Zoetis Marketing Report

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Louisiana Tech University *

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Feb 20, 2024

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Solensia & Alfaxan - Executive Summary Alfaxan is a leading anesthetic product for companion animals and Solensia is a new treatment to battle the ailment of osteoarthritis affecting almost 90% of felines over the age of 12 with no competition currently in the market. The key factor for the producer of these products, Zoetis, is awareness in the broader market. A dual-pronged approach of alerting pet owners and animal medicine providers should create market saturation quickly since knowledge of their existence is the primary barrier currently. Email campaigns, social media presence, and app development is the quickest way to notify these audiences. With market saturation and product awareness, cats will be back to being cats in no time and Zoetis will be purring up a storm. Zoetis Marketing Report - Executive Summary

Zoetis Marketing Report S OLENSIA & A LFAXAN

TABLE OF CONTENTS 1. Introduction 1 2. Current Situation Analysis 3 3. Market Segmentation 8 4. Problem, Objective, and Goal Statements12 5. Recommendations 16 6. Implementation 21 7. Summary 23 References 25 Appendix A 29 Appendix B 30 Appendix C 31 Appendix D 32

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1. Introduction Zoetis Inc. is a global leader in the animal health industry, focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health technology. They offer products across eight core species: dogs, cats, and horses (collectively, companion animals) and cattle, swine, poultry, fish, and sheep (collectively, livestock). They have seven major product categories: vaccines, parasiticides, anti- infectives, dermatology, other pharmaceutical products, medicated feed additives, and animal health diagnostics. Zoetis Inc. was formed as a standalone company in 2013 after being the animal health division of Pfizer for over sixty years (“History of Zoetis,” n.d.). From a marketing perspective, Zoetis is facing challenges with the need to market two new, disparate products. Zoetis acquired Jurox, an Australian animal health company, on September 30, 2022 (“Zoetis announces the completion,” 2022). The acquisition of Jurox increases Zoetis’s range of products, including Alfaxan, a leading anesthetic product for companion animals (“Alfaxalone,” 2023). Additionally, Zoetis gains local research and development and manufacturing operations in Australia, Zoetis’ fourth largest market (“Zoetis announces the completion,” 2022). Zoetis also commercially launched Solensia, a new osteoarthritis (OA) treatment medication, on September 26, 2022 (““Zoetis announces U.S. commercial,” 2022). There is no other product like Solensia on the market in the United States. It is a monoclonal antibody therapy administered in the veterinary clinic that targets Nerve Growth Factor (NGF) to Zoetis Marketing Report - 1 Introduction Page 1

control feline OA pain. By targeting NGF, Solensia controls cats’ OA pain, increasing their mobility and improving their overall comfort. Zoetis’s primary customers are veterinarians and animal agriculture producers, and it prides itself on its direct customer relationships through sales representatives and technical services professionals. In order for Zoetis to best market its two new products, it must have an understanding of the veterinary industry. The veterinary industry primarily consists of veterinarians, veterinary technicians, and veterinary assistants. They are supported by additional staff such as receptionists, office managers, and accounting staff. The veterinary industry is growing and according to the B ureau of Labor Statistics, veterinary occupations are expected to grow at a rate of 19 percent over the 2016–26 decade, almost 3 times faster than the 7-percent average projected for all occupations (Ilic-Godfrey, 2019). According to Brakke Consulting’s 2022 Animal Health Industry Overview, the consolidation of veterinary practices continues to expand, with 75% of specialty and emergency practices and at 25% of general practices being owned by corporate entities (Burns, 2022). The study also reveals that monoclonal antibody technology will be a game changer in animal health, which is of significance to Zoetis because Solensia is a monoclonal antibody therapy. A summary graphic is available in appendix A. Zoetis Marketing Report - 1 Introduction Page 2

