Glaxo Smith Kline is a reputable name in the world of pharmaceutical industry. They are one of the leaders and pioneers in different destinations of the world in terms of introducing most up-to-date pharmaceutical and vaccines product in the health care industry. The company was founded in the year 2000 and is headquartered in Brantford, London. The company has reported annual revenue of £25.602 billion in the year 2013. In the same year, the company was managing a workforce consist of 99,000 across the globe. The company is considered as the fourth biggest giant in the global healthcare industry in terms of distribution of drugs sales. However, there are certain problematic areas or domains experiencing by every company that is not up to the expected standard or experiencing problems in order to increase their productivity. The same obstruction will be discussed in this paper by taking Glaxo Smith Kline (GSK) into consideration. We will evaluate the marketing department of Glaxo Smith Kline (GSK) to address the business or technical problem and will provide the fruitful strategy and recommendation to overcome on that dilemma.
Management transformation in Marketing Department
Organization is the place where people working together to hit the mutual goal to come under the sphere of wealth. The organization is usually engaged with several departments and each may consist of numerous departments and the marketing department is of great importance among them. It can be referred as independent variables in organization whose actions and activities may impact other departments. This is due to the fact that the market plays an important in incrementing the financial prosperity and held responsible to bring economic alteration within the company simultaneously. Therefore, these changes may lead the company towards pro economic or anti economic aspects. The core purpose of the marketing department is to perform marketing based activities along with the effective advertisement as a whole. The efficiency of the marketing department is to portray the offerings of the company before end-users through perfect medium so that positive consequences may occur. On the other hand, strategies are always improvising element for any company to rise above and become more adaptive. Strategies are primarily applied over four categories such as product, place, pricing and last but not least promotion. Hence, the marketing department is equally significant for the GSK to augment its production and helps in making effective strategies for the company.
Inevitably, GSK has its own reputation and significance when it comes to marketing. As far as their product strategy is concerned, the company is exploiting “Analyzer” Strategy through which the company can abundantly evaluate the strategies of their direct and indirect competitor that enable them to come on to certain decision that is driven from exercising strategy. The company encompasses with a number of pharmaceutical product line that has an access to various parts of the globe. However, it is required for the company to look over and modify their strategy in particular. The present strategy that is acquired by the company is not as much effective for the GSK as it should be. The current strategy would not be proved as a valuable strategy all together due to holding a current position in the market of pharmaceutical industry . Therefore, the company should be realized from other strategy and switch over towards new strategy named “Prospect Strategy” that is more supportive and effectual for the company to examine the new market and confine their range of products by placing deep focus over the quality of the products accordingly.
The other strategy that is also required by the company to alter is a pricing strategy across different territories. It is certainly beneficial for the company to maintain different pricing strategy that will vary from place to place and country to country. The company has been dealing with the pricing strategy that is similar in all regions is based on homogenous that are considered as a COST PLUS PRICING STRATEGY, which divulges that the company is being sanctioned to charge a certain amount from the entire revenue in order to sell out their products. At this moment, the company should come across by making modifications in their pricing strategy throughout different areas of the globe as the Purchasing Power parity (PPP) of the consumers of one country is usually different from one another. In those territories, where the power of purchasing tends to be high so in that case, the company should implement Premium based pricing strategy that will ultimately assist the company to generate high economic revenue. In contrary to this, the company should put Penetration or even Competitive based pricing strategy into action.
In spite of this, there should be a certain change encountered by the company that takes place in their advertising structure. The policies and strategies included in their strategy fraction are not breathtaking and effective as we rarely follow the advertisement of GSK in different electronic or paper advertisement channel and modes. It reflects that the company has a strong believe on their offerings and their current strategies, which is a positive sign but the company should be poised to encounter any sort of mishap. As a result, the company should market their healthcare products more by using electronic and paper media in an efficient way that leads them towards the betterment and leading position in the future.
It is concluded that the Glaxo Smith Kline (GSK) is the world’s most reputed companies and facing these problems is such an alarming situation for the survival of the company. Therefore, the company should look over their loopholes and overcome all of those as earliest to avoid any misfortune in future.
Downing, D. (2013). Business Statistics: Problems and Solutions. New York: SAGE.