Opportunity of Marketing Pharmaceutical Brand in the UK - Assignment Example

Investigate the potential opportunity of marketing this brand in the UK for a pharmaceutical company Executive Summary This essay mainly highlights the strategies and policies taken by a renowned pharmaceutical organization named Bursti, while entering the market of United Kingdom. Apart from this, it also describes the competitive scenario of the industry of Pharmacy in UK so as to analyze the dominance of the existing rival players. Other than this, it also analyses the external and internal environment of UK with the help of the technique of marketing audit. With the help of SWOT analyses, the strength, weakness, opportunities and threats of the organization of Bursti is recognized in the markets of UK among other players. And finally the paper also comprises of certain recommendations about the strategies and policies that might be taken by the organization of Bursti so as to retain its sustainability. Overview and Business Mission Bursti is one of the reputed multinational pharmaceutical organizations operating successfully in this segment among other players. It is mainly due to its desire to present varied types of inventive products to the customers at a quite competitive price as compared to other contenders. It is because, the organization of Bursti desired to create a dominating position as well as high brand image in this segment among other rivals. Side by side, it also tried to create a strong base of customers thereby amplifying its loyalty and distinctiveness in the market of UK. This might help the organization in enhancing its total sales and net income in UK market among other rivals. Therefore, in order to fulfil such desires, the organization of Bursti desired to offer varied types of innovative products such as anti?acne cream to its customers at a quite lowest price. By doing so, it might attract a wide range of customers towards the brand thereby amplifying its reputation and brand value in the market of UK among others. Marketing Audit Marketing audit is one of the most popular strategic techniques used to analyze and evaluate the marketing capabilities of an organization periodically. Along with this, it is also used to evaluate the marketing environment, objectives, policies, strategies and plans that might enhance the prosperity of the organization thereby reducing its weaknesses. Other than this, it also helps in identifying the defects, deficiencies as well as the problems present within the marketing activities of the organization so that it might be easily reduced. Thus, marketing audit helps in analyzing three areas such as external and internal marketing environment as well as current marketing strategies. External marketing audit The pharmacy market of UK by PESTEL In this age of globalization and industrialization, advancement is witnessed in each and every segment. Similarly, the organizations operating under the umbrella of pharmacy market also amplified its market share and growth rate with a rapid pace as compared to any other organizations. Due to which, its annual growth rate (CAGR) enhanced by 15.7% as well as profit margin increased by 21.6 % in the year 2012- 2013. This proved extremely beneficial for the economy of UK thereby rebounding itself from global economic downturn. It became possible due to the huge contribution of the Pharmacy companies towards the gross domestic product (GDP) and gross national product (GNP) of the economy. Other than this, due to the improvement of the per-capital income of the individual of United Kingdom, the purchasing power of the customers also increased. This proved extremely effective for the Pharmacy organizations thereby amplifying its profit margin and productivity to a certain extent as compared to others. Moreover, the implementation of the varied policies of the government in order to make the requirements of healthcare more affordable and accessible, also acted as a boon for the pharmaceutical organizations. Due to which the net income and revenues of the organizations operating under Pharmacy segment enhanced to a significant extent among others. Therefore, it might be clearly depicted from the above mentioned scenario that the UK market is extremely (Tidd & Bessant, 2011, p. 234-678) favourable for the organization of Bursti to penetrate. However, the organization of Bursti needs to present a unique-featured medicine such as anti?acne cream to fascinate the customers towards the brand in order to establish its position. Only then, the brand image and equity of the organization of Bursti in the market of UK among many other existing players. The Pharmacy Market of UK by Porter’s Five Forces Although, the pharmaceutical industry in UK market is one of the fastest expanding sectors still these organizations attained significant strides in a very short period of time. It is mainly due to the introduction of varied types of innovative products so as to fulfil the requirements and desires of the customers. Therefore, in order to create a sustainable position for any newly entering organization (Bursti), it’s extremely essential to analyse and evaluate the situations of the market of UK. However, this might be done with the help of Porter’s five forces. Bargaining power of the consumers- the bargaining power of the buyers or end-users are not extremely high as they are entirely dependent over the decisions of doctors, medical practitioners, medical representatives. So, the identity and recognition of the brands lies mainly within the hands of the influencers. As a result, the switch over costs of the buyers in this segment is quite less as compared to other sectors. Therefore, it might be clearly depicted that in order to enhance the market share and reputation, Bursti