Zantac

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Zantac

  1. 1. ZANTAC Università 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
  2. 2. 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
  3. 3. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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.
  4. 4. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  5. 5. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  6. 6. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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 TOTAL DAILY DOSAGE 300 mg NR. OF ADMINISTRATION PER DAY firstly 2 – secondly 1 TREATMENT LENGHT 4 weeks EFFICACY 80% of patients healed after 4 weeks SIDE EFFECT no seriuos side effect have been reported DRUG INTERACTION no clinically significant interactions have been reported
  7. 7. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  8. 8. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 SWOT ANALYSIS
  9. 9. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 OUR KEY DECISIONS 1/2  large budget for marketing strategy;  rapid implementation of product with global launch  much larger number of sales representatives and better trained (more knowledgeable) than competitors;  more frequent and multiple sales representative visits to general practioners (= doctors, major client segment);  a strong and pervasive advertising campaign thanks to which it passed the idea that Zantac was FASTER, SIMPLER and SAFER;
  10. 10. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 ADVERTISING FASTER SIMPLER SAFER
  11. 11.  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 Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012
  12. 12. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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;
  13. 13. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 Thanks to our key decisions and Smithkline’s mistakes …
  14. 14. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  15. 15. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  16. 16. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 Focusing on LOSEC COMPANY 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” TOTAL DAILY DOSAGE 40 mg NR. OF ADMINISTRATION PER DAY 1 a day TREATMENT LENGHT 2 to 4 weeks EFFICACY 92% of patients healed after 4 weeks SIDE EFFECT no serious side effect have been reported DRUG INTERACTION no clinically significant interactions have been reported
  17. 17. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012  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
  18. 18. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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.
  19. 19. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  20. 20. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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
  21. 21. RECOMANDATIONS’ PILLS CREATE COLLABORATE COMPETE TO SERVE CLIENTS Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012
  22. 22. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 1. Put marketing strategy first: give Marketing Director profit and loss responsibility; establish cross department 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 …
  23. 23. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 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 …
  24. 24. Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012 Thanks for your attention

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