Zantac

ZANTAC
Università della Svizzera Italiana
AY: 2011/2012
Class: Strategic Marketing
Professor: Andres Hinterhuber
Abasoglu Dogan
Castelli Matteo
Javadinia Azari Morteza
Kalipcilar Gizem
Liechti Audrey Pauline
Monahan Jane Therese

Università della Svizzera Italiana – Strategic Marketing – AY 2011/2012
Glaxo: Do More
Feel Better
Live Longer
Collaboration with others in
industry, academia, government and non-
governmental organisations and healthcare in
general is fundamental to our strategic
priorities of growing a diversified global
business and delivering more products of
value.
OUR
CORPORATE INDENTITY

GASTROINTESTINAL
TREATMENT
Our commitment is to helping physicians treat and cure all
gastro-intestinal complaints and diseases.
Providing pain relief and recovery to their patients is due
to our superior research and development of gastro-
intestinal treatment alternatives and cures.
Our investment is in education and outreach to physicians,
hospitals and patients.
Our global cooperative sales network and technical support
system are for individual doctors and hospitals which is
unmatched by any other pharmaceutical company.

BRIEF
HISTORICAL
REVIEW
1976
1981
1982
1983
1984
1986
1989
After have made some chemical
research and clinical trials ZANTAC
was ready to be launch all over
the world.
During these four years Glaxo launch ZANTAC
in the world-wide market: in UK, Italy,
Germany, U.S.A., France and Japan. Our
strategy was base on a large number of sales
representatives and collaboration with other
pharmaceutical companies.
Approval for simplification of the dosage (one-a-day) and
Zantac’s overtakes Tagamet in terms of global sales and
becomes the best-selling pharmaceutical product in the
world.
Entrance of new competitors in the global market for antiulcerant
drugs

TAGAMET: the main
competitor
COMPANY SMITHKLINE
PRODUCT PRESENTATION green tablets : 200 mg, 300 mg, 400 mg
APPROVED MAIN INDICATIONS acute and manteinance treatment of
peptic ulcers; acute treatment of reflux
TOTAL DAILY DOSAGE 1000 mg
NR. OF ADMINISTRATION PER DAY firstly 4 – secondly 1
TREATMENT LENGHT 4 to 6 weeks
EFFICACY 80% of patients healed after 6 weeks
SIDE EFFECT breast swelling in males (sexual
dysfunction), reversible liver damage
DRUG INTERACTION mental confusion in the elderly

ZANTAC: the new drug
against ulcers
COMPANY GLAXO
PRODUCT PRESENTATION white tablet: 150 mg
APPROVED MAIN INDICATIONS acute and manteinance treatment of
peptic ulcers; acute treatment of reflux
NR. OF ADMINISTRATION PER DAY firstly 2 – secondly 1
TREATMENT LENGHT 4 weeks
SIDE EFFECT no seriuos side effect have been
reported
DRUG INTERACTION no clinically significant interactions
have been reported

Why Zantac is better
than Tagamet?
 more convenient dosage schedule
 superior drug interaction profile
 responding very well to ulcer
treatment
 satisfied costumer need
 higher price means higher quality
 60% of marketing budget was direct
to sales force representatives

SWOT
ANALYSIS

OUR KEY DECISIONS
1/2
 large budget for marketing strategy;
 rapid implementation of product with global launch
 much larger number of sales representatives and better
trained (more knowledgeable) than competitors;
 more frequent and multiple sales representative visits to
general practioners (= doctors, major client segment);
 a strong and pervasive advertising campaign thanks to
which it passed the idea that Zantac was FASTER, SIMPLER
and SAFER;

ADVERTISING
FASTER
SIMPLER
SAFER

 co-marketing arrangements and collaboration with other
pharmaceutical companies (complementors);
 promotion of product with gastrointestinal specialist and
hospitals through conferences and other advertising;
 good brand management (focusing on Zantac’s strengths
and Tagamet’s weaknesses;
 took advantage of price inelasticity with price premium
that became associated with superior product;
OUR KEY DECISIONS
2/2

