Strategic Marketing And Marketing Strategy -Myassignmenthelp.Com

Question: Discuss About The Strategic Marketing And Marketing Strategy? Answer: Introduction Globalisation and competition has increased tremendously with advancement in internet technologies. Rise in pollution and awareness regarding environmental concerns has led corporations raise concerns regarding sustainable practices for their organisations. Marketing is core functionality of businesses that attracts customers and generates revenues(Kotler P. a., 2010). Revenues allows businesses to function profitability and cater to their shareholders. The scope of the current report discuses resources, environmental practices of CSL Ltd in Australia. Products, services, suppliers and customers of the Company with its pricing, promotions, distribution strategies and so on. Marketing includes a varied range activities with actual analysis product, price, method of distribution for the products of the Company. Marketing encompasses a varied range of services, which in case modulated can generate immense impact on the Company(Varadarajan, 2010). Marketing makes use of several technique s including 4P analysis for devising a marketing mix best suited to enhance sustainability for marketing efforts. There are several pharmaceutical companies in Australia including Australian Pharmaceutical Industries, Alphapharm, Sigma Pharmaceuticals, Prima Biomed, Solagran, Chemeq, Biota Holdings and other constitute primary competitors for CSL. CSL thus, needs to device its marketing strategies while analysing its competitors strengths and weaknesses. This will provide competitive strength to the Company to extend its core competencies(Hollensen, 2015). Company Introduction CSL Limited is an Australian based global speciality biotechnology company. It was founded in the year 1916 by the Federal government of Australia and later privatized in the year 1994. It headquarters are currently based in Parkville, Melbourne, Victoria and its current CEO is Paul Perreault(CSL, Retrieved on 22nd September 2017). It focuses on developing, manufacturing and marketing of products which are specialized in treatment of serious medical conditions amongst humans. Its primary product areas are vaccines, blood plasma derivatives, cell culture reagent, derivative vaccines along with various other genetic and medical research manufacturing with applications. Current revenues of the Company is USD 7.10 billion and net income is USD 1,899 million. Its website is www.csl.com.au. The Company has presence in USA, Germany, UK, Australia along with various other countries around the world. Figure 1: Company Logo Source: (www.livetradingnews.com, Retrieved on 23rd September 2017) Marketing Strategies Marketing strategies are devised by companies such that they can cater to marketing needs and customer awareness towards the Company. CSL is a large Company that caters to global base of patients dealing in exclusive range of products and services(Kotler P. B., 2015). Marketing procedure followed by the Company is transparent in nature as it provides sufficient information regarding products of the Company. All efforts and endeavors made by CSL conform to corporate social responsibility standards that is adopted by the Company. It aims to create all efforts in a sustainable and environmentally friendly manner that allows gradual growth for its businesses. Figure 2: CSL Company Extent Source: (www.slideshare.net, Retrieved on 23rd September 2017) Marketing strategies for the Company includes a wide range of aspects as public relations, customer marketing, social media marketing and so on. It encompasses all marketing activities that are short-term as well as long-term oriented. Product information are easily accessible and available across to range of customers and professionals, who are involved in health care sector(Mullins, Marketing management: A strategic decision-making approach., 2012). Further analysis regarding its marketing strategies for sustaining profitability can be understood by using 4Ps of marketing. Figure 3: Marketing Mix 4P's Source: (www.dreamstime.com, Retriveed on 23rd September 2017) Product CSL manufactures various products for the markets that it caters to around the world. Its research and development strategy is focused on creating unique product creation that can attract a sizable population. Products of the Company includes insulin for treating diabetic related conditions in Australian markets, tetanus vaccines, various other vaccines and other drugs along with medicines(Goi, 2009). With privatization of the Company in 2000, it took over Swiss plasma company, ZLB Bioplasma AG, which further helped to extend its research and developmental facility. Its products are manufactured within several divisions as vaccines, antivenoms, pharmaceutical drugs and so on. The products are designed in an environmentally friendly manner that adheres to industry specific norms. The Company products are manufactured in Australian plant for its supply in the country and has high quality norms. Products of the Company has received minimum criticisms to conformance to quality and enviro nmental sustainability norms(Alon, 2012). It products have been able to provide tremendous sustainability to the Company as it conforms to several environmental regulations as being sourced from natural sources unlike other chemicals and drug companies. Its suppliers of raw materials needs to adhere to stringent