Marketing and Management Report: CSL Limited's Sustainability

This comprehensive report provides an in-depth analysis of CSL Limited's marketing and management strategies, focusing on their approach to sustainability. It begins with an overview of CSL's marketing background, highlighting their global presence and product range, including plasma-derived therapies, vaccines, and antivenoms. The report then examines the company's product policies, emphasizing quality control, packaging, and supply chain management, alongside considerations for consumption and disposal, and the importance of the product lifecycle. A significant portion of the report is dedicated to pricing strategies, including value-based pricing, new-product pricing, and price adjustments, with a focus on sustainable pricing practices. The report also explores CSL's promotion mix, detailing the use of sales promotion, social media, and communication strategies to inform stakeholders. Furthermore, the report delves into the company's distribution channels, emphasizing sustainable distribution practices and a comparison with rival companies. The report concludes with recommendations and a reference list, providing a holistic view of CSL Limited's marketing and sustainability efforts.

Running head: MARKETING & MANAGEMENT
Marketing & Management
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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Discussion..................................................................................................................................2
2.1 Marketing background of the chosen company.....................................................................2
2.2 Product Vs. sustainability......................................................................................................4
2.2.1 Products range offered by CSL Limited.........................................................................4
2.2.2 Key decisions for product policy....................................................................................5
2.2.3 Product quality/features..................................................................................................6
2.2.4 Packaging and labeling...................................................................................................7
2.2.5 Supply chain management..................................................................................................7
2.2.6 Considerations for consumption and disposal................................................................8
2.3 Price Vs. sustainability..........................................................................................................9
2.3.1 General pricing strategies...............................................................................................9
2.3.2 Adoption of new-product pricing strategies...................................................................9
2.3.3 Adjustments in products prices.....................................................................................10
2.3.4 Details of sustainable pricing practice..........................................................................12
2.4 Promotion Vs. sustainability................................................................................................12
2.4.1 Uses of key elements of the promotion mix.................................................................12
2.4.2 Communication system to inform stakeholders...........................................................14

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2.5 Place/distribution Vs sustainability.....................................................................................15
2.5.1 Marketing channels are being used by the company to distribute its products............15
2.5.2 Managing its marketing intermediaries........................................................................15
2.5.3 Managing to achieve sustainable distribution...............................................................16
2.6 Comparison to rival.............................................................................................................16
3.0 Recommendations....................................................................................................................17
4.0 Reference List..........................................................................................................................18
5.0 Appendix..................................................................................................................................20
5.1 SWOT analysis....................................................................................................................20

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1.0 Introduction
Successful marketing covers the aspects of advertising, public relations, promotions and
sales that not only enhances the organization’s reputation but also helps in attaining productivity
and profitability. Sørensen (2012) stated that a marketing plan plays a crucial role to identify the
market position of the organization along with the competency evaluation with competitors. The
organization that is taken into consideration in this business report is CSL, a global specialty bio-
therapeutics company. The report presents the details of the marketing background of the
concerned organization and the sustainability that the company from product, price, promotion
and place/distribution along with the comparison to its greatest rivals that is followed by
recommendations and conclusion based on the entire discussion.
2.0 Discussion
2.1 Marketing background of the chosen company
CLS is a global biotechnology company liable to treat and prevent severe medical
conditions. Some of the major treatment areas that the concerned organization covers are- anti-
venom, blood plasma, cell- culture reagents and vaccines that are used for treating life-
threatening diseases. The annual revenue and net income of the organization was USD$6.923
billion and USD$1,769 million respectively (CSL Limited 2017). The major products through
which the organization made huge sales are immunoglobulins, heamophilia, albumin, specialty
and seqirus (CSL Limited 2017). CSL Limited operated in more than 30 nations and has eight
manufacturing sites and their business division of “CSL Behring” is the global leaders in
biotherapies.

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Image 1: CSL Group Sales through major products for the year 2016-17
(Source: CSL Limited 2017)
In aspects of sustainable practices opted by the organization, CSL Limited follows
sustainability through three aspects- people, profit and planet (CSL Limited 2017). The
organization provides equal opportunity to men and women and researching on new technology
through which sustainable treatment methods can be identified. CSL Limited followed fair
pricing ND affordability, transparency of interaction with different stakeholders and target
community support. They also follow governing and organizational legislations and have 35
regulatory inspections for clinical trials (CSL Limited 2017). All the technologies and medicines
do not impact the problem of climate change. Their major targets groups are hospitals and
clinics, where the organization delivers their products and technologies so that they can serve to
common people.
The CSL Limited is one of the leading organizations in Australia and their annual
revenue is growing every year. The revenue attained in 2017 is the 11.95% of the previous years

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and it is expected to grow more in the coming years that are 2018 and 2019 (Financial Times
2017).
Image 2: Annual revenue and expected revenue of CSL Limited
(Source: Financial Times 2017)
2.2 Product Vs. sustainability
2.2.1 Products range offered by CSL Limited
The concerned organization focuses on developing vaccination of severe disease. There
are five products ranges of CSL Limited- Plasma-derived therapies, Vaccines, Antivenoms,
Diagnostics products and Pharmaceuticals (CSL Limited 2017). Some products of plasma-
derived therapies are ALBUMEX 4, BERINERT, CMV Immunoglobulin-VF; whereas, popular
products of vaccines are ADT Booster, Gardasi, H-B-VAX II, Jespect and others (CSL Limited
2017).

