Virus Solutions (Pty) Ltd is the manufacturer of various
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Virus Solutions (Pty) Ltd is the manufacturer of various ant-virus vaccines and chronical
medicines. Some of the patents under which their medicines were produced had expired
after the prescribed time limit. Now they are faced with generic competition in the global
market. This will put them now suddenly in a perfect competitive market with thousands of
medical aid companies and private patients their customers.
The marketing and sales departments of Virus Solutions (Pty) Ltd had employed you as a
consultant to determine for the company what they can expect will happened with the sales
of a certain anti-cholesterol drug “ with the name Cholestolvin, once the patent right expired
and generic competitors will also enter the market. The competitors already had conducted
various sample test and marketing campaigns and have very good data on what they think
their prices will be. Virus solutions (Pty) Ltd also intend to launch a big advertisement and
marketing campaign to doctors, medical aid schemes, hospitals and clinics to boost sales.
The company sells this product through more than 150 independent chemists, clinics and
private hospitals. Virus Solutions (Pty) Ltd Homebase’s marketing research team developed
the demand equation below for expected daily sales of Cholestolvin, based on its average
retails sales over the last 18 months, data of the competitors, as well as income data of its
clients.
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