CSL Limited is an international organization that specialize in human medicine. CSL is a biotechnology institute which do research, creates, manufactures and market their products to prevent serious human medical conditions (Vellas, 2016).
The company was founded in 1916 its headquarters is situated in Melbourne, Australia. The first director of the company was William Penfold, the company commence its operations under the director in WEHI building in Melbourne before relocating to Parkville in 1917. Since then the company has grown significantly. The company has so far tried to achieve the following:
In the year 1994 the CSL limited purchased Commonwealth facility. In 2000 the CSL Limited expanded its size by privatising Swiss Plasma Company. In the year 2004 during the oversupply of plasma the company again purchased Aventis Behring, a German Medical Company. This company had be rang 2nd public company in Australia to have attain a share price of above $ 100 for each share (Huang & Sarigöllü, 2014).
CSL is currently public limited company and stock is traded on Australian Securities Exchange market. The company is committed to provide long lasting provision of world-class healthcare research and developments. This market plan is aid to give strategy of expanding its market to Asian-Pacific regions.
Political factors has important role in determination factors that may influence the company’s profitability in Indonesia (Hollender, Zapkau & Schwens, 2017). CSL Limited area of operation is mainly pharmaceutical, Life sciences and Biotechnology across many countries in order to differentiate certain perils of political environment. CSL Limited should consider analysing the following factors before investing or entering the Indonesian Market:
Macro environment like: the inflation rate, rate of saving, foreign exchange rate, interest rate among other factors influence the aggregate investment and aggregate demand of the within an economy. Micro environment factors like competition norms affects the company’s competitive advantage. CSL Limited may utilize the economic factors of the country like population growth rate, economic indicators like Biotechnological, life sciences and pharmaceuticals growth rate of the industry, consumer spending rate to predict the growth trajectory of the organization (Christodoulides, Cadogan & Veloutsou, 2015). The economic factors which CSL limited must consider while carrying PESTEL analysis are as follows:
The method of operations and the society’s culture influence the organization culture within an environment. Communal attitudes and beliefs of a certain country plays an important role in the way CSL Limited marketers will understand its customers and how they will design the marketing messages for Biotechnology, Life sciences and pharmaceuticals industry consumers. The social factors that need to be analysed by the company before entering the new markets are:
Technology is evolving very fast disrupting many industries worldwide. The transport industry is a good example to elucidate the point. Over the past five years the transport industry has been evolving very fast. The industry for taxi for instance has been dominated by many players such as Lyft and Uber. Car industry on the other hand is heading towards automation led high technology firms like Google and the manufacturing sector has been upset by Tesla which have initiated the revolution of an electronic car (Griffith & Yalcinkaya, 2018).
An organisation must not only analyse the technological impacts but also the speed in which the technology is disrupting the industry should be considered as well. Slow speed give an organization time to cope and the vice versa. The analysis of the technology involves the understanding of the following (Morgan, Feng & Whitler, 2018).
It exist different norms in different markets or the environmental standards which affects profitability of the organization. Most of the Asian-Pacific regions including Indonesia have several liability clauses in cases such as mishaps and environmental disasters.
Before CSL enter into the new market it should carefully analyse the environmental standards which is required for the operation in the proposed market (Hult et al.2018).
Some of the factors that should be considers include:
In several countries especially in Asian-Pacific regions, the institutions and the legal framework are not strong enough to guard the rights of the intellectual rights of an organization. CSL company should critical evaluate legal factors before entering the new market. Some of the factors that should be considered include:
Each of the marketing mix strategies should fit into the coordinated plan with internal consistency and single mission statement. Before the adoption of this plan, the marketing managers should consider moral obligations of hospital in Indonesia to the society. Furthermore, the Implementation of this plan will need to consider all actors that are operating in the field. These includes: the doctors, the management, donors, patients, the community and many others (Fatehi, Priestley & Taasoobshirazi, 2018).
The professional marketers need to know that healthcare firms are responsible for both society and the culture. The following are the marketing mix strategy that would be applied by CSL Limited.
There are several institutions in Indonesia that offer healthcare services. But each and every institution offer unique products. CSL company would products would be made to be very unique with that products that are already existing in the market. The company will also hire good management and medical staff that would help in the preservation of the integrity of the organization (Sapouna, Dimitratos, Larimo & Zucchella, 2018).
