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This a detailed report on marketing practices followed by GSK Pakistan
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GLAXO-SMITH-KLINE
PANADOL MARKETINGPANADOL MARKETING
GROUP MEMBERS:
ZAINAB LAKHANI
IFRAH JAVED
AHSAN AFZAL
OVAIS RAJPUT
AMNAH FIDA
TABLE OF CONTENT
Acknowledgement............................................................................................................3
Executive Summary...........................................................................................................4
Research Methodology.....................................................................................................5
GLAXO-SMITH-KLINE:........................................................................................................5
A Brief History................................................................................................................5
GSK: Mission & Strategy................................................................................................5
GSK Pakistan..................................................................................................................7
GSK Product Portfolio....................................................................................................7
Panadol.............................................................................................................................9
Consumer Behavior Model.............................................................................................10
What is Consumer Behavior Model?..............................................................................10
Current Consumer Behavior Model at GSK.....................................................................12
Modifications and Recommendations.........................................................................16
Competitive strategies at Panadol..................................................................................19
Introduction:................................................................................................................19
What Panadol has managed?......................................................................................20
Competitive advantage:...............................................................................................20
The competitive strategies:.........................................................................................21
The four P’s:.................................................................................................................21
Recommendations.......................................................................................................22
Company`s Value definition practice of segmentation, targeting and positioning:........23
What is Value?.............................................................................................................23
How GSK applies this Module?....................................................................................25
How can they modify their current practices?.............................................................26
GSK’s Value Creation Effectiveness.................................................................................27
Existing Practice...........................................................................................................30
Recommended upgrade..............................................................................................31
Communicating Value.....................................................................................................34
Why is there a need of marketing communications?..................................................34
Direct mail................................................................................................................34
Telemarketing...........................................................................................................34
Magazines.................................................................................................................34
Electronic media.......................................................................................................35
Current communication program of Panadol..............................................................37
Analysis and recommendations for GSK......................................................................39
Conclusion.......................................................................................................................42
ACKNOWELDEMENT
First of all we would like to thank Allah Almighty for giving us the resolution
and determination to complete this report. We have taken efforts in this
project. However, it would not have been possible without the kind support
and help of many individuals. We would like to extend our sincere thanks to
all our fellow colleagues and group mates who directly or indirectly
participated in working on this project. We would like to give due credit to
our teacher Mr. JAVED AHMED for guiding and mentoring us throughout
the supervision and support that he gave, truly helped the progression and
smoothness of our work.
We are highly indebted to GLAXO SMITH KLINE for their guidance and
constant supervision as well as for providing necessary information regarding
the project & also for their support in completing the project.
Our grateful thanks also go to the staff at GSK, notably Mr. ASAD AHMED
assistant brand manager for the wellness program for providing us with the
necessary information and assistance needed in accomplishing of this feat.
We would like to express our gratitude towards our parents for their kind co-
operation and encouragement which helped us in completion of this project.
Furthermore, we would like to express our special gratitude and thanks to the
staff at GSK for giving us such attention and time.
EXECUTIVE SUMMARY
Panadol has become a renowned medicine throughout Pakistan. Panadol (paracetemol) is a product by the Glaxosmith cline used for reducing the fever and relieving pain. Compared to its competitors like Ponston, Brufen and Dispirin it occupies a greater market share which makes it a market leader in the running. Panadol has managed to create many more products which although have not yet made it in Pakistan but are widely available in the west.so our interview with the marketing manager helped us in understanding what are the marketing strategies employed by the Gsk for Panadol. According to the manager there isn’t much need to promote the medicine; the main promotion is done through the word of mouth of the sellers of medicine of pharmacy stores since panadol is an over the counter medicine and through the prescription of the doctors. The one recommendation that the manager gave was that Gsk should try to increase the product line. however on research we found out the panadol has already diversified into producing a range of products for back pain, for flu for children,for women but they all have not yet made it into pakistan.so our recommendation to Gsk is that if they want to remain a market leader they either need to expand their market share by bringing in the new products and making people aware about them so rather than taking dyclo or calflam they would prefer panadol specific pain relievers. We also analyzed their consumer behavior practices and how the consumer goes through the 5 step process when purchasing Panadol. we discussed their current practices and also provided an upgrade for their consumer behaviour model. we worked on how GSK can make improvements at defining value that is how can GSK be more effective and efficient in segmenting, targeting and Positioning of the market.
RESEARCH METHODOLOGY
This report was made by gathering relevant data from the specified
documents in order to analyze the material and arrive at a more complete
understanding and historical reconstruction of the GSK`s product Panadol.
This report hopes to shed light on the five marketing modules and relate them
to GSK
All of the data for the report was collected through the online resources and
the GSK`s own website. The literature review of the modules was written on
the basis of class lectures, Harvard business reviews and personal knowledge.
The application of modules to GSK is written on the basis of an interview
that was held with the Assistant brand manager at GSK Mr. Asad Ahmed.
The report uses qualitative data from primary and secondary sources
Recommendations to the module were based on our understanding and ideas.
We were also given a feedback from our Lecturer to assist us and direct us
towards a good report and practical application of the modules.
GLAXO-SMITH-KLINE: A Brief History
GlaxoSmithKline, often abbreviated to GSK, is a Global pharmaceutical,
biologics, vaccines, and consumer healthcare company, headquartered in
London, UK. GlaxoSmithKline started operations on 1 January 2001
following the merger of GlaxoWellcome plc. and SmithKline Beecham plc. It
is world’s Third largest pharmaceutical company measured by revenues (after
“Johnson and Johnson” and “Pfizer”). It has a portfolio of products for major
diseases areas including asthma, cancer, virus control, infections, mental
health, diabetes, and digestive conditions.
GSK: Mission & Strategy
GSK’s business is focused around the delivery of three strategic priorities
which aim to
Increase growth,
Reduce risk and
Improve our long-term financial performance.
These priorities are:
1. Grow a diversified global business,
2. Deliver more products of value,
3. Simplify the operating model.
The company defines its priorities as follows.
Grow a diversified global business
Over the past five years we have created a more
balanced business and product portfolio, capable of
delivering sustainable sales growth. This is
centered on our three business areas of Pharmaceuticals, Vaccines and
Consumer Healthcare, which provide us with significant competitive
advantages and opportunities for synergy. We have substantially increased
our investment in higher-growth areas such as emerging markets and Japan
and in our global Vaccines and Consumer Healthcare businesses. At the same
time, we have re-shaped our US Pharmaceuticals and Vaccines business to
reflect the changing market dynamics there and to prepare for the launch of
multiple new products. In Europe, we are restructuring to improve efficiency
and focus resources to growth opportunities in what continues to be a
challenging market environment.
Deliver more products of value
We have changed our R&D organization so that it is better able to sustain a
pipeline of products that offer valuable improvements in treatment for
patients and healthcare providers. We have
increased the externalization of our research,
allowing us to access new areas of science and to
share the risk of development with our partners.
We have also changed our processes to make
decisions earlier, so that only those medicines which are significantly
differentiated from existing therapies are progressed. We have broken up the
traditional hierarchical R&D business model and created smaller, more agile
groups of scientists who are accountable for their projects. All of this has
been underpinned with a focus on improving the rates of return in R&D and
being more rigorous in how we allocate investment across Pharmaceuticals,
Vaccines and Consumer Healthcare R&D.
