April 2, 2007
Glaxo Wellcome Inc’s primary business is to market prescription products to physicians and health care providers. One of the top three pharmaceutical firms in the world, Glaxo Wellcome Inc. held about 4 percent of the worldwide prescription pharmaceutical market. The U.K. based company was formed in 1995 when Glaxo Pharmaceuticals acquired Burroughs Wellcome. While the company is based in the U.K., the U.S. market represented approximately 40 percent of worldwide sales while the U.K. produced about seven percent. As of 1997 Glaxo Wellcome Inc. had 22 local operating companies in nine countries including the U.S. Because of the harsh requirements of the …show more content…
3. Pricing strategy: one of the weaknesses identified for Imitrex is its relatively high price in comparison to over the counter (OTC) medication, which is further exacerbated by the medication’s high rate of recurrence. Since most patients in the US pay either partially or fully for their medication, Amerge could be positioned as an affordable alternative to Imitrex. Amerge could be priced similar to OTC medications and its lower recurrence rate could be promoted to further emphasize its affordability. A possible downside to this strategy is devaluing the image of Glaxo Wellcome for physicians because of a perceived “lack of quality” that can accompany low priced products. On the positive side, it could detract from competitor’s noise and would allow Imitrex to continue in its position as the market leader. It could also improve the consumer perception of Glaxo Wellcome as a company that cares for patients that cannot afford expensive medication.
4. Lifestyle Segmentation Strategy: Glaxo U.S. could create an emotional appeal for Amerge by merging the facts about its efficacy, side effects and dosage with the feelings of patients. Prospective consumers seek treatment for their migraines not only to abate the pain, but also to be able to continue productivity in their lives during a migraine episode. Therefore, Amerge’s proven efficacy, combined with low risk of