Question.1146 - E. International Business Plan: (Each alpha and numerical bullet point and sub-bullet point listed below should be presented under a separate title, in bold font, highly and easily visible, followed by substantive description) Part 1: Develop a Marketing Strategy a. Situation analysis: 1. Product and service description 2. SWOT analysis of your company – within the industry 3. Critical issues b. Market analysis: 1. Macro environment 2. Market size 3. Market trends 4. Needs analysis 5. Competitive analysis c. Market strategy: 1. Marketing objectives 2. Financial objectives 3. Positioning strategy 4. Product strategy 5. Price strategy 6. Distribution strategy 7. Branding strategy 8. Marketing communications strategy d. Characteristics of your Organization’s Potential Customers in the Country: 1. Demographic analysis 2. Target demographic
Answer Below:
Marketing Strategy for Nebulizer in Indonesia Part 1: Develop a Marketing Strategy a. Situation analysis: Product and service description:?The Nebulizer by MediCorp addresses the pressing respiratory health issues in Indonesia, offering a home-based and preventive solution. Following research (to assess the past market performance and mitigation of the future), MediCorp needs to tap into the growing demand for portable nebulizers through digital health integration (N & Purlinda, 2020). Researching market growth projections in Indonesia needs to involve dynamic factors like population growth, expenditure trends, and prevalence of respiratory conditions. According to the data from the National Health Survey between 2013 to 2020, asthmatic growth among the Indonesian population experienced a surge of average of 1.5% every consecutive year (Pawankar et al., 2020). According to the report from the International Trade Administration, healthcare spending in 2019 was approximately $33.4 billion, and the pandemic pushed the numbers to $47.1 billion, at the same time causing a surge of 11.1% increase rate in pulmonary patients ( Healthcare Resource Guide Indonesia, n.d.). The Nebulizer by MediCorp addresses respiratory health issues in Indonesia. SWOT analysis of your company within the industry:?In terms of identifying the competitors, it is important for MediCorp to conduct a comprehensive analysis in terms of market assessment for nebulizers; by conducting a SWOT analysis, MediCorp will be able to mitigate strengths, weaknesses, market share in terms of evaluating the performance and need for nebulizer within the domestic and international ground ("International Cultural Differences," n.d.). Secondly with the aid of SWOT analysis, MediCorp should monitor industrial trends to assess the market competition. One of the trends observed in Indonesia post-pandemic, where fear of hospital influence over patients in terms of hospitalization and expenditure would cost them in terms of invasive diagnosis, the research by W & Erviana (2021) claims that certain test kits like spirometry, invasive bronchoscopy, and thoracoscopy were utilized to diagnose non-covid with increased cost burden under the name of COVID-19 infection pushing the people to avoid hospital care creating a demand for preventive and home care for illness. Critical issues:?Before COVID-19 hit Indonesia, the nation was exposed to Severe acute respiratory infection (SARI) (as defined in 2011), which cast huge burden on the healthcare system leading to causing various respiratory ailments like asthma, COPD and other respiratory allergies causing shortened breath, difficulty and lasting fevers as defined by WHO (Aman et al., 2021). The recent estimates in accordance with the population rate state that around 23 million people are exposed and are subject to respiratory illness, particularly asthma (Aman et al., 2021). With the growth in population and minimal public healthcare aid to the masses, SARI has become an acute respiratory illness; several patients have shown signs of lasting fevers of ?38?C with severe cough; this put the nation in a strong demand for effective respiratory treatment like to nebulizer that could also result in preventive measures to combat pulmonary diseases at the grassroots level (Aman et al., 2021; Endaryanto et al., 2023). COVID-19 worsened the situation across Indonesia, causing hypoxia, leading to brain damage when people have prolonged exposure and additionally, healthcare in Indonesia has been negligent due to inappropriate healthcare infrastructure that is easily accessible for children (this also called for a home-based treatment approach), considering respiratory issues in children that put the next generation at risk of inherent tuberculosis, nosocomial transmission, and more (Kahar er al., 2020). Nebulizer offers a convenient and effective way to address respiratory symptoms at home, which can also be monitored/administered by parents/guardians. According to the research by Santika et al. (2023), Indonesia reported that 545 million people were affected by respiratory