Simplify the operating model
As our business continues to change shape, we are
transforming how we operate so that we can
reduce complexity and become more efficient.
Over the past four years we have implemented a
global restructuring program designed to deliver
significant savings to support investment in our priority growth businesses as
well as offset pressures on the Group’s margin resulting from changes in the
shape and mix of our business. Savings from this program have been
generated across the business. As this program comes to an end, we are
continuing to examine ways to simplify our operating model and increase
efficiencies. We have therefore begun a new, major change program across
manufacturing, R&D and Europe to deliver further savings. The new program
includes a series of technological advances and opportunities to eliminate
complexities and improve our competitiveness further.
GSK PAKISTAN
GlaxoSmithKline Pakistan is a recognized leader in
Pakistan's pharmaceutical industry sector. They have been awarded for
excellence in health, safety & environment. Also, they are recognized for
their community work and for their HR practices - leading the corporate
sector as the best place to work.
GSK PRODUCT PORTFOLIO
GSK makes a wide range of prescription medicines, prescribed vaccines and
consumer healthcare products.
PANADOL
Since we have made Panadol the main focus of our report, a little information
is given below.
Panadol is one of the world's leading paracetamol-based pain relievers. It is
sold in more than 85 countries, including India, where it is called Crocin and
Colombia where it is marketed as Dolex. The range includes various
strengths, products for infants and babies as well as multi-symptom cold
relief products. The Panadol product range offers many different treatments
for relieving your mild to moderate pain. Panadol is sold in six forms around
the world:
1. Panadol
2. Panadol Extra
3. Panadol Rapid
4. Panadol Night
5. Panadol Extra Strength (sold in Latin
America-based countries)
6. Panadol Multi-Symptom (sold in Latin
America-based countries)
CONSUMER BUYING BEHAVIOUR
WHAT IS CONSUMER BUYING BEHAVIOUR?
It is the study to understand the purchase behavior and the processes of any
consumer when they purchase a product or a service to fulfill their specific
needs. It also examines the impact and importance of each step of the process
in the buying behavior of the customer.
Understanding consumer buying behavior is a crucial role of marketers as it
helps them make their target audience aware of offering and to trigger their
need for the product.
The consumer buying behavior is a process of 5 steps which a consumer goes
through when they make a purchase of a product. However it is not a rule of
the thumb that they must go through all the steps. A consumer might
recognize need but not evaluate alternatives and might directly purchase the
product. Sometimes they don’t go in sequence with the steps and might
experience latter steps earlier in the chain.
The five steps that a consumer goes through are as follows:
NEED RECOGNITION: This step
makes a consumer aware that they have
a need for the product. For example a
sun tan lotion might educate people the
effects of ultraviolent rays on their skin
so that they recognize the problem and
develop the need for the product. This
motivates the consumer to take steps in order to turn their need into
action and buy that product.
INFORMATION SEARCH: in this step when the consumer has
recognized theory need for a particular product they seek for different
companies offering it and which product consisting of the value
proposition, price, feature, branding etc caters to their needs perfectly.
They look for all the information which includes all the aspects of the
products available to cater to their needs
EVALUATION OF ALTERNATIVES: Then the consumer evaluates
the pros and cons of all the market offering available to satisfy their
needs. They weigh the importance of every aspect of the product
according to their requirement. At this stage the company must
differentiates its products with other competitive market offerings
through various tools. These may include branding, differentiation,
positioning, value delivery, USP, public relations and many more.
PURCHASE: This step is when the consumer takes a decision and
takes action to buy the product they have chosen. It is the step which
requires physical and financial recourses that a consumer puts in to take
the ownership of a product they recognized in the first step,
POST PURCHASE EVALUATION: It also deals with post purchase
behavior, in order to maintain customers and goodwill about their
product so that they repurchase and also refer the product to others. It
helps them maintain and even grow their market share. A company
must always under promise and over deliver to shock the consumer
positively. So that it offers more than the consumer expects so that they
are left delighted.
Without a sound understanding of the phases a consumer goes through
in making the purchase marketers won’t be able to deploy effective
marketing strategies.
Consumer purchase behavior is not consistent and differs from consumer to
consumer or even the several times a specific consumer makes a purchase
decision. There is no scientific formula to predict consumer behavior
accurately every time. It’s subject to changes which are effected by various
factors.
These include physiological factors such as
motivation to buy a product, perception of the
product, learning which comes from
experience of previous usage or beliefs and
attitudes towards a product probably because
of a positive brand image attached to it.
It also includes personal factors such as age,
occupation, economical standing, personality
of the individual and their lifestyle.
Social factors such as family and friends also
effect purchase decisions. Reference groups which a person wants to be a part
of also have a great influence on what an individual buys. For example if all
the popular children at school own an Iphone a child who desires to be
popular would also want to have an Iphone thinking that through this he can
be a part of that group.
Cultural factors also have an important role in the purchase decisions factors
such as religion effects what a person would chose to buy and reject. For
example if a Muslim family wants to go for a dinner they won’t prefer a
restaurant which sells pork or alcohol. Moreover, social class also affects
purchase decisions as a person belonging to upper class would want to own
branded products to maintain their status. Gender also has a vital role as the
purchase behavior of men and women differ in different societies.
CURRENT CONSUMER BEHAVIOUR
MODEL OF PANADOL
We visited Glaxo Smith Kline(GSK) for our final term report. There we met
the assistant brand manager of the wellness program which includes Panadol,
eno and iodex.
We asked him questions about the consumer behavior model of Panadol.
Below are the questions we asked and the answers to their current consumer
behavior model of Panadol.
Q1. What is the basic need that Panadol caters to?
ANS. It deals in areas such as pain, flue,
fever, cough, cold etc.
Q2. How do you trigger the need for your
product and make the customers aware of
it?
Ans. Panadol is already a well established
brand so there is not so much they have to do in terms of brand awareness.
However there is a lack of understanding on the differences of Panadol
regular and extra and the dosage. For example usually people perceive that if
we are taking Panadol extra then one tablet per day would be enough.
However the recommended dosage is two tablets per day.
There have been no recent advertising or promotional campaigns for Panadol.
But they do have some upcoming advertising promotional projects which are
in the process of approval from the government. It is usually a very lengthy
process at takes up to a year or so.
Q3. How do they cater the information search process?
Ans. As mentioned above they do have promotional programs in line waiting
for approval. Though they couldn’t disclose the exact detail the promotions
will be informative but will have an emotional trigger as well. For example
“Panadol effective for flu and cough” will be informational. But they could
also add “Panadol… every mother’s choice for her kids” then it will be laced
with emotions. Moreover they also have medical camps in rural areas to
educate people on importance of health and a healthy lifestyle.
Q4. What is the consumer behavior of consumers of Panadol?
Ans. Their consumers are mostly the one who has problems such as pain, flu,
fever etc. They don’t resort to the doctor for such issues and usually resort to
self medication to tackle it. I will provide some statistical data to prove my
point. This data was obtained by a survey conducted by Panadol.
Below is the graph which shows why people generally use Panadol.
14%
24%
11%
11%
2%
WHEN DO YOU CONSUME PANADOL?
