MARKETING MANAGEMENT

PROJECT ON GLAXO SMITHKLINE

PRESENTED BY:
Sweta Srivastava
Subhajit Mitra
Pgdm :13-15,sec:c
PRESENTED TO:
Dr. MUKESH PORWAL

Sector: Medical
Industry: Large Cap Pharma
Type: Public Limited Company
INDIAN PHARMA INDUSTRY
FRAGMENTED BY 330
SECTOR,10% IN TERMS OF
VOLUME IN WORLD
MARKET,GDP 1.71% IN INDIAN
MARKET
72,000 cr MARKET IN INDIA OF
THIS EVER GREEN SECTOR
ACCORDING TO USFDA NORMS
DRUG MAJORS MUST HAVE TO
SPEND 10% OF REVENUE IN
R&D.
40% INCREASE IN NEW
MOLECULAR ENTITIES (NMES)

In health care market 29% is
medicine basis.
As per the McKinsey report,
Indian pharmaceuticals market
is expected to grow to US$ 55
bn in 2015
It has a potential to reach US$
70 bn by 2020.
The sector is rising inspite of
strict price control policy
because of urbenisation and
india lure foreign eyes for low
costing.





0
100
200
300
400
500
600
700
800
900
GSK LUPIN DRL SUN ABBOTT
2008
2009
2010
2011
2012
SALES PER SHARE OF GENERIC
GIANTS

WORLD PHARMA GIANTS ARE NOW EYEING INDIA HERE ARE SOME MAJOR MERGING,TIEUP
INDIAN COMPANY WORLD MNC (parent) TYPE
PIRAMAL HEALTH ABBOTT BUSINESS BUYOUT(US$3720 MILLION)
RANBAXY DAICHI SANKYO ACQUISITION (US$4600 MILLION)
DABUR PHARMA FRESENIUS KABI ACQUISITION(US$219 MILLION)

COMPANY ANALYSIS

Founded: in 2000( merging complete)

Key people: Chris Gent(chairman)
Andrew Witty(Chief Executive)

Headquarter: Brentford, United Kingdom

Subsidiaries: Stiefel Laboratories
It was established in 2000 by the merger of Glaxo
wellcome plc and Smithkline Beecham plc

GSK has a portfolio of products for major disease
areas including ASTHMA,COPD,CNS, CANCER,
VIRUS CONTROL, INFECTIONS, MENTAL HEALTH,
DIABETIES and DIGESTIVE condition. It also has a
large consumer healthcare division that produces
and markets oral healthcare and nutritional
products, drinks and over-the-counter medicines,
including Sensodyne, Boost, Horlicks, Lucozade
and Ribena.





NUTRIONAL HEALTH DRINK :- HORLICKS
OTC:- ENO(800cr revnue, Neusprine powder





Prescribed Medicine:- 188
Medicine:Calpol(147cr
revenue,21.4%
growth),Augmentin:233cr
revenue,9.4% growth
Oral Health care:-SENSODYNE( 150cr revenue)
Competitors Of Gsk
Sanofi-Ave
PFIZER INC,DRL,ABBOTT,RANBAXY,CADILA
JHONSON&JHONSON
MERK& CO,




Vaccines:15 vaccines (Ambirix:hepa-
A,Boostrix:Tetanus 19% revenue in vaccine)
Company has recent tie up with DRL for R&D
Company is famous for biogenetics and epigenetics research .
Vision on save children and malaria prevention
Existence of Porters
5 threat model
Power of buyers
Depend on
inflencer(dr.),bt brand
identity exist
sometime,consumer
have no bargaining
power in prescribe
medicine,power in otc
product

Power of suppliers
Available of
numerous
suppliers:Switchin
g cost low;supplier
can go forward
integration
Threats from new
entry
Govt policy supportive
bt minimize threat for
price regulating policy

Threat of substitutes
Competitive
substitutes like for
most revenued
gsks calpol has
threat from pfizer
Industry rivalry
Top 5 generic
giants have only
18-20% market
share,so highly
competitive,lowe
r fixed cost
Industry Rivals threat of
1) 330 chaser in market.
2) Here is comprative price index of same generics
GSK vs peers
Antiperkinson: Parkimet(gsk):Rs59.85(10tab)
Syndopa(sun):Rs24.75(10 tab)
Antibiotic: Cefspan(gsk):Rs134.5(4tab)
Ziprax-od(cipla):77.7(10tab)
3) 18% share of top 5 competitors.
4) High working capital,fixed cost requirement is
low.


In case of buyers:
1) Consumers have no choice for prescribe medicine.they are driven by
influencer(Dr.),rivals have also strong franchaisee distribution network( fastest
growing ABBOTT india,1440Cr.revenue last year)
2) Robust outburst in competition









3)In case of non prescribe drug like sensodine(150cr revenue,25% market
share) has threat from colgate sensitive(26% mrkt share).




In case of sellers: 1)Ample number of suppliers make lower bargaining power.
2)Major suppliers are BRISTOL Myers,Biomate india,etc but GSK can switch
off them without incurring high cost.
49%
19%
17%
11%
4%
market share 2012
Gsk's horlicks
Heinz's
complan
Cadburry
bournvita
Abbott's
Pediasure
Others
In case of substitute threat:1)Greatest advantage of the generic giant is that
generic drugs have no alter.
2)In case of GSK some of its medicine having high value is opportunity for
peers. Price war is contd..e.g.(same generic ) Augmentiin (gsk,4tab): Rs219.5
Clavam(alkem,10tab):Rs:299.5
3) Demand for product is going for urbanisation and our lifestyle.

In case of new entry threat:1)Strict rugulation create barriers to new entry
2)Distribtion system is long term process.
3)Quality regulation by govt also create obstacle in new entry
4)New patent regime raise barriers.
So, threat of new entry is minimizing.




0
PRODUCT MIX
Coldrex
Product Line 1
Medicine
Product Line
2
Syrup
Panadol
Augmentin
Ribena
Product Line 3
Commit
Relenza
Vaccine




Others
Horlicks
biscuit
sensodyne
Advair
Neusprine
Flovent


Horlicks(576cr revenue)


Sensodyne (150cr revenue)

Eno
high Relative market share low







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