International Marketing Research: CSL Limited's Indonesian Market Plan

This report presents an international marketing plan for CSL Limited, focusing on market expansion into Indonesia. It begins with an executive summary and an introduction to CSL Limited, a biotechnology company. The report conducts an environmental analysis using PESTEL factors, assessing political, economic, social, technological, environmental, and legal influences. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The marketing strategies section details target markets, marketing mix (product, positioning, and more), and market entry strategies. The report also outlines marketing and communication objectives, along with evaluation and control mechanisms. The research primarily relies on secondary sources, considering the company's practical experience, to provide a comprehensive strategy for successful market entry and operations in Indonesia.

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1.0 Executive summary
The purpose of writing this market plan is to enable CSL Limited in creating and
executing an international strategy. This would be accomplished through the evaluation of
contemporary conditions of the company, identification and selection of promising market in
Asian-Pacific region, identification of market entry strategies and provision of systematic
guidelines to the implementation. The proposals and conclusions that is included in this
report is mainly constructed through secondary research. Nevertheless, the current practical
experience of the company would be considered. This report would primarily focus
expanding the market to Indonesia.

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Contents
2.0 Introduction........................................................................................................................3
3.0 Environmental analysis.....................................................................................................3
3.1 The marketing environment.............................................................................................3
3.3 Swot analysis....................................................................................................................6
3.4 marketing objectives.........................................................................................................7
4.0 marketing strategies.............................................................................................................7
I. Target markets.....................................................................................................................7
II. Marketing mix................................................................................................................7
IV. Market entry strategies.............................................................................................8
5.0 Marketing and communication objectives...........................................................................9
6.0 Evaluation and control.........................................................................................................9
7.0 Conclusion............................................................................................................................9
8.0 References............................................................................................................................9

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2.0 Introduction
CSL Limited is an international organization that specialize in human medicine. CSL is a
biotechnology institute which do research, creates, manufactures and market their products to
prevent serious human medical conditions (Vellas, 2016).
The company was founded in 1916 its headquarters is situated in Melbourne, Australia. The
first director of the company was William Penfold, the company commence its operations
under the director in WEHI building in Melbourne before relocating to Parkville in 1917.
Since then the company has grown significantly. The company has so far tried to achieve the
following:
 Creation of tetanus vaccine.
 Development of universal vaccine for tetanus, diphtheria and whooping cough.
 Rapid production and adoption of polio vaccine
 Creation of universal vaccines for animals which prevent enterotoxaemia, blackleg
and tetanus.
 Production of immunoglobulin (Rhesus D) which avert haemolytic disease in infants
because of incompatibility of Rhesus factor.
 Inventing heat treatment which guards blood from receiving HIV infections
In the year 1994 the CSL limited purchased Commonwealth facility. In 2000 the CSL
Limited expanded its size by privatising Swiss Plasma Company. In the year 2004 during the
oversupply of plasma the company again purchased Aventis Behring, a German Medical
Company. This company had be rang 2nd public company in Australia to have attain a share
price of above $ 100 for each share (Huang & Sarigöllü, 2014).

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CSL is currently public limited company and stock is traded on Australian Securities
Exchange market. The company is committed to provide long lasting provision of world-
class healthcare research and developments. This market plan is aid to give strategy of
expanding its market to Asian-Pacific regions.
3.0 Environmental analysis
3.1 The marketing environment
Political factors
Political factors has important role in determination factors that may influence the company’s
profitability in Indonesia (Hollender, Zapkau & Schwens, 2017). CSL Limited area of
operation is mainly pharmaceutical, Life sciences and Biotechnology across many countries
in order to differentiate certain perils of political environment. CSL Limited should consider
analysing the following factors before investing or entering the Indonesian Market:
 Political stability of the country.
 Importance of Biotechnology, Life sciences and pharmaceuticals sectors in the
country.
 Military invasion risk.
 Corruption level more so in in biotechnology, life sciences and Pharmaceuticals
regulations.
 Protection of intellectual property
 Favourable trading partners in the country
 Taxation
 Pricing regulations
 Wage legislation
 Regulations of industrial safety.

