Detailed Analysis Of Marketing And Management Of GSK GlaxoSmithKline Company

Marketing Orientation

Select any International Pharmaceutical company and a specific product such as baby medicine.

Provide a brief description of this organisation and the industry to which it belongs. You may also want to include in this description any mission statements, value statements or ‘slogans’ that this organisation utilizes to communicate its purpose. In describing this organisation, please also identify its orientation towards marketing and provide relevant, detailed and factual supporting evidence to substantiate why you have identified this specific orientation.

This report will encompass a detailed analysis of marketing and management of GSK GlaxoSmithKline Company.  GlaxoSmithKline is among the largest pharmaceutical company manufacturing medicine. The report in particular will focus on brief description of the company and the marketing orientation used in the organization. It will also entail the 5C`s of the organization, SWOT and PESTLE analysis. A market research to offer the solution for issues in the marketing will similarly be analyzed especially in launching any new products. Finally, the report will develop a marketing strategy for use in the entire organization.

GlaxoSmithKline is the leading and most common pharmaceutical company in the word, and has been active in the health department for a very long time. The company has been able to manufacture variety of health products and medicines that used to cure diseases and improve health condition in people. These products include health care, prescription drugs and vaccines which serve a perfect role in treating illnesses.  Of course doctors, who are confident over the quality of medicines advice accordingly on which medicine is right for what condition. Notably the pharmaceutical company has contributed widely in impacted on the health care state spending millions on research and development. As such it is among first three companies that contribute in the health care department. Due to a well-established channel of distribution, the company is sure of good market share, hence can effectively overcome competition. It is important that the organization achieves its objectives and issue medicine and other products consistently and be updated on the bargaining power of buyers and suppliers.

The vision for GlaxoSmithKline (GSK) is to ensure their value chain neutralizes carbon in the years to come, preferably by 2050. In one its recent activities, the company collaborated with the University of Nottingham to create a new laboratory to serve as Centre of Excellence for sustainable chemistry and to establish an innovative carbon neutral sustainable chemistry laboratory (Verhohlen, 2008, p. 137).

5C`s of the Organization

Marketing strategy encompass the activities carried out by an organization to create awareness of either a service or product to customers (Varadarajan, 2010).  In short, the activities are carried in an orderly manner for purposes of promotion and selling products and services. In this context, GlaxoSmithKline (GSK) as the biggest pharmaceuticals company, should ensure the best procedures to capture the needs of customers and maintain a stable position.

The company main strategy is to serve the needs of its customers with healthcare needs by creating consumer preferred and brands recommended by experts. In order to accomplish such a target the company focuses on innovation to establish the best brand worldwide and ensure good relationships with retailers, healthcare staffs and customers.

The organization provides specifically medicines that are prescribed, vaccines and other related healthcare products. Prescription medicines are used to treat most of the chronic diseases, vaccines for prevention and health products to provide a comfort to problems like aching teeth, flu and pain on the joints.

Market trend

GlaxoSmithKline (GSK) Company is fast growing with new emergence in technology. Therefore, marketing analysis is conducted using SWOT analysis and other related theories. –

GlaxoSmithKline Strength

1. Out of the top five known pharmaceutical companies, GlaxoSmithKline is at the top most.
2. GlaxoSmithKline Company inhibits an effective and sustainable research and development departments which facilitate field studies and developing medications (Zaman, 2011).
3. The company took an award in the Chemical industries and is equipped with efficient energy resources.
4. GlaxoSmithKline is known as a multinational company and operates its activities in a number of countries in the world, about 100.
5. The company has a good number of employees who assist in carrying out its business all over the world.

GlaxoSmithKline Weaknesses

1. GlaxoSmithKline`s image to the public has been compromised due to the problem of safety of drugs.
2. The continuous misuse of substance and cases of illegal drugs is likely to tamper with the business.
3. The company suffered a bad reputation when its products expired hence a damage in health.
4. The company must be cautious anytime it manufactures medicines because some of the drugs are no longer accepted.

GlaxoSmithKline Opportunities

1. GlaxoSmithKline is able to promote its activities by entering into partnerships with other companies in related field.
2. The company can start a campaign create more awareness pertaining to health, in turn increasing the business scope.
3. GlaxoSmithKline can exercise the mergers so us to gain popularity in all over.
4. A lot of health care problems emerge daily which the company has to company has to provide a solution.

