Market entry technique for advancis medical

In this article, I will be discussing about a pharmaceutical manufacturer called 'Advancis Medical', its products, marketing strategy and market planning needed for the business to enter a fresh market in another country.


Founded in 1979 and located in Nottingham UK, Advancis Medical is a pharmaceutical manufacturer which offers a wide range of wound care products which may have good clinical efficacy and are simple to operate and also have superior performance. Having around 125 employees, the worth and quest of Advancis Medical is to design and manufacture dressings to be able to manage the wound environment and achieve perfect wound recovery by: -

Minimizing bacterial burden

Creating a damp wound environment

Leaving the wound as undisturbed as possible

Achieving and acceptable aesthetic consequence for the healed wound

(advancis. co. uk, online source of information)

Product and market character

Advancis Medical offers a wide range of dressing products which can be categorized the following: -

Activon medical Manuka honey dressings

Activon Pipe, Activon Tulle, Algivon, Actilite, Actibalm.

Silfix soft silicone dressings

Episil, Episil Absorbent, Silflex, Advazorb Border, Siltape, Advasil conform, Eclypse Adherent, Eclypse Adherent Sacral.

Advanced wound treatment dressing

Eclypse, Eclypse Boot, Advadraw, Advadraw Spiral, Advazorb Plus, Adva-co, Advasoft, Kikuhime.

Advancis Medical has been able to make its product famous in the market. Recently this season, the company has walked away with the innovation award in Medlink East Midlands Innovation Competition. According to the sales and marketing director of Advancis Medical, the new products have had an excellent reception on the market.


Advancis Medical distributes its product in various countries. They are Greece, Sweden, Norway, Denmark, Republic of Ireland, Slovakia, Saudi Arabia, Iran, Jordan, United Arab Emirates, Kuwait, Qatar, Bahrain, Oman and 22 other countries as well. Advancis Medical aims for ongoing improvement in the performance. The company is committed to do something best, most complete, and most reliable and most timely way possible. Then it'll make an effort to think of ways to do it better next time. The company measures its performance carefully, ensuring that integrity and value for people should never be compromised. It desires to entice the highest-calibre employees, providing them with opportunities to develop to their full potential also to share in the success that originates from winning in the marketplace (advancis. co. uk).

2. International marketing planning

International marketing is set of activity where in fact the marketing of goods and services are completed across national border. Having look from the UK's perspective, export activity appears to be the significant element in international marketing activity. An international marketing planning originates from the firm's commercial strategy and includes issues like product setting, branding strategies, selection of aim for countries and methods had a need to enter the new marketplace and so on (Lancaster G. , et al. , 2002).

2. 1 Internal and Alternative Analysis

It is necessary to analyze the surroundings around the business to broaden internationally. Here, I am speaking about about BCG analysis as an internal evaluation. BCG (Boston Consulting Group) examination is used to analyze their products and business range. The BCG research helps the company in allocating resources and acts as an analytical tool in brand marketing, product and tactical management.

Source: (Bensoussan B. E. , Fleisher C. S. , 2008)

Having go through the above chart, Actors are high development businesses or products in markets where they can be strong weighed against the competition. In Advancis Medical, Activon Honey product works like a legend. They have high market show as well as high growth rate. Cash cows are low-growth businesses or products that includes a relatively high market share. These systems are adult and successful businesses with relatively little need for investment. Products like Eclypse, Eclypse Boot of Advancis Medical are cash cows. They need to monitored and need little investment. Question grades are items or products with low market show but which operate in higher progress markets. Which means that they may have potential, but may require substantial investment in order to grow market share one of the competing and powerful competitors. As far as I am worried, Advancis Medical has no specific products to match this unit. Pet dogs refer to products or business which may have low relative show in low development markets. Silfix smooth silicone dressings of Advancis Medical will be the products that become dogs.

Performing an external analysis, PEST (Political, Economic, Social and Technological) factors will be taken into consideration for Advancis Medical.

Political: - The industry has witnessed increased political attention due to the increased recognition of the economical importance of health care as a component of cultural welfare over time. Political interest in addition has been generated as a result of increasing communal and financial burden of healthcare. UK's National Health Service argument is an example.

Economic: - Inside the 10 years to 2003, the pharmaceutical industry observed high value mergers and acquisitions. Which has a projected stock value expansion rate of 10. 5% (2003-2010) and HEALTHCARE expansion rate of 12. 5% (2003-2010), the audited value of the global pharmaceutical market is estimated to reach a huge 500 billion us dollars by 2004. Majority of pharmaceutical sales originate in america, EU and Japanese marketplaces.

Social: - A healthy body is an important personal and cultural requirement and the initial role pharmaceutical companies like Advancis Medical play in interacting with society's need. Recently, the impact of various global epidemics e. g. SARS, Supports etc has also drawn popular and advertising attention to the industry. The result of the intense media and politics attention has led to increasing industry attempts to create and maintain proper government-industry-society communications.

