Produced exclusively by Eli Lilly

Provel is a new division of veterinarian products supported by Eli Lilly Canada Inc. which has a history of supplying another distributor, Elanco, with products in the same market.

Provel was established because of the increasingly important role veterinarians played in the use of products for animal agriculture.

Micotil - treatment for BRD.

ProblemProvel’s Situation

-Strengths-Weaknesses-Opportunities

-ThreatsOrganizational Objectives

AlternativesRecommendation

Implementation Plan

Primary Problem

Secondary Problem

Development of a budget

Which method of promotion will be used to give Provel the right image in the market place?

Reaching target veterinarians with proper information about Provel/Micotil.

MicotilSingle Dosage.

Reduces Labour.

Very effective on BRD.

Lowered Stress level of cattle.

Helps with weight gain

Micotil

High cost to consumer.

Only available in one bottle size.

All products imported from the U.S. for a cost of $41/bottle.

Cannot be used for lactating dairy cows.

New company.

Veterinarian Market in Canada (large animals)

$60 million veterinarian market for pharmaceutical products in Canada.

2.5 million calves entering feedlots each year.

35% of all calves entering the feedlot are effected by BRD.

80% of large animal veterinarians deal with feedlot cattle.

MicotilThree competitive products with 100% of the market share.

Product Market Share

Trivetrin 30%

Liquamycin 67%

Excenel 3%

Competition’s products are significantly cheaper

Generating awareness and interest from the intended market.

-Large animal veterinarians that have significant business in the veal or feedlot market.

Strive to become industry leader.

Gain 5% market share within the first year.

Goal for Provel: to have 10 products in it’s line within 5 years.

Quebec Pricing 30% margin goes to

veternarians 12% margin goes to the

distributer Supply price is $41 per bottle

from U.S.A.

Estimated Price of Micotil to consumer $170

Trivetrin-500 Ml approx. 9 applications cost $86

Micotil-100 Ml approx. 14 applications cost $150

Rest of Canada Supply price is $41 per bottle

from U.S.A.

Estimated Price of Micotil to consumer $120

Direct mailing

Cost per contact is $12

Direct Mail is widely used in this industry.

Weakness: inconvenience to veterinarians.

Advantages

Direct.

Control.

Disadvantages

Only 40% of vets will read the information.

Takes to much time to read.

Sales Representative

Gives brand a good image.

Build personal relationships.

Advantages

Ranked by veterinarians as the best selling approach.

Establishes customer relationships because of personal meetings.

Puts a face to the product.

Disadvantages

Very Costly.

Time consuming.

Telemarketing

Not Necessary until later years.

Advantages

Time effective.

Can have one call center.

Cuts out car expenses of having a Sales Representative.

Disadvantages

Success rate is half that of face to face selling.

Long distance charges.

Gives off a cheap image to the product.

40% of veterinarians feel that it gives a negative image.

Media Advertising

4 page insert in a magazine.

Cost $6,300.

Advantages

Hits the center of the target market.

Provides significant information.

Builds product image.

Disadvantages

Costly.

Can be easily passed over.

Sales Representative Within the first year

Direct Mail Sent to 622 clinics in Canada

Magazine Advertising With package promotion

Direct mailing to veterinarians.

$12 per contact x 622 clinics country wide = $7,464.

Sales Representative will be hitting the Big 6.Ontario (147)Quebec (193)Manitoba (42)Saskatchewan (56)Alberta (100)British Columbia (51)Sales Representative costs $90,000 per year

$65,000 salary

$25,000 car, travel & general expenses

We will be advertising full page ads in the following magazines:

Alberta Beef

Ontario Milk Producer

Le Producteur Lait Quebec

Le Medicin Vetinarian

Canadian Vet Supplies

Total Cost: $11,730

Total Circulation: 48,296+ people

Total Frequency: 45 times/year

Using magazine advertising, we will offer a toll free number that a person could call to receive a package with a free sample, including literature and an informative DVD.

Estimated Cost of Package: $30 $12 for initial literature and postage service charges $11.25 for single injection sample $4 per DVD

Making of the DVD estimated cost: $2,000 Planned projected packages distributed: 1,000 Total estimated cost of magazine packages: $32,000

Total cost of plan: $141,194

Year one

Magazine Advertising

One Sales Representative

Direct mail to clinics

Year two

Introduce second sales representative

Direct mail to clinics Year three

Sponsoring events

Booths at trade shows

Direct mail to clinics

Year four

Introduce telemarketing to 600 large animal vets Canada wide.

Incorporate new bottle size. 50 mL.

Direct mail to clinics

Year five

Increased telemarketing to all large animal vets Canada wide.

Direct mail to clinics.

At the end of the 5 years, we plan to have also introduced 10 products.

So, the final question that arises is, will the introduction of Provel and Micotil be worth the Moooooo-lah??

Although, in the first year it will be hard to break even, within five years it has potential to be very profitable.