HEADACHESFEVERPAINPRESCRIBED BY DOCTOROTHER
This pie chart shows that only 11% people use Panadol when prescribed by
doctors. The rest 89% take it on their own for fever, pain headache or some
other reason.
Below is the graph of the percentage of people who would resort to a doctor
in case of flue, fever and pain.
3%
7%
6%
13%
4%
INCASE OF FEVER, HEADACHE AND PAIN, I GENERALLY CONSULT A DOCTOR.
STRONGLY AGREEAGREEMAYBEDISAGREESTRONGLY DISAGREE
This graph clearly shows that most of the people don’t visit the doctors for
issues like fever, headache and pain.
Mostly people use Panadol when it’s recommended by family or friends or at
their own jurisdiction. There is a limited role the doctor plays in the
consumption of Panadol.
17%
6%
14%
3%
WHY DID I CHOSE PANADOL?
FRIEND/ FAMILY MEMEBR TOLD MEADVERTISEMENTSELF JURISDICTIONOTHER
The graph shows that mostly people use Panadol either when they are told by
a friend and family or at their own jurisdiction. A very low percentage of
people rely on advertisement and other reasons.
Q5. What are the alternatives or competitive products of Panadol?
ANS. There are many competitors of Panadol these mainly include Ponstan,
Disperin, Brufen and other pain killers available in the market.
Q6. How do you differentiate Panadol from all the other competitors’ which
assists consumers in the evaluation process?
ANS. The differentiating factor of Panadol is its ‘safety profile.’ Panadol is
made of paracetamol and its side effects are next to none. Compared to
aspirin in which you face blood thinning. Moreover like other main killers in
the market it does not cause liver failure or kidney issues. It’s a safe product
for all age groups even the children. Hence its unique selling point is indeed
its safety profile. Hence it helps consumer in evaluating it from competitors’
and they chose it because it guarantees safety.
Q7. How do you trigger the final purchase of Panadol?
ANS. The distribution of Panadol is excellent. It’s widely and easily available
in every part of Pakistan this shows the efficiency in the distribution chain.
Moreover the price of Panadol is very economical rather it nothing compared
to the value delivered so they don’t have to make a lot of effort in order to
trigger the purchase process.
Q8. How do you control the post purchase response?
Ans. They have a team of experts and researchers who deal in this area. They
get feedback from the customers on their satisfaction they get from the
product. They mainly concentrate on the effectiveness and the quality of their
product. They try to maintain it and even upgrade their quality continuously.
Even with all these measure it’s unpredictable because the level of
satisfaction each person gets differs as they have different problems and they
even take it in different dosages. But they do try to maintain the post
purchase behavior of their customers as much as they can.
Most consumers consider Panadol to be an effective medicine which provides
the promised effectiveness in a matter of minutes. Below is the graph that
shows how quick the consumers think Panadol is to start effecting.
2%
11%
18%
2%
HOW FAST DOES PANADOL TAKE TO START WORKING
LESS THAN 15 MINUTES15-25 MINUTES25-40 MINUTESMORE THAN 60 MINUTES
This shows that mostly consumers consider Panadol to start showing its
effects in less than an hour. This is very good.
MODIFICATIONS AND
RECOMMENDATIONS
There is an only so much you can do in terms of
advertising and promotions when dealing with
pharmaceutical industries. As it deals with
medicines and life saving drugs direct
promotions to the end consumers is not always
the answer. Mostly companies have to take a back route in order to increase
the sales and market share of their product.
I would recommend some strategies that GSK can use to improve its
consumer behavior model which will over all benefit its marketing plan for
Panadol
A mass nationwide health awareness program:
Panadol should have a nationwide campaign which would be held on
different days in every major city of Pakistan and even the rural areas where
there is lack of education in terms of health. They should concentrate on
teaching people about factors that cause flue, cold, fever, pain and headaches.
They should also educate people on how they can be prevented. In the
campaign they should increase awareness of a healthy lifestyle, importance of
regular exercise to stay fit. Moreover, they should even tell people the
advantages of having a healthy balanced diet and what components should be
a part of this diet. They should concentrate on the use of more fruits,
vegetables and grains rather than fast or junk food which is becoming a vital
part of people nowadays. They should also educate people on the importance
of cleanliness and personal hygiene, and how it helps to strengthen an
individual’s immune system.
The current market share of Ponstan is higher than Panadol in rural areas.
Hence they should concentrate more on rural areas while conducting their
awareness campaigns as these are the markets they can exploit to increase
their market share.
This campaign according to me would be very beneficial as currently none of
the competitors’ are concentrating in promotional campaigns. This will give
Panadol an edge over its competitors’. It will also improve the goodwill of
GSK as a whole not only Panadol. It will affect the reputation of its entire
product and increase GSK’s goodwill and public relations. As GSK currently
no public relation campaigns it will also cater to that need. It will trigger
consumer behavior positively towards their product as consumers will see
GSK in a positive light and a company which cares about the well being of its
consumers. It will be considered as a brand personality which represents
transparency, respect for people, patient-focus and integrity.
An advertising campaign for
Panadol:
As there have been no advertising campaign for
Panadol in 5 years, so it’s high time they should plan
an advertisement for it. It should be an informational
advertisement which should inform the consumers about the right usage and
dosage of Panadol. It should position its product as the safest product in the
market which should be used as a competitive edge over other competitors’.
It should differentiate from its consumers using its unique selling point which
is it’s “safety profile”. Moreover it should even use an emotional trigger
which would help fasten the purchase process it would even develop the trust
of consumers in the product itself. This can be done by either using a
qualified and famous doctor in the advertisements or a mother which who
won’t want anything less than best for her family.
They can even educate pharmacists on the safety profile of Panadol and ask
them to communicate this value to the consumers. The can even send
representatives to doctors all over Pakistan to prescribe their product more.
The basic use of Panadol is mild flu, fever, cold, pain and headaches. These
problems don’t usually trigger the visit to a doctor and people mostly resort
to self medication. Awareness that taking Panadol will be safe and have next
to no side effects will aid the purchase process as consumers won’t think
twice before buying and using Panadol. This will affect the consumer
behavior positively and increase the purchase of the product.
This will help first stage of the consumer behavior model of awareness and
problem recognition as it will help make people more health conscious they
will get more knowledge about their immune system and problems such as
cold, fever, pain etc. They will be more aware of the safety aspect of Panadol
and trust it more.
This will aid the second stage of the consumer behavior model which is the
information search stage. Being aware of Panadol and its usage and dosage
will assist the consumers. They will be more comfortable using Panadol as
currently none of its competitors are advertising their products.
Add variations to the product line:
Currently Panadol has two variants Panadol regular for pain and fever. And
Panadol extra for sinus. They should add more variants to it which should
cater specific needs of pain, fever, cold, flue, headaches etc. This will eat up
the competitors’ margin as there will be so many products to choose from the
Panadol range the market share of Panadol will rise and improve its brand
image. The basic objective of Panadol should be that it should be made so
available and so widely used that rather than being a choice for the
consumers it becomes the brand. People when need a painkiller the first name
that pops into their mind should be Panadol. By adding variations and more
products in their product line they would eat up the margin of their
competitors’
This will be beneficial because when the consumers search for information
and evaluate alternatives for their need of a pain killer. Panadol will be the
only option in their mind due to the vast advertisements and promotions. This
would be very beneficial for Panadol and its market share.
