Market entry strategy for advancis medical

Market incoming st prescribegy for advancis health check checkupIn this report, I will be discussing near a pharmaceutical producer called Advancis aesculapian, its increases, groceryplaceing dodging and grocery storeplace work out asked for the family to enter a unexampled food mart abroad. administrationFounded in 1979 and imbrutedd in Nottingham UK, Advancis medical examination is a pharmaceutical manufacturer which offers a wide go astray of offend cargon crossways that realize grievous clinical efficacy and be palmy to use and pass on boss performance. Holding around 125 employees, the values and mission of Advancis medical is to visualise and manufacture backs in order to man term the wound environment and strike optimum wound healing by Minimizing bacterial accuseCreating a moist wound environmentLeaving the wound as quiet as feasibleAchieving and acceptable cosmetic result for the healed wound(advancis.co.uk, online resource) w atomic num ber 18 and market characterAdvancis medical checkup offers a wide range of dressing crossings which fag end be categorized as fol lowlys Activon medical Manuka lamb dressingsActivon Tube, Activon Tulle, Algivon, Actilite, Actibalm.Silfix soft silic atomic number 53 dressingsEpisil, Episil Absorbent, Silflex, Advazorb Border, Siltape, Advasil conform, Eclypse Adherent, Eclypse Adherent Sacral.Advanced wound c be dressingEclypse, Eclypse Boot, Advadraw, Advadraw Spiral, Advazorb Plus, Adva-co, Advasoft, Kikuhime.Advancis aesculapian has been able to make its produce famous in the market. recently this year, the lodge has walked a management with the base award in Medlink East Midlands entry Competition. According to the gross revenue and merchandising director of Advancis Medical, the new products have had a fantastic reception in the market.PerformanceAdvancis Medical distributes its product in motley countries. They be Greece, Sweden, Norway, Denmark, Republic of Ireland , Slovakia, Saudi Arabia, Iran, Jordan, United Arab Emirates, Kuwait, Qatar, Bahrain, Oman and 22 separate countries as well. Advancis Medical strives for continuous improvement in the performance. The firm is connected to do something best, most complete, and most efficient and most timely way possible. Then it will try to think of ways to do it recrudesce the next time. The company measures its performance carefully, ensuring that integrity and respect for commonwealth are never compromised. It wishes to attract the highschoolest-calibre employees, providing them with opportunities to develop to their full potential and to tract in the success that comes from winning in the marketplace (advancis.co.uk).2. International marketing supplyingInternational marketing is set of application where the marketing of goods and services are carried out across national border. Having look from the UKs point of view, export activity seems to be the significant factor in transnational m arketing activity. An international marketing planning comes from the firms corporate outline and includes matters interchangeable product military position, branding strategies, choice of target countries and manners needed to enter the new target market and so on (Lancaster G., et al., 2002).2.1 Internal and External AnalysisIt is necessary to consider the environment around the company to expand internationally. Here, I will be discussing close to BCG analysis as an internal analysis. BCG (Boston Consulting Group) analysis is used to die their products and lineage line. The BCG analysis helps the company in allocating resources and acts as an analytical ray of light in brand marketing, product and strategic management.Source (Bensoussan B.E., Fleisher C.S., 2008)Having look at the above chart, Stars are high proceeds businesses or products in markets where they are strong compared with the competition. In Advancis Medical, Activon Honey product acts standardized a sta r. They have high market share as well as high harvest-feast rate. Cash cows are low-growth businesses or products which has a copulationly high market share. These units are mature and successful businesses with relatively bitty need for investiture. Products like Eclypse, Eclypse Boot of Advancis Medical are cash cows. They need to monitored and need little investment. Question marks are units or products with low market share but which operate in higher growth markets. This means that they have potential, but may require substantial investment in order to grow market share among the competing and powerful competitors. As far as I am concerned, Advancis Medical has no special products to match this unit. Dogs refer to products or business that have low relative share in low growth markets. Silfix soft silicone dressings of Advancis Medical are the products that act as dogs.Performing an external analysis, PEST (Political, Economic, societal and Technological) factors will b e taken into account for Advancis Medical.Political The industry has witnessed increase political attention due to the increased recognition of the economic greatness of healthcare as a component of social welfare all over the years. Political interest has also been generated because of the increasing social and pecuniary burden of healthcare. UKs National Health Service debate is an example.Economic In the ten to 2003, the pharmaceutical industry witnessed high value mergers and acquisitions. With a projected farm animal value growth rate of 10.5% (2003-2010) and Health Care growth rate of 12.5% (2003-2010), the audited value of the world(prenominal) pharmaceutical market is estimated to reach a extensive 500 billion dollars by 2004. Majority of pharmaceutical sales rebel in the US, EU and Japanese markets.Social good health is an eventful personal and social requirement and the unique role pharmaceutical firms like Advancis Medical play in meeting societys need. In r ecent times, the impaction of heterogeneous global epidemics e.g. SARS, AIDS etc has also attracted popular and media attention to the industry. The execution of the intense media and political attention has resulted in increasing industry efforts to manufacture and maintain proper government-industry-society communications.Technological Latest scientific and technological advances in science are forcing industry players to adapt ever faster to the evolving environments in which they participate. Scientific advancements have also increased the need for increased disbursement on research and development in order to encourage innovation (Johnson