Delivery in day(s): 5
Diploma in Business (Marketing)
Unit Number and Title
Marketing planning for glaxosmithkline
GlaxoSmithKline (GSK) is the pharmaceutical company based at UK that focuses on making researches in order to develop innovative health care products. The company is a merger of Glaxo Wellcome plc and SmithKline Beecham plc in 2000. GSK has acquired Novartis vaccine business and work in collaboration to each other in the same sector. The company works in close association with NHS and some of the health care groups and charities. The mission statement of the company suggests that GSK focuses on serving the people by providing them longer and healthier lives with their products. The company has a clear strategy to achieve the aims. GSK headquartered at Brentford, West London and the manufacturing units are located all over UK. The company practices according to the proper code of conduct framed by the same. It functions with the consideration of all the rules and regulations and concentrates on maintaining the ethical behaviour towards the employees as well as the customers. The company works in association with many third parties in order to outsource some of the operational functions.
As far as the company’s strength is considered, the company has a great and strong brand image all over the world where it serves. GSK made huge investment on the R&D department of the company as all the work of the company depends on the researches they do.
This report revolves around the marketing plan of GSK in order to introduce a new vaccine product into the market. The report focuses on all the important aspects associated with the marketing practices. It discusses about the analysis of the external as well as the internal factors of the company that affect the marketing plan of the same. It also concentrates on the importance of planning in marketing along with the ethical issues that can be raised during marketing of the product in the pharmaceutical industry.
Marketing is the very broad term that consists of all the activities related to making people aware of the product’s existence. It is an action or the collection of activities that have been conducted in orderly basis to promote and sell the product or services. Planning has to be done in order to conduct the marketing activities in an organisation. Marketing planning is the blueprint or the map that consists of the orderly activities and plan of the marketing for the coming year. It involves all such activities that need to be done in the next year to raise the sales or to launch a new product.
Market is dynamic in nature and the environment of the market is very fluctuation according to the situations. Therefore, the changes in the marketing planning perspectives are expected. Changes in the marketing planning are according to the current market requirement. (Baines, 2011)
Changing perspective in marketing planning:
Marketing capability is the phenomenon that involve human assets, market assets and the organisation assets. It is the process that argues about the integration of the marketing planning activities with the other functions of the organisation. It is the ability of other functions of the organisation to participate and support the activities of marketing. As far as the GSK is concerned, the company mainly focuses on providing services to the patients by working as a team. The capability of the firm can be evaluated by analysing its financial, physical and human resource capability. (Carroll, 2009)
GSK capabilities for planning its future marketing activity are:
Organisational auditing refers to the process of checking and analysing the organisational functions in order to find out the errors and the opportunities in the organisational processes. The auditing result of the organisation helps in making the plans for future. They form the basis for formulation of the new policies and structure by modifying the old ones that are hampering the processes before. Auditing is done on the internal as well as the external factors of the organisation. The internal factors include the suppliers, employees and the customers while the external factors include all the factors that are related to the outer environment of the organisation. Some of the techniques that are exclusively used to analyse the internal factors are ratings, strengths, IFE matrix evaluation etc.
The major methods that are used by almost all of the organisations to analyse the external factors of the organisation that affect the marketing plan are:
SWOT analysis: This analysis helps in analysing the strength, weakness, opportunities and threats of the organisation. Strength and weakness are the internal factors of the organisation while opportunities and threat can be analysed by the external environment of the company. (MBA Skool-Study.Learn.Share., 2016)
PESTEL analysis: PESTEL analysis is the process that supports the organisation to know about the political, economical, social, technological, economical and legal situation that has their impact o the functioning of the organisation as well as on the marketing plan.
Porter’s five forces: Porter’s five forces is the method given by Porter to analyse the marketing situation of the company’s environment. It involves five forces:
The methods that have been used for organisational auditing are:
SWOT analysis of GSK:
Porter’s five forces
Organisation audit of GSK by BCG matrix:
According to the analysis of the external factors of the company that affects GSK marketing planning, it has been identified that the company has lot more competitive advantages over the other competitors of the industry thus the company is in growth stage and earning much revenue. Another concern is about the industry, as discussed earlier that the government is supporting the pharmaceutical industry in UK so the industry also have high growth rate resulting in provision of lot more opportunities for the companies operating in this industry. Thus GSK falls under the category of “STAR” in BCG matrix.
