mak 2 gsk contac

8/8/2019 mak 2 GSK contac

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Smithkline Consumer Products: TheContac Relaunch



AGENDA

INTRODUCTION

CONTAC- pr esent scenario

FUTURE STRATEGY

ACTION PLAN



I NTRODUCT I ON

consumer health car e division marketed OTC products

CONTAC was marketed by Smithkline consumer products

leading product of SKCP

accounted for over 40% of division sales

market shar e r eached a peak of 33% in 1968

br and was associated ³the pill spill´ image



Contac ± present scenario

capsules tamper ed with cyanide in 1986

SKCP immediately told stor es to stop selling CONTAC

Consumer s advised not to use CONTAC

Anti capsule sentiment f anned by media

Industr y analyst pr edicted a bleak f utur e for capsules



Environmental scan

Internal analysis

str ength

associated with ³the pill spill image´

sales r egaining from pr evious low due

to new str ategy

weaknesses

Received bad publicity due to

poisoning incident Lack of technology at hand to make

product saf er

External analysis

Oppor tunity

Oppor tunity to off er CONTAC in both

capsule and solid(caplet for m)

can captur e the sales of autumn cold

Thr eat

market can be acquir ed by

competitor like J&J



Fu t u re strategy- what shou ld we do

We should go with a product mix of Caplets and Capsule(with better and

saf er packaging)

Why?Will help in r eaching broader consumer base i.e Caplets(41%) and

Capsules(47%)

will help in winning back the wholesaler's confidence towar ds the product

Its best time to launch Contac in new for m as it has to be r e-launched incapsule for m also



Action plan- How to implement

Fir st step

Take management in confidence for the r e-launch

its our major r evenue gener ator so, scr apping it can have negative eff ect

on company financially

with a str ategy similar to launch of a new product we can gain the lost

ground

we have enough inventor y of capsules to help in launch during peak

season i.e. autumn cold



Relau nch campaign(1/2)

Advertising strategy:

Acquir e new technology

Adver tising message to focus on introduction of new solid dosage for m

Packaging and labeling:

new distinct packaging to help customer distinguish the new off ering



Relau nch campaign(2/2)

Marketing program

Adver tising campaign

Aggr essive adver tising campaign on national television aligned with the

time of r elaunchConsumer promotion

off er discount coupons during the r e launch period

Tr ade promotion

provide incentive to customer s i.e. wholesaler s to push the sales

pricing issue

we will stick to our pr evious price

mak 2 gsk contac

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