New Product Introduction Essay Samples

Type of paper: Essay

Topic: Medicine, Business, Bayer, Market, Pharmacology, Products, Flu, Cold

Pages: 1

Words: 275

Published: 2020/10/29

Bayer Schering Pharma AG is a German owned pharmaceutical company which emphasizes on research to make new medicines. Alka-Seltzer is an antacid and pain reliever which was introduced in 1931. A spin-off of this product, called Alka-Seltzer Plus, was introduced later. This medicine was used to relieve colds and flu. A new and improved Alka-Seltzer Plus has been recently introduced and advertised as being able to also fight congestion, along with relieving cold and flu (Alka-Seltzer Plus, 2015).
In contrast, Procter and Gamble’s (P&G) medicine called Vicks NyQuil, a substitute medicine of Alka-Seltzer Plus, cannot fight congestion and deals only in relieving cold and flu. As of yet, P&G sold Vicks NyQuil in a zero competition zone. It had adopted premium pricing strategy and sold Vicks NyQuil at a high price and of a high quality. It had tapped a new market segment which was wide open and competitor free. But now, Bayer Schering Pharma AG’s new and improved Alka-Seltzer Plus has met the niche market’s needs by introducing Alka-Seltzer Plus that relieves cold and flu whilst fighting congestion. Due to this Bayer Schering Pharma AG can now adopt a price skimming strategy as now it lies in the competitor free zone when it comes to fighting congestion. Under price skimming strategy, Alka-Seltzer Plus will be sold of a low quality but at a higher price. Customers will buy the highly- priced medicine because of its unique quality of fighting congestion. Bayer Schering Pharma AG will now sell an existing product with new features to the existing market and to the new market, which it has taken away from P&G’s Vicks NyQuil.
Bayer Schering Pharma AG would have experienced a boost in profits after the introduction of the new and improved medicine. To further maximize its overall profitability, it will have to either control expenses or increase its products’ selling prices to increase its overall profits. It can switch to low- cost production methods for most of its products in the product line (Weil, Schipper, & Francis, 2014).
On the other hand, in response to Bayer Schering Pharma AG’s advertisement of its new and improved medicine, P&G would have to maintain its superior image of being a high quality product which is trusted by the night time cold remedy market. P&G would use comparative advertising against this challenger brand by utilizing Vicks NyQuil’s intangible factors to preserve its existing market position (Shimp & Andrews, 2013).

References

Alka-Seltzer Plus- Relief for Cold, Flu, Sinus & Allergy Symptoms. (2015). Retrieved February 4, 2015, from http://www.alkaseltzerplus.com/mucus-cough/
Shimp, T. A., & Andrews, J. C. (2013). Advertising Promotion and Other Aspects of Integrated Marketing Communications (9th ed.). Mason, USA: Cengage Learning.
Weil, R., Schipper, K., & Francis, J. (2014). Financial Accounting: An Introduction to Concepts, Methods and Uses (14th ed.). New York, NY: Cengage Learning.

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WePapers. (2020, October, 29) New Product Introduction Essay Samples. Retrieved June 14, 2024, from https://www.wepapers.com/samples/new-product-introduction-essay-samples/
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"New Product Introduction Essay Samples," Free Essay Examples - WePapers.com, 29-Oct-2020. [Online]. Available: https://www.wepapers.com/samples/new-product-introduction-essay-samples/. [Accessed: 14-Jun-2024].
New Product Introduction Essay Samples. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/new-product-introduction-essay-samples/. Published Oct 29, 2020. Accessed June 14, 2024.
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