According to the case, GSK wants to introduce a new product vaccine into the market. Therefore, it is very necessary for the management to know about the barriers in the marketing plan so that they can be overcome during the process of marketing planning. Some of the barriers have been discussed below:
There are some other barriers that need to be assessed at the time marketing planning:
GSK has to concentrate on overcoming the above barriers at the time of framing the marketing plan. The company needs to come up with some of the strategies so that the marketing team can work in association with the other operational departments. This will facilitate the team to have all the information that has been required to frame the marketing plan. Another consideration that should be kept in mind by the manager of GSK is that they should have the proper knowledge about differentiating between the short term marketing tactics with the long term marketing strategies. They need to adopt the tactics and the strategies according to the plan that has been discussed. Some of the organisational barriers like dependency of the organisation on third party may restrict the process of marketing planning. To overcome this barrier management should maintain the records and data of the company processes that are outsourced. This will help the marketing team to access data effectively and timely. The strategies of the competitors are the most common and the critical part that needs to be taken care of. The management of the company should be aware of the strategies of the competitors at the time of development and introduction of the new product. (Baines, 2011)
GSK is the company with many competitive advantages over other competitors in the industry. The company doing very well in overcoming its barriers for the successful implementation of the marketing strategies. GSK has increased investment in digital communications and has a specific digital marketing team to support brand managers. The company believes allowing consumers to engage with the brand at their convenience is where the future of healthcare marketing lies, and it hopes the focus on digital innovation will change young marketers’ perceptions of the industry
Marketing plan for introducing a new product vaccine by GSK has been discussed below:
According to the case, the objective of GSK is to launch a new product vaccine that reaches up to most of the health care centers in order to protect people. It takes 5-6 months to attain this objective.
Marketing audit is done in order to find out the current situations of the market. This suggests that market is full of competition.
Strength: The company has a great brand image.
Weakness: Prior controversies regarding ethical marketing and introduction of the new product is risky
Threat: failure of the innovation.
Opportunity: Expansion of the market area to be served.
The market is very much competitive
Product: The product that GSK is launching is the new vaccine for the disease.
Price: The price of the product is 1 pound sterling. The strategy that has been used to decide the price of the product is penetrating pricing strategy. This is because the company focuses on producing low cost product for the customer and need to keep the price low so as to penetrate the new product into the market.
Place: The place of the product involves the place of availability. The vaccine is available in most of the hospitals and health care centers and should be accessed by the people after the permission of the government.
Promotion: GSK has used the methods of promotion such as advertising through Radio and television so that it can reach to the general people and another method of personal selling has been used so that they can convince the health care owners to buy the vaccine by providing them the full information about the contents. (Beamish, 2006)
As far as the consumers of the product are considered, the vaccine is for the children and the company believes in serving the people of all caste, race and religion.
The end consumer of the vaccine is the general public in marketing sense the target of GSK to launch the vaccine is the government health care centers like NHS.
The company believes in serving all the people in the world. The marketing strategy of the company is to use the promotional tools like advertising to make all the people aware about the vaccine. The strategy of the company to target NHS results in broader reach of the product.
Marketing plan act as the blueprint to follow all the activities of marketing for a product in orderly basis. It is very essential for the organisation to plan for the marketing activities. The discussion below suggests the importance of framing the marketing plan:
New product development is the process of developing a new product by the organisation in order to enhance its business. Ansoff matrix is the technique that suggests the different methods growth of the organisation.
According to the matrix, new product development is the technique that can be used by GSK to grow. This is because the company already has market penetration and market development. GSK serves the customers all over the world hence there is no scope of market development. The different techniques that can be used by GSK for new product development are:
Pricing policy: Pricing is the process of associating the price with the product. The price of the product can be affected by many internal and external factors. In the above case, GSK is price taker as the bargaining power remains in the hands of the big buyers like NHS.
