MARKETING ASSIGNMENT

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Aakif Saleem 70101609
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[Link] 70101199
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 Pfizer
Introduction:
Pfizer is an American multinational pharmaceutical and biotechnology
corporation headquartered at The Spiral in Manhattan, New York City. The company was
established in 1849 in New York by two German entrepreneurs, Charles Pfizer (1824–1906) and
his cousin Charles F. Erhart (1821–1891).

Pfizer develops and produces medicines and vaccines for immunology, oncology, cardiology,
endocrinology, and neurology. The company’s largest products by sales are the Pfizer–BioNTech
COVID-19 vaccine ($11 billion in 2023 revenues).

The company ranks 38th on the Fortune 500[4] and 39th on the Forbes Global 2000.

Vision:
Pfizer vision statement is to

“innovate to bring therapies to patients that significantly improve their lives.”

Its vision is to innovate every day to make the world a healthier place. It was Charles Pfizer’s
vision at the beginning and it holds true today.
Mission:
Pfizer mission statement is

“to become the world’s most valued company to patients, customers, colleagues, investors,
business partners, and the communities where we work and live.”

Objectives:
Pfizer’s purpose is to deliver breakthroughs that change patients’ lives. R&D is at the heart of
fulfilling Pfizer’s purpose as we work to translate advanced science and technologies into the
therapies that matter most. Today, we are at a unique moment in biomedical innovation.

Risk Management Policy:

This research considers four risk management tools that Pfizer, Inc. Conceivably could
incorporate in the firm’s risk management policy. Each of the risk management tools is not
necessarily appropriate for all forms of risk; however, each tool is appropriate for one or more
forms of risk faced by the firm. Risk categories considered for the application of the risk
management tools by Pfizer, Inc. Are (1) corporate, (2) economic, (3) currency, (4) political, and
(5) global business risks.

The Black-Scholes (637) Option Valuation Model assumes that logarithmically (log) normal
distribution characterize security returns. If the real underlying distribution differs significantly
from log normal, then the Black-Scholes (637) option valuations may exhibit a bias relative to
true values.

Five items of information are required to calculate the value of a call option. These items of
information are (one and two) the relationship between the market price and the exercise price
(two items of information expressed as a single relationship), (3) the time to maturity of the
option, (4) the relevant interest rate, and (5) the volatility of the price of the underlying stock
(Reilly 199).

Foreign exchange risk:

Pfizer operates globally. It’s exposed to foreign exchange risk in its commercial operations. It’s
also exposed to foreign exchange risks in investments in subsidiaries and their assets and
liabilities. Over 60% of the total revenue is from non-US markets. The foreign exchange affected
all of the company’s segments.

Geographic risk:

Since Pfizer operates globally and over 60% of its total revenues are from non-US markets, it’s
exposed to geographic risk. However, the widespread network reduces the geographic risk. Any
changes in the social, regulatory, and economic environment in one of the markets won’t affect
the business adversely.

Legal risk:

Pfizer is exposed to legal risks—like patent rights and prohibition rules. For patent rights, the
company experienced many legal issues with reference to its key drugs—including Lyrica,
Sutent, Celebrex, and Viagra. In October 2010, the company filed a patent-infringement action
with respect to Viagra. It filed the action in the U.S. District Court against Apotex Inc., Apotex
Corp., Mylan Pharmaceuticals Inc., Mylan Inc., and Actavis, Inc. These generic drug
manufacturers filed abbreviated new drug applications with the FDA seeking approval to market
their generic versions of Viagra. They assert the invalidity and non-infringement of the Viagra
method-of-use patent. The patent expires in 2020.

Crisis management:
Definition

• The turning point for better or worse in an acute disease or fever.

 • A paroxysmal attack of pain, distress, or disordered function.
• An emotionally significant event or radical change of status in a person’s life.

