The document discusses opportunities and challenges for GSK's marketing strategy due to various political, economic, social and technological factors. It analyzes GSK's strengths like focus on R&D and parent synergy, as well as weaknesses like limited liquidity position. Opportunities discussed are launch of new products and growth in healthcare markets like India. Threats include uncertain R&D outcomes and government regulations. The document also discusses trends reshaping the healthcare industry like empowered patients and use of real-world data. Major changes in digital health are driving new opportunities for pharma companies.

1. Click to add Member Names
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Fusion
IIM Kozhikode
Abhishek Anand,
Surajkumar lal,
Raghvendra tolia

2. Political
It affects the implementation of GSK
marketing strategy include possible changes in
international trade regulation and competitive
regulation likely to be introduced by the
governments of China and India.
Economic
It impacting GSK marketing strategy include
high rate of economic growth in China and
India. Moreover, current economic uncertainties
associated with European markets might have
negative implications on the marketing strategy
Social
With potential implications on GSK marketing
strategy are changes in consumer lifestyles,
shifts in consumer attitudes and opinions etc.
Increasing level of customer resentment
towards large amounts of profits made by
pharmaceutical companies are the most
significant social factor in the current environment.
Technological
Technological factors include breakthroughs in
pharmaceutical industry, issues associated with
licensing and patenting drug manufacturing
technology, as well as, the level of development
of industry technology.
PEST Analysis
Pharma Vision 2020
• Pharma vision 2020 by the government’s Department of Pharmaceuticals aims
to make India a major hub for end –to end drug discovery.
Single-window
clearance
• As per NBDS, a proposal has been made by the National Regulatory
Authority(NBRA) to provide single window clear mechanism for all bio safety
products to create efficiencies and streamline the drug approval process.
Support for
technology upgrades
and FDIs
• Govt is planning to relax FDI norms in the sector.
• In 2017, the govt deicided to create a digital platform to regulate and track the
sale of quality drugs, and it can be used by people in the country and abroad.
Several favorable policy measures :
• National Commission for Homeopathy bill
• National Biopharma Mission
• Union Budget 2019-20
• Biotechnology based Programme for Women

3. Strengths - Focus on R&D
The company’s R&D unit, namely Pharmaceutical Research &
Development (PR&D) is approved by Department of Science and Industrial
Research, Government of India. In FY2019, the company spent INR23.27
million on its R&D
Strengths - Parent Synergy
GSK India is a subsidiary of GlaxoSmithKline plc, one of the world's leading
research-based pharmaceutical and healthcare companies. It is a science-
led global healthcare company that researches and develops a wide range
of novel products.
Strengths - Strong Market Position
GSK India's strong market position has built its brand equity and helped
the company in establishing itself as a leading pharmaceutical company in
India. It is one of the leading pharmaceutical companies in India. In
preventive healthcare area, GSK India continues to be the top vaccines
company in the private vaccines market in India.
Weakness - Limited Liquidity Position
The company recorded a current ratio of 1.38 times in FY2019.
This was lesser than the Pharmaceuticals and Healthcare
industry average current ratio of 3.75. The below average current
ratio indicates that the company may find it difficult in fulfilling
its payout obligations. The company's current ratio was below its
competitors such as Dr. Reddy's Laboratories Ltd and Sunzen
Biotech Berhad, which reported values of 1.88 and 3.34,
respectively during the same year. Limited liquidity position may
put the company at a disadvantage while funding any potential
opportunities arising in the market.
Opportunities - Launch of new products
In March 2019, the company launched Nucala (Mepolizumab), a
humanised monoclonal antibody for the treatment of adult patients
with severe refractory eosinophilic asthma.
Opportunities - Healthcare Market: India
The Indian pharmaceutical market is expected to increase from
US$44.6 billion in 2018 to approximately US$60.5 billion in FY2021. The
major factors that are expected to drive the Indian pharmaceutical
market are increasing insurance coverage, especially in the private
sector
Opportunities - Changing Demographics
Experts expect that over the next decade, there will be nearly 75%
increase in the number of people over the age of 60. While developed
countries have managed to slow down their overall population growth,
Longevity in the elderly population will cause concern in the future.
Threats - Uncertain R&D Outcomes
Adverse or inconclusive results from preclinical testing or clinical trials may
substantially delay or halt the development of the company's various product
candidates, consequently affecting its timeliness for profitability.
Threats - Competitive Landscape
The company faces competition from other large multinational firms and major drug
development companies, biotechnology companies, whose financial, technical, and
marketing resources are significantly greater than those of the company. The entry
or expansion by any of these large companies in the specialty managed healthcare
industry could increase the downward price pressure on premium rates causing
intense competition to attract and retain independent agents, brokers and
employees.
Threats - Government Regulations
In India Central Drugs Standard Control Organization regulates safety and quality of
pharmaceutical products, the introduction of new pharmaceutical products,
manufacturing and labeling and record keeping procedures for such products.
Receiving marketing approval for new pharmaceutical products from regulatory
authorities is time consuming and expensive.
SWOT- GSK
Health insurance & generic drugs
Optimized Salesforce
Corporate Branding
Emerging
importance
for Doctors
Customer Journey
Future Trends to watch
• Empowered Patient & Personalized Medicine:
Personalized medicine and targeted therapies can
significantly increase the effectiveness of new drugs in
specific patient groups.
• 3D printing of drugs
The first 3-D printed drug was approved by the US-FDA in
2015. If the trend catches on – and it surely will – patients
can print their pills on their own and completely bypass
pharma.
• Computing & Analytics
With supercomputers, artificial intelligence and big data,
pharma risks losing the very value that drives its customer
interactions and therefore its business. Does pharma have
a plan to counter or harness this development?

