The expanding force of competition in global markets is a test confronting organizations at all phases of involvement in global markets. As emerging markets open up, and turn out to be more incorporated, the rate at which change occurs in the market is spontaneous, technology reduces the scale favorable circumstances of huge firms, new competitions emerge, and the pressure of competition mount at all levels of the organization.
Superdrugs intends to expand its business, products and services to selected business environment in India. This plan will try to generate a reasonable increase in organization sales and benefits from products manufactured and sold to the Indian market, contrasted to the previous year. This plan is focused on targeted gross margin and sales revenue. This can only be achieved through a proactive way of dealing with nomination of clients, collaborating with technology suppliers, and also collaborating with reputable local and regional suppliers of resources, rival companies to reduce competition, enhance valuing, and reduce risk.
Superdrugs’ goals are to make an equivalent and reasonable benefit in the business-to-business (B2B) and business-to-consumer (B2C) marketing industry and also to ensure we provide products that will promote and enhance the drug market.
Superdrugs offers organizations, government institutions, NGOs and individuals, high end and cost friendly products for different purposes. We offer products in the health and beauty niche. The situation in India is presently characterized by the facts that times are not favorable, the desire to invest is low, organizations are cutting expenses, and there is drastic reduction in company budgets. Completely mindful of this circumstance, Superdrugs, in the wake of finishing a three year research, has arrived at the conclusion that its intended customers would be keen on doing things smartly, with great backing of a dependable and effective market knowledge. Superdrugs believes that it can deliver both value products and solutions to its customers. Superdrugs have been working with some reputable European, Asian and American based organizations for over 10 years, and as such have broad knowledge of business environment, strategies and standards.
Keys to Success
Superdrugs is focused mainly on two main factors for success. They are Internal and External Factors.
External (Business Environment) Factors
India is currently living in a fascinating era: the change from the "old economy" to the "global new economy" brings a huge growth to e-trade, mobility of capital, and liberalization to the area. Since the new global economy brings new financial aspects, new structures, emerging industries, and new organization structures, the profile of clients has likewise changed. Clients have developed into demanding for value rather than solutions and from "customers" to "business partners". Superdrugs is proactively centered on setting up relationships with numerous organizations, government establishments, regional government institutions, NGOs, and individual clients as its planned business partners.
The organization feels that it controls its own particular accomplishment through some essential internal components. These are:
Selling Power: The products the organization offer are made cost effective keeping in mind the end goal to keep up a specific rate of B2B and B2C customers. Being a drug manufacturing firm, Superdrugs exhibits a fruitful approach in changing over its reputation into an incredible brand to guarantee the conversion of its customers' knowledge into their intellectual property, hence creating value for its customers. Outstanding product delivery and consumer loyalty: Every product the organization offers is high quality; hence, the products need to do what the clients need, and do it well. Long term consumer loyalty is important for the survival of the organization. Provide numerous opportunities from a solitary line of expertise: Superdrugs can exploit a solitary line of know-how and convert it to various income generation opportunities: right from the manufacturing of their products to feasibility budget studies, industry analysis, and market intelligence and development in the Indian market .
Industry Analysis: SWOT / PESTLE Analysis
Supporters of standardization state that there is a similarity in environmental and client demands for cultures that are united. They contend that exchange barriers are getting lower and that innovative advances and firms are showing a worldwide orientation into their techniques. For this school of thought, creating one technique for the global market and standardizing the elements of the market mix can accomplish consistency with clients and in addition lower costs. Levitt (1983) contends that organizations that are well managed have moved far from customizing things to offering all inclusive standardized items that are useful, dependable and cost friendly. As indicated by him, organizations can make long term progress by focusing on what everybody needs as opposed to stressing over the particular individual desires.
While supporters of the global adaptation approach, accentuate the significance of customization. The essential premise of the adaptation school, is that when entering an international market one must consider all factors, for example, language, environment, race, occupations, taste, distinctive laws, societies, and social orders (Czinkota and Ronkainen, 1998). Be that as it may, scientists have distinguished vital sources of constraints that are hard to quantify, for example, social contrasts, religion, qualities and traditions, and in addition contrasts in taste, needs, financial aspects and legal frameworks. As indicated by Vrontis and Thrassou, supporters of this school of thought trust that multinational organizations ought to discover how they should conform a whole marketing strategy and, including how they sell and distribute it, so as to fit new market needs. It is vital to change the marketing strategy and marketing mix to suit local tastes, meet certain market demands and consumers different request.
Superdrugs has a one of a kind product offering that appeals to a substantial client base. The organization will focus on large organization partnerships since they give the greatest benefit potential. Superdrugs has close and compelling relations with its end-users, sellers (suppliers and sub-contractual workers), and even rivals. Superdrugs offers unparalleled quality as well as a cost friendly plan for the products offered and with numerous competitive advantage. Our seasoned management is fit for various services, for example, consultant services to hospitals, schools; aids and relief support to villages and many more. We offer this range of services to anybody from large firms to a home-based entrepreneur; government hospitals and facilities; customers can simply depend on speedy; exact requested service from the organization.
