Original Article Glaxo's Price Strategy
Based on Value
Zantac is the most famous product of Glaxo. Before Zantac came, the market was dominated by SmithKline's Tagamet. As Glaxo launched the market, SmithKline lower the price as much 
as 20%. However, Paul Girolami, the president of Glaxo decided to put Zantac in high price point because it is much better than Tagamet in many ways. When Zantac came to the market, the price of Zantac was 56% more expensive than Tagamet.
as 20%. However, Paul Girolami, the president of Glaxo decided to put Zantac in high price point because it is much better than Tagamet in many ways. When Zantac came to the market, the price of Zantac was 56% more expensive than Tagamet.In addition to this, they set the marketing strategy with Roche, marketing partner firm in USA, to notify its excellence. As a result of these effort, the benefit of Zantac was broadly notified. Especially the doctor who prescribed the Zantac had seen that the patients who take the Zantac didn't feel pain anymore. Moreover, the patients doesn't need to take any more stomach operation. Therefore, doctors could recommend the Zantac with confidence.
This strategy was not the option unless they have strong confidence about their product's excellence and marketing capability. However, Glaxo proceeded what they believed and the consequences was proved as a great success.
This strategy was not the option unless they have strong confidence about their product's excellence and marketing capability. However, Glaxo proceeded what they believed and the consequences was proved as a great success. Zantac's case could be the wonderful model of value based price strategy.
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