REAL, Genalyn Anne Y. BSA -2A

BAM101 – Principles of Marketing Prof. Gamad

Chen, Caroline, “Biogen Straps Fitbits onto MS Patients' Wrists”, Bloomberg Businessweek,

December 23, 2014

I. Introduction

Technology has been so much part of life that it may be considered more of a necessity

than a convenience. Because we are in the modern age of digital revolution, technology is

widely used to innovate different aspects of life—from electronics to businesses to medicines.

Because of the fast-paced development of societies, drug maker Biogen Idec (BIIB) is exploring

ways to gather data from people who suffer from multiple sclerosis by using Fitbit. Basically, the

company aims to save the payers money, to speed up the recovery and to have better

outcomes for patients.

Biogen Idec, Inc. is a global biotechnology company based in Massachusetts,

specializing in discovering, developing, and delivering therapies for the treatment of

neurodegenerative, hematologic and autoimmune diseases just like multiple sclerosis. Multiple

sclerosis is a disabling disease of the central nervous system that blocks the flow of information

within the brain, and between the brain and body. Biogen gave out 250 Fitbits that will help in

providing information regarding the level of activity and sleep patterns of a patient. Mobility is

affected by the disease, and collecting data on a daily basis could yield data about the progress

of the disease thus leading to better treatments.

Biogen used strategic planning, not only to outwit its competitors, but to greatly help its

patients. Now that it’s innovating its medicines and therapies, they have gained competitive

advantage against other companies that stood to their traditional and simple ways. Because of

this amazing change, they have successfully played their social responsibility to the community.

II. Environment

The macro-environment refers to all forces that are part of the larger society and affect

the micro-environment. It includes concepts such as demography, economy, natural forces,

technology, politics, and culture. The factors that are most relevant in Biogen’s new tactic is

demographic, economic, technological, and stimulating innovation factors. These contribute

significantly on the company’s aim to save money and make better medicines for its patients.

Demographically, the Fitbit bands are for the MS patients. Economically, these bands help in

budgeting and conserving money for cheaper and better outcomes. Technologically, Biogen

proved to medicine and technology dances well together by using Fitbit bands. And lastly, this

creative idea of using Fitbit bands for alternative medicine is an example of an innovating action

that changes the medicine game all over the world.

III. Marketing Mix Variables

A target market is a group of customers towards which a business has decided to aim its

marketing efforts. Biogen is a drug making company that is focused upon patients who have

severe diseases that can be treated either by medicine or by therapies. Ultimately, for this

particular story their target market is the MS patients. The marketing mix consists of: four P’s

namely Product, Place, Promotion, Pricing. The company has five MS drugs on the market

(Avonex, Fampyra, Plegridy, Tysabri, and Tecfidera) which, in general, are very costly and

expensive. These are distributed around the world to help MS patients anywhere and anytime.

Because Biogen wants to minimize the cost of their patients, they introduced Fitbit bands that

encourages them to do physical activities thus reducing the risk of multiple sclerosis. They have

improved their products and pricing thus the promotion for Fitbit bands as an alternative is

becoming a trend to the medicine society. Fitbit and other wearables hold great promise for the

MS population thus Biogen CEO Scangos says he’s confident his company will be able to

provide useful information to doctors using these innovative instruments.