Marketing Environment and Strategy Analysis for CSL Company Report

This report provides a comprehensive marketing analysis of Commonwealth Serum Laboratories (CSL) Company, an Australian biopharmaceutical company. The analysis begins with an introduction to the marketing environment, encompassing micro and macro factors. It then provides a historical overview of CSL, including key acquisitions and developments, followed by an examination of CSL's products, which include plasma proteins, biotherapies, and vaccines, and are structured into two main business units: CSL Behring and Seqirus. The report delves into CSL's pricing strategies, highlighting premium pricing and market penetration approaches. Furthermore, it explores CSL's promotional activities, including customer appreciation events and after-sale services. The report concludes with an assessment of CSL's distribution network, emphasizing its strategic locations and diverse distribution channels. This report provides an in-depth analysis of CSL's marketing strategies, offering valuable insights into the company's approach to product development, pricing, promotion, and distribution.

Marketing environment and Strategy for CSL Company 1
Marketing environment and strategy for CSL Company
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Marketing environment and Strategy for CSL Company 2
Marketing environment and strategy for CSL Company
Introduction
Marketing environment refers to those factors that enable a business or a company
maintain its clients through creating a good relationship between itself and the clients through
coming up with ways that help in efficient delivery and selling of its products and services to
those customers. The marketing environment is very wide considering the performance of a
certain company or business. It pertains two major areas, that is, microenvironment (internal
factors) and macro environment (external environment). The microenvironment consists of
the internal business structure. That is, the management department, the human resource
department, the finance department, accounting department, purchasing and sales department,
customers, and suppliers among others. The internal environment is mainly affected by the
performance of the personnel entrusted in these departments. For instance, a well-organized
business is more successful regarding its output compared to a poorly organized company.
The external environment, on the other hand, refers to those factors outside the
business rheum that affect the performance of a particular company. These factors include the
political status of a country, demographic factors, culture, economic status of a place, the
sociological orientation among other factors. The external environment, however, affects the
internal environment. In Australia for example, the political, economic and social stability
helps the CSL Company to market its products and services in the country freely.
Maintaining a good position and being much competitive, a country, therefore, needs to
consider the application of some methods that will help in balancing both external and
internal environment to have a successful marketing process. The factors to be considered
and applied are therefore the ones referred to as the strategy. The objective of this assignment
is to conduct a marketing analysis on Commonwealth Serum Limited Company.
Brief information about CSL
Commonwealth Serum Laboratories (CSL) was established in 1916 in Australia. Its
purpose was to serve the health needs of the nations that were affected and isolated by First
World War. Since then the performance for this company has improved and in 1991
Commonwealth Serum Laboratories was incorporated to CSL limited and it managed to be
listed on ASX in the year 1994. The company has now expanded its territories and has
acquired a good number of companies such as the Novartis influenza vaccine business and

Marketing environment and Strategy for CSL Company 3
CSL Behring. CSL Company is an actually based on delivering advanced biotherapies that
help in saving lives. These biotherapies involve helping people with intimidating medical
conditions and help them to live a full life (Moynihan, 2010).
Marketing background of CLS Company
Since the establishment of the CSL Company in the year 1916, the company has
improved in terms of its performance by actually joining hand with other organizations. The
following is a trend for the performance of the CSL company from its establishment the-the
current date (Liu, 2013).
In the year 2013, the company went through a reform where it announced that the operating
partitions would include CSL plasma, CSL Behring, and immunohematology.
In the year 2008, the company took a step to buy ‘Talecris Bio therapeutics Holdings Corp’.
This is a United States-based supplier of plasma protein treatments which was from reserved
equity firm (Cerberus Partners) which amounted to 3.48 billion dollars. This treaty was later
canceled in the following year (Moynihan, 2010).
In the year 2007, the CSL’s influenza virus vaccine company was approved by ‘Food and
Drug Administration of the US which allowed to be traded (Szekely, 2013).
In the year 2006, various operating names and visual characteristics were on CSL were allied
so as to strengthen global network connections of the company. Some changes were made
which included ‘CSL pharmaceuticals’ to ‘CSL biotherapies.’
In the year 2004, the company helped in the acquisition of ‘Aventis Behring’ which became a
worldwide frontrunner in plasma therapeutics.
In the year 2003, there was free fluvial influenza serum which got launched together with
United States Papillomavirus.
In the year 2002, there was an opening of an office in Hong Kong. There was also an outline
of the conjugate into Australian bazaar.
In the year 2001, there was a formation of ‘ZLB Plasma Services.’ There was also an
establishment of ‘NASDAQ’ which catered for some laboratory facilities (Guan, 2010).

