Rationalizing drug patent system - striking the balance between the pioneer drug manufacturers and the public interest The WritePass Journal

Rationalizing drug patent system - striking the balance between the pioneer drug manufacturers and the public interest Abstract: Rationalizing drug patent system striking the balance between the pioneer drug manufacturers and the public interest Abstract:1. Introduction2. Patent Protection for Drugs:2.1 Rationale2.2 Effects: Are generics at stake of malady of public health?3. Measures adopted to address the drug pricing problem4. WTO –TRIPS and Traditional Methods to the Address the Problem through Compulsory Licensure and Parallel Imports4.1 Misdirected innovation4.2 Me-too drugs4.3 â€Å"Deadweight losses†5. New Reward System for Pharmaceutical Innovation: Reward Contests as a Primer for Innovation5.1   The proposed reward system and its implementation: Generics a New stand5.2   Significances of the proposed system5.2.1 Better direction of research expenditures5.2.2 Elimination of â€Å"Deadweight Loss† (DWL)5.2.3 Efficient marketing5.3 Possible global implications of the proposed system6. Discussion and conclusionBibliographyRelated Abstract: Pharmaceuticals and drug markets functioning poorly because, system of patent does not effectively stimulate drug research and development. Instead, it is inducing large amounts of research into therapeutics with relatively low incremental therapeutic index, while providing inadequate incentives to innovate in some areas of great therapeutic value life saving drugs. As a result, patents lead to high prices which exclude many users from access to potentially life-saving drugs and anti-retroviral.In this essay, I supported to proposed novel reward system for pharmaceutical innovation, in which innovators are rewarded based on the incremental therapeutic outcomes of their innovation. This may align innovators’ incentives with social objectives i.e., public interest of affordable price of drugs and lead to the best possible allocation of RD investment. When rewards given directly to innovators, patents could be compulsorily licensed to enable competitive drug pricing, thus solving problems of drug access. Government expenditures on rewards could be largely derived through reduced expenditures on patented drugs, and pharmaceutical innovators could continue to earn a good return on their RD investments. 1. Introduction The patent system was designed to foster the research, development and cater the need of the society by using it for the public welfare. The members of the WTO have to follow the minimum standards of the intellectual property protection laid by the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The WTO-TRIPS try to create a common platform for countries of different economic caliber to have a common trading platform. The idea is to provide all the essential products like drugs to be made available at an affordable price. In this assignment the first part deals with global efforts of international organizations and domestic legislations of developed nations to achieve the above purpose and the pharmaceutical lobby to curtail it. It also deals with the generic drugs and their availability .The latter part will also discuss the policy considerations, reforms and alternatives   to make the pharmaceutical patent system a more effective and strong structure by creating a striking balance between the interests of the brand drug pharmaceutical companies on one side and the public interest on the other side. 2. Patent Protection for Drugs: 2.1 Rationale General rationale for patent system comes in two forms. There is the argument of natural rights, where product (drugs) rights are seen as property rights owned to the companies that develop them. The protection is there to prevent other companies from free riding. The theoretical basis is strong, Consistent with Locke’s theory of labor and property rights, in an industry that is labor (intellectual labor) intensive, where generics can easily take the profit away from the companies that made the investment, the fruits of labor are entitled to strong property rights. The second and more pragmatic view is that such system enables pharmaceutical companies to recoup their investment in the RD of new drugs and therefore offers the right incentives for those manufactures to continue their innovation and investment. It is reasoned that such a policy will reap the maximum social benefits. The high cost of drug RD is real; United States has one of the most stringent FDA approval protocols, in order to ensure the safety and efficacy. The three clinical trials usually last between five and seven years. Less than one percent of all drugs make it to clinical trials and four percent of those make it to the market.[1] Therefore, the cost of one drug in the market also includes, and should include the RD costs for the several drugs that never made it to the market. U.S government in 1990 estimated that a new drug took ten to twelve years to come to market at a cost of $359M.[2] Such money and time commitment, it is argued, justifies the pharmaceutical companies’ need for a relatively long time of exclusive market monopoly to make some profits. 2.2 Effects: Are generics at stake of malady of public health? The generic medicine is what comes to market after the patent term expires.[3] Currently, this is the only legal way for consumers in most parts of the globe to get a medicine for a cheaper price. Because of the low price of generic medicines, they constitute only a small portion of the overall pharmaceutical revenue. In 1997, the dollar sales of branded drugs in the United States amounted to $71.8 billion, and 90% comes from brand name prescription drugs.[4]   Sooner the generic medicine comes into the market, greater the financial loss to the branded pharmaceutical companies. Therefore the RD pharmaceutical companies have employed a variety tactics to elongate their term of patent protection. At the same time, generic drugs are the saviors of some of the under developed nations in the world that are also burdened with the highest HIV infection rate. Without generic medicines coming to them sooner, the horrible situation there will get worse. 3. Measures adopted to address the drug pricing problem The issue of consumer access to generic drugs through the Drug Price Competition and Patent Term Restoration Act of 1984[5], (the Hatch-Waxman Act) was trying to do two things: it reduces the burden on generic drug companies in their effort to get FDA approval; and it compensates RD pharmaceutical companies for their time spent in the FDA approval process with more patent protection time. The Hatch-Waxman Act has not achieved its intended purpose, it has been reported that pharmaceutical companies have designed strategies to take unfair advantage of this act to maximize their profits. These strategies include applying for patents over a period of time that covers different aspects of a drug so that new patents become active as old patents expire.[6] It is extensively acknowledged that some patent legislation do serve remarkable public interest. The Orphan Drug Act[7] grants exclusivity to drugs that affect fewer than 200,000 people where pharmaceutical companies that develop them would otherwise not be able to realize a profit at all. The pediatric exclusivity clause of the Food and Drug Administration Modernization Act of 1997 also uses patent protection to promote overall social benefits.[8] Similarly, the European Parliament gave a fillip to the Bolar-type exception by its 16 April 1996 resolution which supported the measure, albeit in a much narrower sense.[9] Specifically, European Community Directive 2001/83/EC on medicinal products for human use, provides for the Bolar-type exemption provisions.[10] This exception is particular relevance to generic drug manufacturers who wish seeking regulatory approval for their products, modeled on patented pharmaceuticals that are in their twilight. 4. WTO –TRIPS and Traditional Methods to the Address the Problem through Compulsory Licensure and Parallel Imports The context of access to life saving medicines in developing countries, the WTO Trade Related Aspects of Intellectual Property Rights (TRIPS) Doha Declaration on Public Health[11] provides for special provisions ranging from parallel import, government use, to compulsory licensing, to facilitate and improve access to affordable life-saving drugs.[12] However, it has been noted that Article 31bis, the arrowhead of the new amendment to TRIPS, that is especially ratified to facilitate access to essential drugs by developing countries that have limited or no manufacturing capacity, is encumbered with administrative barriers that could hamper its effectiveness. Furthermore, the proliferation of bilateral trade agreements requiring stronger intellectual property protection than TRIPS does, are generally perceived as obstacle to the implementation of TRIPS’ flexibilities by developing countries.[13] With essence, even with exceptions to pharmaceutical patent exclusivity, the current patent system is by no means, weak, and there is an ample evidence of a causal link between the current system of stronger patent protection and higher pharmaceutical prices.[14] One major concern is proliferation of patented research tools, which can potentially up the costs of pharmaceutical RD.[15] The ambiguous and perennially shrinking scope of research or experimental use exception offers little space for unfettered use of patented research tools.[16] This arguably informed the recent report of the Commission on Intellectual Property Rights, Innovation and Health (CIPIH) of the World Health Organization, urging developing countries to, inter alia; devise appropriate national legal frameworks to facilitate access to affordable prescription drugs.[17] This essay also reiterates, inter alia, the virtues of the rewards system, and open source approaches to pharmaceutical RD, with a view to easing p atents’ stranglehold on pharmaceuticals.