issues, there was a 40% increase in cases from the early 1990s; this rate contributed to 7% of the global rate; while in the same year, Indonesia experienced around 4 million deaths due to respiratory issues, among this around 67% were from the lower and middle class (income) with restricted access to the medication. This shows the demand for preventive and home-based care medication or support that is easily accessible by all income classes, which can be fulfilled by MediCorp. b. Market analysis: Macro environment:?Indonesia's socio-economic and political climate significantly impacts the nebulizer market; as the nation's healthcare system, burdened by respiratory ailments pre-COVID, faces challenges exacerbated by the pandemic and post-COVID, the fear of hospitalization costs and invasive diagnostics drives the demand for home-based medical solutions (Endaryanto et al., 2023). The inadequacy of healthcare infrastructure, especially for children, emphasizes the need for nebulizers. Moreover, ongoing political and economic developments can influence healthcare policies, affecting the accessibility and affordability of nebulizers for the population. Market size:?Pre-pandemic estimates indicate that around 23 million Indonesians suffer from respiratory illnesses (Aman et al., 2021). Post-pandemic, the fear of hospital-related costs has intensified the demand for home care solutions and to capture the market accurately, detailed research is necessary (Purnomo et al., 2021). However, with the increasing prevalence of respiratory conditions and a growing population, the nebulizer market in Indonesia is poised for substantial growth, potentially reaching a significant market size in the post-pandemic scenario.?Considering the report by Abmrg (2018), the Indonesia respiratory illness in need of medical devices market forecasts a grow 9% of 1/3rd of the population, and the nation stands fourth for most deaths triggered by respiratory diseases like Chronic Obstructive Pulmonary Disorder (COPD) and Jakarta is one of the cities that account to most asthma cases reported, and certain stats that reported were around 70% of Indonesian men accounting for 80 million of the population are exposed to smoking, and 6% of the overall population were passive smokers; adding to that 6.5 million vehicles were on road without the emission test records contributing to respiratory illness. The post-pandemic scenario, with an intensified demand for home care solutions, further supports the potential for growth in the nebulizer market. This creates an opportunity for MediCorp to capture a significant market share. Market trends:?Considering healthcare preferences, the fear of hospitalization costs post-pandemic has shifted preferences towards preventive and home-based care (Paley, 2021). Nebulizers, offering at-home respiratory treatment, align with this trend but it calls for digitalized demand, there is a growing demand for portable nebulizers through digital health integration (Endaryanto et al., 2023). Smart nebulizers with features like Bluetooth/Internet connectivity and personalized treatment plans that send real-time data and reports are becoming popular, indicating a trend towards technology-assisted respiratory care. MediCorp needs to take advantage of the local market by tailoring to Indonesian cultural nuances is essential. Language preferences and media consumption habits play a crucial role in reaching the target audience, emphasizing the importance of localized marketing approaches ("International Cultural Differences," n.d.). Consumers prefer user-friendly nebulizers with intuitive interfaces and easy maintenance features so by developing a product with clear instructions and user-friendly designs gives a competitive edge. Justification: The shift in healthcare preferences towards preventive and home-based care post-pandemic is evident and the growing demand for portable nebulizers through digital health integration aligns with market trends, emphasizing the need for smart nebulizers with technological features. Localized marketing approaches will be essential to cater to Indonesian cultural nuances and preferences. Needs analysis:?Analyze legal structures for marketing medical devices in Indonesia, such as establishing a local subsidiary, forming a joint venture with an Indonesian company, or partnering with a local distributor ("Modes of Entry," n.d.). Consider modes of entry such as partnerships with local industries to procure resources or wholly-owned subsidiaries based on regulatory requirements and risk assessment ("Modes of Entry," n.d.). Strictly adhere to Indonesian regulations (legal standards) regarding medical device manufacturing, testing, labeling, marketing, and sales. Align business practices with international ethical standards, such as patient privacy, data protection, and responsible advertising. Justification: Understanding legal structures for marketing medical devices in Indonesia is crucial for