'Glaxo Wellcome Mini Case\r'

'Glaxo Wellcome Inc. Mini-case Report April 2, 2007 [pic] Executive thick Glaxo Wellcome Inc’s primary p atomic number 18ntage is to grocery store prescription medicine products to physicians and health like providers. One of the top terzetto pharmaceutical firms in the world, Glaxo Wellcome Inc. held somewhat 4 part of the worldwide prescription pharmaceutical market. The U. K. ground high society was formed in 1995 when Glaxo Pharmaceuticals acquired Burroughs Wellcome. While the connection is based in the U. K. , the U. S. market represented approximately 40 percent of worldwide sales while the U. K. produced astir(predicate) seven percent.\r\nAs of 1997 Glaxo Wellcome Inc. had 22 local in operation(p) companies in nine countries including the U. S. Because of the harsh requirements of the Food and do drugs court (FDA) most products argon introduced in one of the other eight countries before seeking U. S. approval. hemicrania medicine is a primary growth force field for Glaxo. The connection was first to manufacture and market triptans, a in the buff class of prescription megrim medicine. Triptans were puted in 1993 and work specific every(prenominal)y on the 5HT-1 receptor sites conceptualized to be the primary cause of sick headache headaches.\r\nImitrex was the first triptan produced and sell by Glaxo in the U. S. The concern now is how the high society should go around market the second-generation triptan by the fraternity, Amerge. This will be the first time a pharmaceutical company has two prescription triptans operable on the market. bother Statement and Key Issues Glaxo Wellcome’s U. S. division faces the assign of determining a pose dodge for their youthful triptan, Amerge, to increase total market part in the veritablely underdeveloped migraine market.\r\nNot however should the market decisions combat pressure from contests with comparable products, plainly too the pharmaceutical marketers must elevate the brilliance of the new product’s placement on the formularies of managed care plans. Additionally, the development of a direct-to-consumer (DTC) advertising female genital organdidature that is informative and persuasive, without offending the medical community, must be intromitd as a part of the positioning st reckongy. SWOT Anaylsis for Glaxo Wellcome Inc. Strengths: Seen as a reliable prescription drug manufacturer, therefore has a positive write up • Global company with 4% of the worldwide prescription pharmaceutical market • Company has a starchy balance sheet and growth potential • Imitrex dominates the migraine market as the first and only triptan available from 1995-1998 Weaknesses: • Does non have a clear marketing strategy for the triptans • Largely focused on competitor activity instead of growing market circumstances • FDA regulations create long approval periods The recent business combination of Glaxo Pharm aceuticals and Burroughs Wellcome in 1995 has created organizational challenges Opportunities: • 90% of the migraine market is underdeveloped • More marketing options include the ability to directly contact consumers as hale as doctors and hospitals (in the U. S. division) • Ability to market line extensions for new products such as Amerge • Difficult for new competitors to get down the market because of R&D and approval processes Threats: • Non-acceptance as a formulary of managed care plans Competitors’ products, such as Zomig, released before and out-performing Amerge • Changes in healthcare legislation, including Medicaid and Medicare Alternative Courses of challenge 1. Replacement strategy: the U. K. division chose this plan of execution, ceasing all promotion of Imigran (U. K. name steel for Imitrex) and positioning Naramig (the U. K. brand name for Amerge) as the recommended drug to start treatment of migraine patients. The shift strategy results met Glaxo U. K. expectations, but disgraced the growth of Imigran and did not prevent Zomig from successfully get into the market.\r\nFurtherto a greater extent, the U. K. market has two major differences from the U. S. market: pharmaceutical companies cannot legally advertise their products to consumers, and the health care formation is interact. The implications of these two differences in terms of positioning strategies are vast. The inability to engage DTC advertising prevented the U. K. from successfully prosecute alternative positioning strategies, such patient-based segmentation, due to concerns about the physician’s ability to identify such segments and gain confusing the prescribing process.