[18] Other major issues of Patent Monopoly System and Pharmaceuticals 4.1 Misdirected innovation Since prices in pharmaceutical markets do not necessarily satisfy value to consumers, profits are not expected to be proportional to the social value of an innovation. There are four types of problems which arise here, which are. First, the pricing of branded (pioneer) drugs may bear no particular relationship to social value. Second, â€Å"me-too† drugs may be able to yield large profits even though they offer little or no therapeutic advantage over prior existed therapies. Third, firms may find it very profitable to develop minor modifications to their own prior existing drugs, as a sort of ever greening strategy. Fourth, profits from RD and showing new uses for non-patented compounds will be small and may not support investing in clinical trials to demonstrate efficacy. 4.2 Me-too drugs Many commentators have been very critical of what appears to be an accelerating number of â€Å"me-too† drugs (also called â€Å"follow-on† drugs). Me-too drugs are products which largely duplicate the action of existing drug. For example, there are now many â€Å"statins† to help fight cholesterol, and, as some commentators have observed, it is not evident that there is much social benefit from so much variety.[19] Me-too drugs can be precious in providing therapeutic choice, and perhaps also benefits from competition; but they also may harm the returns available to the break-through drug in a class by capturing market share[20]. It is arguable that firms have devoted an excessive share of innovative research into developing me-too drugs, which have relatively little incremental therapeutic value, but which harms the returns available to the first drug in the market. 4.3 â€Å"Deadweight losses† The current implemented patent system also causes substantial welfare losses because consumers who would buy the product if it were priced at somewhere nearer production cost do not buy it at the monopoly price.[21] The welfare loss caused by this is called the â€Å"deadweight loss† (DWL) of monopoly pricing, since there is a pure loss to society when consumers do not obtain a product which they value more than the cost of manufacturing it.[22] Using highly aggregated data, claim that the scale of deadweight loss in the US drug market is on the order of $3bn- $30bn annually; the same authors estimate deadweight losses of $5bn on $8bn of sales, which indicates very large DWL for the market overall.[23]   Globally, the DWL is clear, because in many markets, drug insurance is unavailable and so consumers are more price-sensitive. The following section will briefly review the literature on the possible alternatives to the patent system, and how best to deploy them to mitigate the costs of patents. 5. New Reward System for Pharmaceutical Innovation: Reward Contests as a Primer for Innovation As seen above, the patent monopoly system doesn’t serve the pharmaceuticals market very well – it leads to misdirected innovation[24], to substantial deadweight losses[25], to counterfeit drugs[26], to price controls[27], and arguably to excessive marketing and unnecessary risks to patients. These features are not observed in other markets.[28] This suggests that there are two crucial requirements for an effective system of funding innovation in pharmaceuticals. First, the rewards for innovation in pharmaceuticals should be proportional to the social value of the innovation. Second, prices should be near average production cost, in order to minimize deadweight losses and counterfeit drugs, and to eliminate the need for price controls. The following section details a proposal for a system which meets these requirements. 5.1   The proposed reward system and its implementation: Generics a New stand Method for rewarding patented pharmaceuticals with payments or rewards paid out of a government-financed Pharmaceutical Innovation Fund (PIF). When a drug is approved for use in a country, it would be registered by a firm, normally by the owner of related patents required in the production of the drug.[29] PIF would make payments to registrants, and in exchange for such payments, registrants would be compelled to grant zero-priced licenses for all listed patents when used to make and sell the drug. The payments would be annual during the period in which the registrant’s drugs were patented. Rewards might also be paid for patented cost-reducing process innovations, and for court verdicts of invalidity or non-infringement which allowed for generic production without a compulsory license. The aim of this section is to outline how the fund should determine the reward for a given innovation. Each patented drug would given points reflecting gain in average therapeutic value less costs of treatment over that of the next best pre-existing treatment, for all units of the drug sold by the registrant and by other manufacturers in a given year. Drugs that improve health would get reward = Incremental value of QALY[30] Ãâ€" Dollar value of QALY (Quality Adjusted Life Years)[31]. This will be determined on the therapeutic value determinant of the drugs. Better the therapeutic value more the reward. This put simply means that the pleasure drug like Viagra would enjoy less reward than the life saving essential drug. Cost reducing innovations should be given the points that have been achieved by using the patented technology = Average price of the medicine set by all sellers using patented innovations – Average price not using the patented innovation Ãâ€" number of pills sold. This can be a parameter for the successful invention as the number of drugs sold will generate more revenue and this parameter can be used for determining successful invention. Registrant would get points for every sale of its drug, no matter who produced or sold the product, so that the reward is really for the innovation, clinical testing, and marketing of the product. In principal, the innovator need not produce/sell the drug, though it would have an incentive to market the drug so as to increase the volume of sales on which it could earn points. In many instances, drugs are given for a variety of different conditions, and so the therapeutic value, as well as the next best therapies, would be different for different conditions. This implies that it would be useful to obtain evidence from prescribing doctors on what conditions drugs were prescribed for, through random sampling of doctors.[32] 5.2   Significances of the proposed system The potential significance of the proposal are immense, including making drugs more widely accessible, eliminating over pricing, improving the direction of research spending, and marketing incentives more efficient. 5.2.1 Better direction of research expenditures This proposed system would make the incentives to innovate proportional in a meaningful way to social value, since the award given to the drug registrant would be appropriate with the net benefit created by the drug. This would increase the incentives to find new drugs with large incremental therapeutic value, and decrease the incentives to find new products which offered little extra benefit. (And with fewer me-too products, and less incentive to advertise them, profits of pioneer innovators would be even higher.) And it could become profitable to demonstrate the therapeutic value of old, unpatented compounds for new uses, if rewards were paid to patentees who had shown the therapeutic value of the patented use of the drug 5.2.2 Elimination of â€Å"Deadweight Loss† (DWL) Prices of drugs under this proposal would fall to approximately the average cost of production. Based on experience with medicines facing generic competition today, this implies that patented drug prices would decrease by on average 50% to 80%. This would obviously be beneficial for consumers, with total savings in the US of on the order of $100bn annually. Global, savings might be on the order of $200bn. Much of this saving would be used up in paying for rewards. Aside from the reduction in total expense to consumers, there would be a welfare gain from increased consumption of lower-priced medicines. Deadweight loss (DWL) from the current patent system is certainly immense in pharmaceutical markets. The efficiency gains from reducing drug prices to approximately the average cost of production could easily be over $100bn, and the gains in terms of saved lives would likely be very good in number. 5.2.3 Efficient marketing The proposed system of rewards would not prevent marketing by the drug registrant. Indeed, promotions which prolonged demand could be profitable, since the registrant obtains points for more sales, based on the average net benefit. However, the effect of this marketing would be wholly profitable: marketing with increased sales such that the net benefit was negative would decrease the reward obtained. So manufacturers would have an incentive to promote the drug to obtain the largest number of consumers with a positive net profit. However, the amount of promotional activity would be declined under this proposal because there would be lesser copycat drugs competing to attract a restricted number of prescriptions. 5.3 Possible global implications of the proposed system This system is ideal for enabling wide international access to life saving drugs, while eliminating ineffective parallel imports between nations having different prices. Innovator could be resident anywhere; and with prices equal to the average cost of production, even developing nations would be well served. However, if not all states adopted this model, then one could expect substantial parallel imports into the non-adopting states. The asymmetries could lead to some problems of coordination between adopting and non-adopting nations with respect to pharmaceutical trade and commerce. But the system if adopted by many nations could be designed to allow for small contributions in developing nations, basically by assigning them a small dollar value for each QALY. 6. Discussion and conclusion The proposal outlined in this essay presents an effective method of rewarding pharmaceutical innovation which yields two major benefits. First, it aligns private research incentives with social objectives i.e. as much focused issues of high drug prices by rewarding innovations based on their assessed therapeutic value. This is an improvement over the ordinary implementation of the current monopoly patent system, which cannot be efficient in bringing out pharmaceutical innovation given that pharmaceutical markets are extraordinarily dysfunctional. The proposed system can therefore be used to increase the rate of drug development cycle. Second, it allows for medicines to be priced at near the average cost of production, enabling widespread access to life saving drugs. It is possible to achieve both of these goals without increased government expenditures on drugs, since governments are already large buyers of high-priced medicines. The proposed system is not intended to be an assault o n the pharmaceutical industry: on the contrary, it continues to offer healthy benefits to pharmaceutical manufacturers which successfully bring valuable, innovative drugs to market, while removing the spectre of poorly-conceived, arbitrary price controls and satisfying the public interest. These significances suggest that this system deserves serious investigation. Bibliography STATUTES Drug Price Competition and Patent Term Restoration Act of 1984 US, (the Hatch-Waxman Act) The Orphan Drug Act of US Food and Drug Administration Modernization Act of 1997 Food Drug Cosmetic Act  §525-528 European Community Directive 2001/83/EC, Article 10 (1), (a), (i), (ii), (iii) OFFICIAL DOCUMENTS Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, at wto.org/English/thwto_e/minist_e/min01_e/mindec_trips_e.htm Oxfam, â€Å"Fatal Side Effects: Medicine Patents Under the Microscope.