Marketing environment and Strategy for CSL Company 4
In the year 1999, there was an agreement of manufacturing and development of a product
with ‘American Record Cross’. This was done through the signing of contract and
development of new drugs (Ueyama, 2013).
In the year 1998, the subsidiary for ‘Bayer’s Animal Health Biologicals, a manufacturing
company in Nebraska acquired ‘Biocor Animal Health Inc.’
In the year 1995, there was the signing of an agreement with Merck and Co. The signing
involved marketing and development of Human papillomavirus vaccine globally. There was
another licensing the same year which allowed the marketing of Avonex treatment in New
Zealand and Australia.
In the year 1994, the company appeared on the Australian Securities Exchange list.
In the year 1992, there was the signing of an agreement of Dohme and Merc Sharp which was
meant to develop combination serums for teenagers in Australia (Zhang, 2011).
In the year 1991, there was an incorporation of the company as ‘Commonwealth Serum
laboratories Limited.’
In the year 1961, the company was made a commission under the CSL Act.
Analysis of CSL products
The main products produced by this company are plasma proteins biotherapies and vaccines.
Due to the wideness and diversity of products being produced, the company structures itself
in two major business units. These are;
CSL Behring- this is a well-developed unit which involved in the production, research,
distribution, and development of recombinant and plasma-derived products that are used in
manufacturing coagulation therapies involved in the treatment of hemophilia, products for
treating trauma, immunoglobulins for infection treatment and autoimmune diseases (Katz,
2010).
An overview of CSL Behring products
The drugs produced in this unit generally help in treating of infections, bleeding
disorders, and autoimmune diseases. These products are also used t treat patients in serious
care settings

Marketing environment and Strategy for CSL Company 5
An overview of Seqirus’s products
Vaccines- the function of the vaccines is to speed up protection to patients and
persons in contradiction of various viral deases.
Ant ivenoms- Helps in treating individuals affected by spider bites and venomous
snake.
Diagnostics product- help in determining the matching of the giver to receiver in
plasma transfusion.
Medicines- these are quite many and they help in treating several humanoid medicinal
situations. Various numbers of these medicines get distributed and marketed by the CSL.
Seqirus, on the other hand, is a unit that creates and disperses natural substances such as the
prescriptions of drugs, vaccines, anti-venoms and immunohaematology stuffs. It also includes
the protein resultant drugs to cure solemn humanoid medicinal situations.
Pricing for the CSL Company
Pricing process is very crucial when it comes to the marketing of a company’s products.
Well-conducted pricing plan helps in defining the price-point at which the organization can
exploit returns on sales of its products. During setting of the prices of its products, CSL
Company considers factors like the production cost, distribution costs, the offering given by
the competitor, the positioning strategies, and the targeted customers. The company uses
various strategies in pricing its products. These include;
a) Pricing at a premium
This strategy involves a company setting prices of its products higher than the prices of
its competitors. The CSL uses this strategy to win most of the customers who believe in its
products and who associate the higher priced products with a sense of high quality. When
comparing SANOFI and GRIFOLS SA which are some of the major competitors of the
company, the price for the CSL products are relatively high but this does not seem to reduce
the number of sales for the CSL products. However, this type of pricing strategy is mainly
used when selling new products (Wang, 2010).
b) Pricing for market penetration

Marketing environment and Strategy for CSL Company 6
This strategy involves reducing the prices for some of the products so as to attract buyers.
Most of the profit made by this company is used to expand the production process of new
products and improve marketing of the previous ones. Due to reduced cost of production of
various drugs such as vaccines and ant venoms, the CSL Company reduces the prices for
these drugs so as to attract more buyers to buy these particular products from them as
compared to the company’s competitors who sell these products at a relatively high price.
After influencing a quite good number of customers, the company can then use the profit
gained to produce more of the same and different products based on the needs and demand of
the consumers (Wang, 2010).
Promotion on the CSL products
Promotion is a key consideration when marketing a company’s products. After the
company has identified the product to produce, the places to distribute this product and the
price to sell this product, it now has to find a proper way to make all of its customers aware
of the availability of that specific product in the market. This, therefore, calls for different
methods of promotion such as advertisements, road shows, campaigns, sales promotion,
direct marketing and public relations. The company uses many forms of advertisements.
These include a print advertisement which involves large billboards with the Company logo
and some of its popular products, online advertisement which involves a website, Facebook
page, LinkedIn, Instagram, Twitter among other social media where the new brands are
outlined immediately after being released to the market (Sun, 2014).
Various methods of promotion used by the CSL Company
Customer Appreciation events
This is a type of promotion strategy that involves holding events that bring both the
customers and the employees of the company together with the main aim of appreciating the
consumption of the company’s products. The company has been conducting these events
occasionally where the customers do not have to pay anything for the provided goods. The
forum involves open discussions, explanation, and instructions on how to use various drugs.
Several disorders that are being treated using these drugs are mostly discussed and the
reflected victims are always given these drugs for free. This strategy is very important since it
helps in treating the victims of certain diseases as well as bringing up more customers
(Linsey, 2011).