2. Current Situation Analysis S.W.O.T Strength 1. Zoetis has a diversified business with products that fall in seven different categories. Allocating business across a variety of divisions is a strength for Zoetis, as it protects them from the risk that less diversified competitors deal with in fluctuating economic times. Strength 2. Zoetis has a diversified business with products that fall in seven different categories. Allocating business across a variety of divisions is a strength for Zoetis, as it protects them from the risk that less diversified competitors deal with in fluctuating economic times. Strength 3. Zoetis has over 70 years of experience, specializing in the animal health industry. Vast changes in the industry have occurred over this time, which has given Zoetis the expertise to adapt its business for the changes that are coming in the future. Strength 4. Highest revenue of any business in the animal health industry. Weakness 1. Zoetis does not have the capabilities to manufacture their own raw materials which has left them vulnerable to supply chain issues in the past. Weakness 2. Zoetis’s stock price is down approximately 36% over the past year. Shareholders appear to believe the company’s value has declined during this period. Weakness 3. Zoetis has had issues managing inventory in the past and are still working on developing solutions to better manage this issue. Opportunities 1 . Recently, Zoetis has focused on expanding its business by acquiring other companies in the pharmaceutical and genetics fields. Zoetis Marketing Report - 1 Introduction Page 3

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Opportunities 2. Even among its competitors, Zoetis stands out through developing highly innovative technologies. One of their goals is to lead in digital and data analytics, enhancing their productivity and business capabilities. Opportunities 3. While Zoetis does business in 100 countries, they are only currently marketing in 45. This leaves them with tremendous opportunity to collaborate their vast product line to clients in these different markets. Threats 1. The animal health industry is highly competitive and subject to extreme government regulation. Threats 2. There exists significant differences between species and customer bases among the various markets. Zoetis must avoid expanding into regions which do not provide worthwhile business opportunities. Threats 3. At serious risk of interest rate and exchange rate risk due to some of the deals it has taken on overseas. Threats 4. Covid-19 has disrupted Zoetis’ suppliers operations and its customer base. As business changes around the world post-pandemic, Zoetis must continue to develop strategies to remain competitive in changing times. Threats 5. Business is particularly prone to external factors, such as weather disasters, infectious disease, and government regulations within the industry. Threats 6. Zoetis acknowledges potential conflicts of interests that may exist among its managers in regards to their relationship with Pfizer. Even as an independent company, Zoetis is still dependent on Pfizer to enforce and maintain some of its intellectual property. Zoetis Marketing Report - 1 Introduction Page 4

Current Sustainable Competitive Advantage Zoetis long-term goals relate to the substantial time and resources it pours into research and development. Through these investments in developing new products and technologies, the company plans to drive growth and gain an advantage over its competitors. Zoetis puts a great deal of emphasis on maintaining positive relationships with its shareholders and has procedures in place to deliver as much excess capital to these shareholders as possible. Zoetis is very involved in the communities they do business with and take pride in the positive work they do with sustainability goals for caring for animals that have been affected by climate change and other disasters, as well as refining their own business practices to better care for the environment. These admirable company missions help win favor among the communities they do business with and will increase revenue in the future. Finally, the business is highly organized, much more so than many of its competitors. As one of the largest and most established companies in the industry, Zoetis is set up to manage future challenges in ways that their competitors are not. Current Strategy of Organization Zoetis also has several business practices which it uses to differentiate itself from its competitors. One of the primary ways it does this is through its incredibly diverse portfolio. Currently, Zoetis has over 300 comprehensive product lines which make it a player in every aspect of the industry, even in some of the more niche areas within animal health. It also invests heavily in the companion animal area of its business. In 2021, this portion of its portfolio made up approximately 60% of total revenue. Companion animals are critical as they are the group humans are typically closest with, so specializing in this Zoetis Marketing Report - 1 Introduction Page 5

area has been very successful for the company's business. Zoetis invests heavily in its research and development group to gain an edge on competitors. These investments over the last several years have allowed the company to develop vaccines, anti-infectives, medicated additives, and more. Current Tactics The marketing mix elements of Zoetis’ business plan have also been critical in its success. As far as location, Zoetis operates all over the world. They are currently doing business in over 100 countries and separate business according to either “United States” or “International.” The United States portion of business generates 52.5% of total revenue, with the International making up 47.5%. The composition of this revenue also differs greatly by region, with dogs and cats making up the majority of business in the United States, and cattle, swine, and fish making up a larger portion elsewhere. For price, Zoetis maintains a unilateral pricing policy. This allows them to announce a minimum resale price without obligating them into contracts or other written agreements. Zoetis says their intention with this agreement is to protect the resale margins of resellers and ensure they provide the highest level of service to end-users. Zoetis’ diverse product line allows customers to have many choices in what works best for them based on price and quality–ranging from very cheap to thousands of dollars (USD) for other products. The product portion of the marketing mix refers to the over 300 product portfolios that Zoetis maintains. These include products such as medicines, dermatology, and vaccines. Each of these products contains subcategories by animal type, geographic location, and price. Offering such a huge variety of products allows the business to be in every sector of the industry, which has contributed to its longstanding Zoetis Marketing Report - 1 Introduction Page 6

