Marketing Plan For IGluco In China Computer Science Essay Help

Introduction

Under normal circumstances, the pancreas secretes insulin to manage blood glucose levels. However, if this function is damaged, patients must manually monitor their glucose levels since, if left untreated, the illness could be severe by causing damage to the eyes, kidneys, nerves, and blood vessels (Tate et al., 2017). However, diabetics find it challenging to control their blood sugar levels due to budget constraints and the lack of trustworthy devices (Tonyushkina & Nichols, n.d.). Therefore, it is necessary to utilize a dependable gadget for monitoring blood glucose levels in order to provide patients with sufficient information for making medical decisions.

Several pharmacological medicines exist to assist diabetic individuals in regulating their blood sugar levels. However, due to market dynamics, the majority of them are useless or unavailable to the vast majority of patients for a variety of reasons, such as excessive costs, product unavailability, and a lack of sufficient understanding on how to utilize them (Tate et al., 2017). In contrast, companies that market invasive glucose test devices have gotten negative feedback from customers who dislike having their skin punctured to obtain a blood sample. As a result, there is a growing preference for non-invasive technologies to measure blood sugar levels. In keeping with this progress, MediCorp has created iGluco, a non-invasive blood sugar testing gadget that can be simply connected to a patient's arm and regularly transmits blood sugar levels.

This document outlines a marketing strategy for the introduction of iGluco to the Chinese market. This assessment focuses on the Asian economy because it is the second-largest healthcare sector in the world (Lu, 2015). In addition, the prevalence of diabetes in the country is significant, which heightens the need for a dependable gadget to precisely measure sugar levels without interfering with the lives of patients. Key components of this report will examine the primary characteristics of the target market, the effect of cultural differences on the business plan, the most effective method of market entry, and the governance standards that will be observed when implementing the recommended solutions.

Marketing Analysis

Market Analysis

Hypoglycemic and hyperglycemic disorders have been designed into a number of medical devices for the treatment of diabetes. The iGluco product from MediCorp might perform the same role because the device is linked to the patient's arm and periodically displays the blood sugar level. The readings might be transmitted to a patient's smartphone, along with further information regarding the proper medical steps. The device is distinct from other devices on the market due to the absence of discomfort. Therefore, the product's primary objective is to assist individuals in modifying their diabetes management and enhancing their quality of life.

The NAICS categorization code for iGluco, 325413, describes its market application. This index was awarded by the North American Industry Classification System, which establishes production standards for the creation of new products in the United States, Canada, and Mexico (Census.gov., 2012). MediCorp is prepared to offer a new solution that will improve diabetes management in China based on this accreditation. iGluco will be positioned as a lifestyle brand that aims to make diabetes treatment more tolerable for patients in order to distinguish it from competing medicines on the market. This phrase inspires the primary tagline that will be used in the product's marketing campaign, which is "No matter how quickly you live your life, iGluco is always by your side." The primary objective of this communication is to persuade customers that the device will simplify their lives, as it will allow them to live normally without the need to perform frequent blood sugar checks.

The product's market success will be primarily determined by the price model. The majority of pricing strategies are governed by cost and profit considerations (SIS International Research, 2020). However, MediCorp will have a pricing strategy that is flexible and informed by income discrepancies in various regions of China. The company's principal competitors, including Shanghai Pharmaceuticals, Sinopharm Group, and Huadong Medicine, sell online medical devices for managing diabetes for an average of $3 to $5. (Alibaba, 2020). Tier 2 cities such as Tianjin, Suzhou, and Hangzhou, which comprise the bottom sector of the market, will pay $3 for iGluco due to their lower per capita income of $6,043. (Center for Strategic and International Studies, 2020). In tier 1 cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, where the per capita income is $30,000, the goods will be marketed for between $5 and $7. (Center for Strategic and International Studies, 2020). This pricing strategy should meet China's diverse economic differences.

The location strategy of MediCorp will be centered on the merging of the company's product distribution network with an existing network located in China. This method is justified by the increased influence of globalization on modern product distribution networks (Tabrizi & Kabirnejat, 2015). The company's placement strategy will therefore be tailored to this digital distribution method. In accordance with this assumption, SIS International Research (2020) recommends that businesses showcase distinctive value components that correspond with the digital domain. Consequently, the company's location strategy will be dependent on the efficiency of integrating its supply chain system onto the virtual platform.

