Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Marketing Strategy- GSK

No description
by

Amal Nazzal

on 29 November 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Marketing Strategy- GSK

Marketing Strategy Agenda GSK at a Glance Amal - Palestine Fanny - China Lili - China Dongping - China Xiangquan - China Rita - Taiwan GlaxoSmithKline 29th November 2012 GSK Do More
Feel better &
live longer 1715 Plough Court Pharmacy
John K Smith opens
his first drugstore 1830 Mahlon Kline joins
Smith & Shoemaker 1865 Glaxo trademark
is registered 1906 SmithKline Beckman Beecham Group 1989 Glaxo Wellcome 1995 2000 Where GSK Stands Globally and Locally ? Macro-environment
Analysis • Pharmaceutical Price Regulation Scheme

• An integrated national pharmaceutical policy Political / Legal +2 Economic - 1 potential opportunity mild threat • GDP in volume terms:-0.3% (Q1), -0.4% (Q2), 2012

• CPI: 2.5% (August. 2012)

• Household final consumption
expenditure: -0.2% (Q2), 2012 Product Innovation

Customer Healthcare research

Customized Treatments

Direct to Patient Advertising Technological +2 potential opportunity Social / Cultural +4 Growing aging problem
( By 2035, age 65: 23%
of total population)

Growing Obesity problem: By 2025, about
47% of men and 36% of women will be obese

GPs are increasingly recommending OTC products to their patients

High trend to Self-care and medication Sustainable trend
Carbon footprint
Limited raw materials
Growing environmental agenda & Community awareness Environmental -2 mild to moderate threat Strong opportunity Micro-environment
Analysis Threat of new entry +2 Bargaining Power of Suppliers +4 Bargaining Power of Buyers +2 Prescription Medicines Prescribed Vaccines Consumer Healthcare Products - OTC Infections
Depression
Skin conditions
Asthma
Heart
Circulatory disease and cancer Highly Regulated To prevent potentially life-threatening or crippling illnesses:

Hepatitis A Bacterial meningitis
Hepatitis B Influenza
Diphtheria Polio
Tetanus Rubella
Woophing cough
Mumps Doctor! GSK Do More
Feel better &
live longer Dental health products
Over-the-counter medicines
Nutritional drinks 4 Dedicated consumer healthcare R&D centres + Consumer healthcare regulatory affairs = Scientific Innovation and Marketing Excellence Leading-edge capabilituality and High Quality products We are going to present
the Marketing Strategy
of this part OTC Pharmaceutical Market Trends The United Kingdom OTC pharmaceuticals market
grew by 2.4% in 2010 to reach a value of $4.6 billion In 2015 the United Kingdom OTC pharmaceuticals market
is forecast to have a value of $5.1 billion, an increase of
11.9% since 2010 Market Value Market Value Forecast Market Rivalry MarketLine Industry Profile- OTC Pharmaceuticals in the UK, Feb 2012 Three players holding 30.8% of the total market by value GSK Growing political focus and pressure on health care Oligopoly Buyer Independence +5 Tendency to Switch +4 Undifferentiated Products +4 Buyer Size +3

Financial Muscle +3

Low – cost switching +3 Suppliers to the OTC pharamaceutical market are (APIs) Active Pharmaceutical Ingredients Importance of quality/cost +5 No substitute inputs +5 Switching Costs +4 Player Independence +4 Oligopoly threat +3

Differentiated Input +3 Undifferentiated Product +4 Suppliers accessible +4 Distribution Accessible +3 High entry cost, Investment in R&D +4 High level of specialization and expertise +4 Number of Palyers +4

Undifferentiated Product +4

Low Fixed Cost +3

Lack of Diversity +3

Competitor Size +4 Threat of Rivalry +4 Threat of Substitutes +1 Beneficial Alternative +3

Low Cost Switching +3

Cheap Alternative +1 The Internal Environment Analysis GSK is the world's fourth-largest pharmaceutical company measured by The United Kingdom accounts for 9.9% of the European OTC pharmaceuticals market value. • Increase in illnesses related to aging and
obesityproblems
• GPs are keen to recommend OTC products
• long-term growth in OTC marketHigh Household expenditure on medical products 1.2 pound weekly OPPORTUNITIES
• Recession and Government spending cuts

