BUSI 330Collaborative Marketing Plan Final Draft Instructions.docx

BUSI 330
Collaborative Marketing Plan Final Draft Instructions
Include the following in your Group Discussion Board Forum:
1. A report with the final Marketing Plan that includes the three
previous drafts, attached as an MS Word file. In addition, this
final MP must include the following sections:
· Marketing Programs & Financial Projections.
You should review pp. 54–55 of the text for examples of the key
issues that should be discussed within these sections of the MP.
You will need a comprehensive marketing program, which
includes a discussion of: the Product Strategy, the Pricing
Strategy, the Promotion Strategy and the Distribution (channels)
Strategy.
The last section on Financial Projections should show a 5-year
projection of expected revenues. In addition, you should present
some type of idea when BE (break-even) will take place.
Companies that introduce new products generally do not make a
profit in “year 1” because of the high development and
marketing costs required to test and launch the product.
Obtaining costs will be difficult, but you should try to estimate
costs.
· Executive Summary (ES)
Finally, once the MP is written, you will need to write the
Executive Summary. The ES is written last but is placed right
after the Table of Contents. You will want the reader to see the
ES first. if they like it, they may read on. If it does not excite
the reader, the MP will likely be discounted. The ES should
contain only the most important findings, conclusions, and
recommendations contained within your plan.
· The Table of Contents
The Table of Contents contains a list of the major sections of
your marketing plan with the names of the group members that

participated in the actual writing of each section. This will
allow the instructor to evaluate each member’s contribution to
the overall group project.
· Appendices
The only Appendix required is a reference list. Keep in mind
that data and key information may need citations, but will
surely require a reference list. A plan with no references will be
considered marginal since information sources add considerable
credibility to the ideas in your plan.
Your Collaborative Marketing Plan Final Draft must be
submitted by 11:59 p.m. (ET) on Friday of Module/Week 8.
Running head: 1
4Group 4-Crystal ArzolaEdwin BrannanLevi ClarkJennifer
HardyBrodee Whichard
Liberty UniversityDraft 1-Marketing Plan
1. Executive Summary
Our marketing plan is for the pediatric rack system used by g-
tube patients to be distributed and sold through the Fortune 500
company, Owens & Minor.
2. Company Description
Owens and Minor was established by cofounders Otho O.
Owens and G. Gilmer Minor in 1882 to provide healthcare
services for the local Richmond community. What started as a
drugstore, in a now historic landmark, quickly grew to buy out
competitor drugstore Bodeker Drug Company in 1954. With this
acquisition, the company briefly changed names to Owens,
Minor & Bodeker, commonly known in that day as OMB. In
present day Owens and Minor has surpassed any expectations
that the origins of the business would ever suggest. Employment
numbers sit roughly at about eighteen thousand, while the
customer base has reached out as far as ninety different
countries. Owens and Minor accomplished consistent business

growth by not ever remaining stagnant. An example of this is
seen in the company’s change of focus coming in 1999. From
the company’s humble beginnings of providing drug products to
the community, it developed into more of a business of medical
supply chain management. Coming with the business’
rebranding, the company introduced a consulting service, which
at that time was innovative for a distribution servicer. The most
recent venture of business growth, coming in 2018, was Owen
and Minor’s purchase of Halyard Health’s business. Throughout
the business’ existence it has remained centered on its customer
base. Even present day their company outline states that “We
provide sustainable supply chain, product and patient solutions
that lower total costs and improve quality of care across the
continuum of care.” (Owens & Minor, 2019). Owens and
Minor’s business model has always aimed to systematically
remove complexity from their services in an attempt to
maximize efficiency and cost-effectiveness, allowing the
business to grow while continuing their trend of putting
customers first. Given the company’s growth patterns, their
expansion strategy has been widely successful.
3. Strategic Focus
Mission
The Owens and Minor mission statement is “to serve the
healthcare industry with dedication, innovation, and a passion
for excellent customer service” (Owens-Minor, 2019). The
company started in 1882 during the period when antiseptic
surgery was in its infancy stage. What started as a drug store in
Richmond, Virginia, has grown to a full line of medical
distribution, supply, and inventory management company.
Owens and Minor serves drug stores to hospitals, medical
transportation, as well as inventory management solutions for
various supply chains. Ultimately the end user of their products
would be anyone seeking healing or in need of medical attention
or medical supplies.
They hosted the first healthcare supplier symposium giving

