CSL Marketing Strategies: Product, Pricing, and Sustainability

This report provides a comprehensive analysis of the marketing strategies employed by Commonwealth Serum Laboratories (CSL), a leading biotechnology company. It delves into CSL's product strategies, emphasizing the importance of strong clinical data, validated targets, and well-featured properties. The report examines the company's pricing strategies, including premium, economy, penetration pricing and price skimming, highlighting their application in different market scenarios. It also discusses the importance of place (distribution) and promotion in reaching the target market effectively. Furthermore, the report explores CSL's sustainability practices, emphasizing its social responsibility, economic viability, and environmental compatibility. A SWOT analysis is included, outlining the company's strengths, weaknesses, opportunities, and threats. The report concludes with a summary of the key findings and recommendations for CSL to maintain its market leadership in the ever-evolving biotechnology landscape.

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MARKETING STRATEGIES
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Table of Contents
Introduction......................................................................................................................................3
Marketing Strategies of CSL...........................................................................................................3
Product strategies.........................................................................................................................4
The product should consist of strong clinical data...................................................................5
It should have a validated target...............................................................................................5
It must possess well-featured properties..................................................................................5
Pricing Strategies.........................................................................................................................5
Premium Pricing.......................................................................................................................6
Economy Pricing......................................................................................................................6
Price skimming.........................................................................................................................7
Place.............................................................................................................................................7
Promotion.....................................................................................................................................7
Sustainability Practices implemented by CSL.................................................................................7
The company is socially responsible...........................................................................................8
CSL is economically viable.........................................................................................................8
Compatibility with the environment............................................................................................8
CSL SWOT analysis........................................................................................................................9
Strengths.......................................................................................................................................9
Weaknesses..................................................................................................................................9
Opportunities................................................................................................................................9
Threats..........................................................................................................................................9
Conclusion.......................................................................................................................................9
Appendices....................................................................................................................................11
Appendix 1.................................................................................................................................11

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Appendix 2.................................................................................................................................12
References......................................................................................................................................13

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Introduction
The Commonwealth Serum Laboratories (CSL) started operations in 1963. The
Company majorly deals in carrying out of intensive research and manufacturing of vaccines and
general set of equipment used in medical laboratories. CSL Limited has played a vital role in
countering the spread of various infections in Australia and the world as a whole through the
production of vaccines. CSL is one of the leading industries in the biotechnology sector. It is
credited with developing vaccines against tetanus, whooping cough diphtheria, and diabetes
among other infections. As a growth strategy, CSL has rapidly involved itself of the Swiss
plasma company ZLB Bioplasma in 2004 and Aventis Behring of Germany that manufactures
medical apparatus.
The acquisitions and takeovers have enabled CSL to have a strong grip in the
biotechnology sector leading to the Company being one of the entities in the production of
influenza vaccine in the world. CSL needs to keep in touch with the latest marketing strategies
for them to remain a float in the ever-changing technological environment.
This paper will discuss the various strategies employed by CSL Company in the
marketing of their products and services to the final consumers. It will also focus on how
effective the marketing approaches are in comparison to those used by their competitors. CSL
can only remain to be a market leader in the provision of medical equipment and vaccines if it
follows recommendations of the marketing and research teams. The two must work hand in hand
to ensure the production and supply chain is not affected.
Marketing Strategies of CSL
It is imperative to note that for any company to be successful, it needs to ensure that it
carries out extensive marketing. The first step is to carry out a market research to know what
kind of products they need to produce to fulfill consumer needs. CSL limited, therefore, should
ensure that it facilitates and adequately equip the research and development section of the
company with adequate resources for them to carry out quality research (Boumans and Davis,
2010, pp. 129-133). The research should establish the market trends and ways in which the
company can improve quality of their products so as outdo their competitors in the market. The
top-level management should use this information for them to come up with the relevant market

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mix approaches that CSL limited should use so as for increase the sales volume and increase the
shareholder’s wealth. CSL employs the following strategies in marketing of its medical products;
Product strategies
CSL provides a broad range of products and services to its clients. The main products it
deals include the production of vaccines, blood plasma, ant- venoms and manufacture of
laboratory products. CSL should ensure it majorly focuses on the wants, needs and the
perceptions of the final consumers of its products and the feel of the general public to the items
they manufacture. Consumers needs can be established through carrying out of constant research
on the product performance in the market.
Product strategies will come up with ways in which CSL can fulfill the ever-changing
customer requirements and change any negative perception the general public might be having
towards its products. Moreover, product research can easily bring out the challenges that the
clients may be facing in the process of using the company products. CSL hence will be able to
rectify the same to retain and attracts more consumers. The entity in developing its product
strategy should determine the factors of customer preference towards its products, for instance,
the level of quality and convenience of the product to the end users.
CSL has developed strong and efficient strategic collaborations with leading centers of
excellence and leading companies across the globe to have an input in product innovation
particularly in plasma therapeutics and in developing of vaccines.
The company has also invested heavily in strategizing to improve product quality. This
has been achieved through the establishment of a research and development section that is purely
focused on ways of inventing new products, for instance, the manufacture of protein medicines
to cure various human diseases and to ensure that the final product is safe to human beings
(Wooliscroft, 2011, pp. 499-501). By doing so, the customer satisfaction levels have
tremendously improved, and consumers feel drawn closer to the entity. The R&D department
also offers flexibility in cases of a shift in consumer tastes and preferences. In CSL when the
R&D team identifies a new product it first evaluates if it fulfills the following conditions;