† In Brigitte Granville, ed., The Economics of Essential Medicines, (London: Royal Institute of International Affairs, 2002). Report of the Commission on Intellectual Property Rights, Innovation and Public Health, Public Health, Innovation and Intellectual Property Rights, (Geneva: WHO Press, 2006), at 175-188. Carlos Maria Correa, â€Å"Implications of bilateral free trade agreements on access to medicines,† Bulletin of the World Health Organization, vol. 84, No. 5 (2006). John H. Baton, â€Å"Research-tool patents: issues for health in the developing world,† Bulletin of the World Health Organization vol. 80, No. 2 (2002). The Gale Group, Intellectual Property Rules: A Delicate Balancing Act for Drug Development, 23 Chain Drug Rev. RX13 2001. BOOKS Peter Drahos and Ruth Mayne, Global Intellectual Property Rights: Knowledge, Access and Development, eds., (New York: Palgrave Macmillan, 2002) JOURNALS Angell, Marcia, â€Å"The Pharmaceutical Industry: To whom is it Accountable?† (2000), 342:1902-1904, New England Journal of Med Elyse Tanouye Robert Langreth, ‘Times Up: with Patents Expiring on Big Prescriptions, Drug Industry Quakes’, (Aug 12, 1997) The Wall Street Journal. Frederick M. Abbott and Jerome H. Reichman, â€Å"The Doha Round’s Public Health Legacy: Strategies for the Production and Diffusion of Patented Medicines under the Amended TRIPS Provisions,† (December 2007), vol. 10, No. 4, JIEL. George Foster, ‘Opposing Forces in a Revolution in International Patent Protection: the U.S. and India in the Uruguay Round and Its Aftermath’, (1998) 3 UCLA J. Int’l L For. Aff. Lara Glasgow, ‘Stretching the Limits of Intellectual Property Rights: Has the Pharmaceutical Industry Gone Too Far?’ (2001) 41 J.L.Tech. Tao Huang, â€Å"The Experimental Purpose Doctrine and Biomedical Research,† (2004), vol. 11 Michigan Telecom Tech L Review.       [1] Elyse Tanouye Robert Langreth, ‘Times Up: with Patents Expiring on Big Prescriptions, Drug Industry Quakes’, (Aug 12, 1997), The Wall Street Journal. [2] George Foster, Opposing Forces in a Revolution in International Patent Protection: the U.S. and India in the Uruguay Round and Its Aftermath, (1998), 3 UCLA J. Int’l L For. Aff. 283. [3] This is the stage when the drugs that are almost equivalent in substance and efficacy to the original drugs can be sold for a fraction of the original price. [4] The Gale Group, Intellectual Property Rules: A Delicate Balancing Act for Drug Development, 23 Chain Drug Rev. RX13 2001. [5] See Drug Price Competition and Patent Term Restoration Act of 1984, Pub. L. No. 98-417, 98 Stat. 1585. Codified as 35 USC. [6] Lara Glasgow, Stretching the Limits of Intellectual Property Rights: Has the Pharmaceutical Industry Gone Too Far?, (2001), 41 J.L.Tech, 227.( For example, Bristol-Myers secured a new patent that was closely related to its original patent on the anti-cancer drug Taxol months before its original patent expired in 1997) [7]  §360aa-360ee (Food Drug Cosmetic Act  §525-528); An   example of this system working is that Merck, Sharp Dome, Inc. is developing drugs to treat Wilson’s disease, where only about one hundred Americans can potentially benefit from such a drug. Without proper patent protection, such development would not have taken place in the first place and people who suffer from the disease would be the ones to lose. [8] There an exclusive period of six months following a patent term is offered to pioneer companies to conduct clinical investigations to determine safe and effective doses for children. [9] Paragraph 17 of the European Parliament 1996 Resolution provides as follows: â€Å"Measures should be introduced which enable pharmaceutical companies to begin, in advance of patent or supplementary protection certificate (SPC) expiry, such laboratory experiments and regulatory preparations as may be required only for the registration of generic pharmaceuticals developed in the EU, to be available on the market immediately, but only after the expiry of a patent or SPC for a proprietary product.† [10] See Article 10 (1), (a), (i), (ii), (iii), Directive 2001/83/EC on the Community code relating to medicinal products for human use, (as amended). [11] See Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, at wto.org/English/thwto_e/minist_e/min01_e/mindec_trips_e.htm (accessed on May 20, 2011). [12] See Frederick M. Abbott and Jerome H. Reichman, â€Å"The Doha Round’s Public Health Legacy: Strategies for the Production and Diffusion of Patented Medicines under the Amended TRIPS Provisions,† (December 2007), vol. 10, No. 4, Journal of International Economic Law, at 929-957. [13] See for example, Carlos Maria Correa, â€Å"Implications of bilateral free trade agreements on access to medicines,† (2006), vol. 84, No. 5, Bulletin of the World Health Organization, at 399-404. [14] See Oxfam, â€Å"Fatal Side Effects: Medicine Patents Under the Microscope.† In Brigitte Granville, ed., The Economics of Essential Medicines, (London: Royal Institute of International Affairs, 2002) at 81-99, (noting that patented drugs are more expensive than off-patent drugs); Kumariah Balasubramaniam, â€Å"Access to Medicines: Patents, Prices and Public Policy – Consumer Perspectives.† In Peter Drahos and Ruth Mayne, Global Intellectual Property Rights: Knowledge, Access and Development, eds., (New York: Palgrave Macmillan, 2002) at 90-107. [15] See John H. Baton, â€Å"Research-tool patents: issues for health in the developing world,† (2002) vol. 80, No. 2, Bulletin of the World Health Organization, at 121-125. [16] See for example, Tao Huang, â€Å"The Experimental Purpose Doctrine and Biomedical Research,† (2004), Vol. 11, Michigan Telecommunication Technology Law Review, at 97-115. [17] See Report of the Commission on Intellectual Property Rights, Innovation and Public Health, Public Health, Innovation and Intellectual Property Rights, (Geneva: WHO Press, 2006), at 175-188. [18] Id [19] Angell, Marcia, â€Å"The Pharmaceutical Industry: To whom is it Accountable?† New England Journal of Medicine, 2000, 342:1902-1904. p. 90) argues that many me-too drugs are never tested at equivalent doses to show that there are significant differences in outcomes for some patients, and claims that â€Å"the idea that patients respond differently to me-too drugs is merely an untested – and self-serving – hypothesis.† [20] DiMasi J and C Paquette, â€Å"The Economics of Follow-on Drug Research and Development Trends in Entry Rates and the Timing of Development† Pharmaco-economics 22 (Suppl. 2), 2004: 1-14. [21] Avorn, Jerry, Powerful medicines. (New York, 2004): Knopf. p. 262(discusses how deadweight losses can occur even when there is full insurance. Insurers may be unwilling to cover certain medicines, such as osteoporosis drugs, whose benefits mainly appear only after some years.); the patent system as now implemented also causes substantial welfare losses because consumers who would buy the product if it were priced at somewhere nearer production cost do not buy it at the monopoly price. The welfare loss caused by this is called by economists the â€Å"deadweight loss† (DWL) of monopoly pricing. [22] Guell R. and M. Fischbaum, â€Å"Toward allocative efficiency in the prescription drug industry.† Milbank Quarterly, 1995, 73: 213-229. [23] Douglas and Guell (2004) use US and Canadian data to argue that the DWL in the US market for a large number of drugs is at least 25% of sales. [24] It is well known that monopoly exploitation of innovations under the patent system can reduce the benefits or â€Å"surplus† available to society from an innovation. [25] Supra note 21. [26] A recent statement of the US Assistant Attorney General in a vaccine price-gouging case claimed that an â€Å"exorbitant market price †¦ may increase the incentive for counterfeiters to manufacture fake, ineffective, and potentially unsafe† drugs. (Statement of Interest of the United States, in Office of the Florida Attorney General v. ASAP Meds, Inc., Broward County Circuit Court, October 22, 2004.) [27] Supra note 20 [28] For example, in automobile markets, consumers are relatively competent to assess product quality and to make informed decisions about purchasing based on prices, quality, and their own budgets. Automobile makers therefore have incentives to develop differentiated products which respond to consumers’ demands. Deadweight losses are relatively small in automobile markets because prices are close to the average cost of production, counterfeits are relatively rare, and price controls are not used. [29] It is possible that a registrant might not own all the required patents, in which case registration would require the registrant to obtain a license to the patents from the patentee. [30] Quality-adjusted life year (QALY) is a measure of disease burden, including both the quality and the quantity of life lived. It is used in assessing the value for money of a medical intervention. The QALY is based on the number of years of life that would be added by the intervention. Each year in perfect health is assigned the value of 1.0 down to a value of 0.0 for death. If the extra years would not be lived in full health, for example if the patient would lose a limb, or be blind or have to use a wheelchair, then the extra life-years are given a value between 0 and 1 to account for this. In a worst possible health state it will be from 0 to negative value. [31] Drugs which advance health should be given points reflecting the gain in average therapeutic value less costs of treatment over that of the next best pre-existing treatment. It will determine the net benefit of a drug, and then compare it to the net benefit of the next most effective pre-existing therapy, and award points based on the improvement. These points would be awarded to the registrant for each year in which the registrant’s patents would, in the absence of compulsory licensing, be sufficient to prevent other firms from producing bio-equivalent products. [32] This would be particularly important for some drugs which have extensive off-label uses (uses for which the FDA has not approved the product). There are claims that up to half of all prescriptions are written for off-label uses. â€Å"How Drug Directory Helps Raise Tab for Medicaid and Insurers†, Wall Street Journal Oct. 23, 2003. IMS Health already conducts in the US a survey of this sort entitled the â€Å"National Disease and Therapeutic Index.†

