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Defining Scope of Market The wide variety of body pain medication currently available for consumers is a direct result of Endo Pharmaceutical’s earlier marketing decisions which refocused efforts on promoting Aleve’s symptom-specific pain relief. However in 2001, the general analgesic market was in a period of stagnation and sales for Aleve were flat. The goal was to re-establish the Aleve brand identity, activate new target segments and restore growth. Early attempts at stimulating growth for Aleve had failed, such as wider distribution and increased advertising. Previous hypotheses had assumed that focusing on specific areas of pain relief meant smaller market share. But once the Scope of Market was defined, it was apparent that there were certain pain states for which a strong and lasting analgesic was relevant. Aleve had capabilities that outstripped those of its competitors, Tylenol and
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Clearly, convincing physicians of Aleve’s efficacy for arthritis pain and having them recommend it to patients was crucial to its success. Performing Market Segmentation Market Segmentation structures knowledge and information about customers to highlight the most important characteristics. These characteristics will help predict how customers will act and what will motivate them. In the case of Aleve, Market Segmentation illustrated that the product gained different numbers of shares depending on a segment’s pain state. For example, Aleve was used disproportionately less for headaches which required quick relief instead of Aleve’s high-strength, long-lasting benefits. However, in the case of arthritis pain relief, Aleve’s effectiveness resulted in a twenty-two percent higher market share. Consumers over 45 with arthritis who consulted with their physician became the primary target audience. It was determined that increased growth was based on reinforcing the link between Aleve and arthritis, driving doctor recommendations and increasing consumer usage. In addition, an emphasis on physician recommendations resulted in a significant shift away from in-store promotions toward a reliance on activities for reaching those doctors. Segment Selection Identifying target segments and selecting them is based on ranking. What segments in a particular market represent the richest opportunities? And of those, where does one have the greatest opportunity to convince customers to change their behavior and drive growth for the
Clearly, convincing physicians of Aleve’s efficacy for arthritis pain and having them recommend it to patients was crucial to its success. Performing Market Segmentation Market Segmentation structures knowledge and information about customers to highlight the most important characteristics. These characteristics will help predict how customers will act and what will motivate them. In the case of Aleve, Market Segmentation illustrated that the product gained different numbers of shares depending on a segment’s pain state. For example, Aleve was used disproportionately less for headaches which required quick relief instead of Aleve’s high-strength, long-lasting benefits. However, in the case of arthritis pain relief, Aleve’s effectiveness resulted in a twenty-two percent higher market share. Consumers over 45 with arthritis who consulted with their physician became the primary target audience. It was determined that increased growth was based on reinforcing the link between Aleve and arthritis, driving doctor recommendations and increasing consumer usage. In addition, an emphasis on physician recommendations resulted in a significant shift away from in-store promotions toward a reliance on activities for reaching those doctors. Segment Selection Identifying target segments and selecting them is based on ranking. What segments in a particular market represent the richest opportunities? And of those, where does one have the greatest opportunity to convince customers to change their behavior and drive growth for the