Topic > Glaxo Welco Case Study - 644

INTRODUCTION Take on the role of marketing manager for the multinational pharmaceutical manufacturer Glaxo-Welcom. Your company faces pressure to provide drugs for free. Evaluate the economic risks to sales of your pharmaceutical products in Colombia over the next five years and discuss how this pressure and risks could affect the prices of your products in that country. Pharmaceutical companies spend large amounts of dollars on research and development of new drugs for the public. Ultimately, especially for US pharmaceutical manufacturers, the target market is the United States due to the possibility of high profits that are possible due to the stringent requirements of US patents. Furthermore, there is no price regulation in the United States that allows for a premium sales market (Kanavos & Seeley, 2013). To profit from these benefits, companies must deal with the rules, requirements and regulations of the Federal Drug Administration, but if they approve them the market is open for virtually unlimited revenue if the drug does what it claims. Pharmaceutical companies are typically multinational operations located in specifically targeting countries around the world (Mahmud & Parkhurst, 2007). Many have grown to understand the entire product lifecycle to efficiently maximize profit. Ultimately, to ensure the transition to a successful product in the US market, organizations have used the technique of gifting the product for a specific region and time period in order to strengthen brand recognition. In Mexico, Viagra was prescribed virtually free for many years for the same reason, even though consumers paid exorbitant prices for the drug in the United States. The case of Glaxo-Welcom and its new drug in Colombia will be tested in the same way. Furthermore, by giving… half the paper… they received so much attention that they appeared on network television and eventually pressured the company to offer them the drug. If this type of case were to happen to Glaxo-Welcom in Columbia, and they failed to provide the drug for free, it could have serious repercussions over the next five years on pricing, market entry, and positive brand image. CONCLUSION Overall, Glaxo-Welcom should definitely provide the drug free of charge to Columbia. This will give them positive brand recognition for the region and strengthen their name in the market in the long term. Furthermore, they will become established with the drug when the inevitable move to commercialization in the United States occurs. Finally, Glaxo-Welcom can set the price of the drug to a higher index to recover the profits lost during the period in which the drug was offered free of charge to the emerging nation..