International Marketing and Digital Media Essential Factor

Question: Discuss about the International Marketing and Digital Media of Essential Factor. Answer: Introduction Marketing is an essential factor for the success of an organisation or product in a new market. Marketing involves different strategies that are used to promote a new product or brand in the market. Hence, here comes the importance of a marketing plan (Singh Krishnamurthy, 2015). The marketing plan has been developed to present the situational analysis for Revital in the Australia market and develop objectives and strategies to promote the brand. Furthermore, the paper will present the tactics that are used over the digital marketing platform to promote Revital among the internet users. Finally, the plan will present the estimated budget and the performance indicators to proceed with the marketing activities according to the plan. Company Product Background Revital is a Daily Health Supplement Product produced by Ranbaxy. It is an Indian Multinational Pharmaceutical firm operating in different parts of the world. Analysis shows that the Ranbaxy has been selling its products in around 125 countries across the world with its manufacturing sites at eight major countries. Currently, the company has planned to target Australia as a new market for its product Revital which is a well known brand across the world. Ranbaxy will proceed with marketing of Revital with its common tag line One Capsule a day keeps you fit and active all day ("Revital Capsule Benefits Side Effects in Reality", 2016). The product offers different advantages for the adults of all age group and the brand has different products for men and women. Situational Analysis SWOT Analysis 3.1.1 Strengths Revital contains different nutrients that fulfil the daily need of a human body. It contains around 20 essential nutrients ("Revital Capsule Benefits Side Effects in Reality", 2016). The product supports the need of the people due to huge change in the lifestyle. The product has a global recognition. There are very less products in the market with such reputation and brand value (Strauss, Frost, Strauss, 2011). Weaknesses It only offers oral dosage that acts as a weakness of the product ("Revital Capsule Benefits Side Effects in Reality", 2016). The product targets geriatric people who are busy in their life schedule. Australia is a new market with huge level of competition for a pharmaceutical product (Pride Ferrell, 2012). Opportunities The nutrients offered by the product provide different benefits to the customers. It is a highly recommended product by the doctors to the people who are busy with their daily life. Hence, it provides a good opportunity for the company to grow its business in the Australian market (Polonsky, Zeffane, Medley, 2012). Revital can be consumed by people who are more than twelve years of age. Threats There are number of other supplement products available in the market that tends to provide huge competition to Revital. Four Cs Analysis Customer Ranbaxys Revital is one of the exclusive nutrition supplement product to be introduced in the Australian market. The digital platform has provided the company with a vast marketplace to sell the product (Pollard Diggles, 2016). The target customers for the product are cautious about their health in the busy and hectic lifestyle. Therefore, such nutrition supplement products can become popular in the target market. Also, the digital marketing will provide more description of the product to the consumers to encourage their purchasing behaviour. Company The Sun Pharma Group has got a massive market of controlled medicine substances and speciality products in Australia. The organisation has followed the Australian Therapeutic Goods Administrations (ATGA) standards to provide effective medicines at an affordable price range ("Sun Pharmaceutical Industries Ltd.", 2016). The organisation has got online product selling channels to reach out to the customers. Along with that, the company has got strict control over the cost of products and healthcare professionals to deliver effective generics and health supplement products to the consumers. Competitors There are a huge number of local competitors present in the Australian market. Hence, the people will trust the local brands with better brand value in the current market. One of the major competitors of Revital is Nutricharge. The rival brands offer products that contains more essential nutrients (McMahon, 2015). Furthermore, it can be seen that the price charged by the rival brands are comparatively higher because