The Headaches of Glaxowellcome

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THE HEADACHES OF

GLAXOWELLCOME
Group members
Name Id#
1.Md.Tarek Rahman 1030305530
2.Md.Musfiqur Rahman 1021214030
3.Nazmul Hasan 1030124030
4.Aaquib Musfeq Chowdhury 1030514530
5.Ashik Reza 1030519030
6.Riffat Al Imam 1030234530
CASE SUMMARY
 Glaxowellcome Inc. is a Britain based pharmaceutical
company.
 It was formed in 1995.

 First company to launch “triptan”.A new class of prescription


medication for migraine.
 Launched Imigran in U.K and Imitrex in U.S.

 Both were very successful in their respective markets

 In 1997 Glaxo wanted to launch Naramig in U.K and Amerge


in U.S, their second generation triptan.
 They were successful launching Naramig in U.K choosing
replacement strategy, where they discontinued market for
Imigran.
 But they were confused how to launch Amerge in U.S.
PROBLEM STATEMENT
 First problem was Glaxo was confused how to position
Amerge in U.S market.
 Second problem was the competition from the rival
Zeneca.
 Third problem was market share of Naramig: although
Naramig did pretty well in U.K market but still 90%
market was untapped.
 Fourth problem was the differentiation between the
Pharmaceuticals markets in U.S and U.K: Where U.K
Opted for socialized health care system U.S opted for a
insurance based health care system.
ACTION
In the case we can already see that Glaxo had chosen five
positioning strategy: They are

 Clinical/patient based segmentation


 Distribution based segmentation

 An alternative to Imitrex

 A replacement for Imitrex

 Don’t launch Amerge at all


CLINICAL/PATIENT BASED
SEGMENTATION
We have chosen Clinical/patient based segmentation as our
solution to our problem
 Less powerful then Imitrex.

 Less Expensive then Imitrex.

 Lower recurrence rate.

 Using the DTC in U.S and delivering the medicines


directly to them :for example, the elderly people who
cannot go to clinics.
 Because health care system in U.S was different we
offered insurance packages to Migraine patients.
We have segmented the patients in above criteria.
DISTRIBUTION BASED SEGMENTATION
Advantages
 Better known product

 Popularity gain

 Market share

Disadvantages
 Strong logistic support

 Ethical issues

 Patients may misunderstand the product

 Promotional cost
AN ALTERNATIVE
Advantages
 Effective way to combat zomig

 Having both medicines running at the same time

 More flexibility

Disadvantages
 Confusion among patients

 Hurting Glaxo’s image

 Production cost
REPLACEMENT STRATEGY
Advantages
 Result already known to Glaxo

 Worked well in U.K

 Less production cost

Disadvantages
 U.S market is different from U.K market

 Creating new brand image

 Losing loyal patients


DON’T LAUNCH
Advantages
 No production cost
 Ignoring Zomig

 Can work in an emergency situation

Disadvantages
 Waste of all the research into developing the medicine

 Leaving zomig with an open market


CONTINGENCY PLAN
We should have a contingency plan in case of an
emergency and we have chosen “don’t launch” strategy
 As imitrex is doing really well, it will not have any effect
on our market share
 No production cost

 No further promotional cost

 Can spend all the money on Imitrex to get more market


share
CONCLUSION
It was a challenging problem for us as we had to answer a
lot of questions regarding the market positioning strategy
of Amerge. For us clinical based segmentation is the best
strategy because it takes advantages of the DTC and
insurance based health care system in U.S.

Preparing a strategy and implementing it on real time


marketing environment is two different things. We must
set our plan that support our recourses and management. It
should be logical and realistic. And we hope that our plan
will help Glaxo to increase its market share and sales.
THANK YOU

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