The Marketing Strategies of Oman Pharmaceuticals
Marketing Management
Case Study Report plus reflection
Assessment 2
Executive Summary
The present report focuses on the marketing objectives and marketing mix of Oman Pharmaceutical Products (OPP LLC). The report identifies that OPP LLC has an approach to enhance the sales performance and improvement of the customer retention strategy. Moreover, the company has an approach to increase the sales performance of upcoming product Cefdinir with a target of 1 million sales. The company utilizes the geographic market segmentation and focuses on people of all ages, most people with an age limit of 50-70. Additionally, the behavioral segmentation considers the people with an approach to lead a healthy life with a special focus on well-being. The psychographic segmentation considers the people living in the urban areas. Moreover, the product placement would be performed on the basis of the effectiveness of products and availability. After that, the report considers a 7ps marketing mix, where the product would be Cefdinir, and the pricing would be a cost-plus pricing strategy. Moreover, the regional operational units are selected as the places with digital and offline marketing as promotional strategies. CEO, marketing manager, and financial advisor would be the responsible authorities, and multi-channel product distribution would be used. Lastly, the report recommends focusing on innovation, research, and regional markets to improve performance. Implementation of Big data technology is also suggested.
Table of Contents
Objectives To Add Value and Optimise International Organisational Performance 6
Segmentation, Targeting and Positioning 6
Evaluation and Control Process 11
Monitoring and receiving feedbacks 11
Rewards and allocation of Resources 11
Introduction and Objectives
Background
Global healthcare provider Oman Pharmaceuticals Products started its journey in the year 2001 and presently flourishes in 40 countries across the globe (Omanpharma, 2021). Integrated value chain and focus on the people and environment make Oman Pharmaceutical Products (OPP LLC) one of the global leaders in the medicine supply chain.
Figure 1 Accreditation from Different Councils
(Source: Omanpharma, 2021)
The successful performance of OPP LLC offers a competitive strength to sustain in the global pharmaceutical market as the company earns approval from the different regulatory authorities from America, Europe, Australia, and Middle East Asia (Omanpharma, 2021).
Aim
The present report aims to illustrate the marketing strategy of OPP LLC through the market segmentation and market positioning along with the representation of 7ps of the marketing mix. This specified aim is achieved with the identification of the marketing objectives of the company.
Scope
The marketing objectives of OPP LLC are identified at first to understand the available market segmentation approach to select the target audiences for the proposed marketing plan of the company (Omanpharma, 2021). The report would illustrate market positioning of the brand. In the later sections, the report focuses on the 7ps of the marketing mix to understand the process, pricing and promotion, and other marketing strategies.
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Objectives to Add Value and Optimise International Organisational Performance
|
Goals |
Specific |
Measurable |
Attainable |
Relevant |
Time-bounded |
|
Global revenue of the company in 2021-2022 to be bounded within $56 million |
Yes |
Yes |
Yes |
Yes |
Somewhat |
|
25% customer retention in terms of the global operational unit |
Yes |
Yes |
yes |
Yes |
Yes |
|
Increases in the sales volume by 10% |
Somewhat |
Yes |
Yes |
Yes |
Yes |
|
A strong presence on Facebook with 1 million Followers |
Somewhat |
Yes |
Yes |
Yes |
Somewhat |
|
Global sells of Cefdinir emanating a sales volume of 1 million units |
Yes |
Yes |
Yes |
Yes |
Yes |
Segmentation, Targeting and Positioning
Segmentation
Dolnicar et al. (2018) opine that the market segmentation process can be defined in four types, which are demographic, geographic, psychographic, and behavioral. These four types of segmentation approach offer a clear understanding of the targeted audiences for a brand and the market positioning.
Figure 2 Market Segmentation Process
(Source: Morinaet al., 2020)
Demographic Segmentation
The demographic segmentation of this specific product would be the people of 55-70.
However, upcoming products like ‘Cefdinir’ can be used for treatment of general bacterial infection, and it is prominent among people of all ages (Morina et al., 2020).
Geographic segmentation
As per, Dolnicar et al (2018), specifically, the geographic segment of the Asian population would be targeted geographically, as the product would be designed considering the Asian climate and disease pattern. The product would be launched globally, and the global population would be treated as the geographical segmentation.
Behavioral Segmentation
Care for health and well-being are the psychological orientation of the segmented customer of OPP LLC. The health-conscious population usually opts for medicines for normal health problems (Sohrabi et al., 2017). Selected behavioural segments would have health consciousness and a habit of preferring medicines in normal health problems and bacterial infections.
Psychographic Segmentation
People with poor health stability and working in a dusty environment are prone to bacterial infractions. Customers with a psychological orientation to living with strong health and in a hygienic environment face anxiety in the bacterial infection (Morinaet al., 2020). These psychographic orientations would be targeted for the market segmentation approach of OPP LLC.
Targeting
Camilleri (2018) opines that targeting is an approach to narrow down the segmented customer base of an organization. However, the market targeting strategy of OPP LLC would be focused on the segmented marketing strategy where differentiated approaches are used. Hence, the company would primarily target the doctors who treat the middle-aged and older population in the Asian sub-content.
Positioning
The effectiveness of the medicines and availability of the products would be the salient feature of the OPP LLC for market positioning.
Figure 3 Market Positioning
(Learner’s Creation)
The product would utilize the strength of the value chain to make it available in the market along with increased effectiveness compared to the available drugs (Camilleri. 2018).