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success. Zoetis promotes its business in a variety of ways. They use television commercials as a way of displaying its product line to a broad range of customers, maintain a YouTube channel where they upload longer, more detailed videos for their products, and the different community work they are involved in. Zoetis Marketing Report - 1 Introduction Page 7

3. Market Segmentation The challenge Zoetis is currently facing is how to market two products, of which were obtained in the same month, in an effective way. Solensia, a new-to-the-world product, is a monoclonal antibody therapy administered in the veterinary clinic that targets Nerve Growth Factor (NGF) to control feline Osteoarthritis pain. Osteoarthritis affects approximately 90% of felines over the age of 12, making it the most common chronic disease cats face (Weir, Williams, and Downing, n.d.). Due to its significance, studies suggest that monoclonal antibody technology will be a game changer in animal health, which is precisely what Solensia is. The other product Zoetis is currently marketing is Alfaxan. Acquired through acquisition in late September, Alfaxan is a neuroactive steroid and general anesthetic which is used currently in veterinary practice as an induction agent for anesthesia in companion animals. Both of these products can only be used by veterinary professionals, which by consequence, limits the market Zoetis can market too. In past product launches Zoetis was able to successfully segment the market into stages of the Diffusion of Innovations theory. Diffusion of Innovations theory refers to th e stage of technology innovation adoption that one is within. Individuals may be categorized into: Innovators (2.5%), Early Adopters (13.5%), Early Majority (34%), Late Majority (34%), or Laggards (16%) (Peter and Donnelly, 2012). With a record of over 70 years of successful product launches, Zoetis has gained a reputation of being a top company within the animal health/pharmaceutical field. Zoetis does business in over 100 countries and has stood out amongst its competitors by developing highly innovative technology and its success in Zoetis Marketing Report - 3 Market Segmentation Page 8

acquisitions. With its rich history Zoetis has been able to build a diverse portfolio of products and returning clients which has allowed the company to discover which categories their clients might fall into. By managing their clients into different categories of diffusion, Zoetis has been able to point primary marketing activities towards the innovators, the early adopters, as well as the early majority. It is critical to identify the thought leaders/veterinary leaders/specialists/ academics within Zoetis’s consumer base. Once these early adopters have been able to successfully use the product and return positive feedback the markets then follow a trickle-down effect, in which the late adopters will observe the confidence in the product and be more willing to buy into the new product. Solensia Diffusion of Innovations stages. Solensia Innovators: Typically, academic institutions where research is performed and veterinary students are trained. This is where the early clinical trials of the drug are performed. Advantages of this group is their willingness to try/research new products and disseminate the knowledge to students. Zoetis initially gives the product for free or at a steep discount to the academic institutions. Solensia Early Adopters: Feline only practices make up the majority of the early adopters grouping. These veterinarians/hospitals were included in the later stages of the clinical trials and heavily marketed leading up to the product launch. Another group included as early adopters are veterinary specialists (internal medicine, surgery, rehabilitation, etc.) that see referral cases. For these two groups, solensia fills a specialty need. Once the specialists adopt usage, they communicate regularly with general practice veterinarians in their areas, beginning a trickle-down effect. Zoetis Marketing Report - 3 Market Segmentation Page 9

