mak 2 gsk contac

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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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