Business Case Studies & Business Publications

Glaxo Italia, S.p.A.: The Zinnat Marketi...

Bruner, Robert F.

Case

Glaxo Italia, S.p.A.: The Zinnat Marketing Decision

Bruner, Robert F.

F-1014 | Published February 18, 1993 | 21 pages Case

Collection: Darden School of Business

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In September 1990, the financial controller of this Italian subsidiary of a large pharmaceutical company must analyze the implications of two different strategies for introducing a new product into the Italian market: co-marketing distribution, in which Glaxo would permit another company to market the same product but under a different brand name; and direct sales, under which Glaxo's own sales force would be the sole channel of distribution. The tasks for the student are to scrutinize and correct financial forecasts contained in the case and then value the alternative cash flow streams. The purpose of the case is to exercise students' forecasting and valuation skills and to illustrate the application of discounted cash flow analysis to the choice of marketing policies.