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Solensia Early Majority: These are general practice veterinarians who like to stay on the cutting edge of practice. These veterinarians often attend major professional development conferences and Zoetis sponsors lectures and a large booth at the exhibit hall to educate regarding the product. Zoetis also purchases ads in the major trade journals to reach these veterinarians. Solensia Late Majority: Conservative/older practitioners who may wait a year to ensure there are no adverse effects as the product reaches more and more patients. Eventual marketing to this group will focus on the safety of the product. Solensia Laggards: Veterinarians nearing retirement who have done things a certain way for so long, they are resistant to any change. This group is the hardest to reach. Alfaxan Diffusion of Innovation Stages. Innovators & Early Adopters: As this product has already been available to the market and was acquired by Zoetis, these groups have already been reached as the product has already been on the market for a few years. These groups include academic institutions and specialty hospitals, same as Solensia. The Early Majority & Late Majority: These are the groups with the most marketing opportunities. Zoetis's sale team and marketing dollars are much larger than Jurox (the company they acquired Alfaxalon from), so they can reach many more veterinarians either with in person visits in veterinary hospitals or through targeted/mass marketing. The laggards remain the same. By following the Diffusion of Innovations style segmentation, Zoetis has to carefully trek the company's relationships with its clients and its perceived value. The company has put great emphasis on its direct customer relationships and has built a team Zoetis Marketing Report - 3 Market Segmentation Page 10

of highly skilled sales representatives and technical service professionals, in order to preserve the positive notoriety it has. The company also puts high emphasis on sustainability and are sure to be involved in the communities they do business with. Their sustainability goals relate to caring for animals that have been affected by climate change and other disasters, as well as refining their own business practices to better care for the environment. These projects result in positive favor and relations among clients ensuring brand loyalty and stature. Consumer loyalty then allows for the company, Zoetis, to not only identify the early/late adopters within their client base but also allows more incentive for late adopters to become early adopters. Zoetis Marketing Report - 3 Market Segmentation Page 11

4. Problem, Objective, and Goal Statements Problem Zoetis is challenged with the marketing of both a new product and a newly acquired product which both occurred in the same month (September 2022). Objective Zoetis must spend an adequate mix of marketing dollars to obtain growth from a new-to-the-world product (Solensia) and a new-to-the-firm product (Alfaxan). Goals Solensia Goal To have 33% of companion animal veterinarians prescribing Solensia by the end of 2023. This goal will be achieved by spending $29,200,000 throughout 2023 utilizing mobile app marketing, email marketing, and paid search advertising in addition to current resources and approaches. A skimming pricing policy will be used. Alfaxan Goal To increase the number of companion animal veterinarians using Alfaxan by 17% by the end of 2023. This goal will be achieved by spending $14,600,000 throughout 2023 utilizing mobile app marketing, email marketing, and paid search advertising in addition to current resources and approaches. Alfaxan will need to be priced competitively compared with other anesthesia/sedation products on the market. In 2021 (the most recent years in which published numbers are available), Zoetis spent $292,000,000 on advertising and promotion expenses (“Zoetis Inc. Form 10-K,” 2022). Given that new products require significantly more marketing resources than existing products, it is reasonable that 10% of Zoetis’s advertising and promotion expenses for Zoetis Marketing Report - 4 Problem, Objective, and Goal Statements Page 12

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2023 be devoted to Solensia, its new-to-the-world product. Based on this estimation, Zoetis should spend $29,200,000 in 2023 to market Solensia. Alfaxan, Zoetis’s new-to- the-firm product, will require less marketing resources as the product was previously introduced and marketed by the former owner of the product, Jurox. It is reasonable for Zoetis to spend 5% of its advertising and promotion budget ($14,600,000) on Alfaxan. Since osteoarthritis affects approximately 90% of felines over the age of 12, it is the most common chronic disease cats face (Weir, Williams, and Downing, n.d.). Given the large number of cats that will benefit from Solensia, it is a new-to-the-world product, and there are no competitive products in the market, it is reasonable to have 33% of companion animal veterinarians prescribing Solensia by the end of 2023. The 33% estimation is derived by including the innovators (2.5%), early adopters (13.5%), and half the early majority (17%). Given Alfaxan’s maturity as a product, the innovators, early adopters, and early majority are already using the product. With the size of Zoetis’s sales force relative to Jurox and the $14,600,000 expenditure for advertising and promotion, it is reasonable to increase the number of companion animal veterinarians using Alfaxan by 17% (half the late majority category) by the end of 2023. Zoetis can obtain these goals by utilizing current resources and approaches in addition to the approaches suggested here. Current approaches can be found in Zoetis’s 2021 10-K: Our sales representatives visit our customers, including veterinarians and livestock producers, to provide information and to promote and sell our products and services. Our technical and veterinary operations specialists, who generally have advanced veterinary medicine degrees, provide scientific consulting focused on disease management and herd Zoetis Marketing Report - 4 Problem, Objective, and Goal Statements Page 13

