Environmental Scan Covid-19 commonly is the major consumer trend that is affecting the performance of all players in the American Cough and Cold segment of the OTC industry. First, the Covid-19 pandemic is expected to increase the demand trends of the Cough and Cold remedy products. This is because the American authority advised people to self-isolate at homes in case they experienced mild-symptoms of the COVID-19 and avoid going to the public and the healthcare facilities where they could increase the risks of infecting others (Wood). In response to this directive, many people stocked over-the-counter cold and cough medications, painkillers, flu medications, and lozenges to be prepared in case they experience the symptoms of COVID-19 (Wood). This increased the demand for the OTC Cough and Cold products by 535% in the first quarter of 2020 (Wood). The skipping demand of the Cough and Cold remedy products due to the pandemic will boost the industry’s profitability between 2019 and 2021 unless the vaccine for the virus is released to the market. At the same time, the increased demand for the Cough and Cold remedy products will increase the industry’s revenue volatility because the companies will experience huge revenues between 2019 and the year when the vaccine of the virus is released to the market. The Rx-to-OTC switches create another opportunity for the cough and cold remedy manufacturers. In the past three decades, the FDA has converted about 700 prescriptions (RX) medicines to OTC status (US Food and Drug Administration). This means that the number of OTC products has increased over the past 30 years which in turn increases the accessibility of these substances in the retailers. This trend is likely to create new strategies of RX products being available on the OTC outlets which in turn will expand the industry. The Food and Drug Enforcement Agency (FDA)’s guidelines about the manufacturing and consumption of the Cough and Cold products is the major legal challenge that affects all major players in the Cough and Cold segment of the OTC medication industry. According to FDA Drug and Safety communication policy issued on April 20th, 2017, the use of pain, Cough, and Cold medicines in children and breastfeeding women should be restricted to the prescribed medicines only to avoid the dangers associated with overdose, underdose, and wrong consumption of drugs for different problems (US Food and Drug Administration). This is a challenge to the key players of the Cough and Cold OTC segment because children and breastfeeding women make a significant portion of their customers. As an outcome, the segment’s demand is likely to reduce which in turn will affect the overall growth of the industry. Reference LLS Health Technical Team. "How Over-the-Counter (OTC) Product Trends Are Shaping the Market." Productos Químicos Para Aplicaciones Especializadas - The Lubrizol Corporation, 13 Aug. 2020, espanol.lubrizol.com/Health/Blog/2020/04/How-Trends-inOver-The-Counter-Products-are-Shaping-the-Market. Statista. "Cold & Cough Remedies - United States | Statista Market Forecast." Statista, 2020, www.statista.com/outlook/18020000/109/cold-cough-remedies/united-states. US Food and Drug Administration. "FDA restricts use of prescription codeine pain and cough medicines and tramadol pain medicines in children; recommends against use in breastfeeding women." Food and Drug Administration (FDA) Drug safety communications (2017). Wood, Laura. Cough & Cold Medications Growing by 535%-Mild Symptoms of COVID-19 Can Be Treated With OTC Medications. GlobeNewsWire, 2020. www.globenewswire.com/news-release/2020/04/30/2024921/0/en/Cough-ColdMedications-Growing-by-535-Mild-Symptoms-of-COVID-19-Can-Be-Treated-WithOTC-Medications.html. Wroble, Andrea. US Cough, Cold, Flu And Allergy Remedies Market Report. Mintel, 2020. Accessed 20 Sept. 2020.
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