Datril
Executive Summary
The single most rewarding opportunity faced by the company is how to position Datril to the general public in 1975 and gain substantial and sustainable market share in the analgesics market.
This situation is an opportunity because Bristol-Myers needed to figure out how to successfully price and promote Datril as it launched in the analgesics market. Two main options are available (1) whether to promote Datril as a direct point of sale towards the consumer or (2) to adopt the traditional and more conservative route as that of Tylenol and promote Datril towards the trade only. Ultimately, to establish a price point that allows Datril to compete with Tylenol given like functionality.
The company should target aspirin users through direct marketing and position Datril as an effective functional alternative given the absence of side effects that are typically present with aspirins. Marketing through extensive advertising campaigns would be required to encourage and increase market share. Bristol-Myers could also leverage other brand association on the packaging.
Situation Overview
Datril’s goal was to solidify Bristol-Myers’ position in the analgesic market and gain share in the rapidly growing acetaminophen market. Because the acetaminophen market was dominated by Tylenol, it was only natural that the strategic options that Bristol-Myers was considering involved price cutting and/or comparison marketing to Tylenol.
Action Overview
To take advantage of this opportunity the company should target current aspirin users since that market share is 90% and not target current Tylenol users since they are already converts and therefore, perceive no value in changing to Datril. The aspirin market is dominated by 3 main players and Bristol-Myers’ has two of the brands. Attracting current aspirin user will no doubt also benefit Tylenol, while at the same cannibalize Bristol-Myers own aspirin brands. A vertical brand extension using Datril as the
The single most rewarding opportunity faced by the company is how to position Datril to the general public in 1975 and gain substantial and sustainable market share in the analgesics market.
This situation is an opportunity because Bristol-Myers needed to figure out how to successfully price and promote Datril as it launched in the analgesics market. Two main options are available (1) whether to promote Datril as a direct point of sale towards the consumer or (2) to adopt the traditional and more conservative route as that of Tylenol and promote Datril towards the trade only. Ultimately, to establish a price point that allows Datril to compete with Tylenol given like functionality.
The company should target aspirin users through direct marketing and position Datril as an effective functional alternative given the absence of side effects that are typically present with aspirins. Marketing through extensive advertising campaigns would be required to encourage and increase market share. Bristol-Myers could also leverage other brand association on the packaging.
Situation Overview
Datril’s goal was to solidify Bristol-Myers’ position in the analgesic market and gain share in the rapidly growing acetaminophen market. Because the acetaminophen market was dominated by Tylenol, it was only natural that the strategic options that Bristol-Myers was considering involved price cutting and/or comparison marketing to Tylenol.
Action Overview
To take advantage of this opportunity the company should target current aspirin users since that market share is 90% and not target current Tylenol users since they are already converts and therefore, perceive no value in changing to Datril. The aspirin market is dominated by 3 main players and Bristol-Myers’ has two of the brands. Attracting current aspirin user will no doubt also benefit Tylenol, while at the same cannibalize Bristol-Myers own aspirin brands. A vertical brand extension using Datril as the