\r\nMoreover, in a socialized health care system where patients are authorise to free medical care, patients can seek treatment easier and can be less involved in the prescribing process than in an insurance-based system where there is to a grea ter extent monetary involvement. Although this strategy might communicate a clear message about the drug’s superiority, it would vilipend the brand name built for Imitrex, drastically impacting its potential profitability as well as the ability to move to recuperate the high investments already sunk into the R&D and marketing of Imitrex. . competitor Strategy: since Zomig is expected to be launched prior to the FDA approval of Amerge, Glaxo U. S. can position Amerge directly against Zomig. They can utilize their position as the market leader to supplement Amerge’s positioning as the true second-generation triptan providing the best relief on the market. Glaxo U. S. can back up their claims with the results from the UK where the majority of previous non-triptan users prefer Naramig.\r\nAlthough this strategy could successfully prevent the competition Zeneca from gaining substantial market share through the marketing of a second-generation triptan, it would also devalue the Imitrex brand similar to the replacement strategy. 3. Pricing strategy: one of the weaknesses identified for Imitrex is its relatively high expense in comparison to over the counter ( over-the-counter(a)) medication, which is pull ahead exacerbated by the medication’s high rate of recurrence.\r\nSince most patients in the US pay both partially or fully for their medication, Amerge could be positioned as an affordable alternative to Imitrex. Amerge could be priced similar to OTC medications and its lower recurrence rate could be promoted to further emphasize its affordability. A possible down status to this strategy is devaluing the exposure of Glaxo Wellcome for physicians because of a perceived â€Å"lack of quality” that can accompany low priced products. On the positive side, it could remove from competitor’s noise and would suspend Imitrex to breed in its position as the market leader.\r\nIt could also improve the consumer perception of G laxo Wellcome as a company that cares for patients that cannot afford expensive medication. 4. Lifestyle Segmentation Strategy: Glaxo U. S. could create an emotional appeal for Amerge by encounter the facts about its might, side effects and dosage with the olfactionings of patients. future consumers seek treatment for their migraines not only to subside the pain, but also to be able to continue productivity in their lives during a migraine episode.\r\nTherefore, Amerge’s proven efficacy, combined with low risk of side effects, low recurrence rate and ease of administration could be used to promote it as the migraine medicine that â€Å"let’s you get on with life”. Unlike the pricing strategy, this course of action would emphasize the product benefits and thus would be more beneficial to Glaxo’s image. But similarly to the replacement and competition positioning strategies, it weakens Imitrex’s position in the marketplace. 5. Benefit-based Port folio Strategy: Glaxo U.\r\nS. can present both migraine medicines as a portfolio of solutions to migraine pain. Amerge could be positioned as the â€Å"milder” new-generation triptan, and Imitrex could be repositioned as the â€Å"strongest and fastest” triptan with proven efficacy to treat acute pain. This positioning strategy would allow Glaxo U. S. to continue to reap the benefits from the marketing initiatives already invested in Imitrex, while utilizing its current standing as the market leader as a platform from which to launch Amerge.\r\nPossible drawbacks to this strategy include cannibalization of Imitrex sales as well as confusion in the minds of physicians and consumers as to which drug would be the best option for a patient. Recommendations Given the considerable expenditure in R&D and marketing of pharmaceuticals, we recommend that Glaxo U. S. choose the benefit-based portfolio strategy. We feel strongly that Glaxo U. S. should not abandon the effort s placed in the marketing of Imitrex, but rather leverage its current market position to support the launch of Amerge.\r\nWe believe this strategy could effectively combat competitors’ efforts to enter the marketplace. The company can utilize DTC advertising to send a clear message of the benefits each drug offers to patients. Nevertheless, it is domineering that Glaxo U. S. also invest resources in conveying the honorable message to physicians and negotiating placement of both drugs on the formularies of managed care plans; otherwise the likelihood of switching to a disparate brand or forgoing treatment all increase significantly. With a portfolio strategy and clear differentiation among the products, Glaxo U.\r\nS. is better armed to capture the 90% of migraine sufferers that were not being medicated with a triptan as of 1997. outcome Although Glaxo Wellcome is one of the largest pharmaceutical companies in the world it has many opportunities for growth and developmen t. One of these opportunities is with the migraine medicines known as triptans. Although Glaxo already has one triptan on the market, there are still many migraine sufferers that are not being treated. With the benefit-based portfolio strategy Glaxo can market its second-generation triptan, Amerge to the millions of migraine sufferers.\r\n'