Discuss about the Marketing Strategy and Management Plan
Strategic management is generally a process of formulating and implementing the business initiatives undertaken by the top management department. The business owners usually provide the responsibility to the management to implement some important strategies (Gassmann, Reepmeyer and von Zedtwitz 2013). The management of an organisation is well aware of the business functionalities that can improve the organizational potentiality and ensure profitability for long run (Hill, Jones and Schilling 2014). However, it is essential to analyze the internal and external market before implementing any fruitful business strategy. The study will explore the strategic analysis of Medochemie, which is a pharmaceutical company in Cyprus. This marketing plan is based on launching a new pharmaceutical product CarboSol Capsule, which prevents the cardiac attacks at the emerging stage. The structured marketing plan will be discussed by identifying the business potentiality of launching new products in the pharmaceutical market. It is necessary to conduct a detailed research study about the external and internal market before implementing any relevant strategic decision. The identification of the internal and external market would be helpful in understanding the target market segment for introducing this innovative therapeutic product.
Medochemie Ltd. is a renowned pharmaceutical company located in Cyprus and was established in the year of 1976 (Medochemie.com 2017). The company provides the quality drug and therapeutic medicines to the healthcare centers, hospitals, and other medical shops. The company has been focusing on establishing the global presence by undertaking the business expansion process. The active participation in expanding the business into promising market worldwide is the major business mission. The company is also focusing on expanding the business from the base in Europe to Africa and Middle East, through the continent of Far East and America. The company has developed a trusted network by assimilating the agents and partners in outside 20 Core Offices of the business. This network group allows the company to operate in almost 107 countries (Medochemie.com 2017).
The company is now intending to introduce a new pharmaceutical product in the market. The company will launch CarboSol Capsule, which is a therapeutic product that prevents the cardiac attack at the initial stage. When a person will sense a symptom of cardiac attack, the consumption of this capsule will help in surviving for nearly one hour. Within this one hour, the person can take the precautions or can be admitted to the hospital. The cardiac attack is one of the most fearful health issues that are majorly faced by the middle and old age people. Especially, people are worried about the elderly people at home. Apart from them, the middle people who are in enormous stress can also be the victim of such cardiac attack at any point of time. This capsule is prepared by applying the innovative techniques and chemical ingredients that prevent the cardiac attack for sometimes. The marketing plan will thus focus on the strengths and weakness of the company for introducing new therapeutic product in the market.
In the year of 2012, Medochemie Ltd. has renewed and expanded agreement for deploying the upcoming generation. The company is adopting the cloud based mobile intelligence for the key account management commercial teams located in Greece, Romania, and Cyprus. The company has paid attention towards developing the effective CRM process by bringing the noticeable revolution in the business process. It is noted that this revolutionary solution will be enhanced by the world’s most effective healthcare professional database, OneKeyTM (Businesswire.com 2012). The company has also involved the multi-channel customer support for strengthening the CRM process. Medochemie Ltd. has been focusing on the cost-effective, cloud-based, and user-friendly CRM process that will support the company to optimize the commercial performance in the pharmaceutical business market (Dubois et al. 2015). In current scenario, it is noticed that the companies have been experiencing the cost-cutting formularies and patent cliffs that stimulate the demands for generic drugs. However, in order to launch a new therapeutic product in the market, it is essential to concentrate on implementing such cloud based CRM process to gather supports of the potential customers.
According to Nagurney, Li and Nagurney (2013), the marketing situational analysis is generally considered as the foundation of the marketing plan. In order to undertake a structured and sequential marketing plan, it is necessary to identify the external and internal market at the initial stage. The marketing situational analysis provides a thorough examination of the internal and external factors that have the significant influence on business functions. The underlying strengths and weakness of the company will help in identify the business potentiality at the very first place (Crommelin et al. 2014). On the other hand, the recognition of external market opportunities would ensure the suitable strategic decisions that can improve the business functionalities. Moreover, the execution of the appropriate business decisions would be discussed by analyzing the market situations.
