Situation of Warner-Lambert currently

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Warner Lambert developed and then provided to all U.S.-based colleagues a folder of resource and reference material to help individuals talk to children about the dangers of drugs.

Recognizing the difficulty of raising the issue of drug use with employees, and the issue of potential drug use by their children in particular, the Stop the Silence kit was sent directly to all U.S.-based colleagues at home, rather than in the workplace.

The company has experienced a noticeable increase in calls to their confidential Colleague Assistance Program.  In 1997, the percentage of CAP contacts that presented a problem of substance abuse rose dramatically from 2 percent to 37 percent.   In addition, there were numerous requests for additional copies of the kit for distribution to community groups.  

Peritrate proved useful in a wider application of treatments than originally allowed, and the Food & Drug Administration (FDA) approved of Peritrate's "new drug" usages in 1959. Over the next several years, however, Warner embarked on a controversial Peritrate advertising campaign. Appearing in several medical journals, including the Journal of the American Medical Association, ten page ads advocated the use of Peritrate not only for the treatment of angina, but as a "life-prolonging" prophylactic for all cardiac patients. The advertisement, based on the results of one study, was released at a time when the FDA had initiated an increasingly aggressive policy of evaluating claims for drug effectiveness. Even as the director of the study refuted the advertisement claims, Warner-Lambert executives stood by the claims for the effectiveness of their drug. However, by 1966, the government, under the directive of the FDA, seized a shipment of the drug, bringing charges against the company's unapproved advocacy of an even wider usage for the drug.

Task 2

In this task I have understood that I have to analysis the boston consultancy group matrix and how it can be used to effectively in identifying possible future strategies for warner lamberts.

The BCG matrix is used for market share and market growth. understand the Boston Matrix you need to understand how market share and market growth interrelate.

Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms.

The higher your market share, the higher the proportion of the market you control.

The Boston Matrix assumes that if you enjoy a high market share you will be making money. (This assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage).The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you money?" The answer is, "not necessarily." This is where market growth comes into play. Market growth is used as a measure of a market's attractiveness.

Markets experiencing high growth are ones where the total market is expanding, meaning that it's relatively easy for businesses to grow their profits, even if their market share remains stable. By contrast, competition in low growth markets is often bitter, and while you might have high market share now, it may be hard to retain that market share without aggressive discounting.  This makes low growth markets less attractive.

Understanding the BCG

The Boston Matrix categorizes opportunities into four groups, shown on axes of Market Growth and Market Share:

These groups are explained below:

Dogs: Low Market Share / Low Market Growth

In these areas, Warner Lambert presence is weak, so it's going to take a lot of hard work to get noticed. You won't enjoy the scale economies of the larger players, so it's going to be difficult to make a profit. And because market growth is low, it's going to take a lot of hard work to improve the situation.

Cash Cows:

High Market Share / Low Market Growth

Here, you're well-established, so it's easy to get attention and exploit new opportunities. However it's only worth expending a certain amount of effort, because the market isn't growing and your opportunities are limited.

Stars:

High Market Share / High Market Growth

Here Warner Lambert well-established, and growth is exciting! These are fantastic opportunities, and you should work hard to realize them.

Question Marks (Problem Child):

Low Market Share / High Market Growth

These are the opportunities no one knows what to do with. They aren't generating much revenue right now because you don't have a large market share. But, they are in high growth markets so the potential to make money is there.

How to use this:

Step One: Plot your products on the worksheet according to their market share and marke growth.

Step Two: Classify them into one of the four categories. If a product seems to fall right on one of the lines, take a hard look at the situation and rely on past performance to help you decide which side you will place it.

Step Three: Determine what you will do with each product/product line. There are typically four different strategies to apply:

Build Market Share: Make further investments (for example, to maintain Star status, or to turn a Question Mark into a Star.)

Hold: Maintain the status quo (do nothing)

Harvest: Reduce the investment (enjoy positive cash flow and maximize profits from a Star or a Cash Cow)

Divest: For example, get rid of the Dogs, and use the capital you receive to invest in Stars and Question Marks.

Task 3

In this task I have been asked to identifying the result of porter generic strategic model to Warner Lambert by applying. The results of this model are as follows,

Competitive advantage:

Selling or servicing a product in a lower price it is the great to hold the market position. Which do you prefer when you fly: a cheap, no-frills airline, or a more expensive operator with fantastic service levels and maximum comfort? And would you ever consider going with a small company which focuses on just a few routes? The choice is up to you, of course. But the point we're making here is that when you come to book a flight, there are some very different options available. Why is this so? The answer is that each of these airlines has chosen a different way of achieving competitive advantage in a crowded marketplace. The no-frills operators have opted to cut costs to a minimum and pass their savings on to customers in lower prices. This helps them grab market share and ensure their planes are as full as possible, further driving down cost. The luxury airlines, on the other hand, focus their efforts on making their service as wonderful as possible, and the higher prices they can command as a result make up for their higher costs.