way to diversity and innovation in the medical supplier field. .
Only one space after periods and punctuation / APA style. Their
vision is one that pairs quality and value in the medical field,
“we see a future where healthcare delivers on quality of care
and financial value” (Owens-Minor, 2019). The use of
technology is a driving force behind their vision for the future
of the company. Through innovative technology breakthroughs
they strive to make inventory and distribution more effective
while cutting costs.
Company Goals
Company goals for Owens and Minor include the following
goals:
· Nonfinancial goals
1. mMeeting and exceeding customer expectations.
2. , nNarrowing adjusted income per share range.
3. , sSelling more products, and investing back into the
company. .
4. Focus on productivity and efficiency operations.
5. Improve customer relations
Edward Pesicka, President and Chief Executive Officer (CEO),
states “We continued to improve our service levels in the
second quarter and are meeting or exceeding most customer
expectations. Finally, we continue to focus on productivity and
efficiency initiatives to drive operating improvement” (Owens
and Minor, 2019). Improving customer relations, productivity,
and efficiency will move the company closer to its financial
goals. They plan to achieve their goals by offering lower costs
to its customers and providing global support in the form of
services and innovative solutions. Secondly, Owens and Minor
remains committed to delivering surgical and infection
prevention products that are superior to their competitors.
· Financial goals
1. From a financial standpoint the company Sis seeking to
reduce costs and become more efficient . .

2. Invest in Fusion5 technologies to provide a value-based
payment services and solution for their customers
3. Their partnership with Fusion5 provides improved quality,
management of payments, shared risk contracts, and a reduction
in cost.
4. Long-term investments into Fusion5 are projected to increase
profitability.
5. Cost reduction efforts are focused towards precise inventory
management
6. “For 2019, the company is narrowing its adjusted net income
per share guidance range to $0.60 to $0.70, which excludes the
impact of currency” (Owens and Minor, 2019).
Cost reduction efforts are focused towards precise inventory
management. Previously, the company dedicated its attention
strictly patient care and the patient. In regard to company
investments, Board of Directors Chairman Robert Sledd asserts
“Long-term success depends on a thoughtful balance of short
and long-term investments so we will invest in the company for
2019 and beyond” (Owen and Minor, 2019). Owens and Minor
will continue to invest in Fusion5 technologies to provide a
value-based payment services and solution for their customers.
Their partnership with Fusion5 provides improved quality,
management of payments, shared risk contracts, and a reduction
in cost. Long-term investments into Fusion5 are projected to
increase profitability, allowing Owens and Minor to focus on
other company goals such as inventory management.
Core Competencies and Sustainable Competitive Advantage
Owens and Minor provide value-addition to their clients
through their services. The company is able to fill the gap in
replenishment and reverse logistics which is great support for
manufacturers. Secondly, the company is compliant and quality
assessors through their procedures and services to ensure they
meet state and federal regulatory requirements and quality
control assurance. Thirdly, the company supports healthcare
manufactures through financial transactions and ordering

