Smithkline Consumer Products: The

Contac Relaunch
 AGENDA

INTRODUCTION
CONTAC- present scenario
FUTURE STRATEGY
ACTION PLAN

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 INTRODUCTION

consumer health care division marketed OTC products

CONTAC was marketed by Smithkline consumer products
leading product of SKCP
accounted for over 40% of division sales
market share reached a peak of 33% in 1968
brand was associated “the pill spill” image

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 Contac – present scenario

capsules tampered with cyanide in 1986

SKCP immediately told stores to stop selling CONTAC
Consumers advised not to use CONTAC
Anti capsule sentiment fanned by media
Industry analyst predicted a bleak future for capsules

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 Environmental scan

Internal analysis External analysis

strength Opportunity
 associated with “the pill spill image” Opportunity to offer CONTAC in both
 sales regaining from previous low due capsule and solid(caplet form)
to new strategy  can capture the sales of autumn cold

weaknesses
 Received bad publicity due to Threat
poisoning incident
 Lack of technology at hand to make  market can be acquired by
product safer competitor like J&J

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 Future strategy- what should we do

We should go with a product mix of Caplets and Capsule(with better and

safer packaging)

Why?
 Will help in reaching broader consumer base i.e Caplets(41%) and
Capsules(47%)
 will help in winning back the wholesaler's confidence towards the product
 Its best time to launch Contac in new form as it has to be re-launched in
capsule form also

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 Action plan- How to implement
First step
Take management in confidence for the re-launch
its our major revenue generator so, scrapping it can have negative effect
on company financially
with a strategy similar to launch of a new product we can gain the lost
ground
we have enough inventory of capsules to help in launch during peak
season i.e. autumn cold

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 Relaunch campaign(1/2)

Advertising strategy:
Acquire new technology
Advertising message to focus on introduction of new solid dosage form

Packaging and labeling:

new distinct packaging to help customer distinguish the new offering

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 Relaunch campaign(2/2)

Marketing program
Advertising campaign
 Aggressive advertising campaign on national television aligned with the
time of relaunch
Consumer promotion
 offer discount coupons during the re launch period
Trade promotion
 provide incentive to customers i.e. wholesalers to push the sales
pricing issue
 we will stick to our previous price

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 A NK
T H
Y O U
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