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Smithkline Consumer Products: TheContac Relaunch

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AGENDA

INTRODUCTION

CONTAC- present scenario

FUTURE STRATEGY

ACTION PLAN

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INTRODUCTION

consumerhealth care division marketed OTCproducts

CONTAC was marketed by Smithkline consumerproducts

leading product ofSKCP

accounted forover40% ofdivision sales

market share reached a peakof33% in 1968

brand was associated the pill spill image

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Contac present scenario

capsules tampered with cyanide in 1986

SKCP immediately told stores to stop selling CONTAC

Consumers advised not to use CONTAC

Anti capsule sentiment fanned by media

Industry analyst predicted a bleakfuture forcapsules

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Environmental scan

Internal analysis

strength

associated with the pill spill image

sales regaining from previous low due

to new strategy

weaknesses

Received bad publicity due to

poisoning incident Lackoftechnology at hand to make

product safer

External analysis

Opportunity

Opportunity toofferCONTACin both

capsule and solid(caplet form)

can capture the sales ofautumn cold

Threat

market can be acquired by

competitorlike J&J

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Future strategy- what should we do

We should go with a product mixofCaplets and Capsule(with betterand

saferpackaging)

Why?Will helpin reaching broaderconsumerbase i.e Caplets(41%) and

Capsules(47%)

will helpin winning back the wholesaler's confidence towards the product

Its best time to launch Contac in new form as it has to be re-launched incapsule form also

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Action plan- How to implement

First step

Take management in confidence forthe re-launch

its ourmajorrevenue generatorso, scrapping it can have negative effect

on company financially

with a strategy similarto launch ofa new product we can gain the lost

ground

we have enough inventory ofcapsules to helpin launch during peak

season i.e. autumn cold

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Relaunch campaign(1/2)

Advertising strategy:

Acquire new technology

Advertising message tofocus on introduction ofnew solid dosage form

Packaging and labeling:

new distinct packaging to help customerdistinguish the new offering

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Relaunch campaign(2/2)

Marketing program

Advertising campaign

Aggressive advertising campaign on national television aligned with the

time ofrelaunchConsumerpromotion

offerdiscount coupons during the re launch period

Trade promotion

provide incentive to customers i.e. wholesalers topush the sales

pricing issue

we will stick toourprevious price

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