Introduction

DISCUSS ABOUT THE COMPARATIVE STUDY BETWEEN THE MARKETING STRATEGIES OF CSL LIMITED COMPANY AND MYLAN

Executive summary

The following report takes a look at the marketing strategies used in the pharmaceutical industry by looking at two pharmaceutical companies namely CSL Limited and Mylan and aims to provide a Comparative Study between the Marketing Strategies Of both the companies to find out the difference in marketing strategy between them. The pharmaceutical sector is one of the most dynamic in terms of demand for certain medications or gadgets, and thus, makes it among the most profitable industries due to the need for items that are deemed needs. Furthermore, marketing is critical to the success of any pharmaceutical firm especially in the wake of the Covid-19 pandemic that is still on-going. To better understand marketing efforts in the industry, this research compares the marketing strategies of CSL Limited Company and Mylan N.V, two pharmaceutical companies, through analysing their marketing mix and addressing each party’s unique approach towards marketing of their products.

Table of Contents

Introduction. 4

Comparative Study between the Marketing Strategies of CSL LIMITED and Mylan. 4

Product 4

Price. 5

Place. 5

Promotion. 6

Demographics. 7

Conclusion. 7

References. 8

Introduction

The pharmaceutical industry always sees a high rate of change in the demands of specific medication and devices and is considered one of the most booming industries in terms of revenue generation as they need products that are seen as medical necessities. Moreover, marketing plays a huge part in any Pharmaceutical company’s success (Khazzaka, 2019). To understand marketing strategies within the industry this report aims to provide a comparison of the marketing strategy of CSL limited and Mylan N.V who are based out of Australia and the USA respectively by comparing both pharmaceutical companies’ Marketing mix and addressing each factor’s differential approach taken by them.

Comparative Study between the Marketing Strategies of CSL LIMITED and Mylan.

Product

CSL Limited: The Company mostly deals in products that are derivatives of blood plasma. Their product portfolio is well diversified and includes Blood plasma derivatives, vaccines, antivenin, and cell culture reagents. Their products are used in a variety of medical and scientific research in genetics as well as aids manufacturing applications for other life-saving medications. They are renowned for their prowess in biotechnology, thus they develop, produce as well as distribute products for the prevention and cure of life threatening medical complications in humans (Khazzaka, 2019).

Mylan: In contrast to CSL, Mylan N.V has made a name for itself in the areas of genetics and in specialty pharmaceuticals (Hailu, Workneh & Kahissay, 2021). They have over 7500 different drugs in their portfolio which are sold to medical institutions, pharmaceutical retails as well as sold over the counter. Their most renowned product is the EPI-pen, used to stop severe allergic reactions, has propelled the company to be leader in that segment. Other than that, their portfolio includes biosimilars, generics, brand-name drugs, and over-the-counter medications.

Price

CSL Limited: The pricing strategy honed by the CSL is Price penetration that helps the company generate revenue and attract clients. Moreover this pricing strategy is focused on determining the list price, credit terms, subscription time, as well as discounts. They try to provide subscriptions and heavy discounts to retain existing customers. This strategy entails setting the initial price lower than the market price and gaining customers in the initial stages; this pricing can be changed later as the market share of the product and its inherent demand in the market increases (Lahtinen, Dietrich & Rundle-Thiele, 2020). As a result, gives the company a competitive edge over other similar companies in the pharmaceutical industry.

Mylan: In the context of Mylan N.V, it is seen that the company uses a competitive pricing strategy to target potential customers. Prices are set at par or slightly reduced compared to the competing rival pharma companies which help them achieve a competitive edge in the industry. Additionally, through its marketing mix, the company uses a multicomponent pricing approach that is based on a thorough cost-benefit analysis, market research, as well as risk evaluation. To measure interest in a specific drug and learn about related therapies, intensive surveys are conducted (Hailu, Workneh & Kahissay, 2021).

Place

CSL Limited: CSL’s predominant customer base is seen to be situated in the western market in countries such as USA, southern America as well as in parts of Europe where the demand is the highest. Nevertheless they are able to distribute pharma products to any part of the world. Today’s customers, places a great value on ‘efficiency’ as well as ‘accessibility’ thus, their use of the “proper” distribution channels aids the organisation in expanding its prospective consumer base.

