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 BACKGROUND
° Frank.W.Horner was founded in 1912 by a
nephew of Andrew Wyeth.
° They distributed a wide variety of ethical and
OTC pharmaceutical products
° They had a network with 4,000 pharmacies
across Canada through a salesforce of 65
persons
° Products included
DIVOCOL,GRAVOL,ATASOL,MALYLEVOL etc
° Prior to 1973 dollar sales of ethical products
exceeded those of OTC.However,by
1977,approximately 65% of horner͛s dollar
volume was derived from OTC.
 PRODUCT: FEVERTEST
° Actually developed by Eurand, the Italian
subsidiary of NCR.
° It consisted of a thin strip which when applied
to the forehead for 15 seconds , showed an N
if the person was normal and an F if the
person has fever.
° The strip contained microencapsulated liquid
crystals which changes colour
 Preliminary Research
° Consumer group (MAY 1976)
° Physician survey ( JUNE 1976)
° First hospital trial (AUGUST 1976)
° Second hospital trial (APRIL 1977)
° Consumer survey (JUNE 1977)
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° Launched early in November 1977 to coincide
with cold and flu season.
° Sent shipments to Pharmacies.
° Point of sale displays
° Trade advertising
° Consumer advertising
° Cooperative advertising
° Giving samples to doctors
° Public Relations mailings

 


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´ Sales numbers were dipping: During the eight week period
after the campaign started, 1,150 cases were sold in
Vancouver,Montreal and Canada but by March the sales
dipped and came to pre advertising level.(1978)
´ Distribution issue
´ Whether they should change their original target of mothers
with children and broaden their scope?

SSUMPTIONS
° Minimum no. of stores targeted for
cooperative advertising are 1,000 stores

° Sample Exposed to sale display : 10,00,000

people(3100 stores)~300 visits per store
 HOICES FOR COMMUNICATIONS
STRATEGY
´ Television Advertising

´ Cooperative Advertising

´ Tie-in promotion

´ Point of sale Displays

 valuation of choices
STRENGTHS
Cover Demonstration element WEAKNESS
Showcase uniqueness of the product Cost element:$ 37,484.94 per week
Tried and tested in markets
Wider markets
Short flights of ads might prove useful
CHOICE 1: TELEVISION
ADVERTISING

OPPURTUNITY
THREAT
Newer markets can be targeted :
Might indirectly advertise competitors as
LONDON ,OTAWA,SUNBURY
well
New and improved variant of the same
Post Advertising Dip
product line existing in market
 Strengths WEAKNESSS
Promotional cost of $10,000 only Would be applicable in ~1000 stores
only

Choice 2:
Cooperative
Advertising
 Strengths
Weakness
No additional costs
Depend on the sales of Atasol
Can cash on Market reputation

Choice 3: Tie in
promotions
 Strengths Weakness
Attention getting device which Cost: $200,000+$10,000
will complement the uniqueness
of the product.
Choice 4: Point of
sale displays
 CHOICE:1: Television advertising
Advertising Budget = $ 400,000
Estimated exposure = 75 %(out of 100,000)
% of people buying = 25 %(25,000 units*18)=450000 units


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CHOICE 2: COOPERATIVE ADVERTISING
No. of stores taking in offer = 1,000
Min. no. of cases required = 10
Total = 10,000 cases
S.P of cases($32.40 each) = $32.40/unit
Cost of goods sold(12.53) = $12.53/unit
Gross margin =$19.87/unit

Adv.Allowance =$1
= $ 18.87/unit
 CHOICE 3:TIE-IN PROMOTION
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Cost for 10000 Fever tests = 12.53 * 10000=
$125300

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 45% "
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= 5000 * $19.87(GM)
= $ 99350
 CHOICE 4:POINT OF SALE DISPLAY
Budget = $2,10,000
Research shows only 26.5 % would be interested in
buying the product.
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 ecommendations
° Use of T.V advertisements and point of sale
displays for the brand.
° Tie in promotions may not translate into sales but
will act as promotional tool
° Family ads: ƒ
 
   


° Awareness camps and distribution of testers at
camps.
° Should not market their product in Supermarkets.
m