Presentation2 Strategic Marketing Review

Our Vision GSK’s vision is inspiring: “Our Vision GSK’s vision is inspiring: The opportunity to make a difference to the millions of lives everyday” At GSK we perform in unison, by following our strong value system and ethical guidelines as a source of guidance and inspiration, which helps us achieve our vision Each and every member of the GSK family plays a vital role in improving the quality of human life GSK’s growth and development can be attributed to the contribution of the skills, talents and ideas of its people’s follows its core values of respect for people, patient focused, transparency and integrity We are proud of our commitment that enables us to enhance the quality of peoples’ lives and helps us to provide them with quality products Our Mission GSK’s quest is to improve the quality of human life by enabling people to “do more, feel better, and live longer” At GSK our mission acts as an underlying principle to whatever we We follow a legacy of great science and innovative healthcare that provides people around the world with healthier and fulfilled lives, every single day Our Values Respect for People We believe that respecting each other is the key to progress and growth for our business, employees and customers Our employment practices are designed to create a culture, in which all GSK employees feel valued, empowered and inspired to achieve our goals Patient Focused Our commitment to our purpose of improving the lives of billions ensures that all our efforts, be it research, manufacturing or distribution are geared towards improving patient access to quality health solutions Transparency As our business evolves to meet global challenges, so our existing systems for which transparency is integral By being transparent about what we and how, we earn and build trust Integrity Our guiding principles go beyond complying with legal and ethical regulations Each member of the GSK family takes pride in doing what is right for the patients and consumers, placing them at the heart of every decision we make In doing so, we demonstrate integrity in action, at every level, every day CURRENT STRATEGIC DIRECTION: Strategic Priorities We are focused on the delivery of five strategic priorities to achieve our mission of helping people more, feel better and live longer Everyone at GSK has a role to play in delivering our strategic priorities: Grow a diversified, global business We are creating a more balanced business with a wider global reach and broad portfolio This expands access to our products and produces sustainable growth for our shareholders Deliver more products of value We are investing in innovation to improve our ability to create new medicines, vaccines and consumer healthcare products that offer valuable improvements in treatment Create a culture of individual empowerment We are building a culture where employees are empowered, united by our values and able to achieve great things Simplify the operating model As our business continues to change shape, we are transforming how we operate so that we can reduce complexity and become more efficient This is allowing us to free up resources to invest in other areas of the business and improve shareholder returns Building trust We are committed to operating responsibly and ensuring that our behaviour and actions meet or exceed the expectations of society About GlaxoSmithKline Pakistan Limited • GlaxoSmithKline Pakistan Limited was created January 1st, 2001 through the merger of SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Welcome (Pakistan) Limited- standing today as the largest pharmaceutical company in Pakistan  As an industry leader we are committed to our mission of providing patients quality products to help improve their lives • GlaxoSmithKline (GSK) is a world leading research-based pharmaceutical company with a powerful combination of skills and resources that provides a platform for delivering strong growth in today's rapidly changing healthcare environment  GlaxoSmithKline Pakistan Ltd was formed in 2002 as a result of the global merger of two pharmaceutical giants; GlaxoWellcomeplc and SmithKline Beecham plc FINANCIAL POSITIONS Income statement in PKR Year on year GlaxoSmithKline Pakistan Ltd grew revenues 10.51% from 25.23bn to 27.88bn while net income improved 58.82% from 1.06bn to 1.69bn REVENUE NET INCOME Cash flow in PKR In 2013, cash reserves at GlaxoSmithKline Pakistan Ltd fell by 218.48m However, the company earned 1.06bn from its operations for a Cash Flow Margin of 4.19% In addition the company used 285.20m on investing activities and also paid 989.81m in financing cash flows CASH FLOW CASH ABOUT EMPLOYEES     GlaxoSmithKline plc is rated # in number of employees category among related companies The total workforce of Drug Manufacturers - Major industry is currently estimated at about 789,792 GSK retains roughly 99,451 in number of employees claiming about 13% of equities under Drug Manufacturers - Major industry About Number of Employees Employee typically refers to an individual working under a contract of employment, whether oral or written, express or implied, and has recognized his or her rights and duties Most of corporations are included