GlaxoSmithKline Threats

1. GlaxoSmithKline take the risk to prepare medicines (Leonhardt, 2010).
2. The company perseveres strict rules and regulation concerning the manufacture and distribution of medicines.
3. Economic changes, affect the provision of medicines to clients (Anika, 2014).
4. Threat from other companies.
5. The medicines of this company are precious thus buyers feel lazy to buy these products, and this is another factor that slows down the sales process.

Customers

The customers for GlaxoSmithKline products include all people weather sick or healthy. The medicines are meant for sick people whereas health products can be used by anyone. Therefore, the company targets every type of market and also the medicines are sold to developing countries to generate revenue from sales (Shang et al., 2009. p. 146-163).

Collaborators

Collaborators are important in implementing the stages fostered to meet the needs of customers (Muslimah and Simatupang, 2014). After manufacturing process, variety of medicines and health products are handed over to retail market to complete the supply chain, hence retailers are in charge of reaching the customer and boosting the company`s revenues.

Competitors

Due to an increasing demand in health care, a number of companies have emerged pose threat to GlaxoSmithKline. GlaxoSmithKline’s main competitors are Novartis and Incepta pharmaceuticals limited among other new pharmaceutical companies.

Technological factors

GlaxoSmithKline Company manufactures medicines by incorporating the modern technology and succeeded in faster production (Tukdeo, 2016). Technological factors entail a progress in pharmaceutical industry, issues associated with licensing and patenting drug manufacturing technology and also the level of development of industry technology.

Social factors-

Social factors affecting GlaxoSmithKline are basically the alteration in lifestyle, change in attitude and opinion of consumers.  However the most significant social factor in the current environment is high level of customer resentment towards large amounts of profits made by pharmaceutical companies and sliding images of large pharmaceutical companies (Jahan, 2018).

SWOT and PESTLE Analysis

Market research and analysis

Market research for an organization is a set of activities carried out to acquire adequate information concerning the demand of a product or identifying opportunities for a given brand. The base line for many successful businesses is the accuracy and vigorous research which provide a sufficient information about customers, competitors and the whole organization (Doole, Isobel and Lowe, 2008). The management in this case is able to predict the success of a business before allocating resources in place.

Primary survey

Gathering a primary information can either be in two forms; explanatory and specific (Brace, 2018). Explanatory research which assist in defining a particular issue is open ended for instance interviews with long answer. On the contrary, specific research is précised in its structure and provide solution for problems identified by explanatory research. Interviews are also used in type of survey but formal.

GlaxoSmithKline limited conducted a primary research, which its key concern was to find out how much the company`s products are popular in the market. Additionally, the research focused on exploring the customers` preference and taste for healthcare products and medicines. The customers include everyone, whose urge is to maintain good health and living.

Customer needs

The company realized the demands of the customers after surveying the market. The study found out that customers are interested health products that can easily get accessed and also affordable. This is attributed by the fact that most individuals are become more active in managing their personal health.

Potential threat

According to the outcome in the survey, the potential threat for GlaxoSmithKline Company is Novartis. Novartis is also a pharmaceutical company that issues healthcare services (Kanneganti and Synn, 2014). Similar to GSK, the company specializes in researching, developing, manufacturing and marketing different healthcare products. It therefore means, for GlaxoSmithKline to respond to such a threat, it must implement the marketing strategies successfully.

Changing context of business

Analyzing the changing trends in the business, customers are likely to get persuaded and opt for the products by the competitors, especially in the products the company does so well in; pharmaceuticals, Consumer Health and Vaccines

Role of collaborators

The GlaxoSmithKline team is basically determined to forge drug development partnerships with academia, venture firms, and biotechnology startups. In addition, the UK drug maker can provide the company with capabilities in high-throughput screening for drug candidates, chemical and pharmacological assessments, research and development and marketing expertise.

Market Research and Analysis

Opportunities & threats in accessible and affordable health services.

During the survey, customers expressed continued demand for good health. It was analyzed that there are ample of opportunities for affordable and accessible health care.  

Market segment & positioning of brand

Market segmentation is an essential area in the marketing strategies for achievement of goals by a business.  It works such that, it allows for the identification of esteemed customers from the overall population. The best method to implement for successful marketing strategy is STP, which imply modern marketing methods.