management, training, and education on diverse topics, including responsible product use. These direct relationships with customers allow us to understand the needs of our customers. Additionally, our sales representatives and technical and veterinary operations specialists partner with customers to provide training and support in areas of disease awareness and treatment protocols, including the use of our products. As a result of these relationships, our sales and consulting visits are typically longer, more meaningful and provide us with better access to customer decision makers as compared to those in human health. In certain markets, including the U.S., pet owners are taking a more active role in product purchasing decisions, and as a result we are increasingly investing in direct-to-consumer marketing efforts. As of December 31, 2021, our sales organization consisted of approximately 3,800 employees. (“Zoetis Inc. Form 10-K,” 2022). The additional approaches noted in this project include: mobile app marketing, email marketing, and paid search advertising. The mobile app marketing can be especially useful for Solensia as a particular challenge in veterinary medicine is identifying pain and discomfort in cats. With the recent development of an AI app to identify feline facial expressions showing discomfort (“Pain assessment in cats,” n.d.), Zoetis can work toward incorporating this app or its technology in its own app to market Solensia. Email marketing will reach veterinary practitioners and educate them regarding both products. The paid search advertising will increase Zoetis’s direct-to-consumer marketing, which will be more useful for Solensia as it is a product that interfaces more directly with the pet owner (monthly injection to treat arthritis in their pet cat) as compared to Alfaxan which is used by the veterinarian for sedation and anesthesia. Zoetis Marketing Report - 4 Problem, Objective, and Goal Statements Page 14

Regarding pricing, while details are proprietary and vary based on multiple factors, the pricing strategy is consistent for each product and worth noting in the goal. Given that Solensia is a unique, new-to-the-world product with no competition, Zoetis will employ a skimming policy. Given that Alfaxan is in a more mature phase of its lifecycle, the pricing will not be as aggressive as Zoetis tries to increase market share in the more competitive realm of sedation and anesthesia products. Zoetis Marketing Report - 4 Problem, Objective, and Goal Statements Page 15

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5. Recommendations Zoetis promotes its business through their online website, social media platforms, YouTube channel, and television commercials. Zoetis’s business aim is to promote their two new products, Solensia and Alfaxan, in more effective ways that will generate growth and revenue. The following are three different ways that could make that achievable. Mobile App Marketing A huge opportunity for businesses to use mobile applications to reach their target audience exists given that the majority of individuals constantly have their mobile devices with them. Mobile applications are an excellent sales channel for goods and services for a variety of factors. To begin with, purchasing via apps is simple and faster. The user’s profile, delivery, and payment details are maintained in the account once they are registered. The difficulty of making recurrent purchases is low. It's also simple to add new services, like reward programs and push alerts, that motivate clients to make purchases from your company. One of the most popular methods of app communication is push notifications. Customers can receive notifications from your company when you have news to share if you have a mobile app. The cost each month might range from $30 to $200 (USD) (Hmara, 2021). Through a rewards program, a business may also increase customer loyalty via the mobile app. By rewarding loyal consumers with discounts and free gifts, these programs stimulate repeat business from clients. However, reward programs aren't the Zoetis Marketing Report - 5 Recommendations Page 16

only approach to increase recurring business. Development and publication of content that draws people closer to the business or segmenting them and providing them with targeted offers and discounts that speak to their requirements. This will inform clients about offers, new products and services, and company updates. Customer referrals to different support channels can be made using mobile apps. For instance, by providing connections to social networking sites. In the app, help materials that address typical user inquiries can be produced. A product needs a strong marketing strategy to succeed and make money; otherwise, it will simply get lost amid the millions of other applications available. Market research is the most crucial phase in the successful launch of any product. For a market entry to be effective, even the tiniest details matter. Firstly, examine user behavior to develop a promotion approach that will attract maximum attention. Investigate options for promoting the products as the next step. Consider social media marketing campaigns, viral ads, influencers' services. The full market research process typically costs between $5,000 and $15,000 (USD). The process then moves on to content optimization for the App Store, Google Play Market, Huawei App Gallery, Amazon App Store, and Samsung Galaxy Store, among other mobile app distribution channels. As a result, this is used to create a mobile app for iPhones, iPads, and Android devices. Every effort should be made to optimize the names, keywords, descriptions, images, and videos for the app. Graphic material can be more important than words in some circumstances. All of this is an integrated system for product marketing, making it much simpler for users to locate and download your Zoetis Marketing Report - 5 Recommendations Page 17