Smith Kline’s
mistakes …
 they did not take Zantac seriously;
 never establish any brand loyalty;
 they did not have a plan to deal with side effects;
 did not exploit improvements in dosage;
 Egocentric defence: relied on own history and did not
focus in client needs for information;
 did not allocate enough budget to promotion;
 confused own costumers (new dosage) with poor
communication;
 advertised arrival of Zantac to its own customers;

Thanks to our key decisions and
Smithkline’s mistakes …

Power factors for our success
 improvement over the first competitor, Tagamet
 customer satisfaction
 customer awareness
 product benefits
 penetrative distribution
 a huge advertising campaign
 direct and convincing sale to doctors
- real effectiveness
- short treatment cycle
- no side effect
- correct dosage schedule

NEW COMPETITORS
1. PEPCID: Japan company, Yamanouchi;
Price: 10% below Zantac
2. AXID: US company, Eli Lilly
Price: 10% bellow Zantac
3. LOSEC: Swedish company, Astra

Focusing on
LOSEC
COMPANY Astra (Swedish company)
PRODUCT PRESENTATION pink-brown gelatine 20 mg
APPROVED MAIN INDICATIONS acute and maintenance treatment of
peptic ulcers; acute treatment of
reflux; “refractory ulcers”
NR. OF ADMINISTRATION PER DAY 1 a day
TREATMENT LENGHT 2 to 4 weeks
SIDE EFFECT no serious side effect have been
reported
DRUG INTERACTION no clinically significant interactions
have been reported

 new class of drug
 faster healing rate for peptic ulcer in short term
 more powerful and longer duration than ZANTAC
 faster paint relief
 treatment also for refractory ulcers
 superior treatment for reflux
 better dosage schedule
 no side effects
Why LOSEC?
STRENGHTS

For maintaining and
prevent our leadership …
1. Glaxo should take competitions from Losec seriously
because of his strengths.
2. We should make sure not to fall into trap of interntia.
3. Need to stay proactive and visionary.
4. We need to expand brand beyond Zantac to the
treatment of gastrointestinal disease and the entire
treatment spectrum from heart burn to reflux ulcers.

Five forces analysis
Environmental factors Attractive/unattractive
Threat of new entrance low due to barriers to entry
(approvals and patents)
Threat of substitutes medium to high
Bargaining power of suppliers none
Bargaining power of buyers overall low
Degree of rivalry medium to high

Industry is
attractive
Growth is projected at 15% for next 4 years:
65% for acute disease
30% maintenance treatment
5% peptic ulcers with prescription of other drugs
0
0.5
1
1.5
2
2.5
1990 1991 1992 1993
GI Treatment (Zantac +)
Other Glaxo Products
Total Glaxo Sales

RECOMANDATIONS’ PILLS
CREATE
COLLABORATE
COMPETE
TO SERVE CLIENTS

1. Put marketing strategy first: give Marketing Director
profit and loss responsibility; establish cross
department collaboration with R&D and operations.
2. Focus on treatment area of gastrointestinal disease
not just selling Zantac. Establish complementary
relationships with over the counter and other
prescription drugs in this treatment area and/or
acquire companies that do so.
3. Maintain and enhance model for sales
representatives through linking increased revenue to
specific sales effort. Continue co-marketing with
complementary treatment areas and drugs.
RECOMANDATIONS …

4. Make corporate commitment to public awareness
and education regarding gastrointestinal disease and
treatments (male charitable contributions, sponsor
events, conferences). This includes anti-smoking
campaigns as this is a risk factor for GI disease.
5. Further develop market potential: focus on aging
populations and smokers. Establish local management
to begin working with doctors, hospitals, insurance
companies, health care industry and regulators to
understand specific gastrointestinal disease and
treatment issues markets.
6. Expand product range: acquire or collaborate with
over the counter and prescription drug treatments.
RECOMANDATIONS …

Thanks for your
attention

Zantac

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