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Breathe Right - Case Study Example

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He then brought his invention to CNS incorporated. The CNS Inc. then took the product and marketed it to various sports teams, nighttime snorers, and nasal sufferers. The company,…
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Breathe Right Case Study
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Breathe Right Bruce Johnson, who once suffered from chronic nasal congestion, invented the breathing strips. He then brought his invention to CNS incorporated. The CNS Inc. then took the product and marketed it to various sports teams, nighttime snorers, and nasal sufferers. The company, having developed these well selling products in America, decided to go global.
The company experienced various advantages and disadvantages for going global. Among the advantages is that the company experienced expansion. This is because its market expanded from the local American market that it had been used to large market worldwide consumers. With the expansion of the market, this means that the company had to modify its drugs to meet the various requirements of the foreign markets. Secondly, the company experienced increased growth. The growth was because of the company having new markets. They therefore, had to grow in large numbers and launch new branches in the different countries. This means that the company had to employ more people to work on its newfound market.
A third advantage is the increased consumer awareness of CNS products. When new products were introduced in the new markets, more consumers were eager to know what the products were about and the different curative effects that the products had. Through advertising for these products in media stations, it helped increase consumer awareness of CNS products. This in turn attracted more consumers who buy the drugs either as a prescription or over the counter.
Additionally, the company benefited from the increased sales. When the company decided to go global, it increased its sales volume by a large percentage. This was because of the increased demand of its product. An increase in sales means that there was an increase in sales revenue too. This means that there was increase in the amount that the company was able to transact in a day. More notably, the company benefited from the newly gained local partnership in the various countries where it expanded. Moreover, the company benefited from an increase in profits, which enabled it to expand.
However, the company faced some disadvantages. These include the increased operational cost. The company had to increase the amount of money that it spends in order to maintain the new operations at the various places where it expanded. Secondly, some consumers bought the drugs over the counter without the right prescriptions. This was jeopardizing the existence of the CNC Company in that it was at a risk of being sued for selling its drug to patients without the required prescription from the medical personnel. Moreover, the company had faced a challenge of penetrating to the new markets. This included fulfilling the legal requirement, new tax laws, and from the new packaging, the company was at risk of having their products counterfeit.
CNS had an advantage in using its three-stage process. This included carrying out a market analysis. It enabled the company be aware of the various available markets and would not flop if it invested in the markets. Secondly, the company was able to establish its products in the new markets and able to manage the product adequately in the newly acquired markets.
The resultant advantages from the three stage criteria is that the company was able to identify the quality of its partners, to realize the level of product acceptance, to realize the effect of consumer advertising, and meet initial trial and repeat targets.
Countries that I would have given the highest level of CNS are the countries with a high level of OTC markets, high capita spending in the OTC markets, and those with a future prospect of growth. I would target the countries with the highest level of spending in the OTC drugs and high per capita income. These markets are more promising than others are and would not let down the company if it invested in them. The market mix variable that the company should emphasize the most is the product, its price, its promotion strategies and the place it is selling (Kerin et al, 2010).
Reference
Kerin et al. (2010). Marketing: The Core. New York: McGraw-Hill Companies,Inc. Read More
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