program. Making a product image that encourages the consumer to test the app is another challenge in optimization. Public relations still have a prominent place in the promotion process despite the extensive development and variety of internet technologies. Publishing press releases is a smart move to make as many people as possible aware of your product. PR campaigns that are well-planned will draw in the most customers at a reasonable cost. To do this, collaboration with a PR firm is recommended; they often bill between $100 and $300 (USD) per hour. The hard work really starts after the software is released on the market; make use of a variety of tactics, such as paid advertising, to encourage consumers to download the app. Posting promotional information on websites, social networks, or other applications is considered paid advertising. In appendix C, is a sample graphic that could be easily shared on social media by customers. Its primary objectives include boosting the brand’s online visibility, encouraging users to execute specific activities inside the app, and encouraging consumers to download the app. Another strategy is to create a video commercial for the application and post it on YouTube, which Zoetis already has a channel. Other social networks can be used to promote promotional videos. Depending on the site chosen to buy adverts on, the cost of these services might vary greatly. A mobile app's marketing consists of a number of deliberate measures designed to draw more users to the service. Profits can be raised in this method. Today’s market provides several options for product promotion that fit any budget. There is also no singular method that would work for all applications. Therefore, it is important to focus on primary business goals when choosing ways to promote. An average of $10,000 Zoetis Marketing Report - 5 Recommendations Page 18

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(USD) is a reasonable amount to set out for a mobile app marketing budget in order to produce a high-quality promotion. Given Zoetis's $529 million (USD) in net profits, this is a cost-effective instrument that would help the company (“Quarterly Results,” 2022). Email Marketing To market via email, Zoetis could send commercial messages to their email subscribers, who have agreed to receive emails from them. Email marketing is used to inform, sell, and build a brand community (e.g. with a newsletter). Instead of one-size- fits-all mass mailings, modern email marketing focuses on consent, segmentation, and personalization. Benefits include targeted and personalized content, built credibility, better brand recognition, boost of sales, stronger customer relationships, optimization of time and budget, metrics to learn what works, increased traffic to Zoetis’s website, established authority, and built excitement. A sample email graphic can be found in appendix C. In fact, personalized email messages improve click-through rates by an average of 14% and conversions by 10%. Personalized emails also deliver 6x higher transaction rates (“11 Incredibly Compelling,” 2023). An email marketing agency normally charges a basic rate of $300 to $500 (USD) per month, with tiered pricing that increases with the size of the contact list or monthly email volume. A major company may pay between $2,000 and $12,000 (USD) a month. After their standard fee, some agencies may add a flat fee of $250 (USD) for every 10,000 contacts (Rowe, 2023). Zoetis Marketing Report - 5 Recommendations Page 19

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Email marketing is one of the most cost-effective ways of marketing your business. The ROI of an email marketing campaign can be astronomical. In fact, the average campaign generates an ROI of 4400%, or a return of $44 (USD) for every one dollar spent. In addition, B2C marketers who leverage automation have seen conversion rates as high as 50% (“70 email marketing,” 2022). Paid Search Advertising Every minute, Google receives 2.3 million searches (Capala, 2018). Google is the go-to resource for questions. Having Zoetis’s website as one of the top Google results for pet owners would be advantageous. Pay-per-click (PPC), Google AdWords, and other paid search advertising options can help Zoetis reach clients seeking veterinary services. Paid search advertising is trackable, allowing for better return on investment measurement. For example, for every $1 spent on Google AdWords, businesses earn an average revenue of $2 (USD) (“2020 PPC statistics,” 2023). Benefits of paid search advertising include more visibility, more traffic, highly interested prospects, and detailed analytics. This is probably the most expensive marketing method however, with the average cost per click (CPC) for Google Ads ranging between $2 and $4 (USD). Businesses spend an average of $9,000 to over $30,000 (USD) per month on paid advertising (Maake, 2022). Zoetis Marketing Report - 5 Recommendations Page 20

