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-...Read More

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.

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Image 6: Seven price adjustment strategies
(Source: Leonidou et al. 2013)
CSL Limited adopted multiple price adjustment strategies- discount and allowance
pricing, segmented pricing and geographical pricing strategies.
Discount and allowance pricing- The group utilizes this price adjustment strategy to retain the
hospitals and clinics that are already their customers. Providing discounts to them motivate them
to associate with them.
Segmented pricing- CSL Limited Australia has their manufacturing units in eight locations and
depending on the economic conditions and demand of the product, the pricing of the products is
adjusted.
Geographical pricing- Similar to the segmented pricing strategy, CSL Limited also utilizes this
strategy for the same purpose but in this aspect they only utilizes “freight-absorption pricing”
strategy in which seller takes all or a portion of the freight charges in order to eliminate the price
differences.
2.3.4 Details of sustainable pricing practice
Kotler et al. (2013) depicted that the concept of sustainable pricing is to offer a price that
cover real life-cycle costs of products and then reduce the cost of the products by applying
sustainable practices. CSL Limited utilizes full-cost accounting (FCA) for identifying total
product costs, direct and indirect costs to their medicinal product. In this way, they cover all their
functionalities like pricing decisions, profitability analysis and inventory valuation. The

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sustainable pricing strategies also implement Life-cycle costing (LCC) attempts so that all the
internal and external product life cycle can be identified.
2.4 Promotion Vs. sustainability
2.4.1 Uses of key elements of the promotion mix
Leonidou et al. (2013) depicts that promotion is important as it make people aware of the
new business initiatives and benefits that they will get from the organization. Leonidou et al.
(2013) furthermore portrays that CSL Limited in this aspect utilizes the sales promotion and
social media promotion. Donations camps are hosted by this organization for plasma donations
and in the year 2015, the CSL Plasma Employee collected US$118,150 for Immune Deficiency
Foundation (IDF) (CSL.corporateresponsibility 2017). The organization also host summer
vocational programs so that they can provide educated to the low-income group of the
community (CSL.corporateresponsibility 2017).

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Image 7: CSL Behring donate cheque to United Way for their effort of providing education to
needful children
(Source: CSL.corporateresponsibility 2017)
In terms of soial media promotion, they have a Facebook account and a YouTube
Channel so that more people get aware of their effort.
Image 8: YouTube and Twitter Channel of CSL Limited
(Source: Youtube.com., 2017 and Twitter.com., 2017)
2.4.2 Communication system to inform stakeholders
CSL Limited has developed a “communications and external disclosure policy”, where
the company have illustrated their initiative towards their stakeholders and future (CSL Limited
2017). All the communication disclosure obliged under the legislation of “Corporations Act
2001 (Cth)” and the “Australian Securities Exchange (ASX)” listing rules (CSL Limited 2017).

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Information regarding the trading halts, inadvertent disclosures, communication with major
sources like financial markets, media, institutional investors and stock-broking analysts are also
included in this report.
Another method of communication with stakeholder can be witnessed through their
initiatives of “Annual General Meeting (AGM)”, “Annual Reports”, “Corporate Responsibility
Report”, “Half Year Reports” and “Shareholder Reviews” and other media releases (CSL
Limited 2017).
2.5 Place/distribution Vs sustainability
The place policy highlights the concern of channels used, assortments undertaken,
locations, inventory and transport used to deliver their products. Verbeke (2013) highlight that
marketing channel is the involvement of people organizations, and activities that is necessary for
transporting the products to the final consumers. The role of the marketing channel is to link
producers to the buyers; affects products strategy trough policies, willingness and branding and
influences firm’s pricing strategy.
2.5.1 Marketing channels are being used by the company to distribute its products
The type of marketing channel that CSL Limited is using is Producer → Retailer →
Consumer. The CSL Limited produces vaccines and medicines and then delivers it to the
hospitals and client from where it has been offered to the patients, who need the treatment. Thus,
CSL Limited use Business-to-business (B2B) distribution to deliver their products.
2.5.2 Managing its marketing intermediaries
The distribution planning of CSL Limited is sustainable as they update the planning sheet
with information from the power/interest grid and then share the business approach with the

