The company chosen here is Gulf Pharmaceutical Industries (Julphar).

Julphar is one of the

largest pharmaceutical manufacturers in the Middle East and North Africa (MENA) and
distributes medicines to over 40 countries. Established in 1980 in the UAE, its first stand-
alone facility produced only five products. The decision to create Julphar came at a time
when the UAE was making the transition from herbal medicines to conventional medicines,
and the creators of Julphar wanted to invest in a sector which would generate long-term
value for the Emirates.
Over three decades later, it currently operates twelve internationally certified
manufacturing facilities globally, produces over a million boxes of medicines daily and holds
3,483 product registration certificates. Eleven of the Facilities are based in the UAE and
covers production areas including Tablets, Syrups and Suspensions. In 2013, Julphar
launched a twelfth manufacturing facility in Ethiopia, as part of its ongoing international
expansion strategy. Julphar maintains a diverse product portfolio which targets major
therapeutic segments including endocrinology, anti-infective, cardiovascular and
gastroenterology, over-the-counter, nephrology, dermatology, respiratory, metabolic and
burn and wound management. Julphar’s core business is manufacturing and is into
Generics. Generic medicines help in reducing the cost of manufacturing by allowing the
company to buy raw material for their products from various raw material manufacturers.
The product line chosen is Julphar Diabetes; it is one of the profitable lines of Julphar’s
production. Julphar Diabetes is the division of Julphar that manages the manufacturing and
commercialization of Diabetes products including orals and insulin.

Julphar has made an important strategic decision to become one of the Middle East’s
leaders in offering a world class treatment for both Type 1 and Type 2 diabetes. Among the
key regional providers of Diabetic Treatment, Julphar Diabetes is the only company to offer
a comprehensive portfolio of high quality, affordable drugs that doctors and patients
continue to endorse. It is the only plant in the MENA region to produce r-DNA, the raw
material needed to produce insulin. The insulin plant is expected to widen its product
offerings and strengthen its market presence in diabetic care. This enables to meet the
demands of an increasing rate of diabetes in the Middle East, Africa, and Asia(MEAA).
(www.Julphar.net)
Learning Outcome 1: Understand the principles of strategic marketing management

1.1 Discuss the principles of strategic management and the role of strategic marketing
management in your chosen organisation.
(AC 1.1: Discuss the role of strategic marketing in an organisation).

Strategic management principle concerns itself with the planning of effective strategies for a
business organization. Effective strategy itself starts with the conceptualization of the long-
term goals of an organization. Marketing is the management process responsible for
identifying, anticipating and satisfying customer requirements profitably. It is also the study
of market forces and factors and the development of a company’s position to optimize its
benefit from them. It is all about getting the right product or service to the customer at the
right price, in the right place, at the right time. (Jim Downey, October 2007)

The core concepts of marketing are customers’ needs, wants and values; products,
exchange, communications and relationships. Marketing is strategically concerned with the
direction and scope of the long-term activities performed by the organization to obtain a
competitive advantage. The organization applies its resources within a changing
environment to satisfy customer needs while meeting stakeholder expectations. (Role of
Strategic Marketing)
The drivers of strategic role of marketing in an organization are globalization and the
changes in the market & industry, the increase in importance of services and the quality of
product/service delivery, growth in the use of technology, development of relationships
across facilities and marketing becoming more important than other functional areas.

Providing access to high quality medicines in challenging markets has always been at the
forefront of Julphar’s corporate strategy. The company’s marketing strategy is in line with
this goal and is fed by its robust market intelligence platform. Marketing is used to
strengthen the company’s position in not just the UAE, but all other markets and seek new
customer bases. The main objective of Julphar’s marketing strategy includes, but is not
limited to reaching targeted market shares in the different therapeutic categories. There are
11 therapeutic categories at Julphar: Respiratory, Anti-diabetic, Antibiotics, Biotechnology,
Cardiology, Dermatology, Gastro-enterology, Gynecology, Skin, Nephrology and OTC. Each
therapeutic line follows a unique strategy that often follows SWOT and PESTLE analyses, and
the BCG and GE matrices, among other tools and protocols. The marketing strategy is also
built based on annual budgeting activities. The main purpose of strategic marketing is to
improve the performance of the company through better and innovative marketing
methods. The purpose is also to increase customer satisfaction and widen customer base.