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2.2.2 Key decisions for product policy
The products that is developed in the organization follow a product lifecycle approach in
order to attain global quality. Thus, policies are developed through products legislations and the
system follows several process-
 Research and Development (R&D) support and clinical trial activities for product
innovation
 Quality audits for selective suppliers so as to insure the product’s genuineness
 Implementation of quality system
 Following quality and manufacturing performance
 Critical safety and pharma-co-vigilance activities for monitoring the safety of the
products
Taken for instance, the process of product manufacturing of plasma-derived therapies
comprises of process like- donor selection and plasma testing, protein purification, virus
inactivation, batch release and pharma-co-vigilance (CSL Limited 2017).

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Image 3: Safety and the manufacture of plasma therapies
(Source: CSL Limited., 2017)
2.2.3 Product quality/features
CSL Limited as formulated new Global Quality System and Services Group so that the
product quality can be assessed regularly (CSL Limited., 2017). The concerned organization
emphasizes on the global harmonization of quality process, which ensures the highly efficient
quality process and safe and effective products. CSL Limited has developed a framework
through which the improvement in the product quality can be attained.
 Implementing global product safety structure along with the risk management and
pharmacovigilance operations

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 Developing global product safety governance system that ensure effective management
decision with clear accountability are each step
 The enhancement in the process of technology and research so as to improve the
detection of safety signals and formulating mitigation strategies for evaluated risks
2.2.4 Packaging and labeling
All the products of CS Limited have a signatory to the Australian Packaging Covenant
(APC). The packaging option of the products of CSL Limited piloted the use of a life cycle
assessment that is based on alternative packaging option. It is also found that all the products
manufactured by the concerned organization is supplied to hospitals and clinics by using the
methods of product serialization so that the products can be tracked and records can be collected
for supplied items. The product serialization generates unique identifiers on product vials from
where the genuineness of the products can be identified (CSL.Corporateresponsibility 2017). In
addition to that, the packaged products also utilize tamper-evident measurements that provide
visual evidence while the product is opened (CSL.Corporateresponsibility 2017). This provides a
high level of confidence to healthcare providers and patients that the products they are
consuming are genuine and effective.
2.2.5 Supply chain management
The supply chain management policies are effective and comprises of some concerns that
are illustrated below:
 Formulation of CSL commenced pilot programs in order to evaluate the supplier’s
performance in terms of environmental, social and governance

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 Commission of independent desktop risk screen for evaluating the delivery of the
technology and medical vaccines to other nation
 The organization currently has supply chain security management that combines the
security and product requirements with anti-counterfeiting measures and loss prevention
practices
 All the products are incorporated by barcode technology that highlights all the details like
product distribution channels, products analytical testing and batch validity.
2.2.6 Considerations for consumption and disposal
CSL Limited consumes energy in terms of petajoules, green house gas emission in metric
kilotonnes, water consumption on Gigalitres and waste in metric kilotonnes (CSL Limited 2017).
The waste recycling rate increases from 59 to 64 in the year 2013-14 to 2014-15 but the
percentage decreased for the year 2015-16 (CSL Limited 2017).
Image 4: Consumption and Recycling
(Source: CSL Limited 2017)
In terms of sustainability, modern technology for waste ma management is taken into
consideration as a result to which, intensity of plasma manufacturing facility has been improved

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by 6.6%; whereas, the intensity of the water intensity has been improved by 4.9% (CSL Limited
2017).
Image 5: Energy and Greehouse Gas Intensity Trends
(Source: CSL Limited 2017)
2.3 Price Vs. sustainability
2.3.1 General pricing strategies
The pricing strategy that is used by the CSL Limited is the value based pricing stsrtegy.
The prime reason for the same is that this organization develops medicines for severe disease and
not all the pharmaceutical companies are able to formulate vaccines for life-threatening diseases
and thus the organization charges high for their valuable products. .
2.3.2 Adoption of new-product pricing strategies
Kotler et al. (2016) stated that in value based pricing strategy there are high chances of
dissatisfaction among the customers regarding the high price of the products. Leonidou et al.
(2013) furthermore depicted that in such cases, probability of losing the customer base is also

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high and thus, organization have to adopt new pricing strategy so that the customer base can be
maintained. In this case, CSL Limited also adopts new strategy through following steps:
 Establishment of product evaluation processes
 Identification of the key decision stakeholders
 Formulating optimal strategy to gain vast market access
 Developing knowledge in price/volume relationship
 In case, the products to be sold in other nation, identification of optimal price by country
is required followed by launching global pricing strategy to maintain the existing
customer base
2.3.3 Adjustments in products prices
Leonidou et al. (2013) stated that there are many pricing price adjustment strategies-
discount and allowance pricing, segmented pricing, psychological pricing, promotional pricing,
geographical pricing, dynamic pricing and international pricing strategies.