Essay: CSL Limited's Entry Into Indonesian Market Analysis.

1.  The purpose of this assignment is for students to demonstrate a clear understanding of the principles of applying marketing strategy in an international context.

4. The assessment requires student to develop an international marketing plan for a product from an Australian based company to the Asia-Pacific region.

5. The student must choose a company that exists and an existing product that is not currently sold in the country chosen.

6. Products may be, for example, FMCG, food & beverages including alcoholic beverages, technical, medical or clothing.

7. You must choose a country to market to in the Asia-Pacific region.

8. Secondary research and analysis of the market is required to substantiate the recommendations.

9. The marketing plan must address the entry strategy and identification of the target market, set marketing and communications objectives and recommend a strategy across the elements of the marketing mix.

10. A professional level of presentation is expected together with adherence to the word limit. 

CSL Limited's Overview

CSL Limited is an international organization that specialize in human medicine. CSL is a biotechnology institute which do research, creates, manufactures and market their products to prevent serious human medical conditions (Vellas, 2016).

The company was founded in 1916 its headquarters is situated in Melbourne, Australia. The first director of the company was William Penfold, the company commence its operations under the director in WEHI building in Melbourne before relocating to Parkville in 1917. Since then the company has grown significantly. The company has so far tried to achieve the following:

• Creation of tetanus vaccine.
• Development of universal vaccine for tetanus, diphtheria and whooping cough.
• Rapid production and adoption of polio vaccine
• Creation of universal vaccines for animals which prevent enterotoxaemia, blackleg and tetanus.
• Production of immunoglobulin (Rhesus D) which avert haemolytic disease in infants because of incompatibility of Rhesus factor.
• Inventing heat treatment which guards blood from receiving HIV infections

In the year 1994 the CSL limited purchased Commonwealth facility. In 2000 the CSL Limited expanded its size by privatising Swiss Plasma Company. In the year 2004 during the oversupply of plasma the company again purchased Aventis Behring, a German Medical Company. This company had be rang 2^nd public company in Australia to have attain a share price of above $ 100 for each share (Huang & Sarigöllü, 2014).

CSL is currently public limited company and stock is traded on Australian Securities Exchange market. The company is committed to provide long lasting provision of world-class healthcare research and developments. This market plan is aid to give strategy of expanding its market to Asian-Pacific regions.

Political factors has important role in determination factors that may influence the company’s profitability in Indonesia (Hollender, Zapkau & Schwens, 2017). CSL Limited area of operation is mainly pharmaceutical, Life sciences and Biotechnology across many countries in order to differentiate certain perils of political environment. CSL Limited should consider analysing the following factors before investing or entering the Indonesian Market:

• Political stability of the country.
• Importance of Biotechnology, Life sciences and pharmaceuticals sectors in the country.
• Military invasion risk.
• Corruption level more so in in biotechnology, life sciences and Pharmaceuticals regulations.
• Protection of intellectual property
• Favourable trading partners in the country
• Taxation
• Pricing regulations
• Wage legislation
• Regulations of industrial safety.
• Tariffs and trade regulations that relates to biotechnology, Life sciences and pharmaceuticals.

Macro environment like: the inflation rate, rate of saving, foreign exchange rate, interest rate  among other factors influence the aggregate investment and aggregate demand of the within an economy. Micro environment factors like competition norms affects the company’s competitive advantage. CSL Limited may utilize the economic factors of the country like population growth rate, economic indicators like Biotechnological, life sciences and pharmaceuticals growth rate of the industry, consumer spending rate to predict the growth trajectory of the organization (Christodoulides, Cadogan & Veloutsou, 2015). The economic factors which CSL limited must consider while carrying PESTEL analysis are as follows:

• The exchange rates and level of stability of the host country.
• The free market intervention by the government in area related to Biotechnology, Life Sciences and pharmaceuticals.
• Financial market efficiency – ‘’ does CSL Limited need to raise capital in the new market?’’
• Level of infrastructure in the new market
• The unemployment rate.
• Host country’s comparative advantage
• Growth rate of the economy.
• Interest rates
• Skill workforce availability in in the field of medicine.

