Overview of the organization Sunshine Healthcare Lanka ltd is a localpharmaceutical company in Sri Lanka and it is the second largest pharmaceuticalcompany. Sunshine Healthcare Lanka (SHL) established in 1967 is the partner forchoice for international healthcare companies seeking to grow their business inSri Lanka, in the areas of pharmaceuticals, surgicals, diagnostics, medicaldevices and consumer health products. SHL is a leading market expansion serviceprovider, with the largest specialized healthcare team of over 350 medicalmarketing & sales personnel; and an annual revenue of Rs 5.5 Billion.They offer the healthcare industry a broad range ofcustomized services from registration to importation, customs clearance, sales,marketing and merchandising, warehousing, physical distribution, invoicing andcash collection.
Some of their partners are Abbott Laboratories, Zydus Cadila,Glenmark Pharmaceuticals, Novo Nordisk, Johnson & Johnson Medical, 3MHealthcare, GE Healthcare, Siemens Diagnostics and many more. 2. Relevance to the organization Medical representative who is working for Glenmarkagency 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 managementthinking in terms of continuous (re)alignment, whereby there is a focus oninternal and external factors (Fisscher and de Weerd-Nederhof, 2001, p. 7).Yeoh (1994) has noted that companies in the global pharmaceutical industry needto develop a sustainable competitive advantage through a reorientation of the productre-launch strategy, which results in a flow re positioning the drugs. Themarketing models that have been developed to date are useful with respect toexplaining marketing phenomena, but marketers working for global pharmaceuticalcompanies need to develop more focused marketing models that allow them tounderstand, interpret and predict events and issues relating to market performance.It can be argued that more research is required in order to establish re-launchproduct launch strategy model can be developed. Emphasis needs to be placed onpredicting product performance via a relevant global marketing intelligenceprocess. Hence, marketers working in the pharmaceutical industry need concepts,models and decision-making frameworks that allow them to implement effectivedrug re-launch strategies.
4. Strategic business research scope VWash (the product) is an intimate hygiene wash forwomen. By the time its first launch, it was the first product that wasavailable in the country. Recently more competitor products have entered themarket and gained the market share. Scope of the project will follow SMARTconcept, which is specific, measurable, actionable, realistic and in a timeframe. Objective of the re-launch is to increase the market share by 12% withinthe next three months by re-launching the product. 5.
Details of the mentor Name – Prabath BandaraDesignation – 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 designedbrand. However re-launching becomes a crucial step for product to be takenseriously as they expand into more aggressive markets. Due to a fundamental change in the market, it’s product orservice or a change in direction or thinking.
Need to differentiate the product from competitors. Manyproducts are very competitive and have a large “middle tier” ie;where the majority of businesses sit in terms of competitive advantage. Usuallythe Mid Tier is undifferentiated and most businesses struggle to demonstrate anadvantage in service. eg The pharmaceutical industry. Re-launch of a product is is often associated with remainingrelevant to a particular consumer group. Re-launching can also be used asa way of retaining an original product brand while introducing a competingproduct in a different market segment or price point. Another form of productrebranding is when a business sells a product manufactured by another company.
7. Research project objective 7.1Qualitative objectives· Create product awareness · To gain competitive advantage overcompeting products · To identify customer needs and wants anddeliver them in a profitable and delight7.2Quantitative 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 theresearcher to build a theoretical framework for the study.
This involves theassessment of the existing research findings in order to identify the extent towhich they can be applied for the current study. This section provides a briefexplanation of the research findings that will be used in the current study. Product life cycletheory has been a key organizing principle in studies of technical innovationover the last 20 years and is promoted by leading management theorists as atool for strategic decision making. In so doing it seriously questions a basicpremise adopted by numerous economists; that the dynamics of technologicalchange can be understood through the examination of the technological artefact.
We put forward an alternative explanation for the patterns of productinnovation observed in infant industries. This alternative views technologicalinnovation as a coupled, second-order learning system comprising a population of consumers and apopulation of firms. Within this approach the artefact is viewed in a quitedifferent light. Rather than being an object in itself with its own internaldrives and dynamics, it is a mediating device. “PWindrum, C Birchenhall – Structural Change andEconomic Dynamics, 1998 – Elsevier”Fig 8In marketpenetration strategy,the organization tries to grow using its existing offerings (products andservices) in existing markets. In other words, it tries to increase its market sharein current market scenario.This involvesincreasing market share within existing market segments. This can be achievedby selling more products or services to established customers or by finding newcustomers within existing markets.
Here, the company seeks increased sales forits present products in its present markets through more aggressive promotionand distribution. This can be accomplished by: (i) Price decrease; (ii)Increase in promotion and distribution support; (iii) Acquisition of a rival inthe same market; (iv) Modest product refinements. ” Ansoff, I.: Strategies for Diversification, Harvard BusinessReview, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124″ Fig8.
