Mangosteen Remedies Marketing Plan - Coursework Example

Introduction to My Company My company, formed under the name and style of ‘Mangosteen Remedies’, is in the field of manufacturing and marketing alternative medicines for chronic ailments such as asthma, arthritis, gout, and chronic allergies, which substitutes traditional medicines such as NSAIDS, salicylates, COX-2 inhibitors and many more. Mission Statement of My Company The mission statement of ‘Mangosteen Remedies’ is to improve and preserve human life by providing medicines prepared from natural substances that rejuvenates our immune system and make us free from the harmful effects of traditional medicines. Why Alternative Medicines Traditional medicines have a lot of harmful side effects and patient cannot consume it for a long time. Physicians prescribe the drugs for chronic diseases as mentioned above, which are mostly NSAIDs, to provide relief from pain. Although, they are highly effective yet they have severe side effects too. The worst part is that once patient stops consuming it, disease returns with a bang. They are only a stopgap arrangement and not a real cure in themselves. These medicines cause stomach cramps, drowsiness, diarrhea, heartburn, edema (swelling of the feet), nausea and much of the discomfort. (NSAIDs Side Effects) Moreover, NSAIDs pose a risk of causing stroke, heart attacks, clotting, and kidney failure, if consumed for a longer duration. The risk is associated with the amount of dosages. No one would like to have such risks and dependency on such drugs. If choice is available for an alternative medicine; it is for sure that patient would prefer switching over to a safer drug where there are no side effects even after taking medicines for a long time. (NSAIDs Side Effects) ‘Mangosteen Remedies’ produces medicines from rind of mangosteen and using many such herbs. Mangosteen is a naturally available fruit. Its remedial potential lies in compounds called xanthones found in abundance in the rind of this fruit. Medical science has found a large group of xanthones in mangosteen. Xanthones are recognized as most potent antioxidants provided by Mother Nature. Antioxidants are the compounds that throw toxic elements out of our body and prevent oxidation of our cells. That is how it increases our immunity slowing the process of ageing and providing strength to fight back chronic diseases. Anti inflammatory properties of xanthone make it an ideal substitute for many steroid based drugs in the long run. (Properties of Xanthones) That is why it is found to work on asthma patients giving them relief including the patients suffering from bronchitis asthma. Mangosteen rind extract is found to work in many ailments for the above mentioned reasons. It imparts a rejuvenating effect increasing the energy levels in humans and a good part is that it delivers a permanent cure without causing any side effects. The manufacturing operation consists of extracting xanthones from mangosteen rind and suitable preparations are made that are high in xanthone concentrations. Medicines outside of U.S FDA ‘Mangosteen Remedies’ products will be marketed in the form of dietary supplements. U.S. FDA does not offer any opinion on dietary supplements. This is to establish the fact that these medicines are beyond the purview of U.S. FDA. A situation analysis in the form of SWOT will help create a suitable marketing plan. SWOT Analysis of Mangosteen Remedies Strengths 1. The strength of the company lies in developing a stream of natural herbal products which has been time tested and found to cure chronic diseases. 2. Abundant supply of naturally occurring raw material is assured. 3. Company being small and production cost is low gives enough cushioning on pricing aspects versus the cost of traditional medicines that patients consume since long. 4. The company is outside the purview of US FDA for it sells the medicine as dietary supplements. Weaknesses 1. The company being small in size does not have money power for a big budget advertisement and publicity. 2. The company having endowed with only limited financial resources, all business activities need to be planned meticulously. Opportunities 1. The company envisages tremendous business opportunities as the generic pharmaceutical drug market in U.S. exceeds $33 billion. The company is just targeting for the market of $3 million in the first year and assuming each customer’s average spending only $300 per annum on company's products, the company needs to generate 10,000 customers on its order book in the first year. 2. Considering country’s population base and its ageing demographics, which is on rise; the company’s business opportunities will also increase with the passage of time. Threats 1. The company's products will be snatching the market of established multinationals and their financial clout may create hurdles in company's marketing and business strategy. 2. Though raw material supply is assured; the seasonality factor may play its role creating reduced or fluctuating supply. 3. Foreign exchange fluctuation can have a bearing on the cost of raw materials. Having understood prominent features of products of this company, it will be most appropriate to formulate a suitable marketing plan for it. A Target Market Description Luther has been categorical in describing the necessity to know about the need of our customer. “Strive for a holistic understanding of your customers and their needs. Be through–and above all be ethical”. (Luther 2000 p. 53-54) No marketing plan can work until customer’s needs are thoroughly understood. That helps us formulate many aspects of marketing strategy right from product, promotion, pricing, delivery and other services. In view of the above, ‘Mangosteen Remedies’ will have unique formulations to differentiate them from competition. Consumers should be able to discern my medicines from several perspectives such as preparations without any side effects whatsoever, rejuvenating effect and charging up the whole body system, and elevating energy levels imparting feeling of youthfulness. Buyers comprehend true value of the product for the money they spent and that will be made possible by educating them. Positioning The niche area selected for positioning the products will be mainly the patients who are already suffering from chronic illnesses such as asthma, arthritis, allergies and have recognized the side effects of traditional medicines and desperately in need of some alternative medicines. Even a small percentage of these patients shifting to my formulations will provide me a huge market. Another area will be those health conscious people who do not want to fall ill and believe in preventive measures. Imparting true information and educating them with all scientific evidence will lure them toward my products. Initially, product positioning will be for these two classes of people. Product Promotion ‘Mangosteen Remedies’ product line needs a good deal of promotional efforts through education campaign. These medicines are regular