GSK Marketing Report

GLAXO-SMITH-KLINE

PANADOL MARKETING STRATEGIES

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 cooperation 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 is not so much they have to do in terms of brand

brand so there 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.

WHEN DO YOU CONSUME PANADOL? HEADACHES FEVER

3%

18%

23%

PAIN PRESCRIBED BY DOCTOR

18%

OTHER 39%

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.

INCASE OF FEVER, HEADACHE AND PAIN, I GENERALLY CONSULT A DOCTOR. STRONGLY AGREE AGREE

12% 9% 21%

MAYBE DISAGREE STRONGLY DISAGREE

39% 18%

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.

WHY DID I CHOSE PANADOL? FRIEND/ FAMILY MEMEBR TOLD ME

8%

ADVERTISEMENT 43%

35%

SELF JURISDICTION OTHER

15%

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.

HOW FAST DOES PANADOL TAKE TO START WORKING LESS THAN 15 MINUTES

6% 6%

15-25 MINUTES 33%

25-40 MINUTES MORE THAN 60 MINUTES

55%

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. Medicine Panadol Dispirin Ponston

PKR 132.59 47.00 236.6

Brufen

430.

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. 2. 3. 4. 5.

Fortification marketing warfare Counter attack Marketing warfare through mobile defense Strategic retreat 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

Place

product is a well established brand. It is widely distributed in Pakistan and is an easily available over the

Price

counter medicine. Relatively affordable by the middle class, lower class and upper

Promotion

middle class. 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. 2. 3. 4.

Product line management Branding Pricing 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. 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

Quality

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.

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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.

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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,definingcreating-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.