as employees and contractors are generally excluded Compare Gsk to competition predict GSK Based on recorded statements GlaxoSmithKline plc is currently employing 99.45 K people This is 1190.38% higher than that of the Healthcare sector, and 546.29% higher than that of Drug Manufacturers - Major industry, The Number of Employees for all stocks is 967.71% lower than the firm Pharmaceuticals competition • The pharmaceutical industry is highly competitive GSK’s principal competitors range from small to large pharmaceutical companies often with substantial resources Some of these companies and their major products are mentioned below Pharmaceutical company Eli Lilly and Company is an American global pharmaceutical company with headquarters located in Indianapolis, Indiana, in the United States The company also Lilly and has offices in Eli Puerto Rico Company and 17 other countries • • Pfizer Pharmaceutical company Pfizer, Inc is an American multinational pharmaceutical corporation headquartered in New York City, and with its research headquarters in Groton, Connecticut, United States It is one of the world's largest pharmaceutical companies by revenues • Merck & Co Pharmaceutical company Merck & Co., Inc., d.b.a Merck Sharp & Dohme, MSD outside the United States and Canada, is an American pharmaceutical company and one of the largest pharmaceutical companies in the world Merck headquarters is located in Kenilworth, New Jersey What is company doing? • GSK manufactures drugs and vaccines for major disease areas such as asthma, cancer, infections, diabetes, digestive and mental health conditions, the biggest selling of which were,Avodart,Flovent,Augmentin,Lovaza, and Lamictal in 2013Many medicines were historically discovered or developed at GSK and its predecessor companies and are now sold as generics Its drugs and vaccines earned £21.3 billion in 2013 Its consumer healthcare division, which earned £5.2 billion in 2013, sells oral healthcare and nutritional products, drinks and over-the-counter medicines, including Sensodyne Boost and Horlicks • GlaxoSmithKline received top ranking among international pharmaceutical companies in the Access to Medicines Index in 2010, 2012 and 2014.In 2014 the company applied for regulatory approval for the first vaccine against malaria The vaccine was developed as a joint project with the PATH vaccines initiative and the Bill and Melinda Gates Foundation The company has committed to make the vaccine available in developing countries for a price set at 5% above the cost of production GlaxoSmithKline PESTEL Analysis GlaxoSmithKline PESTEL Analysis  The level of implementation of  GlaxoSmithKline (GSK) marketing strategy is subject to a range of external and internal factors that shape overall marketing environment for the business PESTEL strategic analytical tool can be used to study the impacts of external factors to the business where the abbreviation stands for political, economical, social, technological, ecological, and legal factors Political factors: Political factors affecting the implementation of GSK marketing strategy include possible changes in international trade regulation and competitive regulation likely to be introduced by the governments of China and India Economic factors :Economic factors impacting GSK marketing strategy include high rate of economic growth in China and India Moreover, current economic uncertainties associated with European markets might have negative implications on the marketing strategy Social factors: Social factors with potential implications on GSK marketing strategy are changes in consumer lifestyles, shifts in consumer attitudes and opinions etc However, Cameron (2012) specifies increasing level of customer resentment towards large amounts of profits made by pharmaceutical companies and sliding images of large pharmaceutical companies as the most significant social factor in the current environment Technological factors: Technological factors include breakthroughs in pharmaceutical industry, issues associated with licensing and patenting drug manufacturing technology, as well as, the level of development of industry technology Ecological factors: Ecological factors also have specific implications on GSK marketing strategy that include problems related to global warming, and impact to the environment of GSK activities, and the reaction of stakeholders to this impact Legal factors:Legal factors as one of the most important factors involve rules and regulations directly and indirectly related to GSK operations in local markets, as well as, European law and international trade rules, regulations and agreements  ... integrity in action, at every level, every day CURRENT STRATEGIC DIRECTION: Strategic Priorities We are focused on the delivery of five strategic priorities to achieve our mission of helping... of  GlaxoSmithKline (GSK) marketing strategy is subject to a range of external and internal factors that shape overall marketing environment for the business PESTEL strategic analytical tool... GSK marketing strategy include high rate of economic growth in China and India Moreover, current economic uncertainties associated with European markets might have negative implications on the marketing