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    Marketing Management Assignment Help


    MARKETING MANAGEMENT

    Executive summary

    In the current report, a systematic analysis has been conducted for Sanofi Pharmaceutical Company of Australia and has analysed the current marketing strategies of the company. The marketing is not oriented with any product; it also refers to the servicing standards which impact on their revenue, reputation and competitive advantage of concerned business organisation. The seven major therapeutic products are Vaccines (Sanofi Pasteur), thrombosis, oncology, internal medicines, diabetes and medicines of central nervous systems. This influences the productivity improvements of the company and it has become one of the leading healthcare production companies in Australia. Along with this, the company has a very strong history of innovation that is based on collaboration and partnership. Thus, the three major products of the Sanofi Group are the Prescription medicines, Vaccines, and Consumer Healthcare. The company has a very large history of innovation that is based on collaboration and partnership. With the help of effective marketing strategy, the Sanofi Company can receive sustainability of business, competitive advantages and retention of potential customers. Besides this, the company has a very strong history of innovation that is based on collaboration and partnership.


    1. Introduction 

    Success of any business lies in the marketing strategy of the respective company that helps to increase competitive advantage, sustainability and the most important thing, the customer outcome. Various companies have used their own and some traditional marketing strategy in order to know current market demand and future production pattern. In order to perform these planning and analysis, the marketing manager of an organisation plays the most significant role. However, this marketing also involves the sales in which a company places their products on the market and directly to the customers before other companies approach. Many aspects of market such as time, region, competitors and current trends influence on the marketing strategy that an organisation is making. On the other hand, the marketing is not oriented with any product; it also refers to the servicing standards which impact on their revenue, reputation and competitive advantage of concerned business organisation. In the current report, a systematic analysis has been conducted for Sanofi Pharmaceutical Company of Australia and has analysed the current marketing strategies of the company.

     

    2. Findings 

    Issue 1: Background of the company 

    The Sanofi Pharmaceutical Company has been founded in 2004 in Australia and New Zealand. In 2013, this company has become the fifth largest selling pharmaceutical company in the world and has become a multinational company. The operation marketing and the income is about 6.534 billion AUD in 2016 by their seven major therapeutic products such as Vaccines (Sanofi Pasteur), thrombosis, oncology, internal medicines, diabetes and medicines of central nervous systems. However, in the initial period, the company was a subsidiary of French petrochemical company and Aventis suffixed the name of the company. Along with the pharmaceutical products, the company is also providing some healthcare services to the customers and in different hospitals in Australia. The most effective product of the company is the medications of both type-1 and type-2 diabetes.

    It has been noticed that the company consists of 1000 employees and the company has a technology supporting state-of all-art excellent manufacturing facilities and laboratories inside the company (sanofi.com, 2018). This affects the productivity improvements of the company and it has become one of the leading healthcare production companies in Australia. Along with this, the company has a very strong history of innovation that is based on collaboration and partnership. Along with this, tremendous market innovation has been conducted by the company with their innovative product is Sanofi Pasteur. It increases almost 36% customers in 2013 in which the largest production was the influenza vaccine (sanofi.com, 2018). Each production is customer focussed and they have taken an approach to access-by-all healthcare facilities [Refer to appendix 1].
     
    Mission statement
    The mission of the company is to deliver the positive impact of everyday life with encouraging better health and wellbeing by their innovative production.
     
    Value statement
    Being a leading pharmaceutical company the company has recognised their responsibility and they focus on providing transparency in order to create an effective healthcare servicing company.
     
    Production
    The Sanofi Pharmaceutical Company of Australia is always promoting a market innovation and as it is a continuous process, the customer outcome is variable. According to Abe (2015, p.201), in case of a product based company the up-gradation and quality maintenance is necessary which affects the sustainability of the concerned organisation. In case of Sanofi also, there are seven major products are responsible for their huge acquisition of customers of Australia. The most significant product is the Sanofi Pasteur that provides a number of vaccines such as Influenza, Hepatitis, and others. On the other hand, another effective medication is innovated for diabetes patients. Further, in late 2007, they have innovated medications for both Diabetes-1 and diabetes-2. Along with these, the company has also promoted various medications for central nervous system, internal organs and many more (sanofi.com, 2018).

    On the contrary, another customer-focused production innovation has been conducted by the company and can be rather called a service innovation. The company has taken this collaborative approach known as Sanofi and Symbion Hospital Services (SSAVE). With the help of this project, the company has also increased their revenue up to 301000 AUD.  However, Alshurideh (2016) argued that every market or product innovation require the branding and advertisements. Thus, in case of the Sanofi Group, the branding and advertisement strategy is also very effective in propagating their business in Asia-Pacific region. They have also donated a huge amount of vaccine and other medication to the Nepal Earthquake disasters (sanofi.com, 2018). Thus, the three major three products of the Sanofi Group are the Prescription medicines, Vaccines, and Consumer Healthcare.
     