1.2 Explain the processes involved in strategic marketing. Illustrate your answer with
examples from your chosen organisation.
(AC 1.2: Explain the processes involved in strategic marketing).

Strategic marketing is a planning process that seeks to establish a clear direction and unified
purpose for all marketing efforts. Its conclusions are documented in a marketing plan that is
regularly updated. The five steps in strategic marketing are: identifying a mission; analyzing
the situation; setting objectives; developing a marketing strategy; and planning for
evaluation. (Amy Handlin, n.d)

Strategic management process involves the analysis of a group of analytical tools and is used
to develop the organizational structure and the process to make it more efficient. It allows
the management to make decisions that will help in achieving the goals & objectives with
the resources available. The 3 elements in strategic marketing process are Strategy
formulation (situation analysis), strategy implementation and strategy evaluation. In
strategic formulation, situation analysis, self-evaluation and competitor analysis: both
internal and external; both micro-environmental and macro-environmental are performed.
Based on this assessment, vision and objectives are developed. In turn these objectives
along with the situational analysis give a strategic plan that provides the details of how to
achieve these objectives. These steps determine where you are now and where you want to
be. Strategy implementation is the part where the plan is put into action where resources
are allocated and people assigned to perform the tasks to achieve the objectives. Strategy
evaluation is measuring the effectiveness of the organizational strategy. In this three step
process conducting a SWOT analysis is the key to formulating and implementing a successful
strategy. This is where we figure out the strengths, weaknesses, opportunities and threats
(both internal and external) of the business. (The three processes of strategy, n.d)

Julphar performs the strategic marketing process in 3 phases; planning, implementation and
control. Planning is to perform the SWOT analysis. It helps to determine the current
situation in market and understand the internal and external factors effecting the
organization. This information allows for better planning and setting the marketing
objectives and goals.

The marketing strategy in Julphar is also built based on annual budgeting activities. The
Annual Budget Activities Work Flow begins with defining the market, a large of which is
studying the level of competition. This is followed by studying the market trend and creating
accurate forecast data. These essential steps are preceded by studying year-end data and
setting budget figures based on growth. Analysis of data through SWOT, BGC and GE and
calculation of risks involved in investments will all feed strategy formulation. The strategy is
then used to formulate action plans such as training the field force, revising logistics data
and decide on promotional tools, events and services.

Strategies for all product lines and geographic areas are discussed at Julphar’s annual
budget meeting to keep up with the changes in the market, discuss competitors and
enhance the brand image.

A strong vision and corporate strategy translates in the form of overall steady results, with a
year-on-year growth. The marketing strategy in alignment with the registration strategy,
have led to the registration of 448 products in the UAE over the years despite the changing
landscape of the local market.

The marketing strategy of Julphar Diabetes products has been honed over the years to form
a robust marketing plan to sustain healthy sales growth. Despite the positive sales growth,
Julphar’s marketing strategy keeps a close eye on its competitors’ performance and related
competitor data. This kind of analysis enables further improvements in the marketing of the
products.

The Strategy Development Process in the organization involves a cycle considering the
following processes:
Company Objective/Vision
 Targeted Global Research
 Product Idea Initiation (Company/Product Search)
 Legal Factors
 Commercial Factors
 Regulatory Factors
 Product Development Factors
 Proceed & Coordination for Shipping to target markets
 Pharmacovigilance
 Marketing

1.3 Evaluate the links between strategic marketing and corporate strategy. Give examples of
how marketing strategy is influenced by corporate strategy in your chosen organization.
(AC 1.3: Evaluate the links between strategic marketing and corporate strategy).

