Case Analysis Psi

1) How do you explain the disparity in Raja’s and Maya’s performance?

Similar marketing strategy was used for both Raja and Maya but sales of Raja increased tremendously while sales of Maya declined over a period. Below key issues explain the disparity in performance of both products:

* Raja was seen by consumers as an over the counter product while Maya was seen as a strong drug and so consulted doctors or RMP’s before purchasing or using it. Our Marketing strategy completely ignored this intermediate level and directly targeted consumers.

* As given in the case, 80% of the products sold are purchased by men including products for females. Raja is directly targeted to men but the marketing strategy did not target men as consumers for Maya.

* Profit margins earned by retailers and wholesalers was significantly low for Maya when compared to other similar products in market. So, they did not have an incentive to promote Maya to consumers.

* Brand image for Maya has declined due to the bad perceptions about the drug causing various side-effects. Same perception is seen by doctors and RMP’s who advised patients not to use Maya. Also, the lower price may have caused people to perceive it as low quality drug and go for other options available in the market.

2) How do you characterize the competitive environment in Bangladesh? That is, when you look at PSI vs. the other organizations in the space, how do they view each other? How does this differ from the other for-profit contexts we’ve studied? What might it mean for

the strategy?

Government’s free drugs, volunteer organization’s drugs, drugs from other pharmaceutical firms and PSI’s Raja and Maya are the available products in the Bangladesh market. Below is the view of each organization:

* Government is providing free products to consumers for birth control. Bangladesh is in very much need to reduce the number of births and so the government was trying to encourage and...