The method of operations and the society’s culture influence the organization culture within an environment.  Communal attitudes and beliefs of a certain country plays an important role in the way CSL Limited marketers will understand its customers and how they will design the marketing messages for Biotechnology, Life sciences and pharmaceuticals industry consumers. The social factors that need to be analysed by the company before entering the new markets are:

• Demographics and the level of skills available
• Power structures structure and hierarchy factor within the society
• Culture
• The spirit of entrepreneurship in the broad nature of the society. Some encourage entrepreneurship while others does not.
• Attitudes (environmental effects).
• Education level and education standards in the CSL industry.

CSL Limited's Growth and Objectives

Technology is evolving very fast disrupting many industries worldwide. The transport industry is a good example to elucidate the point.  Over the past five years the transport industry has been evolving very fast. The industry for taxi for instance has been dominated by many players such as Lyft and Uber. Car industry on the other hand is heading towards automation led high technology firms like Google and the manufacturing sector has been upset by Tesla which have initiated the  revolution of an electronic car (Griffith & Yalcinkaya, 2018).

An organisation must not only analyse the technological impacts but also the speed in which the technology is disrupting the industry should be considered as well.  Slow speed give an organization time to cope and the vice versa.  The analysis of the technology involves the understanding of the following (Morgan, Feng & Whitler, 2018).

• Technological developments by the competitors of CSL limited.
• Technological influence on the product offering.
• Cost structure impacts in Biotechnology  Life sciences and pharmaceuticals
• Technological diffusion rate
• Influence of the structure of value chain in healthcare facility.

It exist different norms in different markets or the environmental standards which affects profitability of the organization.  Most of the Asian-Pacific regions including Indonesia have several liability clauses in cases such as mishaps and environmental disasters.

Before CSL enter into the new market it should carefully analyse the environmental standards which is required for the operation in the proposed market (Hult et al.2018).

Some of the factors that should be considers include:

• Weather
• Climate change
• Environmental pollution regulatory measures
• Water and air pollution on regulations on Biotechnology, Life sciences and Pharmaceuticals industry.
• Recycling
• Waste management in the industry
• Endangered species etc.

In several countries especially in Asian-Pacific regions, the institutions and the legal framework are not strong enough to guard the rights of the intellectual rights of an organization. CSL company should critical evaluate legal factors before entering the new market. Some of the factors that should be considered include:

• Anti-trust laws in Biotechnology, Life sciences and Pharmaceuticals of the country
• Discrimination law
• Copyright, patent or intellectual property law
• Consumer protection
• Laws regarding to employment
• Data protection law
• Health and safety regulations

1. strengths
2. Biometric industry is among the fast growing industries in the world and it is one of the reliable sectors in Australia.
3. Broad R&D capacity
4. The organization has products like derivatives of blood plasm, antivenom, vaccines and reagents of cell culture.
5. SCL Limited function in a forte segment of anti-venom, genetics, vaccines and many more.
6. CSL Limited product differentiation strategy is due to robust marketing orientation, its commitment to providing quality products and products customization and other support services.
7. There is small turnover among CSL employees who are compensated very well and adored by clients. The relative small size of CSL staff upholds solidarity with clients and co-workers, and adoptive communication and swift responds to the needs of the clients.
8. weakness
9. Its exist diseconomies of scale in CSL company.
10. There are several ethical issues in the genetic field.
11. Huge investment will be required for new entry and also much time will be needed
12. opportunities
13. It has been projected that by 2030 there would be nearly 3.0 billion middle-class buyers in the Asian-Pacific regions. By the year 2030 it is predicted that Asia will be household to many of the global middle class, increase in wealthy individuals and tourist which will be approximately 60% of the international middle-class consumption. A huge demand is expected in the age care and health sectors, natural prevention care and quality food products. For instance medicine in Indonesia has nearly 50 million and is depicted to grow up to 130 million by the year 2030.
14. There is an increase in awareness on the use of enzymes, stem cells etc. CSL Limited may explore more to these areas.
15. Emerging technologies for instance nanotechnology is upcoming which may be joined to create another generation of medicine and technologies in health care sectors.
16. threats
17. Legal strict rules and regulations must be followed
18. Highly skilled labour is needed in the industry
19. Many biotech organizations are emerging in Asian-pacific regions

• Target market A : Direct consumers of Biotechnology, Life Sciences and pharmaceuticals in Indonesia
• Target market B: Healthcare Industry associations in Indonesia which regularly sponsor or hold Meetings: Trade shows, conventions or conferences.
• Target Market C:  Nonindustrial or nonmanufacturing segments of B2B markets with broad consumer network of medical services.