A corporate strategy focuses on profitability while a marketing strategy involves making and
selling a product.   Corporate strategies include: creating an organizational structure, debt
reduction to improve the company’s balance sheet, diversifying the product or service line
to increase profits, mergers and joint ventures, accessing new technology, reducing
overhead costs to increase profit margin and reducing overall operating expenses. (Sam
Ashe-Edmunds, n.d)

On the other hand marketing strategy revolves around the 7Ps also referred to as the
marketing mix, product, price, place and promotion, people, process & physical evidence.
(Jim Downey, October 2007) Marketing strategies include: creating a product with a unique
selling benefit, targeting a particular consumer demographic, setting prices based on profit
and brand-management needs, selling in places and using channels that maximize profits
without damaging the brand and using advertising, promotions, social media and public
relations activities that support the company’s brand message. People should be trained
appropriately and should be well motivated with the right attitude as the reputation of the
products depends on the people promoting the product. Another crucial aspect in providing
a service or product is the process involved on which customer satisfaction relies on. Finally,
the physical evidence demonstrated by an organization must confirm the assumptions and
relate to the expectations of the customer. (Jim Downey, October 2007)

In Julphar, the corporate strategy of providing affordable high quality medicines to

challenging markets is backed up by the marketing strategy that is strengthening the
company’s position not only in UAE but all other markets and seeks new customer bases.
The executive management along with the marketing department determines any corporate
strategies that could be aligned with the organization’s marketing strategy. For example,
specific to the product line Julphar Diabetes, the overall strategy is to Satisfy MEAA unmet
needs of value and accessibility through a portfolio of diabetes products. This is where the
marketing strategy to seek new customer bases meets with the company’s strategy of
sustaining healthcare across the globe.

The corporate strategy evolves from the SWOT analysis and other analytical tools and the
results help in determining the marketing objectives which forms the link between
corporate strategy and marketing strategy. The marketing strategy in Julphar is also built
based on annual budgeting activities. Strategies for all product lines and geographic areas
are discussed at Julphar’s annual budget meeting to keep up with the changes in the
market, discuss competitors and enhance the brand image which ultimately translates to
the corporate strategy.
Learning Outcome 2: Understand the tools used to develop a strategic marketing strategy.

2.1 What are the different tools and models used in strategic marketing management?  
Explain them and assess the value of models used in the strategic marketing planning of
your chosen organisation.
(AC 2.1:   Assess the value of models used in strategic marketing planning).

There are various definitions of strategic analysis but the associated attributes are common
like Identification and evaluation of data relevant to strategy formulation, definition of the
external and internal environment to be analyzed and the range of analytical methods that
can be employed in the analysis. Examples of analytical methods used in strategic analysis
include:
• SWOT analysis
• PESTLEE analysis
• Porter’s five forces analysis
• BCG matrix
• GE Matrix, etc,. (Jim Downey, October 2007)

Strategy models provide a common focus point for discussion. The best strategies come
from the insight of applying the strategy tools and the discussions that happen within the
management team and not as a direct result of using the planning model. Strategy models
provide a common reference point and helps understanding more about what is happening
at the moment, what is happening and perhaps what will happen. (Paul Simister, n.d)
The SWOT analysis is a tool used in strategic planning to identify and prioritize the
organization's strengths, weaknesses, opportunities and threats. The process involves a
brainstorming session where participants create a list for each of these areas based on
previously gathered data and information. Once the lists are created, a ranking process is
used to prioritize the items so that the top items in each category can be used to provide a
basis for the development of objectives, strategies and tactics.   (Leigh Richards, n.d)
PESTLEE Analysis is a scan of the external macro-environment in which an organization
exists. It is a useful tool for understanding the political, economic, social¸ technological,
legal, environmental & ethical environment that an organization operates in. It can be used
for evaluating market growth or decline, and as such the position, potential and direction
for a business. PESTLEE factors can be classified as opportunities or threats in a SWOT
analysis. It is often useful to complete a PESTLEE analysis before completing a SWOT
analysis. (Jim Downey, October 2007)
The Boston Consulting Group Matrix (BGC matrix) categorizes products in a portfolio as
Stars, Cash Cows, Dogs and Question marks by looking at the market growth and market
share.
Porter’s Five Forces model comprises of 5 elements. Supplier, Substitutes, Competitive
Rivalry, Buyers & Barrier to Entry, these 5 elements effect the strategic position of a
business in the market. Porter's five forces of competitive position analysis was developed in
1979 by Michael E. Porter of Harvard Business School as a simple framework for assessing
and evaluating the competitive strength and position of a business organization. The theory
is based on the concept that there are five forces which determine the competitive intensity
and attractiveness of a market. Porter’s five forces helps to identify where power lies in a
business situation. By understanding where power lies, the theory can also be used to
identify areas of strength, to improve weaknesses and to avoid mistakes. This is useful both
in understanding the strength of an organization’s current competitive position, and the
strength of a position that an organization may look to move into. Strategic analysts often
use Porter’s five forces to understand whether new products or services are potentially
profitable. (Jim Downey, October 2007)