Mylan: Mylan has distribution networks that spans many counties internationally and includes places such as India, Russia, New Zealand, Norway, and Poland to name a few. Most of the company’s drugs are not sold over the counter. Wholesale buyers can order products straight from the company’s website. As Mylan is dedicated to maintaining strong client connections thus, they enable their wholesalers as well as distributors to have the best available facilities. As a result, outbound logistics plays a significant role in the company’s geographical marketing mix strategy (Lahtinen, Dietrich & Rundle-Thiele, 2020).

Promotion

CSL Limited: The Company’s promotion first starts with robust market research for the intrinsic needs of specific products in different locations. Following that most of the promotions are done through internal channels in the industry as the company is quite large and is seen as a pioneer it helps them be the first choice for many customers. Moreover, they also broadcast promotional advertisements over Newspaper and internet (social platforms) to create a good brand awareness which helps them in being a relevant leader in the industry.

Mylan: They are unable to advertise their drugs directly as a pharmaceutical company. In theory, marketing pharmaceutical medications involves engaging with medical representatives as well as arranging meetings and conferences with physicians and health care specialists to help in drug promotion. Medical representatives advertise the drug, explain it, and provide complimentary samples, among other marketing materials that helps the company reach its targeted client base as well as target the individualistic demands of specific regions (Thabit & Raewf, 2018).

Demographics

CSL Limited: Being a pharmaceuticals company they do not have any specific demographics that they are following, moreover it may be stated as they are targeting the ailments which they have drugs for. Age, gender, lifestyles are not relevant to this industry as the primary aim is to distribute drugs to all places of their operations and sales to culminate more revenue generation (Nanayakkara, 2020).

Mylan: Same as CLS limited, Mylan being a pharmaceutical company does not have any specific targeted demographics but their ‘Epipen’ does have a target audience as it deals in the allergic reaction in humans and thus they cater promotions targeted to them in all places of their working. But it is evident that most of its client base is situated in the western countries compared to CSL limited whose area of operations are much more diversified (Nanayakkara, 2020).

Conclusion

CLS limited and Mylan N.V both are pharmaceuticals companies which work internationally and this report provides a comprehensive analysis of the marketing strategy used by both the companies to create sales and revenue generation. The report addresses all specific marketing mix components such as Price, place, promotion, product as well as its targeted demographic to portray a comprehensive analysis of the marketing strategies used in the Pharmaceutical industry.

References

Hailu, A.D., Workneh, B.D. & Kahissay, M.H., (2021). Influence of pharmaceutical marketing mix strategies on physicians’ prescribing behaviors in public and private hospitals, Dessie, Ethiopia: a mixed study design. BMC public health, 21(1), pp.1-15. Retrieved from: https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-020-10063-2

Khazzaka, M. (2019). Pharmaceutical marketing strategies’ influence on physicians’ prescribing pattern in Lebanon: ethics, gifts, and samples. BMC health services research, 19(1), 1-11. Retrieved from: https://link.springer.com/article/10.1186/s12913-019-3887-6

Lahtinen, V., Dietrich, T., & Rundle-Thiele, S. (2020). Long live the marketing mix. Testing the effectiveness of the commercial marketing mix in a social marketing context. Journal of Social Marketing. Retrieved from: http://journals.mountaintopuniversity.edu.ng/Marketing/Long%20live%20the%20marketing%20mix.%20Testing%20the%20effectiveness%20of%20the%20commercial%20marketing%20mix%20in%20a%20social%20marketing%20context.pdf

Nanayakkara, N. W. O. K. D. S. P. (2020). Application of Artificial Intelligence in Marketing Mix: A Conceptual Review. Available at SSRN 3862936. Retrieved from: https://www.academia.edu/download/68897799/6._Application_of_Artificial_Intelligence_in_Marketing_Mix_A_Conceptual_Review.pdf

Thabit, T., & Raewf, M. (2018). The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4). Retrieved from: https://www.researchgate.net/profile/Thabit-Thabit/publication/324923406_The_Evaluation_of_Marketing_Mix_Elements_A_Case_Study/links/5aeb827a458515f59981df6e/The-Evaluation-of-Marketing-Mix-Elements-A-Case-Study.pdf