The Marketing mix of GlaxoSmithKline analyses the 4Ps of GlaxoSmithKline, which includes the Product, Price, Place, and Promotion of GlaxoSmithKline. GlaxoSmithKline is a public company of British origins. It is associated with the biotechnology and pharmaceutical industry and deals with healthcare products. The company was established after a merger between two giants, SmithKline Beecham and Glaxo Wellcome, in 2000. Currently, it ranks first in the United Kingdom and as one of the top five forces in the global market regarding the most prominent pharmaceutical corporations. Some of its rival companies are as follows-
- Sun Pharma Industries
- Roche Holdings
- Johnson & Johnson
- Bristol-Myers Squibb
- Abbot Laboratories
- Type: Multinational pharmaceutical and biotechnology company
- Industry: Healthcare
- Founded: 27 December 2000
- Founders: Sir Henry Wellcome, Sir Joseph Nathan, Allen Lane, and Andrew Duncan
- Headquarters: Brentford, United Kingdom
- Area served: Worldwide
- Key people: Emma Walmsley, Chief Executive Officer
- Number of employees: Over 99,000
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GlaxoSmithKline Product Strategy
GlaxoSmithKline is a research-based multinational company. Its healthcare and pharmaceutical sections are committed to providing a better life by offering the best options. The company’s product side is manufacturing, researching, and developing medications and dosage-form formulation. It has a diversified product range that includes-
- Pharmaceuticals – GlaxoSmithKline is involved in manufacturing products that would be helpful for diseases like mental health, diabetes, infections, cancer, and asthma. In the year 2013, its best-selling items were Avodart, Advair, Augmentin, Flovent, Lamictal and Lovaza. Several medications have been developed at its facilities and are sold as generics. For bacterial infections, it includes mupirocin and amoxicillin; for HIV infection, zidovudine; for herpes virus infection, there is valacyclovir; and for parasite infections, it has albendazole. Medicines are also available for diseases like malaria, gout, leukemia, gastroesophageal reflux disorder, depressive disorder, epilepsy, and migraine.
- Consumer Healthcare- It includes oral-healthcare items like Aquafresh, Sensodyne, and Maclean’s toothpaste and nutritional drinks like Boost and Horlicks. It has Abreva, nasal strips, and nicotine replacements like Nicorette for treating cold sores.
- Pharmaceuticals: GSK develops and markets a wide range of prescription medicines for various therapeutic areas, including but not limited to Respiratory diseases, Infectious diseases, Vaccines, Oncology, Immunology, Cardiovascular and metabolic diseases, Neurology, and central nervous system disorders
- Consumer Healthcare: GSK also produces over-the-counter (OTC) consumer healthcare products, which include: Oral health products (e.g., Sensodyne, Parodontax), Wellness and nutrition products (e.g., Horlicks, Boost), Over-the-counter medicines (e.g., Panadol, Voltaren)
- Vaccines: GSK has a significant presence in the development and manufacturing of vaccines for various diseases, including Influenza vaccines, Vaccines for childhood diseases, Vaccines for travel and endemic diseases
- Pharmaceuticals Manufacturing: GSK manufactures pharmaceutical ingredients and products for its use and other pharmaceutical companies on a contract basis.
GlaxoSmithKline Place Strategy
GlaxoSmithKline has a global presence in nearly one hundred and fifteen countries and is served by an efficient workforce of almost ninety-nine thousand employees. Its headquarters base is at Isleworth in the United Kingdom. One of the companies believes its largest markets are the United States. Its headquarters is in Philadelphia and North Carolina, and it has a division for consumer products business in Pennsylvania.
GlaxoSmithKline depends heavily on acquisitions to develop its Research and Development facilities and is one of the largest investors in the world for R&D. It is also the biggest funder of R&D in the private sector of the United Kingdom. It has R&D sites in the United States, United Kingdom, India, France, Croatia, China and Canada.
The company has facilities for biopharmaceutical products in Hungary, Germany, Canada, Belgium, and the United States. Its manufacturing sites for prescription products are in the United States, Ireland, United Kingdom, Singapore, Romania, Poland, Malaysia, Italy, France, and Australia. It has various manufacturing units and packaging facilities for consumer products in Kenya, Brazil, Canada, the United States, Ireland, and the United Kingdom.