Different pricing policies:
The different pricing policies have been mentioned in the figure. According to the figure, the pricing policies that have been used by GSK would be penetration. It is because the company is launching a new product. It is necessary for them to reach the broader market. Another reason of choosing this strategy is that the company believes in serving the people of all kinds so, it cannot mark the prices so high. (Espejo, 2012)
Distribution: Distribution refers to the methods that have been used by company to supply the product to the customers. GSK has been recommended to use the multiple channel strategy in order to reach the customers as the company serves at global level. The strategy is known as indirect strategy. The distribution or the transport method used should be safe. Hub method can be suggested. This method allows the company to transport its product to a single hub, from where further distribution takes place. (Milligan, 2012)
Communication mix: Communication mix involves all the elements that associates with the communication of the product to the market. Following are some of the elements:
According to the case, GSK should go for personal selling and advertising as the techniques to communicate about the product. Personal selling allows the company to make contacts with the health care centres and advertising help the company to create awareness about the vaccine to the general people.
The factors that affect the effective implementation of the marketing plan have been discussed below:
Ethical issues refer to the unethical practices that have been done by some of the companies in order to enhance the business or harm the public. It is essential for all the companies in pharmaceutical industry to follow some of the rules and regulations in marketing of the product as their product may severely affect the person if communicated wrongly. (Poon, 2012)
Some of the issues that can be raised during the marketing of the product are:
Invasion of privacy: At the time of market research, Companies come in contact with many professional and private information that need not to be leaked. The companies should make use of that information in an ethical manner.
Targeting the vulnerable: It is also unethical on the part of the pharmaceutical companies to target a particular vulnerable class of people such as children and women. The companies should not target these vulnerable at the time of marketing a product.
Price fixing: It is another important and severe ethical issue. Some of the competitors mutually decide the price of the product that may affect the market and the people.
Misleading advertisements: IT is very unethical to mislead the audience by advertising and claiming such things that are not true.
GSK is the company that focuses on maintaining the ethical behavior in the market. The values and beliefs of the company suggest that it believes in providing services to the people with integrity and commitment. The company has a proper code of conduct even for the global level to maintain the ethical practices in advertising and marketing. The global code of practices for promotion and customer interaction outlines the company’s rules and policies regarding the ethical marketing practices. (Gsk.com, 2016)
Whistle blowing mechanisms in the company allow all the employees to get advice or report on the suspected ethical practice by anyone in the organisation.
The company also plays a proper role in marinating the ethical relationship with the supplier and the third parties. Other than this, the company’s anti-bribery and labor rights standard have been written. These standards need to be followed by the third party working with GSK.
The company is committed with the upholding rights of the humans under OECD guidelines. The company also acts as the signatory with the UN global compact, a voluntary global standard on human rights, labor, environment and anti-corruption.
Overall, it can be said that the company is very much committed to the lateral code of conduct and works with integrity in terms of responding to ethical issues.
Marketing planning is very essential for the organisations. GSK is the company that have the great brand image with strong marketing strategies. In order to launch a new product like vaccine, company needs to generate a full marketing plan as it help the company to match the objectives with the actual performance. Before framing a marketing plan, it is necessary for the company to study all the external as well as the internal factors that may have their impact on the same. some of the ethical issues need to be considered at the time of making the marketing plan. GSK responds to these issues in positive manner. The company considers and follows the strict code of conduct in its practices of marketing.
Baines, P. (2011). Political marketing. London: SAGE.
Beamish, K. (2006). Marketing planning. Oxford: Elsevier Butterworth-Heinemann.
Carroll, J. (2009). The pharmaceutical industry. Detroit: Greenhaven Press.
Espejo, R. (2012). The pharmaceutical industry. Farmington Hills, MI: Greenhaven Press.
Milligan, S. (2012). Marketing strategies. Delhi: Research World.
Rollins, B. and Perri, M. (2014). Pharmaceutical marketing. Burlington, MA: Jones & Bartlett Learning.
Dyer, O. (2006). GSK breached marketing code. BMJ, 333(7564), pp.368-368.
Mulinari, S. (2016). Regulating Pharmaceutical Industry Marketing: Development, Enforcement, and Outcome of Marketing Rules. Sociology Compass, 10(1), pp.74-86.
Poon, P. (2012). Ethical and Social Issues in Global Marketing. Journal of Global Marketing, 25(1), pp.1-2.