2. Problem Statement
Pricing Model
Market Analyses
● Come-up with a new pricing model for Sproxil
● Analysis of competitions’ competitive advantage and customers buying power.
● Conduct market analyses for Sproxil in traditional African market and Indian market.
● Industry to target
● Market analyses of venturing into North American and West Europe.
4. Pricing Models
● Penetration Pricing
○ Price sensitive customers
○ Scaling and difficulty in raising
price in the future
● Price Skimming
○ Targeting only narrow market
segment
○ Higher margin will attract competition
● Competitive Pricing
○ Matching competition price and product is not
differentiated
○ Price war
● Price Customization
○ Legality
● Price Bundling
○ Helps multi-product firm
5. What Matters
To Sproxil
● Maximizing Revenues
To Customer
● Reliability
● Scalability
● Cost
7 Cs of Marketing Strategy
1. Customer - must understand customer and its needs
2. Consistency - must give consistent message to avoid
confusion
3. Creativity - must think about creative way to gain
attention
4. Culture - must understand customer and market
culture and don’t assume
5. Communication - right communication with “no on
your face marketing”
6. Change - ability to change your marketing
7. Channel - ability to connect via correct marketing
channel
6. Pricing Model - Our Recommendation
Data removed to maintain confidentiality
9. Market Analyses
Pharma companies, which want to donate drugs especially in Asian and African
market, want to track and trace its drug.
● Closed and secretive
○ Cost of drug
○ Price of drug
● Incentives:
○ Less requests for lowering prices
○ Decreased risk of copycat companies reverse-engineer their products
○ Opportunity to identify counterfeit products
10. Continue...
● Competition (Global healthcare asset management):
○ Intense competition with high growth in the next 5 years:
■ 8.98bn (2018) to 61.35bn (2025) - 31.6% growth rate by ZiON Market Research
○ Focusing on pharmaceutical donation programs as a competitive advantage
11. Venturing into New Market
CAGE Analysis
Cultural Administrative Geographic Economic
Africa
South Asia
12. Venturing into New Market
CAGE Analysis
Cultural Administrative Geographic Economic
Africa
South Asia
North America
West Europe
13. Market Analyses - Our Recommendation
Data removed to maintain
confidentiality
14. Partner with nonprofits/NGOs - Our
Recommendation
These organizations distribute pharmaceutical companies’ drugs/devices via donation programs,
having expertise in drug/device distribution as well as connections to big pharmaceutical companies.
● Neglected Tropical Diseases program (NTD)
○ under the United States Agency for International Development (USAID)
● Catholic Medical Mission Board Inc.
● Wyoming Medication Donation Program
● Americares
Global healthcare asset management market was valued at approximately USD 8.98 billion in 2018 and is expected to generate around USD 61.35 billion by 2025, at a CAGR of around 31.6% between 2019 and 2025
Possibility of growth opportunity outside Africa.As per our discussion with Shyam, Sproxil wanted us to figure out possibility of entering into new market and to figure out the possibility we did cage analysis- this is nothing but analysis of culture, Administrative, geography and economy of the market in which we want to enter.
We did this analysis and found culturally there is some match between Africa and South Asia. Administration is more or less same. Hierarchical in nature. Govt. is corrupt. Geograph wise there is no match but economy is more or less similar in tems of per capita income.
Partner with non-profits or NGOs that handles drug distribution for large pharmaceutical donations such as Neglected Tropical Diseases program (NTD) under the United States Agency for International Development (USAID) to create business development channels as these organizations have the direct contacts with pharmaceutical companies in terms of drug/device donation. (Source)
