Medicine Company Case

a. The various target markets on whom Medicines might focus are doctors, pharmacists, and administrators. To formulate an effective marketing strategy that differentiates Angiomax from Heparin and to facilitate adoption at hospitals, Medicine Company must break into the market by targeting doctors and pharmacists first who will then influence the administrators and patients. The goal is to have Angiomax replace Heparin for Angioplasty Procedures in the most influential and profitable hospitals. Large hospitals are difficult to break into, however the reward will be high, because once we break into the market, Angiomax will receive immediate recognition as small and medium hospitals look up to the large hospitals. Moreover, the sheer size of large hospitals ensure volume, and consequently more margins. Targeting these hospitals also render us sufficient margin and awareness in the medical community. Large and medium hospitals will benefit from the tremendous amount of money they can save from converting to Angiomax.

b. Where Angiomax is a more effective alternative to Heparin, Medicine Company should position Angiomax as the modern, no-immune-reaction anticoagulant lowering the risk of heart attack, major bleeding, and death. Heparin is less effective because it takes 2 or 3 hours to assure successful drug administration, requires close monitoring when administering, and higher possibility of immune reaction. Heparin also has greater risk of patient death, heart attack, may need repeated angioplasty, and major bleeding. Angiomax is more effective because it only takes 30 minutes for it to take effect, no immune reaction, and requires little monitoring when administering. Additionally, Angiomax is proven to have lower risk of the following: patient death, heart attack, need for repeated angioplasty, and bleeding.

c. With the cost of the next best alternative plus the value of performance differential, we are able to calculate the Total Economic Value (TEV). Where Angiomax is considered as the potential substitute as Heparin, we take the $2/dose cost of Heparin, as the cost of the next-best alternative. Where Angiomax helps hospitals avoid costs of arising complications in an angioplasty for $8,000, including heart attack, need for a repeat angioplasty, and major bleeding; we take this cost for the value of performance differential. Angiomax also helps