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6. Implementation Zoetis offers over 300 animal medications and vaccines including Solensia and Alfaxan. These medications and vaccines are available to the general public to reduce diseases and reduce illness in the average household pet, but administered by vet professionals. Zoetis products must be readily available to the public at all times or the spread of diseases and illness will spread rapidly. The exact cost of their products is not available to the public as those prices can be altered by the veterinarian clinics. Zoetis does their best to provide the best products for the best prices. The consumers that will be targeted are the average household pet owners around the world. The “right price” for the products is determined by the competition and demand at any given time. The prices are altered by factors such as inflation, accessibility to raw materials since Zoetis does not produce their own raw materials, and competitor pressure. Prices over time will rise and fall due to the stated factors. In this current economic time prices have risen substantially inflation has been an issue. Sales will be created through presenting the products to clinics that have a demand for the medicines and vaccines. Zoetis products will be distributed by the clinics to the common consumers pets, livestock and equine animals. This channel is the easiest way to connect a common pet owner to the necessary products they need. Since the veterinarians will have the knowledge on the products, they can inform the consumers on which products will work best for them. Consumers do not have any other channels for pet vaccinations and medicines other than the vet clinics or OTC products online. Zoetis enters into vet clinics Zoetis Marketing Report - 6 Implementation Page 21

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by sending representatives to show how their products will benefit their business with material like the poster in appendix D. The cost benefit of using vet clinics is very favorable, since promotion will be handled by the clinics there is little need for direct marketing other than Zoetis website. Zoetis promotes its business through their online website, social media platforms, YouTube channel, and television commercials. Advertising their products online so consumers can review the details on what is being administered to their pet. Zoetis Marketing Report - 6 Implementation Page 22

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7. Summary Zoetis will continue to be a global leader in the animal health industry with new and revolutionary products like Solensia and Alfaxan. 70 years of experience and the highest revenue of any business in the animal health industry demonstrates that leadership. Zoetis’s unrelenting drive with research and advancement will change the lives of animals around the world from vital industry livestock to the cat curled up on a child’s lap. Solensia is an unchallenged product to treat a medical problem experienced by over 90% of felines over the age of 12 and Alfaxan is a leading anesthetic. Increasing awareness of these products through email marketing, paid search advertising, and mobile app marketing will anchor the 2023 product lines. We can expect 33% and a 17% increase in companion veterinarians prescribing Solensia and Alfaxan, respectively, by the end of 2023. The diversity of Zoetis’s portfolio of over 300 product lines allows for downturns in some animal healthcare markets while being buoyed by other markets and is a player in every part of the industry. By being a leader in digital and data analytics to enhance productivity and capabilities, Zoetis is capable of overcoming concerns in supply chain distribution and holds an advantage over their competitors. With the international segment of the business accounting for over 47% of the total revenue, Zoetis is poised to ride out any economic hit in the US with the balanced Zoetis Marketing Report - 7 Summary Page 23

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segmentation as well as the reverse. Zoetis is set up to be as agile as a cat, no longer limited by osteoarthritis thanks to Solensia. Zoetis Marketing Report - 7 Summary Page 24

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References “11 Incredibly Compelling Benefits of Email Marketing in 2023” (2023), WebFX, (accessed February 1, 2023), [available at https://www.webfx.com/email- marketing/learn/benefits-of-email-marketing/]. “2020 PPC statistics - a comprehensive list of pay-per-click stats” (2023), Valve and Meter, (accessed February 1, 2023), [available at https://valveandmeter.com/pay-per- click-statistics/]. “70 email marketing stats you need to know” (2022), Campaign Monitor, (accessed February 1, 2023), [available at https://www.campaignmonitor.com/blog/email-marketing/70-email-marketing-stats-you- need-to-know/]. “About Us | Zoetis US”, (accessed February 12, 2023), [available at https://www2.zoetisus.com/about-us]. “Alfaxalone” (2023), Wikipedia, Wikimedia Foundation, (accessed February 1, 2023), [available at https://en.wikipedia.org/wiki/Alfaxalone]. Burns, Katie (2022), “VMX 2022 features industry overview, global research on human-animal bond,” American Veterinary Medical Association, (accessed February 1, 2023), [available at https://www.avma.org/news/vmx-2022-features-industry-overview - global-research-human-animal-bond]. Capala, Matthew (2018), “6 google statistics that will show you the value of Seo,” BusinessCollective, (accessed February 1, 2023), [available at Zoetis Marketing Report - References Page 25