The Cost Leadership Strategy

Porter's generic strategies are ways of gaining competitive advantage - in other words, developing the "edge" that gets you the sale and takes it away from your competitors. There are two main ways of achieving this within a Cost Leadership strategy:

Increasing profits by reducing costs, while charging industry-average prices.

Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs

The Cost Leadership strategy is exactly that - it involves being the leader in terms of cost in your industry or market. Simply being amongst the lowest-cost producers is not good enough, as you leave yourself wide open to attack by other low cost producers who may undercut your prices and therefore block your attempts to increase market share.

You therefore need to be confident that you can achieve and maintain the number one position before choosing the Cost Leadership route. Companies that are successful in achieving Cost Leadership usually have:

Access to the capital needed to invest in technology that will bring costs down.

Very efficient logistics.

A low cost base (labor, materials, facilities), and a way of sustainably cutting costs below those of other competitors.

The Differentiation Strategy

Differentiation involves making your products or services different from and more attractive those of your competitors. How you do this depends on the exact nature of your industry and of the products and services themselves, but will typically involve features, functionality, durability, support and also brand image that your customers value.

To make a success of a Differentiation strategy, organizations need:

Good research, development and innovation.

The ability to deliver high-quality products or services.

Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.

Large organizations pursuing a differentiation strategy need to stay agile with their new product development processes. Otherwise, they risk attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments.

Task 4

In this task I have been asked to offer marketing matrix to Warner Lambert. The marketing matrixes of this organization are as follows,

Business strategy matrix:

The vertical axis represents the industry attractiveness. The expert system will position your enterprise on the chart based upon your description of:

bargaining power of the buyers

bargaining power of the suppliers

internal rivalry

the threat of new entrants

the threat of substitutes

The horizontal axis represents the firm's competitive strength or ability to compete in the industry. It includes an analysis of:

the value and quality of the offering

market share

staying power

experience

You can trace through the supporting analysis and its conclusions, adjusting your input until you are satisfied your description accurately characterizes your enterprise.

Sales Marketing strategy:

Many companies have salespeople running all over the country while the right hand (sales) does not know what the left hand (marketing) is doing. Marketing usually operates in one area, sales in another, and never the twain shall meet. The two never talk to each other. They are not in sync. They are not aligned. When that occurs in a crowded marketplace, your sales will flounder. The sales staff has to carry the marketing banner. There has to be consistency. When the two are aligned, the resulting consistency always produces improved sales. As a survey conducted by Learning International revealed, alignment is a real challenge for sales managers to address.

Any sales or marketing strategy can be either focused or diffused. The key to alignment is for sales and marketing to both work from the same focused strategy. Success cannot be expected if a misalignment occurs between two departments with ineffective, diffused strategies. Here are the distinctions between focused and diffused strategies:

Focused Strategy

Clearly defined

Well-known

Accepted

Diffused Strategy

Unclear

Unknown

Not accepted

The Strategy Alignment Matrix

The possible strategies a company's marketing and sales departments may employ can be depicted in four ways. First, both the marketing and sales strategies can be focused. Clearly, this is the most effective combination. It is also possible for either one to be focused while the other one diffused. Finally, the worst case scenario, both strategies can be diffused.

Here is a matrix that graphically illustrates the four possible combinations of marketing and sales strategies:

On the left side of the Strategy Matrix chart you see the two possible sales strategies. Then, across the top of the chart, we have placed the two possible marketing strategies. The intersections of each heading in the matrix correspond to the predicted outcome of using one of the four possible combinations. We will now individually examine each of these four possibilities, providing anecdotes to illustrate each situation.

Task 5

In this task I have been asked to provide a recommendation to Warner-Lambert. My recommendations are to marketing director Warner-Lambert is as follows.

Establish a memorable and unmistakable brand identity:

The secret to business success is determined by your ability to powerfully communicate your business with laser precision and your ability to deliver a clearly-defined and consistent experience. In a nutshell... it's called branding, and, when done right, it ensures a thriving business with all the customers and profits you need. The secret is to establish a powerful brand identity that sings distinction. And establish that identity before you launch any marketing activities.

