Marketing Concept And Segmentation In Practice Essay Example

Marketing Concept And Segmentation In Practice Essay The success of business in small and large organizations is based on the ability to build a growing body of satisfied customers. Enterpreneurs must focus their efforts on indentifying, satisfying and follow up on the customers needs. Marketing emphasize what the customer wants. * Marketing as a definition We will write a custom essay sample on Marketing Concept And Segmentation In Practice specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Marketing Concept And Segmentation In Practice specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Marketing Concept And Segmentation In Practice specifically for you FOR ONLY $16.38 $13.9/page Hire Writer 1. Indentify the wants and needs of the customers and coordinaretly create products to satisfy these needs profitably and efficiently. 2. The process of planning and executing the conception, pricing, promotion, place (distribution), ideas, goals and services to create exchanges that satisfy objectives. Through this assignment I will examine the implications of different marketing concept elements in one of the fast growing national drug companies in UAE that is J.D.S [ Julphur Drug Stores]. Executive Summary: J.D.S Or Julphur drug store is a fast growing national drug company which has a lot of activities in UAE Market, mainly manufacturing and selling different types of drugs in national and internation market. A study on the J.D.S Marketing Practice was done through this assigment on one of the J.D.S strategic products that is Julmentine. J.D.S has made a great effort in collecting information about competitors by dealing with a reasearch company and other ways mentioned through this study also J.D.S identify the unsatisfied needs in the market and try to match them with the specific characteristics of Julmentine dosage forms. J.D.S gets feedback from the market about Julmentine from different types of customers and respond to them as fast as possible. Market segmentation was done according to geographical segmentation and further segmentation is done in each target segment according to different variables. Each target Market has its own specific marketing mix of different dosage forms from Jumentive, different promotion intensity, different quantities from the product and suitable prices in each target market. Positioning of Julmetive in UAE Market was done very well through its unique Tablet pack and suspension flavor. Still there is a need to give more efforts in the services offered from J.D.S to its customers buying J.D.S products in UAE market, so that J.D.S may become a star company in the drug market in UAE. Table Of Contents TABLE - Julphur is a promising drug company in U.A.E market which competes through it products, other national and international drug companies products in its quality and price. Julemntive is one of the J.D.S stratgic products manufactured by J.D.S factories and coming in three dosage forms :- TABLE- (1) In general there are two types of competition between drug companies. [a] Product Competition The competition that occurs between subtituted products For Julmentine competitors from this kind are th products produced by other drug companies and have the same active ingredient of that of Julmentine. [b] Category Competition Which occurs between different products but targets the same people In this case the competitors of Julmentine are in general all types of anti-biotics available in the market from different companies which can cure all infections treated and cared by Julmentine. The next table presents all product competitors of Julmentine in the Market Of UAE. - TABLE J.D.S deals with [M.I.S]: Medical Information Index Which is an international copmany all other drug companies in UAE and in the world are purchasing information from. M.I.S Gives J.D.S a clear information about: (1) The sales of different products of each drug company in UAE and in the world in both value and units. (2) The market share of each product of each company in UAE Global Market. (3) The Rank of companies in the world according to their sales. (4) The Rank of the products of top sales in UAE Market and Global Market. *According to Market share in UAE the rank was as follows: 1. Augmentine 4. Curam 2. Klavox 5. Amodeus 3. Julmentine 6. Enhancin Augmentine - is the oldest brand competitor of Julmentine. Some doctors still prefer to prescribe an International company product than a national one, especially in invenestment private hospitals. -Klavox is a generic competitor of Julmentine. They have a higher market share than that of Julmentine because they give the pharmacies (general customers) a higher bonus than other competitors may reach up to 70% (100+70) for some items. They have a limited number of products to work on than in the market. Klavox is a strategic product for Spimaco, which has only four products in the market. Spimaco also achieved this high market share of Klavox by positioning Klavox as it contains the same raw material of that of Augmentine, but with damaged