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stakeholder. The organization also identifies the message that is considered to convey along with
the identification of the action and communication. In this way, the interpersonal relationship
with the stakeholder can be maintained. In addition to that CSL Limited also conduct regular
meetings with the stakeholders and develop new ideas through which the impact on the earth can
be reduces and the business can be done in greener way.
2.5.3 Managing to achieve sustainable distribution
CSL Limited manages the sustainability of their products through ways like- powering
distribution centers, alternative routes and fuel options (Verbeke 2013). CSL Limited has their
distribution centers for transporting the materials around the world. CSL group also use transport
options that are run from batteries and use eco-friendly fuel so that impact on environment can
be diminished.
2.6 Comparison to rival
The major rival of CSL Limited is Life Therapeutics and their marketing mix is
represented as below:
4P Aspects Life Therapeutics CSL Limited
Product Anocream, ORA-G Gum Paint,
Otoclean Ear Drops, PharmaCyp
and products for all problems
Immunoglobulins, heamophilia, albumin,
specialty and seqirus that are used to cure
the severe health issues
Price This organization keep an economic
and reasonable pricing policy as
they aims to make life-saving drugs
accessible to patients
CSL limited followed value based pricing
strategy as they develop products that are
difficult to formulate. However, they also
provide discount to their customers.

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Place Life Therapeutics distributed their
products in 18 countries.
This organization has their distribution
channels in 30 nations and eight
manufacturing units
Promotion They offer free heath checkups and
opted the methods of social media
promotions as people are more
attach with social media
CSL Limited utilizes the social media
promotions and promotional campaign.
The campaign is related to the CSR and
people get benefited.
Table 1: Comparison of Life Therapeutics with CSL Limited
(Source: Created by Author)
3.0 Recommendations
In terms of their products, CSL Limited can offer medicines for stem cells and enzymes.
In this way, they can expand their business. In addition to that, technologies like nanotechnology
can also be incorporated in order to develop next generations of medicines and technologies.
Moreover, the organization can also research about expanding their business through
online services. In this way, they can deliver their products to the nation, where their
manufacturing units are not available. However, in this aspect they have to improve their
distribution process more sustainable so that they can put less harmful impact on environment.
In order to develop their distribution factors they can use hydro-power, wind or solar
power in order to powering their distribution centers. In such cases, the organization should
develop regulation collaboratively so that the company can also get the support from
government.

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4.0 Reference List
Baden-Fuller, C. and Haefliger, S., 2013. Business models and technological innovation. Long
range planning, 46(6), pp.419-426.
Baden-Fuller, C. and Mangematin, V., 2013. Business models: A challenging agenda. Strategic
Organization, 11(4), pp.418-427.
Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business
strategy: toward a next generation of insights.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
CSL Limited., 2017. CLS Limited- Products. [online] Available at:
http://www.csl.com.au/products. [Accessed 22 Sep. 2017].
CSL Limited., 2017. CSL Limited- Annual Report. [online] Available at:
http://annualreport.csl.com.au/docs/802/1/CSL_AR17%20. [Accessed 22 Sep. 2017].
CSL.corporateresponsibility., 2017. CSL Limited- Corporate Responsibility. [online] Available
at: http://corporateresponsibility.csl.com.au/safety/counterfeit.htm. [Accessed 22 Sep. 2017].
Financial Times., 2017. Financial Times- CSL Market Shares. [online] Available at:
https://markets.ft.com/data/equities/tearsheet/forecasts?s=CSL:ASX. [Accessed 22 Sep. 2017].
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.

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Kotler, P., Keller, K.L., Brady, M., Goodman, M. and Hansen, T., 2016. Marketing management.
Pearson Education Ltd..
Leonidou, C., Katsikeas, C., and Morgan, N., 2013 "Greening" the marketing mix: do firms do it
and does it pay off?. Journal of the Academy of Marketing Science, 41(2), 151-170.
Pigorini, P.A.O.L.O., Divakaran, A.S.H.O.K. and Fleichman, A.R.I.E.L., 2012. Managing in a
multipolar world. Strategy & Business, (64).
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability: the
role of business model innovation for corporate sustainability. International Journal of
Innovation and Sustainable Development, 6(2), pp.95-119.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Sørensen, H.E., 2012. Business development. In Palgrave Encyclopedia of Strategic
Management. Macmillan Publishers Ltd.
Twitter.com., 2017. CSL Limited. [online] Available at: https://twitter.com/csl?lang=en
[Accessed 22 Sep. 2017].
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.
Youtube.com., 2017. CSL Limited. [online] Available at:
https://www.youtube.com/user/CSLGroup. [Accessed 22 Sep. 2017].
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization, 11(4), pp.403-411.

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5.0 Appendix
5.1 SWOT analysis
SWOT Factors Analysis of the Factors
Strengths Fastest growing industry
Blood plasma derivatives, vaccines, anti-venom, and cell culture reagents
are their main products that are hard to get
Extensive R&D capacity
Weakness Ethical issues related to field of genetics
Diseconomies to scale
Investment in time and money
Opportunity Technologies like nanotechnology can be incorporated
System cell can be incorporated
Treats Strict regulations from government
Development of new technologies
Table: SWOT Analysis
(Source: Created by Author)