Pfizer Case StudyPfizer Inc. is a leading pharmaceutical company engaged in the discovery of new technologies, the manufacturing of prescription and "over-the-counter" (OTC) medicines, and than the marketing of such products. It operates in three distinct segments: human health, consumer health and animal health. For fiscal 2004, the company generated revenue of approximately $53 billion which contributed to net income of more than $11 billion. (Pfizer, 2004) The cow and calf division of the Animal Health segment markets its products directly to cattle producers. These products include vaccines, medications and antibiotics intended to support healthy and consistent meat-producing cattle herds. He has segmented the market into three distinct categories. Amateurs raise fewer than 100 cows; Traditionalists typically carry between 100 and 499, and companies work with 500 or more. (Mohr, 1999) The time spent in the field with the breeders was distributed according to the volume of products purchased by each individual. Those who spent higher amounts received the most attention (in the form of personal visits, seminar offers, and trial product samples). Although breeders appreciate visits and personal attention from sales representatives, they trust their veterinarian's opinion over everyone else's. Pfizer traditionally uses two distribution channels for its animal health products: veterinary practices and pet food stores. It has also tended to view the farmer as the end user of its product, but due to segmentation by size, it may or may not understand the needs of each customer, nor their role in the wider supply chain (Ranchers-Feed Lots- Meat packers, retailers and consumers. At the time of the case, the beef industry was in decline. Growing consumer confidence in the negative effects of red meat on health, alongside the increase in stocks of products supplied by Canada and Mexico following the North American Free Trade Agreement (NAFTA), caused prices to fall in the consumer market (Mohr,. 1999) As a result, ranchers found their finished products had less monetary value, while their feed and drug inputs remained the same or increased. Another factor contributing to the decline in profit margins for beef producers was. the overall consistency and quality of the meat. Products such as pork and chicken were beginning to be packaged by Tyson and Perdue as ready-to-eat meals (Mohr, 1999).