Case Study 2 : Pfizer, Inc

Presented by

Wahida Wahap & M.Babur Farrukh

Drugs industry nowadays

Plan
DIAGNOSTIC
Market segmentation Targeting and positioning strategy Advertising and salesforce strategy

SOLUTIONS
Structure of the organization Weaknesses of Pfizer’s pipeline Pfizer’s options

Diagnostic of Pfizer’s strategies

What are the options?

Smaller and smaller market segment

But Pfizer still uses a blockbuster strategy

Other Pfizer’s Blockbuster Babies

Targetting the mass market

And high-growth drug operation

Targeting strategy Other points
 Bigger portfolio and targeted/niche product  Politicians Marketing  Target strategy for Viagra

Pfizer’s Position Strategy

Well let’s say Here

Positioning strategy
 Advertising casing/shells
– Pfizer's annual advertising budget is $3 billion -- the fourth-largest in the U.S. as of 2003

 Mixing glib advertising and medicine
 Pitch erectile dysfunction drugs

Smaller and smaller market segment

Before

Now

Smaller and smaller market segment

Before

Now

Smaller and smaller market segment

Before

Now

38000

ISSUES
• Organisational structure • Frontal Attacks from Competitors
to

Pfizer needs to change its structure
 Smaller groups  Bottom top communication

Frontal Attacks from Competitors

SOLUTIONS
 Fortress Defence Strategy • Skimming and Harvesting Strategy  Product Pipeline and weaknesses

Fortress defense strategy has to be adopted

Skimming and harvesting strategy

People Prefer doing Self Treatment

Adapt to each segment needs

Products’ pipeline Other Weaknesses
 Expensive development : $70 billion for each product in 2004 → Centralize labs  Distribution controlled by the government → work hand in hand with the government

Products’ pipeline Other Weaknesses

What are the options and conclusions for Pfizer ?

Other options

Other options

Other options

Other options options

Other options

CHANGE THE SALES MODEL

References:
 

Barrett, Amy; Pfizer’s Funk, BusinessWeek, Feb 28,2005, pp72-82 Pfizer Homepage; http://www.pfizer.com/home/
Pfizer wins Viagra patent challenge Monday, August 15, 2011 6:45 PM

 

http://www.istockanalyst.com/business/news/5359628/pfizerwins-viagra-patent-challenge The problems with today's pharmaceutical business—an outsider's view http://www.nature.com/nbt/journal/v29/n1/full/nbt.1748.html Peter Reed, Strategic Marketing Decision making and planning edition 3

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