Pfizer Strategy
Essay Preview: Pfizer Strategy
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Porter’s generic strategiesMoving on to the firm’s strategy in this sector, we have used the porter’s generic strategies theory and the Ansoff Matrix in order to define what strategy is Pfizer following. Starting with Porter’s generic strategies matrix, we can say that Pfizer’s strategy with the vitamins sector is clearly a differentiation strategy as it wants to be seen as the number 1 selling brand of multivitamins in the world regardless its price. Therefore, its differentiation strategy is focused in brand awareness basically through distribution channels and advertising. Nowadays, you can buy Centrum in physical stores and online. As Maria has mentioned before, this market is very fragmented so companies have to differentiate in this sense as they all offer vitamins and it’s difficult to vary the product since there isn’t much room for innovation. In the case of Centrum, it provides a range of scientifically advanced multivitamins for adults and children. They have the Centrum Silver line (for men and women above 50), Centrum classic line, Speciality line (Omega3, Prenatal, Energy and Heart) and The Kids section. They are all focused on being easy to take having recently launched Centrum Multigummies. Moreover, their prices are slightly over the average market price. For instance, the Multivitamin for women from Nature Made, One a Day and Nature’s Bounty Multi-Day Women’s tablets cost less than the Centrum Silver Women multivitamin. As you can see on the screen, the price per each unit is higher in Centrum unless Nature Way Women’s Multivitamin that costs slightly more.
Ansoff matrixIn this analysis, we can see how Pfizer has focused mainly on Market Penetration and Product Development within its consumer healthcare business all over the world. As Pfizer sought to increase its market share in its existing markets (market penetration) in the US and Europe, it acquired 2 big health care companies. From one side, Alacer Corp, the number 1 US Vitamin C Brand and from the other side, Ferrosan Consumer Health’s Business, present primarily in Europe. Finally, they recently acquired Treely products from Sirio Pharma, one of the top healthcare brands in China’s retail channel. An example of a product development strategy can be all new products that are launched by Pfizer and are commercialized in their current markets such as Centrum VitaMints or Caltrate. Moreover, thanks to the agreement with Tris Pharma to commercialize Robitussin (a Cough Syrup) and to the acquisition of Allergan (a botox maker company), they were able to enter to develop new products in the healthcare industry.