MKT 207 Product Management: LiqCure Launch Strategy in Malaysia

This report outlines the product management responsibilities for launching LiqCure, a generic COVID-19 oral liquid dosage form by Bayer AG, in Malaysia. It details the competitive landscape, focusing on needs-based, product category, and generic competition, with specific analysis of Pfizer and FluGuard. The report evaluates distribution channel effectiveness by analyzing competitor activities and marketing strategies, suggesting online marketing, e-commerce, and direct-to-consumer campaigns to adapt to decreased pharmacy patronage during the COVID-19 pandemic. Innovative distribution methods like direct-to-consumer and subscription-based models are explored for cost savings and increased profits. The report includes a sales forecast based on Malaysian market data, estimating potential revenue based on COVID-19 incidence rates and pricing, and briefly touches on the potential impact of the new product.

Name: TAN YIWAYNE
Student ID: B2200111
Subject Name: Product Management
Subject Code: MKT 207

Section 1: Product Manager’s Responsibilities
As the product manager for Bayer AG, a global pharmaceutical company specializing in generic
medicines, I am tasked with overseeing the launch of an invention, a Covid-19 oral liquid dosage
form, in Malaysia. In a highly competitive market with major players like Pfizer-BioNTech,
Moderna, and Johnson & Johnson's Jansen, Bayer AG's new product has the potential to become
a blockbuster if effectively promoted. However, launching a new product in Malaysia comes
with its own set of challenges, including navigating local regulations, language barriers, and a
shifting retail landscape due to the Covid-19 pandemic. My responsibilities as the product
manager of Bayer AG is to create a product for my company and create a marketing plan for the
product,
Bayer AG's new product is a generic medicine for Covid-19 in an oral liquid dosage form. While
it may not be considered a groundbreaking innovation, its effectiveness and safety profile are
top-tier, and it has the potential to become a blockbuster if adequately promoted. To tap into the
Asian market, which is projected to contribute 50-60% of the turnover, Bayer AG has licensed
the product to a pharmaceutical company in Malaysia with local expertise to navigate the
complexity of the region, including different countries, regulations, and languages.
The marketing plan will focus on reaching two main business buyers - independent pharmacies
(Segment A) and pharmacy chains (Segment B), which are the channels through which all Bayer
AG's pharmaceutical products are channeled to end consumers. With the current endemic
situation, there has been a decrease in patronage at retail pharmacies, and customers are
increasingly shopping for prescription and over-the-counter medicines online, with home
delivery on the rise.
To begin with, the proposed name for the new product is "LiqCure." This name aligns with the
brand and existing product positioning of Bayer AG, while also conveying the purpose of the
product, which is to provide relief from Covid-19 symptoms. A core benefits analysis of LiqCure
reveals its key advantages, including its effectiveness, convenience, and safety. LiqCure has been
positioned as a top-tier product in terms of effectiveness and security, with the potential to
become a blockbuster due to its proven efficacy in managing Covid-19 symptoms. It also offers
convenience as an oral liquid dosage form, which is easy to administer and preferred by some
patients over tablets or injections.
Section 2: Define Competition
Bayer AG's new product targeted at managing Covid-19 symptoms in the Malaysian market,
competition can be classified into three levels: needs-based competition, product category
competition, and generic competition.
Firstly, needs-based competition refers to other products or services that fulfill similar customer
needs or address the same problem as LiqCure, which is managing Covid-19 symptoms. This
may include other over-the-counter medications specifically targeted at relieving Covid-19
symptoms, such as cough syrups, antiviral medications, and decongestants. These products may
compete with LiqCure in terms of addressing the immediate symptomatic relief sought by
consumers.

Secondly, product category competition involves other products within the same product
category as LiqCure, which is Covid-19 medications or treatments. Other generic Covid-19
medications that are available in the market, such as Paxlovid by Pfizer and Lagevrio by Merck,
which are also oral liquid dosage forms, may be perceived as similar options for managing
Covid-19 symptoms. Consumers may compare these products with LiqCure based on factors
such as effectiveness, safety, and convenience.
Lastly, generic competition pertains to competitors that offer similar products with the same
active ingredients but may have different brand names. In the case of LiqCure, which contains
specific active ingredients known to be effective in managing Covid-19 symptoms, other generic
medications that contain the same active ingredients may pose competition. These generic
medications may have similar efficacy, safety profiles, and indications for use, which may
impact LiqCure's market share and consumer preference.
By analyzing predefined categories provided by commercial data services and applying
managerial judgement, Bayer AG can identify competitors that pose a significant threat and offer
potential opportunities for LiqCure in the Malaysian market.
One competitor that Bayer AG may consider targeting is "Pfizer," a company that deals with
COVID-19 medications in Malaysia. Pfizer operates in the same product category as LiqCure, as
it offers medications for managing COVID-19 sickness. By leveraging commercial data services,
Bayer AG can analyze Pfizer’s market share, distribution channels, pricing strategy, and
customer perception to determine its competitive positioning. Managerial judgement can be
applied to assess the strengths and weaknesses of Pfizer, such as its brand reputation, product
efficacy, and customer loyalty, to determine the potential opportunities for LiqCure to gain a
competitive edge.
Another competitor that Bayer AG may target is "FluGuard," a generic medication that contains
the same active ingredients as LiqCure and is marketed as an affordable alternative for managing
respiratory symptoms, including those associated with Covid-19. By utilizing commercial data
services, Bayer AG can gather information on FluGuard's market penetration, pricing strategy,
and customer feedback. Managerial judgement can be employed to evaluate FluGuard's market
positioning, including factors such as its generic brand perception, customer preference, and
potential challenges in terms of efficacy and safety concerns. Based on these assessments, Bayer
AG can determine whether FluGuard presents an opportunity for LiqCure to differentiate itself
and capture market share.
Section 3: Distribution Channels
Effective distribution channels play a crucial role in the success of a product in the market.
Evaluating the effectiveness of distribution channels requires careful consideration of various
criteria, including competitor analysis and assessment of marketing strategies. In this section, we
will discuss two criteria that can be used to evaluate the channel effectiveness of the product,
which include analyzing competitors' news, activities, and marketing efforts, as well as assessing
competitors' current objectives and marketing strategies.
One key criterion to evaluate the effectiveness of distribution channels is by analyzing
competitors' news, activities, and marketing efforts. This involves monitoring competitors'