• Regulatory controls on pharmaceutical
product price and Gov. restrictions

• Fierce Competitions Threats STRENGHTS • Significant R&D capabilities
• High market share of the cough and cold 40%
• The 3rd player in the UK OTC
pharmaceutical market WEAKNESSES • Illegal practises from GSK (Brand)
• Lack of competitive products in the largest segment of OTC
pharmaceuticals market in UK. (cough and cold) Cost Leadership Price SO WO ST WT Differentiation Strategy Differentiate our products by using integrated marketing Going Creative and Innovative in product designs and marketing channels Lowering prices - Sales Promotion BCG Matrix ? Business Growth Rate Market Share TOWS Analysis Strenghts Weaknesses Opportunities Threats - Significant R&D capabilities
- High market share of the cough and cold 40%
- The 3rd player in the UK OTC
pharmaceutical market
- Good Financial position - Recession and Government spending cuts
- Regulatory controls on pharmaceutical
product price and Gov. restrictions
- Fierce Competitions - Increase in illnesses related to aging and
obesity problems
- GPs and Pharmacists are keen to recommend OTC products
- long-term growth in OTC market and current steady market - Potential to expand business in emerging market - Pharmaceutical industry is very complex and dynamic Where GSK stands Globally ? Porter's Generic Five Forces Threat of Rivalry +4 Bargaining Power
of Suppliers +4 - Public concerns for Illegal practises from GSK (Brand)
- Lack of competitive products in the largest segment of OTC
pharmaceuticals market in UK
- Sudden decline in Sales- Fire some employees Market Penetration Product Developemnt Distribution Channels
Retailers Partnership
Universities Health Centers
Increase Accessibility
GP's partnership Develop new needed pharmaceutical products ( aging and obesity)
Develop the existing pharmaceutical products to a specific segments The ‘Best Strategic Fit Analysis Differentiation Product Development Market Penetration Cost Leadership GSK is 3rd player in the UK OTC pharmaceutical market
One of the best 100 companies in "working mother magazine"
GSK has its offices in over 100 countries
High qualified Research centers
GSK recorded the highest company investing in R&D by £ 3,629 m
GSK has a large global presence, employing over 99,000 people worldwide in over 115 countries.

GSK has a 7% share of the worldwide pharmaceutical market. Most consumers view OTC pharmaceuticals as a necessity
Even in recession industry remains fairly static
63.1% purchasing branded cold and cough remedies
Quality may be affected by price decrease - Health concerns
Public concerns for Illegal practises from GSK World's leading research-based pharmaceutical and healthcare companies, 3,626 million
New opportunities for product development
Consumer want to see variety in the OTC pharmaceutical products
Increasing market share through serving new segments An Excellent brand Image The convenience of OTC medicines was more important to consumers to choose (41.7%)
Askeing a pharmacists for advice about OTC products to recommend (47.7%)
Younger age groups were likely to use contemporary method, like Internet
Wholesalers provide 90% of the UK’s medicines OTC Phar. Distribustion 55.5% Pharmacies / drugstores and 31.4% Supermarkets / hypermarkets Pharmaceuticals Turover: £18.7bn Vaccines Turnover: £3.5bn Consumer Healthcare Turnover: £5.2bn 68% 13% 19% Market Share Business Growth Rate Mid High Mid Position 1 Position 2 Cold and Cough Market Behavioural-Demograchic Segmentation Heavy users (30%) Take drugs three or more times a day Medium users (32%) Take drugs twice a day Light users (22%) Take drugs once a day or less None (16%) Suffer from colds and flu without taking any drugs Usage of OTC Cold and Flu Age: 19% heavy users are aged between 35 and 54
Social grade: 42% users are classified into AB C1 grade
Working status: 37% users have full-time jobs Age: 18% aged between 15 and 24
Social grade: 21% from grade C2 grade
Working status: 37% - part-time Age: 21% aged 65+ and 19% between 15 and 24
Social grade: 23% from grade E grade
Working status: 39% are not working Age: 26% people aged between 15 and 24
Social grade: 22% from grade AB grade
Working status: 37% part-time job Target the most attractive segments 62% of the potential customers Perceptual Mapping Competitor Analysis Reckitt Benckiser Group Plc Glaxosmithkline Johnson & Johnson £2.69 £2.79 £1.79 Factor Rating Package Environmental Side effect Efficiency
of product Total 3 5 4 3 3.6 0.1 0.2 0.2 0.5 Beechams 0.3 1 0.8 1.5 Lemsip 4 5 4 4 0.4 1 0.8 2 4.2 Benylin 2 3 3 3 0.2 0.6 0.6 1.5 2.9 Quality Price Price Quality Beecham Lemsip Benylin 2.69 3.6 2.79 4.2 1.79 2.9 1.79 2.69 2.79 2.9 3.6 4.2 Beecham The New position NOW Max Beecham High Price
High Quality Market Penetration Strategy