Management of crisis:
Managing a corporation’s image is important in crisis situations. In this current research, critical
analysis is used to analyze the communication strategies of Pfizer Incorporated when discussing
their drug Celebrex. Both Benoit (1995) and Marcus and Goodman (1991) communication
frameworks are used to determine if Pfizer communicated in a way that enhanced shareholder
value. When mapped onto Benoit’s framework, Pfizer used “denial”, “evasion of responsibility”,
“reducing the offensiveness of the act”, and “corrective action” strategies. If the company is
truly blameless, then denial is the best strategy. Very few companies make use of corrective
actions, and even fewer use mortification by apologizing for their role in the crisis. Marcus and
Goodman’s framework classified communications into two strategies, defensive and
accommodating. In their prior research, Marcus and Goodman found that when crises are
classified as a product recall or safety type, as opposed to a scandal or an accident, neither
accommodating nor defensive strategies appear better at enhancing shareholder value. Our
analysis finds that Pfizer utilized both accommodating and defensive strategies during the
Celebrex crisis. Our results show mixed stock price reaction to both types of communication
strategies. This study replicates prior research which examined Merck Pharmaceutical’s
communication strategies when the drug Vioxx was removed from the market, and provides
additional support for the Marcus and Goodman framework. Avenues for future research
include analysis of corporate crisis communications during times of scandal or accident. Marcus
and Goodman would predict accommodative strategies to be more beneficial during a scandal
and defensive strategies to be more beneficial during an accident.

Policies:
At Pfizer, public policy is part of the way we relate to the many people who have a stake in our
company and our pharmaceutical products: patients, physicians, insurers, employers, Pfizer
shareholders and employees, journalists, and policy makers. Engaging in public policy debates is
part of our responsibility, because effective public policies can help create an environment in
which innovative new prescription medicines are brought to market, and patients are able to
receive the medicines they [Link] invite you to browse through the Public Policy section of
this Web site to learn about our positions on important health care issues and find more in-
depth information designed for those interested in taking a closer look at the issues.

Access and Affordability:

Learn ab out what Pfizer is doing to improve patients’ access to high quality health care and
Pfizer’s medications.

Pricing and Value:

Find information about the value pharmaceuticals offer and why Pfizer believes it is critical to
maintain public policies that encourage investment in the development of new treatments and
cures.

Health Care Reform:

Find out what Pfizer is doing to help improve health care in the U.S.

Resources:

For your convenience, where possible, resources cited throughout the Pfizer public policy site
have been posted in this [Link] is committed to engaging in public policy debate to help
to continually improve the pharmaceutical industry and increase access to prescription
medicine for people around the world.

Pfizer Market Segmentation :

Reports have noted that the success of the company was mainly attributed to its effective
marketing efforts, which in fact, have been considered as one of the best in the business
industry. In addition, the safety records of Pfizer is also one of the best; thus, acquiring investors
and establishing trust was easy for the [Link] from human health, Pfizer is also
manufacturing products under its animal health product line. One of the market segments of
the company are the large cow-calf business owners. Using the herd-size market segmentation
approach, Pfizer primarily caters to large business owners and operators. While this market
segmentation has been effective for the company, other approaches could possibly maximize
the product distribution of the company. Thus, in this business analysis paper, the herd-size
market segmentation approach will be described and analyzed. Furthermore, based on previous
learning and business inputs, other viable market segmentation approaches that Pfizer may
apply will also be identified.

Target Markets:

 Heart Disease $85 Billion

 Diabetes $19.5 Billion
 Obesity $35 Billion
 Infectious Diseases $58.4 Billion
 Neurological Diseases $91 Billion
  Oncology $30 Billion

Strategies:
Established Products Business Unit:

Pfizer's Established Products Business Unit (EPBU) was created in 2008 to provide underserved
patients with affordable medicines characterized by pfizer's reputation for quality, safety, and
[Link] by David Simmons, President and General Manager, EPBU is a small, flexible unit
that leverages Pfizer's strengths to manage the established product portfolio.

Established products are medicines that have lost patent exclusivity or are close to losing their
exclusivity. Pfizer has over 380 established products, including many familiar brands such as
Norvasc, Zoloft, and Zithromax.

Pfizer's global sales of established products are more than $10 billion annually.

Established Products Business Unit Core Strategy:

Established products are traditionally a shrinking segment of business due to intense generic
competition brought on by the loss of exclusivity (LOE) of the products. Pfizer's Established
Products Business Unit is committed to stabilizing the current base business and transforming it
into growth, through strategies like product enhancements and reformulations; portfolio
expansion and licensing.

The global market for Established Products:

Overall, the global market for these products is big and growing. In 2006, the established
products market was $270B; within the next five years, it is expected to grow to over $500B.
(Source: Evaluate-Pharma)
Benefit to patients:

The off-patent marketplace worldwide too often suffers from quality and supply reliability
issues. With its broad established products portfolio and capabilities in low- cost manufacturing,
Pfizer is in an ideal position to supply high quality medicines at affordable prices.