Potential Market segment

Due to different interests and preferences, it is not easy to appeal to the whole population, thus the need to develop marketing strategies for satisfaction of the right customer (Obaga et al., 2013, p. 2278-3823). The medicines and healthcare products of GlaxoSmithKline are provided to all patients ranging from high, to middle to low class. Since the patients require treatment, these medicines are recommended by the doctor after knowing the disease. The company has policy of providing health to every person despite age, gender, race on religion.

Proposition statement

It is important to remain aware of value statement of customers in regard to a product or service in any competitive environment. GlaxoSmithKline Company created a new consumer healthcare joint venture with Novartis and acquired its global vaccines business, excluding flu vaccines. Also it has divested its cancer drugs to the Swiss company. This move has ensured consumers healthcare forms 25% of GSK`s business in overall and 75% represents the pharmaceuticals and vaccines. In the whole world today, GSK consumer healthcare is now the top in manufacturing over the counter drugs, meaning appropriate for growth and innovation (Khan, 2013, 56-65).

Brand positioning statement.

Brand positioning refers to seeing if the customers can prefer a brand over another. Effective positioning strategy gives a solution for the issues of customers. Besides, consumer healthcare products is relies on brand loyalty and trademark protection. The company, GlaxoSmithKline has differentiated its brand by using a specific trade mark. Some of it heritage brands like Horlicks and ENO are still known today after a number of years since their first manufacturing (Latif et al., 2016)

Analysis of the STP strategy

For a company to establish a difference in its brands with other related companies, it must use STP marketing strategy which is a modern marketing tool. GlaxoSmithKline Company has therefore developed an end to end brand marketing where it is runs the entire stages of branding, from production stage up to the final product.

Developing a Marketing Strategy for GSK GlaxoSmithKline

Developing Marketing Tactic

Marketing Mix

It is in order to plan a proper marketing strategies and techniques for acquiring competitive advantage in a business environment. The elements in marketing mix thus are a tools that are directed in a manner to achieve the ultimate goal, with the most priority satisfying the needs of a customer. An organization thrives to plan its product, pricing, place and promotion that are the 4P`s of marketing mix (Fatma, Sabeeha and Chandra, 2014).

Below is the marketing mix for GlaxoSmithKline Company;

Products

GlaxoSmithKline Company provides two diversified products; hose are pharmaceuticals and consumer healthcare. For the pharmaceuticals, the company manufactures medicine that are used to cure and prevent diseases. This for instance, include, mental health, diabetes, asthma and cancer. Some of the best-selling products include Avodart, Advair, Augmentin, Flovent, Lamictal and Lovaza. Moreover, a lot of medications have been developed at its facilities, hence sold as generics. For bacterial infection the product used include amoxicillin, for HIV it is zidovudie and for herpes valacyclovir is the product. Also, medicines are available. Consumer healthcare include oral health products like toothpaste and nutritional drinks (Shang, 2008, p. 1-13).

Places

GlaxoSmithKline has its businesses on in more than 115 countries with thousands of employees. One of the biggest market for the company America where it also has its headquarters. GlaxoSmithKline Company relies a lot on research and development programs and is known as the largest investor for Research and Development (R&D). The sites for R&D is in the US, UK, India, France, China and Canada. The company also has equipment for biopharmaceutical products in Hungary, Germany, Canada, Belgium and the United States. Manufacturing activities are based in United States, Ireland, United Kingdom, Singapore, Romania, Poland, Malaysia, Italy, France and Australia. For consumer products, it has manufacturing facilities in Kenya, Brazil, Canada, United States, Ireland and the United Kingdom. GlaxoSmithKline Limited inhibits strong distribution facility and its consumer products are easily available in supermarkets, hypermarkets and its over-the-counter medications are available at prescription stores and medical facilities

Price

GlaxoSmithKline Company has adopted the most reasonable policy for pricing because it targets to reach a wider market. The pricing policy ensure prices are can be met by all the company`s customers. It has kept its profit margin minimum to deliver maximum benefits through rational prices. Revenues of GlaxoSmithKline were estimated at 27206.91 million dollars and a profit of 9521.22 million dollars in its 2015 financial year. The ultimate goal of the company is to create a distinction in the global market through its products portfolio (Mahesh, 2012).