Control the post purchase behavior of consumers
Selling the product is not the end of the story. A happy
ending for a company is when the consumer is
overwhelmed and comes back over and over again for the
product. Companies should always under promise and
over deliver.
Panadol should make sure it maintains its quality and
efficiency so that the consumers are never dissatisfied
with the quality, because one tiny mistake can harm the
image created since years of hard work. Moreover they should have personal
contact with their consumers. They can provide a toll free customer hotline
through which they can provide feedback. They can even have sales
promotion stalls in supermarkets and big pharmacies through which a
qualified nurse can educate people about the safe usage and dosage of
Panadol. Moreover they can ask consumers about their experiences of using
Panadol and its effectiveness.
This will improve the effectiveness of the last stage of post purchase
behavior. As consumers will be more inclined towards using a medicine
which they believe cares about them and their response. It is a medicine
which people usually resort to while self medicating. Hence knowing the fact
that the company cares about them they will trust the brand more which will
give consumers confidence and belief in the efficacy of Panadol even after
purchase. This will lead consumers to re purchase the product and even
recommend it to their friends and family.
COMPETITIVE STRATEGIES USED BY
PANADOL
Introduction
Panadol is a GSK’s trade name for paracetemol. Paracetemol is a commonly
prescribed and a widely used drug. The
2 main functions that this medicine
caters to are that it helps in reducing the
fever and relieving pain. However in
today’s market the word paracetemol
has been replaced by Gsk’s Panadol.
Not only Panadol is one of the most
inexpensive medicine but also effective
and is safely given to children, adults
and even the aged without heavy side
effects. The main competitors of
Panadol are:
Dispirin (aspirin) which is a pain reliever
Brufen which is also a pain reliever and
Ponston is mainly used for the purpose of fever reduction.
Panadol can safely be said to be as the market leader. It is known throughout
the country and has been labeled as the medicine most sought after. Whether
in urban or rural areas everyone is well accustomed with the name .Panadol
has also been developed into 2 different products one for the children so they
have syrup and one for the adults which are the tablets. Panadol has also
increased its product line by creating Panadol extra, Panadol advance,
Panadol cold and flu max and more. Panadol is Gsk’s one of the renowned
health care brands which they define as over the counter medicine.
What Panadol has managed?
Panadol has managed to cover the market locally and the product is
known throughout. People are aware of the usage and the medicine does
not need promotion like its competitors
Increased product line; Panadol has managed to create more products
targeted for children, females, pain or flu.
Panadol is the most prescribed medicine of today. In other words the
major promotion that is being done is through the doctors who are in
other words are doing the job of brand ambassador.
As a market leader there are only few strategies that one can employ. Either it
can:
Expand market
Defend market share
Expand market share.
Panadol can be seen to employ the third strategy that is the expand market
share. Market share is defined as the percentage of the total market that a
company controls for a particular product. So expanding it would mean
increasing that percentage. Expanding the market share means widening
profit margins and increasing earnings for the company. Day by day as the
number of patients coming in increases so does the prescription.
Competitive advantage:
The main competitive advantage that Panadol has is that it is the most
inexpensive and has the least side effects. However, looking at the chart we
notice that dispirins is the cheapest drug. But it should be noted that disprin
has heavy side effects. And the main purpose why dispirin is taken for is the
thinning of the blood. While the other 2 that is Ponston and Brufen are
relatively expensive.
The competitive strategies:
Since Panadol is a market leader it does not really need to employ attack
strategies. So it focuses on employing defending strategies. Defensive
marketing strategies are majorly used by the market leaders to maintain the
market share. These strategies include:
1. Fortification marketing warfare
2. Counter attack
3. Marketing warfare through mobile defense
4. Strategic retreat
Medicine PKR
Panadol 132.59
Dispirin 47.00
Ponston 236.6
Brufen 430.
5. Marketing warfare through position defense
The strategy employed by Panadol is the first one that is fortification
marketing warfare. In this kind of strategy the company or the product leaves
no weakness for the attacker to exploit. Like for example Panadol provides
not only fast acting pain relief but also it reduces fever and it has the least
side effects as compared to its competitors such as Dispirin which although is
cheaper in price but has major side effects you cannot perform surgeries if
aspirin is taken.. Brufen is mostly focused on relieving pain and is relatively
more expensive than Panadol and the last one Ponston is used for reducing
fever. All of the competitors do not provide all the values that Panadol does
and therefore holds a unique position in the market.
However this type of defense can also be risky .a perfect position in defense
leads to the assumption that there will be no change in the market. So the
recommendation for Panadol in this case is to make sure that since medicine
like Dychlo and Calflam and rising and occupying a certain portion of the
market to spread awareness of their other products.
The four P’s:
Product The product provides 3 times more value as it effects quickly, relives
pain and reduces fever. Branding is an identity of the product. And the
product is a well established brand.
Place It is widely distributed in Pakistan and is an easily available over the
counter medicine.
Price Relatively affordable by the middle class, lower class and upper
middle class.
Promotion Does not need a lot of promotion most people are aware of the usage
and it’s widely recognized.
RECOMMENDATIONS
The one main disadvantage that Panadol has is that even though it has
diversified into producing a well range of products for women, children and
specially designed to relieve pain of specific parts
of body there is very little awareness of it. Few
people are actually aware about the different
products and not much is being done to promote it.
So what could be done is that a carefully designed
marketing plan should be implemented so people
would know that if they want a back and neck pain
reliever they don’t have to buy the assumed all in
one function tablet of Panadol but the specifically
designed Pandols back and neck pain reliever. Promotion can be done
educating through the advertisement and bill boards and since the product is
price elastic meaning everyone would buy as the need arises. Standees could
be kept at the hospitals and even at the pharmaceutical stores so even the
people who don’t really visit the hospitals as the trend is in Pakistan they
could get to know about the product through the pharmacy stores. Since men
are generally the main people to purchase medicines for the family.
Company`s Value definition practice of
segmentation, targeting and positioning:
What is Value?
Value can be defined as the satisfaction and the
utility that customer receives by consuming a
product for instance a chilled cola or a juice will
provide maximum value or utility on a hot day.
The basic aim of a marketing department in any
company is to maximize the value that it will be
providing through its product to the consumer.
A company does so because maximum value
means more satisfied consumer and the
consumer will be willing to pay more price for
the product which ultimately means more profit
and that is the core purpose of any business. So
it can be concluded that a company maximize its value so that it can cash it in
terms of profit.
The value can be measured in terms of CVP that is consumer perceived
value. CVP is the difference between total cost and total benefit for the
consumer. The greater the difference between both of them the higher will be
the opportunity for the company to cash the value
The fundamental objective of marketing is to create value. It does this in two
ways within the organization by making a contribution at different levels of
the firm. And outside the organization by creating value for customers.
Marketing plays this role by bringing the voice Of the Customer into the
organization.
What is segmentation?
Segmentation can be defined as grouping consumers by some criteria, such
that those within a group will respond similarly to a marketing action and
those in a different group will respond differently. Segmenting of market can
be done on different bases which include sex age race income educational
level marital status and etc. segmenting market is like dividing up the entire
market in different parts and then catering those different parts with different
offers.
