Fuih… ternyata cape juga, kemaren (selasa 28 agustus 2008) Kita kuliah Marketing Management dari Jam 8 pagi hingga jam 12. Kelas yang seharusnya berakhir jam 2 siang itu, berakhir lebih awal. Ternyata karena kita dibagi tugas untuk para Sindikat yaitu sindikat kita, The Aviator.

Tugasnya juga tidak mudah, kita disuruh menganalisis kasus Ciba Pharmaceuticals sesuai dengan format yang Bapak Evo berikan kepada kami. Kelihatannya sih mudah-mudah saja, Namun akan terlihat tidak mudah ketika kita diberi waktu deadline besok pagi jam 9 sudah dikumpulkan.

Damn… mana masih banyak kerjaan pula, 2 jadwal latihan karate dan aikido gw lewatin. Bahkan melihat event yang hanya ada dalam 100 tahun sekali gw lewatin juga. Yaitu ngelihat gerhana. Mudah-mudahan gw masih hidup 100 tahun lagi… Amien..

Untuk mengobati luka, tampilkan saja hasil analisis kelompok kami, The Aviator.

1 Background And Problem Identification

1.1 Background

Early 1983, managers at Ciba Consumer Pharmaceuticals began test marketing Acutrim, a new PPA-based appetite suppressant. By October, Acutrim was being distributed nationally through drug and food stores, became first product launch as CCP devoted to marketing and distributing OTC products.

A year after its national launch, Acutrim claimed 12 percent of the $201 million appetite suppressant market. CCP also spent $10 million in advertising.

Since late 1980s, other competitors in diet industry such as Slim-Fast and Nestle’s Sweet Success, had threatened CCP and other appetite suppressants. Acutrim’s initial role as a pioneer product for CCP was no longer viable and its revenue had decreased steadily, while advertising costs remained high. This condition continued until 1993.

Current condition showed that people prefer healthy diet (using herbal products, meal replacements, healthy lifestyle) and perceive PPA-based diet pills as unnatural, and worry about the safety of taking a pill to lose weight.

On the other side, in the shrinking but fiercely competitive category, CCP had expanded market share for several years.

1.2 Problem

· Should the company keep producing Acutrim?

· If so, what part should Acutrim play in CCP future strategy?

· Did CCP have sufficient funds to effectively market Acutrim?

· Should CCP stay in the diet industry?

2 Statement of Objective

· To keep Acutrim stay in the market

· To grow revenue from Acutrim

· To measure the condition of diet industry/market study

· To decide if CCP should stay in the diet industry

3 Situation Analysis

3.1 About CCP

Ciba Consumer Pharmaceuticals was a newly formed division of Ciba-Geigy Corporation, the wholly owned subsidiary of the international biological and chemical concern headquartered in Basel, Switzerland. In 1994, due at least in part to Acutrim’s strong performance in its early years, CCP was a full-fledged division of Ciba US and an important contributor to the corporation $670 million in worldwide sef-medication sales.

3.2 About Acutrim

Acutrim was test-marketed in early 1983. It was a new PPA-based appetite suppressant, became CCP’s first product launch as a company devoted to marketing and distributing OTC products. Acutrim is designed to help dieters slowly change their eating habits and thus lose weight sensibly, permanently.

· Product

Most of the PPA dose in Acutrim is contained in the core of the pill. This core is surrounded by a hard, semi-permeable membrane, which is then coated with another, immediate-release layer of PPA. The membrane quickly dissolved after Acutrim was taken and released an effective level of PPA in the blood within 30 to 60 minutes. Within a few years of its conception, CCP had three different types of appetite suppressants: the original “16-Hour Steady Control” introduced in 1983, “Maximum Strength” control developed in 1985, and “Late Day” for dieters who experienced temptations between 3 and 9 p.m., first marketed in 1986. All three types of Acutrim are sold in 20 and 40-pill packets.

· Price

In 1984, a pack of 20 Maximum Strength pills sold for $3.65 in retail outlets; the larger size was $6.77. In 1994, the 20-pill Acutrim package, which includes an instruction sheet with directions of safe, effective weight loss, and a suggested diet plan, was priced at $5.12. The 40-day supply sold for $8.65.

· Place

Acutrim was an OTC product, so it was sold without prescriptions through retail outlets, include food, drugs, and mass merchandiser stores.

· Promotion

Acutrim relied solely on television to reach consumers. All of Acutrim’s advertising is run in 15- and 30-second spots, airing during the day before 7 PM and after eleven PM on network, syndicated and cable television. These commercials run January through September. In the late 1980s, Acutrim was known for its humorous advertising.

· 5 C

· Customer

The target audience for Acutrim is women, age 18 to 49. The typical user is married with children, has a high school degree and perhaps some college education, and lives in middle-class household. These consumers generally want to lose between five and 20 pounds.