through use of other order-to-cash processes and customer
relationship management. Fourthly, the company has succeeded
in their supply chain management through promoting supplier
diversity for the benefit of healthcare institutions and also
producing their private label products called Medi Choice.
Fifthly, the company is strategic through its partnership with
diversity suppliers who support them in innovation and
diversification.
Having a sustainable competitive advantage is key when trying
to market a new product. Our product will sustain a competitive
advantage by being the first of its kind. Due to the fact that the
pediatric RN does not have feeding tubes for babies, Owens and
Minor will be the first to offer this as a product. This will draw
the attention of other medical facilities and want to use our
product. We can also market this product at a reasonable price,
while providing a unique service that has not been done yet.
4. Situation Analysis
SWOT Analysis
The following section will include a Strengths, Weaknesses,
Opportunities, and Threats (SWOT) analysis for Owens &
Minor. The company has many strengths as a medical and
surgical supplies distributor. Owens and Minor offer its
consumers a diverse product portfolio which includes minority,
veteran, and women owned business partners. They are
regarded as having quality products with a strong customer
base. The company operates in over 90 countries to include
North America, Latin America, Europe, and the Asia Pacific.
Their global impact helps Owens and Minor remain a
powerhouse in the medical services industry.
Weaknesses include flaws in their inventory management
system, high attrition rates, and poor cash flow. Over the past
few years the company has struggled with the direction in which
they will strategically evolve. With over 17,000 products,
managing inventory can be a challenge for any company. Poor
inventory management has caused Owens and Minor to not

account for all assets, and have incorrect financial data and
statements. More important, these flaws are felt by the
consumer who expects timely delivery of their products. A high
attrition rate has cost the company money in several areas.
Specifically, recruiting and training. Countless hours are
dedicated to finding the right people and developing them into
model employees, supervisors, and managers. All these factors
have affected the company’s financial portfolio. Owens and
Minor experienced a loss in Net Income totaling $10.5 million
as of June 2019 compared to $183 million around the same time
in 2018 (as reported GAAP). Their cash account is down to $91
thousand in June 2019 compared to $118 thousand in June 2018.
Finally, dividends have been on a steady decline the previous
two years; currently at $0.0075 for the year.
Although Owens and Minor is a Fortune 500 company they have
much room for growth. They have opportunities to further
advance their brand in the global market. Social media has
become a dominant influencer in marketing and branding. A
strong campaign on platforms such as Instagram, Facebook, and
Twitter could prove to be positive and financially rewarding for
Owens and Minor. They have also acquired several companies
over the past 10 years. Due to their cash flow problems they
have an opportunity to realign themselves in the market and
invest in more efficient technology should they find themselves
in financial crisis, or see it beneficial for growth. Owens and
Minor face competitive threats much like all companies. As
technology changes daily, they invest heavily into financial and
inventory management software that offer solutions to their
consumers. They also face competition by new entrants seeking
to become a major player in the medical industry. New entrants
are often times able to undercut Owens and Minor’s cost due to
not have high overhead costs. In today’s era consumers have
(and exercise) more bargaining power than in times past. These
factors pose a threat to their current customer base as they may
leave for a company who offers similar products and services at
a cheaper price.

Industry Analysis
The Owens, Minor and Bodeker situational analysis for
marketing plan of the pediatric feeding tubes will be quite
complex considering the nature of the business. The situational
analysis is a very important element of the general collaborating
marketing plan as it will cover several areas in the organization
assessment and evaluation aspects. The situation analysis in this
case will include SWOT analysis, industry analysis, key
competitors, company analysis and the Customer analysis
(Owens & Minor, 2019)
Owens, Minors and Bodeker has been in operation for
quite a long time and so in order to advance the marketing plan
we will carry out the SWOT analysis which will be evaluating
the internal and external factors that will affect the operation of
the company both positively and negatively. The plan will also
look into areas that may require substantial improvement which
will be the availability of the feeding tubes for the babies which
is one of the main weaknesses of the company.
The next section that the plan will evaluate is the industry
analysis of the company. In this particular aspect the team will
be evaluating the effect the company has on the general
performance of the industry based on the availability of these
feeding tubes. The industry analysis will give the team an
inclusive information about the industry. This will be helping to
study the industrial marketing approach to make the plan more
effective (Büyüközkan, Mukul & Uztürk, 2016).
The key competitors are another sector that is so crucial
for the collaborating marketing plan. This will include looking
into the approach the players are using. The marketing plan is
meant to be competitive, it is therefore important to get to know
more about the opponents the company has in the industry and
the strategies they are employing in their operations. Our firm
lacks the feeding tubes for the babies which makes it vulnerable
competition wise. If the other organizations have this particular