Superdrugs’ strategy concentrates first on maintaining the personality of the top of the line buyers who acknowledges quality products and services, but at the same time is exceptionally demanding as regards value creation. As a part of its "individual sales strategy," to guarantee ideal customer satisfaction, Superdrugs customizes its products and services for every particular customer. This methodology is called "individual sales strategy" since customization allows customers to take part in creating precisely what they need. Even when a business offers a standardized product or service, it is not making a standard deal. The client can pick a customized offering mix of elements, for example, the benefits of optional services, delivery conditions, financing options, deals help alternatives, and so on.
The strengths of Superdrugs
They range from factors, which include, client demands to the absence of competition in the external environment. The technical know-how, capabilities, and many more qualifications of the consultants will all be important to be included in the company's strength. Superdrugs has a large customer base with some top notch organizations cutting across Europe and America. Solid business relations and customer driven techniques by Superdrugs will help us in creating industry based, sustainable value for their partners. Superdrugs is continually looking towards enhancing its abilities, employing better and more skilled labor, thereby fulfilling their promise to the end users. Superdrugs has a great deal of experience and the ability behind it to complete things. Consequently, it has turned into the "specialists" across various industries.
However, there are potential weakness to be considered.
Superdrugs has various units cooperatively working with the customers and with each other and a planned move to delve into the Indian business market. This may prompt conflicts if we lack internal coordination. Due to the fact that its business is in medical and health consulting and drug sales, which forms a major part of its income, it can be risky for the organization in the long run since running such a large operation requires, to the point that the firm be prepared for awful budgetary days.
There are many opportunities to be enjoyed in extending the company’s products to Indian
By focusing on governments and the health sectors of the targeted countries, exploiting other emerging economies (Market advancement), and Superdrugs can build its income significantly more. Extending to India may give us room to acquire some other firms who are as of now established in India. Such acquisitions can increase the analytic strength of Superdrugs and helping in its expansion. Superdrugs may likely diversify into other areas based on the social qualities and assets of its host environment which will likewise increase organization income. Likewise, this diversification will be a cushion during difficult financial times.
There are however some threats to be considered
There is bound to be tough competition from rival companies that are also well rooted in drug manufacturing and sales. This is an area of concern for the company. If there is ever a financial downturn, it will be intense for the organization due to over dependability on premium customers. The very large customers will always be the main ones to be affected gravely by the financial downturn. Hence, the income drive to Superdrugs will drop gravely.
A competitive analysis permits you to identify your competitors and assess their individual strengths and weaknesses. By knowing the activities of your competitors, you will have a superior understanding of the services you ought to render; how you can market them adequately; and how you can position your business. Competitive analysis is a continuous process. You ought to always gather information about your competitors. Converse with your clients to perceive how they feel about competitive services.
Each business has its own competition, and you have to discern who your clients can approach to get a service rendered to them. Regardless of the possibility that your product is really innovative, you have to consider what else your clients would buy to perform this task.
After you've made sense of who your competitors are, determine their strengths and discover what their weaknesses are. Why do clients purchase from them. Is it cost? Value? Comfort? Reputation? Focus more on perceived strengths and weaknesses as you do on real ones. This is on the grounds that client observation may really be more imperative than reality.
Strengths and weaknesses are frequently classified under an organization's control. Be that as it may, when studying your competition, you likewise need to look at how well prepared they are to manage variables outside their control. These are called opportunities and threats. Opportunities and threats fall into an extensive variety of classifications. It may be technological improvements, regulatory or lawful activity, economic variables, or even a conceivable new competitor.
When you get to know what your competitors' strengths and weaknesses are, you have to figure out where to position your organization vis a vis the competitors. Some of this might be clear from the results of your analysis, yet it likewise pays to investigate at how you operate your business. One of the best approaches to do this is to make a strengths/weaknesses opportunities/threats analysis of your business.
Porter's diamond is a model utilized as part for the analysis stage of the planning process. Porter proposed that there are four primary components which decide national competitive advantage and showed them in a diamond form.
Ideal factor conditions include:
(i) Physical assets, for example, area, minerals and climate
(iii) Human assets, for example, skills, cost and industry relations
(iv) Knowledge that can be utilized successfully
Porter likewise found that nations with factor disadvantages were compelled to innovate in order to beat these issues, e.g. Japanese firms experienced high energy costs and were compelled to create energy effective products and procedures that were later requested around the world.
There must be a solid home market demand for the products.
This determines how commercial enterprises see and react to customer needs and creates the pressure to innovate. A consistent domestic market is a disadvantage because it doesn't drive the industry to be innovative.
Related and supporting industries
The landmarks made by an industry can be because of its suppliers and related industries.
Firm strategy, structure and competition
The objectives of an organization can be dictated by ownership structure. Unquoted organizations may have somewhat more time to work in light of the fact that their monetary performance is subject to substantially less scrutiny than quoted organizations. They may likewise have distinctive 'profit for capital' requirements.
Porter found that domestic competition was imperative as a spur to innovation furthermore improved global competitive advantage. Then again, where governments have urged mergers to get the minimum amount required to be a global player, these national monopolies have not, in general, been effective in setting up a global position.
Mode of Entry
There are five strategies utilized by firms for entry into new international market.