Increase Market Share Benylin Lemsip GSK has 22 locations in the UK, employing 16,000 people. GlaxoSmithKline (GSK) is the largest pharmaceutical
company in the UK by value Where GSK stands in the UK Market ? 2009 prescription drug sales (after Pfizer, Novartis, and Sanofi) Macro-environment Analysis Micro-environment Analysis / Porter's Generic Five Forces The Internal Environment SWOT Analysis / TWOS Analysis / Best Fit Strategy Analysis BCG Matrix Ansoff Matrix Market Penetration Product Developmet New Product Current Product New Market Current Market Distribution Channels
Retailers Partnership
Universities Health Centers
GP's Partnership Increase Accessibility Develop Products to target new segments Market Development Diversification Product Development Segment attractiveness Analysis
Segment profitability 6
Segment size 6
Competitive intensity within the segment 7
Cyclical nature of the industry 5 18.8% of the UK market's total value Consumer spending on cold and cough equals 44% 11.9% market growth forecast in 2015 62% is the segment size 40% of the cold and cough market share for GSK Market growth 7 31/50 Total Heavy users (30%) Medium users (32%) Age: Aged between 35 and 54
Social grade: Classified into AB C1 grade
Working status: Full-time jobs Age: Aged between 15 and 24
Social grade: Classified in C2 grade
Working status: Part-time Positioning- Be the first brand to REMEMBER if you get cold and cough Marketing Mix 1 Marketing Mix 2 Marketing MIX 1 Marketing MIX 2 Marketing MIX Heavy Users Medium Users Product - High quality product with High Efficiency - More pills in an attractive package/ easy to swallow - Existing products: keep quality improvements
- Attributes: healthier/ more efficient Price Competitive Pricing 4 Same Pricing £ Place - Retailers: supermarkets and pharmacies
- Vending Machines near (companies, organizations ,
train station, airport)
- Oline Paltform - Retailers: supermarkets and pharmacies
- Universities' clinic centers
- Vending Machine (accommodation)
- Online Platform Promotion - TV & Radio Ads (efficiency, accessible, healty concepts)
- Retailers and GP's Partnership - Push advertisement
- Applying CRM with B2B
- CSR campaigns - TV & Radio Ads (efficiency, accessible, healty, stay active)
- Retailers and GP's Partnership
- Applying CRM with B2B
- CSR campaigns User Positioning: Beechams Super Beechams SUPER : Super always outsmart your COLD! "Beechams: Keep your Vitality . End it healthier" Competitor Positioning: Beechams Unique Selling Proposition USP:
Efficiency, Speed to relief, Much pills for less
money, success as proffesionals, stress release Unique Selling Proposition USP:
Active, Vivid, Efficiency, Speed to relief, healthier,
distinguish in studies and work Long-term objective:
By 2018, our company will have increased its share of UK market by10%. It will do so through increasing sales by 18% in our targeted markets. Short-term operational objectives:

- Increasing sales of cold and flu medicines by 10% within 3 years.

- Developing cooperation with universities and higher education institutions.Tapping into 70% of universities and higher education institutions within 3 years.

- Increasing investment of R&D in cold and flu medicines by 5% and reducing production cost by 3% within 3 years. The SMART Objectives - Target 10% of the heavy users market share
to use the new products within 3 years. - Launching 300 vending machines in London - Increase our social responsibility by donating
3% of your profits Implementation & Control Thank You For Your Listening We Hope you all to Do More, Feel Better and Live Longer and Longer Frequency Type of Control Approaches Applications
Annual Annual-plan control Market Share Analysis Sales analysis Whether the market
share/ sales grow as expected Quarterly Profitability control Profitability by :
• Customer
• Trade channel Measure the profitability of target customer
Measure the profitability of different trade channel Efficiency control Efficiency of advertising Evaluate the efficiency of new strategic advertising Quarterly Annual / Long-term Strategic control Marketing audit
Company ethical and CSR Review marketing environment and revise objectives, strategies, and activities Measure the profits generated by investments in new strategic marketing activities Measure of Return on Marketing ROMI Long-term References Aaker, D.A. (2005) Strategic Market Management, Chichester : John Wiley

Armstrong, G, Kotler, P., Harker, M. and Brennan, R. (2009) Marketing: An Introduction, Essex UK: Pearson Education Ltd.

George, BP., Yaoyuneyong, G., (2010), Impulse buying and cognitive dissonance: a study conducted among the spring break student shoppers, Young Consumers: Insight and Ideas for Responsible Marketers, Vol. 11 Iss: 4 pp. 291 -306

Doyle, P (2002) Value-based marketing: marketing strategies for corporate Growth and shareholder Value. Oxford: John wiley and Sons Ltd.

