Marketing Management Report GSK

8/10/2019 Marketing Management Report GSK

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DO MORE | FEEL BETTER | LIVE LONG

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.

DO MORE | FEELBETTER | LIVE LONGER

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/

Marketing Management Report GSK

Documents

Transcript of Marketing Management Report GSK