Pfizer – Marketing Case Study
Focus, Respect Tort People Ana We demand of ourselves and others the highest ethical standards, and our products and processes will be of highest quality.
Innovation is the key to improving health and sustaining Pfizer growth and reparability. We recognize that people are the cornerstone of Pfizer success, we value our diversity as a source of strength, and we are proud of Pfizer history of treating people with respect and dignity. We are deeply committed to meeting the needs of our customers, and we constantly focus on customer satisfaction.
We know that to be a successful company, we must work together by frequently transcending organizational and geographical boundaries to meet the changing needs of our customers. We believe that leaders empower those around them by sharing knowledge and rewarding outstanding individual effort.
Leaders are those who step forward to achieve difficult goals, envisioning what needs to happen and motivating others. We strive for continuous improvement in our performance, measuring results carefully, and ensuring that integrity and respect for people are never compromised.
We play an active role in making every country and community in which we operate a better place to live and work, knowing that the ongoing vitality of our host nations and local communities has a direct impact on the long-term health of our business. Rights & Responsibilities The rights of the Company: -To recruit the best professional people for the Job To expect an excellence level of contribution, performance and commitment -To expect respect for it values -To dismiss sales people when every cycle target did not meet -To promise greater benefits to millions upon millions of people and their animals.
I en Responsibilities AT ten company -To do the best to provide enough support for their employees -To train medical representatives for every new products to ensure the product knowledge is excellence -To educate employees about the company’s business -To provide adequate supporting such as leaflets, gimmicks..
.Etc -To listen, care and support -To be fair To be honest to medical representatives about what price term they are offering to the doctors. To carefully review every feed back from the medical representatives that the doctors advised Focus on Performance Pfizer is now implementing a strategy to drive performance within the global business, building on the business model and management ethic that they applied in USA. The most important priority is to improve sales performance across the business through the launch of new pharmaceutical products, keep on reminding doctors to continuously using existing products and try to increase consumption and enlarge the ETC market.
Pfizer is a strong and reliable brand, with a strong competitive position and differentiated products into different types of diseases, especially in cardiovascular and homeopathic system diseases, which appeal to a wide customer base.
However, Pfizer needs to communicate with their clients more effectively in order to capitalize on their opportunities. Their current objective focuses heavily increasing profitability and sales volume of the new products of L.
They are seeking increased efficiency through improving much better relationship with cardiovascular referrers and specialists, the sales network in HA and reorganization of the structure of the company. Marketing Communication Planning Framework (MOCK) The MOCK brings together the various elements into a logical sequence of activities where the rationale for promotional decisions is built upon information generated at a previous level in the framework.
Another advantage of using the MOCK is that it proposes a soul tame cancelled AT activities Tanat n to De consolable The MOCK represents a sequence of decisions that marketing managers undertake when preparing, implementing and evaluating communication strategies and plans.
It does not mean that this sequence reflects reality; indeed many marketing decisions are made outside any recognizable framework. Marketing communications require the satisfaction of promotional objectives through the explicit and deliberate development of communication strategy.
The MOCK will be used to show first the key elements, second some of the linkages and third the integrated approach that is required. Context Analysis Pfizer divides operations into two segments: pharmaceutical and consumer products. Most recent full fiscal year sales were $32.
259 billions, with 91% from human and animal health products and 9% from confectionery, shaving products, and pond and aquarium products: Pharmaceuticals Human pharmaceuticals. O% Animal health care. 5% Total pharmaceuticals. 5% Consumer Products Consumer healthcare 7. % Confectionery 6. 2% Shaving Products 2.
0% Tetra Pond and Aquarium 0. 8% Total Consumer Products. 5% Total sales. 0% Human Pharmaceuticals With the acquisition of rival pharmaceutical firm Warner-Lambert in June 2000, driven by Pfizer desire to gain control of full profits from sales of Lipton, Pfizer became the world’s largest ethical pharmaceutical (prescription drug) company Dates on sales. Pitter’s Impressive product protocol, wanly Includes Twelve AT ten ten most prescribed medicines in the U.
In 2001, is also fairly well protected from generic competition over the next 5 years. The company has a presence in nine drug segments: *Cardiovascular–includes Lipton, the world’s largest selling cholesterol lowering agent (sales of $6. 4 billion in 2001); and anti-hypertensive such as Nirvana (sales of $3. 6 billion) Card ($552 million), and Cupric ($605 million) *Infectious Diseases Comprises Cutthroat broad-spectrum quinine antibiotic ($1. Lion); anti-fungal Difficult ($1. 1 billion) and Fend; and protease inhibitor Precept for the treatment of HIVE/AIDS ($364 million) *Central Nervous System Zloty anti-depressant ($2.
4 billion); Neurotic anti- consultant ($1. 8 billion); Airiest, the world’s leading medicine for Alchemies which is cooperated with Assai Co. Ltd; Gideon, a new treatment for schizophrenia ($1 50 million) *Arthritis Celebrate and Baxter, cooperated with Pharmacist *Argental Vicarage ($1. Billion) *Allergy Cortez, the most widely-used second generation antihistamine worldwide ($990 million) *Diabetes Glucose XSL and Exuberant Respiratory Diseases Spirits, a one-day inhaled treatment for congestive obstructive pulmonary disorder, currently in an advanced stage of regulatory review in Europe Metabolic Disorders Loosestrife for osteoporosis, currently in Phase 2 studies in the U. S Business Context Pfizer has built the world’s largest biomedical research and development organization to support its commitment to innovation, the major driver of the company’s remarkable growth.