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https://businesscollective.com/6-google-statistics-that-will-show-you-the-value-of-seo/ index.html]. “History of Zoetis Animal Health” (n.d.), Zoetis, (accessed February 1, 2023), [available at https://www.zoetis.com/our-company/our-story/history]. Hmara, Anna (2021), “How much does it cost to market an app [guide],” KeyUA, KeyUA Ltd., (accessed February 1, 2023), [available at https://keyua.org/blog/how- much-does-it-cost-to-market-an-app/]. Ilic-Godfrey, Stanislava (2019), “Veterinary occupations and projected employment,” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, (accessed February 1, 2023), [available at https://www.bls.gov/opub/btn/volume-8/veterinary- occupations-growing.htm]. Maake, Ryan (2022), “How much does google ads cost in 2023?,” WebFX, (accessed February 1, 2023), [available at https://www.webfx.com/blog/marketing/much- cost-advertise-google-adwords/]. “Pain assessment in cats: Feline grimace scale” (n.d.), felinegrimacescale, (accessed February 1, 2023), [available at https://www.felinegrimacescale.com/]. Peter, J. Paul and James H. Donnelly (2012), Marketing management: Knowledge and skills, McGraw-Hill/Irwin. “Quarterly results” (2022), Zoetis Inc. - Quarterly Results, (accessed February 1, 2023), [available at https://investor.zoetis.com/financials/quarterly-results/default.aspx]. Rowe, Adam (2023), “Email marketing cost 2023 : What will it really cost?,” Tech.co, (accessed February 1, 2023), [available at https://tech.co/digital-marketing/email-marketing-cost]. Zoetis Marketing Report - References Page 26

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“Solensia Client Education: Zoetis US” (n.d.), Solensia Client Education, (accessed February 12, 2023), [available at https://www.solensiavetteam.com /for-your- clients]. Weir, Malcolm, Krista Williams, and Robin Downing (n.d.), “Helping your cat with osteoarthritis,” VCA Animal Hospitals, (accessed February 1, 2023), [available at https://vcahospitals.com/know-your-pet/helping-your-cat-with-osteoarthritis]. “Zoetis announces the completion of its acquisition of Jurox, a leading provider of livestock and companion animal products” (2022), Zoetis Inc. - Zoetis Announces the Completion of its Acquisition of Jurox, a Leading Provider of Livestock and Companion Animal Products, (accessed February 1, 2023), [available at https://investor.zoetis.com/news/news-details/2022/Zoetis-Announces-the-Completion- of-its-Acquisition-of-Jurox-a-Leading-Provider-of-Livestock-and-Companion-Animal- Products/default.aspx]. “Zoetis announces U.S. commercial launch of solensia™” (2022), Zoetis Announces U.S. Commercial Launch of Solensia™ | Zoetis US, (accessed February 1, 2023), [available at https://www.zoetisus.com/news-and-media/zoetis-announces-united- states-commercial-launch-of-solensia.aspx]. “Zoetis Inc. Form 10-K for Fiscal Year Ended December 31, 2021.” (2022), Securities and Exchange Commission, (accessed February 1, 2023), [ available at https://www.sec.gov/Archives/edgar/data /1555280/000155528016000344/zoetis-20151231x10kye.htm] Zoetis Marketing Report - References Page 27

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Appendix A: Zoetis Summary (“About us,” n.d.) Zoetis Marketing Report - Appendix A Page 28

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Appendix B: Social Media Post - Pet Owners (“Solensia Client Education,” n.d.) Zoetis Marketing Report - Appendix B Page 29

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Appendix C: Email Campaign - Pet Owners (“Solensia Client Education,” n.d.) Zoetis Marketing Report - Appendix C Page 30

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Appendix D: Veterinarian Poster - In-Practice Checklist Zoetis Marketing Report - Appendix D Page 31

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(“Solensia Client Education,” n.d.) Zoetis Marketing Report - Appendix D Page 32

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Zoetis Marketing Report

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