Scenario: A start-up company, Nalpak Pharmaceuticals is a United States of Ameri

Question

Scenario:

A start-up company, Nalpak Pharmaceuticals is a United States of America (U.S.A.) pharmaceutical products firm that is growing very rapidly at home and abroad. Integrity and honesty regarding product quality and concern for consumer well-being are values of the founders of the firm.

Recently Naplak Pharmaceuticals developed several new products to service customers who cannot afford the pricier life-saving anti-allergen medications and the self-injecting devices currently on the market. These products can be self-injected by the person suffering from a life-threatening allergic reaction and were just recently approved for the marketplace by the U. S. Food and Drug Administration.

In order to respond to the projected rapid growth of the firm, they are going to be hiring an additional 100 employees in the next two months to cope with the demand for these new life-saving products. Because the company is hiring so many new employees, they are concerned with maintaining the founders’ original values while ensuring a quality product.

They are also concerned with promoting and pricing these new products fairly, based on the company values and their concern for affordability for the middle-class in the U.S.A. and other consumers and client companies abroad.

1. Explain 3 possible pricing strategies and any discounts, rebates trade discounts, and/or allowances that would apply for this new line of life-saving products.

2. Explain how you will determine a profit has been realized based on your pricing objectives.

3. How the employees will handle consumer concerns and feedback in terms of transparency.

4. Explain how your promotion and pricing strategies adhere to the guidelines you have established for promotion and pricing products and services globally.

Please Answer this ASAP.

Thanks

Explanation / Answer

Q1) Below are 3 possible pricing strategies that would apply for the new line of life-saving products -

1. Cost-based pricing with relatively lower margins for the life-saving products to ensure the quality products are offered at relatively lower prices when compared to the competitors.

2. Trade discounts offered to distributors to stock and sell the products to retail oulets and to retailers to ensure the discounts pass to the customers.

3. As it is a specialized drug, it is recommended to employ Indication-specific pricing where the pricing depends on its performance on specific indications of life saving.

Q2) Realization of profit can be determined by -

1. Increase in the volume of sales of the products

2. Costs involved in the entire drug research, development, production and sales vs the sales revenue generated.

3. Focus of the drug in terms of what indications it addresses and the number of consumers purchasing the drug to cure the specific indications.

Q3) Customer concerns and feedback can be collected through surveys based on which the employees can work on any developments that might be required in terms of product and any pricing related issues that need to be revisited.

Q4) The promotion and pricing strategies adhere to the global guidelines by -

1. Having common strategic, ethical and pricing objectives globally

2. Pricing strategies need to be tweaked based on the location by analyzing the customer affordability vis-a-vis thye product costs.

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