What is targeting?
After segmenting the market, targeting is a process of selecting the segments
that the company will be catering basing their decision upon the profitability,
their core objective, their mission or any other thing which makes them
thinks that they should target this segment. Different strategies including the
marketing mix that is the four P`s are made according to these target markets
What are differentiation/positioning?
Differentiation is also a process of defining the value. As its name suggest the
basic aim of differentiation is to create an image of product in consumer’s
mind that makes the product
different than that of the
competitors. It can be described as a
something that triggers the consumer
or provide the consumer with a tool
they need in making purchase
decisions. Consumers have more choices now then they know how to handle
so companies must provide something that differentiates them with the other
brands available in the market. Companies must move away from
differentiation based solely on product and engage consumers in ways that
truly reach them. Companies must offer an option that competitor cannot or
does not. For example the Toyota corolla and Honda City are both 1300cc
cars but it is the success of both the companies that Toyota has differentiated
their car as rough and tough where as Honda has differentiated it as a luxury
car.
How GSK applies this Module?
At GSK the core value proposition that they defined in one word was
`safety`. Every product at GSK is based on this value proposition of safety.
And this becomes the point where they differentiate themselves from their
competitors. On asking a question that how do they define safety they
explained it by giving an example that if their product Panadol is compared
with other pain killers available in the market which includes Ponstan and
Disprin, Panadol has very less side effects. According to them it has side
effects but they are very few. So they provide safety in these terms. He also
added that the core ingredients of their product have are also based on their
core value proposition i.e. safety. According to the manager other brands
available in the market as pain killers have many side effects and may lead to
a liver problems but Panadol has ingredients which are much safer then the
ingredients in other brands. What he said was that every pain killer may cure
the pain but Panadol does it in a safer way. It does not make the blood too
much thin that may cause serious problems. On asking of the questions that
are they able to price their products, Panadol to be specific, on the basis of
the value that they are providing? So the manager replied by saying that they
are unable to charge high price or price according to the value they are
providing because the price module or the prices are dictated to them by the
Health Ministry of Pakistan. They have to obey that pricing so price goes out
of the game, no matter how much utility the Panadol is providing or how
satisfied the consumer is by having Panadol doesn’t affect their price or
pricing strategy. Like if they are told to sell the tablet at Re 1 they have to sell
it at Re 1. They can only increase their profits either by reducing their cost or
by increasing their market share i.e. sales.
They also added the word `transparency` when they were describing their
values which according to them meant that they do not hide anything like the
ingredients from their consumers they conduct researches and programs to
aware the consumers regarding the consumption of the drugs and pain killers.
They have conducted programs in rural areas to spread the awareness
When it came to segmenting, we asked the manager that how they segment
their market. The answer he gave was that they have segment the market on
the basis of types of pain, different needs and the age groups. Based on
different needs they have divided their market like cold, fever, cough, pain,
flu and others cardio, neurotic or dermatology problems. They cater each
segment with different product for example for the muscular pain they have
Iodex as their product which fights for the market share against vintogen and
other renown brands, for the age group 3 to 13 they have Horlicks for
dentistry needs they have sensodyne and macleans as their premium products
and like this they segment their market.
For differentiation or positioning the target market the manager said that they
differentiate on the basis of effectiveness of the product for example the GSK
`s product Panadol extra may be affective at areas where other brands such as
Dispirin may not work as effectively as Panadol extra. Efficacy of the
product is that point or trait where they differentiate or position their product
in the market. Being a market leader GSK positions Panadol as perfect
solution for fatigue or headaches .with their tagline and campaign with theme
of “Panadol your personal doctor” they have successfully positioned their
product as a solution or tablet that should be there in home every time.
How can they modify their current practices?
Starting with Value, GSK can improve their value to the customer by making
its execution more strong. The execution of value can be made stronger by
making the marketing mix that is the four P`s in align with their positioning
and carrying it well to the consumers from the making of the product till the
product is being consumed. This can be implied through careful assessment
of consumer research, GSK can make use more of their value by
communicating it more to the consumers for example in their advertisements
or in the tag lines of their products. They can highlight their less side effect
theme by reflecting it in their promotions and conduct more seminars and
awareness programs making the consumer aware of this value proposition.
They can also make doctors aware of this value so that doctors prefer their
product as compare to any other brand. They can communicate the efficacy
of their product to the consumers and the areas in which their products work
best.
When it comes to segmenting the market GSK mainly segments the market
on the basis of pain, different problems and age groups which was conveyed
to us by the manager. GSK can segment the market on other dimensions for
example they can merge their pain and age group segmentation by
introducing medicines designed especially for kids for example “Panadol
chotu”(Panadol for kids) which can be a chewable tablet or a tablet in
attractive colors. GSK can also segment market on dimensions which include
weather. In Pakistan only four different seasons are experienced using this as
the basis of segmentation GSK can exploit the market having different
variables of same product Panadol for different markets. This will also help
positioning the brand once again, like this will enhance their image of
consumer care at its best.
When it comes to differentiation and positioning GSK can enhance their
positioning by making Panadol as a need of every home, they can do this by
communicating Panadol as an item of monthly grocery list. They can do this
by communicating it through their promotional and advertisement channels.
Panadol can be distributed with any of a frequently used grocery item not t
relate with but only to show that Panadol has such importance in your life.
This will help GSK differentiating their Panadol with other brands in the
market which are merely perceived as typical medicines only. GSK can
conduct an activity to find out what are the actual uses of Panadol that may
not have been in their Knowledge for example Panadol is also used for
toothaches in which the tablet is crushed in to powder form and then after
diluting it in water the water is used to rinse the mouth thoroughly. The
activity like “what is a Panadol to you?” can highlight the uses of Panadol
which can be worked upon.
GSK’s Value Creation Effectiveness
As stated in the previous module total delivered value for a customer is
basically the difference between the total customer value and total customer
costs. Total customer value consists of image, personal, services and product
values whereas total customer benefits consist of monetary, time, energy and
psychic costs. Value creation is a part of operational marketing which
involves four main components which are
1. Product line management
2. Branding
3. Pricing
4. Distribution
Product Line Management: in these modern times segments to the
mainstream market requires a "whole product". This means having a product
that is complete and debugged. From a slightly broader perspective, this
means having a full set of complementary products that provide a complete,
workable solution to customers.
More generally, many marketers (and most sales forces) believe that a broad
product line is required to fully cover all (or most) customer / market
requirements, and to erect barriers to fend off competition. So, there is a
prevalent tendency to add product lines, extend product lines to more
categories , add products to lines, and add basic product choices (e.g.
features, size, color, and package) or quality variants to hit different price
points Many of these line extensions do, in fact, provide meaningful strategic
or tactical benefits
When assessed on a marginal cost basis, individual line extensions are
typically appealing. The logic is simple: since the overhead and infrastructure
(e.g. manufacturing facilities, sales force) is already in place, any contribution
(difference between price and the variable cost) that is generated falls
directly through to the bottom line.