4. Trends reshaping healthcare
Individuals are starting to
control their own health
treatments
Patients are becoming more than just
passive recipients of therapies.
Healthcare will be driven much more
by consumers than physicians.
The clinical environment
will change
fundamentally.
As consumers become more
engaged and care environments
more complex, physicians will
need new skills and tools.
Patients’ brand loyalty
dwindles as cost consciousness
rises.
People are now much less loyal to
brands and companies—both their
insurance companies and the pharma
companies that make their medicines.
Pharma companies will lose
exclusive control over their
value stories.
As the lines among payors, providers,
and pharma companies blur, carefully
controlled trial data will no longer be
the sole source of outcome data
EMERGING THEMES
Reimagine pharma players as
solutions companies, not asset
companies
Technology is ready, but
pharma companies must
change to enable and harness
it
Dr. Krishna Yeshwant of Google
Ventures.
“Now if we turn to the medical-software and
device space, we can push more
evolution—for example, user-friendly
devices or user interfaces. Users of
pharmaco products are comparing them with
those of the best consumer-electronics
brands. That’s the new standard.”
“There is a strong pack mentality.
Organizations don’t change unless they see
everyone else change at the same time,”
says Dan Goldsmith of Veeva Systems.
“This has resulted in slow advances and a
lack of innovation across the industry for
years. In essence, pharma wants to be in
control and avoid the risk of standing out.”
Now, despite the fact that patients are taking
back control over their own health,
Inder Singh, CEO of Kinsa, suggests another requirement.
Pharma companies must “reimagine their legal and compliance
organizations to work more closely with regulators as companies
creatively think about how to enable new business-model
innovation,” Singh says. “Health information is highly regulated,
and the regulatory context has not always kept up with the pace
of innovation. Pharmaceuticals will need to actively work with
regulators to find a path forward.”

