Objective The objective of this portfolio Is to analyze whether Pfizer Inc. Is a market leader of producing ethical products In the pharmaceutical Industry In Hong Kong. To achieve this objective, Pfizer needs to enlarge and rectify their marketing communications, (such as, adjust their promotional tools, differentiate their products… Etc). Introduction Pfizer Inc. Is established since 1849 by Charles Pfizer and Charles Rather and up till now, it has 150 countries using their pharmaceutical products. The headquarters is located in New York, NY(USA) and the research & development location in England,
Japan, France and USA respectively. 120,000 employees in world-wide. Stock exchange listings at the New York Stock Exchange (PEE), London (FPC) Erroneous and Swiss. In 2002, the revenues is up to USED$32. 4 billions. Pfizer operations are established In Belgium, Brazil, Canada, Cuba, England, Mexico, Panama, and Puerco Roll. The variety of their pharmaceutical products is large which covers cardiovascular diseases, central nervous system diseases, ignite-urinary system diseases, upper and lower respiratory system diseases……. Etc Hank McKinley, Ph. D. Pfizer Chairman of the Board and Chief Executive Officer eating a pharmaceutical company with $32. 4 Billion revenues in 2002 and the Resources & Development budget in 2003 is $7. 1 Billion. Pfizer Inc. Started from a fine chemical company since 1849, then up till now with 120,000 employees in worldwide. Merger and acquisition allowed for rapid growth and International expansion as more than 1 50 countries use their product brought Into Hank’s vision. Pfizer Inc. , discovers, develops, manufacturers, and markets leading prescription medicine for humans and animals and many of the world’s best-known consumer brands.
Our innovative, value-added products improve the quality of life of people round the world and help them enjoy longer, healthier, and more productive lives. The company has three business segments: health care, animal health and consumer health care. According to the figure from the Financial Times (April 6th, 2000), the 3-top worldwide pharmaceutical companies in sales is from Silhouetting (ASK), Pfizer and Merck (MS) respectively. However, in 2001, the top number one In sales is Pfizer and they maintain this top level for the next 2 years up till now.
The mall reason for their tremendous growth Is that their key pharmaceutical products are able to Improve the quality of life of people. Those products are Airiest (O’Donnell hydrochloride) tablets, Neurotic (accepting), Anoraks (melodies baseball), Vicarage (goldenseal citrate) tablet, Cutthroat (astronomic), Zloty (serialize HCI) and Cortez (criterion HCI). Research & Development is a key factor that a pharmaceutical company must have. Pfizer Inc. Spent SUDS. 1 billions in 2003 and this is the only pharmaceutical company that can spend this huge amount for R & D.
Mission: Pfizer Inc wants to become the world’s most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live. Their aggressive attitude loud lead them to fulfill the task. Purpose: Pfizer dedicates ourselves to humanity’s quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer, and animal health products. Current Situation of Pfizer Inc. After the acquisition of Pharmacy, Pfizer Inc. Is now the number one in terms of corporate size and sales in the pharmaceutical industry.
The expansion of Pfizer, whose strong performance and wellspring of skills promise greater benefits to millions and millions of people and their animals. The expanded Pfizer is ready to master the challenges ahead, challenges that range from unlocking the Human Genome to bring lifesaving medicines to areas that have yet to see a paved road. Pfizer Inc. Now has world-class capabilities in virtually every therapeutic category, providing everything from basic care for people and their animals to the most serious and complex treatments for life-threatening conditions. Joining with Pharmacy moves Pfizer Inc. Loser to that goal. Pfizer Inc. Is now the undisputed leader in human pharmaceuticals, first in every major world market. Pfizer Inc. Also has, by far, the world’s largest privately funded biomedical research group, visible around the world and investing more than USED$OHIO millions every eek discovering and developing high-value medicines. Pfizer Inc. Is recognized as the world’s most charitable company, donating more than USED$2 millions in money and medicine every working day to help people in need. Much of their effort is devoted to providing people in need more access to the medicines they need.
The Pfizer brand now represents the efforts of more than 120,000 men and women responsible for many of the most important advances in human and animal health. They are now the undisputed leader in their industry. Their future, as one company, with a single purpose and mission, is sharply defined. Pfizer Inc. Wants to be the company that does more good, for more people, than any other on the planet. Values To achieve our Purpose and Mission, we affirm our values of Integrity, Leadership, Community. We demand of ourselves and others the highest ethical standards, and our products and processes will be of highest quality.
Innovation is the key to improving health and sustaining Pfizer growth and profitability. We recognize that people are the cornerstone of Pfizer success, we value our diversity as a source of strength, and we are proud of Pfizer history of treating people with respect and dignity. We are deeply committed to meeting the needs of our customers, and we constantly focus on customer satisfaction. We know that to be a successful company, we must work together by frequently transcending organizational and geographical boundaries to meet the changing needs of our customers.
