Pricing Policies of CSL Limited: An Analytical Study

This assignment is about CSL Limited, a company that produces recombinant medicines. The company's current promotional strategies include using magazines and catalogues to generate product awareness among its target customers. However, a competitor, Cynata Therapeutics, uses leading newspapers to educate its target audience about the products' benefits, which could be beneficial for CSL Limited. Additionally, the company should consider developing more affordable and generic medicines to cater to the health needs of Australia's rural sector. The assignment also includes a SWOT analysis and BCG matrix comparison between CSL Limited and Cynata Therapeutics to identify the strengths, weaknesses, opportunities, and threats that affect their business and marketing policies.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
Name of the student
University name
Authors’ note

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Table of Contents
Introduction......................................................................................................................................2
Background of the company............................................................................................................2
Marketing mix.................................................................................................................................4
Product vs. Sustainability................................................................................................................4
Price vs. Sustainability.....................................................................................................................7
Promotion vs. Sustainability............................................................................................................8
Distribution vs. Sustainability.........................................................................................................9
Comparison to rivals......................................................................................................................10
Recommendations..........................................................................................................................11
Appendix........................................................................................................................................11
References......................................................................................................................................13

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Introduction
The current assignment focuses on the concept of strategic marketing and management
strategies which determines the positioning o the company within the global market. For the
current assignment, CSL had been taken into consideration, which is a biotherapeutic company.
The company aims at designing innovative strategies which helps in designing life saving
technologies for the betterment of mankind.
The assignment takes into consideration a number of objectives such as running a
background analysis of the company, pricing of the products and services, marketing strategies
adopted by the company for promotion of the products. The distribution channels as well as
stakeholder analysis form other important components. In this context, a marketing mix had been
applied in order to analyse the competitive positioning of the organization within the current
biopharma market. The 4 P’s analysis is based upon product, price, place, promotion, which
helps in competitor analysis. A swot analysis had been further conducted to evaluate the strategic
positioning of the organization.
Background of the company
The CSL is a global multispecialty biotherapeutics company with a number of
operational units across the globe such as Australia, Germany, Switzerland, UK and US. The
company produces a wide range of products using the plasma derived from the blood. The
plasma is then treated and processed further to generate a number of life saving drugs. In the year
2015, the company joined hand with Novartis to create seqirus, the second largest influenza
vaccine company in the world (Lii et al. 2013).

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Some of the sustainable practices of the company can be highlighted over here which
helps in the development of an economic and environmental balance for the company. The social
benefits offered by the company have been covered under the Corporate Social Responsibility of
the company. The company offers a global economic contribution of US$32.8 million towards
local, patient and biomedical communities (cslbehring, 2017). The organization contributes a
global sum of US$466 million across 40 worldwide clinical centres for research and
development. The organization also maintains some of its environmental concerns by conducting
an enterprise wide climate change risk assessment. The company strictly follows the
confederations provided by the United Nations Intergovernmental panel on Climate change
(IPCC).
The company has a vast customer base depending upon increase in the number health
concerns globally. The CSL Company markets plasma derived and recombinant therapies
worldwide. The recombinant therapies help in provision of new and innovative technologies
which helps in treating the serious and life staking conditions of customers across the globe
(cslbehring, 2017).The CSL Limited faces a number of challenges from its similar market
players or competitors which could be further analysed with the help of a STP analysis that is
segmentation targeting and positioning.
STP analysis:
Attributes CSL Lipotek Cynata
Segmentation Manufacturing and
marketing plasma
derived recombinant
Marketing nanovaccines
based on recombinant
proteins
Stem cell and
regenerative medicine
company

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Targeting Medicine and Pharma
industries , prescription
products
Research and
development along with
phrama products
Surgical use for treating
patients with serious
impairments
Positioning Develop life saving
drugs
Provides more
alternative recombinant
medical interventions
Helps in facilitating
transplants and
regeneration
Table 1: STP Analysis
(Source: Author)
Marketing mix
The tool of marketing mix is one of the widely used techniques in making marketing plan
of an organization, which uses various parameters like price, promotion and place along with the
description of the products as the source of information (Steenkamp 2017). The policies of the
marketing mix are decided according to the marketing objectives of business organization. It is
also essential to note that sustainability of an organization is dependent upon the policies that are
implemented according to the marketing mix parameters (Hanssens et al. 2014). For example, it
is essential for the organization implement effective pricing strategy, which will ensure better
sustainability of the product in the respective market.
Product vs. Sustainability
It is essential for the company to provide detailed description of the product, which will
help them to provide information to the customers. The product line for CSL limited includes all
types of vaccines that are essential in the cases of saving the life of patients. These vaccines are

