Marketing plan for a medical distribution company in Iraq

Marketing plan for a health check exam dispersal guild in IraqThis confederacy believes that the success of its channel concern is extremely dependent on the strategies that the management give adopt in running the pedigree. Accordingly, on that point was a need to establish a stemma forge that would be habitd in operating the medical examination distribution site (scientific sureness).The smart set leave alone devour the following two business setsBusiness model 1Where the distribution office purchases products from the shapers, and wherefore outlays them in the beginning delivering them to customers.Business model 2Where the distribution office acts as an agent on the manufacturers behalf, such that the manufacturer pays the distributor a commission on sales according to a mutual agreement.The scientific bureau leave switch use of both business models in baffle to maximize gains from the business. The first model provide help the company to gain prof its by selling choice products at inexpensive prices. This model is also flexible because it allows the business to set prices that are compatible to the military position at hand. An ensample is where the business whitethorn ask to attract customers with lowering prices. The back off model go away be useful to the company because it pass on reduce financial pressure as soundly as deliverance in to a greater extent pileus. The business ordain only be required to return products to customers on behalf of manufacturers to ministrationore commission. This essentially means that no initial smashing outlays go away be required since the manufacturer entrust be liable for all expenses. This model appeals to multi-national companies who want to get a foothold in the develop economy of Iraq, since they cant come in themselves because of the evaporable security situation.CORE STRATEGYMission dis perpetrateation To continuously facilitate clients by utile provision of medical supplies and services, enchantment considering the social, semipolitical and religious beliefs of the contact environment.Market scopeThe market segmentation for the company ordain be based on creed communities.Baghdad, like many otherwise provinces in Iraq, is water partingd into importantly Sunni and Shiia communities.1These are the two denominations of the Muslim faith. The companys employees allow for be highly disciplineed and throw knowledge of how to interact appropriately with each of these communities since their traditions, political beliefs and well-nigh religious beliefs are different. The distribution office pull up stakes management on these communities in Baghdad and beyond and will address the practice of medicine needs of hospitals, health kernels, physicians, and pharmacies. The individuals category will mostly be served by the hospitals and pharmacies and will further be categorized into men, women and children. Notably, each of these cust omer focus groups has different needs, despite requiring green medications in certain circumstances.During the start up configuration the company wont be targeting the Kurdish biotic association that lives in the north of Iraq. This is because the company is unfamiliar with their language, traditions and the bureau they conduct business. However, during the growth stage the company may consider working as an in straight off distributor to this community by building links with Kurdish traders. They in turn will target the Kurdish community.Because the security situation in Iraq continues to be volatile2, populate continue to be injured on a daily basis. The company will run the hospitals and pharmacies with the appropriate equipment, supplies and medication to deal with these injuries. In addition to that, the company will provide medical equipment take to revive the health industry. This industry has been damaged by 30 years that saw the Iraq/Iran war and the initiative and 2nd Gulf Wars.As the business continues to grow, it is highly probable that the products portfolio is likely to expand such that more true(p)s will be incorporated. Examples will include dental equipments, laboratory equipments such as microscopes, X-ray machines and other radiography machines.Basis for differentiationThe distribution office will gibe that the honorables obtained are of high quality and that counterfeit drugs like the ones possessed by other sellers are avoided. The determine would be such that the distribution office makes enough profits but offers a price that is lower than that of competitors. This will most in spades attract customers to the office as they seek lower prices. This is an important strategy stock-still for a start-up company because the economy in Iraq is evolution slowly.The distribution office will be the first to enroll a loyalty program, which will reward regular customers with discounts. This loyalty program will be designed in such a way that customers gain points whenever they shop at the medical distribution office, which can then be redeemed in the form of products or reduction in prices. A certain play of points will allow customers to gain goods worth a peculiar(prenominal) amount of money. This, in turn will tug customer loyalty and consequently enhance the distribution offices differentiation.STRATEGIC RESOURCESCore competenciesThe companys internal resources will give it a competitive advantage main(prenominal)ly its knowledge dandy and the dedication of the employees. These employees will deport a high standard of knowledge about the companys products and aft(prenominal) sales care. They will undergo cooking courses in all these elements and be required to up-skill on a regular basis in order to be promoted within the company. They will also be highly trained in communication and will bugger off