For Acutrim purchasers, the desire to Lose weight is often related to a specific season or event-the onset of summer, New Years resolutions, the aftermath of childbirth. Acutrim enjoys significant sales among women (and teenage girls) who have recently had a baby.

Acutrim focused on women who would rather lose than maintain their weight and women who often lose and regain weight several times. Also on dieters who prefer slower, less restrictive plans than harsh regimens.

· Competitors

- Dexatrim by Thompson Medical Company

Along with Control, Prolamine, and Appedrine, accounted for 60% of $181 millions in appetite suppressant sales. It has 53% market share. Thompson was able to increase the spending in advertising.

- Non-prescription drugs

Introduced in 1993, defined as “homeopathic”, “herbal”, or “natural”.

- New Diet Aids

Most of these were herbal or natural products, such as : Chinese Medicinal Herbs’ China Diet, Cel-Lean Wafers Dieting Herbs, Florel Essential Herbs-Slim Formula, Hot Diet Supplement, and Thermo Diet.

- Articles on High Circulation Magazines about healthy lifestyle.

· Company

Brand Name : Acutrim

Image : The longest peak level of drug delivery

Production Capability : Unknown (not mentioned in the text)

Financial Strength : Acutrim still making profit, but had greatly decreased since 1988. In 1993 there was an increase in profit although it was insignificant. The amount of advertising expenses depended on last year’s profit.

Organization : Randy Sloan, Vice President Marketing of CCP

Ed Peabody, Director of Market Research and Information.

· Collaborators :

- Suppliers : Ciba-Geigy (Main Corporation), Alza Corporation (for the OROS system)

- Distributors : Retail outlets include food, drug, and mass merchandiser stores.

· Context :

- Culture: habits of eating between meals, easy access to wide variety and quantity of high-fat foods, gaining more calories and expending less energy, Americans’ love-hate relationships with food.

- Regulations: FDA (Food and Drug Administration) decide that PPA is the only over-the-counter (OTC) appetite surpressant drug deemed effective.

- Social norms: Overweight men, women, and children often endure discrimination and social alienation.

3.3 SWOT Analysis

· Strength :

- Acutrim lasted longer than any other products in releasing PPA.

- It had three varieties, for three types of customers.

· Weakness :

- No steady user base.

- The market is fluctuative because consumers have hopes on latest diet aids.

- It contains chemical ingredient (PPA) while today consumers prefer herbal or natural products.

· Opportunities :

- Market share is expanding.

- Obesity is the most common chronic medical conditions in the United States today.

· Threat :

- New competitors

- Awareness of American people about healthy lifestyle

4 Description and Evaluation of Alternatives

· Sales Revenue

Acutrim Sales Revenue = Acutrim Market share x Acutrim Appetite Suppresant Factory Sales

Profit = Acutrim Sales Revenue – Cost (such as : advestising, production cost, distribution, etc.)

(as shown in diagram 1)

Diagram 1 Acutrim Sales Revenue (source : Company Information)

· Market Facts

- The market is shrinking with fierce competitive category (almost half from the first time Acutrim was introduced)

- The market is fluctuative, easily attracted to the latest diet aids/products.

· Market Share

Diagram 2 Pie Market Shares (source : Company Information)

· Advertising Costs

Advertising cost of current year is calculated from the previous year’s revenue.

· Target Market

1. Women who would rather lose than maintain their weight.

2. Dieters who prefer slower, less restrictive plans than harsh regimens.

3. Women who often lose and regain weight several times.

4. Focus on women, since men thought diet pills as a weakness and prefer meal replacements.

5. The market is fluctuative because consumers have high hopes on the latest diet aid.

6. No steady user base. If they lose weight, they stop using the product. If they still fat, same thing happens. Like teen medication for acne.

· Competitors

- Dexatrim, with high advertising budget.

- Non-prescriptions drugs, claiming “homeopathic”, “herbal”, and “natural”.

- Articles on high-circulation magazines on healthy lifestyle

Alternatives:

1. Acutrim should intensify its promotion through TV commercials.

2. Product innovation (ex. Designing a new look for Acutrim).

3. Differentiate promotion for each variety of Acutrim.

4. Getting recommendation from experts (emphasizing on its safety) and showing results from research studies on Acutrim.

5 Conclusions / Recommendation

· Acutrim should stay on the market.

· To increase the revenue, Acutrim should intensify its promotion by comparing its benefit with other competitors’ products through TV commercials, using market-penetration strategy (current product on current market). Each variety with its own kind of promotion. It also could be supported by experts’ opinions and research studies.

· CCP has sufficient funds to effectively market Acutrim, from the product’s own revenues.

· CCP should stay on the diet industry, because it still has enormous potential. Acutrim is still generating revenues and the only diet product produced by CCP.

· Even if there will be any development, CCP could create a new look for Acutrim.

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