Zantac

ZANTACUniversità della Svizzera Italiana

AY: 2011/2012

Class: Strategic Marketing

Professor: Andres Hinterhuber

Abasoglu Dogan

Castelli Matteo

Javadinia Azari Morteza

Kalipcilar Gizem

Liechti Audrey Pauline

Monahan Jane Therese

Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012

Glaxo: Do More

Feel Better

Live Longer

Collaboration with others in

industry, academia, government and non-

governmental organisations and healthcare in

general is fundamental to our strategic

priorities of growing a diversified global

business and delivering more products of

value.OUR

CORPORATE INDENTITY


GASTROINTESTINAL

TREATMENT

Our commitment is to helping physicians treat and cure all

gastro-intestinal complaints and diseases.

Providing pain relief and recovery to their patients is due

to our superior research and development of gastro-

intestinal treatment alternatives and cures.

Our investment is in education and outreach to physicians,

hospitals and patients.

Our global cooperative sales network and technical support

system are for individual doctors and hospitals which is

unmatched by any other pharmaceutical company.


BRIEF

HISTORICAL

REVIEW

1976

1981

1982

1983

1984

1986

1989

After have made some chemical

research and clinical trials ZANTAC

was ready to be launch all over

the world.

During these four years Glaxo launch ZANTAC

in the world-wide market: in UK, Italy,

Germany, U.S.A., France and Japan. Our

strategy was base on a large number of sales

representatives and collaboration with other

pharmaceutical companies.

Approval for simplification of the dosage (one-a-day) and

Zantac’s overtakes Tagamet in terms of global sales and

becomes the best-selling pharmaceutical product in the

world.

Entrance of new competitors in the global market for antiulcerant

drugs


TAGAMET: the main

competitor

COMPANY SMITHKLINE

PRODUCT PRESENTATION green tablets : 200 mg, 300 mg, 400 mg

APPROVED MAIN INDICATIONS acute and manteinance treatment of

peptic ulcers; acute treatment of reflux

TOTAL DAILY DOSAGE 1000 mg

NR. OF ADMINISTRATION PER DAY firstly 4 – secondly 1

TREATMENT LENGHT 4 to 6 weeks

EFFICACY 80% of patients healed after 6 weeks

SIDE EFFECT breast swelling in males (sexual

dysfunction), reversible liver damage

DRUG INTERACTION mental confusion in the elderly


ZANTAC: the new drug

against ulcers COMPANY GLAXO

PRODUCT PRESENTATION white tablet: 150 mg

APPROVED MAIN INDICATIONS acute and manteinance treatment of

peptic ulcers; acute treatment of reflux


NR. OF ADMINISTRATION PER DAY firstly 2 – secondly 1

TREATMENT LENGHT 4 weeks


SIDE EFFECT no seriuos side effect have been

reported

DRUG INTERACTION no clinically significant interactions

have been reported


Why Zantac is better

than Tagamet?more convenient dosage schedule

superior drug interaction profile

responding very well to ulcer

treatment

satisfied costumer need

higher price means higher quality

60% of marketing budget was direct

to sales force representatives


SWOT

ANALYSIS


OUR KEY DECISIONS

1/2 large budget for marketing strategy;

rapid implementation of product with global launch

much larger number of sales representatives and bettertrained (more knowledgeable) than competitors;

more frequent and multiple sales representative visits togeneral practioners (= doctors, major client segment);

a strong and pervasive advertising campaign thanks towhich it passed the idea that Zantac was FASTER, SIMPLERand SAFER;


ADVERTISING

FASTER

SIMPLER

SAFER

co-marketing arrangements and collaboration with other

pharmaceutical companies (complementors);

promotion of product with gastrointestinal specialist and

hospitals through conferences and other advertising;

good brand management (focusing on Zantac’s strengths

and Tagamet’s weaknesses;

took advantage of price inelasticity with price premium

that became associated with superior product;

