Pfizer Marketing
Pfizer Marketing
Pfizer Marketing
MARKETING PROJECT ON
Worlds Largest Research Based Pharmaceutical Company
INDEX
TOPICS TIME LINE COMPANY BACKGROUND AND PROFILE PFIZERS MARKET SHARE VALUE PROPOSITIONS FACTS AND FIGURES ETHICS AND CORE VALUES PFIZER STANDARDS PERFORMANCE WITH INTEGRITY MARKETING INETEGRITY DISTRIBUTION CHANNEL SWOT ANALYSIS BUSINESS DIVISIONS MARKETING STRATEGY OF PFIZER PFIZERS COMPETETIVE STRATEGY MARKET SEGMENTATION IN PFIZER COMPANY ORIENTATION TOWARDS MARKET PLACE MARKETING MIX MARKETING MANAGEMENT TASKS PERCEPTION & OPINION PRODUCT LIFE CYCLE PREVENTIVE MEASURES SUMMARY THANKS AND REGARDS PAGE NO. 2 3 5 6 7 7 8 8 9 10 11 13 15 17 18 18 19 21 22 24 24 25 26
One of the highest spenders in pharmaceutical R&D globally Diversified global health care portfolio: human, animal biologic, small molecule medicines and vaccines Pfizer has won several awards including that for the multinational pharmaceutical company of the year and the most respected MNC
Headquarter in Mumbai(India)
Over 2,300 employees State-of-the-art manufacturing facility at Thane, Maharashtra Pfizer Limited (India) has a turnover of US$ 165.86 million
Six Pfizer brands feature among the Top 100 pharmaceutical brands in India. Few of
Corex was the first brand in the Indian pharmaceutical industry, to cross the US$ 22 million mark Has the unique distinction of having two of its brands, Corex and Becosules, ranked at the top among all industry brands for three successive years
KEY PERSON:
Ian Read CEO & Chairman of the Board David.L Vice Chairman Frank dAmelio Chief Financial Officer & Sr Vice President Strategy and Business Development and Senior Vice President: William R. Ringo Jr. General Counsel, Corporate Secretary and Senior Vice President: Amy W. Schulman Chief Communications Officer (CCO) and Senior Vice President: Sally Susman President of Worldwide Pharmaceutical Operations and Senior Vice President: Ian Read President of Global R&D and Senior Vice President: Martin Mackay
VALUE PROPOSITION:
To understand the potential value proposition for the business, the comprehensive assessment of Pfizer's path forward strategic priorities such as:
Find and capitalize on new opportunities for established products Grow in emerging markets Grow their diversified businesses Instill a culture of innovation and continuous improvement Optimize the patent portfolio These values have essentially become the business drivers for Pfizer.
billion
As a Pfizer colleague, one shares the privilege and responsibility of upholding the Companys honourable reputation. You do this each time you act ethically and legally. While such conduct may be second nature, there are many situations where making the right choice can be challenging. It is a guide to the Companys compliance structure, applicable laws, and key policies and procedures that govern doing business in a legal and ethical manner. Performing with integrity and adhering to compliance standards is a shared responsibility between the Company and employees. The Company is responsible for defining how Pfizer will comply with applicable laws and regulations (through systems, policies, and procedures); monitoring efforts; and correcting any non-compliance. Pfizer also holds its vendors and contractors to high standards. Vendors and contractors are expected to comply with all policies that relate to work conducted on Pfizers behalf. All employees are subject to the laws and regulations of the country where they work.
By knowing, understanding, and acting in accordance with Pfizers Values and the applicable laws and Company policies outlined herein, each of us can serve as a role model.
Know the law and ask tough questions. You are expected to be familiar with
the laws that apply to your specific job function and level of responsibility. If you have any questions, ask your supervisor, a member of the Legal Division, or the Corporate Compliance Group.
Dont make assumptions.
Do not assume that senior management already knows or management doesnt care about this. Also, do not assume that no action will be taken. Pfizer management is dedicated to ensuring that the standards of legal and ethical behaviour are upheld. In fact, responsible managers are obligated to respond to an employees concerns. Tell us if something is wrong.
10 Dont ignore violations. We all need to take the law and Company policies
seriously. If you think someone may be violating a law or policy, please take steps to address the situation by speaking with them directly or by notifying your supervisor, Human Resources or the Corporate Compliance Group.
