Detailed Marketing and Management Report: GlaxoSmithKline (GSK)

This report provides a detailed analysis of the marketing and management strategies employed by GlaxoSmithKline (GSK), a leading pharmaceutical company. It begins with a brief overview of GSK, its products, and its marketing orientation. The report then delves into the 5Cs analysis (Company, Customers, Collaborators, Competitors, and Climate) and a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. Furthermore, a PESTLE analysis examines the external factors influencing GSK. The report includes an analysis of market research conducted to address marketing issues, particularly concerning new product launches. It then develops a comprehensive marketing strategy for the organization, including market segmentation, brand positioning, and the application of the marketing mix (4Ps: Product, Price, Place, and Promotion). The report highlights GSK's vision, market trends, customer needs, and the role of collaborators and competitors. The report also includes the market research and analysis and developing marketing strategy. The report concludes with an assessment of the company's positioning and marketing tactics.

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Marketing & Management
Introduction.
This report will encompass a detailed analysis of marketing and management of GSK
GlaxoSmithKline Company. GlaxoSmithKline is among the largest pharmaceutical company
manufacturing medicine. The report in particular will focus on brief description of the company
and the marketing orientation used in the organization. It will also entail the 5C`s of the
organization, SWOT and PESTLE analysis. A market research to offer the solution for issues in
the marketing will similarly be analyzed especially in launching any new products. Finally, the
report will develop a marketing strategy for use in the entire organization.
Brief Description of Organization
GlaxoSmithKline is the leading and most common pharmaceutical company in the word,
and has been active in the health department for a very long time. The company has been able to
manufacture variety of health products and medicines that used to cure diseases and improve
health condition in people. These products include health care, prescription drugs and vaccines
which serve a perfect role in treating illnesses. Of course doctors, who are confident over the
quality of medicines advice accordingly on which medicine is right for what condition. Notably
the pharmaceutical company has contributed widely in impacted on the health care state
spending millions on research and development. As such it is among first three companies that
contribute in the health care department. Due to a well-established channel of distribution, the
company is sure of good market share, hence can effectively overcome competition. It is
important that the organization achieves its objectives and issue medicine and other products
consistently and be updated on the bargaining power of buyers and suppliers.

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Vision statement for GSK GlaxoSmithKline
The vision for GlaxoSmithKline (GSK) is to ensure their value chain neutralizes carbon
in the years to come, preferably by 2050. In one its recent activities, the company collaborated
with the University of Nottingham to create a new laboratory to serve as Centre of Excellence for
sustainable chemistry and to establish an innovative carbon neutral sustainable chemistry
laboratory (Verhohlen, 2008, p. 137).
Marketing Strategy
Marketing strategy encompass the activities carried out by an organization to create
awareness of either a service or product to customers (Varadarajan, 2010). In short, the activities
are carried in an orderly manner for purposes of promotion and selling products and services. In
this context, GlaxoSmithKline (GSK) as the biggest pharmaceuticals company, should ensure the
best procedures to capture the needs of customers and maintain a stable position.
The company main strategy is to serve the needs of its customers with healthcare needs
by creating consumer preferred and brands recommended by experts. In order to accomplish
such a target the company focuses on innovation to establish the best brand worldwide and
ensure good relationships with retailers, healthcare staffs and customers.
Products
The organization provides specifically medicines that are prescribed, vaccines and other
related healthcare products. Prescription medicines are used to treat most of the chronic diseases,
vaccines for prevention and health products to provide a comfort to problems like aching teeth,
flu and pain on the joints.

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Analyze each 5C’s of organization
Market trend
GlaxoSmithKline (GSK) Company is fast growing with new emergence in technology.
Therefore, marketing analysis is conducted using SWOT analysis and other related theories. -
SWOT Analysis
GlaxoSmithKline Strength
1. Out of the top five known pharmaceutical companies, GlaxoSmithKline is at the top most.
2. GlaxoSmithKline Company inhibits an effective and sustainable research and development
departments which facilitate field studies and developing medications (Zaman, 2011).
3. The company took an award in the Chemical industries and is equipped with efficient energy
resources.
4. GlaxoSmithKline is known as a multinational company and operates its activities in a
number of countries in the world, about 100.
5. The company has a good number of employees who assist in carrying out its business all
over the world.
GlaxoSmithKline Weaknesses
1. GlaxoSmithKline`s image to the public has been compromised due to the problem of safety
of drugs.
2. The continuous misuse of substance and cases of illegal drugs is likely to tamper with the
business.
3. The company suffered a bad reputation when its products expired hence a damage in health.
4. The company must be cautious anytime it manufactures medicines because some of the
drugs are no longer accepted.