Analytical tools and automated analytics technologies used in strategic marketing planning
in Julphar are BCG matrix based on the product life cycle theory and determines the
priorities in the product portfolio, GE matrix, Key Performance Indicators (KPIs) per
employee, the marketing mix, Market share and benchmarking growth, market evolution,
sales forecasting, risk calculator & data mining. Each therapeutic line follows a unique
strategy that often follows SWOT and PESTLE analyses, and the BCG and GE matrices,
among other tools and protocols. Analysis of data through SWOT, BGC and GE and
calculation of risks involved in investments will all feed strategy formulation. Julphar
primarily uses the SWOT analysis & the BGC matrix to plan the marketing strategy.

Julphar adopts the closed-loop marketing concept in linking information pools to achieve
agile sales organization. Julphar’s Marketing Planning section is focused on building a
learning organization culture that is based on data-driven decision making. This is primarily
done by feeding customer information into automated data mining technologies. They
develop, feed and maintain the PharmaSync tool, a robust Business Intelligence
(BI)/Competitive Intelligence (CI) system used to collaborate marketing and sale activities,
producing Analytics such as instant and interactive analysis on ‘Big Data’, to support
decisions that feed strategy formulation. The revised strategy is then deployed through the
field force observations and data from the market research team. CI information is fed into
the BI platform as it is updated.

2.2 Discuss the links between strategic positioning and marketing tactics. In what way are
the tactics related to the strategic positioning used by your chosen organisation?
(AC 2.2: Discuss the links between strategic positioning and marketing tactics).

Marketing tactics of a business needs to be developed according to the overall strategic

positioning of the brand. This can be explained with the use of 7P’s of marketing, also
known as marketing mix that stand for product, price, place, promotion, people, process
and physical evidence. The use of marketing tactics in general and individual elements of
marketing mix in particular corresponds to the strategic positioning of the company. (John
Dudovskiy, March 5, 2013)

Positioning establishes where you are and where you want to be as a result of your strategic
marketing. It creates a brand concept that marketing places in the minds of the target
customer. Marketing accomplishes that using strategies based on a thorough understanding
of the psychographics and demographics of the market segment identified as the target
audience. (Victoria Duff, n.d)