Technological: - Latest medical and technological advancements in knowledge are forcing industry players to adjust ever faster to the evolving environments where they take part. Scientific advancements have also increased the need for increased shelling out for research and development in order to encourage invention (Johnson G, Scholes K, 2002)

2. 2 SWOT Research of Advancis Medical


Advancis Medical listens to the issues and problems elevated by clinicians and its customers and response accordingly by developing the correct and suited products.

Good marketing power in major geographical areas.

Recently, the company won an development award which demonstrates its strength in sales and marketing sector.


Discontinuation of products in the last mentioned periods of development resulting in customer dissatisfaction.

Pricing strategy which turns out to be comparatively expensive.


Emergence of involved global market segments and globalization for new products

Increasing demand of anti-bacterial honey products like Activon medical manuka honey.

Individual brand setting which makes their product different on the market.


Increased competition in market segments and cheaper alternate methods found in the market segments can be a possible risk to Advancis Medical.

Rising raw materials and transportation costs which might increase the development cost of the company.

(Petryna A. , et. al. , 2006)

2. 3 Marketing goals and objectives

Besides increasing sales and profit as a marketing goal, Advancis Medical has other marketing objectives. The business highly targets these following marketing targets: -

Gaining choice on brands and services

Patient Education

Customer retention by giving quick response to their queries and requests.

Complying with the guidelines and regulations set by authorities.

Some major known reasons for Advancis Medical to research for the marketplace internationally are stated the following: -

The company requires a larger customer foundation to get economies of size.

Advancis Medical wants to lessen its dependence on any sole market.

Due to the high competition in the home market, it's profitable for the company going global and sell their products.

Because of the economical recession, some other foreign market segments have higher profit opportunities than the domestic market.

2. 4 Marketing Strategy

Here, Ansoff Matrix will be centered as a marketing strategy for Advancis Medical. Ansoff matrix is an instrument which helps the business to choose their product and market growth strategies.

Market Penetration is a growth strategy where the business focuses on selling existing product in existing marketplaces. IT helps in maintain or increasing the marketplace talk about of current product. Product development is the strategy in which a business aims to introduce services into existing markets. Market development is development strategy for a small business in which a company looks for a new market to sell its existing products. Here, Advancis Medical will be choosing this plan, as the business is wanting to sell its product at a global market. Under this strategy, Advancis Medical can perform various activities to aid the strategy by: -

Increasing the global market show by distributing its product to more physical areas and centralized logistics.

Expanding and or distributing products to china and other growing markets.

Improving international brand position and setting through effective international marketing promotions (Bennett R. , Blythe J. , 2002).

Diversification is a growth strategy where a business launches and markets new product in new market. This is comparatively dangerous because the business enterprise is moving into markets where it has little or no experience (teacher2u. online, online source of information)

2. 5 Market evaluation and Market choice

Advancis Medical as a pharmaceutical company can segment the marketplace and plan its market research by categorizing its customer into walk in customer (who actually visit the syndication centre) and mail order customer (who order the product). Now after the market has been segmented, it's important to investigate which market to go. Basically market research involves concerns like: -

Demographics such as get older structure, religious groupings, average home size of this marketplace.

Macroeconomic affects like fluctuation in GDP, unemployment rate, etc.

Consumer behaviour on cultural attitudes, educational levels, average income and living standards.

Market choice is a primary strategic decision. This survey is dependant on selling the merchandise abroad rather than in Europe, thus I will be concentrating on Asian countries/market. China, India, Pakistan and Philippines will be the four countries which will be taken into account. Out of four countries, one will be chosen for Advancis Medical to sell and distribute their products.



Political and Economic

Trade Regulation

Investment Climate







7. 5





8. 5


7. 5




5. 5

5. 5



5. 5



5. 5


The above ideals are believed out of 10 factors. And having looked at the stand, India is the mark country for Advancis Medical to market and disperse its product since it gets the best factors out of these four countries.

Source: - (china-window. com; online resource seen at 9th November 2010), (buyusa. gov; online source of information seen at 9th November 2010)

(Ernst & Young Private Limited, 2008)

(Hahn N. , 2008)

(Gorrill J. R. , 2007)

3. Market Admittance Strategy

Basically, market access strategy is a well planned solution to deliver and or send out the merchandise in the prospective market.


As it has been discussed previously about market entry strategy, there are various methods to permeate and enter a new market. The marketplace admittance strategy methods available to Advancis Medical are as follows: -


Indirect Exporting

Direct Exporting


Joint Ventures

Direct Investment

The traditional, normal and easy way to go into a foreign market is exporting which include indirect and immediate exporting. In indirect exporting, the business works through independent intermediaries. Indirect exporting has two advantages. It consists of less investment and less risk because the business doesn't have to build up department for exporting, overseas sales team or any international connections. Immediate exporting includes exporting of products and its own distribution through the channel of export agent. It is done in various ways: Domestic-based export section, overseas sales branch, exploring export sales division and foreign-based agents.