compliance and market entry. By aligning business practices with international ethical standards, including patient privacy and responsible advertising, MediCorp ensures regulatory adherence and builds trust with the target audience. Competitive analysis:?Strengthen ties with healthcare professionals by offering training programs, workshops, and continuous education on the latest advancements in respiratory care (Schlegelmilch, 2022). Establish a network of healthcare providers endorsing and prescribing MediCorp's nebulizers, enhancing credibility and trust among potential customers. Actively encourage and showcase user reviews and testimonials on various platforms. Create a section on the company website dedicated to success stories and positive experiences with MediCorp's nebulizers. This builds trust among potential customers and serves as authentic proof of the product's effectiveness leading to a better rate of brand loyalty. Justification: Strengthening ties with healthcare professionals and establishing a network of endorsements enhances the credibility of MediCorp's nebulizers; this approach aligns with the need for reliable and trusted healthcare solutions, especially in the context of respiratory care. c. Market strategy: Marketing objectives:?To establish MediCorp as a leading provider of respiratory care solutions in Indonesia, capturing a significant market share within three years. The objective is to address the rising demand for nebulizers driven by respiratory illnesses, positioning MediCorp as a trusted brand for home-based and preventive care. Justification: The objective to establish MediCorp as a leading provider of respiratory care solutions aligns with the identified market needs. Capturing a significant market share within three years is supported by the substantial demand for nebulizers in Indonesia, driven by respiratory illnesses. Financial objectives:?Achieve a 20% increase in revenue within the first year of nebulizer launch, capitalizing on the growing market for portable respiratory solutions in post-pandemic Indonesia. Implement cost-effective supply chain strategies to maintain a gross profit margin of at least 30% over the next three years. Justification: The financial objectives of achieving a 20% increase in revenue within the first year and maintaining a gross profit margin of at least 30% over three years are grounded in the market potential and the identified need for affordable and innovative respiratory solutions. Positioning strategy:?Differentiating MediCorp's nebulizers through innovative packaging and user-friendly designs by considering eco-friendly packaging options to appeal to environmentally conscious consumers (Schlegelmilch, 2022). The goal is to make the product not only effective but also visually appealing and easy to use. Justification: The emphasis on innovative packaging serves two purposes. Firstly, it aligns with the overall branding strategy of differentiation. By offering a visually appealing and unique packaging design, MediCorp sets the Nebulizer apart from competitors. The user-friendly design of the Nebulizer caters to the preferences of parents seeking hassle-free solutions for their children's respiratory conditions. Ease of use, clear instructions, and intuitive interfaces enhance the overall user experience. By focusing on user-friendly features, MediCorp ensures that the Nebulizer is accessible and appealing to a broad demographic, including adults and the elderly. Product strategy:?Leverage the trend of increased acceptance of telehealth services in Indonesia and develop a telehealth platform that allows users to consult with healthcare professionals remotely for respiratory issues (Palmatier & Sridhar, 2020). Integrate nebulizer usage guidance, monitoring, and prescription services into the platform to provide a holistic respiratory care solution in order to align with the growing preference for home-based healthcare. Justification: Leveraging the acceptance of telehealth services and integrating nebulizer guidance into a telehealth platform aligns with the trend of technology-assisted healthcare; this approach enhances the holistic respiratory care solution provided by MediCorp. By offering remote consultations and personalized treatment plans, the brand communicates a comprehensive and forward-thinking approach to respiratory care. Price strategy:?MediCorp will implement a competitive pricing strategy for its nebulizers, aligning with the market demand and value-added features; the pricing will be positioned to offer affordability while emphasizing the quality and innovative aspects of the product in accordance with market trends from 2023 (Endaryanto et al., 2023). Additionally, the company will introduce flexible pricing models, such as bundled packages and financing options, to cater to diverse consumer segments. Regular market analysis will be conducted to adjust pricing dynamically based on market trends and competitive landscape, ensuring