    3. Analysis

     a. Company:

    The main advantage of the company strategy is their product innovation. Since the Sanofi Pharmaceutical was a small subsidiary company of a big petrochemical production based company, they had established their business in the Asia Pacific region especially in Australia and New Zealand. According to Ascarza et al. (2018, p.65), in order to establish a company the competitive analysis should be performed. Thus, in case of this company, it has been effectively carried out. They have become fifth largest production based company on the global scale.
     
    b. Customer:
    The customer outcome of the company is the major strength that affects their revenue. According to Büyüközkan et al. (2016, p.437), increased revenue of a company provides a rapid competitive advantage and sustainability in the marketplace. It has been noticed that with the help of increased number of customer outcomes, the revenue of the company has increased up to 10.3 billion AUD in 2017. On the other hand, Chernev (2018, p.78) argued and commented that, with the help of branding and advertising strategy a company can retain and increase a huge number of potential customers. This aspect has been noticed in the company and they have contained 3.6 million potential customers in Australia.
     
    c.Collaborators:
    After propagating the business of Sanofi Pharmaceutical Group in Australia, the company has started a collaborative approach. The company has taken this collaborative approach known as Sanofi and Symbion Hospital Services (SSAVE). As opined by Huang et al. (2015, p.326), a company needs to promote various stakeholders in order to increase their revenue and lower the market risks. Kerr and Patti (2015, p.317) supported on this argument and commented that with the help of proper stakeholder management a company can eradicate the negative customer motivations and manage the risk of revenue loss.  In order to collaborate with various healthcare centres, hospitals, and medicine companies the company has developed different strategies.
     
    d.Competitors:
    However, the company is having a tremendous pressure of competitive rivalry due to the presence of a number of leading healthcare and pharmaceutical brands. Among the rival companies, the 3M Pharmaceuticals, Abbott Laboratories and Acadia Pharmaceuticals can be named who provides massive market threat to the company. According to, Maldonado et al. (2015, p.740) competitor analysis are helped to know the external environment of a company and with the help of this, the upcoming market strategies can be planned.
     
    e.Context:
    As stated by Miquel-Romero et al. (2014, p.667), the context or climate is both internal and external factors that effect on the organisational growth, customer outcome, sustainability, and innovation strategy. In case of Sanofi Company, the most significant threat is provided by the legal obligation of the Australian government on the application and trial of medicines on human beings and animals. As per the policies of Therapeutic Goods Administration (TGA), various medication companies trial their medicines on animals that has been controlled by the respective associations. This has put boundaries on the revenue of the company. 
     
     

    Issue 3: Evaluation of collection of information 

     

    The main aim of the Sanofi Pharmaceutical Company is to provide a transparency in their production and service. According to Sheth and Sisodia (2015, p.54), in order to maintain the effective customer service, a company can develop strategic planning. Vargo et al. (2015, p.63) supported and commented that among the strategic planning the most important aspect is the maintaining quality of products. The Australian Medical Council (AMC) measures each product of the company. Along with this, the Sanofi Pasteur or the vaccine products are also specially measured and quality tested by the Australian Health Practitioner Regulation Agency (AHPRA). On the other hand, the branding and collaborative strategy of the company is responsible for lowering the threat from Abbott Laboratories and increases the competitive advantages of Sanofi Pharmaceuticals. As Möller and Parvinen (2015, p.4) supported and commented that, with the help of effective branding and advertising strategies, a company can achieve superior competitive advantage and sustainability in a specific marketplace.
     
    However, in case of Sanofi Pharmaceutical company, the branding strategy is not upgraded enough to attract more customers. As commented by Moore et al. (2015, p.42), in pharmaceutical company the online service option helps their business to grow. In case of Sanofi Company, this strategy is not much effective as they only focus on the collaborative services in hospitals and healthcare sectors. On the other hand, Mullakhmetov et al. (2016, p.13) argued that the recent trend in branding is focused on the social media and websites that are effective to track and attract many customers in a wide range of place. Thus, the Sanofi Company has not been effective following the social media branding strategy that results in acquiring a huge amount of customers in a small area. This is not beneficial for any business. The main advantage of the company strategy is their product innovation.
     
    Since the Sanofi Pharmaceutical was a small subsidiary company of a big petrochemical production based company, they had established their business in the Asia Pacific region especially in Australia and New Zealand. Dominant market of the company is situated in the New South Wales and surrounding regions and some parts of New Zealand. According to Saebi and Foss (2015, p.201), the promotional strategy of a company needs to consider the global fact rather a regional fact that can increase the revenue and sustainability of a company. However, the collaborative approach has played an effective role in branding and customers outcome. Many hospitals and healthcare centres along with the physicians are associated with the Sanofi Pharmaceutical Company. They are providing the medications and wellbeing facilities to the consumers. The legislative and political factors are also influencing on business outcome of the company. Critically, it can be stated that the current political scenario is quite stagnant although the tremendous market competition affects the customer services, stakeholder's loyalty, and sustainability.
     