equipment our organization becomes relatively incompetent.
The other aspect of the situational analysis will be the
manner the company is operation in the drug business and the
availing of the feeding tubes. This will give substantial
information on how the company marketing state is designed
and how it will be restructured in an appropriate manner and
one that will be efficient.
The final situation is the customers analysis. This will
include the study of the general state of the company and the
clients the company is handling. The marketing plan will be
dealing with the customers directly; it is therefore important to
have an inclusive plan that puts into consideration the
consumers of the products. For the case of this situation the
consumers are the babies who need to use these tubes.
Key Competitors
The healthcare logistics industry is projected to grow
significantly by 2021. Revenue projections are expected to
reach 93.2 billion. According to medspeed.com “healthcare
transportation/logistics is a burgeoning business with
significant projected growth. IndustryARC estimates that the
global healthcare transportation services market will reach
$93.2 billion in 2021. That reflects a compounded annual
growth rate (CAGR) of 4.17% from $73.48 billion in 2015”
(Medspeed, 2019). The medical industry is every growing and
changing. Baby boomers are getting older and need more care
and geriatric care is increasing. Where there is a demand the
supply will increase, and Owens and Minor provides the
supplies which lowering costs for their customers.
A few of Owens and Minor’s top competitors include
McKesson, Cardinal Health, and AmerisourceBergen.
McKesson seems to be the closest related to Owens and Minor
in that they offer supply chain management as well. McKesson
was formed in 1833 being the oldest of all the competitors and
has been in the industry longer than Owens & Minor, who were
formed in 1882. Owens and Minor continue to stay ahead of

technological needs in the industry and customer satisfaction.
Pairing procurement with their other services such as supply
chain management, distribution, and logistics sets the apart
from their competitors.
Company Analysis
Owens and Minor has been cofounded and owned by the same
family for generations. Due to this, the families have gained
knowledge about the medical supply industry throughout years
of experience. From the time the business was established,
Owens and Minor has made a point of increasing their services
by any means necessary. The business has acquired numerous
competitors, and in doing this has continually adopted newer
and better ways of conducting business. Owens and Minor is
consistently looking for ways to optimize inventory
management as a means of producing more product at a faster
rate for their consumer market. This in turn has led to a greater
business income with which they continue to invest in
improvements having to do with efficiencies in their inventory
programming.
Customer Analysis
The type of customers who are likely going to buy this product
are nurses and other hospitals who are in need of this product.
Since it is the first of its kind, our customers will be many
variations of hospitals who are in need of feeding tubes for
babies. This product is often bought by customers who have a
higher level of education. Our feeding tubes are also purchased
by large companies who own a facility in order to help
newborns and babies. Since there is a way to feed babies now, it
is not very effective and takes more time; therefore, our
customers are looking for convenience and have money to spend
on a product to feed babies through a tube.

5. Product-Market Focus
The five-year marketing plan and objectives for Owen’s and
Minor are customer oriented
and the section below will identify the target markets, points of
difference, and positioning of its new pediatric g-tube unit
called “The Rack” into the medical device market.
Marketing and Product Objectives
Within the medical industry it is hard, sometimes
impossible, to find supplies or products that are both efficient
and affordable for lower income businesses or households.
Owens and Minor has created a Niche within the medical
industry that allows for more efficient products at a market
leading cost. The creation of this niche market has allowed for
Owens and Minor to maintain flexibility in their sales which has
helped in efforts of maintaining customers. Due to a more
specialized market, product from Owens and Minor should not
have to go through head-to-head product placement. Even
though head-to-head would be a great strategy for showcasing
the differences of product pricing and durability, differentiation
positioning would be more effective because of the ability it
gives Owens and Minor to conform to its niche.
“The product manager, sometimes called a brand manager,
manages the marketing efforts for a close-knit family of
products or brands” (Kerin & Hartley, 2019, p. 276). As a
brand manager, the positioning strategy for Owens and Minor
will be head-to-head positioning due to the industry in which
they sell goods. Direct competitors to Owens and Minor
include Cardinal Health, AmerisourceBerge, McKesson and
Ryder System. Due to the diversity of products sold by Owens
and Minor, the marketing strategy is better suited by not selling
to one particular type of customer, or to target specific
customers. The medical services industry is a specialized
market which only attract consumers directly related to this type
of business. The products sold by this company are specialty
products that consumers have to spend extensive time

