This is part of a group assignment.
My assignment is to ONLY make a
distribution plan. Other students are responsible for the marketing plan, SWOT analysis, etc.
I just need a 3 page distribution plan for a factitious over-the-counter drug.
I am attaching the other sections of the group assignment that were completed by my classmates for reference.
3 page distribution plan
Conclusion… In conclusion, projected growth in sleep aide industry shows great promise for financial investment gain over the next decade or longer. With parents seeking a healthier solution for their child’s medication needs, many are turning to all-natural ingredients with fewer side effects Given the increase of children diagnosed with medical conditions, including ADHD and Asperger’s, suffering from symptoms like insomnia, the demand for safe sleep aide medication option will increase as a result. Camel-sleep for Kids offers a great solution to this demand, and at an affordable price, in many different quantities options to fit each parent’s unique situation.
3 page distribution plan
Camel-Sleep for Kids: S.W.O.T. Analysis Opportunities Prescribed medications Negative press and media coverage concerning children’s medications Larger pharmaceutical companies entering the OTC market Financial limitations compared to established competitors Opportunities Market growth projections at +38% over next 6 years at $21.9 Billion Upward trend volume in diagnosed adolescent conditions with sleep problems as a symptom, including ADHD and Asperger’s Syndrome Untapped market potential Online sales including Amazon.com Weaknesses Lack of brand awareness among competitors; Zarbee’s, Luna Single form (gummies), not offered in other forms One flavor available Strengths All natural product offering Competitive pricing strategy High-quantity packaging available; 60 and 120 ct. Integrated advertisement strategy across multiple channels Fun brand image, similar to “Flintstones Vitamins”, to generate recognition
3 page distribution plan
Target Market The target market for the sleep aid product is health-conscious parents with children older than 3 who are looking for an all-natural medicine to help their child sleep better. These target shoppers are aware of the potential harmful side effects of conventional sleep aids, and are searching for a safe alternative to these types of medicines. Much like organic shoppers, this type of clientele values the use of natural ingredients and is willing to make decisions based on the drug’s lack of synthetic ingredients more so than the medicine’s overall effectiveness of helping the child sleep. Due to this decision-making characteristic, our target consumer is middle to upper class (willing to spend more for a product that does the same thing). Competition Market Analysis: The global sleep aids market was valued at $58.1 billion in 2014. According to research, the market is projected for a value of around $80.8 billion by the end of 2020. During this six-year forecast period, the global market for sleep aids will expand at a moderate CAGR of 5.7%. With growing demand for medications that help quality sleep, the market for sleep aids is witnessing steady growth. However, consumer concerns about side effects will limit the growth. GlobeNewsWire. Global Sleep Aids Market Will Reach US$80.8 Bn by 2020: Persistence Market Research. https://globenewswire.com/news-release/2015/07/31/756724/10144080/en/Global-Sleep-Aids-Market-Will-Reach-US-80-8-Bn-by-2020-Persistence-Market-Research.html The United States pharmacological treatment market for sleep aids is projected to reach $4.24 billion by 2021 from $3.38 billion in 2016, growing at a CAGR of 4.6% from 2016 to 2021. The over-the-counter (OTC) sleep aids segment of the United States insomnia pharmacological treatment market is expected to grow at the highest CAGR during the forecast period. Reasons attributing to the growth of this market include easier availability, low prices, and publicity regarding the side effects of the prescription sleep aids has also steered the patients towards OTC sleep aid. Sleep Review: The Journal for Sleep Specialists. OTC Sleep Aids Expected to Grow More Quickly Than Prescription Sleep Aids. http://www.sleepreviewmag.com/2017/02/otc-sleep-aids-expected-grow-quickly-prescription-sleep-aids/ The global herbal supplements and remedies market is forecast to reach $107 billion by the year 2017, spurred by growing aging population and increasing consumer awareness about general health and well-being, according to a report from Global Industry Analysts. Additionally, the fact that herbal supplements and remedies cause little or no side effects and provide greater efficacy is also proving to be a major factor aiding market growth. Nutraceuticals World. Global Herbal Supplement Market to Reach $107 Billion by 2017. http://www.nutraceuticalsworld.com/contents/view_breaking-news/2012-03-07/global-herbal-supplement-market-to-reach-107-billion-by-2017/ Competitors: Type of Drug Common Name Manufacturer Price per 10 doses Prescription Ambien Sanofi Aventis $42 Prescription Lunesta Sepracor $78 Prescription Prosom Upjohn $10.33 Synthetic OTC ZzzQuil Proctor & Gamble $4.17 Synthetic OTC Simply Sleep Johnson & Johnson $1.65 Organic OTC All-Natural Sleep Aid Alteri $3.16 Organic OTC Children’s Sleep Zarbee’s $2.67 Organic OTC Kids Fast Asleep Herb Pharm $4.09 Price: We will offer our product in the $3-$3.15 per 10 doses range. This positions our product in the middle of the organic OTC drugs. At this price point, there are only two other cheaper options Children’s Sleep and Simply Sleep), one of which is not organic. Also, offering the product at this price will allow us to promote fast sales once commercialized by allowing for coupons, rebates, or general price drops to encourage new users to try the product. Promotion: In addition to sales promotions to encourage sales growth, our advertising will be focused on grabbing the eyes of our health-conscious parental targets. Printed ads will be found in magazines and websites like: Parents, Healthy Living, Hip Mama, Organic Lifestyle, Naked. We will also study and imitate the marketing habits of essential oils manufacturers, as this industry has experienced rapid growth with our target shopper. Place: Our sleep aid product will be available in most big box department stores (WalMart and Target), big box pharmacies (CVS and Walgreens), and various organic websites. The placement idea is based on the shopping habits of our target consumer, which are considered normal middle/upper class adults.
3 page distribution plan
Executive Summary: The size of the global sleep aide market is around $58 billion and expected to rise approximately 40% by 2020 to around $81 billion, according to research. with U.S. sales making up an estimated $4.3 billion, or 5.2%. That said, OCT aides are expected to grow at the highest rate, not to mention rapid growth in the herbal supplements market with an estimated $107 billion in 2017. Given these medications cause little to no side effects, OTC drugs and treatments with all-natural ingredients position themselves well to capture significant market share. Camel-Sleep for Kids is an herbal sleep aide solution, ingested in the form of an oral gummy, and consists of all-natural chamomile and melatonin as active ingredients. Marketed directly to health conscious, active lifestyle parents of children with sleep problems, this fun sleep aide is a great option. Offered in convenient, multiple quantity options of 15, 60, and 120 there is a size available for every application. The marketing & distribution strategy includes targeted print ad placements integrated with online awareness building tactics. Distribution through big-box department stores and online sales channels will ensure maximized revenue potential. Competing with established brands such as Zarbee’s and LUNA necessitate an aggressive market entrance diffusion strategy, however market growth shows promise for positive ROI. A $20 million start-up budget for the first fiscal year includes product design, R&D, distribution channel negotiation, implementation of marketing strategy, and total operating expenses. This will position the product to produce a positive ROI of 115%, capture 10% market share within first full 24 months of production, and generate an estimated $43 million in revenue.