Branding: branding is basically a process of giving a separate identity or
name to your
product which differentiates it from the competitor’s
product inside the consumer market. The effect which
a brand name has on the customer’s buying decision is
known as brand equity. A brand’s name must be
unique, memorable, and different from the competitors and must indicate the
core values of its products. Five main components of a brand are:
1. Identity: It is a set of unique brand associations that represent what the
brand stands for. These associations imply a promise to customers from
organization members. Brand identity should help establish a relationship
between the brand and the customer by generating a value proposition
involving functional, emotional or self expressive benefits.
Low HighQuality
2. Culture: it is the system of values that surround a brand much like the
cultural aspects of a people or a country.
3. Personality: this is a set of human characteristics that are associated with
the brand. It includes such characteristics as gender, age, socioeconomic
class, as well as human personality traits such as warmth and
sentimentality.
4. Image: brand image is related to how the brand is currently perceived by
consumers. In other words what is the reputation of the brand in the
marketplace
5. Character: this is related to its internal constitution, how it is perceived in
terms of integrity, trustworthiness and honesty. This is also related with
the promise of the brand to deliver the experience associated with its
name.
6. Essence: this represents the emotional elements and values of the brand.
Essence should be part of a long term positioning that does not change
with every communication.
Pricing: is a consequence of positioning. It is the monetary cost which a
consumer has to pay for consuming a particular product. Four main pricing
strategies are:
1. Premium pricing: is basically offering high quality at a high price
2. Penetration pricing: is offering high quality at a low price
3. Economy pricing: is offering low quality at a low price
4. Price skimming: is offering low quality at a high price
Distribution: is a process of making the product readily available for the
consumers. There are four main channels of distribution in marketing.
Channel 1: is the direct channel. Good directly transferred to the consumer
Channel 2: involves a retailer in between
Channel 3: involves a whole seller and a retailer in between
Channel 4: involves several distributors working together to make the
product available to the consumer.
Conventional marketing systems are the ones in which manufacturer
wholesaler and retailer work individually to satisfy personal interests whereas
vertical marketing systems are the ones in which the three parties work
together as one unit to deliver the product to the consumer.
EXISTING PRACTICE
Product line management: Panadol is the most profitable product for GSK.
As stated by Mr. AsadAhmed in the interview it is a “revenue generating
machine” for the company. How ever the company plans to build on the
reputation and market share of this successful product and introduce more
variations of this same product inside the market. Mr. Asad told us that
different variances like Panadol for women and Panadol for flu are to be
introduced in the future in order to destroy the market of their competitors
and possible drive them out of the industry. Hence the variances will need
another year for approvals and the advertising campaigns are already in the
pipeline and are being worked upon.
Branding: As stated before Mr. Asad emphasized on Panadol’s brand image
of being the safest drug in the Pakistani market. He believed that when
customers think of Panadol them instantly think of safety and lowest
possible side effects. However he also stated that this brand image of
Panadol’s needs a lot more awareness as most of the people/customers are
still not aware of this distinctive safety image of the drug.
Pricing: Mr. Asad told us that a tablet of Panadol costs a consumer just 75
paisa’s which is incredibly low. The company uses economical pricing
strategy, offering high value at a low price so that every patient in need
can afford it.
Distribution: Panadol is the most widely used medicine inside Pakistan and
this massive usage is an example of the drug being widely available
throughout the country, whenever and wherever the customer needs it.
GSK uses the distribution channel #3 which has been explained above.
The product is transferred from manufacturer to the whole seller, then to
the retailer and then finally to the consumer. This channel enables the
company to distribute its product in incredibly remote places at a very low
cost. According to Mr. Asad there are fifty intermediaries working with
GSK in order to distribute the product throughout the region
RECOMMENDED UPGRADE
Product line management: Panadol is a very vital product for the company
which has an incredibly good reputation inside the market. It generates large
sums of revenue and therefore this product line should be expanded further in
order to increase revenues and profits for the company. Although Mr. Asad
talked about the introduction of new variances but he was not sure of when
exactly they will be launched and what exactly would be the company’s
marketing plan these new variances. Our recommendation would be that the
company should not waste more time in introducing these new variances.
The environmental conditions of a huge city like Karachi have been getting
poor day by day. Attention paid by the local government towards improving
the health care facilities have drastically gone down hence there are now
thousands of local residents falling down in different illnesses such as flu
fever and body pain every day. The market for the new variances is huge and
it should be seen as an opportunity and a market gap by the company. New
variances like Panadol for flu and Panadol for women should be introduced in
order to provide specific and specialized treatments for flu and for women.
These variances would further communicate the company’s core value of
“patient first” to the consumers and would make them believe that the
company understands its responsibility of catering to every new need of the
consumer.
This extension of the product line would provide a number of benefits to the
company such as :
1 Leverage costs would be drastically reduced via economies of scale.
Economies of scale is basically a stage in which as the company increases its
output its average cost per unit tends to fall and move towards an optimum
point.
2 Competitors would be defeated by enabling one-stop shopping. By
introducing a cure for every disease, GSK would ensure that Panadol
becomes a brand for the whole family and customers do not feel the need of
taking a risk of consuming new unknown brands to cure their illnesses.
3 More choices would be offered in the market that is more closely tailored to
specific customer requirements. Different customers have different types of
illnesses hence new variances would be able to cater the need of every
customer individually and specifically.
4 Access incremental profit opportunities would be availed and higher profit
margins would be achieved. Since Panadol is already a market leader in its
market, people would not have much problems in trusting its new variances
hence there would be increased sales, revenues and profits for company.
On the other hand the company will face a few drawbacks as well. Each and
every item added to a line has associated costs. Some of these costs are
visible, some are hidden in traditional financial accounting, including:
1 Administration: the cost of setting items up for processing, reviewing their
status, and placing purchase orders
2 Cannibalization: diverting sales from other models rather than generating
true incremental volume
3 Inventory: disproportionate safety stock is required to maintain service
levels when volume is spread across multiple models
4 Repair parts: separate inventories of model-specific parts may need to be
provided throughout the market life of the product
Hence the company will have to manage these costs effectively in order to
fully avail the advantages of product line expansion.
Branding: as Mr. Asad pointed out in his interview Panadol’s brand image is
all about safety and minimal side effects. Although it is a healthy brand
image to have but it has to communicated to the audience and to the market
on a larger scale and majority of the users of Panadol still do not know what
does the brand of Panadol really stands for. GSK hasn’t introduced any
advertising campaign in the last 5 years. They communicated to their
customers through their products only. Hence the company needs to make
more use of digital and print media in order to communicate their brand
image clearly to the consumers.
Panadol is arguably the safest drug to use inside the market. According to Mr.
Asad all the other drugs in the market such as Ponstan and disprin carry a lot
of side effects. They cause severe headaches with additional dosages and
seriously damage the patient’s health. Whereas on the other hand Panadol
almost has zero side effects hence this image of intense safety should be
communicated to the consumers through different advertisement campaigns.
The advertisements do not need to be fancy or persuasive, they can be simple
and informative, informing the general public about the safety feature of the
brand of Panadol. A clear brand image will yield a number of benefits for the
company:
1. Easier client recognition: it will reduce client recruitment and
advertising costs so you can grow your business faster.