researching in order to purchase. The marketing strategy will
be unlike shopping or convenience products due to the
requirements of the medical industry.
Products sold by Owens and Minor are specific to hospitals,
clinics, and other medical professionals such as collegiate and
professional level sports medical teams. Pricing is right in line
with industry averages and pose no potential threat from outside
competitors. In order to establish better and more effective
communication with existing and potential new clients, the use
of social media e.g., Twitter, will be used to market products
and the brand of Owens and Minor. Currently, Owens and
Minor is lacking in the social media output department. Brand
loyalty is high with specialty products due to their scarcity in
the marketplace. Often times, consumers do not wish to
substitute quality products with sub-par goods in order to save
on cost. In addition, the place where their products are sold is
very limited. Direct purchasing through Owens and Minor is
the primary method of obtaining goods. Amazon has become a
distribution partner which aids in the marketing and selling of
products.
Target Markets
There are several marketing approaches and strategies that will
be used in marketing these babies feeding tubes. This is a new
product and at the same time the company is offering it to a new
market. The first step that will be considered in this case is the
segmentation and targeting the market for this product. The
company will have to come up with a conclusive strategy that
will ensure that the product makes it through to the market and
in this case the target market is the nursing institutions who
need the product for their clients as well as the parents who may
need the product to help their babies. So in this case the
company will come up with a flexible strategy that will sell to
the medical institutions as well as the individuals. The
segmentation of the targeted market should therefore be well
strategized. This product is generally new to the market it will

therefore be marketed to the prospective clients from all over in
the targeted market.
The marketing plan will be a conclusive one and
considering that these products are getting to the market for the
first time which means it will be a significant piece of work for
the company that will be doing the marketing. According to the
research that we carried out before this it was quite clear that
these items are not available in the market and so there will be
no significant competition for the product. The minimum
competition will therefore give the company less challenge in
trying to balance the issues because they just need to spend a
little in differentiation. In the event that the product faces some
level of competition in the industry in future, we will have to
adjust the quality of the packaging with the brand name to bring
about some differences in the organization and maintain the
company profitability (Owens & Minor, Inc .2019).
The knowledge of the market size is a very important
because it will be quite important in defining the general
number of customers to be served. When the size of the market
to be served is well estimated it even makes it easy for the
company to adjust to enhance the quality of the product and the
quantity of the tubes to be availed to these customers in the
market. The company to be used in the has been in the operation
for quite long. Owen and Minor company is quite known and
using in this particular market plan will work out quite well for
the product.
The final part of this product marketing pan will
include the positioning strategy which will come after selecting
a target market for the product. The target market in this case
has been well selected to incorporate the various probable users
of the product. The target market selection will be so key in the
overall positioning of the product. This will be the final stage of
the marketing plan and in order to enhance the success of the
company and this new product in the market. This part will also
cover the various issues that a brand manager got to face like
the having to deal with the various competition forces in the

