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1. Overview of the organization

 

Sunshine Healthcare Lanka ltd is a local
pharmaceutical company in Sri Lanka and it is the second largest pharmaceutical
company. Sunshine Healthcare Lanka (SHL) established in 1967 is the partner for
choice for international healthcare companies seeking to grow their business in
Sri Lanka, in the areas of pharmaceuticals, surgicals, diagnostics, medical
devices and consumer health products. SHL is a leading market expansion service
provider, with the largest specialized healthcare team of over 350 medical
marketing & sales personnel; and an annual revenue of Rs 5.5 Billion.

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They offer the healthcare industry a broad range of
customized services from registration to importation, customs clearance, sales,
marketing and merchandising, warehousing, physical distribution, invoicing and
cash collection. Some of their partners are Abbott Laboratories, Zydus Cadila,
Glenmark Pharmaceuticals, Novo Nordisk, Johnson & Johnson Medical, 3M
Healthcare, GE Healthcare, Siemens Diagnostics and many more.

 

 

2. Relevance to the organization

 

Medical representative who is working for Glenmark
agency and handling 15 SKU’s.

 

 

3. Relevance of the chosen context

 

The pressure to re-launch a products has increased
(Cooper and Kleinschmidt, 1987), and this has resulted in senior management
thinking in terms of continuous (re)alignment, whereby there is a focus on
internal and external factors (Fisscher and de Weerd-Nederhof, 2001, p. 7).
Yeoh (1994) has noted that companies in the global pharmaceutical industry need
to develop a sustainable competitive advantage through a reorientation of the product
re-launch strategy, which results in a flow re positioning the drugs. The
marketing models that have been developed to date are useful with respect to
explaining marketing phenomena, but marketers working for global pharmaceutical
companies need to develop more focused marketing models that allow them to
understand, interpret and predict events and issues relating to market performance.
It can be argued that more research is required in order to establish re-launch
product launch strategy model can be developed. Emphasis needs to be placed on
predicting product performance via a relevant global marketing intelligence
process. Hence, marketers working in the pharmaceutical industry need concepts,
models and decision-making frameworks that allow them to implement effective
drug re-launch strategies.

4. Strategic business research scope

 

VWash (the product) is an intimate hygiene wash for
women. By the time its first launch, it was the first product that was
available in the country. Recently more competitor products have entered the
market and gained the market share. Scope of the project will follow SMART
concept, which is specific, measurable, actionable, realistic and in a time
frame. Objective of the re-launch is to increase the market share by 12% within
the next three months by re-launching the product.

 

5. Details of the mentor

 

Name – Prabath Bandara

Designation – Business development manager

Agency – Glenmark

 

6. Business case rationale

 

In the life cycle of a products will often begin,
and experience growth, without necessarily having a professionally designed
brand. However re-launching becomes a crucial step for product to be taken
seriously as they expand into more aggressive markets. Due to a fundamental change in the market, it’s product or
service or a change in direction or thinking. Need to differentiate the product from competitors. Many
products are very competitive and have a large “middle tier” ie;
where the majority of businesses sit in terms of competitive advantage. Usually
the Mid Tier is undifferentiated and most businesses struggle to demonstrate an
advantage in service. eg The pharmaceutical industry. Re-launch of a product is is often associated with remaining
relevant to a particular consumer group. Re-launching can also be used as
a way of retaining an original product brand while introducing a competing
product in a different market segment or price point. Another form of product
rebranding is when a business sells a product manufactured by another company.

 

 

 

 

 

 

7. Research project objective

7.1
Qualitative objectives

·        
Create product awareness

·        
To gain competitive advantage over
competing products

·        
To identify customer needs and wants and
deliver them in a profitable and delight

7.2
Quantitative objectives

·        
To increase the market share by 12%
within 03 months

·        
To increase the sales revenue by 8%

 

8. Literature review

 

 Critical review of literature allows the
researcher to build a theoretical framework for the study. This involves the
assessment of the existing research findings in order to identify the extent to
which they can be applied for the current study. This section provides a brief
explanation of the research findings that will be used in the current study.

