CASE STUDY 1
A Medical Company, specializing in medical products, has developed a unique method of diagnosing disease in animals. The product has been highly successful in our country and within two years of launch sales are running at 1.5 million TTD per year. Manufacturing and selling costs are 8 TTD per unit. The lowest selling price is 10 TTD per unit. The product has been protected by patent, worldwide.
The product comes in the form which can be administered by a local farmer or a veterinary surgeon and, when used regularly (6-8 weeks), it enables an early diagnosis to be made of the more common disease in ...view middle of the document...
The product contains sufficient material to test five animals.
Export Marketing Potential
In T&T, the product is sold direct to large farmers at 15 TTD per unit and to veterinary surgeons who receive a discount of 25% and also to wholesalers who receive a discount 33%. The company has a small sales force in T&T of 10 people, based in the main agricultural areas of Trinidad, who sell direct to the farmers, surgeons or wholesalers. The sales force sells other company products as well. The product is advertised in Farmer’s and veterinary surgeons’ trade magazines and is also exhibited at agricultural shows. As yet, the product has not been sold abroad.
You have been appointed as an Export Manager to develop the overseas business for this product and have been granted a budget of 45K TTD for the next twelve months, which is to cover the extra marketing variable and fixed costs involved in developing the chosen overseas markets.
You are to present an initial short report which outlines your recommendations on the actions which the company should take in order to achieve the given objectives. This must include your recommendations covering the following points:
1. Which market, or markets, should be developed, giving reasons for your choice?
2. Outline marketing strategies for the chosen market, or markets.
3. Any problems, and their solution, regarding physical distribution, payment and so on.
4. A qualified budget.