Pfizer’s top-selling Established Products:

Pfizer is proud of its extensive line of established products, which includes many familiar brands
that have long served patients around the world. One such medicine, Solu-Medrol, recently
celebrated its 50th birthday. Medicines like these are the foundation on which Pfizer’s long-
standing reputation for quality and great care for patients was [Link]’s established products
range across a variety of therapeutic areas, including anti-infective, pain and inflammation,
cardiovascular disease, central nervous system, and women’s health.

Some of the top-selling Pfizer Established Products are:

 Accupril Accuretic treats high blood pressure and heart failure

 Arthrotec-treats signs and symptoms of osteoarthritis and rheumatoid arthritis
Cardura/Cardura XL treats high blood pressure
 Dalacin/Cleocin-treats bacterial infections
 Diflucan treats yeast infections
 Fragmin anticoagulant
 Medrol treats inflammation
 Neurontin treats epilepsy
 Norvasc treats high blood pressure and chest pain of angina
 Relpax treats migraine
 Xanax/Xanax XR treats anxiety
 Zithromax-treats bacterial infections
 Zoloft treats depression and anxiety

ANALYSIS AND PDCA CYCLE:

PDCA cycle:

Introduction.

PDCA (plan-do-check-act, sometimes seen as plan-do-check-adjust) is a repetitive four-stage

model for continuous improvement (CI) in business process management. The PDCA model is
also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–
study–act (PDSA).

The PDCA model for continuous improvement:

What Exactly is the Continuous Improvement Concept?

Continuous improvement, sometimes called continual improvement, is the ongoing

improvement of products, services, or processes through incremental or breakthrough
improvements. These efforts can seek “incremental” improvement over time or “breakthrough”
improvement all at once. Although the terms Continuous improvement and Continual
improvement are used interchangeably, continual improvement refers to improvement actions
taken at regular, frequent, repeated intervals. On the contrary, continuous improvement may
not necessarily occur in pre-planned intervals. Therefore, an organization that adopts a policy of
reviewing products, processes, or services at regular intervals to find improvement
opportunities is seeking Continual improvement. Whereas an organization that adopts a policy
to improve products, processes, or services as and when complaints or adverse events happen
is seeking continuous improvement. However, in either case, the improvement is implemented
without cessation of the concerned product, process, or services. Therefore, we will refer to
both terms as Continuous improvement in the present article for simplicity.

Best businesses utilize the Continuous improvement concept in quality management science to
keep their products and employment teams at their peak performance levels with respect to
quality, cooperation, performance, and engagement. The pharma and healthcare industries also
derive enormous benefits from adopting a continuous improvement model that seeks a gradual
increase in quality over time and often even achieves breakthrough levels of improvement
within shorter periods.

The business world utilizes several quality management models that drive continuous
improvement cycles through well-defined and time-bound goals. Dr. William Deming’s Plan-Do-
Check-Act (PDCA cycle) is one such continuous improvement model used extensively by quality
managers across the globe. The popularity of the PDCA model is high owing to its simplicity and
demonstrated history of achieving positive results.

In this article, we will discuss the PDCA model, an extended version of the PDCA model known
as the OPDCA model, and a few continuous improvement case studies in the life science
industry.

PDCA—the Plan-Do-Check-Act Model—involves identifying a problem in the organizational

setting and implementing a continuous improvement strategy that involves the four steps of
Plan-Do-Check-Act in a continuous cycle as follows:

Plan:

This involves devising an initial plan to improve the product, process, or service. It may include
collecting all data about the issue, followed by a strategy for testing hypotheses to determine
the root causes.
Do:

This means implementing a plan that has been proposed as a possible solution. This
implementation is a test of the proposed solution, and during this stage, the team measures the
results to gauge the effectiveness of the intervention.

Check:

This is about verifying the data before-and-after implementation of the Plan to compare the
performance of the improved process Vs. The old process. At this stage, the group or manager
decides whether the initial assessment and hypothesis about how to improve were in the right
direction.

Act:

This refers to planning and documenting future actions based on success or failure at the check
stage. So, if the tested plan works, it gets implemented throughout the organization, and if it
doesn’t work, it gets adjusted, and the continuous improvement cycle is re-entered.

Pfizer’s Continuous Improvement Achievements are:

Goal:

Reduce the end-to-end lead time to deliver Lipitor by 75% in two phases. In the first phase,
the end-to-end lead time was aimed to be reduced by 30% within a year, followed by the
next 45% in the second year.