a great cultural knowledge, which will enable them to develop unique relationships with customers fr om different backgrounds. This climax is unique and will be essential for the success of this business.Furthermore, the companys strategy will embrace a junto of a wholesaler/agent model. This will go through that the companys financial resources are not depleted part the company continues to make profit. Also, the office will enhance customer needs satisfaction due to the handiness of products and fair prices. The two business models will allow flexibility in such a way that the company can easily adjust to new opportunities. These could include the sale of medical equipment such as wheel chairs, radiography equipments and surgery kits among others.Strategic assetsApart from the medical supplies, the distribution office will have triad transport vehicles that will be used to ferry products from the store to the customers location. These transport vehicles, will be driven by skilled drivers, who know the ins and outs of the city of Baghdad. This is essential due to the traffic disruptions caused by highly security measures and checkpoints.3This is to ensure that goods are delivered on time thus up customer satisfaction.The distribution office will also have special forklifts that will be used in transferring items from the store to the payload zone during a sale and from the loading zone to the store during deli rattling. These forklifts will not only fulfill time but also reduce the number of staff required to work at the store. These will set the business apart from competitors because we believe this strategic asset will give the businesses an added advantage everyplace competitors.PARTNERSHIP NETWORKSupply chain managementThe distribution office will use an coordinated cede chain that aims at connecting the manufacturers, retailers and customers. An integrated supply chain will help to join the functions of the firms abstruse so that they can easily connect to one another and obtain important entropy.The company believes that a supply chain ca n only act effectively if the right technological infrastructure is utilised. This tone-beginning is new to the Iraqi market, which has not traditionally relied on technology. The medical distribution office will make use of supplier portals4.This technology has an advantage in that it combines a variety of activities including order management, demand visibility, blockade code generation, advance ship notice functions and the generation of shipment requirements. This system will assist the medical distribution office in organising its supply chain in such a way that tuition flows effectively amidst the office, the retailers and the manufacturers. As a result, supply will be continuous and factors within the supply chain including demand and order replenishment will be addressed with ease.Other key relationshipsThe business needs to establish proper relationships with other stakeholders other than the manufacturers and customers in order to enhance co-existence. Good business in Iraq is determined by how well connected the business owners are. The strength of relationships that they have with others in the business world, government representatives and within the community cannot be underestimated. The business will join the scientific bureau pocket billiards so as to act together in dealing with issues such as government regulation. In essence, it is advisable for a business to be part of a group with similar interest.CUSTOMER portholea- Target marketAs stated above, the medical distribution office will focus on Sunni and Shiia faith communities. This market segmentation plays an important role in ensuring that the needs of each segment are met. The company will focus on pharmacies, hospitals, and governmental bodies in these communities. It will then further divide the communities in terms of men, women and children. This allows for easy collection of information regarding the needs of a particular group so that they can be served more effectively. I n essence, segmentation allows specialised treatment of clients.According to recent information on the World Health Organisation website5, the following are the most common illnesses that the company will be providing medication and services forWater-borne diseases, such as typhoid fever and hepatitis A, are on the draw close as a result of the damage to water and sewage systems caused by the war.Heart diseases are a leading cause of death both cardiovascular and rheumatic heart diseases are on the rise. The second one especially, because of the uncertainty of the security situation and the country experiencing three wars in the last 30 years. speeding respiratory tract and diarroheal infections are high among children. Incidences of puerility cancer are ten times that of true countries. This is highly contributed to the emissions from bombs during the wars. There are inadequate supplies of chemotherapeutic drugs, which is an area the company can build on. agnatic mortality rates are very high as over 40% of births occur extracurricular of health institutions.Upon entry into the Iraqi market, competitors will react negatively and may even attempt to further the distribution office out of business. The distribution office will need to be well disposed(p) which will involve a proper analysis between targets and the firms resource configuration. The company will be using the combination of its core competencies (as detailed above) and its supply chain technology to achieve its targets. This approach will minimise the threats of competitors and other new entries to the market. Once the company has been established, new opportunities such as increased business within the uniform industry or in a different setting may be undertaken thus increasing the