A target market is a specific group of customers with shared qualities that are identified
within a larger population. The important aspect in positioning is to understand the
customer and the needs for the products that are being offered. Companies sometimes
target a primary market with one campaign like Julphar Diabetes targeted the Middle
Eastern markets which is the primary market and later moved on to secondary markets such
as the CIS (Commonwealth of Independent states) countries (Russia, Belarus, Ukraine).
Knowing the needs of the target market helps in formulating the position and marketing
strategies.
In marketing, SWOT analysis is used to establish the competitive distinction from other
competitors. This helps as the foundation for the promotion and marketing strategies for
the respective products. The ability to establish a competitive position relative to
competitors is the key to a successful marketing strategy. SWOT analysis helps in
formulating strategies for market positioning.  
A message strategy is the method and techniques used to present your value proposition to
the target audience. This is how you sell the benefits of your solution as the best value. The
simplest but narrowest opportunity is presenting a low-cost strategy. Value-added or high-
end brands must emphasize quality, service or other differentiating benefits from lower-cost
options. The use of humor, drama, selling propositions, fear or anxiety, hard selling,
demonstrations and testimonials are common messaging methods. The key is to get the
attention of your customers and carve your position in the marketplace.   (Neil Kokemuller,
n.d)
Julphar has changed its marketing mix from traditional marketing to multichannel and cross
channel digital and non-digital marketing to create a competitive advantage. They have
started using the advanced targeting techniques for the consumers like digital, web enabled
platforms and social media which give a wider access and guarantee more interaction and
impact on the consumers as well as optimize resources and maximize ROI (Return on
Investment). They are going to base all their planning and actions on market research and
feedback which is going to improve the performance as a leader in the pharmaceutical
market in the region. Julphar Diabetes strategic positioning aims in being a market
leadership in terms of the product range. Therefore, the marketing tactics focus on patient
models, adding new products to the portfolio and define specialties and increase the scope
of R&D which is all linked to the positioning.
The burden of diabetes in the MENA region is growing at a significant rate. The situation is
particularly worrying in developing countries where detection is poor and insulin is not
always subsidized and available. This has allowed Julphar a huge advantage in forming a
strong market in the MENA region. Julphar Diabetes products currently enjoy a good market
position; however, there is scope for improving the image of the product. In order to
determine the optimal image position for Julphar Diabetes in the market, we need to
consider the current positioning relative to the agents who promote the products, and the
consumer who eventually purchases the products.
Julphar Diabetes offers a comprehensive portfolio of high quality, affordable products which
doctors and patients continue to endorse. Julphar Diabetes manufacturing facility is one of
the most modern biotechnological plants and utilizes the best available technology to meet
or exceed international quality standards. Today, this facility is the only plant in the MENA
region that produces insulin using crystals derived from r-DNA technology which is one of
the best available. This creates a competitive advantage with its competitors through the
use of price and purchasing benefits. As Julphar Diabetes moves through the introduction
stage of the product life cycle and on to the growth stage, the company needs to begin to
think about how to reposition their product in the minds of the consumer in order to
increase the sales and also break into challenging markets. Offering their product at a
competitive rate gives every consumer the opportunity to buy their product regardless of
the amount of money that the purchaser is looking to spend.

Julphar Diabetes targets markets where diabetic patients still use the tablet and injection
forms for the treatment of diabetes. Iran, Saudi Arabia, Kuwait and Lebanon are the major
profitable markets for Julphar Diabetes. The target markets have been the middle aged
Middle Eastern communities where Diabetes is prevalent. These markets do not have the
kind of medicines and diabetes maintenance products like the European and the American
markets, hence, provides a huge potential for Julphar to build a strong customer base in the
MEAA region.

2.3 Analyse the merits of using relationship marketing in a given strategic marketing
strategy of your chosen organization.  
(AC 2.3: Analyse the merits of relationship marketing in a given strategic marketing
strategy).  

The essence of relationship marketing is a personal or emotional connection to a brand.   It

is established on the basis of trust created through a reliable and consistent delivery of
products & services that meets or exceeds customer expectations resulting in customer
satisfaction & customer delight. (Joseph Ruiz, 20 February 2012)
Corporate Culture also impacts Relationship Marketing. It is important for brands to
recognize the cultural implications for a successful relationship marketing strategy. Business
culture is more relationship based these days focusing on collaboration and cooperation.
(Joseph Ruiz, 20 February 2012)
Customer Relationship Marketing maximizes value and drives profitability. With proper
collaboration, those interfacing with customers are empowered to use the resources of the
organization to solve problems, answer questions and provide positive buying experiences
for consumers. Positive experiences will allow brands to satisfy their customer’s needs. In
addition, satisfied customers will stay longer so profitability will be enhanced over time.
(Joseph Ruiz, 20 February 2012)
Five Benefits of a Relationship Marketing Strategy are consistent customer experience,
customer feedback, customer profitability, customer advocates and innovation. Resolving
customer issues quickly builds trust and increases customer satisfaction. Customer feedback
allows making appropriate changes to maximize customer satisfaction and increase repeat
business. Proper communication and offers allows the customers use the product & services
to the full and ensures sustainable business. A satisfied customer means word of mouth
advertising and increase in business. Innovations in obtaining ideas and insights from
customers by creating a platform to share these ideas would allow the business in
improvising and renewing its products and services. (Joseph Ruiz, 20 February 2012)
Proper utilization of relationship marketing helps in increasing the levels of customer
satisfaction & customer retention and the possibility of obtaining valuable feedback from
the customers. A strong customer focus is integral to all functions in Julphar. Hence, there
are always heavy investments in the processes that lead to these functions. Julphar;s
Customer Relationship Management(CRM) system is constantly improvised to facilitate
operation efficiencies that are beneficial to the customers. A customer focused culture
influenced the business functions dedicating medical representatives to meet and follow up
with various customers on daily basis. In addition a call center from various departments to
handle customer’s compliments and complaints. Julphar developed capabilities along with
increasing customer satisfaction by training sessions undertaken from the Training Center.
Due to the close relationship the unit has with the customers (doctors, pharmacists, agents,
etc.) they are able to evaluate and improve the relationship with them continuously.
Julphar Diabetes is the only facility in the entire MENA region with the capabilities that it has
in the production and sale of medicines & devices used for the treatment and monitoring of
diabetes. Its success starts from choosing the right manufacture for the raw material and
processing them to finished goods. It has invested heavily in the whole production facility
and boasts of a state-of-the-art technology that happens to be one of the finest in the
world. They also have a solid packaging and distribution systems that ensures the product is
packed and delivered to the customer in the right conditions. They ensure that the quality of
the product and the service are never compromised, thus, establishing a strong customer
relationship. Julphar also has maintained strong ties with its suppliers to ensure timely
delivery of the raw material without compromising on the quality.
Julphar adapts customer relations activities based around therapeutic areas. For instance,
there were several events held by Julphar Diabetes like the regional diabetes camp for
diabetic children to provide them with the most up-to-date management techniques which
will positively impact their quality of life. They contribute beyond medicine by contributing
to the local and regional discussions on health and wellness, raising awareness to help
children to live with diabetes, etc. Julphar enjoys a long and trusting relationship with its
customers, over the years they have established strong ties with great mutual
understanding that has been beneficial for both parties. This has also helped in bringing in
new customers and helped Julphar in extending its customer base and increasing business.

