Comparing Product Sustainability
An organisation is required to devise marketing strategies for gaining prominence over a market. In order to devise appropriate marketing strategies, market research need to be conducted by the marketer. It helps a company to identify their target market and their trends. In this study, an attempt has been made to conduct a market study of CSL. CSL is a reputed biomedical organisation. It is flourishing as one of the major biomedical companies. It has adopted some marketing strategies that are used for gain huge market shares. The company has adopted affordable pricing for controlling over their target market. Generally, the CSL innovates, develops, manufactures and sells biomedical medicines for treating the rare and critical diseases. The target audience of this company is trying to segment their market based on income groups. The company produces biomedical medical and therapeutic products, in order to treat the individuals with rare diseases. Individuals with all financial background can afford the medicines, manufactured by CSL. This study will going to discuss the marketing mix of CSL. It will also explain the pricing strategies adopted by this company. An attempt has been made to understand the promotional strategies used by the company for selling their cars. This study will also try to identify the distribution channels for their firm. The study also provides a list of recommendation
A company is required to position its brand so that it can reach to a wide range of customers. In order to position products, it is important to devise marketing strategies that helps in grabbing the attention of their potential customers. This study is going to shed light on the marketing strategies used by CSL. CSL is one of the biotherapeutics specialist companies, which offers development and delivery of various therapeutics approaches, to the individuals, in order to enhance the life of individuals. The background of the company has been discussed in this study. There is an attempt made to undertake a comparison between the product, price and sustainability. This study will also try to compare the position of CSL with that of its rival companies.
Marketing background of CSL
CSL is the biotechnology company, which deals with development, processing, manufacturing and delivering the therapeutic products, to the market, in order to treat the critical diseases and condition of the individuals. CSL focuses on the fulfilling the human needs, by developing innovative therapies, using new technologies, which are used to treat the serious diseases. The mission of CSL is to save the life of individuals, who are suffering from rare and serious diseases, by using the biotechnology products.
CSL is considered under, the Asia’s top 50 organization of innovation and biotechnological manufacturer company. It has been found that during 1963, CSL has grounded a strong market position in the market of biotechnological products. With its unique feature of manufacturing and development of biotechnological products, in order to treat the serious diseases, CSL gained a strong brand image. The market capital of CSL is $43.9 Billion, with the sale of $6.4B.
(Source: CSL Behring, 2017)
The businesses of the company are operated in two different segments: CSL Behring and bioCSL. CSL plasma of the business operates, in order to provide the products of plasma-derived and recombinant, which are operated through different plasma collection networks.
On the other hand, the bioCSL manufactures and markets the concerned biotechnological products, such as, vaccines, antivenoms and other pharmaceutical products, in Australia, New Zealand and other markets, at a global perspective. Due to the high quality and efficient products the organization has gained loyal customers and thus earns a high revenue generation. As the company solely helps the individual to deal with the critical diseases, thus, this kind of social works have definitely help the company to strengthen their customer base. The CSR activities help a company to form strong bonds with their customers (Adams et al. 2016, p.200). The company has wealthy and loyal customers.
Comparing product and its sustainability
CSL is known for its medical and therapeutic products, which are not made from the chemicals, like other medical products. Due to bio-derived chemical products, it gains a high numbers of customers. As the biotherapy products are manufactured from the human plasma or their recombines, thus it has fewer side effects, in comparison to the therapeutic products, made by the use of chemicals. It sells a wide range of bio-therapeutic innovative products that includes, in order treating and rare diseases, such as, immunodeficiency and autoimmune diseases, bleeding disorders, hereditarily diseases, like, angioedema and emphysema, with reference to the transplantation and critical care (CSL Behring, 2017). The owner of the company believes that safety is their first priority. The therapeutic products are made based on the safety of the individuals, with proper testing of the products, before marketing them.
The products of CSL are made from the biotherapy products, which helps the individuals to enhance their life, in terms of minimizing the risk of their life from the critical diseases. The CSL Behring segment of CSL focuses on the delivery of quality products, in protein biotherapeutics industry. CSL researches, innovates and implements their needs and demands of customers and consumers, which helps them to gain a high customer loyalty and customer satisfaction. The unique features in the company on medicine have helped them to stay ahead of their competitors. Its competitors are focusing on either legacy or durability whereas CSL emphasizes on both. The products of CSL have a sleek exterior and they put more emphasis on the quality of medicines. The company is intended to adopt new and innovative technologies that are able to fulfill the future needs, in terms of manufacturing of therapeutic products (CSL Behring, 2017). CSL incorporates with the corporate social responsibility, which have helped them to gain a positive and strong image socially. In the view of Eshuis et al. (2014, p.420), incorporation and implementation of corporate social responsibility in the organization can help them to gain the advantage of having strong image , as the corporate social responsibility helps the organization to deliver the activities, for social and environmental well-being.
The corporate social responsibility of the CSL focuses on the areas of innovation, patients, local communities, marketplace operating responsibility, offering positive working environment for people, supporting biomedical and others. Implementation of Corporate social responsibility in CSL helped them to incorporate with social and environmental well-being, with high customer satisfaction and brand loyalty.