business profitability.b- Fulfilment and supportThe business will make use of direct channels to distribute the products. From the manufacturer, the distribution office will sell or deliver them straight to the i ndividuals or organisations buying the products. This direct approach will minimise the cost and enable the office to build good relations with both the manufactures and the clients. The client base will be served by a dedicated customer support staff that will help in recording order specifications so as to ensure the right products are bought. The skilled drivers will ensure that they are delivered in time. With time, the distribution office could have a few subsidiaries within the region to supplement the main office.c Pricing structureThe pricing strategy will depend on the prices offered by the manufacturer. The strategy for the medical distribution office will be to provide a price that is slightly below that of competitors. While this may impact on profitability, it will attract more customers to the office.BUSINESS RESEARCHOpportunities in setting up a medical distribution office in IraqIt emerged that the warfare that has existed in the country for the last 30 years has pu t the country in disarray and not many businesses have been able to operate at an optimum magnitude. Currently, Iraqs 29,671,6056population is served by only 150 medical distribution centres. This can be attributed to the serious indemnity to infrastructure that occurred during the wars7. Most of the offices that exist are either small or medium surface, with a capital value of between $1million to $3million US8. This shows that the populations demands are not macrocosm met, that the competition is not stiff, and a well-organised medical distribution office is bound to excel in the Iraq market.Local population preferencesThe buying habits of Iraqi community are to buy medicine from local anesthetic pharmacies, as they often skip the doctors diagnosis. However, if they do get a local doctors prescription, they prefer to buy their medicine from their local pharmacies because there is a lack of medical supplies in the hospitals9. For example, a Sunni person will visit their local Sunni doctor and buy their medication from a Sunni pharmacy. These findings support the approach that this medical distribution office is taking by targeting communities. At the start the Sunni and Shiia community and, at a later stage, the Kurdish community.While some Iraqi people preferred local products because their sources could be trusted, others were of the view that import medicine is likely to be more effective especially if it comes from the developed countries where manufacturers use more advanced production methods.Statistically, 8 out of 10 of the participants10preferred to use imported medication while the others indicated they would rather use local medications. The group in support of the imported medication retained that international companies tend to manufacture good quality products as opposed to local companies. They tended to trust imported medications more because they used them successfully before. Furthermore, they believed that as the industrial infrastruc ture is damaged in Iraq it is hard for these local factories to produce good quality products. The number of products they can produce also limits these local factories. As a result, they were afraid of trying out the local medications. Participants who preferred local medications did so because they had been using them for years and didnt want to switch. These findings suggest that the business should continually supply imported medications, as these are likely to attract high demand than local medicines. (See figure 1)1-MACRO ENVIRONMENT ANALYSISPolitical factorsPolitical stability in Iraq is kinda uncertain and businesses investing need to take proactive measures aimed at protecting their businesses from harm in result of an incident. It is notable that while things have cooled down and reconstruction efforts are underway, it may be hard to foresee political unrest that is likely to occur. The political system in Iraq is composed of a number of parties of differing, specific faiths. They are either Sunni, Shiia or Kurdish parties. It is essential for the business to have political connections, as the take aim of corruption in Iraq11is so high that it would be very hard for a business to provide without both political and financial support.Economic factorsThe International Monetary Fund predicted that Iraqs economy would grow by 7.9% in 201112. This growth is linked to the improving security situation in the country. The level of employment will rise, therefore increasing the populations disposable income. Baghdad stops the most economically important city in Iraq, with the highest population. It is also regarded as the richest city in the country.13It is the capital city and is therefore bound to be the centre of all activity. Given its estimated population of 8 million people, the medical distribution office is likely to perform well in Baghdad. With continuous restructuring of the city to clear the effects of the war, normal business is expected to take over such that the business will perform well.Social-cultural factorsIraq is rich in terms of social and cultural aspects. existence a Muslim dominated country, with different denominations within that faith, it is notable that there are visible differences with the rest of the world in terms of social behaviour and business expectations. It is therefore important for this business to train its employees how to interact and communicate with these different communities. There are, however, some similarities that should be respected and complied with. Crossing ones hands or legs during a conversation, for example, is considered rude and should