Key Notes (2011), OTC Pharmaceuticals Market Report 2011, 15th EditionLucy Capstick

Kotler, P., Keller, K., Brady, M., Goodman, M., and Hansen, T. (2009) Marketing Management, European Edition, Essex UK: Pearson Education Ltd.

Hooley, Graham J. (2004) Marketing strategy and competitive positioning, Harlow, England: Financial Times/Prentice Hall

MarketLine Industry Profile (2010), “GlaxoSmithKline Plc” (April)

MarketLine Industry Profile (2011), “GlaxoSmithKline Plc” (July)

MarketLine Industry Profile (2012), “GlaxoSmithKline Plc” (October)

MarketLine Industry Profile (2012), “OTC Pharmaceuticals in the United Kingdom” (February)

Mintel (2012), “Oral HealthcareExecutive Summary – UK” Mintel (2012), “OTC Painkillers and Cold and Flu Remedies – UK”

Monika, H., Katrin, D., Rudolf, F., (2012), Which factors drive product sales in OTC markets? International Journal of Pharmaceutical and Healthcare Marketing, Vol. 6 Iss: 4 pp. 291-309

OTC bulletin (2011), “OTC firms focus on new directions”

Tom, W., Alan, E., Alan, H., and Adrian, B. (2000) An integrated national pharmaceutical policy for the United Kingdom? BMJ. 321(7275): 1523–1526.

ASHP Advantage (2008), “Managing Pharmaceutical Waste:A Discussion Guide for Health-System Pharmacists”Available at:
http://www.ashpadvantage.com/docs/PharmaWaste-Discussion-Guide.pdf
[Accessed: 14th October 2012] BBC News (2012), “Economy tracker: GDP” Available at:
http://www.bbc.co.uk/news/10613201
[Accessed: 14th October 2012]

Beechams (2012), “Our Range” Available at:
http://www.beechams.co.uk/our-range/powders/
[Accessed: 2ndNovember 2012]

Department of Health (2011), “Pharmaceutical Price Regulation Scheme” Available at:
http://www.dh.gov.uk/health/category/policy-areas/nhs/medicines-nhs/pprs/
[Accessed: 14th October 2012]

Global Markets & Compainies (2012), “GlaxoSmithKline plc (GSK) - Financial and Strategic Analysis Review” Available at:
http://www.alacrastore.com/acm/2087_sample.pdf
[Accessed: 25th November 2012]

NHS Choices (2011), “Five a day”Available at:
http://www.nhs.uk/LiveWell/5ADAY/Pages/5ADAYhome.aspx
[Accessed: 14th October 2012] NHS National Statistics (2012), “Statistics on Obesity, Physical Activity and Diet: England, 2012” Available at:
http://www.ic.nhs.uk/statistics-and-data-collections/health-and-lifestyles/obesity/statistics-on-obesity-physical-activity-and-diet-england-2012
[Accessed: 14th October 2012]

NHS Choices (2011), “What is selfcare?”Available at:
http://www.nhs.uk/Planners/Yourhealth/Pages/Whatisselfcare.aspx
[Accessed: 14th October 2012]

Office for National Statistics (2012), “Consumer Price Indices, August 2012”Available at:
http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/august-2012/index.html
[Accessed: 14th October 2012]

Office for National Statistics (2012), “Consumer Trends, Q2 2012”Available at:
http://www.ons.gov.uk/ons/rel/consumer-trends/consumer-trends/q2-2012/stb-consumer-trends.html
[Accessed: 14th October 2012]

Office for National Statistics (2012), “Population Ageing in the United Kingdom, its Constituent Countries and the European Union”Available at:
http://www.ons.gov.uk/ons/rel/mortality-ageing/focus-on-older-people/population-ageing-in-the-united-kingdom-and-europe/rpt-age-uk-eu.html
[Accessed: 14th October 2012] Office for National Statistics (2012), “Quarterly National AccountsQ1 2012” Available at:
http://www.ons.gov.uk/ons/rel/naa2/quarterly-national-accounts/q1-2012/stb--quarterly-national-accounts-q1-2012.html
[Accessed: 14th October 2012]

Office for National Statistics (2012), “Quarterly National AccountsQ2 2012” Available at:
http://www.ons.gov.uk/ons/rel/naa2/quarterly-national-accounts/q2-2012/stb-quarterly-national-accounts--q2-2012.html
[Accessed: 14th October 2012]

