Bayer Schering Pharma AG Germany Owns Alka Seltzer 209784

Bayer Schering Pharma Ag Germany Owns Alka Seltzer Which Was Launche

Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu. The company has recently introduced a new and improved Alka-Seltzer Plus, as described in this TV ad. The ad shows that Alka-Seltzer Plus can fight congestion, unlike NyQuil. Explain how Alka-Seltzer Plus has been quality and price-positioned in an existing market.

In your opinion, has Bayer positioned their product appropriately in the market for cold and flu symptoms relief products? Would you advise Bayer to use a skimming or a penetration pricing strategy? Explain your reasoning. How do you think Proctor and Gamble, the company who produces Vicks NyQuil, would respond to the ad?

Paper For Above instruction

Bayer Schering Pharma AG’s repositioning of Alka-Seltzer Plus within the market for cold and flu remedies exemplifies strategic quality and price positioning aimed at carving a competitive niche. Historically recognized for its efficacy in alleviating minor ailments through its original formulation, Alka-Seltzer’s extension into cold and flu relief with Alka-Seltzer Plus broadens its market scope. To assess the positioning, one must analyze the product's perceived quality and price relative to competitors. Alka-Seltzer Plus is presented as a powerful, fast-acting remedy capable of fighting symptoms like congestion, which aligns with consumer expectations of efficacy in cold medicines. Its positioning emphasizes quick relief and multi-symptom treatment, which is consistent with premium offerings in the over-the-counter (OTC) cold remedy segment.

Pricing-wise, Bayer's Alka-Seltzer Plus is often considered slightly premium, reflecting its target market—consumers seeking immediate and effective symptom relief. The brand’s pricing strategy likely leverages a perceived higher quality, supported by its reputation, clinical efficacy, and all-in-one formulations, positioning it as a reliable choice among competitors like Vicks NyQuil. This positioning allows Bayer to command a price premium while maintaining a broad consumer base attracted to trusted, effective remedies.

Regarding Bayer's overall market position, the company appears to have strategically aligned Alka-Seltzer Plus with consumers seeking quick, effective symptom relief during cold and flu seasons. Its emphasis on fighting congestion, a common and bothersome symptom, adds value that consumers associate with advanced formulation and efficacy. Bayer’s targeted advertising highlights this benefit, thus reinforcing premium positioning. However, to sustain competitiveness, Bayer must ensure that its pricing remains within the acceptable range of consumers considering both value and effectiveness.

When contemplating strategic pricing, Bayer might consider a penetration pricing approach during product launches or market expansions to gain rapid market share and establish brand loyalty. This strategy involves setting lower initial prices to attract cost-conscious consumers, especially during peak cold seasons when demand surges. Over time, as brand recognition and consumer trust grow, Bayer could shift toward skimming pricing, gradually increasing prices to maximize margins from consumers willing to pay a premium for rapid relief and trusted efficacy. This phased approach could optimize revenue while securing market penetration initially.

Procter & Gamble’s Vicks NyQuil, as a leading competitor in the cold remedy market, would likely respond to Bayer’s advertising emphasizing congestion relief with strategic countermeasures. These might include emphasizing NyQuil’s unique ingredients, broad symptom coverage, and perhaps price discounts or promotional campaigns to reinforce brand loyalty. NyQuil’s response might also include highlighting its long-standing reputation and perhaps expanding its advertising focus to emphasize sleep-inducing properties or other benefits that differentiate it from Bayer’s Alka-Seltzer Plus. Overall, P&G’s strategic responsiveness would aim to protect its market share by reinforcing NyQuil’s perceived superiority or value proposition tailored to consumer preferences.

In conclusion, Bayer’s positioning of Alka-Seltzer Plus reflects an effort to position the product as an effective, premium cold and flu remedy by emphasizing its congestion-fighting capabilities. A combination of quality perception and carefully considered pricing strategies, possibly blended with penetration tactics for market entry or expansion, would be advisable to maximize market share and profitability. Competitors like P&G are likely to respond through advertising and promotional strategies aimed at emphasizing their own product strengths, ensuring that the competitive dynamics in the OTC cold remedy market remain intense and consumer-focused.

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