case study
TRANSCRIPT
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Click-through competition
Case study analysis on MedNet.com
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What is the case study all about?
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Who all are the characters involved in the case study?
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Heather Yates-Vice President for Business development at MedNet.com Bill Bishop-Vice President of Consumer Marketing at MedNet.com Bradley Meyers-Chief Financial Officer at MedNet.com Mahira Baker- Chief Marketing Officer at Windham Pharmaceuticals
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Some basic terms used in the case study that we need to get familiar with!
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Some basic terms used in the case study that we need to get familiar with!
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Some basic terms used in the case study that we need to get familiar with!
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Some basic terms used in the case study that we need to get familiar with!
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Analyzing MedNet.com’s company profile: its goals, team, awards and honors
received, pricing policy and income statement. Also we need evaluate its greatest strengths and weaknesses
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MedNet.com’s Goals
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• To provide scientifically based medical information to a non-professional consumer audience
MedNet.com’s Goals
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• To provide this information for free
MedNet.com’s Goals
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• To generate profits from advertising sales
MedNet.com’s Goals
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Awards and Honors
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MedNet.com does its pricing on CPM basis. It charges
$100 per 1000 impressions.
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Strengths Weaknesses
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Strengths Weaknesses
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Strengths Weaknesses
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Strengths Weaknesses
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Strengths Weaknesses
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MedNet.com’s Income Statement
Revenue
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• Analysis report of the advertising campaign
MedNet.com’s Competitors
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Nonprofit and governmental organizations like
U.S National Library of Medicine and W.H.O provided
with more comprehensive information though they were
not easy to navigate.
Unlike MedNet.com, they provided information on
scientifically based solutions and alternative therapies with
disclaimers
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A profit based and condition specific
website, cholesterol.com poses financial threat to
MedNet.com’s advertising revenue and
audience.
An indirect competitor
clinictrials.com is taking away a portion
of MedNet.com’s advertising business.
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alternativehealth.com competes with
MedNet.com through unproven theories and procedures such as herbal remedies and massage. It has larger
audience base as compared to
MedNet.com and its advertising sales are
more robust
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• Marvel biggest competitor
MedNet.com’s biggest competitor:
Marvel
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Comparative analysis of advertising cost through various advertising mediums
Cost per click through
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Analyzing the Marvel’s threat
1
• MedNet.com charged its advertisers for impressions on its webpages while
Marvel provides impressions for free. It only charges for the click-through
on the advertisements.
2
3
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Analyzing the Marvel’s threat
1
2 • If MedNet.com follows Marvel’s policy it will suffer a loss in its revenues by
over 80 percent
3
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Analyzing the Marvel’s threat
1
2
3 • Yates and Bill try to evaluate other options to keep up with their revenues.
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They come up with three options for
increasing revenues
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They come up with three options for
increasing revenues
Increase the size of its audience by covering alternative healing
approaches
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They come up with three options for
increasing revenues
Contract with large employers to become a corporate health
site of record
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They come up with three options for
increasing revenues
Start charging visitors for providing
information on the website.
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Increase the size of its audience by covering alternative healing
approaches
Problem: Alternative health audience
won’t click on ads of pharmaceutical
companies
They come up with three options for
increasing revenues
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Contract with large employers to become a corporate health
site of record
Problem: MedNet.com would be defamed as
morphing from information content business to human
resource service provider for hire
They come up with three options for
increasing revenues
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Start charging visitors for providing
information on the website.
Problem: There will be significant
reduction in the number of visitors on
the MedNet.com’s Website
They come up with three options for
increasing revenues
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Analyzing the Marvel’s threat
4 • All the options are scraped and a new short-term solution needs to be
sought.
5
6
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Analyzing the Marvel’s threat
4
5
• Yates and Bill need to convince Baker over the fact that the
services MedNet.com provides has more value attached to it.
6
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MedNet.com’s V/S Marvel’s
Ads appearing on MedNet.com’s page are considered much more trusted by audience over Marvel’s
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MedNet.com’s V/S Marvel’s
Marvel’s audience is not lucrative enough as compared to MedNet.com
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MedNet.com’s V/S Marvel’s
MedNet.com’s higher advertising charges over Marvel can be attributed to the fact that conversion rate of audience watching ads to actually buying products was more in MedNet.com.
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Survey results to support their statements
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MedNet.com’s V/S Marvel’s
Windham Pharmaceuticals had launched a product Vesselia and it provided promo codes to customers which they can use to redeem offers while purchasing it. They used this to attribute drug sales to relevant advertising venues.
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MedNet.com’s V/S Marvel’s
Yates was sure that they had a better conversion rate and thus, offered the incentive of not billing Windham until the reports of the campaign arrived.
