Allison Watkins, director of the vaccine division of Merck necessary to decide on the pricing of new Merck vaccine Gardasil and one of the biggest product launches of the company this year. The outside consulting firm, which promised to recommend a price of Gardasil has proposed a price of $ 120 per dose (or $ 360 per person, each person having three doses over six months to get sufficient immunity). Gardasil marketing team disagree on the recommended price, some thought it was clearly too high, while others said it was too low. The latter group argued that Merck missing an important opportunity to set the price at a low level. Watkins now must decide whether to follow the recommendation of the consulting firm or to set a different price.
by
Tim Calkins,
Megha Vora
Source: Kellogg School of Management
10 pages.
Date Posted: February 23, 2009. Prod #: kel400-PDF-ENG
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