G, Scholes K, 2002)2.2 SWOT Analysis of Advancis MedicalStrengthAdvancis Medical listens to the issues and problems raised by clinicians and its guests and response accordingly by developing the correct and suitable products.Good marketing strength in major geographical areas.Recently, the company win an innovation award which reflects its strength in sales and marketing sector. helplessnessDiscontinuation of products in the latter stages of development leading to customer dissatisfaction.price strategy which turns out to be comparatively expensive.OpportunitiesEmergence of integrated global markets and globalization for new productsIncreasing demand of anti-bacterial honey products like Activon medical manuka honey.Individual brand positioning that makes their product different in the market.Threatsincrease competition in markets and inexpensiveer alternative methods found in the markets can be a possible threat to Advancis Medical.Rising raw material and cargo ships costs which might increase the production cost of the company.(Petryna A., et.al., 2006)2.3 Marketing goals and objectives anyways increasing sales and profit as a marketing goal, Advancis Medical has other marketing objectives. The company highly focuses on these accompanying marketing objectives Gaining preference on brands and servicesPatient EducationCustomer memory board by giving quick response to their queries and requests.Complying with the rules and regulations set by government. whatever major reasons for Advancis Medical to look up for the market internationally are listed as follows The company inescapably a larger customer base to gain economies of scale.Advancis Medical wants to reduce its dependence on any one market.Due to the high competition in the home market, its profitable for the company to go global and make out their products.Because of the economic recession, some other outside(prenominal) markets have higher profit opportunities than the domestic market.2.4 Marketing StrategyHere, Ansoff ground substance will be focused as a marketing strategy for Advancis Medical. Ansoff matrix is a tool which helps the business to decide their product and market growth strategies.Market Penetration is a growth strategy where the business focuses on selling quick product in existing markets. IT helps in mai ntain or increasing the market share of current product. Product development is the strategy where a business aims to introduce new products into existing markets. Market development is growth strategy for a business where a company looks for a new market to sell its existing products. Here, Advancis Medical will be choosing this strategy, as the company is seeking to sell its product at an international market. Under this strategy, Advancis Medical can perform heterogeneous activities to support the strategy by Increasing the global market share by distributing its product to more geographical areas and centralized logistics.Expanding and or distributing products to mainland China and other emerging markets.Improving international brand status and positioning with effective international marketing campaigns (Bennett R., Blythe J., 2002).Diversification is a growth strategy where a business launches and markets new product in new market. This is comparatively jeopardyy because th e business is moving into markets in which it has little or no experience (tutor2u.net, online resource)2.5 Market analysis and Market choiceAdvancis Medical as a pharmaceutical company can segment the market and plan its market analysis by categorizing its customer into walk in customer (who physically visit the distribution centre) and mail order customer (who order the product). Now once the market has been segmented, it is necessary to analyze which market to go. Basically market analysis involves matters like Demographics such as age structure, religious groupings, average household size of that target market.Macroeconomic influences like fluctuation in GDP, unemployment rate, etc.Consumer behaviour on cultural attitudes, educational levels, average income and living standards.Market choice is a main strategic decision. This report is based on selling the product abroad and not in European countries, thus I will be charge on Asian countries/market. China, India, Pakistan and Philippines are the four countries that will be taken into account. Out of four countries, one will be chosen for Advancis Medical to sell and distribute their products.FactorsCountryPolitical and EconomicTrade decreeInvestment ClimateTechnologicalSocialChina7887.56India888.597.5Pakistan665.55.56Philippines5.5665.56The above values are considered out of 10 points. And having looked at the table, India is the target country for Advancis Medical to sell and distribute its product because it has the best factors out of these four countries.Source (china-window.com online resource accessed at 9th November 2010), (buyusa.gov online resource accessed at 9th November 2010)(Ernst Young Private Limited, 2008)(Hahn N., 2008)(Gorrill J.R., 2007)3. Market entering StrategyBasically, market entry strategy is a planned method to deliver and or distribute the products in the target market.IntroductionAs it has been discussed earlier about market entry strategy, there are various methods to p ass through and enter a new market. The market entry strategy methods available to Advancis Medical are as follows merchandiseIndirect merchandise reign over tradeLicensingJoint VenturesDirect InvestmentThe traditional, normal and easy way to enter a outside market is exporting which includes corroboratory and direct exporting. In indirect exporting, the company works through fencesitter intermediaries. Indirect exporting has devil advantages. It involves less investment and less riskiness because the company doesnt have to develop department for exporting, overseas sales core or any international contacts. Direct exporting includes exporting of products and its distribution through the channel of export agent. It is done in different ways Domestic-based export variance, overseas sales branch, travelling export sales division and hostile-based agents.Licensing is another simple way to do international marketing and penetrate the market. It is the method of foreign oper ating theatre where a firm in one country gives permission to company of another country to use the manufacturing, processing, stylemark and other skills provided by the licensor. Joint ventures can be defined as an enterprise where foreign investors may join with local investors and share will power and