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GlaxoSmithKline Opportunities
1. GlaxoSmithKline is able to promote its activities by entering into partnerships with other
companies in related field.
2. The company can start a campaign create more awareness pertaining to health, in turn
increasing the business scope.
3. GlaxoSmithKline can exercise the mergers so us to gain popularity in all over.
4. A lot of health care problems emerge daily which the company has to company has to
provide a solution.
GlaxoSmithKline Threats
1. GlaxoSmithKline take the risk to prepare medicines (Leonhardt, 2010).
2. The company perseveres strict rules and regulation concerning the manufacture and
distribution of medicines.
3. Economic changes, affect the provision of medicines to clients (Anika, 2014).
4. Threat from other companies.
5. The medicines of this company are precious thus buyers feel lazy to buy these products, and
this is another factor that slows down the sales process.
Customers
The customers for GlaxoSmithKline products include all people weather sick or healthy.
The medicines are meant for sick people whereas health products can be used by anyone.
Therefore, the company targets every type of market and also the medicines are sold to
developing countries to generate revenue from sales (Shang et al., 2009. p. 146-163).

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Collaborators
Collaborators are important in implementing the stages fostered to meet the needs of
customers (Muslimah and Simatupang, 2014). After manufacturing process, variety of medicines
and health products are handed over to retail market to complete the supply chain, hence retailers
are in charge of reaching the customer and boosting the company`s revenues.
Competitors
Due to an increasing demand in health care, a number of companies have emerged pose
threat to GlaxoSmithKline. GlaxoSmithKline’s main competitors are Novartis and Incepta
pharmaceuticals limited among other new pharmaceutical companies.
External affecting factors
Technological factors
GlaxoSmithKline Company manufactures medicines by incorporating the modern
technology and succeeded in faster production (Tukdeo, 2016). Technological factors entail a
progress in pharmaceutical industry, issues associated with licensing and patenting drug
manufacturing technology and also the level of development of industry technology.
Social factors-
Social factors affecting GlaxoSmithKline are basically the alteration in lifestyle, change
in attitude and opinion of consumers. However the most significant social factor in the current
environment is high level of customer resentment towards large amounts of profits made by
pharmaceutical companies and sliding images of large pharmaceutical companies (Jahan, 2018).
Market research and analysis
Market research for an organization is a set of activities carried out to acquire adequate
information concerning the demand of a product or identifying opportunities for a given brand.

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The base line for many successful businesses is the accuracy and vigorous research which
provide a sufficient information about customers, competitors and the whole organization
(Doole, Isobel and Lowe, 2008). The management in this case is able to predict the success of a
business before allocating resources in place.
Primary survey
Gathering a primary information can either be in two forms; explanatory and specific
(Brace, 2018). Explanatory research which assist in defining a particular issue is open ended for
instance interviews with long answer. On the contrary, specific research is précised in its
structure and provide solution for problems identified by explanatory research. Interviews are
also used in type of survey but formal.
GlaxoSmithKline limited conducted a primary research, which its key concern was to
find out how much the company`s products are popular in the market. Additionally, the research
focused on exploring the customers` preference and taste for healthcare products and medicines.
The customers include everyone, whose urge is to maintain good health and living.
Customer needs
The company realized the demands of the customers after surveying the market. The
study found out that customers are interested health products that can easily get accessed and
also affordable. This is attributed by the fact that most individuals are become more active in
managing their personal health.
Potential threat
According to the outcome in the survey, the potential threat for GlaxoSmithKline
Company is Novartis. Novartis is also a pharmaceutical company that issues healthcare services
(Kanneganti and Synn, 2014). Similar to GSK, the company specializes in researching,

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developing, manufacturing and marketing different healthcare products. It therefore means, for
GlaxoSmithKline to respond to such a threat, it must implement the marketing strategies
successfully.
Changing context of business
Analyzing the changing trends in the business, customers are likely to get persuaded and
opt for the products by the competitors, especially in the products the company does so well in;
pharmaceuticals, Consumer Health and Vaccines
Role of collaborators
The GlaxoSmithKline team is basically determined to forge drug development
partnerships with academia, venture firms, and biotechnology startups. In addition, the UK drug
maker can provide the company with capabilities in high-throughput screening for drug
candidates, chemical and pharmacological assessments, research and development and marketing
expertise.
Opportunities & threats in accessible and affordable health services.
During the survey, customers expressed continued demand for good health. It was
analyzed that there are ample of opportunities for affordable and accessible health care.
Developing marketing strategy
Market segment & positioning of brand
Market segmentation is an essential area in the marketing strategies for achievement of
goals by a business. It works such that, it allows for the identification of esteemed customers
from the overall population. The best method to implement for successful marketing strategy is
STP, which imply modern marketing methods.