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The product should consist of strong clinical data.The data will be beneficial in carrying
out of the analysis on the effectiveness of it in the market. The company deals in the medical
sector and thus must produce products that meet these market sector requirements.
It should have a validated target. The product must be able to meet a clear and legal
market portion for it to be pursued. This is important since manufacturing products that cannot
meet the prevailing marketing legal expectation will inhibit their sale.
It must possess well-featured properties. This will become of the essence in the
production stage. The product to be developed should have a strong intellectual property
position. The final attribute will ensure that CSL can patent the product manufacturing
knowledge to keep away competitors.
It is worth noting that CSL puts more emphasis on developing products that must help
improve the condition of patients. Hence, it will not shy to work in synergies with similar entities
holding the same view. All these product strategies will ensure that the CSL Company can
compete favorably in the biotechnology environment.
Pricing Strategies.
CSL pricing and structure policies play a significant role in the shaping of the company
image, securing and attracting new clients. CSL need to set into considerations various sets of
factors before fixing the price of its products. It must consider the total cost incurred in
producing the product, the prevailing market forces of demand and supply and government
restrictions (Blythe, 2009). The strategy is beneficial since it will enable the entity to achieve
success by identifying the price point where they can achieve maximum returns (John, Katherine
and Jocz, 2012).
CSL should ensure they focus on providing high quality products at a competitive price
to disadvantage the main direct competitors. CSL should at all times ensure they use a mix of
pricing strategies for them to compete favorably. The prices set should be justifiable. CSL should
survey the potential customer groups to find out their responses on the feeling regarding the
pricing of the competitors; the general industry set prices and areas that need to be addressed

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(Hanssan, 2012). CSL employs the following pricing strategies as dedicated by the marketing
aims and objectives.
Premium Pricing:-CSL employs the use premium pricing in cases where it introduces
new products in the market. The strategy entails the company setting of commodities at a price
which is slightly higher than that charged by competitors. The newly launched product need to
have something unique that keeps it distinct from the rest the market offers (Barry and Elizabeth,
2017). CSL should ensure that premium pricing is majorly applied in areas it sets sight to acquire
a new market niche by becoming a market leader in pricing. Consumers have a perspective
tendency that products selling at a high price are of better quality (Clarke, 2007). The approach is
best suited in the early stages of product life cycle as it will ensure the company can maximize
sales hence boost returns to cover the initial cost incurred in product launch (Foo, 2011, pp. 375-
393).
Economy Pricing: Given that CSL is a market leader in the production of medical
equipment and vaccines then it ought to apply this strategy. Here the company will set the price
of its commodities at a minimum market price. It is vital to use this approach to ensure CSL
attracts the market segment that is very sensitive to changes in price however small (Barry and
Elizabeth, 2017). The low-cost approach has been in use word over a quiet period and it has
proved to be of value to big organizations like Wal-Mart.
Penetration pricing Strategy:- CSL employees the use of this approach to capture
market shares in regions where the Company is unheard of. The company initially sets prices of
its products and services at a relatively low price in comparison to other industry players to
attract new buyers (James, 2014). The reasoning behind the setting of low prices is aimed at
creating public awareness of the existence of the product in the market and gives the various
consumers a chance to taste the effectiveness of it.
CSL will initially have to ensure with losses in the initial stages of using this approach,
but the brains behind it propose that this will change once the target group starts to embrace the
product. CSL makes use penetration pricing in crowded market segments. CSL can employ the
strategy in areas with a high population for instance in India to attract a new set of clientele. The