box and less price. Julmentine keeps its bonus low, nearly similar to that of Augmentine (brand competitor) so that they can achieve their target profit from this product. This target of sales of germantin last year was $3 million. J.D.S achieved 103% of the sales target last year. J.D.S also gather information of big competitors from other pharmacies, doctors, other companies, medical and sales representives in the market dealing with J.D.S team. J.D.S will know from them the different activies of competitors such as educating lectures, sales offers in hotels, presents to doctors and pharmacies etc. (1) J.D.S has a marketing coordinator, his job is to give sales reports in each month and sometimes in each week, for each product in J.D.S. Both unit and money wise and its percentage from the total target of each year. These reports are sent to the medical representitives and to the supervisors in the company. (2) He will give a report on the number of doctors each medical representitive (medical rep.) is visiting them in each month and should give a list on each doctors and units. Opening in each medical rep. area, to put them in the visiting plan of the medical rep. in that area (updating the plan). (3) He is responsible for segmenting the geographical areas for the medical rep. Now, its just another point. J.D.S managers gets their information about the development in marketing environment from other companies medical rep., or the the managers of other drug companies, with good relations with the product managers of J.D.S. Meeting them in medical events or even famous coffee shops where medical teams of all drug companies usually meet. J.D.S has a drug information office. Its job is to make reasearch about the bioequilants of Julphur products (such as Julmentine), and compare it to the bioequilants of the brand competitors and category competitor brands in market and send these information to the concerned departments in J.D.S. Comments and recommendations on Julmentine competitors: J.D.S team made a great effort in gathering information from different resources about the competitors and the development in marketing environment. They use the research method through dealing with M.I.S Drug information office, they use the internal record system though the information is prepared by the marketing coordinator in J.D.S. They use also the marketing intelligence system, the one which should be improved by educating the managers to collect further information about the development of marketing environment from newspapers, publications, scanning websites to see different changes that occurs globally in the marketing environment and choose the best of it that fits UAEs market and J.D.S products and try to implicate them. (4) What are different customer needs? In general, The fundamental idea of marketing that Organizations survive and proper through meeting the needs and wants of customers. The marketing concept is about matching the companies capabilities with customer wants. The customers for J.D.S and specifically for Julmentine are 1. Doctors who prescribe Julmentine. 2. Pharmacies who buy and sell Julmentine. 3. Patients who use Julmentine to get cured. J.D.S takes in consideration before launcing Julmentine in UAE market different information collected from the MIS sheet, about how many competitors to Julmentine in the UAE market, their market share, what are the different needs in the market that Julmentine can satisfy, such as lower price and good quality, while other competitors cannot for ex; Augmentine which offers high-quality to high-priced product. When the medical rep. of J.D.S working on Julmentine visits doctors, they will hear to doctors needs, which Julmentine can satisfy. * For ex: Dentists want to write Julmentine for three days only, rather than seven days which is the normal course of Julmentine. Thus Julmentine can be sold by tablet to customers as they are not in need of full box of Julmentine tablets containing 20 tablets per box, and by selling Julmentine by tablets, they satisfy doctors needs. * Another example in labour areas labourers usually ask from doctors to prescribe cheap medicines for them than the first need of doctors in such areas is to prescribe a lower price. Antibiotics This need can also be satisfied by Julmentine being at high quality. Antibiotic compared to lower prices compared to its competitors. * Pharmacies usually ask medical reps. for extra bonus on Julmentine orders over than listed in bonus sheet. Medical reps. can satisfy these needs by giving the pharmacist extra bonus from their own medical samples given to them. * E.N.T doctors usually writing the antibiotics for 8 days. That means that the patient is in need of a number of tablets higher than those available in one box, but lower than the total number of tablets of two boxes which is very costly. This need is satisfied by selling Julmentine tablets in strips, which was more economical and satisfying the doctors need to give the antibiotic doze for 7 days only in exact number of tablets not more or less. Each strip contains 8 tablets rather than 