Analysis of Marketing Concepts Using S-26 GOLD BABY FORMULA 900g - Case Study Example

Analysis of marketing concepts using S-26 GOLD BABY FORMULA 900g  Introduction S-26 GOLD BABY FORMULA 900g is a product of Wyeth. Wyeth is a world wide company which carries out research and manufactures pharmaceutical products. It is involved in the development and marketing of pharmaceutical products, vaccines in addition to biotechnological products. The products of Wyeth Company are for both human beings and animals. Its product line includes prescription drugs and other health products which includes over the counter drugs in addition to nutritional products. The products of Wyeth are found in over 140 countries. The manufacturing facilities of Wyeth are found in five continents (Davids and Newcomb, 2006). Most of the Wyeth’s businesses were sold in 1990s and it only retained those dealing with pharmaceutical products and medicine. The initial name of Wyeth was American Home Products (AHP) which was incorporated in 1926. The company changed its name from AHP to Wyeth in 2002. In spite the company having popular products, none of its products bears its name. AHP was a financially successful company which operated anonymously (Allred, et al, 2007). Its success is attributed to management team which is regarded to be competent in addition to diversification of products and closely guarded expenditures with exception of advertising expenditures (Simkin, 2002). AHP has been able to diversify its products through acquisition of various companies. In most cases the company either improved innovative product lines produced by its competitors or bought the competitor all together to remain competitive in the volatile market (Davids and Newcomb, 2006). The company also carry out aggressive advertisement and at the same time maintains its reputation in the medical community. Some merger negotiations in 1990s between Wyeth and other competing companies failed. Of significant were Wyeth’s moves to merger with SmithKline Beecham, Monsanto and Warner Lambert which failed. Wyeth confronted several legal problems during its restructuring process. For instance two of Wyeth’s weight reducing drugs was implicated to be behind heart valve damage to its users. Law suit resulting from this finding cost the company above$3.75 billions in settlement. In spite the problems, Wyeth’s franchise pharmaceutical business remained strong as it entered 21st century. Wyeth’s products are used for treatment of wide range of ailments. The products include vaccines, biotechnological products and traditional pharmaceuticals (Grover & Vriens, 2003). Wyeth continues to invest much in the research and development in antibiotic resistance and infectious areas (McDonald, 1992). The pharmaceutical products of Wyeth have a prolonged patent lives. The company has a great power in the consumer health market and S-26 GOLD BABY FORMULA 900g is one of its products in this line. S-26 GOLD BABY FORMULA 900g is a nutritional product for infants. S-26 GOLD BABY FORMULA 900g targets various segments of children. S-26 GOLD ALPHA PRO targets newly born babies to six month babies. This formulation is blended with advanced protein and beta-globulin to provide babies with whole proteins (Grover & Vriens, 2003). The formulation also has omega 3 which supports the development of baby’s brain and the eye. S-26 GOLD ALPHA PRO in addition has nucleotides which support the immunity of the baby. The formulation provides the infants with a wide range of vitamins and minerals essential for growth. S-26 GOLD PROGRESS targets babies aged above six months. It provides babies with unique nutrient combinations to address the nutritional requirements of these babies who are growing and developing rapidly. It contains omega 3 and nucleotides which serve the same purpose as those found in S-26 GOLD ALPHA PRO (Allred, et al, 2007). In addition it has iron which supports the growth of the baby. It also has various vitamins and minerals which support the development and growth of the baby. S-26 GOLD NEWBORN also targets newly born babies to six months babies. It has all nutritional requirements to support growth and development (Davids and Newcomb, 2006). It contains alphalactalbumin, omega 3, nucleotides, lutein, vitamins and minerals. S-26 GOLD TODDLER targets children aged 12 months and above. It provides the child with omega 3, lutein, vitamin A, iron and vitamin D (Allred, et al, 2007). These nutrients support development of the child’s brain and eyes, growth, development of strong bones and formation of red blood cells involved in transport of oxygen. The SWOT Matrix Product: S-26 GOLD BABY FORMULA 900g Strengths Highly diverse product lines Brand equity Quality products Innovative new products Prolonged patent rights Closely guarded expenditure Competent management Strong product brands Weaknesses Diet drug liability Side effects of some of its products Opportunities High growth market especially in Japan Increased market growth for formulation products Irowing world population Threats Patent expiry Pipeline formulation risks Competition from large pharmaceutical companies such as Aventis, Pfizer, Merck, Johnson &Johnson, Bristol Meyers Squibb, Abbot Laboratories, GlaxoSmithKline, Eli Lilly, Schering Plough, AstraZeneca and Hoffmann La Roche.   