The SWOT analysis provides the insightful ideas about the underlying strengths, weakness, treats and opportunities that shape the business functions for long run. The identified business potentiality is analyzed further.
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SWOT Analysis |
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1. Strengths |
1. The strengthened networking channels 2. The strategic decision making process by the efficient management team 3. The commendable maintenance of the therapeutic categories for the products 4. The remarkable employee strength |
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2. Weaknesses |
1. Lack of proper CRM system for the expanded business 2. Communication errors 3. Lack of necessary technologies |
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3. Opportunities |
1. Availability of the proper information and resources for expanding the business 2. Demands for therapeutic products 3. The extensive technological improvements |
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4. Threats |
1. The emerging competitor companies 2. Lack of proper technical knowledge 3. Lack of skillful attribute to maintain the proper CRM process can affect the business functions. |
Table 1: SWOT analysis
(Source: Rahmani, Emamisaleh and Yadegari 2015)
The above analysis specifies that Medochemie is facing most of the challenges due to the lack of proper technical knowledge. The current business world has become much advanced and competitive. The companies adopt more innovative technicalities to participate in this competitive scenario. It was mentioned that the company is undertaking the cloud-based mobile intelligence through OneKeyTM Database (Businesswire.com 2012). The application of such technologies will help the business to establish the proper CRM process for maintaining the sustainable position. Therefore, in order to avail such opportunities, the company needs to provide the employees proper training to use such advanced technologies (Rahmani, Emamisaleh and Yadegari 2015). Moreover, in order to prepare the innovative pharmaceutical product in the market, it is necessary to adopt these innovative technologies. In addition to this, the company needs to communicate well with the employees to make them aware of this innovative product and the marketing functionalities to launch in the market.
The external market has the significant influence on business operations. It is necessary for the company to understand the external factors that are apparently responsible for appropriate business operations (Petrou and Michael 2015). The PESTLE analysis provides the insightful ideas about the political, economical, social, environmental, legal, and technological impacts on the business operations. The precise ideas about the environmental influence will determine the necessary business strategy that can improvise the business process.
Political Factor
The Republic of Cyprus is generally is a “unitary presidential constitutional Republic”. The District head officer is the main regulator for the six administrative districts. The local representatives help in coordinating the functionalities performed by the district ministers. In the year of 2004, Cyprus joined EU along with nine other countries (Apmgr.org 2013). After this event, this Island is technically considered as the part of Europe continent. However, it is noted that the government has no authority in the northern part of the island. The history suggests that Cyprus follows a non-aligned foreign policy (Cyprusbusinessmail.com 2016). It maintains a close relationship with Greece. The regulatory factors in Cyprus promote the entrepreneurial activities. The low investment rate and flexible labour regulations are relatively ensure productivity for the organizations (Efpia.eu 2016). Moreover, the strong union power is also specified. Hence, it can be inferred that the political influence on business is much favourable.
Economic Factor
The economic performance of Cyprus is much commendable and it reflects the rapid growth. The employment opportunities and maintenance of the stability are also foreseen in Cyprus (Ispor.org 2015). The growth of the industrial business, association of the dynamic services, and advancement of social and physical infrastructure has transformed the economy of the modern age. It is important to note that due to the flexible entrepreneurial community and existence of the dynamic services is the major reason for such economic success in Cyprus. However, it is even noticed that over the past decade, the pharmaceutical market in Cyprus has been characterized by steep increase in per capita and high volume of expenditure (Kanavos and Wouters 2014). The pharmaceutical industry in Cyprus has gone through several transformations due to the recent financial crisis.