Smoking Essay Example | Topics and Well Written Essays - 1750 words - 1

Smoking - Essay Example This paper describes three major facts associated with smoking in order to persuade smokers to get rid of their smoking habit. Amina Khan in her article, â€Å"Joe Paterno has lung cancer: What are the risks?†, published in Los Angeles Times on November 18, 2011, says the reasons for the lung cvancer caused to former Penn State football coach Joe Paterno. Joe Paterno has been diagnosed with a treatable form of lung cancer recently. She has pointed out that Paterno has never been known as a smoker. In her opinion, â€Å"The most common risk factor for lung cancer is a history of smoking -- even if a patient quit decades earlier. Its not uncommon for patients to quit and think theyre no longer at risk† (Khan). Brizer (2003) has also mentioned the association of cancer with smoking. â€Å"German researchers proved the association of cancer with smoking† (Brizer, p.21). Even though smoking can cause different types of physical diseases such as heart attacks, cancers, cough etc, Lung cancer seems to be the most dangerous disease associated with smoking. It is estimated that tobacco contains more than 4,000 chemicals which may cause different types of diseases to the smoker and the secondary smoke breathers. Ammonia, arsenic, carbon monoxide, and benzene are some of the toxic ingredients in cigarette smoke. Out of these 4000 chemicals, 43 can cause cancer disease. In fact 86% of all deaths caused by smoking is due to lung cancer (Smoking Cessation). Seventy-seven percent (482) had a smoking history while 11.3% (71) were current smokers. The length of smoking cessation to cancer diagnosis was

Business Environments of ALDO and Clarks shoe Companies Essay

Business Environments of ALDO and Clarks shoe Companies - Essay Example This paper illustrates that in 1993 ALDO entered the US market and in the next year it ventured out of North America. Israel was the first country outside North America where ALDO started its business under a franchisee agreement. It set ALDO’s international business model. By 2011 the company has opened more than 1000 stores operating in sixty-five countries across the globe. There are also 160 ALDO Accessories stores operating in nineteen countries. The Clarks was established as a result of an inspirational idea by James Clark. The company was founded by the joint effort of the brothers, Cyrus and James Clark in 1825 in Somerset village in the United Kingdom. The start was made with â€Å"their sheepskin slipper, named the ‘Brown Petersburg’† which was highly successful. In 1842 the monthly sales averaged at one thousand pairs a month. Initially, the entire production was prepared by hand and by the Clark brothers only. With the rise in demand, workers fr om outside were hired. In 1851 the Clark brothers were awarded â€Å"at the Great Exhibition† where the achievements of the British industry were showcased. In 1863 the factory system was established and thirty years later, in 1883, the first shoe was designed that fit the actual shape of the foot. This remains as the bedrock of reputation of this company. In 1990, the factory location was changed from the UK to Portugal following changes in trade patterns in the world. It was the onset of the company’s decision to move out and operate overseas. Presently Clarks has expanded in â€Å"Eastern and Western Europe, North America, India, as well as China†. The knowledge of the core customer base is essential for any retailer. The decision about the target market is taken on the basis of detailed analysis on the existing client base. Customer satisfaction level and loyalty, loopholes leading to customer dissatisfaction, current taste of the people in general, spending patterns of the people and scope for pulling them towards the particular brand, visions of creating new designs suiting customer preference; all these require in-depth knowledge of the customers or range of customers that a retailer targets for its sale. Respect for the customers’ preferences is very important.

Tupperware launch cosmetics product

Tupperware launch cosmetics product Tupperware launch cosmetics product ACKNOWLEDGEMENT I take this opportunity to present my votes of thanks to all those guidepost who really acted as lightening pillars to enlighten our way throughout this project that has led to successful and satisfactory completion of this study. Iam really grateful to our COD Mr.Devdhar shetty for providing us with an opportunity to undertake this project in this university and providing us with all the facilities. Iam also highly thankful to Mr. Manish Rajput for her active support, valuable time and advice, whole-hearted guidance, sincere cooperation and pains-taking involvement during the study and in completing the assignment of preparing the said project within the time stipulated. Lastly, Iam thankful to all those, particularly the various friends , who have been instrumental in creating proper, healthy and conductive environment and including new and fresh innovative ideas for me during the project, without their help, it would have been extremely difficult for me to prepare the project in a time bound framework. EXECUTIVE SUMMARY The main objective of this report is that tupperware has to launch a comsmetic product which is Redwood nail enamel, to understand consumer loyalty and what is happening in the market to maintain their position in the market. In this report we will find consumer preference, for the company of our team choice is Redwood nail enamel product from Tupperware. We will do the situation analysis which includes industry analysis, company analysis and competitor analysis. In industry analysis our team came to know that cosmetic market is growing at 13% per annum. This segment have share of 25.4% . Major players in this sector are Modi Revlon, LOreal and Maybelline. Revlon is in second position. Then we will do SWOT analysis. After SWOT analysis we proceed to segmentation and positioning of the product, company targeted younger age people to sell their products. After segmentation and positioning climate conditions for the product Redwood nail enamel and how it affects sales of the product. Further we will do market mix for the Redwood nail enamel, market mix analysis will help to know the market penetration of the product. After doing all this analysis we will create marketing plan for net one year for Redwood nail enamel. COMPANY ANALYSIS Tupperwareis the name of a home products line that includes preparation, storage, and serving products for the kitchen and home, which were first introduced to the public in 1946. Tupperware develops, manufactures, and internationally distributes its products by its parent company.Tupper Brand Corporationand it is marketed by means of direct sales through an independent sales force of approximately 1.9 million consultants.Tupperware is a wholly ownedsubsidiaryof Tupperware Brands Corporation. In todays common parlance, the brand name Tupperware has become aimportant trademarkfor any plastic storage container for the kitchen, not only Tupperware branded products. Similar usages are Kleenex and Band-aid in the United States and Australia, or Hoover and Biro in the UK Tupperware was developed in 1946 byEarl Silas Tupper(1907-1983) in theUSA. He developed plastic containers used in households to contain food and keep it airtight. The formerly patented burping seal is a famous aspect of Tupperware, which distinguished it from competitors. Tupperware pioneered thedirect marketingstrategy made famous by theTupperware party.Brownie Wise(1913-1992), a former sales representative of Stanley Home Products, developed the strategy. During the early 1950s, Tupperwares sales and popularity exploded, thanks in large part to Wises influence among women who sold Tupperware, and some of the famous jubilees celebrating the success of Tupperware ladies at lavish and outlandishly themed parties. Tupperware was known-at a time when women came back from working duringWorld War IIonly to be told to go back to the kitchen as a method of empowering women, and giving them a toehold in the post-war business world. The tradition of Tupperwares Jubilee style events continues to this day, with rallies being held in major cities to recognize and reward top-selling and top-recruiting individuals, teams, and organizations. In 1958, Earl Tupper fired Brownie Wise over general difference of opinion in the Tupperware business operation. It is believed that Tupper objected to the expenses incurred by the jubilee and other similar celebrations of Tupperware. Tupperware spread to Europe in 1960 when Mila Pond hosted a Tupperware party inWeybridge,England, and subsequently around the world. In 2003, Tupperware closed down operations in the UK, citing customer dissatisfaction with their direct sales model as an issue, and relaunched after a restructuring in 2005.Rexallbought Tupperware in 1958. Rexall sold its namesake drugstores in 1977, and renamed itself Dart Industries. Dart merged withKraftcoto form Dart Kraft. The company demerged, with the former Dart assets named Premark International.Tupperware Brandswas spun off from Premark in 1996; Premark was acquired byIllinois Tool Worksthree years later. Tupperware is