consumables meeting their specific needs as per illnesses. Once they understand the product correctly and how it can benefit them; most of the selling efforts will be taken care of. The patient should know that here is a product that can cure them permanently and make them free from current traditional drug having serious side effects. People will be educated through product website which will have all the information available along with scientific facts, testimonials, laboratory reports for all their doubts and apprehensions. Their questions will be replied at the earliest possible time frame but not later than 12 hours in any circumstances. Duggan (2000) has clearly emphasized the use of internet for affordable marketing of products and services for small businesses. “Internet users are increasing rapidly. A website offers tremendous opportunities to educate my customers at the fraction of the cost then traditional mode of selling and educating potential customers. The Internet has already changed the face of communication in the most dramatic way since its invention. No previous technology has expanded as quickly or as globally as the Internet and this unparalleled growth is predicted to continue to increase with the numbers of users multiplying at an exponential rate.” (Duggan 2000 p. 58) It is a huge task to make this website popular among millions of other sites. A well chalked out plan is needed for that. This is a formidable task given the fact that there is huge competition among the websites to occupy a place on the first page of search engine results. Articles giving unique information regarding the products and services on the websites are rare. Search engines perform the search based on the key words provided and based on the uniqueness of the content matching those key words. It also checks for the backlinks associated with the articles. A good number of backlinks within the articles will give required impetus to the website to appear on the first page of search engine results. The process known as Search Engine Optimization will be employed to enhance the visibility of my company’s website based on the key-word search. If need be, services of SEO expert can be taken for effective implementation of this marketing strategy. (Beer, Lucy) The website will have the testimonials from the fellow users giving added confidence to the new consumers. This will work toward enhancing the reputation of the website and increase the real traffic. More is the traffic accessing the website; more are the chances of having it converted into customers. Internet is going to be my major marketing tool for disseminating the information related to my product, company policy, pricing and finally the quick delivery system, which is an important aspect of the marketing for any company. (Gordon, Kim. 2010) Social media sites like Linkedin, Facebook, Twitter, have demonstrated how communication can be done at a fraction of the cost compared to the any traditional way of communication including print media. Moreover, opinions given by the members on any services or product work like a wild fire and influence many in a single stroke. It would be most appropriate to harness these social sites for the promotion of my products as a multi dimension marketing strategy. Product Pricing People always look forward to the quality products at reasonable pricing. In a typical product of alternative medicine of this kind, it does provide enough leverage on pricing for the reason that targeted customers, particularly afflicted with chronic diseases, are already spending much higher amount on daily or weekly basis. My product pricing will be such that it does not go deep into their pockets rather they will feel happy that their previous budget on treatment is now saving them a good amount of money. Based on my targeted numbers of customers and their probable daily consumption, my pricing strategy will help me break-even in the very first year. Averaging spending by each customer will be less than $1 per day for two capsules of xanthone rich concentrates. Product Distribution 'Mangosteen Remedies' products are carved for a specialized niche made of the persons suffering from chronic diseases. It is not going to help me having any channel partners; however, for the convenience of customers it will be appropriate to have outlets at some of the department chains in all major cities and towns. But no intermediate channel partner is needed. Besides, plan is to sell large amount of products through online via website. This is the best way to reduce the distribution cost and commissions paid in stocking the product. This will help me to keep my product cost at reasonable level to my end customers. Product Packaging Packing should take into account the cost, and convenience. As each patient's needs vary, it will be appropriate to make available small, medium and big packing so that customer has a choice to save on the cost procuring big packing. Moreover, optimum size packing can also save on shipping cost to a certain extent so this needs to be carefully designed. Control and Evaluation Marketing plan helps us in directing and coordinating our marketing efforts. Marketing plan becomes also our guidelines in controlling and evaluating our set objective of business growth. It also works as a benchmark for future assessment and corrective measures. Control on key variables with regard to our marketing strategy is necessary so is the evaluation process done periodically to assess the success of our marketing plan. The successful marketing plan is a key for successful growth in business. Marketing plan is never seen in isolation and is always a part of overall business plan and implemented in coordination to achieve overall business objectives. Conclusion The marketing plan of my company will be innovative, resilient and dynamic in line with my company's mission statement and overall business objective. The marketing plan will have elements of transparency incorporating ethical overtures instilling a sense of confidence in the minds of my customers so that they remain my loyal customers for all the time. References 1. NSAIDs Side Effects. Retrieved on April 28 2011 from http://arthritis.emedtv.com/nsaids-(nonsteroidal-anti-inflammatory-drugs)/nsaids-side-effects-p2.html 2. Properties of Xanthones. Retrieved on April 28 2011 from http://www.mangosteensource.net/properties-of-xanthones.html 3. Luther, William M. The marketing plan, Third edition, AMACOM. (pp- 53-54) 4. Duggan, Maria. Deveney, John. (2000) How to Make Internet Marketing Simple. Magazine Communication World Volume: 17. Issue: 4. April/May 2000. (pp 58+) 5. Beer, Lucy. The Practical SEO E-Book. Retrieved on April 28 2011 from http://www.elemental-consulting.com/ebooks/practical-seo-ebook.pdf 6. Gordan Kim T. Fresh ideas for innovative marketing. Retrieved on April 28 2011 from http://www.microsoft.com/business/en-us/resources/marketing/market-research/5-easy-steps-to-create-a-marketing-plan.aspx#FreshIdeasforInnovativeMarketing Read More