Acquired Immune Deficiency Syndrome (AIDS) was labeled a disease in 1981 by the Centers for Disease Control and Prevention and has since then become a major worldwide epidemic. AIDS is a disease, which is the most advanced stage of infection caused by Human Immunodeficiency Virus (HIV). This virus attacks the body’s immune system and damages its ability to fight off infections and diseases (Kerin, 2015).
Burroughs Wellcome is a subsidy of Wellcome PLC, a public limited company whose center of operations is in London, United Kingdom. Wellcome PLC primary business is human healthcare products such as Zovirax a drug used in the treatment of herpes, Actified and Sudafed both a cough and cold over-the-counter preparations and Retrovir …show more content…
For users who had a negative reaction to AZT used DDI, a competitor’s antiviral drug that is used to slow the reproduction and growth of the HIV virus.
That same year of 1987, there was a count of 27,016 AIDS cases in condensed metropolitan cities in the United States. Retrovir’s initial go-to-market price was $188 per hundred 100-milligram capsules, a Medicaid Program partially financed this cost for consumers. However, as the number of confirmed HIV and AIDS cases grew, in response to the increasing cases and fatality rates, Burroughs Wellcome decreased their selling price by 20 percent in Q4 of 1987, yet again by a further 20 percent in …show more content…
After the second price reduction, the new price to users was $150 per 100-milligram capsules with the recommended dosage of 500 milligrams per day, is a total cost of $750 per day for treatment.
The challenges that Burroughs Wellcome face is that users are complaining that the market price of Retrovir is too high, that it is significantly higher than other highly volatile diseases such as cancer after the disclosure of the direct cost of manufacturing and marketing was 30 to 50 cents per capsule. Wellcome PLC needs to determine how to continue funding for its research and development initiatives, its corporate social responsibility owed to society through meeting the demand and satisfaction of this drug to its users.
This case study will analyze whether which of the proposed pricing and marketing efforts that will yield the best result to the problem the company wants to solve. The company’s framing for growth will be done through a SWOT analysis, the target audience, and the marketing