now sold in almost 100 countries, after peaking at more than a hundred after 1996.The top eleven consumers of Tupperware are: Germany USA France Mexico Russia Australia/New Zealand Italy Austria South Africa Japan India Tupperware parties Tupperware is still sold mostly through aparty plan, with rewards for hosts. A Tupperware party is run by a Tupperware consultant for a host who invites friends and neighbors into their home to see the product line. Tupperware hosts are rewarded with free products based on the level of sales made at their party. Parties also take place in workplaces, schools, and other community groups. In most countries, Tupperwares sales force is organized in a tiered structure with consultants at the bottom, managers and star managers over them, and next various levels of directors, Legacy Executive Directors at the top level. In recent years, Tupperware has done away with distributorships in the U.S. This has allowed Tupperware more flexibility, and more generous commission and rewards for their consultants. In recent years, Tupperware in North America has moved to a new business model which includes more emphasis on direct marketing channels and eliminated its dependency on authorized distributorships. This transition included such strategies as selling throughTargetstores in the US, and Superstores in Canada, with disappointing results. Tupperware states this hurt direct sales.In countries with a strong focus on marketing through parties (such asGermanyandAustralia/New Zealand), Tupperwares market share and profitability continue to grow. In many countries, Tupperware products come with a lifetime guarantee. In India, there are some restrictions on the lifetime guarantee clause. In the UK/Ireland the guarantee is 10 years.[8]The company is best known for its plastic bowls and storage containers, however in recent years has branched out into stainless steel cookware, fine cutlery, chefs knives and other kitchen gadgets. After experiencing a slump in sales and public image in the mid-1990s, the company created several new product lines to attract a younger market. In some countries including Belgium, Australia and the US, Tupperware market their parties and career opportunities through mall kiosks from time to time. In China, Tupperware products are sold through franchised entrepreneurial shopfronts, of which there were 1900 in 2005, due to laws enacted in 1998 aimed at pyramid selling.The Chinese characters () are used as the brand name, and translate as hundred benefit. Product lines Tupperwares product ranges are often marketed under different names in different markets, and the product ranges and colors themselves differ between markets. Some of Tupperwares most popular lines include: Modular Mates(US, AU),Space Savers(UK, now discontinued),Kompakt-System(DE): These are oval and rectangular shaped containers that stack in a modular fashion to save pantry space and preserve food. Modular Mates have air-tight seals intended to keep food at optimum freshness for long periods of time. Vent N Serve(US),Rock N Serve(AU),CrystalPlus(UK): These are containers for re-heating food in microwaves, and are advertised as freezer safe, stackable and dishwasher safe. FridgeSmart(US, UK, AU),PrimaKlima(DE): With air control vents, FridgeSmart containers are modular containers intended for refrigerated fruits and vegetables. FridgeSmarts which have air control vents intended to allow different levels of airflow around different types of fruits and vegetables, as well as a corrugated bottom to allow them to store securely on a refrigerator shelf. UltraPro(AU),UltraPlus(DE): plastic casseroles advertised as being safe when used in a microwave or a conventional oven, with heat resistant properties. Eleganzia(UK, DE),Illusions(AU): A glasslike range of serving dishes FlatOut!(US),MiniMax(UK, DE),Go Flex!(AU): Bowls that flatten for storage, and can be expanded when needed Stuffables(US),Bungee(DE): refrigerator storage with flexible lids for overfilling COMPETITOR ANALYSIS Competitors of Redwood nail enamel like lakhme, Revlon and Maybelline are competing at the upper-mass (premium) end cosmetics spectrum. Ranging of competitors from many multinational companies such as Revlon Modi slugging out to chamber, Maybelline Avon with the foremost part of the international brand sector as well as LOreal. Revlon holds the 80% of market share in the Premium range. Estimated color cosmetics at Rs.340 crores currently. Lakme leads with sales of Rs 100 crores in market and Revlon sales of Rs 60 Crores of that. At first Companies like Revlon, Maybelline, Yardley, Garnier and LOreal entered in the Market and they have cashed on their international brand. Lakme and LOreal India companies are losing their position on the Rs 300 crores urban Indian color cosmetics market (lipsticks and nail enamel) to the market leader Modi Revlon. According to survey data for urban markets, LOreal company value market share in the Rs 200 crores market segment has declined gradually to 5.9% in April 05 from 13% in April 03. LOreal markets its color cosmetics under Maybelline and LOreal brands in India. Modi Revlon is the only company which recorded a gradual increase in market share from 28% to 35.15% between the period April 03 and April 05. The share of smaller local brands such as Blue Heavens, Lissome, and others were till a year ago eating into the market share of well known brands by their low costing has shrunk by 9.4%. The categorys total share has decreased to 30% in April 05 from 43% in April 03.The most affected company in the market is LOreal whose market share as fallen to 0.17% in April 05 from 1.4% in April 2003. ,05) STRENGTHS OF COMPETITORS Revlon have connected with glamour, style and elegance. Revlon have the wonderful models like Cindy Crawford and Claudia Schiffer. Revlon in India has successfully influence its international equity in promoting the brand. Revlon have 15000 counters across India. WEAKNESS Position of Revlon in India is in dissimilarity to the more mass market available point, because their products are available only at top distribution point and not available at every kirana and general merchandise store. SITUATION ANALYSIS INDUSTRY ANALYSIS Our country India, with a people of more than billion, is a country of dissimilarity. Our countrys urban or metropolitan populace is the major source for demand of several beauty products. The more cosmetic utilization by Indian women brought more competitors to Indian beauty sector. Despite market crash, India remains one of the rapidly developing cosmetic markets around the world, growing rate at 13% per year and worth at $6.3 billion. As the middle-class customer base, the market is touching closely four times sooner than the $52 billion worth of established cosmetic markets and two times as fast as the $270 billion worldwide market, according to new report by marketing research organization Kline Co. Presently, the market is bringing in cosmetics in addition to toiletries and transitional raw resources value of $120 million. The beautification market currently having $60 million of the total market, at the same time as skin care market having around $180 million.. The Indian beautification sector has witnessed fast development in the recent two years, increasing at a Compound Annual Growth Rate(CAGR) of about 7.5% between 2006 to 2008,with recovering buying ability and growing fashion realization, the market is expected to continue the growth drive (with addition of subsidiary slowdown due to financial slowdown) during our prediction era (2009-2012). It is planned to develop at a CAGR of about 7% during the estimated era, says Indian Cosmetic Sector Analysis (2009-2012), a new research details by RNCOS, In future Indian cosmetic market segments are expected to record CAGR of just about 13% and 20% correspondingly till 2012. INDIA COSMETIC SECTOR ANALYSIS According to growth rate, the market provides wide opportunities to local and global players. Even with two times growth rate, the market penetration of beautification products and toiletries products in our country is low. This low market penetration for beautification and personal care commodities in India gives an opportunity for additional important growth down the road in India of 1.2 billion populations. REDWOOD NAIL ENAMEL A TUPPERWARE PRODUCT SWOT ANALYSIS STRENGTHS Good brand portfolio Tupperware has leading sharing position, which is strong and well differentiated brand. The portfolio includes both global and local specific relevance, well designed according to the needs of different environment. Good base of the enterprise As we know that Redwood nail enamel is a brand of Tupperware and it has good financial position. High innovation style Redwood nail enamel has new innovation style in its product. Distribution channel Tupperware have integrated supply chain and manufacturing units are well spread out. They have wide reached high quality and ability to influence scale for their distribution structure. Specifically in Indian market their brand image got build because the products are for everybody and reachable to everybody. Good promotional activities Tupperware conducting fashion events and their advertisement strategy is good, so it will bring awareness. Good quality of product Tupperware Redwood nail enamel known as international brand and company offers good quality to their customers. Delightful packaging Consumer enjoys the mini bottle nail enamel as they can use frequently and consumed through few usage, so they will buy the product very often which leads to choose from vast color range. According to quality and quantity it is value for money product WEAKNESS Targeted only middle class and low class people Company targeted only middle class and lower class people to sell their products and segmented only in metro politic cities and towns. OPPORTUNITIES Modern trade More upscale beauty care products are emerging in modern trade effectively, consumer want quality, performance and new level of innovation. Increasing number of working women Now a day there is gradual increase in working women so there is a big opportunity to increase their sales and women plays vital role in society. THREATS Local competitors selling products at cheaper rate In the market local players are giving cheaper products to the consumers, so consumer will prefer to cheaper products. Because