- Technical innovation strategy
- Product adaptation strategy
- Availability and security strategy
- Low price strategy
- Total adaptation and conformity strategy
Typical methods for growing the markets are by extension of product line, geographical development or both. Note that the more the product line and/or the geographic area is extended, the more will be the managerial complexity. New market opportunities might be made accessible by expansion yet the dangers may exceed the benefits, actually it might be ideal to focus on a couple of geographic zones and do things well. I would prescribe the method of entry we pick is by exporting or licensing on the grounds that they have the most reduced risks and its advantages is considerably more than it disadvantages. Based on management decision and careful evaluation of this plan, a decision should be taken on what will be the best mode of entry. Exporting is the most conventional type of operating in international markets. Exporting can be said to be the marketing and sales of products manufactured in one country into another. Whilst no manufacturing plant is required, huge investment in marketing are required. The tendency might be not to get as much information in manufacturing as compared to marketing information; hence, there is the need to put in place a detailed marketing strategy.
The benefits of exporting are:
- Manufacturing is home based hence, it is less hazardous than manufacturing abroad
- Gives a chance to "learn" foreign markets before committing resources
- Decreases the potential dangers of working abroad.
- In addition there is no real investment should in case the product fails to gain ground in the foreign market, then it is easy to withdraw our products from the market.
One of the disadvantages is that one can be at the mercy of foreign agents thus the absence of control must be weighed against the advantages. We also will need to expertly deal with trade barriers and high cost of transportation.
A distinction must be drawn between passive and aggressive exporting. A passive exporter anticipates orders or comes across them by chance; an aggressive exporter creates marketing strategies which gives a clear picture of what the firm plans to do in the international market. Firms who are aggressive have clearly defined strategies, including product, price, promotion, distribution and researches. Being passive or an aggressive exporter depends solely on the motive to export. Consequently we must be aggressive with our marketing strategies, also ensuring that we put in place marketing strategies that will hit the ground running once deployed.
Licensing is another generally safe strategy for entering an international market. It is the fastest approach to begin a business on a foreign soil, since the license is from the foreign market. In this system, the licensee is allowed the privilege to utilize manufacturing process, patent design or some other company-specific information to manufacture their product. Consequently, Superdrugs would get a fee or royalty from the licensee. However, there are some disadvantages to licensing. Superdrugs would need to keep control over the licensee's activities to guarantee the quality of their products. For us to ensure our products remain the same, Superdrugs would need to supply the licensee with the same ingredients daily. Another concern toward Superdrug would be that the licensee could take the ingredients and attempt to market the products themselves. The licensee could turn into Superdrugs' greatest competition sometime in the future. Since Superdrugs does not have a solid physical presence in the licensee's nation, it will be very easy to lose control of the operation. Consistent monitoring and organization visits must be executed to ensure steady collaboration. Superdrugs should bear in mind that the absence of control is a very important reason not to consider licensing.
Marketing Mix Decision
The marketing mix is fundamental to the decisions we make in marketing. They shape all marketing activities. The marketing mix as propounded by McCarthy is product, price, place and promotion.
Must meet client demands, whatever it may be.
Around one fifth of the cost of a product is spent getting it to end users. Obviously, the real figure differs broadly from product to product however, distributing products to end users is very important in the mix. Different companies use diverse ways to get to their clients.
This is the process of communicating with clients. For the purpose of marketing, communications of products and services adds to the persuasion procedure to urge customers to benefit themselves of whatever product is on offer.
Should be pertinent to the product/service and the market. For instance, BIC the maker of razors, pens and lighters tries to give the world's market products at moderate prices. A company's pricing strategy is frequently aimed at drawing a particular market segment.
Aside from the marketing mix, there are other imperative factors which a marketer trying to delve into other markets ought to prioritize in order to accomplish his goal. They are but are not limited to culture, channels of distribution, currency, control and coordination.
I will recommend that we use a fair share of all the marketing mix. Pricing however, should be adopted more.
- Anderson, R. E. (1973): Consumer Dissatisfaction: The Effect of Disconfirmed Expectancy on Perceived Product Performance (Journal of Marketing Research) P. 38-44.
- Ang, Z., & Massingham, P. (2007). National culture and the standardization versus adaptation of knowledge management. Journal of Knowledge Management, 11(2), 5-21. doi: 10.1108/13673270710738889
- Ansoff, H. I. (1968): Corporate Strategy (Harmondsworth: Penguin Books).
- Barney, J. B. (1996). Gaining and sustaining competitive advantage. New York: Addison-Wesley.
- Cavusgil, S. T., Zou, S., & Naidu, G. M. (1993). Product and promotion adaptation in export ventures: an empirical investigation. Journal of International Business Studies, 24(3), 479-506. doi: 10.1057/palgrave.jibs.8490242
- Engel, J. F. and Blackwell, R. D. (1982): Consumer Behaviour (Chicago Dryden Press).
- Frank, J. (1973): Advertising Made Simple (London: Butter and Tuner Ltd).
- Foley, J. (1999), The Global Entrepreneur: taking your business international Age, Dearborn, ISBN 1-57410-124-2