With the high demand from customers, the CSL has gained a high revenue generation, with gaining customer loyalty.
(Source: CSL Group Global, 2017)
CSL has a worldwide market ranging from China, Germany, Switzerland, Australia, New Zealand, Hong Kong, Malaysia, Singapore, Taiwan and the United States. The above data indicates the fact that the company has considerably increased their production, with reference to the meeting the demands and needs of customers. The global suppliers of this company help in contributing to its value, innovation and quality (Ashley and Tuten, 2015, p.16).
(Source: CSL Group Global, 2017)
In order to maintain sustainability, the company has collaborated with human rights commission and with social and labour standards. They aim at collaborating with their suppliers based on mutual understanding, competitive process, quality and innovation. Moreover, the company considers the legal and ethical consideration in their organization, with an aim to maintain the authenticity of organization.
Comparing Product Sustainability
Price and sustainability
The CSL is known for its quality and sustainable products, in the biotherapeutics industry. It has gained large-scale customers and has earned brand loyalty. Forbes has considered CSL Company as the leading company in the biomedical market. In order to promote their therapeutic products, the company often participates in social services, with offering care medicines to the local communities and individuals, with serious and critical diseases. CSL approaches the four Ps of marketing mix, in order to place their strategy, in a proper manner. The four Ps of marketing mix for CSL are as follows:
Product: The Company produces biomedical and therapeutic medical products, for the rare and serious diseases. The major feature, which stands the CSL, out from the other biomedical industry, is the use of biological products, in their medicines and the medicines for rare and serious diseases (Davari and Strutton, 2014 p.564). CSL provides the different varieties of product, with high quality biological ingredients, which helps them to gain customer satisfaction and loyalty.
Price: As the CSL, aims to provide the biomedical medicines to the individuals, suffering from the critical and serious diseases, thus, the CSL, offers their medicines at an affordable price. As commented by Helm and Gritsch (2014, p.37), offering the low and affordable price to the individuals, can help the organization to gain customers from all financial background, with reference to high customer satisfaction. CSL provides low lost priced medicines, in order to gain high customer satisfaction. Moreover, the low and affordable price of the products attracts more number of customers, thus helping the organizations, to earn high revenue and sale, with reference to high customer loyalty.
The pricing strategy of the CSL is considered low, with keeping the poor community individuals in their mind, as a strategy. The company uses advanced technology, in order to deliver quality medicines to the individuals. CSL has launched different advanced biomedical medicines, in order to enhance the life of individual’s, facing critical diseases (CSL Group Global, 2017).
Promotion: In order to promote their products, the company is taking help of both mass as well as print media. They are promoting their cars through attractive commercial advertisements. CSL is using the online promotional medium, which helped them to reach to maximum numbers of customers, and thus helped them to gain more customers from different demographical areas.
Place: the company has authorized physical stores and the biomedical medicines are sold directly from stores, situated in different places.
It is difficult for a company to devise pricing strategies. It is often found that higher prices lower demand and so a company is required to set up a price that appeals to the customer. Generally, companies do not adopt a single price strategy for their instead they adopt a varied pricing strategies for their products (Eshuis et al. 2014, p.420). Pricing strategies are of different kinds such as geographical pricing, promotional pricing, product mix pricing and discriminatory pricing.
Pricing strategies are regarded as an important part of marketing positioning. The company adjusts their prices in accordance with their brands. The CSL has adopted sustainability in pricing by manufacturing biomedical medicines starting with an affordable price.
Promotion and sustainability
The CSL is using a wide range of sources for communicating with their potential customers. These include sales promotion, public relation, and advertising and print advertising. The company is making use of direct marketing for reaching to their target markets. The marketing message of this company is to emphasis on digitalization of biomedical product services. The advertisements of biomedical products of the CSL helped them to generate awareness about their products, which helped the customers and individuals to have knowledge on different medicines and medical services, provided by CSL. Moreover, the advertisements, by the CSL helped them, to gain customer retention, I n the market of biomedical industry.
Apart from advertisements, the company is also using sales promotion methods. Sales promotion methods aim at providing biomedical products at discounted rates and with offers. The sales promotion of CSL helped them to gain high numbers of customers. Discounted prices on the products and services, of an organization or business helps them to attract the customer, at a high rate, and thus helps to increase the sales and revenue (Helm and Gritsch, 2014, p.35). CSL is using sales promotion as an integral part of their marketing strategy. The company organizes seasonal campaigns for sales promotion. They are also promoting their brands by participating in loyalty programs. CSL organized campaign programs, where the poor financial background individuals are provided with medicines, at a low rate. The strategy is helping the company to gain customer satisfaction. The company is playing an effective role towards maintaining sustainability by manufacturing quality products of biomedical with considering social and environmental well-being.
CSL uses their website, as a medium of dissemination of their information to the customers and consumers. The customers through their website can access all the concerned information and data on CSL Company. The information and user of product description can also be accessed through the official website of CSL. The company is using their promotional strategies effectively in order to grab the attention of their customers (CSL Group Global, 2017).