of globalization increasing number of competitor Due to globalization competitors are entering to our cosmetic market so definitely it will be the major threat. Modi Revlon launches street wear product to target to compete with Tupperware Redwood . SEGMENTATION FOR REDWOOD NAIL ENAMEL Beautification needs are not only women in their adult age but teenagers girl too have it. The brand as known who will take care of you and your beauty needs, which can be evident from its catch phrases on top of the world and another is source of radiant beauty POSITIONING STATEMENT Tupperware approached with Redwood nail enamel in 2009. It promoted as Young girl who breaks the rules and loves to have fun. This positioning statement demonstrated young girls who anticipated the image of trying to be unusual and cool. SEGMENTATION Geographic Area: Metropolitan cities and town Company has targeted metropolitan cities and town because of population, consumer knowledge about the product is considerable and towns are upcoming business places. Behavioral Occasions: Going out regularly (schools, college and parties) User status: Regular usage Attitude towards the product: necessary part of everyday accessories. Benefits: develops beauty, exceptional colors, good quality ingredients, atmosphere friendly packaging. Demographics Age: 15 to 24 They targeted age 15 to 24 and product launched to cover teenagers. Education: Students or graduates. Students and graduates have more knowledge about the product. Sex: female. Product was launched only for female. Occupation: students and working women Company has targeted students and working women, because basically Redwood was to cover students and working women. Life cycle: young, single and married. When it comes to Life Cycle Stage Company targeted to young, single and married, because they have more influence to buy the products. Social class: Middle and lower class people People have enough money to afford the product. PEST ANALYSIS P for political factors E for economic factors S for socioculture factors T for Technological factors Pest analysis is to summaries the legal and external environment for the business. It should be done in consideration of influence and responses to the business. These are the pest analysis of Redwood nail enamel. POLITICAL FACTORS Indian cosmetic industries is least affected when compare to other developed economy and Indian cosmetic industry developed by 7.5%, which attributed to our policy frame work with respect to capital and liquidity. Redwood have built strong links with trade based on mutuality in support of Indian government. ECONOMICAL Indian economy registered a growth of more than 9 % for last three years and it maintained robust growth rate as compare to other countries which are developed and developing, so Indian cosmetic industry is directly related growth of economy, which is highly support cosmetic industry. SOCIAL Tupperware have loyalty factor as compared to counter part in other countries. They are strong in organizing social and promotion events and other fashion events, which build huge reputation among the people. TECHNOLOGY Technology advancement changes the face of traditional Indian cosmetic market. It is giving faster and secured service, strong consumer understanding and technology of company has been delivered world class product. Company also introducing new innovating technology due to advancement in technology, Hence technologies continue to evolve and it will meet consumer expectations and habitats. MARKET MIX PRODUCT PRODUCT CATEGORY Core benefit: Core benefit of Tupperware Redwood nail enamel is easy to apply on nail, to look good and it should be highly shined. Basic product: Easy to remove from nails and it should give good look to nails. Expected product: Nail enamel should dry within particular time of period. Augmented product: By introducing some kind of fragrance in nail enamel and making nail enamel very quickly dry, when compared with competitors product, definitely it will exceed customer expectations. Potential product: Introducing something in Redwood nail enamel like, which changing color according to environment changes and to protect nails and high shine finish at all time. PRODUCT CLASSIFICATIONS According to durability and tangibility products, Redwood nail enamel can be classify into nondurable goods, because women will purchase nail enamel frequently and consumed through few uses. When we classify according to consumer good classification, Redwood nail enamel comes under convenience goods, because people buy nail enamel with minimum effort. And we can say Redwood nail enamel is staple goods, because consumer buys nail enamel in regular basis. PRODUCT DIFFERENTIATIONS OF REDWOOD NAIL ENAMEL Form: by offering the Redwood nail enamel in various size and shape to attract customers and giving more choices for customer. Give products in more color and various shining. Features: we can differentiate the product through features of the product by giving more features to customers like fragrance, rapid drying and shining at all time. Performance and quality: by lasts up to two to three weeks and enamel bonds with nails naturally. PRODUCT -LINE LENGTH Upper market stretch: Redwood targeted middle class and lower class consumers to sell the products. Company can come up with some others nail enamel products to cover upper class of market. SETTING THE PRICE Selecting the price: Companys pricing strategy is to survive in the market; company includes fixed costs and variable costs while setting the price. Promotional pricing: Redwood nail Enamel Company can give price at special event pricing, because Redwood nail enamel targeted students to sell their products, so they can give at discounted price during the month June to August. Responding to competitors pricing: Redwood nail enamels major competitor is Revlon, if the competitor (Revlon) changes the price means, company have to analyze the market situation and why competitor changed the price and then change the price according to competitors price to sell the products. Differentiated price: Redwood nail Enamel Company can offer time pricing and image pricing. They can set the price according to quality and quantity of the product. PROMOTION ADVERTISING AND SALES PROMOTION Advertising Tupperware uses various medium to sell the products.. Mediums are television, magazines, events and internet. Tupperware organizes fashion event in that event, company advertise their products. In television media, Tupperware advertise as commercial for Tupperware in that, company advertises their products. Tupperware also releases magazines there also they are promoting their products. Tupperware organizes an event fashion week in those event film stars and models are participating, from that company is easily advertise their products. Internet as medium Company has its own website to advertise their products. Website: www. my2tupperware.com Sales promotion Tupperware Redwood offers sales promotion to increase the sales for particular time of period. Company offers rebates and discounts on specific products which products are in low sales. Brand ambassadors Tupperware have bollywood Actress as a brand ambassadors like Katrina Kaif and Raima Sen.(Brand ambassador, 2009)(Brand ambassadors) PLACE There is a significant change in market distributional channel of cosmetic products. Distribution places are Hyper markets Super markets Departmental stores These stores are opening their shops in smaller towns and cities and these shops offering extensive range of products and frequent promotional offers. Other distribution places are Drug stores Food stores Cosmetic discounters Ware house clubs. Beauty salons Tupperware distribution merged with HUL. HUL having 3000 distributors around the country and Tupper have 1000 distributors. This is the strongest distribution channel among all Indian cosmetic companies. Distributional channel MARKETING PLAN FOR NEXT ONE YEAR Since, industry grows at 13% per annum, and there is considerable income growth of middle class people is an opportunity to develop the business. Hence beautification is fast growing segment in the market, more number of women becoming awake of looking better through the use of beautification products. This low market penetration for beautification and personal care commodities in India offers a chance for more considerable increase, in this country of 1.2 billion people. Company targeted only younger age people to sell their products, and targeted only middle class and lower class people. Tupperware can introduce new products to cover upper end of the market. Company already built a brand image among middle class. So it will help them to capture the upper class market very soon. Since the customers are able to pay for better products which makes them happy and looks better. So Redwood can concentrate to initiate product lines on premium range. Tupperware competitor Revlon launched street wear to compete with Redwood, so company can consider to more depth in product range and to influence new innovation technology. Now company targeting only 15 to 24 age people and they can spread their segmentation level from age 10 to 24. They can advertise to cover school students. Company should be very sensitivity about price of the product; they should not increase the price of the product because low price is the major strength for Redwood nail enamel. Redwood have good distribution channel in metro politic cities and towns, beautification products has less penetration in rural area so Tupperware can improve their distribution channel in rural market. Company can offer combo set of products to the consumers and if they give nail enamel remover along with the product it will help them to increase the sales. Company has to advertise to create more awareness about the product. CONCLUSION Redwood the product of Tupperware is cosmetic range in the Indian market designed to enhance the beauty of the young and teenage consumers. As such it is created clear position in the market, this shows that Redwood clearly understand its consumer and has delivered differentiated product range to meet consumer needs and wants. To introduce the new range to market, the Redwood business put well plan marketing mix, with scope of changing according to consumer behavior and market scenario. The marketing mix is the balanced combination 4 Ps. Redwood has lot scope to change and transform their product to better result, to face the challenge and reverse this trend, which they have substantially their brand, volume growth by being the known and reliable brand among the consumer. Redwood is the young product to the right people in the right way. As a team we created marketing plan for next one year, these are the possible way to grow the business in Indian market and to build brand name amon g the consumer. REFERENCES India knowledge. (n.d.). Retrieved 05 10, 2009, from labnol: http://www.labnol.org/india/knowledge/hll-is-now-hindustan-unilever-ltd/645/ Mediacentre. (08, 06). Retrieved 05 10, 2009, from hul: http://www.hul.co.in/mediacentre/Hul_Connect_June08.pdf Stories. (2002, 7 7). Retrieved 05 31, 2009, from thehindubusinessonline: http://www.thehindubusinessline.com/iw/2002/07/07/stories/2002070700481300.htm Stories. (2006, 09 27). 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Research Paper Helicobacter Pylori