Healthcare institutions in Asian-Pacific Regions are facing a lot of demands to expand their research activities more so the Hospitals in Indonesia. The CSL Limited would have to undergo redefinition process in order to determine the best and unique service for their clients, the company would then market their product to the specific audience that would be identified.
Product would involve: subscriptions programs which are related to living conditions, both the hospital revenue and the community: recreation and many more, they will also create pre-hospital services.
In the course of marketing analysis for patients, many strategies for trading effectively with the available market would be put in place. The market will respond positive if the company would put more efforts on generating more alternatives.
The ideas of mission and image will be very crucial. If the Image of CSL Limited in the eye of the potential customers is bigger than the ideal, or if the mission statement of the company is very old for the needs of the current market needs, or if the mission is the same with other companies. Changes-repositioning would be necessary. Company’s image is the crucial term.
CSL limited will need to hire marketing consultants and other specialist like advertising agencies or research firms because their expertise would be required. A marketing director would be needed to do task such as assisting in promotional planning, creating communication channels, recruitment among other function that may be assigned to him/her.
It would be very important to hire a marketing manager. The role of the manager would be to monitor, control and gives directives (Watson IV, Weaven,Perkins, Sardana & Palmatier, 2018).
There are several ways in which the CSL Limited will enter into the Indonesian Market. I consider Direct exporting as one of the strategies that will work best. The CSL Limited may decide to create a joint venture. The company may as well licence their manufacturing in the country. There are many factors that influence the choice of the strategy to use, these factors include: tariff rates, product level of adaptation in the new market, transportation cost, marketing costs amongst others. These factors may increase the cost of operation for the CSL Company but I believe that the predicted increase in sales volume will offset the costs. The following are the main entry strategies that would be adopted by the CSL Limited: (Fan, Lau & Zhao, 2015).
Direct exporting: this is the process by which the CSL Company would sell directly to the market. Once the CSL Limited will have established sales program, it will then turn to distributors or agents who would work closing in representing the interest of the company.
Licensing – licensing is a sophisticated preparations whereby an organizations transfers its rights to the use of its products or a service to another company. This would be particular suitable strategy for the SCL Limited in a situation whereby the buyer of the license has relatively larger market share in Indonesia (De, 2018).
Franchising – franchising will also work very well for the CSL limited because it have business model which is repeatable, this means that it can be easily be transferred to other markets.
Partnering – CSL Limited will enter the Asian market by working together with other companies. Partnering would take many forms from a single marketing activities to a more sophisticated manufacturing alliance. Partnering would be useful specifically in Indonesia because, the culture social activities are different from that of Australia (Larimo, Zucchella, Kontkanen & Hagen, 2018).
This is whereby the CSL limited will buy a land in Indonesia, construct a facility and do the business. Although this is would be very costly and involves a lot of risk for the company. The risk may involve unsuitable government regulations, high cost of transportation, limited technology and inability to find skilled labour (Hapsari, Stoffers & Gunawan & 2017).
In this field of medicine purchasing of a company by CSL Limited would be appropriate because the company purchased may have a considerable market share or may be a direct competitor. This entry strategy would provide an immediate status to be a local company and is going to receive many benefits of the local market and an established base of the customers. The company will also be treated by the Indonesian government as to be a local market (Hakansson, 2015).
The following are the CSL objectives. The main purpose of this objectives is to enable the company to have a focus which can be monitored and plan to meet the main business goals.
A comparison of monetary expenditures and the plan objectives will be involved in this project. The following financial controls and performance standards are suggestion for CSL Limited.
To evaluate the effectiveness of CSL Limited marketing plan, it is crucial to compare the actual performance and the plan objectives. To facilitate the analysis, monitoring measures would be followed for the majority of the operations that will be needed to put the marketing plan into action. The procedures will involve the following:
Conclusion and recommendation
As it has been shown clearly shown from the company and market analysis, CSL Company limited has a potential to attain its objectives and also the potential to expand its market to Indonesia. The company may further expand its market share by in the new market by adhering to the strategies that has been explained in this report. The following are the recommendations for the company that would aid it to be successful in the new market: (Henseler, Ringle & Sinkovics, 2009.).
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