Help improve controls and processes. Some violations may not be easy to
detect within our current controls and processes. If you have a suggestion for improvement, please do not hesitate to make it.
Always act with integrity. You are never expected to violate a law or policy,
nor should you ever feel encouraged or pressured to do so even if the violation will improve the bottom line or help meet a performance goal.
MARKETING INTIGRITY
Beyond adhering to pharmaceutical industry regulations and standards, Pfizer is committed to fair competition as a matter of corporate conduct. They abide by all laws that apply to our marketing activities. Under these laws, it is illegal to use unfair methods of competition or unfair or deceptive acts or practices in commerce. Examples include, but are not limited to: False or misleading advertising Any other form of misrepresentation made in connection with sales Bribery of competitors or customers and employees Unfair comments about competitors products
DISTRIBUTION CHANNEL
The distribution channel is spread across a wide network of people
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Who are involved in the distribution process of Pfizer. This network is represented in the following flow chart as follows:
MANUFACTURING UNIT
STOCKISTS
RETAILERS
SEMI-STOCKIST
DISPENSING DOCTORS
END CONSUMERS
Pfizer adopts the above mentioned distribution channel to make their products reach the end consumer. Initially, the goods are manufactured and are passed on to the CFA, which is an external player who forwards the goods to the Pfizer stockiest and works on a margin basis. Pfizer follows an advance cheque system for delivery of goods. Further, the goods are sent to the retailers, semi-stockiest and the dispensing doctors. Semi-stockiest are those stockiest which are not Pfizer official stockiest. The doctors who dispense medicines by their own are known as dispensing doctors. Through these people the goods reach the end consumer.
SWOT ANALYSIS
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STRENGHTS: Pfizer is market leader in the pharmaceutical sector Brand recognition Pfizer is a trusted & reliable company, which is preferred and suggested many doctors It is no.1 in research and development(R&D) Quality & safety of products Most of its products are patented Known for its integrity, ethics and work culture Follow high standards Follows Open Door Policy Among top 10 global corporations in diversity and inclusion Wide-spread retailing Co-branding (antibiotic Trulimax with Becosules) Efficient Sales force Low generic risk & patent expiration New product launches ex Betra, Raplex Greatest numbers of blockbuster drugs
WEAKNESS: Products are expensive because of high cost involved in R&D Marketing penetration is less Few Generic products Spends more on R&D than promotional activities They follow global policy (Not local) Diversity in products is less (As compared to generic market)
OPPORTUNITIES: Only market which is not affected by Recession (Life saving drugs) Heavy scope for market capture (Untapped market) Huge scope for launching generic products Can easily grab the rural market with cheaper products
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Instead of spending a lot on R & D they can spend more on Marketing & Promotion Increase product portfolio by launching generic products By launching generic products cost of product can be reduced, so everybody can afford Pfizer medicines Market share can be increased by merging generic drug company Can launch non medicated products as Personal care, Baby care etc (only few players in market )
Poor people cant afford Pfizer products(costly Drugs) High cost on R & D Less expenditure on marketing & sales promotion Application of global policy Limited product portfolio Market capture by other players by merger & acquisitions
BUSINESS DIVISIONS
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Pfizer in India has three business divisions: Pharmaceutical Division: This division markets both prescription and OTC products. The key brands of Pfizer are Corex, Becosules, Gelusil and Benadryl Animal Health Division: This division caters to animal pharmaceuticals and is amongst the top four players in the Indian market with revenues of US$ 12 million Research and Development Division: This division includes Pfizers clinical research operations as well as the biometrics division. Over the years, Pfizer India has participated in Phase II, III and IV global trials and has contributed significantly to advancing standards and the research culture in India. The biometrics group also performs statistical and data management activities on behalf of Pfizer Global Research and Development centres in the United States, Europe and Japan. Further Pharmaceutical division is divided into following division-- PROXIMA ULTIMA CRITICA INTIMA SPECIALITY NEUROPSYCHIATRTY In this report we talk about PROXIMA & NEUROPSYCHIATRY divisions of Pfizer. Products under this division are--1. BECOSULES/Z CAPSULES 2. DOLONEX-DT 3. TRULIMAX 4. DOLONET 5. COREX-T SYRUP 6. DAXID 7. ATIVAN 8. PACITANE 9. LYRICA 10. DILANTIN 11.DALACIN-C
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PFIZER PORTFOLIO
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Pfizers marketing strategy helps to assess and develop strategies and plans for marketing channels / devices, e-commerce capabilities and marketing operations platforms. This strategy will provide a strategic leadership and creative thinking to the analysis of technology trends and the identification of new opportunities. The following are the different strategies that are laid down at different domains:
STRATEGY DEVELOPMENT Define Marketing Solutions Center technology strategy to guide development, execution, and to move people to action Develop sound business cases for new technology strategies that improve customer loyalty and increase brand and company value Create strategies that can be executed upon in a repeatable, value-add fashion Create digital technology roadmaps to guide execution of programs and initiatives Collaborate with internal and external colleagues from a range of disciplines including Agencies, Business Partners, Architecture, User Experience Design, and others
MULTI-CHANNEL AND CUSTOMER EXPERIENCE VISION Provide assessment and vision of the ideal customer experience by defining key capabilities that differentiate brands and meet consumer needs Define potential impact to brands of new and emerging technologies and multichannel efforts Define cross-channel implications and opportunities
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Analyze business, marketing and digital performance across products, markets, audiences, and channels Drive fast, decisive process to evaluate and execute on opportunities Create strategic and financial models to articulate business value and build business cases and ROI models of high complexity Summarize findings in a way that supports a clear and compelling story
SERVICE DELIVERY Lead strategic reviews of solution development; provide clear and timely feedback to ensure experiences, technology and marketing solutions are delivered on-strategy Participate in project post-mortems; capture key learnings and develop case studies as appropriate Lead communications efforts across senior business and BT stakeholders to include briefing project teams globally Facilitate workshops, ideation sessions, decision-making
MEASUREMENT & EVALUATION Work with strategy team members to define success metrics and evaluate business impact of digital technology strategies and projects over time Define targets for identified metrics Develop processes for collecting and analyzing necessary data
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Create career development opportunities for staff - develop, mentor and engage talent Build strategy team expertise by mentoring team members and offering training in relevant methodologies, techniques, frameworks, etc. Proactively work to improve process for strategy engagements and team workflow
PFIZERS COMPETITIVE STRATEGY Pfizer adopts a competitive strategy to gain advantage over its competitors. This advantage enables the company to operate in a more efficient or in a higher-quality manner than the companies that it competes with, which results in benefits to that specific company. This is usually achieved by offering consumers greater value, either by means of lower prices or by providing greater benefits and services that justify for higher prices.One of the key strategies in achieving a competitive advantage is product differentiation. Product differentiation is the idea that certain features make one product appear different from competing products in the same market. Pfizer achieves this strategy through brand loyalty and advertising. Pfizer is a very well respected company; which makes them strongly trusted amongst their consumers. The way Pfizer achieves this trust is through their advertising and brand loyalty. Advertising and brand loyalty are very important in the pharmaceutical market due to the large interchangeability of its products. This basically means that there are a lot of products out there, in the Pharmaceutical industries, which are close substitutes to that of Pfizers and other companies. The following are the few potential competitors who give a stiff competition to Pfizer in India: Johnson & Johnson Novartis Sanofi-Aventis Ranbaxy MARKET SEGMENTATION IN PFIZER
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Pfizer's Pharmaceuticals Segment includes its human pharmaceuticals and animal health businesses, as well as Capsugel, a producer of two-piece capsules used in manufacturing prescription and over-the-counter pharmaceuticals and nutritional supplements. Most of the company's human pharmaceutical revenues come from products in three major therapeutic classes: cardiovascular diseases, infectious diseases and central nervous system disorders. The company also has products for the treatment of diabetes, erectile dysfunction and allergies, as well as a co-promoted product for arthritis. In 2000, the company had eight human pharmaceutical products with sales to third parties of $1 billion (680,4 million) or more each. These products were Lipitor, Norvasc, Zoloft, Neurontin, Celebrex, Zithromax, Viagra and Diflucan. Lipitor, Pfizer's largest-selling product, is for treatment of high lipids, cholesterol and triglycerides, in the bloodstream. Norvasc is a once-a-day medication for hypertension (high blood pressure) and angina (heart pain). The company's other cardiovascular products include Procardia XL, Cardura and Accupril/Accuretic. In the infectious disease medicine category, the company's major products are Zithromax, Diflucan and Viracept. Pfizer's other major pharmaceutical products include Glucotrol XL, for the treatment of diabetes, and Zyrtec, used for the treatment of allergies and related problems. This explains the large and diverse nature of market for Pfizer.