a strategic balance between affordability and perceived value. Justification: Implementing a competitive pricing strategy, along with flexible pricing models, aligns with the market demand for affordability and value-added features. Regular market analysis ensures dynamic adjustments based on market trends and competitive landscape. Distribution strategy:?Inbound Logistics by?evaluating the feasibility of sourcing raw materials and components locally to reduce costs, improve supply chain efficiency, and support local manufacturing initiatives, while operations can be conducted by considering setting up local manufacturing or assembly units in Indonesia to enhance efficiency, reduce transportation costs, and expedite product delivery ("Porter's Value Chain,"n.d.). Outbound Logistics by optimizing distribution channels by establishing partnerships with local logistics providers to ensure timely and cost-effective product delivery across the country ("Porter's Value Chain,"n.d.). Marketing and Sales by?developing localized marketing strategies tailored to Indonesian cultural nuances, language preferences, and media consumption habits ("International Cultural Differences," n.d.). Service sector by establishing local service centers to provide prompt and efficient maintenance, troubleshooting, and customer support. Justification: Optimizing inbound and outbound logistics, along with localized marketing strategies, ensures efficient product delivery and market penetration in both urban and rural areas. Establishing local service centers further enhances customer support and satisfaction. Branding strategy:?Form partnerships with local healthcare organizations, NGOs, and community health centers to provide free respiratory health check-ups and nebulizer demonstrations (Paley, 2021). Offer discounted or subsidized nebulizers for those in need, especially in underserved areas, which not only addresses the immediate healthcare needs of the community but also establishes a positive brand image for MediCorp. Justification: Forming partnerships with local healthcare organizations and offering free health check-ups and nebulizer demonstrations builds a positive brand image and addresses immediate healthcare needs. The emphasis on community health centers establishes credibility within the target demographic. Marketing communications strategy:?Launch an extensive educational campaign to raise awareness about respiratory health and the benefits of nebulizer usage, along with collaborating with healthcare professionals, schools, and community centers to organize workshops, seminars, and training sessions on recognizing respiratory symptoms, preventive measures, and the proper use of nebulizers (give more emphasis to domestic stakeholders to empower them) (Gbadamosi, 2019). Utilize various media channels, including social media, to disseminate informative content. Justification: Launching an extensive educational campaign aligns with the need to raise awareness about respiratory health and nebulizer benefits. Collaborating with healthcare professionals, schools, and community centers ensures a comprehensive approach to disseminating information and building trust. d. Characteristics of your Organizations Potential Customers in the Country: Demographic analysis:?MediCorp needs to stay updated on Indonesian healthcare and industrial policies that govern the medical sector so that the company can draft a dynamic and adaptable. Considering market segmentation, MediCorp needs to evaluate the demographics including age, gender, location), and healthcare infrastructure (urban, rural) in order to mitigate the prevalence of respiratory conditions to introduce nebulizers into the market through a strategy that is tailored for the target demography (Endaryanto et al., 2023). It is important for MediCorp to consider a three-year forecast in order to develop a grassroots such that certain challenges like supply chain disruptions, fluctuations due to economic policies, and regulatory changes can be avoided. Justification: Recognizing healthcare infrastructure differences between urban and rural areas ensures a comprehensive understanding of the potential customer base. Target demographic:? Age Group:?Considering the risk of inherent tuberculosis and respiratory issues in children, MediCorp's nebulizer addresses the needs of parents who seek home-based treatments for their children (Aman et al., 2021). The user-friendly design and easy maintenance features cater to the preferences of parents who want a hassle-free solution for their children's respiratory conditions. With a substantial portion of the population exposed to respiratory illnesses, including lasting fevers and severe cough, adults and the elderly are a crucial demographic. The nebulizer provides a convenient and effective solution for managing respiratory symptoms at home, especially in the context of post-pandemic concerns about hospital influence and increased healthcare