of speciality in those products. Along with that, there are several companies that offer injections and other supplement products that provide a huge competition to Revital. Change The changes in the market can be identified by conducting an external market analysis. A PEST analysis has been presented below to discuss the changes in the Australian market. Political Factors: The change in the commonwealth government in Australia has resulted into changes in the rules and regulations of carrying business in the market. It can be seen that the company needs proper licensing to deal with pharmaceutical products (Burritt, 2012). Along with that, the increase in taxes over pharmaceutical products has made it difficult for Ranbaxy to control the price of Revital. Economic Factors: Currently, a financial downfall can be seen in the Australian economy that has resulted in decline of the buying power of the consumers. Furthermore, the current rate of competition and free entry of new companies with proper licensing has lead to difficulty in growing the pharmaceutical business in Australian market (Layton, 2011). Social Factors: The people of Australia have turned busy with their changing lifestyle and daily pressure of work. It can be seen that people aged above forty mainly consume the product because of their daily life schedule (Ewing, 2012). Hence, there is a need of proper marketing to promote the product and make it consumed by lower aged people. Technological Factors: With advancement in technology, people of Australia have become regular user of internet media. Hence, there is a need of digital marketing strategy that will enrich the brand value and increase the market reach of the product (Layton, 2011). Key Issues The key issues that can be observed by analysing the current market situation are presented herein below: The product is mainly consumed by customers aged above forty years. It is important for the company to concentrate on digital marketing for better promotion of the product and increase its market reach (Kotler, 2009). There is a need of competitive pricing policy to fight the battle of immense competition in the market (Ewing, 2012). The company needs to have proper licensing and certificate to trade in the Australian market. Objectives and Strategy SMART objectives Specific The specific objective of the product introduction is to promote the health benefits and description of the product in the Australian market. Meanwhile, the product brand must ensure that the digital online media marketing will generate maximum promotion at the initial stage (Chaffey, 2007). The focus should be on identifying the appropriate target demographics in the vast market. Measurable In the case of measurable objective, the primary aim is to ensure 5% return on investment within the first three years of the product launch in the Australian market. As the major business will commence on the online system, the response of the target audience and customer spending on the product must be recorded during the first couple of years (Chaffey, 2007). Attainable One of the most achievable goals of the business is to promote online registration process so that maximum numbers of retailers and customers can buy the product online (Chaffey, 2007). At the same time, significant marketing of product must be done to create the brand identity in the target market area. Relevant Some of the relevant strategic plans have to be set so that decisions on merger and acquisition can be made within the first six months of the business. In this way, mergers and business acquisition with local pharmaceuticals companies will provide the firm identity of the product from the very beginning (Chaffey, 2007). Time-oriented Time-oriented objectives are critical for the business to make sure of the proceedings. Within the first couple of months, active promotions and digital media marketing have to be commenced so that the expectations from the product can be materialised (Chaffey, 2007). After six months time, new mergers decision will be focused to increase business prospects and brand awareness. Strategy A channel strategy must be promoted to develop significant research on customers behaviour and activity of the marketplace. Along with that, information must be collected on intermediates, market competitors and distributors to manage supply chain management. The marketing strategy of the product must include definite communication channel so that target customers of the product can be encouraged to use the product for health benefits (Clarke Flaherty, 2015). At the same time, the