Social Factor
Petrou and Michael (2015) implied that Cyprus is recognizably fragmented into private and public health care sectors. This attribute is much specific in the pharmaceutical sector in Cyprus. The prices of the therapeutic products are set as per the official prices set by the Ministry of Health (Ispor.org 2015). The products are sold in wholesale basis. However, in current times, it is noted that the prices of the pharmaceutical products are increasing beyond the productivity (Lse.ac.uk 2014). The society is in need of therapeutic products for curing the health related problems. Therefore, the prices are set higher. However, people from medium or low-income rate sometimes face trouble in purchasing such essential products with such high price (Medochemie.com 2017). Hence, it is necessary to keep the focus on productivity and quality more than the pricing structure.
Technological Factor
The technological influence in the Cyprus pharmaceutical industry is much significant. Cyprus is an island where the advancements in technological structure have become much visible. The technological advancements in the pharmaceutical industry are promoting the innovative methods of producing the medicinal and therapeutic products (Efpia.eu 2016). Medochemie has he vast opportunity to develop the pharmaceutical business by using more innovative techniques. Moreover, the advanced technical equipment is used for reducing time and efforts in medical check-up process (Fransen 2016). Hence, it can be stated that the technological influence can bring more transformation in the pharmaceutical industry in Cyprus.
Legal Factor
In the year of 2011, the expenditure amount in the pharmaceutical products accounted for almost 19.8% of the total expenditure on healthcare products. The Department if Pharmaceutical Services promoted by Ministry of Health procure the public sector drugs (Kanavos and Wouters 2014). The transparent legislative framework is used for pharmaceutical business is mainly transparent. It has maintained the stability for 30 years. The outcomes of tenders are appeared publicly and it even includes the tender price as well as total contract values (Hill, Jones and Schilling 2014). As per the legislative structure, the Ministry of Health decides the pricing structure of the pharmaceutical products. The Cyprus Association of Research and Development Pharmaceutical Companies (KEFEA) is associated for research-based manufacturing process (Kanavos and Wouters 2014). KEFEA provides the appropriate policy suggestions for building the sustainable business process.
Environmental Factor
The government is always much concerned about the environmental development by providing the quality therapeutic or medicinal product. The government is also paying attention towards reducing the waste emissions through the product manufacturing process in the pharmaceutical industry (Blanc 2015). Reducing waste in a country like Cyprus can be much helpful in funding the expansion of health insurance as well as the entire population (Lse.ac.uk 2014). However, the pharmaceutical companies in Cyprus have to be much careful about the environmental welfare by reducing the waste products emitted from the manufacturing process of the therapeutic products (Petrou and Talias 2014). The governmental policies are needed to be followed much strictly in such regards.
The PESTLE analysis discussed in this section is providing the insightful knowledge about the external business market in Cyprus. The overview of this description determines that Medochemie has the remarkable business scope in the market of Cyprus. Moreover, the development of the marketing strategy would be beneficial for achieving growth for future. The further section of the study will discuss the target customer of the company by providing a clear STP analysis.
Medochemie Limited is launching CarboSol Capsule, which is a therapeutic medicine that prevents the cardiac attack until the proper treatment takes place. The company requires using the innovative technologies to manufacture this medicine in the laboratory. However, in order to formulate a structured marketing plan, it is necessary to set the target market and customers at the initial stage. The company is targeting the hospitals, local clinics, outdoor healthcare, household, and the local medicine shops for launching this medicine.
The STP analysis provides the insightful ideas about the product segmentation, target group or market, and the product positioning of a business (Petrou and Vandoros 2016). Before featuring a structured marketing plan, it is necessary to analyze these areas to identify the business potentiality to establish a strengthened entity in an international market. The STP analysis of Medochemie Ltd. is presented further.
Segmentation
Medochemie Ltd. is a Pharmaceutical Company in Cyprus that supplies the necessary therapeutic products to the target group of customers. The company is introducing an innovative medicine, CarboSol Capsule, which prevents the sudden cardiac attack until the proper treatment is undertaken. This capsule will be manufactured by using the proper elements and chemical products. This capsule has the necessary medicinal value that protects the cardiac attack when the symptoms are recognized. The middle age and old age people would require this medicine more significantly for the emergency cases. In fact, this medicine can be kept a home for the security purposes.