2. Expressing competitive advantage: it will provide an advantage over
competitors and protect the value of the business
3. Expressing position and space in the market: the company would get
known in the market as standing for and owning a position that its
competitors cannot claim
4. Increased response rates: Tapping client benefits in branding increases
the reaction rate from the company’s activities
5. Lowers costs of communication to clients: Brand consistency can
dramatically lower the cost of communicating to the clients
6. Recruitment of new employees: Great staff want to be associated with
and work for a great legal brand
Hence our recommendation for branding is that the company needs to be
more vocal about its distinctive brand image inside the market.
Pricing: As stated by Mr Asad the prices charged by GSK for their product
of Panadol are minimal. These prices are fixed by the Government of
Pakistan through its health ministry and pharmaceutical companies cannot do
much about them. Based on the value and the price charged, panadol’s
pricing would come under the heading of price penetration. Price penetration
is charging low prices and offering high quality in return.
According to Mr Asad although the government regulations would never be
removed from the pharmaceutical firms but if we make an assumption that
they are removed than GSK can charge around Rs20 for each set of 12 pills
and this would increase the company’s profits by 20 percent.
Increase in prices would defiantly lead to higher revenues because the
demand for Panadol in Pakistani market is inelastic i.e. changes in prices do
not drastically affect the demand of the product. An increase in price would
still keep Panadol as a very cheap product, one which constitutes a very small
proportion of a consumer’s income, plus although there are other competitors
in the market like ponston and disprin but still Panadol is the market leader
and just because of a minor increase in the price a consumer would not stop
buying Panadol put his/her health at a risk.
GSK enjoys a number of benefits by having a price inelastic demand:
1. There are several opportunities of increasing the prices of their products
inside the market. And as stated before this increase in prices would
almost certainly increase the revenues.
2. Increase in prices would not drastically bring down the sales units.
Since demand is price inelastic a slight increase in the prices would not
stop the consumer from the buying the product.
3. Profits are mostly constant i.e. they might be increasing at different
rates but most of the times they are increasing; very rarely there’s a
decrease and change in the pattern of profits.
4. Constant profits make financial planning a lot easier. Lack of
uncertainty helps a lot in making future plans and determining the
success of those plans in the future
Hence increasing the prices of Panadol can generate large sums of revenues
for GSK but the Governmental price controls do not provide permission to
the firm to do so thus there is not much the company can do in the pricing
department. However the company can invest in research and developing
new methods of reducing costs in order to increase its profits.
Distribution: distribution is basically a process of making a product
available to the consumers wherever and whenever they want it. There are
four main channels of distribution and the one which GSK uses involves the
transfer of good from the manufacturer to wholesaler to retailer to final
consumer. Panadol is a consumer good which caters to the needs of a large
number of people. Anyone can get sick anytime and can use the drug hence
the market for the product is massive. In order to facilitate this massive
market the product has to be distributed in masses to each and every
reachable location of the country.
There are a number of intermediaries involved in the distribution of Panadol,
50 to be exact. Whole sellers play a very vital role in the distribution of the
product. They are responsible for buying the product in bulk from GSK hence
the risk of a large sum of the product is lifted off from the shoulders of the
company and is transferred to the whole seller’s books.
Distribution of Panadol in the urban areas is quite satisfactory but it is the
remote rural areas in which the company needs to focus and improve its
distribution. The company needs to locate its specific distributors in these
rural areas in order to look after Panadol’s distributions.
Major problem in these rural areas is the cheap production of copies of
Panadol. Different copies of the drug are produced and sold to the general
public in these areas. Due to these copies the company not only loses its
market and potential revenue but also faces a risk of getting consumers post
purchase dissonance and a deterioting brand image of the product.
Employing sales personnel and regional heads in these remote areas would
provide a number of advantages to the company:
1. Increase of sales
2. Increase of revenue
3. Protection of brand image
4. Highlighting the company’s “customer first” value
5. Possibility of increasing its share of the total pharmaceutical market of
the country
Being a market leader of the pharmaceutical market, it is the responsibility of
the company to access these remote areas and sell their products as this will
not provide extra revenue but will also provide an upper hand over the
competitors in the market. It will also benefit the local residents as well as
they are being forced to use the copies of the real product which are not at all
as effective as the original drug itself. Hence improving distributions in these
areas is crucial to the company’s future progress.
COMMUNICATING VALUE
Why is there a need for marketing communication?
Companies need to develop strategies to improve brand image and brand
awareness. The important aspect of spreading brand awareness and brand
image is through communication. Companies need to establish a
communication channel to win the new customers and retain existing
customer. This communication is not restricted just to customer but also
stakeholders in the value network. Communication is achieved through
advertisement, sales promotion, public relation exercise, direct marketing and
interactive marketing.
Most organizations waste money on marketing communications because their
activities are fragmented and their messages are not relevant. Much of the
budget spent is not geared to clearly defined objectives and the outcomes are
not measured.
Effective marketing communications requires;
A clear understanding of objectives
Careful planning
Coordination of the right communications tools
Development of the right messages
a strategic and tactical approach, and
Measurement of results.
Interactive Marketing Methods
Interactive marketing is a one to one marketing
process that reacts and changes based on the
actions of individual customers and prospects.
This ability to react to the actions of customers and prospects means that trigger based
marketing is dramatically more effective than normal direct marketing. Various media
are used for direct marketing, but the key is the interaction and immediate feedback or
response from consumers. A few channels, through which IM is carried out, are as
follows
Direct mail
Telemarketing
Magazines
Electronic media
There are 8 Steps that are to be followed to design a successful
communication program
1. The first step is identifying the target audience. The target audiences are
the existing customer or the potential new customers. Target audience
identification is essential for further development and overall success of
the communication program. Once the audience is identified, the next
part is assessing the present company or brand perception within the
target audience. Based on the results from the audience analysis the
message should address the requirements.
2. The second step is to set specific objectives for the given
communication message. This objective could be to enhance existing
image, convey attribute, or encourage a consumer to act. The objective
can have a cognitive, affective or behavioral response.
3. The third step is the design of the message. The designing of the
message follows the objective of the message. The design of the
message has to address the following four points, content of message,
message structure, and message format and message source.
4. The fourth step is the selection of the communication channel. The
channel must be appropriate to carry the message to the target audience.
For pharmaceutical companies, their sales people are the most effective
channel in reaching the target doctor audience, instead of placing
billboards.
5. The fifth step is related with the financial estimates of the whole
expenditure. Companies need to decide budget of sales promotional and
other activities. The common methods followed are an affordable
method, percentage of sales method, competitive parity method, and
objective-task methods.
6. The sixth step is the decision relate to the communication mix.
Companies have limited budget, so they need balance expenditure
among advertising, sales promotion, public relation, sales force and
direct marketing. The relevant choice of the communication mix is
highly dependable on the industry the company is operating.
7. The seventh step measuring results of the communication process. It is
very important for companies to keenly follow the outcomes of the
communication process. The results could be increased in sales, change
in attitude or image of the brand.
8. The eight steps are managing the integrated marketing process.
Companies cannot afford to continue one medium approach to achieve
desired communication effect. Companies must integrate all the
available tools as to reach a wider audience and effectively
communicate about brand and products.
Marketing communication cannot be considered in isolation. It is an integral
part of any companies overall growth process.
CURRENT COMMUNICATION PROGRAM
OF PANADOL
Upon our visit to GSK for our final term report, we met the Assistant Brand
Manager of The Wellness Program, which includes Panadol, Eno and Iodex.