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 Tariffs and trade regulations that relates to biotechnology, Life sciences and
pharmaceuticals.
Economic factors
Macro environment like: the inflation rate, rate of saving, foreign exchange rate, interest rate
among other factors influence the aggregate investment and aggregate demand of the within
an economy. Micro environment factors like competition norms affects the company’s
competitive advantage. CSL Limited may utilize the economic factors of the country like
population growth rate, economic indicators like Biotechnological, life sciences and
pharmaceuticals growth rate of the industry, consumer spending rate to predict the growth
trajectory of the organization (Christodoulides, Cadogan & Veloutsou, 2015). The economic
factors which CSL limited must consider while carrying PESTEL analysis are as follows:
 The exchange rates and level of stability of the host country.
 The free market intervention by the government in area related to Biotechnology, Life
Sciences and pharmaceuticals.
 Financial market efficiency – ‘’ does CSL Limited need to raise capital in the new
market?’’
 Level of infrastructure in the new market
 The unemployment rate.
 Host country’s comparative advantage
 Growth rate of the economy.
 Interest rates
 Skill workforce availability in in the field of medicine.
Social factors

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The method of operations and the society’s culture influence the organization culture
within an environment. Communal attitudes and beliefs of a certain country plays an
important role in the way CSL Limited marketers will understand its customers and how
they will design the marketing messages for Biotechnology, Life sciences and
pharmaceuticals industry consumers. The social factors that need to be analysed by the
company before entering the new markets are:
 Demographics and the level of skills available
 Power structures structure and hierarchy factor within the society
 Culture
 The spirit of entrepreneurship in the broad nature of the society. Some encourage
entrepreneurship while others does not.
 Attitudes (environmental effects).
 Education level and education standards in the CSL industry.
Technological factors
Technology is evolving very fast disrupting many industries worldwide. The transport
industry is a good example to elucidate the point. Over the past five years the transport
industry has been evolving very fast. The industry for taxi for instance has been dominated by
many players such as Lyft and Uber. Car industry on the other hand is heading towards
automation led high technology firms like Google and the manufacturing sector has been
upset by Tesla which have initiated the revolution of an electronic car (Griffith &
Yalcinkaya, 2018).
An organisation must not only analyse the technological impacts but also the speed in which
the technology is disrupting the industry should be considered as well. Slow speed give an
organization time to cope and the vice versa. The analysis of the technology involves the
understanding of the following (Morgan, Feng & Whitler, 2018).

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 Technological developments by the competitors of CSL limited.
 Technological influence on the product offering.
 Cost structure impacts in Biotechnology Life sciences and pharmaceuticals
 Technological diffusion rate
 Influence of the structure of value chain in healthcare facility.
Environmental factors
It exist different norms in different markets or the environmental standards which affects
profitability of the organization. Most of the Asian-Pacific regions including Indonesia have
several liability clauses in cases such as mishaps and environmental disasters.
Before CSL enter into the new market it should carefully analyse the environmental standards
which is required for the operation in the proposed market (Hult et al.2018).
Some of the factors that should be considers include:
 Weather
 Climate change
 Environmental pollution regulatory measures
 Water and air pollution on regulations on Biotechnology, Life sciences and
Pharmaceuticals industry.
 Recycling
 Waste management in the industry
 Endangered species etc.
Legal factors
In several countries especially in Asian-Pacific regions, the institutions and the legal
framework are not strong enough to guard the rights of the intellectual rights of an

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organization. CSL company should critical evaluate legal factors before entering the new
market. Some of the factors that should be considered include:
 Anti-trust laws in Biotechnology, Life sciences and Pharmaceuticals of the country
 Discrimination law
 Copyright, patent or intellectual property law
 Consumer protection
 Laws regarding to employment
 Data protection law
 Health and safety regulations
3.3 Swot analysis
A. strengths
I. Biometric industry is among the fast growing industries in the world and it is one of
the reliable sectors in Australia.
II. Broad R&D capacity
III. The organization has products like derivatives of blood plasm, antivenom, vaccines
and reagents of cell culture.
IV. SCL Limited function in a forte segment of anti-venom, genetics, vaccines and many
more.
V. CSL Limited product differentiation strategy is due to robust marketing orientation,
its commitment to providing quality products and products customization and other
support services.
VI. There is small turnover among CSL employees who are compensated very well and
adored by clients. The relative small size of CSL staff upholds solidarity with clients

