marketing management report gsk
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8/10/2019 Marketing Management Report GSK
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Contents
Summary........................................................................................................................ 3
GlaxoSmithKline............................................................................................................ 4
Big Pharma .................................................................................................................... 4
GSK Pakistan ................................................................................................................ 5
Pakistan Pharmaceutical Industry............................................................................... 6
Our Mission................................................................................................................... 7
Our Values ..................................................................................................................... 7
Competitor Review....................................................................................................... 8
The Value Delivery Process...................................................................................... 10
Customer Perceived Value (CPV)............................................................................ 11
GSK Brand Promise................................................................................................... 11
Value Exploration ........................................................................................................ 12
Value Creation............................................................................................................. 13
Quality Management System (QMS)..................................................................... 14
Value Delivery............................................................................................................. 14
Challenges faced in Delivering Value....................................................................... 16
Recommendations ...................................................................................................... 17
References.................................................................................................................. 18
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Summary
GSK is a customer-oriented company and it has always worked for the betterment and
healthy life of the individuals. The goals of GSK have remained clear which has given it
as a competitive advantage in the market. The departments at the GSK always look for
the opportunities and create superior value based on the needs of the market. The
value delivered at GSK goes through a dense process Quality management system so
that the promise of Quality always remains intact. This promise of the company has
made it to achieve the heights of the success and customer satisfaction.
Some portfolios of the GSK are very high priced due to the costs of manufacturing,
research and intensive labor needed for it but according to our study and interviews, we
have come to know that it has become difficult for most the patients to afford it. The
increasing market of local pharmaceutical companies has become a great threat to the
market share of GSK in the rural areas and it needs to widen its focal range to protect
its market.
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GlaxoSmithKline
GlaxoSmithKline, a British pharmaceutical, biological, and healthcare company, is the
world's fourth largest pharmaceutical company (by revenue) after Johnson & Johnson,
Pfizer, and Roche. GSK was formed in 2000 by the merger of Glaxo Welcome plc with
SmithKline Beecham plc, and today markets a wide range of pharmaceutical products
(anti-invectives, vaccines, central nervous system, respiratory, gastro-
intestinal/metabolic and oncology drugs), healthcare products, nutritional drinks, and
over-the-counter medicines. The companies have grown organically and by a complex
series of mergers and takeovers, but Glaxo started as a baby food manufacturer in
1904 and Beechams with laxative pills in 1843.
Big Pharma
Drugs are the mainstay of modern medicine, and the pharmaceutical industry employs
legions of entirely reputable scientists to improve the range and effectiveness of its
many thousands of products. The industry has an unattractive public image, however,
and the list of its alleged sins is a long one. Big pharma is accused of exerting
excessive lobbying power of a 'revolving door' association with the FDA, of colluding
with psychiatrist to invent disorders, of keeping prices unreasonably high by preventing
Medicare buying at bulk discounts, of preventing US citizens from purchasing at
Canadian prices, of preventing licenses lapsing by insignificant patent modification, of
accepting heavy fines for malpractice as part of business, of promoting favorable
articles in academic journals, of buying influence among doctors, hospitals and researchlaboratories and of confusing the public generally. Supporters of the FDA do not deny
its close association with pharmaceutical companies, or its war on natural health food
and product claims, but argue that the authority does its best with a near-impossible
agenda.
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GSK Pakistan
As a leading international pharmaceutical company we make a real difference to global
healthcare and specifically to the developing world. We believe this is both an ethical
imperative and key to business success. Companies that respond sensitively and with
commitment by changing their business practices to address such challenges will be the
leaders of the future. GSK Pakistan operates mainly in two industry segments:
Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-the-
counter- medicines, oral care and nutritional care).
GSK Pakistan leads the industry in value, volume and prescription market shares, andwe are committed to our mission of providing patients quality products to help improve
the quality of their lives. Some of our leading pharmaceutical brands include Augmentin,
Seretide, Amoxil, Velosef, Zantac and Calpol and renowned consumer healthcare
brands, which include Panadol, Horlicks, Aquafresh, Macleans and ENO.