Target Group
The major target groups of Medochemie Ltd. are OTC products, Customers who prefer the medicinal products of different flavours and fragrances, doctors, hospital authority, pesticides, agrochemicals, and local health care centres (Medochemie.com, 2017). However, the target group for this product is the old and middle age people, doctors, and other ordinary people of different age groups.
Positioning
According to Horgan et al. (2014), product positioning refers to the featured and useful marketing technique that intends to present the product in the market by applying best approaches to the target customers. This therapeutic product has the capability of preventing the cardiac attack at the time when the symptoms are recognized. It is sometimes noticed that sudden cardiac attack can lead a person to death if the proper treatments are not taken. However, it is necessary to take the right medicine until the necessary treatment starts. This medicine will help in preventing such cardiac attack and keep the person secure until the person will be taken to the hospital. CarboSol Capsule is manufactured by adding the proper medicinal ingredients. The innovative technologies are also used in the laboratory to manufacture a medicine that prevents the myocarditis, which is responsible for heart diseases and cardiac attack (Fung et al. 2016). This medicine has the power of protecting this virus from affecting the heart until the proper treatment is started. This innovative product can save the life of the people who are victim of such sudden cardiac attack.
The result derived from the STP analysis will be helpful enough in determining the marketing mix process. This marketing mix process will be analysed in the further section of the study.
The marketing mix is considered as the set of four decisions that are essentially needed to be analysed before undertaking any marketing plan Petrou and Talias (2016). This marketing mix is also known as 4P’s of marketing that includes four different variables. The products, place, price, and promotion strategies of Medochemie Ltd. will be discussed in this section of the study.
Product
Medochemie Ltd. offers the therapeutic products that are classified into 10 major categories along with the particular emphasis on central nervous system, anti-infectives, and cardiovascular medication (Medochemie.com 2017). Apart from the core branded generic business, the company is also involved with the patented devices for asthma and super-generic productions. The 10 major therapeutic categories are as follows:
However, Medochemie Ltd. will launch CarboSol Capsule that has the anti-bacterial value of preventing myocarditis virus that hits the heart muscle directly (Fung et al. 2016). The prevention of sudden cardiac attack is necessary until the person is not receiving the proper treatment. Therefore, this product will create a special significance in the pharmaceutical market. In fact, the people can keep this medicine at home to take proper precautions and protect someone from being affected by this attack.
Price
The company is much concerned about the quality parameter of the therapeutic products and services. The therapeutic products are much demanding to the people for eliminating health hazards. Providing the high quality therapeutic products is necessary for establishing the sustainable business (Riboldazzi 2016). Medochemie Limited is focused on the reasonable pricing structure for CarboSol Capsule. The major motto of the company is to make this therapeutic product available to every individual from diverse income range. The quality of this medicine remarkable and the price is also much affordable. Hence, the products will be purchasable to the people from different community and income range.
Place
The headquarters and the nine manufacturing plants of Medochemie Ltd. are located in Limassol, Cyprus. Another manufacturing plant of the company is situated in Netherlands whereas the remaining three factories are based in Vietnam. The factories are strategically positioned to serve the Far East Region in a better manner (Fransen 2016). The major sales markets of the company are Western Europe, Middle East, Eastern Europe, America, Australasia, and Africa. The company is aiming at selling CarboSol Capsules in these areas at the beginning. The company is also planning to expand the market in the eastern region of the country. The strategic locations are determined to provide the services and products in a better way. It is to be indicated that the company aims to serve the people in the Far East Region. Selecting the suitable place for business operations is essential for determining the long-term sustainable position (Neokleous et al. 2014). Moreover, the company is also paying attention towards the effective promotional process based on the location-based demands.