Marketing environment and Strategy for CSL Company 7
After – sale customer services
The CSL always performs a follow-up by contacting its customers through email or
telephone. These help not only receiving the feedback on the consumption of the products
from the company by the consumers but also help in providing further guidelines to the
customers who are not very sure on the usage of the of particular drugs. Other sales services
used by the CSL Company involve catering for transport cost where a customer buys a bulk
or a delicate product. Compared to its competitors, the CSL has recorded the best after-sale
services in Australia. This has improved in the marketing success since the process involves
winning more customers (Ferguson, 2017).
Place/ distribution
The location of the company and the distribution of its products is a very important
consideration during marketing plan. The company is set in very nice and strategic places in
the Australia and other involved countries. The main branches and offices are located in
cities, and the distribution channel helps in connecting these premises with the ones in the
interior region. The company gets its raw materials and ingredients locally. The location of
this company and its branches has covered many communities and cultures resulting to a
plenty number of permanent employees. The CSL premises are channeled in a way that the
most plants are located in urban areas where plenty of labor and infrastructure is available.
The transportation of the products from the company to the pharmaceutical centers is done by
various cartels. Means of distribution of these products vary depending on the country. Some
use the road; others use railway while few uses air and water as means of transporting the
company products. This process may involve the wholesalers getting the products directly
from the company or getting the products from the chemists. Among the various countries
invested by the CSL, there is at least one wholesaler in the most interior or rural areas. The
retailers then get these products from the wholesalers, and the consumers buy the products
from the retailers at a moderate price. The successful investment in many countries has
resulted since the company employs local employees around its premises who understand
different languages based on their country and community. The proper communication
enables the employees to even reach the most interior customers (Hu, M, 2015).
Product vs Sustainability

Marketing environment and Strategy for CSL Company 8
Sustainability refers to the ability of a business to maintain itself at a certain level or rate.
The company produces a wide range of products such as antibiotics, vaccines anti-venoms
among other products. To ensure sustainability in the marketing arena, the CSL Company
have research centers and industries that produce these products using various formulas
encountered during the research process. The promotion directives taken by the company
such as the advertisement and use of free gifts help in sustaining the company position while
making it more competitive. The product policy for the company entails that for any new
product to be produced, the company must consider the competitor company’s most trending
products and the rate of demand for a particular product (Gudridur, 2011)
Product quality features
The products produced by the CSL company are of high quality since the company has
well-established production industries and the accessibility of the raw materials is also easy
considering that the company was established long time ago (Guan, 2010).
Packaging and labeling
The packaging on the CSL products is done strategically based on the type of the product.
For instance, liquid and suspense drugs are packed in small cans and bottles, while capsules
are mostly packed in small packets sealed with aluminum foil. The labeling of these products
on the other side is based on the name of the drug while brief descriptions on the usage of
that particular product are highlighted on the packet or any other packaging material used.
Labelling is very important as it help in distinguishing different types of products being
Produced and different uses these products have. The following picture shows some of the
company products being packed and labeled (Zhang, 2011).
Supply chain management
This is the process that involves the distribution of the company’s from the manufacturer
the wholesaler and retailers. The company, therefore, has a policy accredited this process.
This policy entails delivery of products in time, having a good distribution channel and
maintaining a good relationship with the company’s suppliers of the raw materials. If the
proper distribution of these products is sustained, then the company enjoys a successful and
smooth market (Platzek, 20212).
Consideration for consumption and disposal

Marketing environment and Strategy for CSL Company 9
The company produces the products based on the different human diseases. The
packaging tools used in these drugs are made up of biodegradable materials that when
disposed of, they only have less pollution effect to the environment (Kraev, 2017).
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