Characteristics of prospective clients and global cultural variations

Patients with diabetes who reside in China are iGluco's primary target market. Diabetes is a lifestyle condition that affects millions of individuals worldwide. China is home to around one-third of the world's population with the disease, according to estimates (Lu, 2015). If placed in the perspective of broader statistics on the prevalence of diabetes in China, the proportion of persons who suffer from the condition in the Asian nation reveals an increase in the prevalence of diabetes in China during the past 30 years. The incidence of diabetes in China is believed to have been 0.67 percent in 1980 but has since climbed to 10.3 percent (Jia et al., 2019). The majority of individuals with diabetes in China have type 2 diabetes. 5% is the reported incidence of type 1 diabetes, according to reports (Jia et al., 2019). Despite the disproportionately high prevalence of type 2 diabetes in China, iGluco will benefit both types of patients by allowing them to monitor their blood sugar levels.

Given that communications, teamwork, and organizational hierarchy are crucial components of international business management, it is essential to comprehend the cultural variations between China and the West that may impact the proposed marketing plan. Culture is the system of rules or ideals to which personnel adhere when completing organizational responsibilities (UMGC 1). Linguistically, the Chinese speak Mandarin and Cantonese, whereas MediCorp's executives speak English. MediCorp is conscious of these linguistic distinctions and will establish two distinct marketing strategies for Mandarin and Cantonese audiences. The ramifications of these cultural variations on the implementation of the suggested marketing strategy are underscored by the requirement to establish synergy inside the business by fostering cross-cultural literacy across the two cultural groups (UMGC 1).

As a tool for establishing effective marketing strategies, Hofstede's cross-cultural framework has been applied to evaluate cultural variations across numerous nations. It rates nations based on their performance on six cultural aspects, including power distance, individuality versus collectivism, masculine against feminism, uncertainty avoidance index, long versus short-term orientation, and indulgence versus restraint (UMGC 1). China performs strongly in terms of power distance and long-term orientation, with scores of 80/40 and 87/26, respectively, as shown in figure 1. (Hofstede Insights, 2020). In comparison, the United States ranks higher in individuality, indulgence, and uncertainty avoidance (Hofstede Insights, 2020).

Figure 1: Hofstede's ranking of nations (Source: Hofstede Insights, 2020)

The aforementioned rankings have substantial implications for the proposed marketing plan because they should impact the administrative and governance styles of the new business and aid managers in predicting the market's reaction to iGluco's launch. For instance, the Chinese people's long-term orientation would make the market more open to the long-term benefits of adopting iGluco. Similarly, the low level of individuality in Chinese society would result in the creation of collectivist marketing methods. For instance, consumers could be persuaded to purchase iGluco for a sick relative or sibling, boosting the product's appeal beyond the primary patient group. The aforementioned cultural variations will also have a substantial impact on the marketing mix of the product, as explained below.

Utilization of Internet networks and social media in e-marketing

Electronic marketing tactics such as social media will form the basis of MediCorp's marketing strategy. These platforms will be utilized to educate individuals about iGluco's applications. Additionally, social media channels such as Twitter and Facebook will be utilized to raise awareness about diabetic complications, including their signs and symptoms. This technique will be applied to build a 24-hour diabetic control unit that emphasizes the significance of gestational diabetes and the necessity of controlling it during pregnancy. All of these characteristics, if correctly incorporated into a larger online network, would significantly enhance iGluco's value to clients and support the pricing strategy outlined in this research.

The primary objective of adopting the social media marketing strategy is to make consumers more aware of the value they would receive by purchasing iGluco due to the device's exclusive technological features. Therefore, technology will be the product's primary value proposition. Its success hinges on the integration of these value factors into the company's design, marketing, and delivery operations to provide a significant competitive advantage over competitors whose marketing strategies only superficially integrate the same value elements. MediCorp will evaluate the effectiveness of the marketing plan based on key performance indicators that will be dependant on effective product engagement and favorable market feedback in order to track the performance of the aforementioned promotion approach.