quality norms that are extended by the Company such that the ultimate products conforms to standards. Price The Company has adopted competitive pricing for its various products. Such competitive based pricing methodology has allowed the Company develop significant market share and attract sizable amount of customers(Mooradian, 2012). However, heavy reliance on research and development has led to tremendous high costs for the Company which has reduced its profitability. As the Company was an initiative from the Federal Government of Australia, its Board members still maintain integrity in respect to its products. Various well researched products are developed due to their high demands in the market hence are often provided in the market at considerably less prices to increase their affordability(Aaker, 2008). This has created a reliance on their brand name rendering sustainability for the business of the Company. Distribution The place based strategy for the Company incorporates the ways it uses to distribute its various products in the market. The Company having a long-term establishment distributes its products through its existent lines of distributions(Ferrell, 2012). It has tie-up with several distributors and medicinal stores, which distributes its products across the healthcare market. Its distribution strategy is well interlinked and marketing professionals of the Company work together with distributors for refurbishing any products that might be exhausted form stores or healthcare units. Its distribution channel is integral to its success, which always maintains adequate stocks for the Company products. Its long-term existence and sustenance is due to its competitive distribution strategy and the exclusive relation that it maintains with its distributors(Proctor, 2014). Though distributor commission is comparatively low compared to its peers, but its steady relation and value based marketing tech niques that it establishes allows its competitive strength along with sustainability. Distributors like to be associated with its brand name due to high quality products and its capabilities to maintain relations. The Company is however still using traditional packaging methods and technology that does not yet conforms to sustainability norms. The Company is however present in relatively insignificant manner in suburbs of Australia. Though it has earlier developed various programs for Indigenous people but currently its focus remains relatively diverted from penetration marketing as it incurs comparatively higher costs.. Promotion Promotional strategy is an integral aspect of marketing that helps in development and creation of a brand name. CSL enjoys a leading share in the market in Australia overtaking Baxter, Grifols and other competitors(Peter, 2011). Though there is significant competition in the market, its quality products and long-term brand name allows it to have tremendous competitive advantage compared to rest of the companies. The Company being financed initially by Federal government enjoys significant financial strengths that has rendered it capabilities in research and developmental activities. Hence, its primary promotional activities is centered around marketing for its various research projects(Zinkan, 2012). Though it also advertises regarding its multiple drugs and vaccines in the market yet its marketing endeavors are focused on its various researches and value addition that it does in the field of medical sciences. Table 1: Market Share of Pharma Companies, Australia Source: (Investor.com.au, Retreived on 22nd September 2017) The Company incorporates a variety of promotional activities including brand marketing by way of public relation development, social media marketing, advertising in traditional methods including televisions, radio, putting up hoardings and so on(Mullins, Marketing management: A strategic decision-making approach., 2012). All promotional activities of the Company are done in a constant manner in order that the brand identity is maintained. The Company includes immense importance towards creation of brand name and identity for long-term engagement with its customers and professionals in health care sector. Comparison Marketing Mix 4Ps While CSL maintains tremendous amounts of sustainable norms in the industry other competitors are unable to compete with the tremendous potential of CSL. Marketing strategies that are adopted by the Company are relatively lower compared to its competitors strengths marketing strategies(Mihart, 2012). Comparing marketing mix of four Ps of the Company with that of its competitors reveal the following comparisons; Product: Products of the Company are relatively higher in quality compared to its competitors. Further, competition analysis reveals that the Company being relatively higher on research and developmental activates provides newer products to its market as against its competitors that barely provide new products. Primary competency of pharmaceutical companies are created by way of new product development and researching with drug types. Product development further allows companies to grow in their market share comparative to other companies that are present in the industry(Gummesson, 2011). Higher share prices and liquidity of the Companys share reflects, customer engagement and high brand recognition of the Company compared to its peers. Price: Prices of the Companys product is affordable compared to its peers in the market. Such