Part – B
Question No. 1
Human civilization has evolved over time but the spread of diseases never stopped, although technological advancement created the opportunity to fight back against numerous illness. By the flow of time pharmaceutical industry has managed to capture the entire picture of diversification of diseases and Apex Healthcare Sdn Bhd is one of them. So Apex Pharma has developed some marketing strategies to handover it’s lifesaving drugs to the consumers, with a reasonable price. Their research ; development (R;D) gained success over southeast Asian ; African market prominently. Apex has the ability to respond to pressures ; influences through strategic direction, for example- a new product in the new market. This pharmaceutical company’s marketing strategy can be explained by using Ansoff product market matrix.
Ansoff product market matrix is a planning model of marketing which encourage an organization to determine it’s growth strategy over product ; market. This strategy entails four quadrants such as Market Penetration, Product Development, Market Development ; Diversification to the direction of growing whether the new or existing product and market CITATION Jim03 l 1033 (Riley, 2003). Ansoff matrix is a Strategic marketing scheme that connections and association’s promoting methodology with its general strategic bearing explains by CITATION Bus07 l 1033 (BusinessDictionary.com, 2007).
Source: CITATION Bas12 l 1033 (Salem, 2012)Market Penetration
A market penetration marketing strategy is entirely about “business as usual” CITATION Jim03 l 1033 (Riley, 2003). In Ansoff matrix, market penetration is one of the growth strategies out of 4 choices. This strategy encompasses aiming on distributing the current service or commodity. This is the primary strategy most organizations can take, as a result of it carries best low quantity of risk. CITATION fre13 l 1033 (ebook, 2013). Market penetration is the main performance metric for an enterprise increase approach stemming from the Ansoff MatrixCITATION Ric07 l 1033 (Richardson, 2007). An organization may want to sell extra of it’s existing product(s) to it’s current customers, seduce competitors’ consumers, or convince non-users to start using the product, thereby growing it’s current market segment. Another successful choice is to try and become aware of new markets for its existing products CITATION UKE15 l 1033 (UKESSAYS, 2015).
Source: CITATION fre13 l 1033 (ebook, 2013)The target of penetration is to efficiently use the product, enter the market as fast as possible and grab an oversized market share. Likewise, if a business strategies to extend penetration, it’s vital to implement sure techniques ; amp; ways that may increase sales and reduce the competitors. Though, before determining to use penetration strategy it’s essential to grasp the benefits, difficulties and threats it carriesCITATION WHI15 l 1033 (White, 2015).
There are 4 tactics can adopt when executing this strategy:
Source: CITATION fre13 l 1033 (ebook, 2013)Product Development
Product development is one of the four elective development ways in the Ansoff Matrix. This development procedure requires changes in business operations, together with a research and development (R&D) feature which is required to launch to new product to existing customer CITATION fre13 l 1033 (ebook, 2013). Product Development covers the total procedure of putting up another product for sale to the public. The product can be visible (soap, medicine or something which can be touchable) or invisible (like a service, experience, believe) even though sometimes services and other processes are deigned from products. Product development needs consumer empathy regarding needs & wants, the modest environment & the behavior of the marketplace CITATION Kah12 l 1033 (Kahn, 2012).
Product development Process:
The product development process usually contains of several actions that organizations employ in the composite progression of carrying new products to the market. The production development method is expressed & broken under in many unusual activities, most of them are often include the subsequent phases/stages:
Fuzzy front-end (FFE) is the process of activities regarding things to do devoted earlier than the more configuration and well-defined requirements specification is completed. Requirements talk in imitation of such as the manufacture must do or have, at various degrees concerning specificity, in kilter according to forgather the perceived demand yet commercial enterprise need.
Product design is the improvement concerning each the high-level and detailed-level diagram about the product: who turns the as about the necessities among a unique whether it specific manufacture will forgather those requirements. This normally has the near intersection together with the engineering design process, but be able additionally include manufacturing layout or also simply aesthetic aspects of design. On the advertising then dodge side, that section ends at pre-commercialization analysis stage.
Product implementation repeatedly refers after opposite stages of manifest engineering format (e.g. refining mechanical and electrical hardware, or software, then stuff and mean production forms), as much well as much test manner so much can also stand chronic after witness so much the prototype truly meets whole graph specs to that amount were established.
Fuzzy back-end yet commercialization phase characterize the employment steps the place the production then market originate happen.
The front-end marketing segments have been absolutely well researched, together with treasured models proposed. Peter Koen et al. (2006) affords a 5 phase direct movement referred to as front-end origination, those are- possibility identifícation, opportuníty investigation, notion genesís, concept selectíon, then thought & high-tech development. An apparatus among the center over the five front-end levels or the feasible backyard limitations to that amount can impact the process outcome, which he added. The process represents the management riding the things to do labelled. The look cease on the innovation is the best region regarding weak spot between the new product development methods. The prime reason of this characteristic behavior is that FFE often represent impulsive, shapeless & chaotic environment.