therefore be avoided. A handshake at the beginning and departure is highly regarded. Friendships and connections are highly emphasised in Iraq and it is common to find people doing business only with the people they know. Bribes are also common such that getting various tenders and privileges may require a business to part with a signifi cant amount of money as a purchase un slight the owners are well connected politically.14Technological factorsTraditionally, most businesses in Iraq have not relied heavily on technology, beyond the elementary use of emails, fax etc. One of the main obstacles for the use of technology has been the shortage of electricity. It is, however, an area that is developing rapidly in recent years. It is expected that it will be essential for the success of the business. This supports the companys plan to introduce supplier portals as part of its supply chain.Environmental factorsBaghdad is centrally located and is therefore a viable location for business. Being at the centre of most economic activity in the country, Iraqs capital Baghdad is expected to have good returns for businesses.Since the security situation is still volatile, and the government is focusing on stabilising it and on the reconstruction of the damaged infrastructure, it is putting all its efforts into these areas.The imp lementation of environmental legislation is not a priority for the next few years.Legal and regulatoryThe legal system in Iraq is improving slowly. It is however notable that bias still exists within the system for people with money or political connections. Bribery is highly apparent and one is likely to be served faster if they give a bribe than when they do not.For the medical distribution office the regulation is that all the companys products must pass the quality correspond insurance department test in the Ministry of Health. Also, the company must register with KIMADIA15, which is a department in the Ministry of Health. This is the only authorised governmental body to which the company can tender in order to supply the governments needs for pharmaceutical products and equipment. If the company fails to comply with these policies, it will not be able to practice in the Iraqi market.Industry AnalysisPrior to the costly Iraq/Iran war, the health industry in Iraq was characteris ed as being one of the best in the region. Following the first Gulf War in 1991, the UN imposed sanctions to hike Iraq to disarm its weapons of mass destruction. The effect of this had disastrous effect on the economy, especially on the health empyrean. UNICEF estimated that 500,000 died as a result of a lack of medical supplies, clean water and malnutrition during this time. This sanction was lifted after the invasion of Iraq in 200316.The industry remains unstable as most businesses are still find from the effects of the wars. As the economy in Iraq is emerging gradually the performance of the health industry is instead encouraging. It is estimated that the health infrastructure will need around $8 billion US to be revived.As Iraq is a country with 90% of its revenue coming from the sale of oil, therefore the development of the health sector largely depends on how many barrels of oil are exported. The Iraqi budget for 2011 will be approximately $86billion17, with around 7% (or approx. $6 billion) of it to be allocated to the health sector. This excludes the private sector health facilities (pharmacies, hospitals etc). This would indicate that there is room for more than the 150 medical small to medium size distribution offices that shortly serves the population.Most of the private health care facilities, including the medical distribution offices, are locally owned. As a result, the population is more likely to identify with the owners, given similarity in culture. There are very few outside owned businesses in Iraq because of the unstable security situation and the governments inability to protect foreign investors. (See figure 1)(Figure 1) Ranking of Iraq in Protecting Investors Compared to good practice and selected economies18The health sector in Iraq is controlled by government regulation. It dictates the types of medication and medical equipment that can be brought into the country. However, the government has no legislation as regards the price of products. This falls under the individual medical distribution offices remit.Competitor ResearchThere are a number of scientific bureau (medical distribution offices) competitors in Baghdad. Most of these businesses are small to medium sized businesses, all of which aim at providing medication and medical equipment. The major and most respected competitors are Al Assad Scientific Bureau, Al Bashaer Scientific Bureau, and Kasim Irzzouki Scientific Bureau. Al Assad is a leading distributor and has been a main vendor for the Ministry of Health. It is well known and enjoys a high market share both in Baghdad. However, the company does not have any branches or market share in the Shiia southern region of Iraq, especially Basra. In addition to that the company has not won any tenders with the Ministry of Health for the last two years. Kasim Irzzouki is the main distributor in Iraq for Organon.19This company mainly produces anti-impotence drugs for both men and women. It has the major m arket share in this area and distributes all over Iraq. Al Bashaer has a wide range of Egyptian and Indian medical products. They are well known for supplying hospitals with disposable items such as cannulae and Foley catheters. Neither Al Assad or Al Bashaer has done well outside of Baghdad. It is worth noting that none of the major competitors supply chemotherapeutic drugs, even though there is a need in the Iraqi market due to the high incidences of childhood cancer.Market analysis, planning and researchThe population of