Each of the marketing mix strategies should fit into the coordinated plan with internal consistency and single mission statement.  Before the adoption of this plan, the marketing managers should consider moral obligations of hospital in Indonesia to the society. Furthermore, the Implementation of this plan will need to consider all actors that are operating in the field. These includes: the doctors, the management, donors, patients, the community and many others (Fatehi, Priestley & Taasoobshirazi, 2018).

The professional marketers need to know that healthcare firms are responsible for both society and the culture. The following are the marketing mix strategy that would be applied by CSL Limited.

There are several institutions in Indonesia that offer healthcare services. But each and every institution offer unique products. CSL company would products would be made to be very unique with that products that are already existing in the market. The company will also hire good management and medical staff that would help in the preservation of the integrity of the organization (Sapouna, Dimitratos, Larimo & Zucchella, 2018).

Factors Influencing CSL Limited's Profitability in Indonesia

Healthcare institutions in Asian-Pacific Regions are facing a lot of demands to expand their research activities more so the Hospitals in Indonesia. The CSL Limited would have to undergo redefinition process in order to determine the best and unique service for their clients, the company would then market their product to the specific audience that would be identified.

Product would involve: subscriptions programs which are related to living conditions, both the hospital revenue and the community: recreation and many more, they will also create pre-hospital services.

In the course of marketing analysis for patients, many strategies for trading effectively with the available market would be put in place. The market will respond positive if the company would put more efforts on generating more alternatives.

The ideas of mission and image will be very crucial. If the Image of CSL Limited in the eye of the potential customers is bigger than the ideal, or if the mission statement of the company is very old for the needs of the current market needs, or if the mission is the same with other companies. Changes-repositioning would be necessary. Company’s image is the crucial term.

CSL limited will need to hire marketing consultants and other specialist like advertising agencies or research firms because their expertise would be required. A marketing director would be needed to do task such as assisting in promotional planning, creating communication channels, recruitment among other function that may be assigned to him/her.

It would be very important to hire a marketing manager. The role of the manager would be to monitor, control and gives directives (Watson IV, Weaven,Perkins, Sardana & Palmatier, 2018).

1. Pricing- CSL Limitedwould provide products of high quality and special advertising of products that meet customers’ needs. The value of the CSL products and services would be would be reflected to the companies premium price. The company must consider to be sensitive with the elasticity of the products and the entire consumer demand (McCamley & Gilmore, 2018).
2. Promotion – with the basis of customers reorder in the current state of the company, due to large promotional expenses, the company should aim on offering new product via direct-mail advertising, speciality publication or trade journals (Khan, 2014).

There are several ways in which the CSL Limited will enter into the Indonesian Market. I consider Direct exporting as one of the strategies that will work best. The CSL Limited may decide to create a joint venture. The company may as well licence their manufacturing in the country. There are many factors that influence the choice of the strategy to use, these factors include: tariff rates, product level of adaptation in the new market, transportation cost, marketing costs amongst others. These factors may increase the cost of operation for the CSL Company but I believe that the predicted increase in sales volume will offset the costs. The following are the main entry strategies that would be adopted by the CSL Limited: (Fan, Lau & Zhao, 2015).

Direct exporting: this is the process by which the CSL Company would sell directly to the market. Once the CSL Limited will have established sales program, it will then turn to distributors or agents who would work closing in representing the interest of the company.

Macro Environment Factors

Licensing – licensing is a sophisticated preparations whereby an organizations transfers its rights to the use of its products or a service to another company.  This would be particular suitable strategy for the SCL Limited in a situation whereby the buyer of the license has relatively larger market share in Indonesia (De, 2018).

