Market Analysis for Tums Brand

Individual Project for Product Tums
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Individual Project for Product Tums
Part 5: Executive Summary
The report focuses on the market analysis, segmentation, targeting, positioning, brand analysis, and brand recommendations of Tums antacids. Using the marketing mix of price, place, promotion, product, and SWOT analysis, one can tell that Tums is competitive and that many Americans use its products. However, the antacid industry is rapidly changing due to increased competition. Notably, Tums needs to improve its core competencies to sustain its competitive advantage. First, Tums should upgrade its supply chain to Triple-A, which emphasizes agility, alignment, and adaptability. By using Triple-A, it will be possible for Tums to enter new countries and territories to expand its market coverage and benefit from the economies of scale. Second, Tums need to embrace open innovation to improve its products and services. In other words, the company should interact and borrow ideas, innovations, and inventions from internal and external stakeholders. Third, Tums should stop over-relying on its tangible resources and start enhancing its intangible resources. The company can use the VRIO framework to ensure that its resources, capabilities, and core competencies are valuable, rare, costly to imitate and that the firm is well-organized to capture the economic value. The report portrays that Tums is in the right direction, but it should reinvest, hone, and upgrade its resources and capabilities to avoid organizational inertia. My report has been reviewed by the Center for Business Communication (CBC), and changes have been done accordingly.
Part 1: Market Analysis of Product Category
Industry Analysis
According to Market Data Forecast, North America's antacid market is worth about $4.92 billion as of 2020. The market for antacid drugs is expected to grow at a compound annual growth rate (CAGR) of 4.6%, which means it will be worth approximately $6.15 billion by the end of 2025 (Market Data Forecast, 2020). Some factors will contribute to the high consumption of Tums and other antacid brands. They include the increase of geriatric population with Gastroesophageal Reflux Disease (GERD) and side effects of medicines, such as anti-inflammatory and non-steroidal drugs. Additionally, poor lifestyles in the current and upcoming generations might lead to higher cases of stomach acidity. Currently, Tums is the leading and most preferred antacid brand in the United States of America (USA). Over 60 million rolls and bottles of Tums are sold annually, which is almost twice the amount sold by Tums' closest competitor (Tums.com, 2020).
Tums is an over-the-counter (OTC) medicine that treats symptoms that occur due to a high level of stomach acids, such as indigestion, upset stomach, and heartburn. The medicine contains calcium carbonate. Tums was created by James Howe, a pharmacist, in 1928 to treat his wife's stomach issue of indigestion (Tums.com, 2020). In particular, it lowers the acid level in the stomach. The medicine should be taken as directed on its package or by a physician. Tums come in different forms, namely liquid and...