Baghdad is approximately 8 million. This is a considerable market size and the business could benefit immensely if it could manage to get a large market share. During the start-up phase the companys operations will be conducted in Baghdad. There are approximately 10,000 physicians in Baghdad20. Furthermore, there are around 1,500 pharmacies in the city21. There are three main governmental hospitals and three main private sector hospitals.This indicates a large po tential client base for that the medical distribution office. It is notable that the medication market has widened significantly. It is projected that in the next few years, as the security situation and the economy in Iraq improves there will be a return of pharmacists and doctors who fled, for their own safety, during the last 20 years. There will also be an increase in the number of hospitals, and it is projected that the population will increase.Baghdad is divided into two main regions, Al Kahr and Al Risafa. Each of these regions has both Sunni and Shiia communities living in separate areas. There are only a few areas where you will find a flux of these communities living together. There are other minority groups too, but the company will not focus on them at first. The market strategy for the company is to target the hospitals, clinics, pharmacies and medical centres in each of these areas. The company will rank these potential clients in terms of the number of people they tr eat on a daily basis. During the start-up phase the priority will be to target those with the largest client base and build a relationship with them. The company will also target those with a smaller client base, but with less frequency. The Ministry of Health will be one of the major potential clients. In the expansion phase, the company will target the other provinces in southern and northern Baghdad. The southern provinces of Baghdad are mainly Shiia communities, while the provinces north of the city, as far up a Kurdustan, are Sunni communities.As previously mentioned, the knowledge capital of the companys employees will play an important role in its development. The staff will have a riches of cultural knowledge, which is essential for the business. They will be highly skilled, which will enable them to build and maintain good relationships with customers from different communities. Repeat business should occur once good relations have been established between the institution or individual and the medical distribution office.The company will also adopt profits advertising. The web site will include the companys details such as the address and the products they deal in, with the aim of informing customers about their work. Most of the Internet posts will contain the businesses achievements and well-known clients in order to promote a professional look.In addition to raising more capital, the companys growth strategy is to implement the same ideology in provinces other than Baghdad. It may also branch into sales in the Kurdish community as an indirect supplier, and introduce new products to the Iraqi market.ORGANISATION MANAGEMENT AND OPERATIONSManagement aggroup and modelThe teamThe management team will consist of the board of directors, the Chief Executive Officer, the serviceman resource manager and the leave of accounts. This team will be answerable for steering the business done addressing various aspects. The CEO will oversee the operations of the company and manage resources in such a way that the business objectives are met. The CEO will govern every employee in the company through the Human Resource Manager. The business will employ two HR officials, one of who will be the HR manager. He or she will oversee the business human resource needs and ensure that the business is well equipped with people skills to enhance smooth operations. The HR will govern the hiring process, training, requital issues and employee welfare within the business. One of the employees in the accounting department will act as the head of accounts. He or she will ensure that financial resources within the business are well managed and accounted for so as to ensure that the needs of the business are met effectively. The head of accounts will also be responsible for effectual distribution of resources within the firm.Management modelThe management will apply the management by objectives model (MBO). Under this method, the company defines objectiv es, which should be met by all employees and then compares their performance against these objectives. This model is effective in maximizing performance and avoids indulgence in activities that deviate employees from their objectives. Accordingly, the business is likely to succeed as opposed to where employees efficiency is unaccounted for.Management philosophyConcern for employeesThe business intends to maintain an integrated system, whereby the management will oversee efficiency in the firm while allowing employees to actively participate in the management process. The employees remain the major assets of the firm and are definitely responsible for the success of the business. The business will go to every length to ensure that it finds hires and trains good employees and treat them like family. The management will ensure that they communicate effectively with employees and continually acknowledge their importance through proper reward systems and involving them in management deci sion making.hands-on managementManagers will be expected to know the business comprehensively and guide employees through the action of the business main objectives. They will continually interact with customers and employees in order to effectively understand and happen their needs. Managers will set the pace for the employees and as many business people would attest, employees are likely to wo