Source: CITATION fre13 l 1033 (ebook, 2013)As part of an effectíve product development strategy it requires to have a better gratitude of a new emphasis located on marketing CITATION fre13 l 1033 (ebook, 2013).
In Ansoff Matrix, market development is one of the 4 choice which describe growth strategies. A market development strategy involves promoting a contemporary merchandise through new market segment. There are a variety of methods so that strategy can be achieved CITATION fre13 l 1033 (ebook, 2013).
Source: CITATION fre13 l 1033 (ebook, 2013)Market development is a system that recognizes & grows new market sections for present items. A market development procedure targets non-purchasing consumer in at present focused on portions. It additionally targets new buyer in new segments.
It is a business technique to enter another manufacturing industry or marketplace in which the organization does not explore before, while additionally producing alternative commodity for new market segment. This is the most unsafe segment of the Ansoff matrix, as the business has no involvement in the new market and does not know whether the item will be effective (Ansoff, 1957). Likewise, the new skills are required for both regarding marketing and operations frequently require considerable speculation. This is generally executed by obtaining an organization operate in the new market CITATION fre13 l 1033 (ebook, 2013).
The techniques of diversification do consist of the intimate progress over current products or marketplaces, achievement of a firm, alliance including a complementary corporation, licensing regarding recent technologies, yet distributing then importing a products rank built by other firm.
Source: CITATION fre13 l 1033 (ebook, 2013)Application of the Ansoff matrix for Apex Healthcare Sdn Bhd
Apex Healthcare Sdn Bhd can develop by 1 of the 4 strategies that explained earlier:
Source: CITATION Ape10 l 1033 (Apex Pharma, 2010)Market Penetration
If Apex Pharma wants to focus only on market penetration then they can increase the usages of existing product in existing market. The company was successfully utilizes market penetration by bringing new customers, switchers from other brands & widening of market CITATION Ape101 l 1033 (Apex Pharma, 2010).
According to Apex Pharma’s website. The introduction of Salico was the limelight success to the local market which was a new product to the existing market. The company develop new product for current market by thinking how the commodity can satisfy consumer necessity with accuracy CITATION Ape101 l 1033 (Apex Pharma, 2010).
This consider as a risk taking process, where the evaluated company developed Agnesia antibacterial Powder to Agnesia antibacterial shower cream. That means the strategy is trying to find a new group of buyers for the current product with a modification CITATION Ape101 l 1033 (Apex Pharma, 2010).
This is the most risk taking process in Ansoff matrix because this process consider new product in new market CITATION Oak15 l 1033 (Oakley, 2015).
Apex Healthcare Sdn Bhd launched Smart Athlete Sunscreen Spray for a new market segment of athlete or sportsman groups CITATION Ape101 l 1033 (Apex Pharma, 2010).
It is obvious using Ansoff Matrix ís the progressive raise in risk offered by the 5 ways, because if the growing price with every step far side penetration ; uncertainty of conducting in new industry. It can be said, the selection of particular strategy can be fragile where innumerable circumstances offering several benefits to organizations.
Question No. 2
Profit making organizations always look forward to maximize its profit, which is stated in their vision, mission, objectives and goals. In another word they wants to grow business. So some strategy of growth come to spotlight to determine the business growth.
Mergers and Acquisition
Joint Development/ Strategic Alliances
CITATION Ape10 l 1033 (Apex Pharma, 2010); http://www.apexpharma.com.my/sales-marketing/
CITATION Jim03 l 1033 (Riley, 2003); https://www.tutor2u.net/business/reference/ansoffs-matrix
CITATION Bas12 l 1033 (Salem, 2012); https://bassemsalem.blogspot.com/2012/03/ansoff-matrix-and-its-application-for.html
CITATION fre13 l 1033 (ebook, 2013); http://www.free-management-ebooks.com/faqst/ansoff-02.htm
CITATION UKE15 l 1033 (UKESSAYS, 2015); https://www.ukessays.com/essays/marketing/case-study-johnson-johnson-marketing-essay.php#citethis
CITATION Ric07 l 1033 (Richardson, 2007); Strategy in Action Applying Ansoff’s Matrix. Manager: British Journal of Administrative Management, (59), i-iii.
CITATION WHI15 l 1033 (White, 2015); http://inevitablesteps.com/marketing/market-penetration-strategy/
CITATION Bus07 l 1033 (BusinessDictionary.com, 2007); http://www.businessdictionary.com/definition/Ansoff-matrix.html
Kahn, Kenneth B. (2012). The PDMA handbook of new product development (3 ed.). Hoboken, New Jersey: John Wiley & Sons Inc.
Koen, Peter A. (2006); “The fuzzy front-end for incremental, breakthrough and platform products and services”. Consortium for corporate entrepreneurship. Retrieved February 5, 2017.
Ansoff (1957), I.: Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124
CITATION Oak15 l 1033 (Oakley, 2015); https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/