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used as a source of improving the immunity and thereby help in disease prevention. Other
product line of the company includes plasma derived therapies, anti venom, Diagnostic products
and all types of Pharmaceuticals.
Few of the major products in each of the product line are described here:
Plasma Derived Therapies:
Albumex: This is a critical care product, which is used among patients with low volume of blood.
This is mainly used during the time of lung bypass surgery, where there is huge amount of blood
loss among the patients.
Biostate: This type of product is used for coagulation disorders, where the patient is suffering
from disease like hemophilia. This helps to elevate the level of factor VIII, which is depleted in
case of hemophilia A.
Hepatitis B Immunoglobulin-VF: This is an immunotherapy product that is used to prevent
infections disease like Hepatitis B. This is mainly used to prevent the occurring of the disease
among suspected individuals.
Vaccines: This range of products includes various types of vaccines, which are used to
incorporate among individuals are various ages that is needed in order to prevent occurring of
disease. Most of the vaccines that are sold by CSL Limited are mainly for children below 10
years old. The company also sells few of the newly discovered vaccines, which are used in the
prevention of critical diseases like cancer (Csl.com.au, 2017).
Afluria Quad: This vaccine is used for preventing influenza in person above 18 years old.

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Gardasil: This vaccine is used for prevention of critical diseases like vaginal and anal cancer.
Pharmaceuticals
Acarizax: This is an immunotherapy pharmaceutical product, which is used in the treatment of
dust mite respiratory allergy.
Caldolor: This is one of the widely used Pharmaceutical products in the Australian medical
industry, which is used for neuropathic pain, which is associated with previous herpes zoster
infection.
Anti venom
CSL Limited is also popular for various kinds of anti venom, which are highly popular in
the medical industry. The company has invested hugely in the research and development of
various types of anti venoms for the toxic that are secreted from the snakes and spiders
(Csl.com.au, 2017).
All the above mentioned products are sold under the brand name of CSL, which provides
them with some unique identity and recognition in the biotech and pharmaceutical industry. It is
essential for the company to provide detailed description of all the Pharmaceutical and biotic
products, which is necessary in understanding the importance of each of those products that are
implemented in each case (Csl.com.au, 2017).

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All the products of CSL Limited, which are sold into the pharmaceutical industry, are
reported to have wide range of application in various medical purposes. Some of the critical
drugs that are sold by the company have been reported to have extreme use during the time of
medical emergency. Most of the healthcare organizations in the Australian health care industry
are dependent on the products of CSL limited. This will help in the sustainability of various
products of the company. The company has to bring about regular changes in the manufacturing
process of the Pharmaceutical product, which can help to deal with all types of new challenges
related to the use of the new challenges in the medical industry. Proper quality checking
procedures also need to be maintained within the company, before each category of products is
being released in the market. With each range of products that are released in the market, it is
essential for CSL limited to ensure its sustainability that can be obtained with the help of regular
monitoring of the products (Tollin and Christensen 2017).
Price vs. Sustainability
Pricing is one of the important criteria all the marketing policies, which is decided based
on the quality of the product and the groups of the target customers (Hanssens et al. 2014). Due
to the nature of the product that are sold by CSL, it is essential to have high level of pricing of
the products, which can help them to produce high and safe quality of safe products that can help
in the process of dealing with materials related to critical disease in the healthcare.
It is relevant to mention in this context that with the rise of competition in the Biotech
and pharmaceutical industries of Australia it is essential for in the Biotech and pharmaceutical
industries of Australia it is essential for CGL limited to maintain the price at competitive level,
which will help the company to maintain sustainability and survive for longer periods.