2 Product refersto 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, investmentsand returns”. Price refers to decisions surrounding”list pricing, discount pricing, special offer pricing, credit payment orcredit terms”. Price refers to the total cost to customer to acquire theproduct, and may involve both monetary and psychological costs such as the timeand effort expended in acquisition. Place is defined asthe “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 physicallocation where a business carries out business or the distribution channelsused to reach markets. Place may refer to a retail outlet, but increasinglyrefers to virtual stores such as “a mail order catalogue, a telephone callcentre or a website” Promotion refers to “the marketingcommunication used to make the offer known to potential customers and persuadethem to investigate it further”. Promotion elements include”advertising, public relations, direct selling and sales promotions.
“McCarthy, Jerome E. (1964). BasicMarketing. A Managerial Approach. Homewood, IL: Irwi” Fig 8.3 9. Team member’s roles Businessdevelopment manager – generating strategic plans to improvethe team and implementing company policies Fieldmanager – coordinating the team members and monitor teamactivities and ensure that the team achieve the set goalsTeammembers – implementing the set strategies and creatingproduct awareness, achieving the set goals 10. Identification of strategic businessresearch project risks 10.
1Main Risk Areas Involved · FinancialRiskFor the re launching of VWash account nearly 24M rupees will be spend within a03 months of time to boost the sales. Since the VWash is already in a maturestage if company fails to meet the expected target risk of a financial loss ishigh. · MarketShare If product fails to deliver the expected results totarget customers there’s a risk of losing market share further more · Brandimage damage – if the re-launch does not succeed asexpected or if it deliver a different idea to the customers, it would hard thebrand image. 10.
2Mitigating the Risks Involved · Financial Risk – Develop a strategicmarketing plan by doing a thorough market research, develop the product basedon customer reviews and do a sample test before re-launch. It is important thatthe money on the product should be spent wisely. Therefore, relevant enoughdata should be gathered from reliable sources. Reliability of such data shouldbe analyzed and mitigate the risks and errors. · Market Share – controlling the price ofthe product to be strategic, developing a strategic promotional campaign, createvalue 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 marketshare. Along with reducing the price, quality of the product should beincreased and the perceived value of the product should delight the customer. · Brand image – if the product re-launchfails it would have a big impact on the brand. It is important that enough datashould be gathered on the context before the re-launch and the necessarystrategic 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 Fig11 12. Gantt chart and project plan Activity Time period Customer research January Promotional campaign February Product launch March Fig12.1 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 Fig12.2 13.
Research project limitations · Sampling errors – chosen sample shouldbe relevant to the context. There could be statistical errors. In some caseschosen sample might not be enough or accurate.· Misled customer feedback – customerscould provide wrong information or feedback on the given context. It isimportant 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. Eventhough there are sources, they might not provide enough data to make a decisionor move on with the project.
· Self-reported data – this data might notgive enough insight on the context.· Limited access – Access could be limitedto data sources and other important information gatherings. There are someareas that the top of the management are able to access and other employeescan’t access. Even some materials would be inaccessible. · Biasness – customers could be biasedwhen providing information. Even the organization employees can be biased wheninvolving with the project.
14. Project evaluation techniques Fig14.1With only one exception, Dt, all theelements of the equation, which are represented in a simplified flow chartformat in Figure 3, play a somewhat equal part in the project evaluationprocess. While those who seek a “black and white” scheme to evaluation will bedismayed 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 carefulconsideration and interpretation of sometimes ambiguous information and events.This process must be accomplished by scientists who are clearly knowledgeablein the specific technology or by project management professionals properly andmeticulously trained to ask appropriate, pertinent, and penetrating questions.Slight variations in the weight given to theindividual elements of the equation should occur, i.e., the Idelementshould be given more steadily increasing weight as the scope of the workprogresses in the direction of engineering development; conversely, Id wouldreceive comparatively less weight in the very early stages (basic research) ofthe project (Figure 4).
Although I have stated Dt, is not part ofthe evaluation process, it must be noted here that with the failure to maketimely project management decisions, or Dt =0, the result ofapplying this simple project management equation will ultimately result in thesame value—zero. Fig14.2Assuming a good Id, theattention to the timely factoring into the evaluation process of suchintangible, but often times high impact, considerations as relevant education,experience and environment, will assure little or nothing is overlooked indetermining the real status and the likely future direction ofthe project. Applying the simple project management equation, during theevaluation activity, structures and integrates the consideration of theproject’s most intangible factors 15. References Lambert, L.
R. (1985). Project management evaluationtechniques for research and development: a high-tech version of the old shellgame.
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