10. Comments on recommendations on customer needs There is no market research carried out by J.D.S team, to identify customer needs, but they use the informations coming from research companies about the competitors in the market and J.D.S team try their best to satisfy the customer needs in the market other competitors are not satisfying them. Notice from the M.I.S sheet J.D.S team should carry out a market research maybe in a questionnaire form to identify the needs of new customers in the market and try to satisfy them to increase Julmentine market share in UAE markets. A great effort is done to identify the needs through the direct contact of JDS medical rep. with doctors and pharmacists and through the toll-free offered by drug information offices, and this all helps JDS to develop Julmentine as a product that meets the needs of customers. (5) Do Customers give feedback on Julmentine? General notice on feedback: Feedback : The meaning of the word is when you feed you must ave a feedback. This is the same as when you feed the market with products you should have a feedback because it is a tool of indication of corrections. Feedback also means the response or reaction fom the target audience which is made by research. J.D.S medical reps. tries their best to collect the feedback on Julmentine dosage forms from the target customers in the market. Through their direct contact with doctors, medical reps. receive doctors compaints about the pack of Julmentine tablet when it was first launched. Julmentine tablet was packed in a dark glass bottled filled with 20 tablets altogether. Tablets in this packaging form are not protected from humidity and light through opening and closing the bottle with each dose. , which was a negative feed on Julmentine the JDS has responded to this complaint by changing the pack of Julmentine tablet from a glass bottle into Aluminium straps each strap contains 5 tablets and can be seperated as a unit dose tablets taken as a single dose alone when travelling to far areas and as each tablet in the aluminium strap pack is protected from light humidity. Through the toll-free in drug information department some customers (patients) gives suggestions or copmaints (feedback) about JDS products like Julmentine. For Ex; the difficulty to carry the old glass bottle pack of Julmentine tablets which contains the 20 tablets with the employee to work so that he will not miss a dose while is one work this problem was solved when Julmentine tablet shifted to the new aluminium strap pack which gives the flexibility for employees to take one strap of Julmentine or even one tablet with him to work instead of the heavy old glass bottle. Patients will give a positive or negative feedback to pharmacist in private pharmacies As they will talk about their experience in using Julmentine full treatment course which usually is successful when it is used with the right frequency and duration. These information are collected by medical rep. from their direct contact with the pharmacist. Comments Recommendations on Julmentine feedback: JDS team do get feedback from the market through difference ways explained before JDS by this way setup a customer advisory panel which helps the firm to learn more about customers need from Julmentine as a product and the customers (patients, doctors pharmacists) feel closer to the firm (JDS) that listen to their comments. A great effort is done in this area by JDS team . (6) Segmenting the UAE market by JDS team. Segmentation: is the process that divides the market into target audience with simliar characters and needs. Segmentation is a common marketing practice whereby customers are placed into different grouping on basis of demographic, geographic, psychographic or other characteristics. Different segments often have different or unique needs, segmentation helps marketers because different segments often require tailored marketing programs. JDS has segmented the UAE market using Area Segmentation. Area Segmentation or Geographical Segmentation is used by JDS to segment the UAE market according to the number of medical reps. in JDS. According to this segmentation, each medical rep. in the company will have an equal number of doctors in that area. His job is to visit them. According to this segmentation and the size of the population in target areas the sales target was divided into two (1) 60% of the sales target should be collected from Dubai Northern Emirates (high population large area) (2) Segmenting the target area according to the activities of doctors in that area (pediatrition, urologists, etc) and their interest in writing Julmentine molecule (active ingredient) (3) Further segmentation according to the products, what type of product the doctor is going to prescribe. Pediatrician will write suspension forms, denstists will write tablet suspension forms. (4) In each target market further sales segmentation occurs in distributing the target from different dosage forms. From the area in Jumeirah, Julmentine target sales should be 2000 units divied as follows: Julmentine Tablets 375mg 800 units Julmentine Tablets 