Licensing is another simple way to do international marketing and permeate the market. It's the method of overseas operation in which a firm in a single country gives agreement to company of a different country to make use of the manufacturing, finalizing, brand and other skills provided by the licensor. Joint ventures can be defined as an organization where foreign buyers may sign up for with local investors and share possession and control over the privileges, operation and property. The ultimate way to getting involved in overseas market is immediate investment that involves direct ownership of foreign-based making facilities (Kotler P. , Keller K. L. , 2006)

Country Profile

As it has been discussed previously going 2. 5 of this record, India has been chosen as the prospective country. India is a natural subcontinent covered by the Himalayas in the north, the Arabian Sea in the west, the Bay of Bengal in the east and the Indian Ocean in the south. It has a land frontier of 15, 200km and a coastline of 7, 517km. India is the second most populous country on the planet with 1, 130 million people in July 2008 (estimated). The literacy rate is 65% with a great degree of regional deviation. Hindi is the official language of the united states and English is used almost everywhere in India performing as an associate official language in business sector. India has a parliamentary system of government with two legislative physiques; the central federal and the state government. The country's money is Indian rupee (INR). The country's banking system is managed and monitored by the Reserve Loan company of India. India's economy is rapidly increasing in the global market. So, it is very productive for organizations to export, commit or do joint venture in India (Ernst & Young Private Small, 2008).

Analysis of market admittance strategy and making choice

Market access methods




- Making is home based, so it's less high-risk.

- Has an opportunity to learn foreign market before committing.

- Less or lose control over the foreign sales

- Less opportunity of knowing who the clients are and therefore failure to offer what they really want.


- It really is a good way to start out in overseas business and a door to comparatively low risk relationship

-Any of the both companies get most out of the effort they actually.

- Capital won't be tied up in overseas operation

- The contribution remains limited to specific product, process or amount of agreement.

- The Licensor has less control over the licensee than it does over its creation and sales facilities.

- Potential returns from production and marketing might be lost.

-This strategy requires substantial planning, studies of fact, research and translation.

Joint Ventures

- Writing of risk as it is partner with foreign company

- Joint financial strength

- Good technique for firm's that shortage physical, financial or managerial resources to attempt the venture by themselves.

- The lovers might not concur over policies, marketing and investment funds.

- It might be impossible to recover capital if needed.

- This sort of strategy might prevent MNCs from carrying out making and marketing policies globally.

Direct Investment

- The organization can minimize its cost economies by cheap labour or raw materials, freight cost savings and bonuses by foreign authorities.

- The business will have good image since it creates job opportunity in the variety country.

- The firm can have full control over its investment and hence can develop marketing and processing polices.

- The primary disadvantage of this strategy is the firm exposes itself to the chance like worsening market segments and devalued currencies.

- Second, the firm might find it certainly expensive to reduce or close down its procedures, because the sponsor country needs substantial severance pay to the staffs.

(Kotler P. , Keller K. L. , 2006)

Every market entrance strategy has certain benefits and drawbacks, and looking at the aforementioned table Personally, i indicate Exporting strategy as market entry way for Advancis Medical. Having considered exporting as a better strategy for the business, Advancis Medical can avoid much risk and increase the revenue. With this strategy, the company could easily get a much better chance to know and analyze the marketplace and when it looks favourable the organization can transition to other strategy accordingly.

4. 1 Implementation

It has been considered that Advancis Medical is going for exporting strategy, now it needs to consider a reliable distributor in India to sell and disperse its product. Advancis Medical needs to point out which product to send out in India. The merchandise named 'Activon Pipe' from 'Activon Medical Manuka Honey Dressing' category is best product that complements the needs of market. Matching to (Kotler P. , Keller K. L. , 2006), it's been argued that many manufacturing companies feel that their job is performed after the product leaves the manufacturing plant. However they need to focus on the way the product moves within the foreign market. They must be focused on the potential problem that may arise through the circulation of products to final users. The idea can be illustrated by the following diagram

Source: (Kotler P. , Keller K. L. , 2006)

There is a potential distributor in India known as AK Pharma Pharmaceutical Distributor. It is situated in a town called Karnataka and is also a respected pharmaceutical distributor all over India. The business will more than 13000 products from 250 of Indian and Multinational companies and have a client bottom of over 1500 customers including nursing homes, medical & dental universities, chemist & druggist and doctors (akp. in; online tool).

The strategy adopted by the company will observe the 4Ps of marketing in following way: -

Product: - Medical product/drugs is a pharmaceutical product offered by all the pharmaceutical oil companies. It really is difficult to offer customers a point of difference with treatments. However, Advancis medical does so by selling drugs as well as the bandages that is way better and faster for wound recovery.

Price: - With common products in pharmaceutical industry, prices between rivals are easily matched up, this means it's difficult to differentiate the product based on price. Advancis medical is continually monitoring the purchase price and when possible cut costs and make the price reasonable to contend on the market.

Place: - Advancis medical distributes its product in more than 30 countries. And is expanding globally which really is a vital strength in the firm's marketing strategy. Talking about Advancis medical in India, I believe it's a perfect location for the company because of the country's demographic factors which ensures the right number and features of products are offered to various places.

Promotion: - This may are the company to do advertising, marketing through radios or carrying out loyalty programmes to operate a vehicle sales volume level and retain the customers (Bennett R. , Blythe J. , 2002).

Hence, having an overall analysis in the statement, it can be seen that Advancis Medical must follow an exporting technique to India and sell and deliver the product to that targeted market.

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