Introduction
This document present the marketing policy and practice of the pharmaceutical company, Reckitt Benckiser and their brand, Nurofen. A recent case in the industry has surface due to the unethical marketing practice of Nurofen discussing that the brand has been using unethical marketing strategy to market their product to consumers. Marketing theories and strategy such as Pestle analysis and 4 P’s Marketing strategy, ethical theories such as utilitarianism will be included to evaluate the marketing policy of the brand. The resulting data from these evaluation are meant to provide recommendation for the company.
Background
The recent scandal in Australian, the branded painkillers, Nurofen has ordered the brand to take their
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(Voucherbox.co.uk. 2015) Nurofen has to produce a report to disclose to their consumers of the findings, and their mother company, Reckitt Benckise has agreed on an interim packaging with Australian Competition and Consumer Commission for use following the removal of all Nurofen products in Australia. (Dailymail.co.uk 2015) Findings and Analysis
Based on the findings on the Nurofen case, marketing theories and strategies will be used to analysis the case from an ethical point of view.
Marketing Mix
Price
Pricing a product is important to the brand, it produces value for the products and services, consumers frequently make a deal on what they purchase and the amount they paid for the purpose of the purchase. (Wooruff 1997) Consumers will be feel exploited when they are paying a high price for a product which do not value the amount they spent. It is not ethical to manipulate the price especially necessity good, pricing strategies must not violated on values like transparency, autonomy and honesty. (Guo 2012) As a market leader Nurofen priced their products at a high value, but these products do not value as much as their have priced. This is price discriminating, the brand is charging different consumer different prices for the same product. (Juan M 2011) Price discrimination is consider unethical, but as a
The twenty-first century has seen pharmaceutical companies grow in unprecedented size and strength. Due to the unprecedented growth the larger pharmaceutical companies have gained leverage and power in the prescription drug industry, but they lack innovation to market and they seek ways to help the business continue to increase its profits. The pharmaceutical industry was once ethically sound and was a valuable player in the development of human health. However, overtime with the lack of innovation pharmaceutical companies are becoming an unethical market that exploits patients, doctors and anyone else it can to increase its profitability. With eyes only on profitability this can create a hazard for patients because there
One primary goal of Pfizer is to deliver sustained, excellent product by outperforming Pfizer’s competitors and must differentiate itself adequately from its competitors. Competitive advantage is central to strategic management in that it will produce and sustain superior performance. To be competitive in a business environment, often it requires the company to have a product or service different and better than other organizations competing in the same marketplace. According to Wadman (2007) “Pfizer and the rest of the pharmaceutical industry need to develop more sophisticated drugs, targeted at a smaller number of people more quickly, efficiently and at a lower cost” (p. 1). Once Pfizer’s strengths, weaknesses, opportunities, and threats are assessed and analyzed, managers must decide a set of strategies to reduce or eliminate its weaknesses and capitalize on its strengths and maximize opportunities. An example is Porter’s three generic strategy approaches of differentiation, cost leadership, and focus strategy by using differentiation strategies to differentiate Pfizer from its competitors. Strategies are essential; however, it is useless unless they are effectively implemented levels of the company. Business-level strategies are typically developed and implemented by heads of business units and are first approved by top management. The functional level strategy is the last level that focuses on developing strategies for managing the various departments to
Competition is one of the major reasons why companies cut the prices of their products and services. If other companies were to charge high prices for their products, this would mean that by reducing prices, the company would attract more customers. Pricing of medicine in most cases does not depend on the available resources, but rather, a decision by the manufacturer.
The management team at the over-the-counter cold medicine (OCM) group of Allstar Brands is looking to utilize revenue generated by Allround to help fund new opportunities in emerging markets. Therefore, it is critical that Allround maintain its market-leading position in terms of market share, profitability, and sales in order to fund these new initiatives.
The report has been divided into three parts; part-1 discusses the lawsuit in detail; part-II describes company involved in the laws suit and Part-III discusses the business impact of the lawsuit. The author has tried to cover all the aspects of the issue. Part-I discusses the actual allegations, background of the allegations, key players and the relief sought. In part-II I have described background of GlaxoSmithKline, its history, products,
This paper will tempt to tell the ethical issues of the relationship that the pharmaceutical
After reviewing this case, I would not immediately carry out the director’s request. There are a lot of unknowns yet to be discovered and further investigation is warranted. According to the Code of Ethics, pharmacists must respect their covenantal relationship with the patient. By removing the product from the hospital’s formulary, patients won’t receive treatments that may improve their health.
Drug marketing can lead to false diagnosis and the medication has potential to harm to the patient.
Johnson & Johnson was founded in 1886 by three brothers in America. It is a company that sells consumer packaged goods, medical devices and pharmaceuticals and has been one of the most trusted and well-respected brands around the world. Many families use their household products, from shampoos to drugs. The worldwide company should handle all business deals and services ethically. This report will look into how well Johnson & Johnson makes decisions in terms of the health and safety of consumers, honesty and its marketing strategies.
In this case, the best option is to immediately recall the drug in the domestic and overseas markets and destroy it. Case facts and ethics went into making this decision.
Over the past couple of decades, a sudden change has started to take over the way business is done. The time when no rules applied, and anyone could do what they pleased at the cost of others or the environment is rapidly ending. Instead, companies today have become aware that it is essential for them to employ ethics and morality in their actions, if not they will be heavily scrutinized and rejected by the public. This way of thinking also applies to the pharmaceutical industry, which over the past century has been rapidly expanding. Do to the fact that this industry can determine the health and lives of millions of people, it is imperative that this industry follow an ethical and moral path.
actually illegal for pharmaceutical companies to promote off label use and there was a lot of
Yes, there is an impact on the pharmaceutical company, like those in the US as a result of differential prices between that country and other nations.
ABSTRACT Purpose: This research paper gives an insight about the processes used by local and MNCs pharmaceutical companies in Pakistan.The purpose of our research is to examine that what factors affect physician prescription behavior based on ethical grounds. Methodology: This research focuses on the strategies and marketing tools used by pharmaceutical companies in
Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).