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There are various internal and external factors, which decide upon the prices of the
products. The price of the raw materials in the form of chemicals that are needed in the
manufacturing procedures of pharmaceuticals and Biotech products can hugely vary. This is
mainly due to the fact that, there are limited numbers of suppliers. In order to maintain
sustainability with the pricing strategies, it is essential for the company to regularly update the
price of the product according to the changes that occurred in the pharmaceutical industry.
It is also one of the ethical duty of the company do not use any poor quality of materials
in the manufacturing process that can help them to gain unfair competitive advantage.
Nevertheless, it is essential for the company to keep the pricing of the products at nominal level,
which can be afforded by people of all section for getting their treatment.
Promotion vs. Sustainability
The promotional strategies are one of the essential parts of the marketing activities that
are carried out by all business organizations (Mintz and Currim 2013). Due to the increase level
of competition in the pharmaceuticals and Biotech industries of Australia, it is essential for CGL
Limited to implement innovative techniques of promotion that can help them to reach out to
target groups of customers. It is essential to ensure that most of the products CGL Limited are
mainly used in Healthcare industry. Hence, it is essential for the company to ensure that the
promotional strategies that are being implemented can reach out to the stakeholders of
Healthcare organizations.
In order to maintain sustainability in this context, it is essential for the company to
analyze the external social economical and political scenario, which can help them to decide
upon the future promotional strategies. The company also has to collect updated information

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related to the Pharmaceutical and Biotech industry, which can help them to bring about changes
in the respective industry. It is also essential to use different forms of medium, which can be
used by the company to communicate with the target clients. This is also one of the effective
ways that can be used to maintain sustainability within the industry.
Distribution vs. Sustainability
The area of operation for CSL Limited includes all parts of Australia and in other Nations
including Hong Kong, United States and in many nations of Europe including UK. There are
different manufacturing facilities along with research and development team in almost all the
Nations, where the business operation range of the company is expanded.
The company mainly sells their products through distribution strategies and assistance of
medical representatives. It is also possible for the client to directly approach the company and
place order for all types of Pharmaceuticals and therapeutic products. The company has also
expanded its range of distribution through the help of ecommerce business, where it is possible
for the clients replace online order.
Distribution through online chain needs to be enhanced in the future, which can help the
company to maintain sustainability and thereby able to expand their range of distribution channel
(Wirtz and Lovelock 2016).

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Comparison to rivals
A marketing mix could be used for the comparison of the CSL limited with its partners.
Some of its potential partners are the Cynata therapeutics and the Lipotek Pvt. Ltd. The
organizations belonging to the similar area of biotherapeutics the segmentation, targeting and
positioning of the organizations are more or less the same. This brings about competitions
between the rival companies regrading profit making and reaching out to the maximum number
of target customers. For comparison to the rivals a 4P analysis has been done in order to evaluate
the differences present within the strategic marketing policies of the companies.
Marketing mix
factors
CSL Lipotek Cynata therapeutics
Product Blood plasma derived
recombinant
biopharma products
Recombinant protein
vaccines
Cell culture media ,
cell separation
systems, instruments
and other reagents for
use in life sciences
research
Pricing Cost effective Competitive Economical
Promotion Organizational
magazines and
product catalogues
Promotion through
distributor channels
Advertisement with
product description in
leading newspapers

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Place Covers wide section
of audiences across
the globe
Covers the Australian
pharma market
specifically
Caters to the
Australian large
audiences only
Recommendations
A number of recommendations might be suggested for the improvement of the marketing
and promotional strategies of the company. The 4P’s of marketing can be developed further for
meeting with the strategic marketing policies of the company. One of the main challenges faced
within the present context is from the pricing policies. The stringent pricing often limits the sale
of the products which might affect the business and marketing policies of the company. The
promotional strategies also serve as an important parameter. In the current context, the CSL
Limited uses the magazines and catalogues of the company for generating product awareness
within the target customer segment. On the contrary, comparing with one of its competitors, the
cynata therapeutics, which uses leading newspapers for educating the target audiences about the
products and benefits, can act in favour of the organization (cynata, 2017).
Additionally, the company should also come out with more economical and generic medicines
for meeting with the serious health requirements of the Australian rural sector.
Appendix
(SWOT analysis and position chat)
Strength weakness
 Diverse range of products  High range of dependence of

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 Strong research and development
commitment and productivity
 Significant marketing and sales
strategies
recombinant technologies leading to
high cost of medicines
 Stagnant growth due to expiry of
patents
Opportunities Threat
 Widely approved collaboration
strategies
 Leadership in recombinant medicines
 Competition from similar brands
 Hindrances offered growing
environmental concerns challenging the
benefits of recombinant products
Table 2: SWOT analysis
(Source: Author)
BCG matrix
In the present context, the BCG matrixes of the CSL with the Cynata therapeutics have been
compared. The comparison have been done based upon the market shares versus growth rates of
the company. A BCG Matrix chart has been drawn below to show the positioning of the two
organizations with respect to each other.
BCG matrix CSL Cynata
Relative market share 85 52
Market growth 40 56
Competitor size 600 500
Share 35% 28%

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Rest of the market 72% 85%
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