activities such as product launches, promotional campaigns, and marketing events to gain
insights into their distribution strategies. Information can be gathered through primary data, such
as direct observation and interviews, as well as secondary data, such as market research reports
and industry publications. By closely examining competitors' news, activities, and marketing
efforts, businesses can gain valuable information about their distribution channels, advertisement
strategies, pricing, and overall market positioning.
Another criterion to evaluate distribution channel effectiveness is by assessing competitors'
current objectives and marketing strategies. Competitors' objectives and strategies can provide
insights into their approach to distribution channels and market penetration. Assessing
competitors' objectives typically involves analyzing their product-level goals, such as market
share, profitability, and return on investment. For example, competitors may have different
objectives, such as growth, consolidation, or harvest. Growth objective implies increasing market
share, while consolidation objective aims to hold onto the market, and harvest objective focuses
on maximizing profitability. By understanding competitors' objectives, businesses can gain
insights into their distribution strategies, resource allocation, and overall market positioning.
During the COVID-19 pandemic, pharmacy stores have experienced a decrease in patronage due
to various factors such as lockdowns, social distancing measures, and changes in consumer
behavior. To adapt to this situation, Bayer AG, a global pharmaceutical company, can implement
the following two ways to reach out to consumers with their existing generic lines:
Online Marketing and E-commerce: Bayer AG can leverage digital channels to market their
generic products and facilitate online sales. This can include creating a user-friendly website
with an e-commerce platform where consumers can easily browse and purchase Bayer AG's
generic products. The website can provide detailed product information, pricing, and promotions,
as well as an option for online consultations with pharmacists to address consumer queries and
concerns. Bayer AG can also explore partnerships with established e-commerce platforms or
online pharmacies to expand their reach to a wider consumer base. Social media marketing,
search engine optimization (SEO), and online advertising can also be utilized to drive traffic to
the website and generate awareness about Bayer AG's generic lines among consumers.
Direct-to-Consumer (DTC) Campaigns: Bayer AG can develop DTC campaigns to create
awareness and promote their generic products directly to consumers. This can involve targeted
advertising campaigns on digital and social media platforms, as well as traditional media
channels such as television, radio, and print. Bayer AG can highlight the benefits, availability,
and affordability of their generic products in these campaigns, along with any special offers or
promotions to attract consumers. Additionally, Bayer AG can collaborate with healthcare
professionals, patient advocacy groups, and influencers to endorse their generic products and
reach out to their target audience. DTC campaigns can also include informative content such as
educational videos, blogs, and articles on health-related websites to engage consumers and build
trust in Bayer AG's generic lines.
Innovation in channel distribution can indeed yield benefits such as cost savings and increased
profits. The two methods are:
Direct-to-Consumer (DTC) Model: This method involves selling products directly to end users
without relying on traditional distribution channels such as wholesalers or retailers. With the