     

    Issue 4: Development of marketing strategy 

     

    In order to conduct a strategic marketing plan, the Sanofi Company can develop proper market segmentation. According to Vogel and Paul (2015, p.126), effective market segmentation can be done based on four aspects such as demographic, geographic, psychographic and behavioural. In case of the Sanofi Pharmaceutical Company, initially, they have only focussed on the people and healthcare sectors of Wales. Later they have segmented their market all over Australia and New Zealand. On the other hand, the demographic character is also influenced by the marketing strategy of the company. Medicine and vaccine cost of the company has estimated to cost a gross annual income of 75,000 AUD to 125,000 AUD. However, a concession of pricing has been provided to the customers whose income is below 50,000 AUD. Along with this the collaborative servicing of the Sanofi company also provide service of personal care and wellbeing to the poor income group of customers. These impacts on the productivity improvements of the company and it have become one of the leading healthcare production companies in Australia.
     
    Besides this, the company has a very strong history of innovation that is based on collaboration and partnership. Along with this, the company with their innovative product Pasteur can conduct tremendous market innovation or vaccines increase almost 28% customers in 2017 than 2016. As opined by Wagner and Eggert (2016, p.27), a company can incorporate a number of stakeholders in order to increase the revenue of the company and lower the market risks. On the other hand, the branding and collaborative strategy of the company is responsible for lowering the threat from 3M Pharmaceutical Company and increases the competitive advantages of Sanofi Pharmaceutical Company. Wirtz et al. (2016, p.36) supported and commented that, with the help of effective branding techniques and advertising strategies a company can achieve high competitive advantage and sustainability in a specific marketplace. Along with this, with the help of social media, a huge number of customers can be reached. On the contrary, Zhabin et al. (2016, p.334) argued that, in case of any B2B or B2C business model, along with the social branding, the direct promotion is also effective. Thus, in order to promote direct branding, the company can conduct direct mailing. This can be supported by 24/7 customer care and support centre in order to provide personal and general well being during an emergency.
     
     

    Issue 5: Development of tactics in marketing by 4P marketing mix analysis

    Product:
    In Australia, healthcare industry is one of the booming industries that are offering a lot of personal health and overall well-being. It has been noticed that the entire healthcare industry of Australia is achieving 4.6% annual growth annually. Among them, a major share is of Sanofi Company. By 2023, the growth of the industry will be of 137 billion AUD in Australia.  Thus, there is a huge scope for Sanofi Pharmaceutical Company to incorporate more innovation. According to Abe (2015, p.201), it is not always necessary to promote new products every day to achieve market competency, although the quality maintenance and remodelling of old products are also important. 
     
    Place:
    After measuring the location of target customer, the Sanofi Pharmaceutical Company needs to promote their business in the respective place. This is why the market segmentation is needed for any business organisation in order to research to the maximum number of customers. Place implies a particular location where a company thinks of setting its product and depends on the target market it wishes to focus on. According to Alshurideh (2016, p.382), after the market segmentation, a company should find out the method in which the marketing and advertisements are going to be conducted. Ascarza et al. (2018, p.66) supported and commented that in case of a non-web service based company the branding can be done by newspaper advertisements, leaflet or posters. On the contrary, in case of an online service company the branding can be done via websites, application, social media, mailing and many more. Like other pharmaceutical company, the Sanofi pharmaceutical company can provide 24/7 service and delivery by call in order to widen up the scope and place for
     
    marketing.  
    Price:
    The pricing should be done according to the income of target group. According to Büyüközkan et al. (2016, p.437), if any company selects only high profile consumers as their target group, the company can suffer from lack of potential customers. However, Mullakhmetov et al. (2016, p.13) argued that the pricing strategy of a company does not `mean it should be cheapest. In case of the Sanofi Pharmaceutical Company, the strategic price management refers to availability of products such as diabetes medicines, vaccines, and others at an affordable price for the common people. The company has achieved to maintain a moderate price for common people. Thus, in future the Sanofi Pharmaceutical Company needs to evaluate the market condition and promote their pricing strategy [Refer to appendix 2].  

     
    Promotion 
    Promotion is one of the main parts of marketing and sales that determines the reputation, exposure, and attention of customers. Companies have relied on social media platforms for promotional activities. This is one of the mechanisms to reach out to wider mass and maintain the competitive advantage in the market. Being the world's largest vaccine manufacturing company, the Sanofi Pharmaceutical Company receives a lot of oral promotion. However, the company needs to promote more strategic promotional management in order to lower the competitive rivalry. Numerous leading pharmaceutical companies of Australia and New Zealand are penetrating into the market and providing high rate of competitive rivalry. Thus, in order to mitigate this chance of competitive rivalry the company needs to promote social media branding, Personal Selling, PR, tele-branding and others. 
     
    Conclusion 
    Henceforth, it can be concluded that in the above scenario of marketing strategy of Sanofi Pharmaceutical Company, the marketing strategy is important. With the help of effective marketing strategy, the Sanofi Company can receive sustainability of business, competitive advantages and retention of potential customers. Besides this, the company has a very broad history of innovation that is based on collaboration and partnership. In order to conduct a strategic marketing plan, the Sanofi Company can develop proper market segmentation. In order to achieve these, the company needs to change their existing marketing strategy for lowering the threats. Lastly, it can be stated the low number of employees also affects marketing strategy and service quality that is must be incorporated into the company. Thus, with the help of this strategy, the company can develop proper market segregation and retention of potential consumers in order to sustain their business.