Helicobacter pylori| Previously named Campylobacter pyloridis, is a Gram-negative, microaerophilic bacterium found in the stomach. | | Microbiology (B1325) Research Paper| Detailed Introduction Helicobacter pylori are a species of epsilon proteobacteria which colonizes the harsh environment of the human stomach. Its name refers to both its spiral shape (Helicobacter) and the area of the lower stomach which it habitually colonizes: the gateway (pylorus) between the stomach and small intestine (Meyers, 2007).This bacterium is thought to be present within up to 50% of the human population and has been linked to the development of a number of different medical conditions (Chalmers et al. 2004). This report will provide information about the discovery of H. pylori as well as its morphological characteristics, taxonomic information, biochemical/metabolic characteristics, chemotherapeutic methods of control/treatment/eradication, immunological responses, pathological information, and epidem iology information. Morphological Characteristics Helicobacter pylori are a spiral-shaped, Gram-negative rod approximately 0. x 3. 0 micrometers in size. It is catalase-positive organism which has 4-6 sheathed flagella attached to one pole which allow for motility. It lives in the human stomach and duodenum. H. pylori possess five major outer membrane protein (OMP) families. The largest family includes known and putative adhesions. The other four families include porins, iron transporters, flagellum-associated proteins and proteins of unknown function. Like other typical Gram-negative bacteria, the outer membrane of H. pylori consists of phospholipids and lipopolysaccharide (LPS).The O antigen of LPS may be fucosylated and mimic Lewis blood group antigens found on the gastric epithelium. The outer membrane also contains cholesterol glucosides, which are found in few other bacteria. H. pylori has four to six lophotrichous flagella; all gastric and enterohepatic Helicobacter species a re highly motile due to flagella. The characteristic sheathed flagella filaments of Helicobacter are composed of two copolymerized flagellants, FlaA and FlaB. [1](From Wikipedia, the free encyclopedia). Taxonomic Information Helicobacter pylori are a gram-negative, spiral-shaped organism associated with gastrointestinal disease in humans.It has a worldwide prevalence, with approximately 50% of the world's population infected. Before the first isolation and documentation of this organism from the human stomach in 1982, it was assumed that the human stomach was a sterile environment because of the high levels of acid, which would exclude it as an ecologic niche for any organism. This bacterium is the human-adapted Helicobacter primarily found in the gastric mucosa and areas of gastric metaplasia in the duodenum and occasionally in Meckel's diverticulum and the rectum. It has been cultured rarely from feces, blood, and saliva.It can be detected by polymerase chain reaction (PCR) in den tal plaque and feces. In the latter instances, the viability of the bacteria is in question. H. pylori also have been found in nonhuman primates and cats. H. pylori detection in animals is not common and could be due to human contact with animals. To date, no environmental reservoir has been shown. [2](http://www. gastro. theclinics. com/article/S0889-8553(05)70135-7/abstract) Biochemical/Metabolic Characteristics The genus Helicobacter was created in 1989 with H. pylori as the type species. Since then the genus has expanded to include about 18 species.Some species were reclassified from Campylobacter, but most were newly discovered microorganisms from gastric or intestinal sites in mammalian host animals. The essential property of almost all helicobacter is the presence of sheathed flagella. Most species possess strong ureolytic ability, particularly those associated with gastric mucosa, and exhibit considerable diversity in cell morphology with respect to cell length, number and l ocation of flagella, and presence of periplasmic fibrils. H. pylori have a global distribution and infect human gastric mucosa exclusively but there is some evidence for infection in cats.Genomes of isolates from different individuals are unusual in their diversity in gene order and sequences within individual genes. ‘H. heilmannii1 is another gastric spiral shaped organism less frequently infecting humans but commonly found in cat and dog gastric tissue. H. felis is important in the mouse model of infection. A range of conventional phenotypic tests as well as some new PCR based assays are available for identifying isolates of Helicobacter from clinical specimens. [11]( http://bmb. oxfordjournals. org/content/54/1/17. full. pdf) Chemotherapeutic Methods of Control, Treatment, and EradicationTreatment If you are found to have Helicobacter pylori infection, you may wish to have antibiotic treatment of some kind. Treatment of Helicobacter pylori is usually simple ; straight forwa rd. However, occasional patients need repeated endoscopies, biopsies, breath tests and several courses of treatment with different antibiotic combinations. After treatment of H. pylori, it is necessary to repeat one of these tests to see if the germ has been killed or eradicated for good. Only breath tests or endoscopy with biopsy can be used to prove that the bacterium has been eradicated.The blood tests *(serology) is not suitable to monitor H. pylori eradication because antibodies to H. pylori may remain positive for months or even years after successfully killing the H. pylori. [3] (http://www. helico. com/? q=TreatmentForHelicobacterPylori) Eradication Prolonging the treatment period is a possible strategy for improving H. pylori eradication rates. Several studies have been published that tested this approach, including this paper by Calvet et al. These authors studied the value of extending PPI-based triple therapy from 7 to 10 days and found no additional benefit for patients with peptic ulcers.There was, however, a significant benefit for nonulcer dyspepsia patients (an increase from 66% to 77% in the intention-to-treat analysis and from 73% to 91% in the per-protocol analysis). The authors concluded that the treatment period should be extended from 7 to 10 days for patients with nonulcer dyspepsia. As most eradication therapy, however, is given to patients with uninvestigated dyspepsia, it is not unreasonable to argue that longer therapy should be given to all subjects. Distinguishing between patients with ulcer and nonulcer dyspepsia is therefore rather academic and impractical.The most obvious one is that existing PPI-based triple therapy regimens are not perfect. In the community at large, up to 30% of patients might fail this therapy. If clinicians prescribe triple therapy it should therefore be prescribed for longer than 7 days. This runs the risk of decreased patient compliance, more side effects and a greater cost, but ultimately it boils down to local and national guidelines, which vary from one country to another. Alternatively, clinicians might consider some of the newer eradication approaches, such as use of fluoroquinolone-based therapy or sequential treatment.The latter comprises quadruple therapy over a 10-day period, starting with a PPI plus amoxicillin (1,000 mg twice daily) for the first 5 days, followed by PPI plus clarithromycin (500 mg twice daily) and tinidazole (500 mg twice daily) for another 5 days. Intention-to-treat analysis eradication rates of 97%, 92%, and 94% have been reported in children, adults and elderly patients, respectively. Ultimately, clinicians should still strive towards a much simpler eradication strategy, but this will require investment in novel antibiotic discovery or a better understanding of the pathogenesis of H. ylori. Either way, there is much to be gained from continued interest in this little organism. [4](http://www. medscape. com/viewarticle/525100_2) Immunological Responses Lifelong Helicobacter pylori infection and its associated gastric inflammation underlie peptic ulceration and gastric carcinogenesis. The immune and inflammatory responses to H. pylori are doubly responsible: gastric inflammation is the main mediator of pathology, and the immune and inflammatory response is ineffective, allowing lifelong bacterial persistence.However, despite inducing gastric inflammation, most infections do not cause disease, and bacterial, host and environmental factors determine individual disease risk. Although H. pylori avoid many innate immune receptors, specific virulence factors (including those encoded on the cag pathogenicity island) stimulate innate immunity to increase gastric inflammation and increase disease risk. An acquired T helper 1 response up regulates local immune effectors. The extent to which environmental factors (including parasite infection), host factors and H. ylori itself influence T-helper differentiation and regulatory T-cell response s remains controversial. Finally, effective vaccines have still not been developed: a better understanding of the immune response to H. pylori may help. [5](http://www. ncbi. nlm. nih. gov/pubmed/17382275) Pathological Information Until the discovery of Helicobacter in 1982, ulcers were thought to be caused by stress. Now it is known that ulcers, in addition to gastritis, are caused by a bacterial infection of H. pylori. Though relatively easy to treat with antibiotics, H. ylori can