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MARKETING MANAGEMENTPROJECT ON GLAXO SMITHKLINEPRESENTED BY:Sweta SrivastavaSubhajit MitraPgdm :13-15,sec:cPRESENTED TO:Dr. MUKESH PORWAL

Sector: MedicalIndustry: Large Cap PharmaType: Public Limited CompanyINDIAN PHARMA INDUSTRY FRAGMENTED BY 330 SECTOR,10% IN TERMS OF VOLUME IN WORLD MARKET,GDP 1.71% IN INDIAN MARKET72,000 cr MARKET IN INDIA OF THIS EVER GREEN SECTORACCORDING 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.

Sector analysisSALES PER SHARE OF GENERIC GIANTS

WORLD PHARMA GIANTS ARE NOW EYEING INDIA HERE ARE SOME MAJOR MERGING,TIEUPINDIAN COMPANY WORLD MNC (parent) TYPEPIRAMAL 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 LaboratoriesGlaxosmithkline plc (GSK) is a British *Multinational Pharmaceutical,biologics, vaccine and consumer Healthcare company 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 :- HORLICKSOTC:- ENO(800cr revnue, Neusprine powder

KEY PRODUCTS

Prescribed Medicine:- 188 Medicine:Calpol(147cr revenue,21.4% growth),Augmentin:233cr revenue,9.4% growth

Oral Health care:-SENSODYNE( 150cr revenue)

Competitors Of GskSanofi-AvePFIZER INC,DRL,ABBOTT,RANBAXY,CADILAJHONSON&JHONSONMERK& CO,

Vaccines:15 vaccines (Ambirix:hepa-A,Boostrix:Tetanus 19% revenue in vaccine)Company has recent tie up with DRL for R&DCompany is famous for biogenetics and epigenetics research .Vision on save children and malaria preventionPorters 5 threat surviving

Existence of Porters 5 threat modelPower of buyersDepend on inflencer(dr.),bt brand identity exist sometime,consumer have no bargaining power in prescribe medicine,power in otc product

Power of suppliersAvailable of numerous suppliers:Switching cost low;supplier can go forward integrationThreats from new entryGovt policy supportive bt minimize threat for price regulating policy

Threat of substitutesCompetitive substitutes like for most revenued gsks calpol has threat from pfizerIndustry rivalryTop 5 generic giants have only 18-20% market share,so highly competitive,lower fixed cost

Industry Rivals threat of330 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.

Bargaining of buyer & seller of

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.Threates of substitute and new entry for

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:299.53) Demand for product is going for urbanisation and our lifestyle.

In case of new entry threat:1)Strict rugulation create barriers to new entry2)Distribtion system is long term process.3)Quality regulation by govt also create obstacle in new entry4)New patent regime raise barriers. So, threat of new entry is minimizing.

0PRODUCT MIXColdrexProduct Line 1MedicineProduct Line 2SyrupPanadolAugmentinRibenaProduct Line 3CommitRelenzaVaccine

OthersHorlicks biscuitsensodyneAdvairNeusprineFloventProduct Life Cycle of

BCG MATRIX ANALYSIS OF Horlicks(576cr revenue)

Sensodyne (150cr revenue) Eno

high Relative market share low low market growth rate high