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Pakistan Pharmaceutical
Industry
Today Pakistan has about 400 pharmaceutical manufacturing units including those
operated by 25 multinationals present in the country. The Pakistan Pharmaceutical
Industry meets around 70% of the country's demand of Finished Medicine. The
domestic pharma market, in term of share market is almost evenly divided between the
Nationals and the Multinationals.
The National pharma industry has shown a progressive growth over the years,
particularly over the last one decade. The industry has invested substantially to upgrade
itself in the last few years and today the majority industry is following Good
Manufacturing Practices (GMP), in accordance with the domestic as well as
international Guidance. Currently the industry has the capacity to manufacture a variety
of product ranging from simple pills to sophisticated Biotech, Oncology and Value
Added Generic compounds.
The Pakistan pharma industry is relatively young in the international markets with anexport turnover of over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of
quality producers and many units are approved by regulatory authorities all over the
world. Like domestic market the sales in international market have gone almost double
during last five years. The pharma industry is focusing to an Export Vision of USD 500
Million by 2013. In the meantime, exports are also likely to be boosted by new regional
and global opportunities.
The Pakistan Pharmaceutical Industry is a success story, providing high qualityessential drugs at affordable prices to Millions. Technologically, strong and self reliant
National Pharmaceutical Industry is not only playing a key role in promoting and
sustaining development in the vital field of medicine within the country, but is also well
set to take on the international markets.
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Our MissionGlaxoSmithKline one of the world's leading research-based pharmaceutical andhealthcare companies is committed to improving the quality of human life by enabling
people to do more, feel better and live longer.
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Our ValuesGSK values are deeply embedded in every function, across the globe. Strategic
development, operations, and customer engagement are based on our values of
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Competitor ReviewThere are approximately 400 pharmaceutical companies in Pakistan including local and
multinational both and we can say that GSK has 400 competitors in the market but from
this whole bunch there are some major competitors who can be truly called as the truecompetitors because they also promise and deliver the superior value to its customers.
1) Sanofi Aventis
Sanofi-aventis Pakistan limited has a strong presence in Pakistan. With over
1000 employees working every day with the commitment to improve health and
wellness across the country, sanofi-aventis Pakistan limited ranks amongst the
top ten pharmaceutical firms in Pakistan and is of great competition to GSK.
Sanofi has a wide range of prevention and treatment solutions to fit the individual
needs of patients. Our decisions and actions are shaped by listening to our
patients: we understand patient needs and then define what we can bring to
them. Not only do we search for more effective and safer solutions to improve
human health, but also for more affordable and cost- effective therapies to which
a greater number of patients will have access. Some of the products include:
Amaryl, Flagyl, Nasaqort, Stilnox, Telfast
2) Pfizer
It has been working in Pakistan since 1961. At Pfizer Pakistan, we provide
access to safe, innovative and affordable medicines to millions of Pakistanis.
Having a portfolio of medicines that prevent, treat and cure diseases across a
range of therapeutic areas allows Pfizer Pakistan to enjoy the reputation of being
a leading drug maker in the country. Few of the products include:
Accupril, Carpsol, Corex cough syrup, Entox, Ponstan
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3) Abbott
Abbott started operations in Pakistan as a marketing affiliate in 1948; the
company has steadily expanded to comprise a work force of over 1500
employees. Currently two manufacturing facilities located at Landhi and Korangi
in Karachi continue to use innovative technology to produce top qualitypharmaceutical products.Few products include:
Arinac, Brufen, Cofcol, Froben, Surbex
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The Value Delivery Process
The increasing number of products in the market has increased the competition for
companies to sell the products and has also affected the customers decisions. In the
market of huge variety of products today, a company needs to deliver the super ior
valuein order to capture the maximum possible market share.
GSK has been successful in providing the superior value to its customers. GSK mainly
focus on the health and quality of life of customers and has always been on the top of
the list in improving the lives of the customers.
