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Case study Analysis on Propesia

Following questions needs to be answered:



Q1. When and what type oI ads should Tom Casola run aIter launch? Under what circumstance would you use each
type oI ads? Is there a point where you would consider a switch in Propecia`s ad strategy?
Q2. DeIine Propecia`s potential customer base. What is Propecia`s competing against in the consumer`s mind? What
can be learned Irom Rogaine`s experience in the market place?
Q3. What message should Propecia`s convey to potential customers? How does this message aIIect acquisition oI
patients/ how does this aIIect the retention oI patients?
Q4. What role does physician play in this context? Is the role diIIerent that Ior a condition such as high cholesterol,
high blood pressure or Diabetes? How much detailing eIIort is necessary? JustiIy your answer anticipating
management concern?


Q1. When and what type of ads should Tom Casola run after launch? Under what circumstance would you
use each type of ads? Is there a point where you would consider a switch in Propecia`s ad strategy?
The option oI advertising the product directly to the customers is the most suitable manner Ior Propecia. The
company has aimed at reaching the customers through over the counter sales.
Since Hair loss is not a matter oI utmost urgency to the physicians, it may not be as eIIective in supplying the
product as a prescription drug. So by promoting product claim ads, Propecia can build awareness oI its brand in a
market where its competitor Rogaine has achieved almost 95 brand awareness. However the ads should also
disclose the side eIIects oI the drug. However the side eIIects have pertained only to about 2 oI the sample group
and more over the side eIIects subsided when the men continued using the drug and completely disappeared when
the consumption oI the drug was stopped. ThereIore by going through the direct promotion oI Propecia through ads,
disclosing the side eIIects oI using the drug would not have a great impact.
The potential market Ior Propecia is at least halI the male population. MPHL occurred in 30-40 mn American men,
in Iact it was experienced by 50 oI Caucasian men under the age oI 50 and the liIe time incidence was believed to
approach 100 although there were some ethnic diIIerences like when and how Irequent one will be exposed to
MPHL. For example black men have signiIicantly less hair loss, also Chinese and Japanese men have less hair loss
compared to the Caucasians.
There are two main problems Propecia competing with. First is that people are not ready to recognize hair Iall as a
major problem. Evident Irom the Iact that 1/3 oI the man surveyed directly resigned hair Iall as a problem. They
thought it is natural and inevitable. The second problem is that out oI the people who consider this as a problem
most thinks that it is problem oI Iuture so why worry about it now. The learning Irom the Rogaine`s case is that
advertisements should generate only the right level oI consumer expectations. Setting unrealistic expectations Irom
the product like a bald man regaining all the hairs may hamper the actual product claims and weigh down the brand
image.
Since Propecia is a drug aimed in the treatment oI hair loss, Merck need not concentrate its sales eIIort on primary
care physicians. Dermatologists are the main medical practitioners who would be willing to discuss about Propecia
to the patients. The Dermatologists are the ones who would be most likely to be approached by patients who would
like to Iix problems related to hair loss.
Diseases like High Blood pressure and high cholesterol are medical conditions which the physician would Ieel more
urgency in dealing with unlike hair loss. The company should be willing to hire 50-100 sales representatives and
train them to Iocus exclusively on 10,000 Dermatologists in the country.



Q2. Define Propecia`s potential customer base. What is Propecia`s competing against in the consumer`s
mind? What can be learned from Rogaine`s experience in the market place?

The potential market Ior Propecia is at least halI the male population. MPHL occurred in 30-40 mn American men,
in Iact it was experienced by 50 oI Caucasian men under the age oI 50 and the liIe time incidence was believed to
approach 100 although there were some ethnic diIIerences like when and how Irequent one will be exposed to
MPHL. For example black men have signiIicantly less hair loss, also Chinese and Japanese men have less hair loss
compared to the Caucasians.
There are two main problems Propecia competing with. First is that people are not ready to recognize hair Iall as a
major problem. Evident Irom the Iact that 1/3 oI the man surveyed directly resigned hair Iall as a problem. They
thought it is natural and inevitable. The second problem is that out oI the people who consider this as a problem
most thinks that it is problem oI Iuture so why worry about it now. The learning Irom the Rogaine`s case is that
advertisements should generate only the right level oI consumer expectations. Setting unrealistic expectations Irom
the product like a bald man regaining all the hairs may hamper the actual product claims and weigh down the brand
image.

Q3. What message should Propecia`s convey to potential customers? How does this message affect acquisition
of patients/ how does this affect the retention of patients?
Propecia should convey to the potential customers that Irom studies it has been Iound that 83 oI people who used
the product had been able to maintain at least their current hair count and that 66 oI men who took Propecia
experienced visible re growth within the Iirst year. This was way more successIul results compared to the 25
success rate compared to the competing product Rogaine. Moreover with Propecia priced at $50/month is more
economical compared to Hair replacement surgery. Apart Irom this, Propecia could convey to possible customers
that the end result oI regaining hair growth is more natural compared to mechanical solution like wigs, weaves and
toupees.

Q4. What role does physician play in this context? Is the role different that for a condition such as high
cholesterol, high blood pressure or Diabetes? How much detailing effort is necessary? 1ustify your answer
anticipating management concern?
Propecia should convey to the potential customers that Irom studies it has been Iound that 83 oI people who used
the product had been able to maintain at least their current hair count and that 66 oI men who took Propecia
experienced visible re growth within the Iirst year. This was way more successIul results compared to the 25
success rate compared to the competing product Rogaine. Moreover with Propecia priced at $50/month is more
economical compared to Hair replacement surgery. Apart Irom this, Propecia could convey to possible customers
that the end result oI regaining hair growth is more natural compared to mechanical solution like wigs, weaves and
toupees.

Since Propecia is a drug aimed in the treatment oI hair loss, Merck need not concentrate its sales eIIort on primary
care physicians. Dermatologists are the main medical practitioners who would be willing to discuss about Propecia
to the patients. The Dermatologists are the ones who would be most likely to be approached by patients who would
like to Iix problems related to hair loss.
Diseases like High Blood pressure and high cholesterol are medical conditions which the physician would Ieel more
urgency in dealing with unlike hair loss. The company should be willing to hire 50-100 sales representatives and
train them to Iocus exclusively on 10,000 Dermatologists in the country.