625mg 400 units Julmentine Tablets 156mg 200 units Julmentine Tablets 312mg 400 units Julmentine Tablets 0.5mg 100 units Julmentine Tablets 0.6mg 100 units * Recommendations or Comments on Segmentation The geographical segmentation of UAE market is the best segmentation for drug companies especially in JDS As area is segmented according to the number of medical reps. in the company. But using other variables for further segmentation in each target are a is also possible and can be done. The geographical segment or Areas can be further segmented according to income and social class of the population within this area (demographics of population). This further segmentation may help JDS to identify and reach specific target groups within each target segment so they can achieve higher product penetration and market shares in the target market Julmentine. (7) Marketing Mix Existance Marketing Mix or the (4Ps) are: (1) Price: Which means how much our products will cost. (2) The product: which means what we are going to give (3) Promotion: The element that invovles policies and procedures related to personl selling, advertising, publicity and budget trade promotion. (4) Place: Which means where we are going to give. * The (4Ps) for Julmentine dosage forms can be analyzed as follows: (1) * The Price: The drugs prices in general are the same in all target markets as they are set by the Ministry Of Health for each product dosage form and it is fixed through all UAE market acitivities. * Products : According to the type of doctors activities in target segments. Some of Julmentine dosage forms will be prescribed and some of them will not. For Ex; An Area where this a Paeditrician the suspension dosage form of Julmentine will be fast moving while Julmentine tablet will be at a slower rate. * Promotions: In any geographical area Potential doctors Class A should be visited 3 times per month , while less potential doctors will be visited only once a month. The number of doctor visits per month is specific to each doctor in each target market. * Advertising is not allowed by the Ministry Of Health for any drug product in any company but only some sales promotions can be made from time to time by setting offers of bonus on large quantities. * Place: Julmentine in its different dosage forms is placed are in pharmacies near potential doctors or where high counter sales, there near residential areas. Only the fast moving dosage forms should be available in high quanitity in such target areas, while other dosage forms of Julmentine moving at a slower rate should be in limited quantities. * Recommendations Comments on the 4Ps of Julmentine -JDS team do segment the market and specify each target market with its own specific marketing mix. Different products are distributed in different areas also different promotion intesnity in each target area according to doctors classfication in that one, different quantities of th products different areas according to its movement. JDS is doing very well in differenciating the marketing mix in each target market. (8) Adjusting the Marketing Mix of Julmentine In Different Target Market * In Labour Residential Areas The medical reps. will seed this area with the lower price Julmentine tablets (375mg) and will give pharmacies in these areas extra bonus on large quantities to lower the cost on pharmacies and patients as well so that Julmentine will be at economical prices in these area for customer. Also, in these areas the doctors need to prescribe drugs at lower prices to patients from laboursers. So the medical reps. of JDS will start to persuade the doctor to prescribe Julmentine 375mg in straps instead of full boxes, so that it will be at a lower price to the patients. * In these exampes JDS promotional team adjust their product, price and promotion according to the needs of this target segment in the market. In each target market and for each doctor in this area, medical representatives try to identify the needs of doctors in a specific product or drug. By asking the doctors open end and close end question they will identify his needs. Some doctors concerned about the price of the product and some of them concerned about the patients compliance to the dose the medical reps. choose the product (or dosage form) hat will satisfy his needs and he will make an intense promotion on them. According to the type of doctor activity in any target area the medical reps. will choose the product (or dosage form) that can be prescribed more by the doctor and promote it. Like paediatricians mostly they will see patients from children, so the medical reps. will start to promote Julmentine suspension to the dcotor. Also according to the activity of the doctors in the (each target segment), the medical reps. will determine how many times to visit him in each month if he is potential 3 visits/month. If he is not potential, once per month by that, he will adjust the intensity of promotion to that doctor. * Recommendations Or Comments JDS team reached a high level in adjusting the marketing mix of each target markets as described earlier For each drug