The company produces almost 1.5 billion tables and 300 million capsules at the AZ factory (Medochemie.com 2017). The latest injectable manufacturing plant is located in Cyprus. This manufacturing plant has the production capacity of 40 million ampoules every year. In current time, the company is focusing on establishing the strategic positioning in the new manufacturing plant in Vietnam (Medochemie.com 2017). These manufacturing plants have been maintaining the European standards of providing full compliance. However, the two manufacturing plants are still under construction and these will start different operational process in upcoming times (Petrou 2014).
Promotions
Medochemie Ltd. is undertaking the promotional activities by restructuring the operational processes. In today’s date, the business operations of Medochemie Ltd. take place in 95 countries all over the world (Medochemie.com 2017). In order to promote CarboSol Capsules in Cyprus, the company can undertake different promotional process. For example, providing leaflets, preparing hoarding, broadcasting through online and offline mediums, and displaying the products though television media are some of the effective promotional activities. The company has been supplying the pharmaceutical products almost all over the world by undertaking the diverse range of the operational processes. However, it is noted that the company has been undertaking the promotional activities to establish the brand identity through evaluating the CSR process (Cohen and England 2013). The company believes in maintaining the Green Operation Activities. The company is providing the financial supports to Andreas Kariolou, the Cypriot Windsurfing Champion. The promotional activities of the company generally are focusing on encouraging the youth in developing their wellbeing. The company even needs to concentrate on some of the promotional opportunities. These opportunities are discussed further:
The above discussion reflects that the company can avail the enormous opportunities of reaching to the target audience. However, it is necessary to pay attention towards proper operational activities in order to establish the business entity in international market.
The above report initiates the idea that the company has the suitable market for launching the innovative medicine in Cyprus. At the initial stage, the analysis of the strengths, weakness, opportunities, and threats suggested that the company lack the proper communication transparency and the technological supports. In current time, Cyprus has been taking the active initiatives in developing the technological tools in the pharmaceutical industry. Medochemie Ltd can even use such technologies in the laboratory for manufacturing this therapeutic product. It is necessary for Medochemie Ltd. to undertake such fruitful technologies for manufacturing the necessary therapeutic products. However, in order to implement and monitor the process, the company requires providing concentration on following purposes.
It is sated that the company requires undertaking the advanced technologies for improving the operational process. Moreover, these technological improvements help in expanding the business in the international market. Hence, it is the primary responsibility of the company is to provide the proper training and development sessions to the existed employees (Kanavos and Wouters 2014). When the employees will be skilled enough in using such advanced technologies, it will be effective enough in bringing improvisations in the operational process.
Communicating with the different level of employees is necessary. When the company opts for undertaking any particular initiative, it is needed to be communicated more significantly. Starting from the business authority to the staffs associated with the medicine manufacturing process need to receive the sufficient information about the operational functions and business activities. The maintenance of the proper communication transparency would be effective enough in mitigating the potential risks and challenges as well (Fransen 2016). Moreover, it will generate reliability among the associated staffs that drive the company towards success.
The study observes that Medochemie Ltd. needs to avail the opportunities of the technological supports promoted by the Cyprus Government. The company is launching a new medicine, CarboSol Capsule that prevents the myocarditis virus that creates the sudden cardiac attack. This medicine has the power of protecting a person from a sudden cardiac attack once the symptoms are recognized. Until the proper treatment is started, this medicine can keep a person safe. The major weakness of the company is found in using the latest technologies for manufacturing these therapeutic products. Cyprus government has been supporting the use of advanced technologies in the pharmaceutical industry. Therefore, Medochemie Ltd. has the enormous opportunity to use such latest technologies in manufacturing this innovative medicine in the laboratory. However, the existing staffs need to receive the proper training for accomplishing such goals. In addition to this, the establishment of the communicational transparency is also much necessary. Furthermore, undertaking the fruitful promotional activities will be beneficial in strengthening the brand identity all over the world.
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