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Analyzing the Marvel’s threat
4
5
6 • An attempt is made to convey these facts to Baker and postponing the
billing process to support their facts
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Baker finally seems quite convinced from the facts
as communicated by Yates and Bill.
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However, a new challenge comes up. Both MedNet.com and Cholesterol.com bring
nearly equal margins of profits to Windham Pharmaceuticals. Baker wonders why she should not shift to cholesterol.com and
what advantage they have from MedNet.com over
Cholesterol.com
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Analysis of performance of various marketing channels in prescription of
Heart Medication
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The entire MedNet.com team is in the dilemma of selecting best alternative keeping in mind the best growth of the company.
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Fundamental problems faced by MedNet.com
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Fundamental problems faced by MedNet.com
1) Impression to conversion ratio needs to balance the advertising budgets of advertising companies
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Fundamental problems faced by MedNet.com
2) Competition from condition specific websites
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Fundamental problems faced by MedNet.com
3) Competition from indirect players
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Fundamental problems faced by MedNet.com
4) Competition from governmental websites
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Three proposed ALTERNATIVES to be taken into consideration
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Three proposed ALTERNATIVES to be taken into consideration
1) Shifting to employee enterprise businesses
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Three proposed ALTERNATIVES to be taken into consideration
2) Gaining specialization in a particular domain (Heart/Brain etc.) and charge visitors for the content on the website
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Three proposed ALTERNATIVES to be taken into consideration
3) Incorporating alternative health medication content
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Alternative 1. Shifting to Employee Enterprise Business
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Alternative 1. Shifting to Employee Enterprise Business
Though the field may align with the company’s core
competency, the company will have to enter into a totally new market
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Alternative 1. Shifting to Employee Enterprise Business
Brand repositioning , entering and establishing itself in an entirely new market will require large inputs of money and other resources
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Alternative 1. Shifting to Employee Enterprise Business
Further, it will invoke learning curve costs for gaining expertise to compete with market leaders
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Alternative 1. Shifting to Employee Enterprise Business
New organizational structures needs to be developed, new objectives and company policies needs to be devised
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Alternative 1. Shifting to Employee Enterprise Business
The primary concern of cut throat competitions and uncertainties will still exist
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Alternative 2. Gaining specialization in a particular domain
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Alternative 2. Gaining specialization in a particular domain
Regulatory issues, gaining medical certification and
approvals will lead to many inconveniences
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Alternative 2. Gaining specialization in a particular domain
Also threats for lawsuits of various kinds for giving unauthorized consultation can be a risk
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Alternative 2. Gaining specialization in a particular domain
Selecting a particular domain (Heart/Brain etc.) and tailoring the company again for that kind of health space, structuring organization and brand repositioning will require large inputs of money and other resources
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Alternative 2. Gaining specialization in a particular domain
Competing with already established players in that domain and gaining expertise will require time and great efforts
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Alternative 2. Gaining specialization in a particular domain
Audience base will shrink in size and will be
restricted to that particular domain, further drop will be triggered due to charging of fees for providing information content. Thus advertising opportunities will further degrade due to reduced audience base.
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Alternative 2. Gaining specialization in a particular domain
Brand repositioning shift can cause chaos among the audience as they wont be able to relate the moves of the company with their primary offerings and value proposition (for what they are known for)
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Alternative 2. Gaining specialization in a particular domain
Competition will get tougher with head to head
knockout from websites like cholesterol.com which are both established and experts
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Alternative 3. Incorporating alternative health content
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Alternative 3. Incorporating alternative health content
Slight modifications can be made in the website
by incorporating a new tab for alternative health content
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Alternative 3. Incorporating alternative health content
Interested visitors will divert accordingly
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Alternative 3. Incorporating alternative health content
Existing visitors won’t leave, as this is just an
expansion into a new adjacency retaining their flagship product alive and undiluted
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Alternative 3. Incorporating alternative health content
Disclaimers on alternative health options will help MedNet.com retain its authenticity
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Alternative 3. Incorporating alternative health content
Advertisements of all pre-existing pharmaceutical clients can be placed in all other tabs except alternative health
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Alternative 3. Incorporating alternative health content
Infact, due to MedNet.com being a brand and market leader in providing free authentic and highly reliable information, new audience base will add up to the pre-existing ones, who are more interested in alternative medications and will shift from alternativehealth.com due to higher reliability
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Alternative 3. Incorporating alternative health content
Visitors will get information on both kind of domains under a common roof.
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Alternative 3. Incorporating alternative health content
Gradual movements of visitors in both domains will help them explore more and will mutually benefit both types of customer companies as both will get access to new market segments
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Thus movement to incorporate alternative health medication
information can work in company’s favor and is a well
calculated and balanced recommendation.
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Thank you This presentation was created by
Ashutosh Shukla, IIT Roorkee during an internship under
Prof. Sameer Mathur IIM Lucknow