To what extent is the marketing

strategy adopted by AstraZeneca likely to achieve their marketing

objectives?

1. Company Background:Use newspapers & the internet to research some key facts about your company.

6. Marketing Plan:Use chapter 10 to help you research & present a marketing plan to implement your company’s marketing strategy.

2. Corporate Objectives:Use chapter 1 to help research & present the corporate objectives of your company.

3. Marketing Objectives:Use chapter 7 to help research & present the marketing objectives that will help fulfil the corporate objectives of your company.

4. Market Analysis:Use chapter 8 to help you research & present the quantitative and qualitative data that leads you to draw up the marketing strategy and marketing plan for your company.

5. Marketing Strategy:Use chapter 9 to help you research & present a marketing strategy that will help your company achieve its marketing objectives.

7. Conclusion:• Make a decision• Justify it using the ‘most

significant’ pieces of evidence that you have researched

• Qualify your decision with reference to the key constraints that you have researched.

1. (Company Backgound)• CEO – Pascal Soriot• Pre-tax profits at AstraZeneca fell 36pc to $1.3bn in the first quarter of 2013• Acquisition of Omthera May 2013 for $323m + $120m bonus for achieving earning targets.• $12.70 per share an 88% premium.• Omthera researching cardiovascular solutions (Ansoff - Product Development) e.g.

Epanova completed clinical trials (patented). $63m R&D cash pile. Shares rose 98% to $13.39 (up a further 69 cents from purchase price).

• Cardiovascular market: Product Development e.g. Crestor combined with Epanova• Crestor losing US patent in 3 years (2016), already lost protection in Brazil, Canada &

Australia. • 5 year Corporate Aim ‘Reverse the group’s financial decline’

(Revenues & Profits have fallen for 5 consecutive quarters)• Solutions: Cut workforce

Other acquisitions: Cardiovascular market – Alphacore PharmaCancer market – BIND TherapeuticsMolecular market – Moderna Therapeutics

2. Corporate Objectives(Chapter 1 Key terms that could be used: Mission Statement, Aims, Long-Term, Co-ordination, Direction)

CORPORATE OBJECTIVE

5 year Corporate Aim:

“Reverse the group’s financial decline”

EVIDENCE (based on research)

“Revenues & Profits have fallen for 5 consecutive quarters”

“Pre-tax profits at AstraZeneca fell 36pc to $1.3bn in the first quarter of 2013”

3. Marketing Objectives(Chapter 7 Key terms that could be used: SMART, Sales Volume, Sales Value/Revenue, Market Share, Market Position, Segment, Innovation, Product Range, Brand Loyalty.

Marketing Objectives for ‘Epanova’:• To establish ‘Epanova’ as market leader by 2015

• To be able to set and maintain a price 5% above competitors by 2014

• To achieve a 20% increase in global sales for each of the next 3 years

What are the key external influences on these objectives?1. Suppliers being able to achieve output levels demanded by the global targets.2. The rise in obesity & global triglyceride levels continuing as predicted.

What are the key internal influences on these objectives?1. Functional managers clearly understanding their relationship with corporate

objectives.2. Staff globally fully understanding the properties of ‘Epanova’ to be able to sell

it effectively across a range of cultures.

4. Market Analysis(Chapter 8 key terms that could be used: Quantitative – scientific decision making, sales forecasting, test marketing, moving averages, extrapolation, seasonality, cyclical, random, correlation (positive/negative, strong/weak, causal link); Qualitative – ‘Delphi’ technique, brainstorming, hunch.

Quantitative Research:We invest over $4 billion each year in R&D. A significant portion of this investment is in key capabilities to ensure we have the skills, technology and tools to deliver success throughout the medicines life-cycle:1. Predictive Science 2. Personalised Healthcare3. Clinical Trial Design & Interpretation 4. Payer and RWE (Real World Evidence)

Qualitative Research:“Payers are responsible for making decisions & influencing the decisions to list and pay for drugs. To make sure that we meet the needs of this customer, we continuously incorporate payer perspectives from early on and at every stage of the product lifecycle to achieve and maintain patient access to our medicines.”

5. Marketing Strategy(Chapter 9 key terms that could be used: Porter – Mass Market (Cost Leadership v. Differentiation), Niche Market (Cost Focus v. Differentiation Focus); Ansoff – Existing v. New Products or Markets (Market Penetration, Product Development, Market Development, Diversification), Risk.

STRATEGY ANALYSIS POINT1.

2.

3.

EVIDENCE (based on your research)

However,

6. Marketing Plan(Chapter 10 key terms that could be used: SWOT, Marketing Objectives, Marketing Strategy, Marketing Budget, Marketing Mix (short-term tactics)

MARKETING MIXProduct:

Price:Price Skimming

Place:

Promotion:

BUDGET

Method:

Factors influencing the size of the budget:

7. Conclusion

Decision:On balance the evidence suggests that although there are risks, it is likely that the strategy will…

Justification:The most significant piece of evidence for this decision is….

Secondly, …

Qualification:However, this decision will be constrained by…

because…

Sources of Information