advent of e-commerce and digital technologies, many businesses are adopting the DTC model to
reach consumers more efficiently and cost-effectively. Companies can set up their own online
stores or leverage third-party online marketplaces to sell their products directly to consumers.
This approach allows businesses to have more control over their product pricing, branding, and
customer data, while eliminating the need for intermediaries, thus reducing costs and increasing
profits.
Subscription-based Model: Another innovative method for product distribution is the
subscription-based model. In this approach, customers sign up for a subscription service to
receive regular deliveries of a product directly to their doorsteps. This eliminates the need for
traditional retail channels and allows companies to establish a direct relationship with their
customers. Subscription-based models provide businesses with a predictable and recurring
revenue stream, increased customer loyalty, and opportunities for cross-selling and upselling. By
leveraging technology and data analytics, companies can personalize subscription offerings
based on customer preferences and behaviors, leading to improved customer satisfaction and
increased profits.
Section 4: Sales Forecasting
The Malaysian stock market, as reflected in the KLSE (Kuala Lumpur Stock Exchange), has
shown mixed performance with a recent increase of 1.3% in the last 7 days, but a decline of
8.2% over the past year (Malaysian (KLSE) Market Analysis & Valuation - Updated Today,)
This may indicate potential market volatility that could impact the market potential of a new
product in Malaysia.
The demand for biosimilars in Malaysia is driven by cost-effectiveness and rising incidence of
chronic diseases (Biosimilars Market Revenue Trends and Growth Drivers | MarketsandMarkets,
2022).This indicates that there may be opportunities for businesses in the biopharmaceutical
industry to introduce new biosimilar products in the Malaysian market to address the increasing
demand for affordable treatment options.
According to the report, the new product is going to be the same price as Paxlovid but there isn’t
any information about the price of it in Malaysia (Paxlovid: Fantastic COVID-19 Treatment and
Where to Find It - CARiNG Pharmacy, n.d.) and it is offered free in private hospitals after
checkups in the hospital (Free Paxlovid for Covid-19 Patients Offered at Health Clinics, 2022),
therefore it is hard to find the price of Paxlovid in Malaysia, but there is the price of Paxlovid in
other countries.
Based on the reports from other countries, Paxlovid costs about $10 for a pack of 30 tablets.
Which will be around RM45 in Malaysian Ringgit assuming there is a direct conversion. It
shows that in 2023 the sales for Pfizer in Malaysia are dropping at a steep rate which they
forecast there will be RM32 billion in Paxlovid Sales. (Paxlovid Prices, Coupons, Copay &
Patient Assistance (April 14, 2023). Based on this we can calculate the estimated sales forecast
for LiqCure.
There is an average of 3000 people getting COVID-19 daily, (Malaysia COVID - Coronavirus
Statistics - Worldometer, 2023), therefore making it 3000 potential customers daily. Making the
calculation

[(3000customers*RM45) *30days]*12months= RM48,600,000 per year
Section 5: Impact of the New Product
With the introduction of new generic oral liquid dosage medicines for COVID-19 in the
Malaysian market, there are two major impacts that can be anticipated.
Increased Accessibility: The launch of new generic oral liquid dosage medicine for COVID-19
in Malaysia can potentially improve the accessibility of medication for patients. Generic
medications are generally more affordable compared to brand-name medications, as they do not
carry the additional cost of research and development, marketing, and brand recognition. This
can make the medication more affordable and accessible to a larger population, especially for
those who may have financial constraints or limited access to health insurance coverage. As a
result, more patients may be able to afford and access the medication, which can potentially lead
to increased usage and adherence to the prescribed treatment regimen. World Bank (April 6,
2023)
Enhanced Competition: The introduction of generic oral liquid dosage medicine for COVID-19
in the Malaysian market can also promote competition among pharmaceutical manufacturers.
Generic medications are typically produced by different manufacturers, which can result in
increased competition in the market. Competition can lead to lower prices as different
manufacturers strive to offer more affordable options to attract customers. This can create a
competitive environment that may drive down the overall cost of the medication, making it more
accessible to a larger population. Additionally, competition among manufacturers can also lead
to improvements in the quality and efficacy of the medication, as each manufacturer may strive
to produce a product that is competitive in terms of effectiveness and safety. (Drugs, 2022)
(2196 Words)
References
(Drugs, 2022. List of Common Analgesics + Uses, Types & Side Effects - Drugs.com)
Paxlovid Prices, Coupons, Copay & Patient Assistance (April 14, 2023) - Drugs.com.
https://www.drugs.com/price-guide/paxlovid
Overview. (April 6, 2023). World Bank.
https://www.worldbank.org/en/country/bangladesh/overview
Free Paxlovid for Covid-19 patients offered at health clinics. (2022, July 8). The Star.
https://www.thestar.com.my/news/nation/2022/07/08/free-paxlovid-for-covid-19-patients-
offered-at-health-clinics
Paxlovid: Fantastic COVID-19 Treatment and Where to Find It - CARiNG Pharmacy. (n.d.).
CARiNG Pharmacy. https://caring2u.com/health_info/paxlovid-fantastic-covid-19-treatment-
and-where-to-find-it/
Malaysian (KLSE) Market Analysis & Valuation - Updated Today. (n.d.). Simply Wall St.
https://simplywall.st/markets/my

Biosimilars Market Revenue Trends and Growth Drivers | MarketsandMarkets. (2022, December
10). MarketsandMarkets. https://www.marketsandmarkets.com/Market-Reports/biosimilars-
40.html
(List of Common Analgesics + Uses, Types & Side Effects - Drugs.com) List of Common
Analgesics + Uses, Types & Side Effects - Drugs.com. (n.d.). Drugs.com.
https://www.drugs.com/drug-class/analgesics.html
https://www.asiapacdigital.com/digital-marketing-insight/malaysia-digital-marketing-2022
Malaysia COVID - Coronavirus Statistics - Worldometer. (2023, April 11). Malaysia COVID -
Coronavirus Statistics - Worldometer.
https://www.worldometers.info/coronavirus/country/malaysia/