dominance over the rights, operation and property. The ultimate way of getting relate in foreign market is direct investment which involves direct self-will of foreign-based manufacturing facilities (Kotler P., Keller K.L., 2006)Country ProfileAs it has been discussed earlier on heading 2.5 of this report, India has been chosen as the target country. India is a natural subcontinent covered by the Himalayas in the north, the Arabian Sea in the west, the Bay of Bengal in the east and the Indian Ocean in the south. It has a land frontier of 15,200km and a coastline of 7,517km. India is the mo most populous country in the world with 1,130 million people in July 2008 (estimated).Th e literacy rate is 65% with a great degree of regional variation. Hindi is the official speech of the country and English is used almost everywhere in India acting as an associate official language in business sector. India has a parliamentary system of government with two legislative bodies the central government and the state government. The countrys currency is Indian rupee (INR). The countrys banking system is controlled and monitored by the Reserve Bank of India. Indias economy is rapidly climb in the global economy. So, it is very fruitful for organizations to export, invest or do joint venture in India (Ernst Young Private Limited, 2008).Analysis of market entry strategy and making choiceMarket entry methodsAdvantagesDisadvantagesExporting Manufacturing is home based, so its less risky. Provides an probability to learn foreign market before investing. Less or lose control over the foreign sales Less possibility of knowing who the customers are and hence ill to offer wha t they really want.Licensing It is a good way to start in foreign business and a door to comparatively low risk relationship-Any of the both companies get most out of the effort they do. not bad(p) wont be tied up in foreign operation The participation remains limited to specific product, process or distance of obtainment. The Licensor has less control over the licensee than it does over its own production and sales facilities. Potential returns from manufacturing and marketing might be lost.-This strategy requires considerable planning, findings of fact, investigation and translation.Joint Ventures Sharing of risk as it is partner with foreign company Joint financial strength Good strategy for firms that lack physical, financial or managerial resources to undertake the venture alone. The partners might not agree over policies, marketing and investments. It may be impossible to recover with child(p) if needed. This kind of strategy might prevent MNCs from carrying out manufactur ing and marketing policies globally.Direct Investment The firm can minimize its cost economies by cheap labour or raw materials, freight savings and incentives by foreign government. The company will have good image because it creates job opportunity in the host country. The firm can have full control over its investment and hence can develop marketing and manufacturing polices. The immemorial disadvantage of this strategy is the firm exposes itself to the risk like worsening markets and debased currencies. Secondly, the firm might find it really expensive to reduce or close down its operations, because the host country needs substantial open frame gift to the staffs.(Kotler P., Keller K.L., 2006)Every market entry strategy has certain pros and cons, and looking for at the above table I personally would suggest Exporting strategy as a market entry method for Advancis Medical. Having considered exporting as a expose strategy for the company, Advancis Medical can negate much ri sk and maximize the profit. With this strategy, the company could get a better chance to know and analyze the market and if it looks favourable the firm can switch to other strategy accordingly.4.1 ImplementationIt has been considered that Advancis Medical is going for exporting strategy, now it needs to look for a reliable allocator in India to sell and distribute its product. Advancis Medical needs to point out which product to distribute in India. The product named Activon Tube from Activon Medical Manuka Honey fertilisation category is the best product that matches the needs of market. According to (Kotler P., Keller K.L., 2006), it has been argued that many manufacturing companies think that their job is done once the product leaves the factory. But they need to pay attention to how the product moves within the foreign market. They should be focused on the potential problem that might arise during the distribution of products to final users. The system can be illustrated by t he following diagramSource (Kotler P., Keller K.L., 2006)thither is a potential distributor in India named AK Pharma Pharmaceutical Distributor. It is rigid in a town called Karnataka and is a leading pharmaceutical distributor all over India. The company does more than 13000 products from 250 of Indian and Multinational companies and have a client base of over 1500 customers including hospitals, medical dental colleges, pill pusher druggist and doctors (akp.in online resource).The strategy adopted by the company will follow the 4Ps of marketing in following way Product Medical product/medicine is a pharmaceutical product offered by all the pharmaceutical oil companies. It is difficult to offer customers a point of difference with medicine. However, Advancis medical does so by selling medicine as well as the bandages that is better and faster for wound healing.Price With common products in pharmaceutical industry, prices between competitors are easily matched, which means its difficult to differentiate the product based on price. Advancis medical is constantly monitoring the price and if possible cut costs and make the price reasonable to compete in the market.Place Advancis medical distributes its product in more than 30 countries. And is expanding globally which is a vital strength in the firms marketing strategy. Talking about Advancis medical in India, I believe its a perfect place for the company due to the countrys demographic factors which ensures the right number and qualities of products are supplied to various places.Promotion This might include the company to do advertising, marketing through radios or carrying out loyalty programmes to drive sales volume and curb the customers (Bennett R., Blythe J., 2002).Hence, having an overall analysis in the report, it can be seen that Advancis Medical needs to follow an exporting strategy to India and sell and distribute the product to that targeted market.