be a risk factor for gastric cancer if it becomes a long-term infection [6] (Stated by D. J. Kelly, 2004. The University of Sheffield). The body's natural defenses cannot combat H. pylori because white and killer T cells cannot easily get through the stomach lining. The defense cells eventually die, spilling their superoxide radicals on stomach lining cells, on which H. pylori can feed[6] (Stated by Helicobacter Foundation, 2004). Epidemiology Information The frequency of H pylori infection in the United States may be linked to race. White persons account for 29% of cases, and Hispanic persons account for 60% of cases.Internationally, H pylori are a ubiquitous organism. At least 50% of all people are infected, but an exact determination is not available, mostly because exact data are not available from developing countries. H pylori may be detected in approximately 90% of individuals with peptic ulcer disease; however, less than 15% of infected persons may have this disease. The mortality rate related to H pylori infection is not precisely known, but it seems to be minimal (i. e. , approximately 2-4% of all infected people). Mortality is due to the complications of the infection, uch as gastric ulcer perforation or MALTomas of the GI tract. Otherwise, the morbidity of H pylori infection can be very high. [7](http://emedicine. medscape. com/article/176938-overview#a0199) The pathogenetic role of H pylori may differ depending on geography and race. White persons are infected with H p ylori less frequently than persons of other racial groups. The prevalence rate is approximately 20% in white persons, 54% in African American persons, and 60% in Hispanic persons. No sex predilection is known; however, females have a higher incidence of reinfection (5-8%) than males.H pylori infection may be acquired at any age. According to some epidemiologic studies, this infection is acquired most frequently during childhood. Children and females have a higher incidence of reinfection (5-8%) than adult males. [7](http://emedicine. medscape. com/article/176938-overview#a0199) Cultural Characteristics Approximately two-thirds of the world’s population is infected with H. pylori. In the United States, H. pylori are more prevalent among older adults, African Americans, Hispanics, and lower socioeconomic groups. It is not known how H. ylori are transmitted or why some patients become symptomatic while others do not. The bacteria are most likely spread from person to person thro ugh fecal-oral or oral-oral routes. Possible environmental reservoirs include contaminated water sources. Iatrogenic spread through contaminated endoscopes has been documented but can be prevented by proper cleaning of equipment. [8](Centers for disease and control prevention) Case Study 1 Title: Correlation of Helicobacter pylori and gastric carcinoma. Authors: Khanna, AK, Seth, P, Nath, G, Dixit, V K, Kumar, M Issue Date: 26-Jan-2002Citation: Khanna AK, Seth P, Nath G, Dixit VK, Kumar M. Correlation of Helicobacter pylori and gastric carcinoma. Journal of Postgraduate Medicine. 2002 Jan-Mar; 48(1): 27-8 Language: Eng. Type: Journal Article Abstract: BACKGROUND: Difference of opinion about the prevalence of H. pylori association with gastric cancer exists in the literature. AIMS: To study the correlation of Helicobacter pylori (H. pylori) to gastric carcinoma. METHODS: 50 proved cases of gastric cancer were studied by rapid urease test, culture, histopathology and ELISA test for H. pylori IgG.RESULTS: 68% of cases of gastric cancer were found to be positive for H. pylori infection as compared to 74% of healthy controls. CONCLUSIONS: The prevalence rate of H. pylori infection in our patients of gastric cancer was lower than in the control population though statistically not significant, suggesting that H. pylori may not be responsible for gastric carcinogenesis in this population. Source URI: http://www. jpgmonline. com URI: http://imsear. hellis. org/handle/123456789/116058 MeSH: * Adult * Case-Control Studies * Enzyme-Linked Immunosorbent Assay * Female Helicobacter Infections –complications * Helicobacter pylori –isolation & purification * Humans * Male * Middle Aged * Prevalence [9](http://imsear. hellis. org/handle/123456789/116058Stomach Neoplasms –microbiology) Case Study 2 Title: Helicobacter pylori in dental plaque of children and their family members. Authors: Gill, H H, Shankaran, K, Desai, H G Issue Date: 1-Sep-1994 Citation: G ill HH, Shankaran K, Desai HG. Helicobacter pylori in dental plaque of children and their family members. Journal of the Association of Physicians of India. 1994 Sep; 42(9): 719, 721 Language: Eng.Type: Journal Article Abstract: A prospective study was undertaken to determine the presence of Helicobacter pylori in the dental plaque of children and their family members. 22 children (age range: 2-12 years; males: 16) admitted to the pediatric ward for various disorders and 17 healthy family members (age range: 7-40 years; males: 9) of 13 of these children were screened for presence of Helicobacter pylori in the dental plaque by the rapid urease test. H. pylori were detected in dental plaque of 82% (18/22) children and 88% (15/17) of family members.In 85% (28/33) of the positive cases the rapid urease test was positive within 1 hour. Our observations indicate that Helicobacter pylori are present in the dental plaque of majority of children and their family members. Source URI: http://w ww. japi. org URI: http://imsear. hellis. org/handle/123456789/95238 MeSH: * Child * Child, Preschool * Dental Plaque –microbiology * Family Health * Female * Helicobacter pylori –isolation & purification * Humans * Male * Prospective Studies Appears in Collections: Journal of the Association of Physicians of India [10](http://imsear. ellis. org/handle/123456789/95238) Conclusion The author covered morphological characteristics, taxonomic information, biochemical/metabolic characteristics, chemotherapeutic methods of control/treatment/eradication, immunological responses, pathological information, and epidemiology in this paper. The overwhelming conclusion is that it is critical to survival of the human race that hygiene and education will be the best possible steps to overcome an increasing body of bacteria in our world. References 1. From Wikipedia, the free encyclopedia 2. http://www. gastro. theclinics. om/article/S0889-8553(05)70135-7/abstract) 3. http://www. heli co. com/? q=TreatmentForHelicobacterPylori 4. http://www. medscape. com/viewarticle/525100_2 5. http://www. ncbi. nlm. nih. gov/pubmed/17382275 6. Stated by D. J. Kelly, 2004. The University of Sheffield 7. http://emedicine. medscape. com/article/176938-overview#a0199 8. Centers for disease and control prevention 9. http://imsear. hellis. org/handle/123456789/116058Stomach Neoplasms –microbiology 10. http://imsear. hellis. org/handle/123456789/95238 11. http://bmb. oxfordjournals. org/content/54/1/17. full. pdf

Ariel case study Essay

Case analysis: Statement of problem: 1. First of all Martin have to find out if the company should improve the equipment. 2. If they decide to improve, then, which currency should they make the purchase in? 3. How can they calculate what their expected rate of return at the most certainty? Analysis: The general question is if the company should make the improvement or not, and if they do (assuming the project is beneficial) which currency will give the highest profit? Since it is calculated that the cost will drop when implementing the new equipment, we assumed that the cash flow equals the difference between the two figures. The NVP is 2,960,532 pesos, but Martin wanted to know whether to make the investment in Euros or Pesos. When we calculated the NPV in euros we can use two different approaches. You can find the NPV (Euro) by either translate NPV (Peso) by dividing it by 15,99. However, the better solution is to use the expected future spot rate on every cash flow, because this estimate is more accurate. Inflation rate is important to look at because, if the inflation rate changes, the NPV also changes and that will effect their decision. So, they have to consider the risk of inflation changes. If the inflation rate drops to 3% in Mexico, the purchase in Euros is more profitable, because the Peso is strengthened. Another variable to consider when deciding between Euros and Pesos is the risks concerning prediction of future currency rates. The short-term exposure, long-term exposure, the political risk and translation exposure could all affect the inflation. Recomendations : The company should go through with the project, because the net present value is positive. However, they should choose which currency to purchase the equipment in carefully, due to the uncertainty of the exchange predictions. They need to take all the risks into account.

How to Grow Epsom Salt Crystals

You can find Epsom salts (magnesium sulfate) in the laundry and pharmacy sections of most stores. Epsom salt crystals are safe to handle, easy to grow and form quickly. You can grow clear crystals or add food coloring if you prefer. Heres what you need to know to make your own crystals. Difficulty: Easy Epsom Salt Crystal Materials 1/4 cup Epsom salts (magnesium sulfate)1/2 cup watershallow bowl or dishsponge (optional)food coloring (optional) Heres How Boil the water in a microwave or on the stove.Remove the water from heat and add the Epsom salts. Stir the mixture until the salt is fully dissolved. If desired, add food coloring.If you have floating sediment (common if using impure Epsom salt), you can pour the liquid through a coffee filter to remove it. Use the liquid to grow the crystals and discard the coffee filter.Pour the mixture over a piece of sponge (optional) or into a shallow container. You need just enough liquid to cover the bottom of the container.For larger crystals, place the container in a warm or sunny location. Crystals will form as the water evaporates. For fast crystals (which will be smaller and delicate-looking), cool the liquid quickly by placing the container in the refrigerator. Cooling the crystals produces thin needles within half an hour. Tips The sponge provides an extra surface area to allow the crystals to form more quickly and helps make them a bit easier to view and handle.Compare the appearance of the Epsom salts before stirring them into the water with the appearance of the crystals that are produced.