5. Possible Fundamental shifts
Go beyond the pack mentality
by embracing experimentation
and risk.
Embrace a collaborative
culture and challenge barriers
to sharing.
Reinvent companies by
building nontraditional
capabilities and embedding
them in new operating models
Pharma companies must now meet the consumers’ higher expectations, which stem
from their experiences with other industries. user-friendly devices or user interfaces.
Users of pharmaco products are comparing them with those of the best consumer-
electronics brands.
A collaborative approach is necessary if pharma companies are going to stay
ahead of healthcare digitization. Significantly, some have already recognized the
need to stimulate, connect, and support innovative ideas across business units and
geographies. As we mentioned earlier, pharma companies should also recognize that
they must contribute data if they want to see what data others have.. pharma companies
have a choice between developing digital solutions in-house or through partnerships. it
would be better for these companies to partner with third-party technology providers
through innovation funds or joint ventures.
Attracting, engaging, and delighting consumers requires a deep understanding of
how to deliver a customer experience—far beyond just selling a product, pill, or
diagnostic test. The problem is that most healthcare innovation gets smothered in
preference for something that drives the bottom line immediately. The good news is
that they see some pharma companies starting to value nontraditional skill sets—hiring
marketers from other industries, such as retail, and building strategic relationships with
creative agencies.
Possible Shifts
CareFlow maps of how people make
healthcare decision

6. consumers in the healthcare
sector are becoming more
informed, empowered, and
demanding. The more that
healthcare data becomes digitally
accessible, the more patients will
use it to weigh—and potentially
reject—expensive healthcare
treatments.
Patient behavior is
changing
Government health agencies,
from national health services in
Asia and Europe to government
organizations in the United States,
are already harnessing the power
of big data to figure out what’s
working and what isn’t and
encouraging others to do the
same.
Government agencies
are moving
surprisingly quickly
Pharmaceutical companies have used data
generated from long-running randomized
controlled trials as the gold standard to
demonstrate the efficacy and safety of
products and gain regulatory approval or
formulary listings. Yet many of their
customers—payors, increasingly providers, and
even patients—are looking for real-world
evidence. Both access to and quality of real-
world data are increasing exponentially
Trial data is necessary but no
longer sufficient
The need to provide ongoing management of
chronic diseases and to predict and prevent
severe episodes and events offers new
opportunities and places new communication
demands on every member of the healthcare
team, including pharmaceutical
companies. Some companies are already are
combining technology-enabled monitoring and
insight to deliver new solutions to patients.
Care is evolving
The recent announcement of the Apple Watch and the company’s release of its
HealthKit developer tool are likely to increase the variety of functions and
number of health-related apps that are available.
Google Glass is the most high-profile wearable being tested for numerous
healthcare applications—for example, surgeons are using it to facilitate and
record operations, office physicians are reducing interruptions in patient
engagement by retrieving and sending information to electronic medical
records through the device, and emergency-medicine physicians are getting
specialist consults by transmitting video or images taken by Glass.
Competition is faster and fiercer
Upcoming changes in Digital pharma space
Pharma company is facing
barriers in Strategy, Culture
and Org

7. Major changes to the digital health are driving new
opportunities for pharma
42
37
36
32
30
23
31
10
15
27
0 10 20 30 40 50
Digital product support and
educational tools (Mob apps)
Patience adherence and
compliance program
Remote patient monitoring and
use of smart devices
Data sharing with healthcare
Caregivers tools and support
Current offering VS Offering opportunity (%)
Current offering Upcoming oppertunities
Key areas of
Digital
opportunity
Personalized care:
Sensors and digital
services for
tailored, 24/7
treatment
Fuller engagement:
Omnichannel
conversations with
physicians and
patients
Data-driven insight:
Advanced analytics
to increase pipeline
and commercial
value
Real-time
responsiveness:
Automated processes
to improve cost,
reactions, and agility
Upcoming digital pharma synergy
Data-driven insight: (Use of
Analytics)
• Pharma companies and other healthcare
players link and analyze data from insurance
claims, clinics, laboratories, sensors, apps,
social media, and more in order to generate
real-world evidence about a drug's efficacy
• Marketing and sales forces will deploy
advanced analytics to understand prescribing
behavior and potential patient profiles,
enabling more precise targeting of providers
and increasing the number of prescriptions
filed
• In R&D, digital discovery and the testing of
molecules with advanced modeling and
simulation techniques will be commonplace.
Use of big-data prescription for
pharmaceutical R&D
• Integrate all data
• Collaborate internally and
externally
• Employ IT-enabled portfolio-
decision support
• Leverage new discovery
technologies
• Deploy sensors and devices
• Raise clinical-trial efficiency
• Improve safety and risk
management
• Sharpen focus on real-world
evidence

8. Thank you.