Create a deep connection with your core target audience:

Warner-Lambert potential raving fans! Who wants and needs what you have to offer? The only wrong answer is "everyone." If you're a pediatrician, you may see infants and children. Are they your target audience? No! They are your patients, but it's the parents Warner-Lambert needs to connect with to get the kids in your door. And it's not just any parents - it's a definite group of parents. In marketing, you get a lot more "bang for your buck" if you focus your spending on a well-defined group of people that you enjoy working with. The better you define this group, the more effective your marketing can be.

Design compelling offerings that pull customers in like a magnet.

80% of all purchase decisions are based on emotion. It's your job as a marketer to know how your customers want to feel and to get them to visualize how your services can meet their needs. People want to know, "What's in it for me?" Tap into the emotion and create offerings that touch your customers.

Competitive situation

Analyze your main competitors - who are they what are they up to - how do they compare - feature/ benefit analysis. What are their competitive advantages?

Opportunity and issue analysis Which requires conduction a SWOT analysis (Strengths, Weaknesses, Opportunity and Threats)? Things to write down her are what current opportunities that are available in the market, the main threats that business is facing and may face in the future, the strengths that the business can rely on and any weaknesses that may effect the business performance.

Environmental factors

What external and internal environmental factors are there that need to be taken into account. This can include economic or sociological factors that impact on your performance.

Craft A Personal, Workable Marketing Plan:

Marketing is everything you do to make your product or service more visible, more desirable and more profitable. Your marketing plan will clearly define the big picture and provide focus and direction based on the 4 'P's of Marketing - product, price, place/distribution and promotion. Since 90% of small business owners do not have a plan, you'll have a leg up on your competition by crafting your personal, workable marketing plan to ensure that you reach your business goals.

Task 6

Report Writing

Introduction:

The Warner-Lambert Co. manufactures and markets pharmaceutical, consumer health care, and confectionery products, including such popular brands as Listerine antiseptic mouthwash, Chiclets gum, Halls lozenges, Certs mints, Rolaids antacids, and Schick razors.

The product of a long history of mergers and acquisitions, the Warner-Lambert name reflects the combined assets of two businesses: the William R. Warner Company, a pharmaceutical and cosmetic concern, and Lambert-Pharmacal, manufacturers of Listerine oral antiseptic, which merged in the 1950s. Thereafter, Warner-Lambert became a large multinational corporation under the leadership of Elmer Holmes Bobst.

Bobst arrived at William R. Warner & Company in 1945, already a veteran executive of the pharmaceutical industry and a multimillionaire. As president of Hoffmann-La Roche's U.S. office, he had proved instrumental in acquiring for the Swiss company a large share of the U.S. drug market. Many observers were surprised that Bobst accepted the position at Warner; he was then 61 years old, wealthy, and could have settled into a comfortable retirement.

Main core things regarding assignment:

Many Warner Lambert employees, who Warner Lambert refers to as colleagues, are parents and the Company felt that these parents would want to be aware of the alarming statistics and would want to learn what could be done to combat drug abuse trends

Warner Lambert developed and then provided to all U.S.-based colleagues a folder of resource and reference material to help individuals talk to children about the dangers of drugs.

Recognizing the difficulty of raising the issue of drug use with employees, and the issue of potential drug use by their children in particular, the Stop the Silence kit was sent directly to all U.S.-based colleagues at home, rather than in the workplace.

The BCG matrix is used for market share and market growth. understand the Boston Matrix you need to understand how market share and market growth interrelate.

Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms.

The higher your market share, the higher the proportion of the market you control.

The Boston Matrix assumes that if you enjoy a high market share you will be making money. (This assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage).The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you money?" The answer is, "not necessarily." This is where market growth comes into play. Market growth is used as a measure of a market's attractiveness.

Selling or servicing a product in a lower price it is the great to hold the market position. Which do you prefer when you fly: a cheap, no-frills airline, or a more expensive operator with fantastic service levels and maximum comfort? And would you ever consider going with a small company which focuses on just a few routes? The choice is up to you, of course. But the point we're making here is that when you come to book a flight, there are some very different options available. Why is this so? The answer is that each of these airlines has chosen a different way of achieving competitive advantage in a crowded marketplace. The no-frills operators have opted to cut costs to a minimum and pass their savings on to customers in lower prices. This helps them grab market share and ensure their planes are as full as possible, further driving down cost. The luxury airlines, on the other hand, focus their efforts on making their service as wonderful as possible, and the higher prices they can command as a result make up for their higher costs

The secret to business success is determined by your ability to powerfully communicate your business with laser precision and your ability to deliver a clearly-defined and consistent experience. In a nutshell... it's called branding, and, when done right, it ensures a thriving business with all the customers and profits you need. The secret is to establish a powerful brand identity that sings distinction. And establish that identity before you launch any marketing activities.

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