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CQ Max Crafting A Product Launch Case Solution
Inderjit Baboota is faced with a dilemma as he plans to launch his new product “CQ Max” in the Indian market. The product is essentially an alternative treatment of cancer. The product "CQ Max" has herbal and natural properties, with curcumin being the active ingredient in its formulation. As Baboota was ready to launch this new product in the market, the main issue he faced was its positioning. The question was whether to position it as a prescription based drug which would help build brand credibility. But required more effort as it meant convincing reputable oncologists to prescribe this product or to position it as an over the counter drug, which would be easier and expand its reach faster, however, may not build the brand value as much as the first option.
Following questions are answered in this case study solution
Introduction and Problem Statement
CQ MAX- A Sizeable Market Opportunity?
Pros and Cons of Innovative Products
Launch Plan & Maximizing Target Audience Reach
Conclusion and Recommended Action Plan
Case Analysis for CQ Max Crafting A Product Launch
2. SWOT Analysis
3. CQ MAX- A Sizeable Market Opportunity?
According to the case, it is seen that there is an increasing trend in the cases for cancer in India. More and more companies are investing in research and development to come up with newer formulations for the treatment of the disease. It is also seen that chemical and allopathic treatments such as chemotherapy have many adverse effects on the overall quality of life for the patient (Miller, Hoogstraten, Staquet & Winkler, 1981). Hence, there is a gap in the market for alternative or natural treatments. Natural treatments for cancer are now being proven to be less invasive and safer, with little to no side effects (Yang, Landis-Piwowar, Chen, Milacic & Dou, 2008). Keeping this in mind, Inderjit has an opportunity to exploit this market with his new product “CQ Max.” Moreover, the awareness of natural treatments is also on the rise (Verma, 2018). Moreover, on a global perspective, the market for cancer care products was estimated to be the US $24.6 billion, which is a sizable amount and a market to capture (Verma, 2018). Furthermore, it was seen that the main active ingredient of CQ Max; curcumin, had numerous health benefits, the most pertinent effect being stopping the growth of cancer, and other effects included reducing fatigue, improving immunity and uplifting the mood depressive patients (Verma, 2018).
According to Aung, Qu, Kortschak & Adelson (2017), natural methods of cancer treatments are now preferred over the traditional drug invasive methods being used previously. These natural methods successfully target specific areas with minimum and acceptable side effects.
The additional and new discovered benefits of using safe and natural methods for cancer treatments coupled with the statistics of 2.5 million people who are cancer patients in India, with 700,000 people being added to this number annually, it is safe to say that Inderjit certainly had a sizable market opportunity to launch his product “CQ Max” (Verma, 2018). Moreover, due to the innovative nature of Inderjit’s product, he would have a first mover advantage and thus, can charge higher prices initially, which would make the market opportunity profitable for him.
4. Pros and Cons of Innovative Products
Whenever a product is to be launched, it is important to weigh out the costs and benefits of the launch. Similarly, in the case for Baboota, who is offering a unique and innovative product in the market, one of the more obvious and important advantages is the fact that he has a first mover advantage (Gal-Or,1985). The curcumin formulation in CQ Max is one of its kind, and not preexisting in India, thus if successful, the project can enjoy a monopoly position in the market along with high profits, before other players enter the market (Gal-Or,1985). Moreover, this innovation can be integral for Baboota's reputation in the market, which already has established goodwill through his extensive knowledge (Hitt, Hoskisson & Kim, 1997). Moreover, this innovation can have a trickle-down effect on other future products of the company, as consumers may expect such products from the company in the future as well (Hitt, Hoskisson & Kim, 1997). Hence, this can positively build consumer confidence in other products of the company. In addition to this, innovative products can create a niche market, thus enabling the company to capture a high profit segment. Moving on, if the case is kept in mind, one of the main advantages of this innovation, that is, a natural treatment method for cancer treatments, would be tapping into a gap in the market, and also being able to meet the ever increasing demand for cancer treatment products, with increasing number of cancer patients each year (Verma, 2018).
Where there are advantages, there are disadvantages as well, and one of the major disadvantages for Inderjit is that since no existing market is present, it is difficult to predict and forecast demand and sales (Verma, 2018). Thus, this increases the risk factor for the company, and the chances of product failure can be high. Secondly, it is much costlier, as a handsome amount is first needed for trial and experimentation of the formulation, and once the formulation is perfected, a large budget would be required for the marketing and launch of the product (Johne & Snelson, 1988). Moreover, the nature of the market is sensitive; that is, the product relates to human health and serious disease, cancer. Hence patients/consumers may be sceptical about its use and success and may not prefer it over the more tried and tested traditional drugs. It is important to note, that traditional drugs are being supplied by large pharmaceutical companies who have invested heavily in research and development, thus giving them an edge over Inderjit, when it comes to market knowledge and consumer confidence. Concerning this point, there is little to no acceptability of innovative products. Hence more effort would be required by Inderjit to establish his brand's positioning in the market (Johne & Snelson, 1988). In addition to this, changing the external environment and the impact of external factors can adversely affect the production of CQ Max. This is mainly because CQ Max comprises of natural ingredients, mainly turmeric, and any change in the supply of this can fail this innovative product (Crawford, 2007).
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