GlaxoSmithKline has a vital distribution facility, and its consumer products are very quickly accessible and available in supermarkets, hypermarkets, and other retailers. Its over-the-counter medications are available at prescription stores and medical facilities.
- Pharmaceuticals: GSK developed and marketed various pharmaceutical products, including prescription drugs and vaccines, across various therapeutic areas. Some of their notable pharmaceutical products included treatments for respiratory diseases, HIV/AIDS, vaccines, and more.
- Consumer Healthcare: GSK had a significant presence in the consumer healthcare sector, offering various over-the-counter (OTC) products. These products included well-known brands in areas such as oral health (e.g., Sensodyne, Aquafresh), wellness (e.g., Centrum vitamins), and over-the-counter medicines (e.g., Panadol).
- Vaccines: GSK was a significant player in the global vaccines market, producing vaccines to prevent diseases such as influenza, hepatitis, shingles, and various childhood illnesses.
- Specialty Pharmaceuticals: GSK also had a portfolio of specialty pharmaceuticals for treating rare diseases and other specialized therapeutic areas.
- Pharmaceutical R&D: In addition to its existing product offerings, GSK strongly focuses on research and development (R&D) to discover and develop new drugs and therapies.
GlaxoSmithKline Pricing Strategy
By the end of the year 2015, revenues and sales of GlaxoSmithKline were estimated at 27206.91 million dollars, and its total profits were supposed to be at an estimated 9521.22 million dollars. Market Capitalization was 99600 million dollars.
The company’s primary mission is to make a difference in the global market through its product portfolio and innovation. It wants its products to reach as many people as possible, so it has adopted a very reasonable pricing policy to remain affordable to all its users. It has kept its minimal profit margin to maximize customer benefits through rational prices.
Here’s an overview of their pricing and marketing strategy here:
- Value-Based Pricing: GSK strongly emphasizes value-based pricing, aligning the prices of its pharmaceuticals and healthcare products with the perceived value they offer to patients and healthcare providers. This approach considers the product’s efficacy, safety, and potential impact on patient outcomes.
- Tiered Pricing: GSK often adopts a tiered pricing strategy to address the diverse economic conditions in different markets. They may adjust prices based on the income levels and affordability of the target population, ensuring that essential medicines and vaccines are accessible to a wide range of consumers.
- Differential Pricing: GSK may implement differential pricing strategies where the same product is priced differently in various regions or for different customer segments. This approach considers market demand, local regulations, and competitive landscape factors.
- Competitive Pricing: GSK monitors competitor pricing and market dynamics to maintain competitiveness. They may adjust prices to respond to changes in the competitive landscape while ensuring that the pricing remains consistent with their brand positioning and product quality.
- Discounts and Rebates: GSK may offer discounts, rebates, and volume-based pricing incentives to healthcare institutions, wholesalers, and pharmacies, encouraging them to promote and distribute GSK products effectively.
GlaxoSmithKline Promotion Strategy
GlaxoSmithKline recognizes the value of a good marketing policy, including advertising, and, as such, has adopted several marketing strategies used to market its consumer and oral healthcare products. It has taken the help of electronic media, and its commercials for nutritional healthcare products like Boost and Horlicks are shown on most television channels and aired on the radio. Print media is a vital tool for advertising; hence, ads are printed in magazines and newspapers and displayed on billboards.
GlaxoSmithKline has roped celebrities like Kapil Dev, Virendra Sehwag, and Sachin Tendulkar to act in commercials and endorse its products.
GlaxoSmithKline (GSK) employs a multi-faceted promotion strategy that includes targeted marketing campaigns for distributors, educational initiatives for healthcare professionals, and digital engagement to raise awareness about their pharmaceuticals and healthcare products.
They leverage their strong brand reputation and invest in research-backed marketing to communicate the benefits and efficacy of their offerings to healthcare providers and consumers. Additionally, GSK often collaborates with healthcare organizations, public relations, and advocacy groups to support, foster trust, and promote health and well-being.
Some Recent Video ads and Print ads of GlaxoSmithKline are:
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