GSKs commitment to the purpose of improving the lives of billions ensures that all theirefforts, be it research, manufacturing or distribution are geared towards improving
patient access to quality health solutions.
Figure 1.1
GSK doesnt follow the tradition value delivery process in which companies make the
product by giving it a shape, design and style and sell the product to the market. GSK is
customer-centered company and it works for the needs of the customers and use their
potential to make the human life better than yesterday. The above Figure 1.1 can be
well used as the reference of delivery process that is followed by the GSK.
As quoted by the Mr. Khurram Amjad, Category Brand Manager
Company creates value for i ts customers keeping the Quality at the heart of
organization
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Customer Perceived Value (CPV)
CPV is the difference between what the customer gets and what the customer gives in
return. Customers always look for the more satisfaction
and value than what they pay for the product. In the case
of Pharmaceutical Companies, Its very challenging to
deliver to the mark of customers perceived value because
they pay for the product that can give them healthy and
disease free life.
GSK has continuously researched and explored for the
products that might help to make lives better than
yesterday and that promise to the customers has given it a
reputation of Pakistans Market leader in providing quality
health solution. GSK has always believed in providing
superior value to customers than their competitors and it
has been to some extent successful in keeping their
promise
The Category Brand Manager of GSK Pakistan believes
that they deliver superior value by:
Starting with the choosing customer value need, Company tries to come up with
the differentiated/research product so that it can gain the first mover advantage.Once the product is in the market, company tries to position it as a product with
new formulation that has more efficacy than any other product or in other words
i t focuses on qual i ty . So in simp le wo rds i t can be said that the strategy is to
focus on the companys name i.e. GSK as the name says it all already. The
com pany has po si t ioned i tsel f on th e qual ity and that gives comp any edge over
competitors
GSK doesnt charge low prices to get the edge over its customers or we can say that it
cannot charge low price for its products to work with CPV, because of the huge costs
involved in factors of production, research and marketing.
GSK Brand PromiseThe only brand promise from the company side is QUALITY.
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The Holistic Marketing Concept
for capturing customer value
This is framework that is kept in mind by brand managers when they work on capturing
customer value.
Value Exploration
Value exploration is the strategy by which a company identifies new value opportunities.
Value exploration is the difficult part of the process. A company needs to have an open
eye in all direction to look for opportunities and needs of the customer.
GSK is a pharmaceutical company and its main objective has always been to provide
best consumer health related products. GlaxoSmithKline Pakistan proudly launched 5
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new products in the year 2011. All these Products satisfy specific patient needs and
tremendous time and effort has been devoted in Ensuring maximization of opportunity
and provision of patient benefit.
These products developed in 2011 were based on the needs of patients and increasing
ratio of diseases led the development of these medicines to cure the disease with thequality GSK product.
Skills and capacity of Research and development (R&D) department and effective
observation in the customers cognitive space has made it possible for GSK to explore
the value effectively and deliver the products of their promise.
Value Creation
Every company has its own strategies to create value. But there are some basic
ingredients that need to be followed. Every company tries to create best value for its
customers but the one who uses its core competencies and achieve competitive
advantage over other brands, is the real winner. GSK has been successful up to now in
creating superior value for customers. It is less likely that any GSK product is distributed
in market without the thorough research of its side effects and curing capability. GSK
products have been on the top that are consumed without doctors prescription. The
Brand name has created an effective impact on the patients mind that whenever they
face such pain, disease or illness; they take the same GSK product that they consumedpreviously.
To maintain the quality of the products and create the value for its product at top level,
GSK uses the Quality Management System (QMS).