Conclusion

Promotion

GlaxoSmithKline Company majorly promotes its products using Televisions and other social media platforms (Weber, 2009). The promotions have ascertained the brand has persistently delivered quality. GSK seeks help from experts while marketing many products and wins the customer trust.  Occasionally, the company issues discounts in most products and sales discounts to the retailers. GSK Consumer Healthcare has participated in most social activities which support various forums in providing education, healthcare, supporting the societies nearby its manufacturing units by providing certain services like lighting facilities, water facilities, disaster support and other voluntary activities by its employees.

Analysis of the Marketing Mix-

Marketing mix strategy is supposed to be made in relevance with the market research and market opportunities. The strategy involve the brand positioning of the product and differentiating it from the existing products. Organization has highly relied on its production of accessible and affordable medicine and health products. Apparently, promotion in a business plays the role of spreading information and knowledge concerning the product by making the product known to customers (Romaniuk, 2009, p. 143-150). GlaxoSmithKline Company has selected the large scale promotional activities through advertisements. Additionally, the organization has also implemented world-class processes for providing superior quality products to customers.

Conclusion

GlaxoSmithKline is a research-based multinational company. This report concerns the marketing strategy for the company. It has a brief description of the organization and description of its products. Marketing strategy has covered various aspects such as 5 C’s analysis such as SWOT analysis, customer analysis, collaborators, and context about changing business world. The marketing strategy includes target segmentation, value proposition & brand positioning statement for the organization. A marketing research is conducted for knowing the market for the company’s products. The result of showed preferences and needs of the customers, potential threat GSK limited, role of collaboration, and upcoming opportunities for the product for the company.

References

Anika, N.S., 2014. Financial performance analysis of GSK with a comparison to few of the leading pharmaceutical companies of Bangladesh.

Brace, I., 2018. Questionnaire design: How to plan, structure and write survey material for effective market research. Kogan Page Publishers.

Doole, I. and Lowe, R., 2008. International marketing strategy: analysis, development and implementation. Cengage Learning EMEA.

Fatma, S. and Chandra, A., 2014. Redesigning Marketing Mix for the Bottom of the Pyramid.

Jahan, I., 2018. GlaxoSmithKline Bangladesh Limited (GSK) (Doctoral dissertation, Daffodil International University).

Kanneganti, P. and Synn, A., 2014. A Strategic Pharmaceutical Acquisition Proposal for Novartis a Global Pharmaceutical Multinational Corporation.

Khan, T., 2013. STP strategy for New Product Launch-a Work in Progress. International Journal of Business and Management Invention, 2(3), pp.56-65.

Latif, A.A., Sibghatullah, A. and Siddiqui, K.A., 2016. Repositioning Horlicks in Pakistan.

Leonhardt, D., 2010. Weak rules on toxins and safety. New York Times, 31.

Mahesh, M.C., 2012. Marketing strategies of selected pharmaceutical firms in India: a case study of anti-infective therapeutics.

Muslimah, M.D. and Simatupang, T.M., 2014. Supply chain collaboration for ensuring retail product availability at Glaxosmithkline. In 6th International Conference on Operations and Supply Chain Management.

Obaga, I.M., Omido, K., Garashi, H.M., Odera, O. and Ogutu, M., 2013. Analysis of retail marketing strategies on Organizational competitiveness. International Journal of Management & Information Technology, 3(2), pp.2278-5612.

Romaniuk, J., 2009. The efficacy of brand-execution tactics in TV advertising, brand placements, and internet advertising. Journal of Advertising Research, 49(2), pp.143-150.

Shang, J., Tadikamalla, P.R., Kirsch, L.J. and Brown, L., 2008. A decision support system for managing inventory at GlaxoSmithKline. Decision Support Systems, 46(1), pp.1-13.

Shang, J., Yildirim, T.P., Tadikamalla, P., Mittal, V. and Brown, L.H., 2009. Distribution network redesign for marketing competitiveness. Journal of Marketing, 73(2), pp.146-163.

Tukdeo, R., Kalilombe, E., Onyeugbo, O.C., Okafor, F. and Ebeleghe, R., 2016. The global pharmaceutical industry.

Varadarajan, R., 2010. Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science, 38(2), pp.119-140.

Verhohlen, A., 2008. A Business Deconstructed. Company Analysis of GlaxoSmithKline plc.

Weber, L., 2009. Marketing to the social web: How digital customer communities build your business. John Wiley & Sons.

Zaman, K., 2011. Review of Pakistan pharmaceutical industry: SWOT analysis. International Journal of Business and Information Technology, 1(2)