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.

Problem Provel’s Situation -Strengths -Weaknesses -Opportunities -Threats Organizational Objectives Alternatives Recommendation 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.

Micotil  Single 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.

Micotil  Three competitive products with 100% of the market share. ProductMarket Share Trivetrin30% Liquamycin67% Excenel3%  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.