MKTG

Date: August 12, 2008
Time: 11 PM
Place: Kitchen

For my marketing plan progress, here is positioning info
Market Position
GlaxoSmithKline operates mainly in two segments- pharmaceuticals and consumer healthcare. Within the consumer health care industry, GSK is the second most profitable. GSK’s consumer healthcare department is broken down into three markets: over the counter medicines (e.g. Abreva, Tums, Nicorette), oral care (e.g. Aquafresh, Polident), and nutritional healthcare (e.g. Lucozade, Horlicks).
A SWOT Analysis reveals: opportunities in the diet drugs market. In the diet drugs market, companies (which don’t include any of GSK’s current top competitors) promote herbal and nutritional supplements that claim quick weight loss, but they can also be dangerous and many provide no proof of effectiveness. The opportunity for a large consumer base in the US alone is confirmed since more than two-thirds of all Americans are overweight or obese.
It’s a great idea to market an over the counter product rather than compete with the prescription Xenical that is produced by Roche. $100 million dollars was paid to Roche for the rights to sell the drug as an over the counter product. Worldwide, over the counter remedies are being one the first places that consumers seek medical assistance. Over the counter sales will increase as consumers become more knowledgeable. According to a Euromonitor forecast, over the counter products are the main source of health care in growing economies. So, international markets are expected to provide 60% of OTC growth within the next 5 years.

A SWOT Analysis also reveals strengths: GlaxoSmithKline’s experience in worldwide markets will make adapting to different cultures and the use of other languages easier in the promotion of this weight loss drug. (Rights to market worldwide have been obtained, except in Japan).
GSK is also experienced in creating programs to successfully change a unhealthy behavior. For example, GSK has products/programs to help smokers quit the habit. A similar marketing program will set expectations through “straight talk.” GSK will communicate that Alli is effective when taken in with a reduced calorie, low-fat diet. Gradual and modest weight loss should be expected. Also, the side effects will be bluntly given.
Weaknesses include Alli’s side effects. In sort of a “Catch 22,” GSK plans to be very honest to consumers about the side effects. Side effects include gas with oily spotting, loose stools, and more frequent stools that may be hard to control. But by being honest and using “straight talk”, GSK plans to gain consumer confidence.