OUR KEY DECISIONS

2/2



Smith Kline’s

mistakes … they did not take Zantac seriously;

never establish any brand loyalty;

they did not have a plan to deal with side effects;

did not exploit improvements in dosage;

Egocentric defence: relied on own history and did not

focus in client needs for information;

did not allocate enough budget to promotion;

confused own costumers (new dosage) with poor

communication;

advertised arrival of Zantac to its own customers;


Thanks to our key decisions and

Smithkline’s mistakes …


Power factors for our success

improvement over the first competitor, Tagamet

customer satisfaction

customer awareness

product benefits

penetrative distribution

a huge advertising campaign

direct and convincing sale to doctors

- real effectiveness

- short treatment cycle

- no side effect

- correct dosage schedule


NEW COMPETITORS

1. PEPCID: Japan company, Yamanouchi;

Price: 10% below Zantac

2. AXID: US company, Eli Lilly

Price: 10% bellow Zantac

3. LOSEC: Swedish company, Astra


Focusing on

LOSECCOMPANY Astra (Swedish company)

PRODUCT PRESENTATION pink-brown gelatine 20 mg

APPROVED MAIN INDICATIONS acute and maintenance treatment of

peptic ulcers; acute treatment of

reflux; “refractory ulcers”


NR. OF ADMINISTRATION PER DAY 1 a day

TREATMENT LENGHT 2 to 4 weeks


SIDE EFFECT no serious side effect have been

reported

DRUG INTERACTION no clinically significant interactions

have been reported


new class of drug

faster healing rate for peptic ulcer in short term

more powerful and longer duration than ZANTAC

faster paint relief

treatment also for refractory ulcers

superior treatment for reflux

better dosage schedule

no side effects

Why LOSEC?STRENGHTS


For maintaining and

prevent our leadership …

1. Glaxo should take competitions from Losec seriously

because of his strengths.

2. We should make sure not to fall into trap of interntia.

3. Need to stay proactive and visionary.

4. We need to expand brand beyond Zantac to the

treatment of gastrointestinal disease and the entire

treatment spectrum from heart burn to reflux ulcers.


Five forces analysis

Environmental factors Attractive/unattractive

Threat of new entrance low due to barriers to entry

(approvals and patents)

Threat of substitutes medium to high

Bargaining power of suppliers none

Bargaining power of buyers overall low

Degree of rivalry medium to high


Industry is

attractive

Growth is projected at 15% for next 4 years:

65% for acute disease

30% maintenance treatment

5% peptic ulcers with prescription of other drugs

0

0.5

1

1.5

2

2.5

1990 1991 1992 1993

GI Treatment (Zantac +)

Other Glaxo Products

Total Glaxo Sales

RECOMANDATIONS’ PILLS

CREATE

COLLABORATE

COMPETE

TO SERVE CLIENTS



1. Put marketing strategy first: give Marketing Director

profit and loss responsibility; establish crossdepartment collaboration with R&D and operations.

2. Focus on treatment area of gastrointestinal disease

not just selling Zantac. Establish complementary

relationships with over the counter and other

prescription drugs in this treatment area and/or

acquire companies that do so.

3. Maintain and enhance model for sales

representatives through linking increased revenue to

specific sales effort. Continue co-marketing with

complementary treatment areas and drugs.

RECOMANDATIONS …


4. Make corporate commitment to public awareness

and education regarding gastrointestinal disease and

treatments (male charitable contributions, sponsor

events, conferences). This includes anti-smoking

campaigns as this is a risk factor for GI disease.

5. Further develop market potential: focus on aging

populations and smokers. Establish local management

to begin working with doctors, hospitals, insurance

companies, health care industry and regulators to

understand specific gastrointestinal disease and

treatment issues markets.

6. Expand product range: acquire or collaborate with

over the counter and prescription drug treatments.

RECOMANDATIONS …


Thanks for your

attention

Zantac

Business

Transcript of Zantac