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Morepan Positioning Strategy - Essay Example

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According to the paper a firm must be able to provide value to its customers in terms of customer surplus, i.e, what the customer is willing to pay for a product but does not need to pay because the Company is able to achieve a cost advantage in its production…
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Morepan Positioning Strategy
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Download file to see previous pages From this discussion it is clear tha by entering into the distribution agreement with Geneva Pharma to be the sole supplier, the Company was able to provide a cost advantage to its customers. Moreover, in the case of bulk drugs, the Company has moved into high margin drug products where the multi -production processes are long and complex; however by developing the necessary technical capabilities to tackle such processes in a cost effective manner utilizing low labor costs in India and supplying to international markets, Morepan has been able to create economic value for its customers.
According to the study Morepan has also positioned itself not merely as a bulk drug company in the Indian market, but has consolidated its position and created customer value by also entering into the Fast Moving Health Goods category. By hosting an entirely new range of products which could be directly marketed to the customers rather than having to reply upon physician prescriptions, the Company was able to gain direct access to the end customer unlike other drug companies. It developed a range of health products such as Lifelyte which was an electrolytic rehydrate, Y Sugar which was a sweetener, Dab fizz an antacid, and similar products which could directly be targeted at the end customer and marketed vigorously through effective sales and advertising techniques. In this way, the Company ha uniquely positioned itself in the market for health food products.
Recently the Company has further expanded its reach into the retail sector in the health care market, through the creation of the Lifespring chain of health and beauty stores. ...Download file to see next pagesRead More
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