need to present a unique featured product to the medical practitioners and doctors so that they might recommend it. Bargaining power of the suppliers- the bargaining power of the suppliers is also quite less in the market of UK. This is mainly due to the presence of numerous suppliers. As a result, in order to retain the customers, the suppliers had to offer the raw materials at a quite low cost as compared to others. Only then the identity and brand image of the suppliers might get retained in this competitive market among others. Thus, it is a very favourable opportunity for Bursti as it might easily attain its raw materials at a quite competitive cost. Threat of substitutes- due to the presence of numerous players, the threat of substitute products is also extremely high. Therefore, the new entrant like Bursti might only dominate the market by presenting inventive products as per the requirements of the customers. Only then, it might easily establish the reputation and brand image of itself among other substitute products. Side by side, the profitability and equity of the brand might also get enhanced in the market of UK. Industry rivalry – the Pharmacy market of UK is extremely competitive and so the intensity of rivalry among the existing players is also high. Due to which maximum extent of the players desire to offer value-added products at a quite low cost so as to retain its portfolio among others. Therefore, in order to remain competitive, Bursti need to offer innovative products (anti-acne cream) with distinguished features so as to retain the customers for longer period of time. Barriers of entry- the barriers to enter within the segment of Pharmacy are extremely high due to extensive rivalry. Along with this, high regulations of the prices of the products also exist within the rival players. Due to which, the organizations always had to offer their products at a competitive price so as to retain its image and fame in the market among other players. So, it is extremely difficult for any new entrant to enter. However as the government policies are quite supportive so the chances to enter within the Pharmacy market of UK, still exists. Thus, from the above mentioned points, it might be clearly analysed that the market condition of UK is extremely competitive, so an organization might maintain its brand value only by offering ingenious products at a low cost. Market- in this age of health and fashion conscious individual, acne is one of the most distressful disorders, which might reduce the entire glow of the skin. Therefore, in order to get back the beautiful and glowing skin, the demand of dermatologists and the derma products such as anti acne cream or anti acne moisturisers enhanced to a significant extent. Moreover, in order to attain a glowing skin, maximum extent of the customers desire to spend huge amount of revenues as well, over these products. This acted as a catalyst thereby amplifying the brand value and market share of these products enhanced thereby amplifying its productivity and profit margin to a certain extent as presented in the below graph. Customers- the customers of the market of UK are extremely price sensitive. They desire to attain value- added products at a competitive price. Due to which, the existing players of Pharmacy industry always tries to offer varied types of advantageous products so as to retain the loyalty of the customers. Similarly, Bursti also need to offer high concentration over its research and development so as to present products as per the requirements of the customers. Only then, it might also sustain in this market for longer period of time thereby amplifying its foothold in the market. Competition- the level of competition in the market of UK is extremely high due to the presence of numerous players. Therefore, in order to maintain the portfolio and supremacy, maximum extent of the organization try to undergo market research to know the desires of the customers. By knowing them, the organization tries to present those types of products at a low price in order to attract the customers. Only then, the brand image and reputation of the organization might be retained. Thus, after entering the market of UK, Bursti also need to offer high attention over presentation of innovative products to its customers. Internal Marketing Audit Analysis of the Strategic Issues faced by Bursti in the market of UK Changing diseases patterns- in this age, the pattern of disorders is also changing rapidly and so at times the medical practitioners fail to analyse the main cause of the disorder. This means, the disorder might be due to genetics, diet, climate or many other factors. So, the organization of Bursti might also try to develop the medicines that might also rectify the disorders arising due to genetics or even diets. Only then it might cope-up with such type of challenges in an effective way thereby amplifying its productivity and brand value. Regulatory changes- due to economic downturn, the policies and strategies of the government supporting Pharmacy industries are changing rapidly. Therefore, the organization of Bursti needs to offer the products and its features in such a way so that, it might remain sustained in its position. Increased competition- introduction of generic drugs is a very big challenge for the organizations operating under the segment of Pharmacy. Therefore, in order to retain its position in such extensive competitive scenario, the organizations need to offer the products at lowest prices. Only then, it might survive in such a competitive environment among other players. Thus, it might be depicted that the organization of Bursti needs to undergo extensive research so as to retain its equity and brand value in the market among others. SWOT analysis of Bursti