Team Involved:

Manufacturing, Logistics, and Transportation Support Colleagues.

 Approach:

The team began their work in April 2007. Pfizer utilized the Value Stream Mapping concept
in Lean Philosophy to reduce the end-to-end lead time. Their initial step was mapping the
value stream of those processes by which Lipitor evolves from raw material to packaged
tablet; the team was able to identify the specific points at which bottlenecks, redundancies,
downtime, and other non-value–added problems impeded process effectiveness and
undermined process capability. Bottlenecks were found to be associated with poor process
capability or unreliable equipment. In this manner, Pfizer’s Lipitor team used the problem of
unmet patient needs as an opportunity to make more efficient processes.

Result: The team’s first goal was to reduce lead time by 30% by year’s end; they
achieved this milestone by December 2007. Next, the team worked in collaboration with
colleagues across several Pfizer sites to achieve another milestone by the end of 2008:
trimming end-to-end Lipitor lead-time by 60%.

Conclusion:

In the life science industry, continuous improvement cycles provide a significant benefit to
the patients, as these improvements are directly associated with safety, efficacy, quality, and
unmet patient need. Developing a problem-solving attitude while dealing with challenges in
product development or services creates opportunities for increased efficiency.

SWOT Analysis of Pfizer:

Strengths

Leading the market:

When it comes to the position of Pfizer in the market amongst its competitors, it has gained
a remarkable place there. Pfizer is in the top 50 public companies globally and one of the top
three pharmaceutical companies to date.

Work during the pandemic:

The way Pfizer manufactured a vaccine during the rise of the COVID cases was remarkable.
It is said to be a record speed with which the vaccine got FDA approval and how it was mass
manufactured and administered. Their work was simply unparalleled, especially in the recent
pandemic years.

Source of existence:
 Pfizer started as a one-stop shop around 170 years ago. Now it has turned into this big
multinational company with a century of knowledge and experience, which is the massive
strength that helped Pfizer establish itself in the business world.

Brand value:

The company manufactures several well-known medicines and vaccines for the worldwide
market. These medicines are used by everyone regularly on a day-to-day basis. It includes
Viagra, EpiPen, Xanax, Advil, and more.

Work done through research and the development caused:

The company created a record by investing about 10 billion dollars annually to research and
develop medicines and vaccines for different fields. Their investment is one of the leading ones
done in this

Weaknesses

Marketing mismanagement of drugs:

The brand value of Pfizer might be facing a massive loss because of the allegations that have
been brought against it concerning the illegal marketing of drugs.

Dependence on the US market:

To increase a Pharma company’s success rate, they should be appropriately accessible to many
countries worldwide, but Pfizer is heavily dependent on the US market, which is not the best
strategy for the company.

Law issues:

Pfizer has been dealing with several legal problems. It can highly hamper the business of the
company. Having problems with the law can never be a good thing.

Failure in mergers and acquisitions:

Even though there were some successes in merging the company with some good names, it still
wasn’t enough. There are failures on the company’s part to collaborate with other companies to
consider the previous mergers a complete success.

Opportunities

New acquisitions and mergers:

With upcoming mergers and acquisitions, Pfizer is getting the opportunity to reach more people
and do business on a global level.
Pfizer has not reached the global market yet:

As Pfizer is heavily dependent on the US market, it gives it more opportunities to do more

business in other countries, especially developing ones.

Vaccine manufacturing for COVID:

The pandemic gave Pfizer a fair opportunity to manufacture a new vaccine, which had a good
run and increased its brand name in the global market.

Threats

Recent bouts of Recession:

Due to the pandemic, the world is suffering a recession state. Every business, big or small, and
almost every industry faces financial threats because of pandemic-caused recession. Thus, it can
be a significant threat to the company’s growth.

Resignation of higher authorities:

Customers may consider it a red flag when the leading management heads leave their posts at
a highly successful company like Pfizer. It can put a dent in their reputation and name.

Failure of new products:

Pfizer has been facing some issues when it comes to the manufacturing of new products. It
might not be a big failure or something frequent, but a highly reputed company like Pfizer
cannot afford to make such mistakes as it can threaten its business’s future.

Competition is Challenging:

Even if Pfizer is one of the top companies in the world, it still cannot be denied that the
competition Pfizer faces is anything less than any other Pharma company.