The 4P’s Analysis The 4Ps is a marketing mix which is used to translate marketing plans into practice. This is driven by the competitive market environment for products of an organization (Baker, 2003). The 4Ps marketing mix is essential for the development of long term strategies as well as short term programs. The marketing mix allows a firm to handle its marketing activities easily, independently and to delegate marketing duties to a specialist. The 4Ps marketing mix constitutes four elements which include product, price, promotion and place. a. Product The product in our discussion is S-26 GOLD BABY FORMULA 900g. This product is produced to help mothers who are unable to breast feed their babies to provide them with nutritious formulation. S-26 GOLD BABY FORMULA 900g satisfies the nutritional requirements of newly born babies to those aged over 12 months. To meet the different requirements of the infants S-26 GOLD BABY FORMULA 900g comes in different formulations which targets different age groups. These include S-26 GOLD ALPHA PRO and S-26 GOLD NEWBORN targets newborn babies up to those aged six months, S-26 GOLD PROGRESS targets babies aged above six months while S-26 GOLD TODDLER targets children aged above twelve months (Allred, et al, 2007). The ingredients of these formulations are essential for the growth and development of the babies. In comparison with standard infant formulations, S-26 GOLD BABY FORMULA 900g has reduced beta lacto globulin which ensures that there is a balance in whole proteins. The S-26 GOLD BABY FORMULA 900g is available in 900g and single serve stick packs. The branding of Wyeth products do not have the name of the manufacturer hence the company remains anonymous in spite the fact that its products are famous (Grover & Vriens, 2003). b. Place The S-26 GOLD BABY FORMULA 900g formulations are found in groceries, retail outlets and pharmacies. Consumers can also order the formulations via online means and the products shipped to their destination (Baker, 2003). Thus consumers can buy the formulations directly from these places in addition via online means. The company use sales force to access the right distribution channels. It also makes online submissions to access its market. c. Price The prices of S-26 GOLD BABY FORMULA 900g formulations are relatively cheap and the shipping expenses are fixed in spite the quantity of product shipped hence customers save a lot when shipping large quantities of the formulation. This has enabled the company to increase its sales volumes (Baker, 2003). Given the ingredients contained in these formulations customers get valuable products for their infants (Isenberg, 1987). d. Promotion Wyeth spends enormous amount of money on advertisement to promote its products (Allred, et al, 2007). The company is known among advertising agencies as a demanding and non compromising client (English, 2006). In spite paying limited commission rates it demands best price for advertising on television during prime time. It also demands that the agencies ensure effective promotion of its products within strict budgets. The company uses agencies to promote its products in addition to promoting them through press, TV, radio and via internet. The advertisements of S-26 GOLD BABY FORMULA 900g formulations run throughout the year since children are born throughout the year (Baker, 2003). Conclusion S-26 GOLD BABY FORMULA 900g formulations are products of Wyeth Company. Wyeth is a world wide company which carries out research and manufactures pharmaceutical products. It is involved in the development and marketing of pharmaceutical products, vaccines in addition to biotechnological products. The products of Wyeth Company are for both human beings and animals. Its product line includes prescription drugs and other health products which includes over the counter drugs in addition to nutritional products. The company has a great power in the consumer health market and S-26 GOLD BABY FORMULA 900g is one of its products in this line. The S-26 GOLD BABY FORMULA 900g formulations have various strengths which sets them apart from competing products. These include diverse product lines, brand equity, high quality products, innovative new products, prolonged patent rights, closely guarded expenditure, strong product brands and competent management. In spite these strengths the product suffers from weaknesses such as diet drug liability and side effects of some of these formulations. The high growth market especially in Japan, and the growing world population presents opportunity for S-26 GOLD BABY FORMULA 900g formulations. The products are threatened by looming patent expiry, pipeline formulation risks and competition from formulations from large pharmaceutical companies.    References Allred, A., Addams, H.L., and Chakraborty, G. 2007. Is informal planning the key to success of the inc. 500? Journal of Small Business Strategy, 18(1): 95-104. Baker, M. 2003. The Marketing Book, 5th Ed. London: Butterworth-Heinemann Publishers. Davids, M., and Newcomb, K. 2006. Planning for marketing success: Turning the “Wheel”. Debt 3, 21(4): 22-25. English, J. 2006. How to Organise & Operate a Small Business in Australia: How to Turn Ideas Into Success, 10th Ed. Sydney: Allen & Unwin Publishers. Grover, R. & Vriens, M. 2003. The Handbook of Marketing Research: Uses, Misuses, and Future Advances. New York: Sage Publishers. Isenberg, D.J. 1987. The tactics of strategic opportunism. Harvard Business Review, 65(2): 92-97. McDonald, M.H.B. 1992. Ten barriers to marketing planning. The journal of Business and Industrial Marketing, 7(1): 5-18. Simkin, L. 2002. Barriers impeding effective implementation of marketing plans - a training agenda. The Journal of Business and Industrial Marketing, 17(1): 8-22. Read More