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Potential Market segment
Due to different interests and preferences, it is not easy to appeal to the whole population,
thus the need to develop marketing strategies for satisfaction of the right customer (Obaga et al.,
2013, p. 2278-3823). The medicines and healthcare products of GlaxoSmithKline are provided to
all patients ranging from high, to middle to low class. Since the patients require treatment, these
medicines are recommended by the doctor after knowing the disease. The company has policy of
providing health to every person despite age, gender, race on religion.
Proposition statement
It is important to remain aware of value statement of customers in regard to a product or
service in any competitive environment. GlaxoSmithKline Company created a new consumer
healthcare joint venture with Novartis and acquired its global vaccines business, excluding flu
vaccines. Also it has divested its cancer drugs to the Swiss company. This move has ensured
consumers healthcare forms 25% of GSK`s business in overall and 75% represents the
pharmaceuticals and vaccines. In the whole world today, GSK consumer healthcare is now the
top in manufacturing over the counter drugs, meaning appropriate for growth and innovation
(Khan, 2013, 56-65).
Brand positioning statement.
Brand positioning refers to seeing if the customers can prefer a brand over another.
Effective positioning strategy gives a solution for the issues of customers. Besides, consumer
healthcare products is relies on brand loyalty and trademark protection. The company,
GlaxoSmithKline has differentiated its brand by using a specific trade mark. Some of it heritage

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brands like Horlicks and ENO are still known today after a number of years since their first
manufacturing (Latif et al., 2016)
Analysis of the STP strategy
For a company to establish a difference in its brands with other related companies, it must
use STP marketing strategy which is a modern marketing tool. GlaxoSmithKline Company has
therefore developed an end to end brand marketing where it is runs the entire stages of branding,
from production stage up to the final product.
Developing Marketing Tactic
Marketing Mix
It is in order to plan a proper marketing strategies and techniques for acquiring
competitive advantage in a business environment. The elements in marketing mix thus are a tools
that are directed in a manner to achieve the ultimate goal, with the most priority satisfying the
needs of a customer. An organization thrives to plan its product, pricing, place and promotion
that are the 4P`s of marketing mix (Fatma, Sabeeha and Chandra, 2014).
Below is the marketing mix for GlaxoSmithKline Company;
Products
GlaxoSmithKline Company provides two diversified products; hose are pharmaceuticals
and consumer healthcare. For the pharmaceuticals, the company manufactures medicine that are
used to cure and prevent diseases. This for instance, include, mental health, diabetes, asthma and
cancer. Some of the best-selling products include Avodart, Advair, Augmentin, Flovent,
Lamictal and Lovaza. Moreover, a lot of medications have been developed at its facilities, hence
sold as generics. For bacterial infection the product used include amoxicillin, for HIV it is

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zidovudie and for herpes valacyclovir is the product. Also, medicines are available. Consumer
healthcare include oral health products like toothpaste and nutritional drinks (Shang, 2008, p. 1-
13).
Places
GlaxoSmithKline has its businesses on in more than 115 countries with thousands of
employees. One of the biggest market for the company America where it also has its
headquarters. GlaxoSmithKline Company relies a lot on research and development programs and
is known as the largest investor for Research and Development (R&D). The sites for R&D is in
the US, UK, India, France, China and Canada. The company also has equipment for
biopharmaceutical products in Hungary, Germany, Canada, Belgium and the United States.
Manufacturing activities are based in United States, Ireland, United Kingdom, Singapore,
Romania, Poland, Malaysia, Italy, France and Australia. For consumer products, it has
manufacturing facilities in Kenya, Brazil, Canada, United States, Ireland and the United
Kingdom. GlaxoSmithKline Limited inhibits strong distribution facility and its consumer
products are easily available in supermarkets, hypermarkets and its over-the-counter medications
are available at prescription stores and medical facilities
Price
GlaxoSmithKline Company has adopted the most reasonable policy for pricing because it
targets to reach a wider market. The pricing policy ensure prices are can be met by all the
company`s customers. It has kept its profit margin minimum to deliver maximum benefits
through rational prices. Revenues of GlaxoSmithKline were estimated at 27206.91 million

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dollars and a profit of 9521.22 million dollars in its 2015 financial year. The ultimate goal of the
company is to create a distinction in the global market through its products portfolio (Mahesh,
2012).
Promotion
GlaxoSmithKline Company majorly promotes its products using Televisions and other
social media platforms (Weber, 2009). The promotions have ascertained the brand has
persistently delivered quality. GSK seeks help from experts while marketing many products and
wins the customer trust. Occasionally, the company issues discounts in most products and sales
discounts to the retailers. GSK Consumer Healthcare has participated in most social activities
which support various forums in providing education, healthcare, supporting the societies nearby
its manufacturing units by providing certain services like lighting facilities, water facilities,
disaster support and other voluntary activities by its employees.
Analysis of the Marketing Mix-
Marketing mix strategy is supposed to be made in relevance with the market research and
market opportunities. The strategy involve the brand positioning of the product and
differentiating it from the existing products. Organization has highly relied on its production of
accessible and affordable medicine and health products. Apparently, promotion in a business
plays the role of spreading information and knowledge concerning the product by making the
product known to customers (Romaniuk, 2009, p. 143-150). GlaxoSmithKline Company has
selected the large scale promotional activities through advertisements. Additionally, the
organization has also implemented world-class processes for providing superior quality products
to customers.