Product life cycle
theory has been a key organizing principle in studies of technical innovation
over the last 20 years and is promoted by leading management theorists as a
tool for strategic decision making. In so doing it seriously questions a basic
premise adopted by numerous economists; that the dynamics of technological
change can be understood through the examination of the technological artefact.
We put forward an alternative explanation for the patterns of product
innovation observed in infant industries. This alternative views technological
innovation as a coupled, second-order learning system comprising a population of consumers and a
population of firms. Within this approach the artefact is viewed in a quite
different light. Rather than being an object in itself with its own internal
drives and dynamics, it is a mediating device. “P
Windrum, C Birchenhall – Structural Change and
Economic Dynamics, 1998 – Elsevier”

Fig 8

In market
penetration strategy,
the organization tries to grow using its existing offerings (products and
services) in existing markets. In other words, it tries to increase its market sharein current market scenario.This involves
increasing market share within existing market segments. This can be achieved
by selling more products or services to established customers or by finding new
customers within existing markets. Here, the company seeks increased sales for
its present products in its present markets through more aggressive promotion
and distribution. This can be accomplished by: (i) Price decrease; (ii)
Increase in promotion and distribution support; (iii) Acquisition of a rival in
the same market; (iv) Modest product refinements. ” Ansoff, I.: Strategies for Diversification, Harvard Business
Review, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124″

 

Fig
8.2

 

Product refers
to what the business offers for sale and may include products or services.
Product decisions include the “quality, features, benefits, style, design,
branding, packaging, services, warranties, guarantees, life cycles, investments
and returns”. Price refers to decisions surrounding
“list pricing, discount pricing, special offer pricing, credit payment or
credit terms”. Price refers to the total cost to customer to acquire the
product, and may involve both monetary and psychological costs such as the time
and effort expended in acquisition. Place is defined as
the “direct or indirect channels to market, geographical distribution,
territorial coverage, retail outlet, market location, catalogues, inventory,
logistics and order fulfilment”. Place refers either to the physical
location where a business carries out business or the distribution channels
used to reach markets. Place may refer to a retail outlet, but increasingly
refers to virtual stores such as “a mail order catalogue, a telephone call
centre or a website” Promotion refers to “the marketing
communication used to make the offer known to potential customers and persuade
them to investigate it further”. Promotion elements include
“advertising, public relations, direct selling and sales promotions. “McCarthy, Jerome E. (1964). Basic
Marketing. A Managerial Approach. Homewood, IL: Irwi”

 

Fig 8.3

 

9. Team member’s roles

Business
development manager – generating strategic plans to improve
the team and implementing company policies

Field
manager – coordinating the team members and monitor team
activities and ensure that the team achieve the set goals

Team
members – implementing the set strategies and creating
product awareness, achieving the set goals

 

10. Identification of strategic business
research project risks

10.1
Main Risk Areas Involved

·        
Financial
Risk
For the re launching of VWash account nearly 24M rupees will be spend within a
03 months of time to boost the sales. Since the VWash is already in a mature
stage if company fails to meet the expected target risk of a financial loss is
high.

 

·        
Market
Share If product fails to deliver the expected results to
target customers there’s a risk of losing market share further more

 

·        
Brand
image damage – if the re-launch does not succeed as
expected or if it deliver a different idea to the customers, it would hard the
brand image. 

 

10.2
Mitigating the Risks Involved 

 

·        
Financial Risk – Develop a strategic
marketing plan by doing a thorough market research, develop the product based
on customer reviews and do a sample test before re-launch. It is important that
the money on the product should be spent wisely. Therefore, relevant enough
data should be gathered from reliable sources. Reliability of such data should
be analyzed and mitigate the risks and errors.

 

·        
Market Share – controlling the price of
the product to be strategic, developing a strategic promotional campaign, create
value to the customer. Market share could be taken by controlling the price.
But it does not guarantee that reducing the price will help to gain the market
share. Along with reducing the price, quality of the product should be
increased and the perceived value of the product should delight the customer.

 

·        
Brand image – if the product re-launch
fails it would have a big impact on the brand. It is important that enough data
should be gathered on the context before the re-launch and the necessary
strategic actions should be taken on the re-launch.

