SRS needs to develop a marketing channel system particular to its new bygasse prescription bottle. Essentially, SRS should identify its target market, and reverse engineer its supply chain, called demand-chain planning. Its target market is every seller of prescription drug bottles. SRS can employ a push strategy, tasking its sales force and committing resources to entice intermediaries to carry, promote, and sell the bygasse prescription bottle to end users (Kotler & Keller, 2007).
SRS will employ an intensive distribution strategy, where the manufacturer uses as many outlets as possible (Kotler & Keller, 2007).
The bygasse prescription bottle can be distributed to three separate intermediaries: large pharmaceutical companies, wholesale prescription bottling companies, and retail drug stores.
This new product can be appealing to these intermediaries, as there is a growing effort globally to reduce waste and the use of plastics. In addition, this will be attractive to companies with corporate responsibility initiatives. These strategies can be employed both SRS’ home base in India, as well as internationally in Panama. An additional intermediary for SRS in its Panama launch will be through the Panamanian government. The Social Security Department of Panama annually invites bids from companies to supply, store, transport and deliver drugs for a minimum 12-month term [ (Central American Business Network, 2012) ]. SRS can partner with one of these companies making a bid to supply the bygasse prescription bottle. Domestic and International Pricing Strategies
The Research paper on Lipman Bottle Company
Synopsis Lipman Bottle Company, the leading bottle distribution company in Albany, New York started distributing bottles of large bottle manufacturers on 1909. From then on, they started to adapt to the changes in the bottling industry such as the use of plastics, which prove to be profitable on their end. They grab the opportunity to distribute and print bottles with different shapes and sizes ...
Kotler and Keller (2007) suggest a six-step model for setting price policy (Kotler & Keller, 2007).
First, SRS should select its pricing objective. Initially, SRS should set a survival pricing objective to just cover its variable costs to obtain a toehold in the market, then a market-penetration strategy to maximize its overall market share. The next step is to determine demand (Kotler & Keller, 2007).
While the price elasticity of demand for prescription drug bottles would be inelastic (demand would not change if there was a change in price), the demand is more elastic for the bygasse prescription bottle, since it is a new product, and it will be more expensive initially. The third step involve estimating costs (Kotler & Keller, 2007).
Assuming that adapting bygasse production to create the prescription bottle will carry additional costs than regular plastic bottles, the initial cost will be higher than the plastic bottle. Also, when launching the product in Panama, the variable cost per bottle will also include the shipping cost to Panama. Going forward, SRS will determine whether it is profitable to produce the bottle in Panama, as Panama is a major producer of sugarcane [ (Central Iintelligence Agency, 2012) ]. Analyzing SRS’ competitors, due to the cost of new technology, the plastic bottle manufacturers will be able to produce and thus sell their bottles at a lower cost. SRS will need to select a pricing method based on the costs, competitor’s prices, and consumer demand (Kotler & Keller, 2006).
In this case, SRS should use a going-rate pricing method, setting its price a little higher than its competitors enough to cover costs and to enter the market.
Reference
Central American Business Network. (2012).
Business to Business-Central America Data. Retrieved December 9, 2012, from CentralAmericaData.COM: http://en.centralamericadata.com/en/article/home/Panama_Purchase_of_Medicines_for_15_million Central Iintelligence Agency. (2012).
The Term Paper on French And U.S Work On The Panama Canal
THE FRENCH CANAL CONSTRUCTION The Geographical Society of Paris organized a committee in 1876 to seek international cooperation for studies to fill in gaps in the geographical knowledge of the Central American area for the purpose of building an interoceanic canal. The committee, a limited company, La Société Civile Internationale du Canal Interocéanique de Darien, was headed by Ferdinand de ...
Panama. Retrieved December 9, 2012, from The World FactBook: https://www.cia.gov/library/publications/the-world-factbook/geos/pm.html Kotler, P., & Keller, K. (2007).
A Framework for Marketing Management, Third Edition. Prentice Hall.