We believe that leaders empower those around them by sharing knowledge and rewarding outstanding individual effort. Leaders are those who step forward to achieve difficult goals, envisioning what needs to happen and motivating others. We strive for continuous improvement in our performance, measuring results ruefully, and ensuring that integrity and respect for people are never compromised. We play an active role in making every country and community in which we operate a better place to live and work, knowing that the ongoing vitality of our host nations and local communities has a direct impact on the long-term health of our business.
Rights & Responsibilities The rights of the Company: -To recruit the best professional people for the Job -To expect an excellence level of contribution, performance and commitment -To expect respect for it values -To dismiss sales people when every cycle target did not meet To promise greater benefits to millions upon millions of people and their animals. -To do the best to provide enough support for their employees -To train medical representatives for every new products to ensure the product knowledge is excellence -To educate employees about the company’s business -To provide adequate supporting such as leaflets, gimmicks…. Etc -To listen, care and support -To be fair -To be honest to medical representatives about what price term they are offering to the doctors. -To carefully review every feed back from the medical representatives that the doctors advised Focus on Performance Pfizer is now implementing a strategy to drive performance within the global business, building on the business model and management ethic that they applied in USA.
The most important priority is to improve sales performance across the business through the launch of new pharmaceutical products, keep on reminding doctors to continuously using existing products and try to increase consumption and enlarge the ETC market. Pfizer is a strong and reliable brand, with a strong competitive position and differentiated products into different types of diseases, especially in cardiovascular and homeopathic system diseases, which appeal to a did customer base. However, Pfizer needs to communicate with their clients more effectively in order to capitalize on their opportunities.
Their current objective focuses heavily increasing profitability and sales volume of the new products of LIPTON, ANORAKS, CELEBRATE and NEUROTIC. They are seeking increased efficiency through improving much better relationship with cardiovascular professors and specialists, the sales network in HA and reorganization of the structure of the company. Marketing Communication Planning Framework (MOCK) The MOCK brings together the various elements into a logical sequence of activities here the rationale for promotional decisions is built upon information generated at a previous level in the framework.
Another advantage of using the MOCK is that it The MOCK represents a sequence of decisions that marketing managers undertake when preparing, implementing and evaluating communication strategies and plans. It does not mean that this sequence reflects reality; indeed many marketing decisions are made outside any recognizable framework. Marketing communications require the satisfaction of promotional objectives through the explicit and deliberate development of communication strategy. The MOCK will be used to show first the key elements, second some of the linkages and third the integrated approach that is required.
Context Analysis Pfizer divides operations into two segments: pharmaceutical and consumer products. Most recent full fiscal year sales were $32. 259 billions, with 91% from human and animal health products and 9% from confectionery, shaving products, and pond and aquarium products: Pharmaceuticals Human pharmaceuticals. O% Animal health care. 5% Total pharmaceuticals. 5% Consumer Products Consumer healthcare 7. 5% Confectionery 6. 2% Shaving Products 2. 0% Tetra Pond and Aquarium 0. 8% Total Consumer Products. 5% Total sales. Human Pharmaceuticals With the acquisition of rival pharmaceutical firm Warner-Lambert in June 2000, driven by Pfizer desire to gain control of full profits from sales of Lipton, Pfizer became the world’s largest ethical pharmaceutical (prescription drug) company most prescribed medicines in the U. S. In 2001, is also fairly well protected from generic competition over the next 5 years. The company has a presence in nine drug segments: *Cardiovascular–includes Lipton, the world’s largest selling cholesterol lowering agent (sales of $6. 4 billion in 2001); and anti-hypertensive such as Anoraks (sales of 3. Billion) Card ($552 million), and Cupric ($605 million) *Infectious Diseases Comprises Cutthroat broad-spectrum quinine antibiotic ($1. 5 billion); anti-fungal Difficult ($1. 1 billion) and Fend; and protease inhibitor Variance for the treatment of WIDTHS ($364 million) *Central Nervous System Zloty anti-depressant ($2. 4 billion); Neurotic anti- consultant ($1. 8 billion); Airiest, the world’s leading medicine for Alchemies which is cooperated with Assai Co. Ltd; Gideon, a new treatment for schizophrenia ($1 50 million) *Arthritis Celebrate and Baxter, cooperated with Pharmacy Argental Vicarage ($1. Billion) *Allergy Cortez, the most widely-used second generation antihistamine worldwide ($990 million) *Diabetes Glucose XSL and Exuberant *Respiratory Diseases Spirits, a one-day inhaled treatment for congestive obstructive pulmonary disorder, currently in an advanced stage of regulatory review in Europe Metabolic Disorders Loosestrife for osteoporosis, currently in Phase 2 studies in the U. S Business Context Pfizer has built the world’s largest biomedical research and development organization to support its commitment to innovation, the major driver of the company’s remarkable growth.