they will adjust the product he wish to prescribe. His concern about price is satisfied and the intensity of promotion to this doctor and the placing of different products in different areas. JDS should keep maintaining the same level in adjusting the marketing mix in all target market segments. (9) Positioning Of Julmentine Positioning the product is translating the product features into consumer benefits, so that people see it satifies their pressing needs. Then position the product in peoples mind in a way that differenciates it from all of the other competitors. People will be compelled to buy, because they can never forget the sales message of the product. JDS team do their bset in positioning Julmentine in the mind of prescribing doctors. -They position Julmentine tablet form as n (Alu-Alu technique) products. As the tablets are packed in double aluminium foil straps, to pretect the tablets from humidity and light. They position Julmentinetablets in straps as its flexibility that can be dispensed according to the number of tablet the doctor want to prescribe his patient. As Julmentine staps contain 5 tablets, it can be seperated easily into single tablets covered by double aluminium foil. They give doctors wireless mouses as giveways and they position them as they have the flexibility in motion as Julmentine tablet. Julmentine suspension was also positioned in doctors mind as it is the only brand which is available ind ark colour bottles, protected from light, as all other brands available in transparent glass bottles and their colours may change at the end of treatment course. Also, Julmentine Suspension is the only brand coming in strawberry-cherry taste and its taste will continue to be the same until the last-dose while other brands have the banana taste which will be ain a better taste at athe last doses. Recommendation Comments on Positioning Of Julmentine JDS catch the essence of positioning Julmentine in the market by being the best brand with its doubted foiled aluminium packs for tablet and its flexibility to be given to customers by tablet. They grab the unoccupied position of cherry-strawberry taste of Julmentine Suspension while other brands have the banana taste. They also try to strengthen the Julmentine currrent position in the customers mind through connecting the flexibility of wireless mouse given as presents with the flexibility of Julmentine tablet straps. JDS should keep promoting the idea that is the club with the best. (10) Service offered by JDS Vs Its product aspects JDS is a company that offers tangible good with accompanying services [50% for the goods 50% for service] JDS services offered when the customer purscahse goods from them as follows: (1) Free of charge delivery of all ordered items to any place in UAE (2) Easy online ordering through the toll-free. (3) Damaged items are replacedwhen the defects coming from JDS. (4) Expired items can be replaced by an amount equal to 10% of each new order until it is totally replaced. (5) Payment is on credit for 3 months * Sometimes JDS has service problems especially in the delivery of goods to customers. There is always a delay in delivery of goods to customers. Other services offered by JDS are: (1) Educating lecturers in hotels for both pharmacists and doctors on JDS products followed by dinner. (2) They add the number of lines to toll-freeto become 3 times for toll-free in the company for any compaints or suggestions on JDS products. (3) There is a website for JDS on internet presenting all information about JDs and its products. (4) Protential doctors are invited to symposiums on the sponers of JDS to promote them to prescribe JDS products. (5) Pharmacists pushing JDS products on the counter in potential pharmacises may get a golden coin or tickets from JDS to motivate them to push JDS products on the counter. * Recommendations Comments on different services offered by JDS compared to its products. -JDS can improve their delivery service to customres by increasing the number of vehicles used in service and increase the number of workers in delivery line to satisfy the customer needs of fast delivery of the goods..as many other drug copmanies do in UAE market. JDS may improve the replacement of expired goods. By replacing the expired items install amount without the need for a new order from the pharmacy or the customer inorder to replace other expired items. Or it may ask its customers to return back their nearly expired items before 3 or 6 months from their date of expiry. Which is a strategy applioed in other drug stores in UAE. Still in this field JDS need to exert more effort to satisfy its customer needs. (11) Conclusion: JDS or Julphur drug store According to the different marketing elements I pass through them in this assignment.. I found that JDS is correctly implicating all marketing concepts elements successfully. It tries its best to perform at higher business performance levels, but still it needs to exert more effort in certain areas of its practice. But generally, it is moving fast towards being a star company in the national international drug market.