Panadol Marketing Mix

2798 Words Mar 30th, 2013 12 Pages
Marketing Mix
Product
Consumers consider products as bundles of benefits that satisfy their need. The basic level of a product is the core benefit to the customer. People who buy Panadol for cold and flu are buying more than a pill that is used for fast effective temporary relief for symptoms of cold and flu. They are buying on-the-go health that provides close-to instant relief to the illness.
The brand, Panadol, has long dominated the retail scene. This is because GSK, the manufacturer of Panadol, has been selling their product under their umbrella company’s name. Panadol Cold and Flu is an actual product that has combined its brand name, effectiveness and eye-catching packaging to deliver its core benefit.
Product Classification
Panadol
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Moreover, we can augment the product with after-sales services. Products with defects resulting in side effects can be returned to GSK. The consumers can then submit their complaints and feedback for which they will be given cash refunds. Lastly, many consumers do not purchase Panadol because they are afraid that it will expire before they use the product. As part of our augmented product, we offer one for one trade-in services for all expired products. Even though this may increase the overall costs of Panadol, more people will be willing to buy the product and having the product on hand means that consumer usage will increase as well.

Price
Panadol has won acceptance from the majority of the target market. At the same time, its sales growth is slowing down since it is already at the maturity stage of the Product Life Cycle. To survive the increasing competition, GSK can mark down their price to maintain market share.
Pricing Strategy
Currently, it uses product line pricing to create perceived value differences that support the price differences of its various product extensions. For example, Panadol Extra, Panadol Cold and Flu and Panadol Night are priced S$3.45, S$4.50 and S$9.99 respectively.
GSK has adopted everyday-low pricing, a branch of good-value pricing, to ensure that Panadol is always affordable to consumers. The average price of Panadol Cold and Flu is S$4.50 per pack.
GSK can engage in product-bundle pricing by bundling Panadol

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