The industry leader in R investment, Pfizer boosted its investment in research to $4. 87 billions in 2001, a 347% increase over the past 10 ears with plans to increase research investment to over $5 billion in 2002. The Warner-Lambert acquisition allowed Pfizer to build on its significant advantage in research both by adding thousands of researchers and by providing expertise in several new areas: Pfizer library of compounds effectively doubled, substantially increasing the likelihood of drug discovery.
At the beginning of 2002, the company had 94 new compounds in development together with 68 projects devoted to expanding ten uses AT current rugs Tort 162 ongoing projects Pitter’s strong research focus positions the company to successfully respond to patent expiration ND challenges from generics by extending the life of existing products via formula or compounding modifications or conversion to over the counter (ETC) products. Pfizer focus on R&D is matched by an equally strong emphasis on marketing.
The company promotes its human pharmaceutical products to health care providers including doctors, nurse practitioners, physician assistants, pharmacists, pharmacy benefits managers (Bums), and managed care organizations (Moos.
) Pfizer also promotes its products directly to consumers in the U. S. Via direct-to-consumer (ETC) print and television advertising. Pfizer has responded to the Food and Drug Administration’s 1997 decision to loosen restrictions on ETC advertising of prescription drugs by increasing ETC promotional spending each year Promotional Objectives The corporate goal is to become the most valued company in the world.
Pfizer commitment to discovering and developing innovative treatments and cures for diseases has improved the lives of countless people around the world. Pfizer delectation to continually enhancing its pipeline ensures that it will set the standard in new and current therapeutic areas for the future.
Promotional Strategy It is a push strategy. Pfizer strong marketing and sales operations have enabled the company to become the “partner of choice” for the marketing innovative products developed by others.
Pfizer has been extremely skilled in creating alliances with other pharmaceutical companies via co-promotion agreements. Through co- promotion and licensing agreements, Pfizer promotes and markets such highly promising products as Celebrate, Baxter, Airiest, and so on with alliance partners. Pfizer provides cash, staff, and other resources to further develop, market promote, and sell the products in exchange for a share of revenues. Communication Strategy Sound clinical research is the cornerstone of Pfizer marketing and lays the foundation for communicating scientific data to healthcare professionals and consumers.
Marketing and medical personnel work closely throughout the entire life cycle of a product to provide appropriate information to the customers. This partnership ensures that all medical information from Pfizer is credible, relevant and useful to the healthcare professionals who use its products to care for their patients. Target Market Nowadays, in the pharmaceutical industry, it has 4 main target market groups and Pettier Is Tossing on tense areas. I nee are ASS EAI In details as Tools:- I)Public Hospital under HA (Hospital Authority)’s supervision. For example, Prince of Wale Hospital, Rottener Hospital, Queen Mary Hospital.
… Etc. Ii)Private Hospital such as SST.
Terser Hospital, Evangel Hospital, Tissue Wan Adventist Hospital, Union Hospital… Etc. Iii)All General Practitioners (private doctors) and Specialists (such as Pediatrics, O & G, Surgery.
… Etc) iv)ETC market, such as dispensary, Watson, Manning…
Etc. Competitors Pfizer concluded that “frequently transcending organizational and geographical boundaries to meet the changing needs of our customers” was important to their argue audience, and would therefore, be a relevant and effective point of differentiation versus their competitors.
Pfizer Research & Development department keeps on focusing on developing the medicines for coronary diseases, like the successful case of LIPTON and NIRVANA developed that is sharing at least 50% of the Pfizer total business per annum. The strategic of enlarging their selling network through different media such as magazine and public relations activities that identity themselves as a top-class pharmaceutical company in coronary diseases in world- did other than the other competitors like Austereness and Innovations. Because medicine development for coronary diseases is still the priority in the pharmaceutical market now.
Marketing Plans – Marketing Mix (APS – Product, Price, People and Place) Pricing For pricing strategy, as Pfizer Inc is selling ethical products.
Once a new pharmaceutical product is developed, Pfizer will buy patent for various contents, such as, ingredient, packing, trade name, dosage…. Etc so the other pharmaceutical companies are not allowed to produce and sell within the patent period.
Usually, the eaten is at least for 5 years or even longer. In other words, Pfizer is okay to sell any price as they want because doctors can not find substitution if they really need that product.
According to economic theory, Pfizer is in a monopolistic market. Following is a table showing the pricing strategy of one of the Pfizer key product (CUTTHROAT) for different target market groups. Producible Hospitalized Historiographer Predispositions Cutthroat HIKE$5.
O HIKE$8. O HIKE$9. O – HIKE$13. 00 HIKE$15. 00 (MGM per capsule) The above price unit is based on Hong Kong Dollar .
This price is Just for reference as t will increase or decrease depends on market conditions. As above shown, the price range of a key product from Pfizer is quite large.
The percentage in between the lowest and the highest price can be 200%. As Public Hospital requires more consumption, the selling price would be lower while ETC market can sell high retail price so the price Pfizer sells to them should be higher. However, for General Practitioners, the price is flexible and the range is large.
It all depends on the relationship between the medical representatives and the doctors and the monthly consumption. Furthermore, for public hospitals, the price should ell higher as public hospital’s fee is expensive than public hospitals.
For every product Pfizer sells to people, it has fixed term. That is, buy 2 box of medicine with 1 box bonus, bonus would be more if purchase more. It is not allowed to sell in net price. Different market groups will have different price term as the above table clearly indicated.
For example, anti-inflammatory medicine, COX 2 class, the price of one capsule Pfizer sells to doctors is approximately HIKE$5. 50 while the price at ETC market is more than HIKE$II. That’s why the 2002 revenue in Hong Kong is more than 1 billion and keeps n having health growth for 2003.