We questioned him about the communication programs that were carried out
for Panadol, that how the firm does promotes the product, maintain sales,
advertises, creates and maintains PR and how effectively is all of this carried
out. We asked a few questions related the topic, to which he answered as
follows.
Q1. How do you communicate your message?
Panadol promotes its safety profile. We make sure our consumers are aware
of the benefits Panadol has over other competitive products. We can’t say
that there are no side effects of Panadol, but they are very less as compared to
other products in the market that promise the same results.
Q2. The Manager told us that Panadol is recommended by the doctors to their
patients when they complain of pain and headaches. On this we posed the
question that an average man wouldn’t go to a doctor if he has a headache, or
he wouldn’t be aware of what painkiller they are taking.
We have expert marketing teams that go and educate the doctors about
Panadol. And as far as an average man is considered, we have programs that
educate and make the chemists more aware, so that they recommend Panadol
to such people. Many people actually listen to what the chemist says as well
therefore we conduct such awareness programs too.
Along with this, as Panadol puts huge emphasis on its Safety Profile, the
doctors are chemists are specifically taught about the proper dosage of
Panadol.
Q3. What does the firm do for advertising and promotions of Panadol,
considering it’s a pharmaceutical product?
The Assistant Brand Manager told us that there have been no recent
advertising or promotional campaigns for Panadol. Panadol is already an
established brand so there is no need to promote the product further as such
as it has already penetrated in the market.
There have been no advertising campaigns for the past 5 years for Panadol;
however, they do have a few upcoming advertising promotional projects
which are in the process of approval from the government. It is usually a very
lengthy process at takes up to a year or so.
Q4. When we asked about how they go up against their competitors, we came
to know about their strategy of promoting Panadol in certain areas.
The Manager told us that through research, they have found that Ponston (a
competitive Product) is more popular in rural areas. So they carry out their
lecture and awareness sessions in rural areas. They cannot use electronic
media in those areas so they send their teams to carry out such interactive
educational sessions that are helpful to the consumer as well as are a good
way to promote Panadol.
Q5. What sort of advertisements have you planned when the government
approves your campaign?
Once we have a GO from the government, we will definitely focus on our
advertising programs. Also, people normally know about the product, for
example, Iodex, Panadol, Eno, Horilicks, but they don’t know what GSK is.
They don’t know about the main company. So we will focus on making
people aware of our company as a whole as well so that our other existing
products and upcoming new products make a place in the market.
Q.7. How is the PR of GSK over all?
We do not need PR as such right now; therefore we don’t have a very strong
PR. It depends on our marketing strategies, if we need it we will increase the
PR accordingly and we will do it easily.
Q6. How do you manage your relations with consumer? Is there any direct
contact that you maintain?
No, we don’t have direct contact with out end consumers. But we do conduct
surveys every now and then that help us know if the consumers are benefited
properly or not. I think that a lot more can and should be done in this area and
we plan on working on this as well.
The manager told us that next they plan on focusing on promotions and
awareness through advertising campaigns. The Ads will be functional,
Informative and emotional in nature, given the culture and traditions. We can
definitely make the whole campaign better, including research, PR,
promotions and advertisements, but our immediate focus will be improving
our advertisements.
ANALYSIS AND RECOMMENDATIONS FOR
GSK
IMPROVING PERSONAL RELATIONS
Positive PR doesn’t just happen. It’s built!
For pharmaceutical companies, managing public relations are an ongoing
challenge. Although the Brand Manager of GSK Pakistan ltd thinks that
whenever there will be a need for PR, they will create it; we believe that they
should maintain PR throughout. Here are some to guidelines to follow when
navigating the challenging climate of pharmaceutical PR.
Consolidate Brand Positioning
GSK should not just position the product, but also position the brand as a
whole. It should find mediums that not only inform the consumers of the
product, but also create awareness that the product will be beneficial for them
in many ways. Though GSK runs many campaigns to do so, having proper
PR would help them further in this area.
Build Trust in an Environment of Skepticism
Trust is very important in the pharmaceutical PR. However, companies
should expect the customers to be skeptical of the product. It is in the
company’s hands to change the perception of the product then
Keep Legal Involved, Every Step of the Way
Social media and today's PR go hand in hand. However, the legal climate for
platforms like Facebook and Twitter remain ambiguous.
Dave Folkens, a Marketer wrote
"In absence of definitive social media policy from FDA, pharmaceutical
companies need to work closely with their legal team along with marketing
professionals (whether internal or external) with a strong understanding of
social media engagement to ensure that the spirit of the laws are being
followed despite a gray area until formal social media guidance is released”
Many pharma companies are finding new ways to connect to physicians
through secure social networks. GSK should focus on this as well in order to
improve information sharing.
IMPROVING ADVERTISEMENTS
The assistant brand manager of GSK Pakistan Ltd. admitted that there has not
been much emphasis on the advertising campaigns of Panadol; however, they
plan on changing that now. Though the brand has not been seen on any media
in Pakistan for the last few years, the firm has asked for the approval from the
government regarding the matter. Since that is a lengthy process, the firm is
not expecting any responses for at least 6 months to 1 year.
GSK Pakistan can choose from several types of advertisements. Although it
has to be extra careful in terms of advertising its drugs, in this case Panadol.
1. One type is the “help-seeking ad,” which provides only information
about a medical condition and encourages patients to contact their
physician but doesn’t mention a product.
2. Another category is the “reminder ad,” which includes the product
name; this type may provide information about strength, dosage form,
or price, but it doesn’t mention the indication or make any claims.
3. The third and most common type is the “product claim ad,” which
mentions the product and its indication and includes efficacy or safety
claims.
Channels used to distribute information regarding Panadol can include
television, print (magazines, newspapers), radio, the Internet, and other forms
of mass media (billboards and direct mailings).
Promotional brochures can also be supplied to health care professionals to
distribute to patients.
DTCPA have following main characteristics, that will be in favor of GSK pak
Ltd. and also beneficial for the consumers.
o They inform, educate, and empower patients.
o They encourage patients to contact a clinician.
o They promote patient dialogue with health care providers.
Hence, increasing advertisements through these methods is necessary for
GSK at this point.
IMPROVING CONSUMER CONTACT
DTCPA (Direct to Consumer Pharmaceutical advertising) has grown rapidly
in the past few years and is one of the most prominent health communications
that the public encounters. Through DTCPA, companies promote their
prescription products directly to consumers. Although many are against this
method, several vote in its favor as it helps create immediate awareness in the
consumers.
This cannot be done for all pharma products, however, in case of Panadol;
this could prove to be beneficial for the company as well as the consumers.
GSK Pakistan Ltd should carry out campaigns to not only recommend their
product, but also to gain feedback on how the already present consumers feel
about the effectiveness of the product. Thus GSK Pakistan Ltd. should focus
on direct communication with the consumers.
CONCLUSION
GSK is one of the leading pharmaceutical companies of Pakistan and Panadol
is arguably its biggest source of revenue. In this report we analyzed the
product of panadol through the three major modules of marketing,defining-
creating-communicating value. After the analysis we provided
recommendations and upgrades which might help the product prosper further
in future. However the analysis is based upon the information provided by the
company’s marketing department only and for complete feasibility analysis
of the problem and recommendations the financials of the company would
also be required.