in UK market The advantage of UK market over Bursti: Well developed industrial scenario- the market of UK is just perfect for any pharmaceutical organization to enter and operate. However, the organization needs to offer high attention over research and development so as to present inventive products. Presence of wide range of skilled and talented scientists – as the number of skilled and talented scientists are easily available in the market of UK, so it acts as a boon for the organization of Bursti. This is because; experienced scientists might help in the introduction of various types of inventive products that might retain the customers for longer period of time (Porter, 1986, p.456-489). Wide range of dermatitis product such as anti acne cream- the presence of wide range of dermal products such as anti acne cream helps to get back the shine and glow of the face. This is the most desired wish of the beauty conscious customers of the entire world. Weakness- Numerous rival players- the presence of numerous rival players in the segment of Pharmacy of UK, makes it more competitive. Due to which, the level of rivalry enhances thereby reducing the profit margin and total sales of the rival players. Apart from this, the rate of switch over costs also enhances thereby reducing the reputation and image of the organizations operating in the market among others. Therefore, Bursti needs to present its products with distinct features so that it might retain its value and market share among others (Porter, 2008, p. 345-478). Changes in regulatory standards- due to alterations in the regulatory standards by the government of UK, the growth rate and profit margin get significantly hampered. Side by side, the brand image and loyalty of the brand in the market also gets entirely damaged due to such regulatory reforms. Therefore, such regulatory reforms might also affect the position of the organization of Bursti. Opportunities- Growing awareness for health related disorders such as acne- due to the growing consciousness of the beauty related disorders, the sale and productivity of the organization, Bursti enhanced significantly. Side by side, the market value and reliability of the products of the organization might also get enhanced thereby amplifying its revenues and profitability (Johansson, 1997, p. 234-456). Increasing the purchasing power of the customers- due to the increase of the per capita income of the customers, the purchasing power also enhanced. Due to which, the total sale of the beauty related products such as anti- acne creams might get amplified, thereby enhancing the brand value (Lidstone & Maclennan, 1999, p. 234-789). Threats- Introduction of generic drugs- introduction of generic drugs proved extremely dangerous for the organization of Bursti in the market of UK. This is because; its introduction might reduce the total sale and productivity of health-related products (The Association of the British Pharmaceutical Industry, 2013). Strategic Recommendations Marketing objectives- In order to position the products of Bursti in the competitive market of UK, it’s extremely essential to follow competitive pricing strategy. This is because; without following such strategy, Bursti might not be able to establish the brand image and dependency within the minds of the customers. As a result, the profit margin and total sale of the products of the brand might not get enhanced that might hinder the goodwill of the organization. Other than this, Bursti might try to offer high attention over advertising so as to increase the level of awareness of the customers. This might prove effective for the organization in enhancing its market share and status (Grant, 2005, p. 234-356). Core strategies of Bursti Target Market- the organization of Bursti enters the market of UK with a dermatitis product named anti acne cream, which might be used by any segment of the society. However, mainly it is preferred by the consumers with age-group: 15 – 35 years with a medium to high income group. Along with this, these products are mainly used by the beauty conscious consumers with high lifestyle. So, it is presented in the market as, “spot-less face within few weeks”. Competitor targets- in order to cope up with the targets of the competitors, Bursti need to offer the products with varied types of discounts or free samples. Only then, the demand of the products of Bursti might get enhanced thereby fading the competitiveness of the rival player. Competitive advantage and strategies- in the market of UK the organization of Bursti need to maintain, competitive pricing method. This might help the organization to enhance its total sale and profitability in the market among other players. Marketing Mix Decisions Product- Anti-acne cream for the beauty-conscious individual Price- competitive pricing to establish the product among others Promotion- extensive promotion, in order to increase the level of awareness Place- the market of UK Works Cited Grant, R, M, “Contemporary Strategy Analysis”. London: Sage, 2005. Print. Johansson, J, K, “Global Marketing: Foreign Entry, Local Marketing, and Global Management”. New York: McGraw-Hill, 1997. Print. Lidstone, J. & Maclennan, J, “Marketing Planning for the Pharmacyceutical Industry” London: Sage , 1999. Print. Porter, M, E, “Competition in Global Industries”. New York: Springer, 1986. Print. Porter, M., E, “Competitive Strategy: Techniques for Analyzing Industries and Competitors”. New York: Springer, 2008. Print. The Association of the British Pharmacyceutical Industry, “The pharmacyceutical industry and market in the UK”. 2013. Web. 25th November, 2013. . Tidd, J. & Bessant , J, “Managing Innovation: Integrating Technological, Market and Organizational Change” . Germany: JohnWiley & Sons, 2011. Print. Read More