Place/distribution and sustainability
CSL has flourished as a major company in the biomedical industry. The company has adopted a number of distribution channels for promoting their products. A company is required to manage their value and supply chains for managing their distribution channels. Distribution channels helps in ensuring success of a company in connecting with their customers (Lee and Kotler, 2015, p.5). The company is trying to adopt central stocking rather than shipping their medicines. Its benefit is that they are getting a scope to have a lower floor plan, higher customer orientation and better grosses.
(Source: Created by learner)
The distribution plan helps the company to give a wide range of dealers. Central stocking will help in reducing discounts on dealers. Market intermediaries of forms an essential part of products distribution channel. The market intermediaries of CSL include retailers and distributors. The company is able to manage their supply chains with the help of their distributors. The company has successfully managed their distribution channels with the help of intermediaries. The firm has managed to achieve sustainable distribution by managing their supply chains in an effective manner (Magnusson et al. 2013, p.45).
Comparison with the rivals
The CSL have a number of rivals but among them Life Therapeutics proves to be its biggest rival. Although the company has maintained its position in the biomedical industry, still it requires holding its place in order to compete with its rival Life Therapeutics. Life Therapeutics is known for its sustainable products. The medicines that are produced by the rival company are using technologies that help in reducing harmful side effects. This is the reason for the company to increase their customer base. Recently the tagline of Life Therapeutics puts emphasis on building honesty as well as increasing trustworthiness of the company. The company is delivering the services of biomedical medicines. In this respect, it can be said that CSL have an advantage over its rival. This is because CSL innovates and manufactures varieties of biomedical products, for treating the rare and critical diseases, which cannot be found in any other rivals, such as, Peptech and Pharmasynth. The Life Therapeutics medicines have faced problems regarding their product failure. This has resulted in low brand image of the company. This can be used as an advantage for CSL. Still Life Therapeutics remains one of the best selling brands due to their use of product for minimizing the risk of side effects. In comparison to CSL, Life Therapeutics has low dealerships. Like CSL, Life Therapeutics too has a worldwide production (Mullin et al. 2014, p.10). They are able to maintain their market with the help of exclusive dealership. On the other hand, CSL has tried to gain a wider market. Life Therapeutics is promoting their products through advertising commercials. They are making use of advertisements for promoting their medicines. The company also takes help from magazines as well as billboards for their promotion. On the contrary, CSL only makes use of TV commercials and the official website for attracting their customers. Life Therapeutics is launching their new products through social media advertising, which are helping them to gain high brand loyalty. Unlike CSL, they are not that much associated with participating in public works. The pricing strategy adopted by Life Therapeutics is skimming (Risselada et al. 2014, p.16). In compare to CSL, Life Therapeutics has high pricing. CSL adopts an affordable pricing strategy, in order to attract the customers. On the other hand, Life Therapeutics does not have an affordable pricing. There lies the advantage of CSL over Life Therapeutics. It can be said that both CSL and Life Therapeutics has a strong competition. Life Therapeutics is required to participate in the event so that they are able to promote their cars. The social works performed by CSL gives them an extra advantage over Life Therapeutics (Tsimonis and Dimitriadis, 2014, p.329). However, Life Therapeutics has been able to hold the market, at a global level, with their flexible pricing strategies. On the other hand, affordable pricing poses an opportunity to CSL in holding market of developing countries. Therefore, it can be assumed that CSL can have a tough competition with Life Therapeutics in the future years.
After going through the above mentioned study, the following recommendations can be explained below:
Advertising: with the increasing competition in the marketplace of biomedical industry, CSL needs to enhance their promotional activities and strategies. Implementing proper strategy in their organization can help CSL to gain high numbers of customers from different regions and thus to increase their sale. The CSL can implement the online advertising through social media and on different website pages, in order to gain high competitive advantages and customer retention.
Online Shopping: As with the continuous development of the countries, at a global level, the digitalization has taken a major place. Thus, in order to gain the trendiness strategy and sustain in the current market trend, the CSL needs to sell their products through their online website. Implementing online shopping strategy in the organization can help them to gain more numbers of customers, at a global level. Moreover, the online shopping approach can help them to reach to large numbers of customers, at a single time.
The study gave an overview of the marketing environment of CSL group. It is useful for understanding the strategies that are used by the company for improving their sales. It can be said that an organisation is required to adopt appropriate strategies for gaining prominence over the market. Studies have shown that a company that uses quality products is able to gain more market share. This is because customers like to buy products that are qualitative. It seems that CSL is able to hold market share due to their promotional activities and strategies. Development of their promotional strategies can help them to gain customer retention at high rate and thus can help them to be in present market trend. Their launching of manufacturing and developing the biomedical medicines, can help CSL to gain advantage of delivering care medicines for the required individuals.
CSL needs to change and develop their marketing distribution channels. Approaching and implementing the distribution channel of online shopping, apart from the physical stores can help to gain customer satisfaction and brand loyalty, as the individuals, do not have to go to their physical place, in order to buy the products. Approach of online shopping can help the customer of CSL to access the products easily, through online technique and thus can help to increase brand loyalty for the CSL.
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