Pfizer Animal Health Products
...and poultry industry. Finally, with the introduction of the North American Free Trade Agreement, a flood of beef has been imported into the United States. This further worsened the situation of overcapacity which has contributed to the depressed beef prices. These along with several other changes have cause management to reevaluate is current marketing approach. SWOT Analysis Strengths: First, Pfizer, a leading research based pharmaceutical company, derives most of its strengths from its unparalleled research and development initiatives. Second, Pfizer, through its extensive network of field representatives, has established a foothold among ranchers nationwide. This network allows Pfizer the advantage of covering broad geographical areas. Third, through the combination of superior science, high quality control and production techniques, Pfizer has positioned itself as a premier pharmaceutical company. Finally, with over 150 years in the industry, Pfizer, with a proven track record as an industry leader, has developed and sustained a reputation for quality and innovation that is widely known among consumers, health professionals, and other industries. Weaknesses: In Pfizer’s cow and cattle segment, the following represent our identifiable weaknesses: First, Pfizer is currently implementing marketing strategies that are not adaptable to industry changes. Second, current marketing techniques fail to allow Pfizer to properly identify and respond to the industrial needs. Finally, current marketing approaches are reactive (i.e. Pfizer is only flagged to problems or signals when they occur). Opportunities: We recognized the following areas as potential opportunities for Pfizer: First, ranchers as a whole are interested in obtaining more information concerning how to better manage their operations. In order to ascertain this information, ranchers read trade publications, attend seminars, and talk to their peers. Therefore, we see an opportunity, through the utilization of these avenues, to promote awareness of health management. Second, develop new low cost alternative products to entice ranchers concerned at minimizing their operational costs. Third, utilize global marketing strength to assist the beef industry in its marketing dilemma. Finally, industry trends and regulations may provide new and/or increase business opportunities. The current industry trends and regulations have provided a ripe environment for Pfizer to intervene. This may take the form of assistance aimed directly at ranchers, industry, distributors, and suppliers. Threats: First, a flood of imports from NAFTA regulations contribute to overcapacity and depressed beef product prices. Second, the decline in demand for beef products continues to plaque the industry resulting in an on-going erosion of Pfizer’s consumers. Third, with a pessimistic outlook on the future of the beef industry, Pfizer may be unable to convince skeptical ranchers, who are already uncertain about the benefits of vaccinations, to incur the cost of using their products. Finally, the beef industry may lack the willingness and/or expertise to make the much needed changes to effectively compete with the recent insurgence from the poultry and pork industries. Problem Analysis In order to identify the central problem and make the necessary recommendations, the asked ourselves why Pfizer may potentially lose significant revenues. To this question, we determined that Pfizer has not been proactive in dealing with changes in the industry. Again, we asked ourselves why. Evidence from the case study implies that Pfizer has relied on historical marketing concepts. From these questions, we were able to ascertain the following problem statement: Does Pfizer need to develop a new marketing approach to maintain its position in the beef industry? Alternatives Overview of Alternatives 1. Restructure segmentation based on type of operation There are two types of operations which include Seed-stock and Commercial. Seed-stock operators focus on breeding high-quality bulls for use by commercial producers. The bulls are measured by the quality of their offspring. Desirable characteristics include low birth weight, rapid growth, high carcass yield, and grading of choice or better-quality meat. Commercial producers focus on raising calves to sell to feedlots. The feedlots fatten the calves and sell them to the packing houses. In some cases, commercial producers retain ownership of the calves. 2. Develop a quality assurance program for ranchers Value-Added Marketing and Branded beef, Marketing strategies designed to increase the value and quality customers receive from beef purchases. Branded beef model. The development of branded beef would require a tracking system from birth to beef in the supply chain. The tracking would allow standardized health, quality, and management protocols as well as improved feedback through the entire production model. Branded beef production would move the industry from a cost-based model to a value-added model. This change would also require the producers to be more closely linked to the feedlot improve the quality of the beef. Better coordination along the supply chain would ensure an increased flow of information from the consumer to the producer. Alliances between the cow/calf producers and feedlots would allow ranchers to better track the success of their calves (based on health and weight gain). Those data could allow the ranchers to further Improve the genetics of their herds. As part of these trends, some degree of integration or vertical coordination would occur in the beef industry. Most ranchers were familiar with the concepts of value-added marketing and the branded beef model. 3. Develop marketing campaign directed at altering consumer opinion of beef products. The market share of beef products had declined partly because consumers were being bombarded with new products from pork and poultry industry. By developing an aggressive marketing campaign with a slogan such “We don’t make beef, but we make it taste better”, ranchers might regain part of their declined market share. Criteria In order to effectively analyze the alternatives, the following criteria were chosen: Corporate vision, To become the world’s most valued company to customers, investors, business partners, communities, and to dedicate itself to humanity’s quest for longer, healthier, happier lives through innovation. Profitability Maximize revenues. Market growth. Increase market share through penetration of its current market and expansion into new market. Analysis of Alternatives Alternative 1: Restructure segmentation based on type of operation 1.1 Corporate Vision. Pfizer should restructure its market segmentation based on the type of operation instead of herd-size. In this scenario, there will only be two market segmentations for Pfizer to focus on. This would allow Pfizer to be more in tune with the ranchers’ needs. Also, this allows Pfizer the opportunity to use their strengths in research and development to develop more innovative products for the ranchers. 1.2 Profitability. Through the utilizatio...