The industry leader in R investment, Pfizer boosted its investment in research to $4. 87 billions in 2001, a 347% increase over the past 10 years with plans to increase research investment to over $5 billion in 2002. The Warner-Lambert acquisition allowed Pfizer to build on its significant advantage in research both by adding thousands of researchers and by providing expertise in several new areas: Pfizer library of compounds effectively doubled, substantially increasing the likelihood of drug discovery.
At the beginning of 2002, the company had 94 new compounds in development together with 68 projects devoted to search focus positions the company to successfully respond to patent expiration and challenges from generics by extending the life of existing products via formula or compounding modifications or conversion to over the counter (ETC) products. Pfizer focus on R is matched by an equally strong emphasis on marketing.
The company promotes its human pharmaceutical products to health care providers including doctors, nurse practitioners, physician assistants, pharmacists, pharmacy benefits managers (Pimps), and managed care organizations (Moos. ) Pfizer also promotes its products directly to consumers in the U. S. Via direct-to-consumer (ETC) rent and television advertising. Pfizer has responded to the Food and Drug Administration’s 1997 decision to loosen restrictions on ETC advertising of prescription drugs by increasing ETC promotional spending each year Promotional Objectives The corporate goal is to become the most valued company in the world.
Pfizer commitment to discovering and developing innovative treatments and cures for diseases has improved the lives of countless people around the world. Pfizer delectation to continually enhancing its pipeline ensures that it will set the standard in new and current therapeutic areas for the future. Promotional Strategy It is a push strategy. Pfizer strong marketing and sales operations have enabled the company to become the “partner of choice” for the marketing innovative products developed by others.
Pfizer has been extremely skilled in creating alliances with other pharmaceutical companies via co-promotion agreements. Through co- promotion and licensing agreements, Pfizer promotes and markets such highly promising products as Celebrate, Baxter, Airiest, and so on with alliance partners. Pfizer provides cash, staff, and other resources to further develop, market promote, and sell the products in exchange for a share of revenues. Communication Strategy Sound clinical research is the cornerstone of Pfizer marketing and lays the foundation for communicating scientific data to healthcare professionals and consumers.
Marketing and medical personnel work closely throughout the entire life cycle of a product to provide appropriate information to the customers. This partnership ensures that all medical information from Pfizer is credible, relevant and useful to the healthcare professionals who use its products to care for their patients. Target Market Nowadays, in the pharmaceutical industry, it has 4 main target market groups and )Public Hospital under HA (Hospital Authority)’s supervision. For example, Prince of Wale Hospital, Rottener Hospital, Queen Mary Hospital…. Etc. I)Private Hospital such as SST. Terser Hospital, Evangel Hospital, Tissue Wan Adventist Hospital, Union Hospital… Etc. Iii)All General Practitioners (private doctors) and Specialists (such as Pediatrics, O & G, Surgery…. Etc) iv)ETC market, such as dispensary, Watson, Manning… Etc. Competitors Pfizer concluded that “frequently transcending organizational and geographical boundaries to meet the changing needs of our customers” was important to their argue audience, and would therefore, be a relevant and effective point of differentiation versus their competitors.
Pfizer Research & Development department keeps on focusing on developing the medicines for coronary diseases, like the successful case of LIPTON and ANORAKS developed that is sharing at least 50% of the Pfizer total business per annum. The strategic of enlarging their selling network through different media such as magazine and public relations activities that identity themselves as a top-class pharmaceutical company in coronary diseases in world- did other than the other competitors like Austereness and Innovator. Because medicine development for coronary diseases is still the priority in the pharmaceutical market now.
Marketing Plans – Marketing Mix (ups – Product, Price, People and Place) Pricing For pricing strategy, as Pfizer Inc is selling ethical products. Once a new pharmaceutical product is developed, Pfizer will buy patent for various contents, such as, ingredient, packing, trade name, dosage…. Etc so the other pharmaceutical companies are not allowed to produce and sell within the patent period. Usually, the tent is at least for 5 years or even longer. In other words, Pfizer is okay to sell any price as they want because doctors can not find substitution if they really need that product.
According to economic theory, Pfizer is in a monopolistic market. Following is a table showing the pricing strategy of one of the Pfizer key product (CUTTHROAT) for different target market groups. Producible Hospitalized Historiographer Predispositions Cutthroat HAKE$5. O HAKE$8. O HAKE$9. O – HAKE$13. 00 HAKE$15. 00 capsule) The above price unit is based on Hong Kong Dollar . This price is Just for reference as t will increase or decrease depends on market conditions. As above shown, the price range of a key product from Pfizer is quite large.
The percentage in between the lowest and the highest price can be 200%. As Public Hospital requires more consumption, the selling price would be lower while ETC market can sell high retail price so the price Pfizer sells to them should be higher. However, for General Practitioners, the price is flexible and the range is large. It all depends on the relationship between the medical representatives and the doctors and the monthly consumption. Furthermore, for public hospitals, the price should ell higher as public hospital’s fee is expensive than public hospitals.