Problem Statement As Pharmacia & Upjohn ready their Rogaine product to be distributed over the counter the company faces many new challenges not previously considered. Pharmacia has estimated that once in the over the counter market Rogaine would reach $250 million in sales within their first year and $1 billion over a period of five years. The numbers mentioned above where forecasted under the assumption that the FDA would approve a request for three year marketing exclusivity, this request was however denied. Pharmacia & Upjohn must now consider the possibility of loosing 60% of their volume to competition. The brand will have to reevaluate their potential first year sales and decide how they will modify their marketing plan to
Their over the counter strategy will include creating a “hair regrowth category” and distributing products through pharmacy or hair care sections of food, drug, and mass merchandise retail outlets. The company also plans to send mailings to around 40,000 physicians, 20,000 pharmacists. Consumers will be targeted with mail in rebates, television commercials and by advertisements placed in periodicals. Overall 92 percent of the target will see Rogaine through television and 77 percent of customers would be reached through print advertisements. Marketing Trends. Two major trends that will affect the marketing mix for Rogaine is lower pricing and increased promotion. A single, twin and triple pack of Rogaine will now retail for $29.50, $55.00 and $75.00 respectfully. Overall their products will be selling for half the price of the prescription version of the product. Increased competition will also be a new trend in the market. Competitors such as Bausch & Lomb, Alpharma, and Lemmon and Company will be entering the market selling similar products. Overall $75 million will initially be spent on advertising in the over the counter market. There are also plans to increase the amount of minoxidil from 2-percent to 5-percent in order to increase product effectiveness. In comparison as a prescription drug it was estimated that Rogaine spent between $40 million and $50 million on marketing annually up until