management requires managing channel integration for market development. As the organisation has selected to use digital marketing, the company must identify the sales target and leads from the developed network. After the targets are set, events can be prioritised. Also, the offered budget for acquisition, business development, product promotion and conversion must be identified to make definite changes. The digital media marketing must enhance the popularity of the brand within the target demographics (Clarke Flaherty, 2015). Hence, prioritisation of the target audience and available products must be needed in the digital marketing strategic plan. Tactics Different digital marketing tactics can be used by Ranbaxy to promote the Revital brand in the Australian market. It is used to spread awareness, acquire a good position in the market and convert the approach into sales (Hoxie, 2011). The major tactics that will be used by the company are discussed herein below: Awareness: This tactics are used to create awareness among the target customers. The different types of awareness tactics are presented below: Social media marketing: Social media advertising is an essential medium of marketing a product in the new sector (Gupta, Massisimo, Koontz, 2013). It increases the reach of the product by enhancing audiences who are not regular user of television and printed media. It will cost the company around $24,000 yearly. Newsletter and direct mailing: Newsletter advertisement is used to target potential customers using the search information of the customers interested in supplement products. It cost the company around $12,000 yearly. Search Engine Optimisation and Google AdWords: SEO is a way of reaching customers through advertising the brand over search engines like Google and Yahoo. It also advertises the brand over other websites. Acquiring: Acquiring tactic is used to acquire a good market positioning. The acquiring tactic is presented below: Company Website: Ranbaxy needs a website to present all details about the product. The website will act as an e-commerce platform that will allow customers and retailers to buy Revital and others products of the company (Gupta, Massisimo, Koontz, 2013). It will cost the company around $10,000 in the beginning. Website helps to create a good reputation and brand positioning in the market. Conversion: Conversion tactic is used to convert sales approach into final sell that can be done through SMS and telemarketing. SMS and Telemarketing: SMS and Mobile marketing will be used to target people already using supplement products (Hoxie, 2011). It will cost the company around $12,000. It is important to see that final sales are generated through this technique. Budget Cost breakdown The cost breakdown for the planned e-marketing tactics is presented herein below: Marketing Monthly Budget Particulars Annual expenditure STAFF OR SERVICES (I.E. CONSULTING) Salaries $ 102,000 Benefits $ 13,200 STAFF SUBTOTAL $ 115,200 WEBSITE Hosting $ 1,200 Design/Development $ 5,000 E-Newsletter Distribution $ 2,700 Search Engine Submission $ 1,100 WEBSITE SUBTOTAL $ 10,000 PROMOTIONS Social media advertising $ 25,000 Direct Mail (print and email) $ 7,300 Telemarketing $ 12,000 Google AdWords $ 3,700 PROMOTIONS SUBTOTAL $ 48,000 TOTAL $ 173,200 Monthly budget The monthly budget for digital marketing has been presented herein below: Monthly Marketing Budget JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL STAFF OR SERVICES (I.E. CONSULTING) Salaries $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,500 $9,500 $9,500 $9,500 $102,000 Benefits $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,300 $1,300 $1,300 $1,300 $13,200 STAFF SUBTOTAL $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $10,800 $10,800 $10,800 $10,800 $115,200 WEBSITE Hosting $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200 Design/Development $5,000 $5,000 Newsletter Distribution $700 $650 $700 $650 $2,700 Search Engine Submission $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,100 WEBSITE SUBTOTAL $5,100 $200 $900 $200 $200 $850 $200 $200 $900 $200 $200 $850 $10,000 PROMOTIONS Social media advertising $5,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $25,000 Promo Items $0 Direct Mail (print and email) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $300 $7,300 Webinar $0 Telemarketing $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $12,000 Google AdWords $400 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3,700 PROMOTIONS SUBTOTAL $5,400 $5,300 $2,300 $5,300 $3,300 $5,300 $2,300 $5,300 $3,300 $5,300 $2,300 $2,600 $48,000 TOTAL $19,500 $14,500 $12,200 $14,500 $12,500 $15,150 $11,500 $14,500 $15,000 $16,300 $13,300 $14,250 Annual Total $173,200 Financial KPI The financial KPI that must be achieved with the planned e-marketing tactics are discussed herein below: Sales Growth: It is estimated that the company will have spend around achieve around double of the money as revenue that is spend on the e-marketing tactics (Hackley, 2010). This will increase to around 5 times by the end of 6th month and 10 times by the end of 12th Lifetime Value of a Customer: It is important to see that the lifetime value of the customers must be as high as possible (Hackley, 2010). A single customer must provide minimum 5 transactions to the company. Cost of acquisition: The cost of acquisition must be as low as possible. A single tactic must help the company to reach highest possible customers (Hackley, 2010). Phased Return on Investment The estimated phased return on investment made on e-marketing tactics is presented herein below: Phased Return on investment (Single Phase = 3 months) Particulars Phase 1 Phase 2 Phase 3 Phase 4 Investment on Tactics $ 46,200 $ 42,150 $ 41,000 $ 43,850 Net profit earned $ 18,480 $ 105,375 $ 102,500 $ 263,100 Phased Return on investment 40% 250% 250% 600% Top Level Benefits Top level benefits that must be provided by the planned e-marketing tactics are discussed herein below: Social media marketing: It is estimated that the social media marketing will help in creating awareness among the target customers. It will help to earn around 25% of the sales target. Newsletter and direct mailing: Newsletter and direct mail will help in awareness concern. It will create around 25% of the targeted sales (Harris Dennis, 2008). Search Engine Optimisation and Google AdWords: SEO and Google AdWords will provide around 20% of the target sales. Company Website: Company website will be used to retain old customers who are aware of the product. It will provide 30% of the target sales in the first month (Harris Dennis, 2008). SMS and Telemarketing: SMS and telemarketing will be used to convert the sales approach to final sales. Hence, it has 100 percent utilisation in the e-marketing plan. Sales and Profit analysis It is targeted that the company will earn around $946,650 as revenue in the first year that will lead to a profit of $489,455. The projected revenue and profit figures are presented in the table given below: Projected Revenue and profit Particulars JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL Revenue $ 39,000 $ 29,000 $ 24,400 $ 72,500 $ 62,500 $ 75,750 $ 57,500 $ 72,500 $ 75,000 $ 163,000 $ 133,000 $ 142,500 $ 946,650 Cost of Goods Sold $ 3,900 $ 2,900 $ 2,440 $ 7,250 $ 6,250 $ 7,575 $ 5,750 $ 7,250 $ 7,500 $ 16,300 $ 13,300 $ 14,250 $ 94,665 Gross Profit $ 35,100 $ 26,100 $ 21,960 $ 65,250 $ 56,250 $ 68,175 $ 51,750 $ 65,250 $ 67,500 $ 146,700 $ 119,700 $ 128,250 $ 851,985 Administrative expenses $ 7,800 $ 5,800 $ 4,880 $ 14,500 $ 12,500 $ 15,150 $ 11,500 $ 14,500 $ 15,000 $ 32,600 $ 26,600 $ 28,500 $ 189,330 E-marketing expenses $ 19,500 $ 14,500 $ 12,200 $ 14,500 $ 12,500 $ 15,150 $ 11,500 $ 14,500 $ 15,000 $ 16,300 $ 13,300 $ 14,250 $ 173,200 Total expenses $ 27,300 $ 20,300 $ 17,080 $ 29,000 $ 25,000 $ 30,300 $ 23,000 $ 29,000 $ 30,000 $ 48,900 $ 39,900 $ 42,750 $ 362,530 Net Profit $ 7,800 $ 5,800 $ 4,880 $ 36,250 $ 31,250 $ 37,875 $ 28,750 $ 36,250 $ 37,500 $ 97,800 $ 79,800 $ 85,500 $ 489,455 Conclusion Effective digital marketing can create significant market opportunities and new business proposition for Ranbaxys Revital in the Australian market. As the current set of Australians are looking for nutrition supplement products for their health, the product will be a success in the target market. Therefore, marketing of the product in the target market area will be a crucial factor. The company has effectively identified the other available nutrition supplement products so that the product can impress the target audience providing health benefits. The analysis of the report also describes the business benefits and probable market share of the product providing target sales, profit and return on investment. References Burritt, R. (2012). Environmental reporting in Australia: current practices and issues for the future.Business Strategy And The Environment,11(6), 391-406. https://dx.doi.org/10.1002/bse.343 Chaffey, D. (2007).Total e-mail marketing. Oxford: Butterworth-Heinemann. Clarke, I. Flaherty, T. (2015).Advances in electronic marketing. Hershey PA: Idea Group Pub. Ewing, J. (2012). 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