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Quality Management System (QMS)Through technical and p ersonal mastery of al l our pro cesses and systems w ewi l l , by f i rst intent, conf ident ly del iver :
The r ight produc ts to pat ients and custom ers at the r ight t ime and co st
Our Focus is on:
Quality FoundationProduct focus for patient benefit
Quality PeopleDeveloping our people
Quality FutureBuilding future capability
Technical and R&D Interfaces
Emerging Markets and Acquisitions
Empowerment and Leadership
Compliance
Efficiency and Capability
Value DeliveryThe task is not over at the value exploration and
creation for a company. But the real job starts after
it. Proper communication with the customer is
mandatory for the success of the brands.
In the case of pharmaceutical industry, the primary
target market is doctors and company creates its
marketing strategy for keeping doctors in mind and when the product is being made,
patient is the main focus. Naturally, the relationship of the doctors (the primary target
market) with the GSK is very strong and company has always tried to keep this bond
alive. The GSK brand managers comment on brands value delivery is:
The industry is very comp l icated and sensi t ive. In this indus try you canno t go to
end users d irect ly , rather you have to reach th em with the help of do ctors
because the pharma indus try is closely regulated by g overnment. The do ctors
(pr imary target market) have more con f idence on GSK d rugs th an any other
drug s in the market which says i t al l . The GSK b rands have always been more
than customer expectation
The representatives who communicate with the doctors on the behalf of the company
are very well trained to create and maintain relationship with doctors.
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THE COMPANY CULTURE - PEOPLE,
RESOURCES OR OPERATIONAL PHILOSOPHY
GSK fosters a dynamic learning culture, which thrives on innovation and flexibility. Wedo this so that we can provide the best customer-centric health solutions by adapting tothe changing needs of the healthcare market. Therefore, our work is embodied by sixbehaviors:
Flexible thinkingWe explore multiple options for problem-solving.
Enable and drive change
Our ideas are executed to realize benefit for customers and business growth.
Continuous improvementWe not only excel in what we do, but find innovative improvements to current practices .
Customer drivenOur philosophy of improving the lives of billions of people is at the heart of everythingwe do.
Developing peopleEmpowered employees take initiatives and provide creative solutions to challenges.
Building relationshipsTrust and openness inculcated in everything we do. It helps us to foster long-lastingpartnerships.
Philosophy:
Al l of the GSK brands go through r ig id process of qual ity cont ro l . Once product
is ready to b e sent to the market, i t is responsib i l i ty of respect ive brand m anager
to ensu re that the produ ct is going to del iver the qual ity i t has prom ised.
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Challenges faced in Delivering
Value
There are a number of challenges faced by the GSK nowadays in delivering value in
Pakistan. The increasing number of local pharmaceutical companies in the market has
violated the quality of the products and standard system by offering a percentage as a
commission to doctors on the sale of their products. This has affected somehow the
fluency of GSK and other multinational pharmaceuticals to deliver the value at their
great level. When I asked my Uncle who is a doctor in my village. He Said
If you want to run y our cl inic and p rovide best cure to your pat ients, you need
to prescribe the medicines from GSK.
This statement shows the confidence of the doctors on the products of GSK.
It has been also a challenge that duplicate products are being sold in the market with
the name of GSK which are obviously are not of same quality and standards.
Eventually, this kind of illegal activity is hurting the trust and loyalty of doctors in GSK.
The security of patent is also an issue that has become an issue for the company to get
the most out of the innovation of their Research and Development (R&D) department.
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Recommendations
After looking at the value exploration, creation and delivery of GSK, we want to make
some recommendations on our own judgment and study that:
Prices of the GSK products especially drugs should not be higher that low level
class people might not be able to afford it.
GSK should focus more on the research of the drugs for the most prevailing
diseases in Pakistan like Dengue, Malaria, Measles etc)
The increasing competition generated by the local pharmaceutical companieshas decreased the prescription rate of GSK in the rural areas to some extent. It
needs to focus more on this issue as rural area is a huge market for
pharmaceuticals.
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References
Interview with Khurranm Amjad, GSK Category Brand Manager
www.gsk.com.pk
GSK Annual Report 2011
http://www.gsk.com.pk/http://www.gsk.com.pk/http://www.gsk.com.pk/
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