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Brand Management: Paxil - Case Study Example

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Brand Management: Paxil

The paper tells that the prescription drug Paxil is used to treat a wide variety of depression symptoms. In the late 1990s through 2007, Paxil was one of the most respected anti-depressant medications on the market, providing GlaxoWellcome considerable profitability. However, over time, this brand has lost much of its equity with the loss of its patent, allowing for generic drug production as a replacement from other pharmaceutical companies. Further, Paxil has experienced considerable negative publicity, thus impacting the marketing effectiveness of this particular drug. Paxil had relied on television and print advertising, historically, in order to gain brand recognition and some semblance of brand loyalty with diverse consumer markets. The brand even relied on promotional materials, such as T-shirts, to assist in spreading the brand’s name and overall purpose. In 1998, the Food and Drug Administration delivered a warning letter to GlaxoWellcome about the inappropriate distribution of T-shirts at a children’s health forum in Florida, believing it was promoting an unethical and unapproved use of the drug by expressing its merits to children (Mundy 2008). Thus, Paxil relied on an extensive and rather expensive integrated marketing campaign in order to gain consumer following and to get patients to inquire about the drug at their health clinics to assist in reducing depression symptoms. Up until 2007, these marketing efforts had been a profit success and built considerable brand equity that maintained the ability for extensions of the Paxil name where appropriate. The Current State of Paxil In 2010, GlaxoSmithKline, was forced to pay $558,000 to Montana as part of a lawsuit settlement that managed to prove that the drug manufacturer was not sterilizing all batches of this medication (Johnson 2011). Further, in this same settlement, it was proven in a court of law that the dosages described on the label were different than what was actually part of certain batches of Paxil (Johnson). The media press releases about this settlement were widely available in local newspapers and on the Internet, thus reducing some of the drug’s reputation at the manufacturing level. Another recent study identified that Paxil maintains the ability to significantly raise blood sugar and those it was labeled a concern for diabetics that were using the drug to maintain their depression symptoms (Reinberg 2011). Further, in 2010, the state of Connecticut received a settlement of $1.7 million due to another situation where GlaxoSmithKline knowingly produced and sold defective and/or tainted Paxil batches. In total, including settlements paid to Connecticut, Paxil was forced to pay a whopping $750 million in settlements across the United States and abroad (Reinberg). This not only reduced the marketing equity of Paxil, but also managed to discredit GlaxoSmithKline, thus creating a situation where the brand was beginning to lose its trust as a reliable drug with a reliable manufacturer. To make matters worse for the brand, the Rottenstein Law Group launched a website devoted solely to informing consumers about Paxil in order to spread the word about the dangers the drug poses in a variety of different ways (PR Newswire 2011). This website allowed for posting on blogs and on sites such as Twitter and Facebook, thus exposing the drug to even further negative publicity and a reduction of its brand equity. This is increasingly important to the manufacturer due to the rise of diverse consumer reliance on social networking and blogospheres for their information sources. Sites such as MySpace, Twitter, YouTube and others are growing in popularity across the world and have moved into the mainstream for many demographics domestic and ...Show more

Summary

The study will attempt to address the question: What can Paxil Do? The dangers that Paxil imposes must be countered with corporate social responsibility in order to find success and revitalize its brand reputation in key domestic and international markets…
Author : madisonlehner
Brand Management: Paxil essay example
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