industry (Büyüközkan, Mukul & Uztürk, 2016).
The marketing plan is built on five main steps that are meant to
make the process more solid. The first step will be grouping the
potential buyers into segment so as to facilitate the marketing
process and make it more efficient. The next step will be
grouping the products to be sold and in this case there will be
no more of grouping considering there is only a single product.
The third step will be developing a market-product grid and
estimate the size of the markets. This will be key in the overall
valuation. Next will be selecting target market to know where
the product will be taken and analyse them critically. Finally,
will be taking the relevant marketing actions to reach target
markets. They are located in different places and so it will be
important identify the areas where the target markets are located
to facilitate the distribution.
This product is being offered to very open market and so it
means that in as much as there is no significant level of
competition currently, the company needs to prepare for such
forces. It is important to make the marketing mix strategy quite
incorporative to hold all the factors that are necessary for the
company and the product to work it through in the market.
Babies feeding tubes seem to be very important products for the
customers or rather the prospective consumers of the product in
the market. When the product is well positioned it will easily
gain substantial popularity in the market and will remain doing
well for quite a long time.
In conclusion the marketing plan will be summarized by
properly taking the marketing actions to reach the target
markets. These products will have to be marketed continuously
in order to enhance the general organization performance. All
the target markets will be covered in the process. It is important
to cover all the aspects of the product in order to make sure the
various aspects are touched.
Points of Difference

The primary points of difference for this product is that it is
designed for babies. Feeding tubes are not necessarily a new
product. The way that our company is marketing feeding tubes
is what sets us apart from the rest. There has never been feeding
tubes delivery system designed specifically for babies. Being
the first company to market this product is our primary point of
difference.
Positioning
The pediatric g-tube unit called “The Rack” will not occupy the
traditional retail consumer market, it will be positioned in and
around the medical industry, specifically those that handle
surgeries and surgical care for pediatric patients. The unit will
be essential to hospitals and treatment centers for children with
newly implanted g-tubes. Since there is no known product on
the market today that is gentle enough to ease the gassy
stomachs of infants after a g-tube insertion surgery, head to
head positioning is not logical. This is a new product and will
be marketed to pediatric care units, it will involve
differentiation positioning, “which involves seeking a less-
competitive, smaller market niche” (Kerin & Hartley, p. 228).
The plan is once accepted and proven to be effective with the
nurses and caregivers it will promote itself. The positioning
statement for the medical field market:
For the sensitive stomach of infants, comes a feeding system
that will ease the pain and discomfort associated with newly
implanted g-tubes. Owens & Minor is dedicated to providing
the best in the industry, and this new product will change the
way health care providers ease the transition of surgery to daily
feeding.
The Rack would be classified as a medical device product
and since there is already a device on the market for newly
installed g-tubes for adults, unveiling the pediatric version will
soon become a regularly stocked product in all pediatric
surgical units. This product is similar to the adult version but

functions differently so it will be classified as a new product
since “the amount of learning effort consumers must exert to
use the product” would take specialized training to use it
properly (Kerin & Hartley, p. 244). The success in the product
will be the comfort level of the patient. Children are often
cranky and uncomfortable enough immediately after surgery,
then to have extreme bloating and discomfort due to a new
feeding tube on top of that, just causes undue stress on the
infant and family. The Rack will ease the discomfort and
remove any air in the line to aid in the physical transition from
surgery to feedings. Once the product has proven itself to the
test markets, doctors and nurses will demand The Rack for the
follow up care of pediatric g-tube.
References
Büyüközkan, G., Mukul, E., & Uztürk, D. (2016, December).
Marketing strategy selection for logistics companies. In LM-
SCM 2016 XIV. INTERNATIONAL LOGISTICS AND SUPPLY
CHAIN CONGRESS (p. 437).
Craft.Co (2019) Retrieved from: https://craft.co/owens-
minor/competitors
Kerin, Roger A. & Hartley, Steven W. (2020). Marketing: The
Core, Eighth Edition. New York, NY. McGraw-Hill Education.
Medspeed (2019). Retrieved from:
http://www.medspeed.com/?p=2109
Owens & Minor, Inc. (2019) Retrieved from:
https://www.owens-minor.com

BUSI 330Collaborative Marketing Plan Final Draft Instructions.docx

BUSI 330Collaborative Marketing Plan Final Draft Instructions.docx

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