costs. Location:?Considering the healthcare infrastructure disparities between urban and rural areas in Indonesia, the nebulizer offers a solution that can be accessible in both settings (Perreault et al., 2021). By tailoring marketing strategies and distribution channels to suit both environments, MediCorp can effectively address the diverse needs of the population. Specific Conditions:?The nebulizer caters to individuals with chronic respiratory conditions such as asthma and COPD (Endaryanto et al., 2023). The device's effectiveness in managing symptoms aligns with the needs of this specific group, providing them with a reliable and convenient solution for home care. Technologically Savvy Users:?With the growing demand for portable nebulizers through digital health integration, MediCorp's target demographic includes individuals who are technologically savvy. This could be reflected in marketing strategies that highlight features like Bluetooth/Internet connectivity, mobile app integration, and personalized treatment plans to attract users who value technological advancements. Justification: Targeting parents with children, adults, and the elderly aligns with the specific health needs addressed by the Nebulizer (Aman et al., 2021). The user-friendly design caters to parents seeking hassle-free solutions, while the device's effectiveness in managing chronic respiratory conditions appeals to adults and the elderly. References Abmrg. (2018, June 28). Indonesia respiratory devices market is expected to grow at a CAGR of 9% - boosting growth for respiratory disposables. PR Newswire: press release distribution, targeting, monitoring and marketing. https://www.prnewswire.com/news-releases/indonesia-respiratory-devices-market-is-expected-to-grow-at-a-cagr-of-9---boosting-growth-for-respiratory-disposables-505160101.html Aman, A. T., Wibawa, T., Kosasih, H., Asdie, R. H., Safitri, I., Intansari, U. S., ... & Lau, C. Y. (2021). Etiologies of severe acute respiratory infection (SARI) and misdiagnosis of influenza in Indonesia, 2013?2016. Influenza and Other Respiratory Viruses, 15(1), 34-44. Endaryanto, A., Dewi, A., & Nugraha, R. A. (2023). Trend in the admissions of patients with non-COVID-19 respiratory symptoms during COVID-19 pandemic and its impact on hospital finances in Surabaya, Indonesia. Heliyon, 9(4). Gbadamosi, A. (2019). Contemporary issues in marketing: Principles and practice. Contemporary Issues in Marketing, 1-480. Healthcare Resource Guide - Indonesia. International Trade Administration | Trade.gov. (n.d.). https://www.trade.gov/healthcare-resource-guide-indonesia Kahar, F., Dirawan, G. D., Samad, S., Qomariyah, N., & Purlinda, D. E. (2020). The epidemiology of COVID-19, attitudes and behaviors of the community during the Covid pandemic in Indonesia. structure, 10(8). Learning Topic: Governance and Accountability. Governance and Accountability. (n.d.) https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-mba670/learning-topic-list/governance-and-accountability.html?ou=922484 Learning Topic: International Cultural Differences. International Cultural Differences. (n.d.). https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-mba670/learning-topic-list/international-cultural-differences.html?ou=922484? Learning Topic: Modes of Entry. Modes of Entry. (n.d.). https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-mba670/learning-topic-list/modes-of-entry.html?ou=922484 Learning Topic: Porter's Value Chain. Porter's Value Chain. (n.d.). https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-mba670/learning-topic-list/value-chain.html?ou=922484 Paley, N. (2021). The manager's guide to competitive marketing strategies. Routledge. Palmatier, R. W., & Sridhar, S. (2020). Marketing strategy: Based on first principles and data analytics. Bloomsbury Publishing. Pawankar, R., Wang, J. Y., Wang, I. J., Thien, F., Chang, Y. S., Latiff, A. H. A., ... & Oh, J. W. (2020). Asia Pacific Association of Allergy Asthma and Clinical Immunology White Paper 2020 on climate change, air pollution, and biodiversity in Asia-Pacific and impact on allergic diseases. Asia Pacific Allergy, 10(1). Perreault Jr, W. D., Cannon, J. P., & McCarthy, E. J. (2021). Essentials of marketing: A marketing strategy planning approach. McGraw-Hill. Purnomo, E. P., Rahmasari, F. V., Trisnawati, D. W., & Erviana, R. (2021, March). Observed data of forest fire hotspots effects on respiratory disorder by Arc-GIS in Riau Province, Indonesia. In IOP Conference Series: Earth and Environmental Science (Vol. 717, No. 1, p. 012036). IOP Publishing. Santika, T., Muhidin, S., Budiharta, S., Haryanto, B., Agus, F., Wilson, K. A., ... & Po, J. Y. (2023). Deterioration of respiratory health following changes to land cover and climate in Indonesia. One Earth, 6(3), 290-302. Schlegelmilch, B. B. (2022). Global marketing strategy. Springer International Publishing. ?More Articles From Strategic Management
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