This unit state that the company is making plan to diversify into the Chinese market before conducting strategy firm need to understand the path where the company wish to enter.
- Conduct analysis of business environment of Abott.
- Formulate analytical skill to analyse influence of structures to an individual company.
- Provide understanding of marketing analysis within the market strategy.
Marketing strategy is referred to be an approach which assists a business into venturing into new markets and reaching out new people with products and services of an organisation (Rothaermel, 2015). It is an approach through which an organisation can attain value proposition. This assignment focuses on expansion plan which has been carried out by Abbott. It is an organisation which is known to provide instant diagnostics to various chronic disease ensuring people lead a better lifestyle.
Individual Market Report
The scenario in this report is Abbott which is a leading healthcare product supplier in the United Kingdom is planning to enter in the Chinese market through launching a diversified product range i.e. Healthcare products and nutritional supplements. The justification for the same is that on technological grounds china have been successful in attaining new heights but there is an severe decline in stature of health of people in the country which can be perceived as an opportunity for expansion. The market opportunity of china can only be exercised through forming a right marketing strategy which assures that this organisation attains success in the upcoming market. The crucial factors of the marketing plan are as follows:
The product which has been established by this mega organisation is to provide healthcare products and supplements to people in Chinese market. One of the primary reason for this is that there is ever-increasing demand for such products and services in context of China and there is absence of organisation which can capitalise upon the same opportunity. Abbott is already working in healthcare segment therefore can easily channelise its resources and efforts to create products in the mentioned segment. Considering social and cultural aspects of the country it can be said that approximately 90% of the population is educated therefore attempts to maintain a certain stature of health is maintained. It is essential to thoroughly consider culture and demographics of china so that they are supplied with right products and services. The supplement which are to be catered should be possessed with herbal essences or should be produced and manufactured organically as it conforms with Chinese ancient tradition (Top 5 Most Important Things about Doing Business in Chin, 2017). The conjunction between herbal products and western therapies are considered while looking to promote status of health which is to be capitalised in this segment.
It is considered to be price which has been charged for the offered products and services by this organisation. Before determining pricing of products and services, it is extremely crucial to consider economic circumstances of a country along with pricing strategies which has been adopted by rival organisation. The Chinese economy is experiencing a a significant growth which is a crucial factor while selecting the nation for expansion. The growth in GPD directly influences the purchasing power of consumers in a positive manner. However on the negative note there is a high inflation rate in the country which is considered while venturing into upcoming nations. There is a presence of numerous organisation such as Mindray, Shenzen and Wanda group delivering the same services therefore this organisation can hire cheaply available labour and attempt to undertake cost leadership approaches so that a base could be formed.
The promotional strategies are defined to be approaches through which people could be informed and persuaded to buy offering of this organisation. Abbott is planning to diversify its product range by manufacturing healthcare products and supplement therefore have to form right promotional strategy. It has been identified that digital marketing is preferred tool for communication and reason being over 850 million Chinese people have been connected online and emerges as a largest online community in the whole world (Lu and et. al, 2013). Abbott can make best use of online promotional tool such as search engine optimisation and social media so that more and more people are influenced with the offerings of this organisation. It is cost friendly approach to marketing when compared with traditional measures and can make severe impact on the costs of production of this mega-pharmaceutical brand. The chines platforms are relatively different from rest of the world and some of the renowned platforms are Wechat, Weibo and its video platform Youku.
It is referred to place which has been chosen for an organisation to market and ultimately deliver its products and services. It can be said that organisation who are venturing into Chinese market possess an increased chance of attaining success. The Chinese market can be referred to be one of the most attractive markets in the world as it will be easier to carry out operations in the market due to its trade agreements with European Union and the United States. Another crucial factor which helped in identification of the China as the next market for this organisation is due to market size, cheaply available labour and potential for growth for this corporation.
This segment focuses on people who help an organisation to successfully venture into new markets. The organisation is expanding its operations in the Chinese market and have to hire people belonging from that background and culture as well. The availability of cheap skilled labour is a major highlight of this economy and will be helpful to a business into successful expansion. The more number of choices will be helpful in hiring right people for the business and ultimately helping establishing right operations in the country. The competence of employees determines success of a business in the country.
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It can be concluded from the above report that it is profitable for a pharmaceutical organisation to venture into Chinese market with healthcare products and supplement. The marketing strategy is being formed with a careful consideration to external environment features leading to formation of right plan for a business to enter in Chinese market. At the end, it can be said that the conformation with marketing plan will assure that this business is able to succeed in the economy of china.