B) Product concept:
Pfizer offer best quality and new drugs to the market
C) Selling concept:
Selling concept in the case of Pfizer does not hold completely true because, as it is a drug a manufacturing company and it makes few like life saving drugs, which people
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have buy. But this concept stands true in case of OTC drugs because the promotional activities determine its sales.
D) Marketing concept:
Pfizer extensively markets its products to a large spectrum of its costumers by sheer quality; packaging and the safety factor which contribute towards to the sales of the company in order impress its clients and customers.
MARKETING MIX
Marketing mix tools are of four broad kinds known as 4ps of marketing: product, price, promotion and place
Product:
1. Product variety:
Pfizer offers a great variety of products ranging from hyper tension to cancer related diseases. They have a diversified global health care portfolio which includes human, animal biologic, small molecule medicines and vaccines.
2. Quality:
Pfizer promises a high level of quality to all its consumers. At Pfizer safety is number one priority and therefore they work diligently to understand the safety and tolerability of their products, so that they can provide products and information to medical professionals and patients. Quality ingrained in the work culture of their colleagues and all their values.
3. Brand name:
Pfizer stands as symbol for excellence and trust in the pharmaceutical sector. It carries the reputation of being a market leader and has lived up to its reputation. 4. Packaging: At Pfizer, packaging is well taken care and all the products are packaged and dispatched without compromising in the quality and therefore ensures that their packaging is strong and durable.
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Price: As we know, Pfizer spend a lot on R&D therefore, their products are costly but they also provide certain discounts at distributor and retailer levels. For example: on purchase of 8 boxes of becosules, they provide a travel bag as complimentary gift. They also offer few schemes during diwali and other festivals to attract their customers i.e dealers and distributors.
Promotion: 1.Sales force and sales promotion: For every month they set a sales target for their sales force and those who achieve the target, they offer those good incentives and bonus based on their performance. They also reward their best sales person by attractive gifts such as gift coupons, mobile phones, digital camera etc. they select top 10 sales executive from each country and send them on vacation to abroad. Pfizer has some unique offer in order to boost its sales such as, on purchase of five strips of trulimax(anti-biotic) they provide another strip free of cost.they also provide attractive gifts to their retailers such as water bottles, lunch box, branded pens etc. to push their product and increase their sales. They also reward their best retailer and distributor with a cash price and a certificate once in a year. 2.Advertisement: They advertise their OTC product by mean of newspaper and television. For example: Gelusil-MPS television ad. They advertize by putting company name and brand name on pens, spiral pads dairies and perception pads etc. as we know, advertisement of pharmaceutical products comes under Drug and Cosmetic Acts. Pharmaceutical companies are allowed only to advertise their OTC brands. Place: Coverage & locations: Pfizer is multinational company and operates in many countries across the world. It currently operates in 120 countries. In India, Pfizer is a very commonly known brand
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even in small towns and cities. For example: everyone is very familiar with cough syrup Corex and vitamin B-complex Becosules.
c) Positioning:
For every product Pfizer has a Positioning strategies, For ex: ATIVAN Pfizer position this drug in front of its customers as Antianxiety drug related with sleep disorder. Becosules-A B-complex their tag line is Everyone needs it Dolonex- A Pain killer Dissolves in sec Act in minutes Corex- For dry cough Broncorex- For wet cough Pacitane-For extra pyramidal syndrome
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d) Co-Branding:
Marketing of Becosules with an antibiotic Trulimax during infections. Marketing of Ativan with Daxid in major depression. Marketing of Corex-T with Trulimax in respiratory disorders.
e) Umbrella Marketing:
In some case Pfizer tahe benefit of its existing product by giving similar name to new products . For ex Corex-T & Broncorex on Corex Becosule-Z on Becosule
f) Loyality:
In pharmaceutical market customers are not actually patient , but customers are Doctors, because whatever Doctor is going to prescribe patient have to buy. So in this market we talk about Doctors loyality towards the company as we all know most of the doctors admire this company, few are very loyal but others prescribe according to patient purchasing power.