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and co-workers, and adoptive communication and swift responds to the needs of the
clients.
B. weakness
I. Its exist diseconomies of scale in CSL company.
II. There are several ethical issues in the genetic field.
III. Huge investment will be required for new entry and also much time will be needed
C. opportunities
I. It has been projected that by 2030 there would be nearly 3.0 billion middle-class
buyers in the Asian-Pacific regions. By the year 2030 it is predicted that Asia will be
household to many of the global middle class, increase in wealthy individuals and
tourist which will be approximately 60% of the international middle-class
consumption. A huge demand is expected in the age care and health sectors, natural
prevention care and quality food products. For instance medicine in Indonesia has
nearly 50 million and is depicted to grow up to 130 million by the year 2030.
II. There is an increase in awareness on the use of enzymes, stem cells etc. CSL Limited
may explore more to these areas.
III. Emerging technologies for instance nanotechnology is upcoming which may be joined
to create another generation of medicine and technologies in health care sectors.
D. threats
I. Legal strict rules and regulations must be followed
II. Highly skilled labour is needed in the industry
III. Many biotech organizations are emerging in Asian-pacific regions

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4.0 marketing strategies
I. Target markets
 Target market A : Direct consumers of Biotechnology, Life Sciences and
pharmaceuticals in Indonesia
 Target market B: Healthcare Industry associations in Indonesia which regularly
sponsor or hold Meetings: Trade shows, conventions or conferences.
 Target Market C: Nonindustrial or nonmanufacturing segments of B2B markets with
broad consumer network of medical services.
II. Marketing mix
Each of the marketing mix strategies should fit into the coordinated plan with internal
consistency and single mission statement. Before the adoption of this plan, the marketing
managers should consider moral obligations of hospital in Indonesia to the society.
Furthermore, the Implementation of this plan will need to consider all actors that are
operating in the field. These includes: the doctors, the management, donors, patients, the
community and many others (Fatehi, Priestley & Taasoobshirazi, 2018).
The professional marketers need to know that healthcare firms are responsible for both
society and the culture. The following are the marketing mix strategy that would be applied
by CSL Limited.
a) Product
There are several institutions in Indonesia that offer healthcare services. But each and
every institution offer unique products. CSL company would products would be made
to be very unique with that products that are already existing in the market. The
company will also hire good management and medical staff that would help in the

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preservation of the integrity of the organization (Sapouna, Dimitratos, Larimo &
Zucchella, 2018).
Healthcare institutions in Asian-Pacific Regions are facing a lot of demands to expand
their research activities more so the Hospitals in Indonesia. The CSL Limited would
have to undergo redefinition process in order to determine the best and unique service
for their clients, the company would then market their product to the specific audience
that would be identified.
Product would involve: subscriptions programs which are related to living conditions,
both the hospital revenue and the community: recreation and many more, they will
also create pre-hospital services.
b) Positioning
In the course of marketing analysis for patients, many strategies for trading effectively
with the available market would be put in place. The market will respond positive if
the company would put more efforts on generating more alternatives.
The ideas of mission and image will be very crucial. If the Image of CSL Limited in
the eye of the potential customers is bigger than the ideal, or if the mission statement
of the company is very old for the needs of the current market needs, or if the mission
is the same with other companies. Changes-repositioning would be necessary.
Company’s image is the crucial term.
CSL limited will need to hire marketing consultants and other specialist like
advertising agencies or research firms because their expertise would be required. A
marketing director would be needed to do task such as assisting in promotional
planning, creating communication channels, recruitment among other function that
may be assigned to him/her.