Introduction
Different companies are situated in Miami, Florida; they have different products, services, and activities that define the company’s scope of operations. One of the companies that are located in Florida is Novartis, a pharmaceutical company that originates from Switzerland. This paper will analyze the marketing mix of Novartis, present the target market and competitive advantage of the company, and evaluate the organization’s marketing mix.
The target market where Novartis is operating is highly competitive. The main competitors are Pfizer, Merck & Co. (MRK), and Bristol-Myers Squibb (Patrick, 2017). One of the world’s largest pharmaceutical companies, Novartis, has revenues of fifty-one billion dollars in 2018 (“Novartis Annual Report,” 2018). The company gained its competitive advantage by developing a diversified portfolio of pharmaceuticals, focusing on improving margins, and delivering high-quality drugs in the market.
Product Strategy Evaluation
Novartis has three main business divisions, which are separated by the function of the medicine within a division: pharmaceuticals, eye care, and generic drugs. The central medical sectors include neurology, psychiatry, respiratory, ophthalmology, and other areas (“Meet Novartis Management,” 2019). Sandoz, the company that Novartis acquired to produce generic products, helps the company to grow its markets in India and China. Novartis provides medicines in different forms, such as pills, capsules, and syrups. Evaluating the product strategy of the company, one can say that the approach of portfolio diversification is highly efficient and brings significant revenue for the organization, as is stated in the annual report.
Pricing Strategy Evaluation
As the pharmaceutical market is highly competitive, companies tend to have aggressive pricing policies. Novartis pursues a differentiation price strategy for its exclusive product lines. The organization has generic drugs that bring substantial revenues as they cost less for customers and provide economies of scale (“Meet Novartis Management,” 2019). Unique products of Novartis have significant research and development costs and better quality; thus, the company establishes higher than average prices for these products. Overall, analyzing the pricing strategy of Novartis, it can be stated that the organization has developed a balanced pricing system for different products to ensure that margins will be high. However, operational costs can impact the pricing strategy; therefore, they should be monitored continuously.
Place Strategy Evaluation
Novartis has created a large distribution chain for its medicines in developed countries. There is an intention to target developing countries extensively as the company has generic products. The organization is partnering with governments and non-government organizations of some countries to supply generics to the mass market (“Novartis Annual Report,” 2018). Research and development centers that Novartis established helped the company to gain insights about the customers and develop a supply chain where demand is the highest. To sum up, one can say that the place strategy of the company is quite efficient due to its partnerships and developed distribution. However, the necessity to target emerging countries is evident.
Promotion Strategy Evaluation
Novartis covers different communication channels to promote its products from a diversified portfolio. The company combines above-the-line and below-the-line advertising in print media, on television, outside banners that belong to traditional channels. Novartis participates in sponsoring events and non-government organizations in the healthcare industry around the world. Nowadays, the company focuses on improving its digital presence to attract new customers and promote its brands via online channels. Overall, it can be stated that the promotion strategy of the company is successful. However, it might be suggested that Novartis should extensively develop its digital communication and gain customers that use emerging technologies to search for information.
Conclusion
To conclude, one can claim that the marketing mix of the pharmaceutical company Novartis is created in a balanced manner. Product and pricing strategies are exceptionally efficient as they provide an essential competitive advantage for the company and bring revenues that help the company to grow. At the same time, there is a space for improvement as the promotion strategy of the company lacks unique emerging ways of reaching customers and making them loyal. Thus, Novartis should follow the trends and enhance its marketing mix according to the changes and contemporary situation in the market.
References
Patrick, M. (2017). Novartis has revamped its commercial strategy for 2017. Market Realist. Web.
Novartis Annual Report. (2018).
Meet Novartis Management. (2019). Web.