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Retailers believe that Pfizer is one the most sought brand by his customers and there is a huge demand for its products. One of retailer of Apollo Pharmacy told us that He is having all product range of Pfizer & average sales of Pfizer products is 10-12 thousand / Day. He told that Pfizer products are of high Quality & standards but sometimes they have to substitute their product by a cheaper product Ex 1 tablet of Viagra cost Rs 400/- & same product of Indian company cost only Rs 25/-
c) Doctors: All professional doctors are disciplined by state medical boards for problems involving patient care. They have all kinds of disciplinary records for problems with patient care or drug prescribing and Pfizer has a proven track record of safety and quality checks and therefore doctors are inclined to suggest Pfizer products to their customers. They got a positive feedback from their customers and thanked them for suggesting Pfizer products. So doctors are very fond of Pfizer products and admire its superior quality. But they always dont have freedom to prescribe best quality products of Pfizer because of price issue. One of Doctor, Dr Raghu said that he always prefer to prescribe products of company like Pfizer but sometime he have to have to change the product to other company. He said that while writing prescription we have to see the purchasing power of the patient. But on the other hand few Doctors are very loyal towards the company their first choice is always Pfizer. d) Distributors: Distributors show the willingness to take more and more orders from Pfizer because of the high demand for its products. Distributors are making a huge margin on the Pfizer products and comply with its huge demand. One the person Mr Mallikarjuna working in Vardhman Distributer (Top distributer of Pfizer Bangalore) told us that they are having Pfizer from more than 30 years & he admire d the company. He told us about online purchasing system which he recently started, with this retailers are never out of stock, as stock of any medicine retailers can give online order & goods are delivered same day or very next day.Another distributer named Avenue told us that Pfizer is one of the best pharmaceutical company but in last few years Pfizer is loosing its image. On asking reason he said that now Pfizer entering into generic market which is dissolving its identity. He said 10 years back Pfizer was the Dream company to work .When any official person come from outside, he never use to stay in hotel, Doctors insist him to stay with them. He said when any Representative visit his office he stand on his place & greet him.
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Most of the product of Pfizer are at maturity stage. As we know it takes almost 20 years to come out with a new pharmaceutical product hence life cycle of a product is very long. One of Pfizer product Becosules is No 1 vitamin B complex brand from last 20 years. Sameh is the case with cough syrup Corex it is largest selling pharmaceutical brand in india (According to MAT 2010Corex is 200 crore brand & rank no 1 in india). Sales of few other product is not affected from last few decades they are the market leader of their category Ex PACITANE (Drug for Seizures) is 65 years old brand of Wyeth company, which is recently take over by Pfizer is the market leader from last 6 decades Few drug such as antibiotics etc their sales is fluctuating
Some products facing a decline in sales such as DAXID an antidepressant, the reason could be that few new products have taken their place BECOSULE-Z vitamin B-complex with zinc is a new product which is in growth stage. It rank no 2 in its category, market leader is ZINCOVIT
Pfizer is planning to launch 15 to 20 new products in coming years Few new launch products are-ABOVE-5(Antacid), ABOVE-5D, DOLONET (Painkiller). These products are in introduction stage and lot of marketing & sales activities are going for making these products a huge success
PREVENTIVE MEASURES As we all know there are some companies which produce fake/duplicate products which not only affects the company image but also the public health. Corex is top brand of Pfizer in india, hence there is lot of duplication for it. To prevent this Pfizer comes with an idea of making Holograms on sticker of bottles, implementing this company is able to reduce the duplicate product in market.
The Right Transaction for the Right Product at the Right Time
Best Portfolio of Products, Pipeline and Capabilities in the Industry
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Positioned for Sustainable Growth Strong Revenue Diversification from Stable, Growing Areas Leadership Positions in Key Growing Therapeutic Areas Focused on Delivering Patient-Centric, Innovative Therapies Combines Entrepreneurial, Focused Businesses with Global Scale Delivering Value to Patients, Shareholders and Other Stakeholders
SUMMARY
This study gave a brief insight of marketing strategy adopted by Pfizer india.in this study we talked about a wide spectrum of marketing concepts such as, distribution channel, integrated marketing, marketing mix, market segmentation, product life cycle and customers perceived value etc. for this purpose we approached different companys official and no official persons, referred our text book by Philip kotler.we would like to conclude by thanking our Prof. Rahul Gupta Choudhary for his valuable guidance.
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