 

11. Resource budget allocation

 

Activity

Value
 

Team
training and human resource development

1.0M

Market
research and product development

20.0M

Promotion
campaigns

2.M

Free
samples

1.M

Total

24M

Fig
11

 

 

 

 

 

12. Gantt chart and project plan

 

Activity

Time
period

Customer
research

January

Promotional
campaign

February

Product
launch

March

Fig
12.1

 

 

Activity

W1

W2

W3

W4

W5

W6

W7

W8

W9

W10

W11

W12

A

Prepare
the research proposal

 

 

 

 

 

 

 

 

 

 

 

B

Obtaining
the approval for the proposal

 

 

 

 

 

 

 

 

 

 

 

 

C

Carrying
out the literature survey

 

 

 

 

 

 

 

 

 

 

 

 

D

Build
theoretical framework and prepare data collection tools

 

 

 

 

 

 

 

 

 

 

 

 

E

Carrying out primary data collection

 

 

 

 

 

 

 

 

 

 

 

 

F

Carrying
out secondary data collection

 

 

 

 

 

 

 

 

 

 

 

 

G

Data analysis

 

 

 

 

 

 

 

 

 

 

 

 

H

Draft
the report

 

 

 

 

 

 

 

 

 

 

 

 

I

Finalise
and submission

 

 

 

 

 

 

 

 

 

 

 

 

          Fig
12.2

 

13. Research project limitations

·        
Sampling errors – chosen sample should
be relevant to the context. There could be statistical errors. In some cases
chosen sample might not be enough or accurate.

·        
Misled customer feedback – customers
could provide wrong information or feedback on the given context. It is
important that the researcher ask the right question from the right customer.

·        
Lack of available and reliable data –
data could be limited. There are internal and external data sources. Even
though there are sources, they might not provide enough data to make a decision
or move on with the project.

·        
Self-reported data – this data might not
give enough insight on the context.

·        
Limited access – Access could be limited
to data sources and other important information gatherings. There are some
areas that the top of the management are able to access and other employees
can’t access. Even some materials would be inaccessible.

·        
Biasness – customers could be biased
when providing information. Even the organization employees can be biased when
involving with the project.

 

14. Project evaluation techniques

Fig
14.1

With only one exception, Dt, all the
elements of the equation, which are represented in a simplified flow chart
format in Figure 3, play a somewhat equal part in the project evaluation
process. While those who seek a “black and white” scheme to evaluation will be
dismayed to see no constant numeric value has been assigned to any one element,
the equation clearly illustrates that the spectrum of recognition, definition,
and understanding of problems in the R & D environment involves the careful
consideration and interpretation of sometimes ambiguous information and events.
This process must be accomplished by scientists who are clearly knowledgeable
in the specific technology or by project management professionals properly and
meticulously trained to ask appropriate, pertinent, and penetrating questions.

Slight variations in the weight given to the
individual elements of the equation should occur, i.e., the Idelement
should be given more steadily increasing weight as the scope of the work
progresses in the direction of engineering development; conversely, Id would
receive comparatively less weight in the very early stages (basic research) of
the project (Figure 4).

Although I have stated Dt, is not part of
the evaluation process, it must be noted here that with the failure to make
timely project management decisions, or Dt =0, the result of
applying this simple project management equation will ultimately result in the
same value—zero.

 

Fig
14.2

Assuming a good Id, the
attention to the timely factoring into the evaluation process of such
intangible, but often times high impact, considerations as relevant education,
experience and environment, will assure little or nothing is overlooked in
determining the real status and the likely future direction of
the project. Applying the simple project management equation, during the
evaluation activity, structures and integrates the consideration of the
project’s most intangible factors

 

 

 

 

 

 

 

 

 

 

 

 

15. References

Lambert, L. R. (1985). Project management evaluation
techniques for research and development: a high-tech version of the old shell
game. Project Management Journal, 16(3), 47–51

Hawk, Donald L. Leadership 2000. Greensboro,
N.C.: Center for Creative Leadership, September 1980.

Issues and Observations – Participating
Management. Greensboro, N.C.; Center for
Creative Leadership, August 1983.

Johnson, Wendell. People in Quandries. New
York, N.Y.: Harper Brothers, 1946.

 

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