GSK (2011),“2011 Corporate Responsibility Report” Available at:
http://www.gsk.com/responsibility/responsibility-reports-and-resources.html
[Accessed: 3rd November 2012] GSK (2011), “Annual Report”Available at:
http://www.gsk.com/investors/annual-reports/annual-report.html
[Accessed: 13th October 2012]

GSK (2012), “Consumer Healthcare collaborations”Available at:
http://www.gsk.com/partnerships/business-development/consumer-healthcare-collaborations.html
[Accessed: 13th October 2012]

GSK (2011), “GlaxoSmithKline Inc. Launches $50 Million Life Sciences Innovation Fund in Canada” Available at:
http://www.gsk.ca/english/html/media-centre/2011-11-10.html
[Accessed: 27th October 2012]

GSK (2012), “Consumer Healthcare turnover”Available at:
http://www.gsk.com/content/dam/gsk/globals/documents/pdf/Investors/quarterly-results/2012/Q2-2012-actual-growth-schedules.pdf
[Accessed: 13th October 2012]

GSK (2012), “Consumer healthcare research”Available at:
http://www.gsk.com/research/science-and-innovation/consumer-healthcare-research.html
[Accessed: 14th October 2012]

GSK (2012), “How we do R&D”Available at:
http://www.gsk.com/explore-gsk/how-we-do-r-and-d.html
[Accessed: 13th October 2012] GSK (2012), “Key achievements” Available at:
http://www.gsk.com/uk/about-us/key-achievements.html
[Accessed: 13th October 2012]

GSK (2012), “Our planet” Available at:
http://www.gsk.com/responsibility/our-planet.html
[Accessed: 14th October 2012]

GSK (2012), “Products” Available at:
http://www.gsk.com/products.html
[Accessed: 13th October 2012] GSK (2011), “Reports & publications” Available at:
http://www.gsk.com/reports-and-publications.html
[Accessed: 26th November 2012]

Scinovo (2012), Available at:
http://www.scinovogsk.com/
[Accessed: 27th October 2012]

Silvia Rossi (2012), Manufacturer-Retailer Relationship for Sustainability” Available at:
http://www.som.cranfield.ac.uk/som/p17150/Programmes-and-Executive-Development/Doctorates/Doctoral-Opportunities/The-Cranfield-Doctorates-Cranfield-School-of-Management-PhD-Opportunities/Manufacturer-Retailer-Relationship-for-Sustainability
[Accessed: 10th November 2012]

SR One (2012), “About us” Available at:
http://www.srone.com/AboutUs.aspx?pid=2&id=4
[Accessed: 27th October 2012] Conclusions
- GP and Pharmacists are taking a very crucial role which OTC companies has to embed
it in their strategies
- Social Trend towards Self- Medication
- Convenient and accessibility are important factors when it comes to cold and flu Environmental Scanning Strategic Thinking on - Developing products and penetrate the existing products in the market - Integrated the USP for each target in the Communication tools/ Integrated Marketing
- Increase the accessibility and convenience of the products By delivering Limitations Specific data on cold and cough segement
Limited on the local market - UK
Limited time of the research Recommendations Beechams SUPER GSK Vending Machine Go backward integration (supplier)
Focus on Corporate Social Responsibility
Keep on empowering GSK brand Segmentation/ Targeting and Positioning Perceptual Mapping SMART Objectives Marketing Mix Implementation & Control Conclusion Recommendations and Limitations References Trend Factor Implication Evaluation Physical
Resources Human
Resources Financial
Resources Intangible
Resources +4 major
strength + 3 significant
strength +1 minor
strength + 2 significant
strength GSK has 13 R&D centres across UK, USA& Canada, Europe and Asia.
GSK has a wide geographical reach, with offices in more than 115 countries and an extensive manufacturing network with around 70 sites globally Expert R&D Centres GSK has 22 locations in the UK Employing 16,000 people Experts and professionals GSK’s scientists are external-facing, publishing and presenting key scientific findings and developing relationships with academia and external technology centres of excellence. GSK puts emphasis on building partnerships and collaborations with different organisations to gain more talented people. Cough and cold preparations (18.8%) and analgesics (17.5%) are the largest segments of the OTC pharmaceuticals market in the United Kingdom Copy rights - Patents Brand equity 3rd player in the UK OTC pharmaceutical market Panadol is one of the world's leading
Many other comeptitive brands as (Beechams) High Cash Flow and Assests Sells a lot of well-known consumer healthcare products that leads to strong consumer awareness 3.6
Full transcript