prices further allow the Company to create a much larger market share, however it is suffering with lower profitability. While competitors charges relatively higher prices for drugs that are exclusive in the market, this company is barely concentrated on making profits from such endeavors. Though this allows relatively low profitability share but it has created greater demand for the products of the Company. Prices of some its vaccines as well as medicines that have been already had mass production in the market, are lower compared to its competitors(Perreault Jr, 2013). Place: The distribution of the products of CSL is done through traditional forms of distribution and it has not improvised its supply chain network since a long period of time. Competitors on the other hand have effectively enhanced their distribution network to provide greater competency and increased profitability. Various competitors has opted for forward as well as backward integration for their products that has created sustainability for business and helped it spread. CSL is lagging behind in this endeavor, which is impacting its business in the long run. Promotion: Brand name is created and retained through multifarious promotional techniques, which are adopted by several pharmaceutical companies. When comparing promotional strategies of CSL compared to its competitors it can be said that the Company conducts relatively less amounts of promotions compared to its peers. Competitors in the industry are adopting events and other programs for attracting healthcare professionals and also direct patients to their company by building greater brand recognition. Promotional strategy of CSL highly differs as they primarily promote through their distributor channels which sell their products. Further they have marketing personnel, who directly interact with professionals in healthcare as doctors, nurses and other staffs for promoting their products. CSL has been following this marketing strategic techniques for years whereas newer companies are adopting technologies along with other methods for their promotions. CSL lags behind in their marketi ng efforts, their marketing budgets is also comparatively lower compared to their peers and competitors. Recommendations Analysis of marketing strategy of CSL reflects that the Company is competitive compared to its peers or competitors within the industry. The Company has been able to extend its core competency in the market to cover its scope with divergent range of healthcare professionals as well as patient group. While client profile for the Company remaining divergent, it often needs to include multiple marketing tactics at similar point in time for advancing its competitive advantage in the market. However, the Company is still lagging behind in revenue share due to high amounts of investment into research and developmental activities. The below mentioned recommendations will allow the Company to extend its core competency and remain in leading position in Australian markets. CSL needs to encompass more generic products in its product basket to appeal to large number of health care professional and patients. With having immense focus on its research and developmental activities, the brand hardly focuses on existing generic drugs. In case the Company is able to cater to developing its existing range of drugs in a more sustainable manner, then it will be able to create a larger market share with dominance in all product categories. The Company needs to adopt varying price strategies for its varied products as newly researched products can have premium pricing whereas generic drugs can have base rate pricing methods. This will help create more customer demands and attract larger bases of customers. With an initiative towards its vision statement for creating a healthier society, the brand believes in sustainable growth with environmental conformations. The Company does not charges highly for its newly launched medicines or vaccines, which has hampered its capability to make abnormal profits in short term. Distribution strategy followed by the Company is supply chain that are comparable with its peers. The Company needs to create a value chain supply chain strategy for itself by supplying products with its own channels of distributions. The Company has tremendous financial capabilities to establish synergies. It can opt for backward and forward integration of its business, will allow greater retention of profits. The Company can develop strategies extensively in regards to environmental norms. Its newly accommodated Corporate Social Responsibility (CSR) norms allows it to be a leader in biotherapy markets. Its CSR has been totality integrated in Company strategies which further provides adherence to environmental standards into its sustainability norms.; Reference Lists Aaker, D. K. 2008. Marketing research. John Wiley Sons. Alon, I. a. 2012. Global marketing. Mcgraw Hill Higher Educat. CSL. (Retrieved on 22nd September 2017). Company Profile. https://www.csl.com.au/about. Ferrell, O. a. 2012. Marketing strategy, text and cases. Nelson Education. Goi, C. 2009. A review of marketing mix: 4Ps or more?. . International journal of marketing studies, 1(1), 2. Gummesson, E. 2011. Total relationship marketing. Routledge. Hollensen, S. 2015. Marketing management: A relationship approach. Pearson Education. Investor.com.au, I. (Retreived on 22nd September 2017). 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