Franchising – franchising will also work very well for the CSL limited because it have business model which is repeatable, this means that it can be easily be transferred to other markets.

Partnering – CSL Limited will enter the Asian market by working together with other companies. Partnering would take many forms from a single marketing activities to a more sophisticated manufacturing alliance. Partnering would be useful specifically in Indonesia because, the culture social activities are different from that of Australia (Larimo, Zucchella, Kontkanen & Hagen, 2018).

This is whereby the CSL limited will buy a land in Indonesia, construct a facility and do the business. Although this is would be very costly and involves a lot of risk for the company. The risk may involve unsuitable government regulations, high cost of transportation, limited technology and inability to find skilled labour (Hapsari, Stoffers & Gunawan & 2017).

In this field of medicine purchasing of a company by CSL Limited would be appropriate because the company purchased may have a considerable market share or may be a direct competitor.  This entry strategy would provide an immediate status to be a local company and is going to receive many benefits of the local market and an established base of the customers. The company will also be treated by the Indonesian government as to be a local market (Hakansson, 2015).

The following are the CSL objectives.  The main purpose of this objectives is to enable the company to have a focus which can be monitored and plan to meet the main business goals.

• To intensify number of upcoming inquiries that come from the company’s marketing communication operations.
• To grow market share
• To increase volume of sales by exploring new markets
• To target new clients
• To enhance their relationship with their customers
• To enter into the new markets
• To maximize their profit.
• To Project the image of the organization.
• To stimulate a desire or a want.
• To shapes the attitudes of the CSL limited.

A comparison of monetary expenditures and the plan objectives will be involved in this project. The following financial controls and performance standards are suggestion for CSL Limited.

• Total budget billing evaluation and the customer survey will 60% of the promotional budget annually for the first year of operation in Indonesia.
• Budget breakdown in the project will be: 20% will be allocated to the billing cycle, 30 % to survey of customers and the development of market system, and 50% allocation to new market entrance strategies and implementation.
• Each and every project team would be responsible for reporting all the monetary expenditures, including direct expenses and individual salaries for their portion of the project.
• Marketing directors will be responsible for assuring that the project budget is adhered and should report any issues to the president of the company every week. The director of marketing will be responsible for budget redirection as requested by each project leader (Leonidou, Katsikeas, Samiee & Aykol, 2018).
• Each product offering to the new market would be evaluated quarterly to determine the profitability. Expenses of product development is going to be distributed in a period of two years and it will be compared with the total income that will be generated during the same time period (Asseraf, Lages & Shoham, 2018).

To evaluate the effectiveness of CSL Limited marketing plan, it is crucial to compare the actual performance and the plan objectives.  To facilitate the analysis, monitoring measures would be followed for the majority of the operations that will be needed to put the marketing plan into action. The procedures will involve the following:

• The concept of project management would be utilized to analyse market plan implementation by establishing the time needed for the implementation, human and financial resources.
• The planned and the actual activities will be compared perpetually every month of the year and quarterly basis after the implementation of the initial phase.  The company analysis team will report the comparison to the company’s president directly.  
• Each of the project team will be responsible in the determination of changes that should be made in each of the procedure, the focus of the product are business operations in regards to analysis that is carried out within the area (Papadopoulos & Heslop, 2014).

Conclusion and recommendation

As it has been shown clearly shown from the company and market analysis, CSL Company limited has a potential to attain its objectives and also the potential to expand its market to Indonesia.  The company may further expand its market share by in the new market by adhering to the strategies that has been explained in this report.  The following are the recommendations for the company that would aid it to be successful in the new market: (Henseler,  Ringle & Sinkovics, 2009.).

• It should expand its market communication strategies, for instance the use of social media to advice their products
• There is need for proper management to control, monitor and give directives to labor issues.
• It should involve online video sessions for educating their audience on healthcare issues.
• CSL Company should have acquisition and merger with other organizations in order to increase its business and implement the global growth strategy so as to attain long term, sustainable and international portfolio for business (Navarro, Arenas & Rondán, 2014).

Micro Environment Factors

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