Management and CSR

MediCorp's governance and CSR initiatives will be led by the need to integrate shareholder and stakeholder perspectives within a larger and more informed framework of value maximization. This governance principle is the result of an ongoing dispute between the necessity to maximize shareholder value as the fundamental goal of corporate existence (Value Chain, 2005) and the desire to adopt a comprehensive framework of management that serves the needs of all persons or parties concerned (UMGC 2). This management assumption emphasizes the significance of CSR for MediCorp when it enters the Chinese market, as it must demonstrate to its stakeholders that its activities are not only profit-driven but also socially responsible. Consequently, its management philosophy will be governed by the requirement to have a beneficial social and environmental impact on the community. As a commitment to the development of local medicine, the corporation will sponsor health research in several fields of Chinese medicine.

MediCorp will also provide free healthcare screenings for diabetic Chinese patients and offer supplemental medical advice to individuals who may want it. These events will be held annually in various locations of China. The objective is to reach a large audience and raise diabetes management awareness. This objective aligns with the purpose of this marketing strategy, which is to promote iGluco. Consequently, MediCorp will achieve both its profit and CSR objectives through the adoption of the governance and CSR structure outlined in this paper. The necessity to preserve governance and accountability norms will be well balanced by this management style.

Financial Forecasts

This section of the research will predict MediCorp's market share, break-even point, and revenue projections for the following three years. The company's break-even analysis is presented in Table 1 below.

Break-Even Analysis

Table 1 Profitability analysis (Source: Author-developed)

Prepared By: Organization Name:

Creator MediCorp

Gross Margin to Sales Ratio

Gross Profit Margin of $4,999,980

Total Sales $ 49,999,800

10.0% Gross Margin/Total Sales

Total Fixed Expenses

Payroll $ 4,745,854.80

Expenses of Operation: $ –

Operating + Payroll $ 4,745,855

Breakeven Sales in Dollars (Annual)

10.0% gross margin of sales

Total Fixed Expenses $ 4,745,855

Annual Profitability Amount $ 47,458,548

Breakeven Monthly Amount $ 3,954,880

The break-even sale was calculated using the total fixed expenses and the gross margin percentage of sales, as shown in Table 1. With a break-even value of $47,458,543 per year, MediCorp would require monthly sales of $3.9 million to be profitable.

Market share and projected sales

The Chinese pharmaceutical sector is very competitive as a result of the presence of a large number of firms that provide alternative goods. Shanghai Pharmaceuticals, Sinopharm Group, and Huadong Medicine, as noted in this document, are MediCorp's principal competitors. Figure 2 illustrates MediCorp's predicted market share relative to the aforementioned competitors.

Figure 2. Market share (Source: Developed by Author)

As stated previously, MediCorp is anticipated to hold an 8% market share. This percentage of representation is valued at around $3.6 billion (Lu, 2015). To reach the aforementioned market share in China, MediCorp must develop an aggressive sales strategy that generates sufficient income for expanding the market. In table 2 below, the annual estimates for the next three years are underlined.

Table 2. Sales projections (Source: Author-developed)

Annual Totals Year Two Sums Year Three Sums

Beginning Balance

Funds Flows

Gross Cash Receipts: $ 54,999,780 $ 60,499,758

Credit Receivables $ – $ – $ –

############ Total Cash Inflows $ 54,999,780 $ 60,499,758

Funds Outflows

Investing Exercises

New fixed asset acquisitions $ – $ – $ –

Additional supplies $ – $ – $ –

Cost of Goods Sold $49,499,802 $54-447,782

Functional Activities

Operating Expenses $ – $ – $ –

Payroll ############# $ 5,533,826 $ 7,049,361

Taxes $ –

$ –

Finance Operations

Loan Settlements $ – $ – $ –

Ownership Dispersion $ – $ – $ –

Interest on Credit Lines $ – $ – $ 16,457

Credit Line Repayments $ – $ – $ –

Dividends Paid $ – $ – $ –

############ Total Cash Outflows $ 55,033,628 $ 61,515,600

Cash Flows Net $ 254,125 $ (33,848) $ (1,015,842)

Operating Cash Position

Line of Credit Withdrawal $ – $ – $ 695,565

Last Cash Balance – – –

Balance on Credit Line – – –

According to the aforementioned data, MediCorp is projected to generate revenues of $54 million and $60 million in the final two years of the forecast, respectively. The company is not projected to generate any income in its first year, but it will receive a cash infusion of $254,125 to cover basic running expenses. In its second year, the group is projected to earn approximately $54 million, with succeeding years perhaps exceeding this amount.

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