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approach should guarantee product sustainability to the CSL.It can be achieved through the
entity utilizing different sets of marketing in various regions.
Price skimming:- CSL will employ this strategy by setting temporarily high prices on its
products and services. When doing this CSL should ensure it is aware of the actions that the
competitors will take to counter this. The approach will result to CSL an increase of the profit
levels to offset the price drop that will set after the product has been in the market for a while
(Milisavljevic, 2013, pp. 299-309). For price skimming to be successful CSL must ensure it
develops medical products that are of high quality in comparison to market rivals. CSL should
make sure it puts more emphasis on the research department for them to be able to develop new
products that satisfy the customer needs so that it continues to be the market leader and
appropriately apply this strategy (Booker, Bontis, and Serenko, 2008, pp. 235-246).
Place
CSL manufactures good to be consumed by consumers who are spread across the world.
The CSL entity should ensure that products can reach the targeted market segment within the
shortest time possible at the right price (Khan, Munir and Willmott, 2007, pp. 1055-1077).
Hence, the company must design ways of reducing the supply chain so that the final consumer
can pay a relative lower price. CSL products should be accessed by consumers from convenient
stores across the globe. To reach a wide client base CSL should open up distribution points at the
production site so as to complement the distribution channels that are in existence; this can be
done by the clients making online orders and door to door delivery utilized.
Promotion
It encompasses a set of approaches which the CSL organization uses to remind the
existing and reach new prospective clients. It simply entails passing product information to the
targeted buyer. The main aim of promotional activities is to convince the target consumer to
purchase the product being offered (Charles, 2012). Various marketing experts are in agreement
that the promotional mix which CSL limited should embrace to realize an increase in sales
include; public promotion, advertising elements, personal selling and even sports sponsorship
(Mankiw and Taylor, 2011).

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Sustainability Practices implemented by CSL.
CSL should engage in the production of goods and services that meet the current needs of
its consumers without interfering with the prospects of the future generation's ability to meet
their needs (Karniel and Reich, 2011, pp. 13). CSL has greatly carried out is production process
in a manner that sustainable. Embracing sustainable practices is critical to the profitability of the
organization. This will help the company increase its profitability and thus, its productivity.
Besides, sustainability practices increase the business longevity of the organization (Chaudhry
and Krishnan, 2007, pp. 205-220). The sustainability practices of CSL are evident in many
different ways. These are discussed below.
The company is socially responsible
CSL has a clear policy about the way it relates with the various stakeholders. It provides
a conducive working environment to its workforce. The company overtime has been able to
cultivate a tradition of mutual trust and respect among the staff. Moreover, CSL carries out
marketing of its products in an ethical manner (Valentine, Godkin, Fleischman and Kidwell,
2011, pp. 353-372). The social responsibility is important in helping to improve the relationship,
and the interactions of the people factor in the organization. Social responsibility of CSL has
increased its good relationship with the stakeholders thus, benefiting the organization (Enquist,
Edvardsson and Sebhatu, 2007, pp. 385-403).
CSL is economically viable
The entity makes prudent use of natural financial and human capital to create value and
satisfying the needs of consumers keeping in mind future generations. The inputs for the
production of vaccines and ant venoms are obtained through a natural mechanism from the
ecosystem CSL works towards manufacturing of products that are long-lasting, biodegradable
and can be easily re-used than their main competitors (Chermack and Bernadette, 2007, pp. 383-
399). The economic viability of CSL has made it gain a competitive advantage over other players
in the industry. Therefore, sustainable practices are critical for organizations to remain on top of
others in the industry. Additionally, economic viability will help the company to increase its
business longevity. Thus, it will enjoy the market for a long time (Edvardsson and Enquist,
2009).

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Compatibility with the environment
CSL engages in innovation to ensure it develops safe and eco-friendly products to reduce
to bare minimum pollution levels to the immediate surroundings (Kerr, Janda and Pitts, 2009).
CSL production processes ensure the company can get high returns as they are less wasteful.
Currently, the environmental stewardess is one of the key areas of concern on the globe. The
society is working towards attaining a greener environment. Therefore, CSL has been prudent to
adopt ways that reduce damage to the environment.
CSL SWOT analysis
Strengths
CSL is a market leader in the production of laboratory equipment in Australia, and the
entity operates in one of the fastest growing sectors. Due to the financial favorable financial
capacity, it’s able to engage in extensive research and development in the main products like
blood plasma derivatives, and vaccines in its market niche segment (Cameron, 2014, pp. 22-27).
Weaknesses
The entity suffers from a wide range of diseconomies of scale. More especially in the vast
resources required to develop new products, CSL has also struggled to shed off unethical claims
related to the labeling of its products.
Opportunities
The company can engage with various hospitals across the world to popularize the use of
stem cells hence leading to the acquisition of new market segments. CSL can also diversify into
production of enzymes.
Threats
Just like any other company in the medical industry, CSL faces strict regulations from
government agencies. The entity additionally requires highly skilled personnel to drive its
innovation which is very expensive to acquire.
Conclusion
From the preceding, it is clear that CSL is a market leader in the biotechnology sector in
Australia. For the sustainability purposes, it needs to ensure that it manufactures products that are

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environmental friendly in nature. This will significantly reduce the pollution levels and improve
the health of the final consumers that the company serves. For continued growth, it should ensure
that it employs a mix of appropriate marketing strategy to its various segments. CSL should at all
times pump more resources to the research and development section to develop new products to
solve immediate consumer needs. This is vital to ensure it keeps away the direct competitors and
maximize shareholder wealth.

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Appendices
Appendix 1

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Appendix 2

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