Marketing Mix Strategies and objectives to add value and optimise international organisational performance
Pomering (2017) opines that sustainable marketing approaches consider the marketing mix for the improved market placement of the products. However, the present marketing mix would consider the seven elements of the marketing mix with a focus on Cefdinir as the targeted product.
Figure 4 7Ps Marketing Mix
(Source: Pomering (2017)
Product
The product portfolio of the OPP LLC considers the wide range of prescribed therapeutic products, with more than 125 types of products managing the global quality standards (Omanpharma, 2021). It would need to focus on new drugs to be launched in the market in the coming days.
Figure 5 Upcoming products of OPP LLC
(Source: Omanpharma, 2021)
Cefdinir is selected to be marketed as per the marketing objectives to achieve the marketing objectives of the company (Omanpharma, 2021).
Price
The product would be sold in a file as it would be available in the form of suspension. However, the pricing of the product would utilize the Cost-plus pricing strategy (Duan, 2021). However, the cost would be $14 for a package of 10 units, where the price for each unit would be $15, considering the price for stockists and corporate distributors.
Place
The place is important for the marketing mix of a product as it offers reliability to the customer. Pomering (2017) argues that the selection of strategic places for a market would be useful to deliver values to the society and individual buyers of a company. Moreover, it would be available on the online marketplaces of regional online pharmaceutical distributors.
Promotion
Promotional strategies are the keys to succeed in the market as it attracts customers towards a brand (Sudariet al., 2019). Face book marketing would be used to reach the potential audiences virtually at a very low cost with effective outcomes. The offline multi-channel promotion through the medical representatives would be used to attract the tension of the doctors towards the products.
People
Duan (2021) identified that the marketing process could be better managed with effective pricing strategies. The responsible people for the selected marketing process would include the CEO of the firm, marketing manager, product quality manager, and financial advisor of the company; a new digital marketing team would be hired to improve the digital marketing process (Ravangardet al., 2020).
Process
Beg et al. (2019) opine that the process of marketing is important for the marketing of a pharmaceutical product as it is related to different challenges. The corporate stockists and authorized stores of the company would be responsible for the circulation of products and transparency in the supply chain.
Physical Evidence
The company has a presence in 40 countries of the world, along with the company registered head office in Oman (Omanpharma, 2021). Its regional offices in the different operational countries would be suited, as physical evidence. The website of the company would another medium of evidence.
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Evaluation and Control Process
Monitoring and receiving feedbacks
The controlling of global revenue can be achieved with the organizational excellence to identify the demographic segment of the customers, through which profit can be maximized.
Digital promotion would be effective channel for the improvement of marketing and promotions (Hofman-Kohlmeyer, 2017). This can be measured on a regular basis by receiving customer reviews and feedbacks online. Moreover, the objective of the company is to develop a strong brand value with customer retention (Ravangard et al., 2020). In this evaluation and control, if strategic positioning of the product is based on the availability and effectiveness of the medicines; the strategic objective can be achieved. However, there might be challenges in reaching the touch points physically, so in that case, roadmap of communication would be effective if the company involves customer relationship team for twenty-four hour service virtual on different shifts (Altawalbeh et al, 2020).
Rewards and allocation of Resources
In terms of examining and ensuring about the control mechanism process, OPP LLC administration can have a direct communication virtually with its suppliers and maintain a logistics in delegating the resources appropriately. However, the competitive pricing strategy might not be helpful to enhance sales volume of the company (Beg et al. 2019). Marketing manager and CEO of the company would directly handle customers from website and help in conversion and generate number of leads by promoting gift vouchers or combo schemes on the medicines for people from different segments mainly.
In this way, the overall evaluation and control process would be under one segregated team operating individually, for running the system flexibly and enhance performance index of the company in future.
Recommendations
OPP LLC can be recommended in respect of marketing role and functions in global environment.
- Musieket al. (2018) define that the pattern of Circadian diseases has changed in the last few years. Innovation and the research process can only help to sustain in the changing environment.
- Bharskar and Siddheshwar (2020) opine that digital marketing changes the face of marketing in the pharmaceutical industry. OPP LLC does not have a strong presence over the social media platforms like Facebook and Instagram, and other social media platforms.
- The company can work on a regional basis to design the products through market analysis. The regional performance analysis and introspection on the regional market help to develop a strong presence in the different regional markets (Baguzovaet al., 2017).
- Implementation of Big data technology for the analysis of market trends and disease patterns can improve product management (Amado et al., 2018). The company can sense the market vibe through big data technology and generate products and channelize the innovation process.
Conclusion
Quality medicines for improved global health, well-being is taken as the key deliverable at OPP LLC. However, the pharmaceutical industry has become highly competitive, as well as the increased opportunities. Sustainability in the competitive environment can be ensured with strategic moves and an improved decision-making approach. However, the company can attain its marketing objectives based on its competitive strengths. The company has a diversified presence in different parts of the world, and the company has considered the overall world market to modify the product portfolio. Moreover, a specific focus on the pricing strategy is required for improved market performance. Using the monitoring process and KPIs stated above, it would be a better scope for the sector to grow rapidly in the future so that it can achieve its set up targeted goals.
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Appendix
SWOT analysis
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Strengths
|
Weakness
|
|
Opportunities
|
Threats
|