Learning Outcome 3: Be able to use strategic marketing techniques

For this learning outcome, make use of the organization and the product / service of the
organization that you had chosen for the learning outcome 1 and 2.   Ensure you choose a
market in which the chosen organization and its product / service is being marketed.   It is
enough you choose one specific market out of a number of markets in which your chosen
organization operates.

3.1 For the selected organisation, what are the growth opportunities? Use appropriate
marketing techniques to ascertain growth opportunities in a market.  
(AC 3.1: Use appropriate marketing techniques to ascertain growth opportunities in a
market).
Julphar Diabetes is the division of Julphar dedicated to alleviating the burden of diabetes.
This division manages the manufacture and commercialization of insulin active
pharmaceutical ingredient (API), oral anti-diabetics, recombinant human insulin, and
medical devices. They are constantly expanding the product portfolio and reaching new
markets to alleviate the burden of diabetes.
Among the key regional providers of diabetes management, Julphar Diabetes is the only
company to offer a comprehensive portfolio of high quality, affordable drugs that doctors
and patients continue to endorse. (Julphar diabetes. n.d)

Julphar Diabetes has defined its primary competitors as regional companies who
manufacture and distribute medicines and devices for the treatment & maintenance of
Diabetes in the MENA region and are broken down into three categories.

Regional Competitors (Primary)-These are considered Julphar’s primary competitors as they

are similar in terms of size, reach and products. Domestic Competitors (Secondary) - These
companies are primarily engaged in the manufacturing of generics and export mostly to the
MEAA. Global Competitors (Secondary) - These are not Julphar’s main competitors as they
dominate the market outside Julphar’s main markets.

Julphar Diabetes applies a targeted three-pillar strategy which combines the strengths of
providing high quality products that meet or exceed international standards, with increasing
accessibility of medicine that is both affordable and geographically accessible. This is
strengthened by a compassionate and empathetic approach on both corporate and personal
levels. Julphar competes with other pharmaceutical companies to drive revenue with
patient centricity in mind.
Quality: Quality healthcare demands are increasing exponentially worldwide. With this in
mind, Julphar Diabetes is committed to achieving the mission without compromising quality.
The practices are guided by international requirements set forth by the regulatory
authorities such as the Ministry of Health and the US Food and Drug Administration (US-
FDA). This has lead the unit to achieve ISO9001 and ISO14001 accreditation, EU-GMP
(European Union’s Good Manufacturing Practice) and GLP (Good Laboratory Practice)
certifications.
Accessibility: The goal is to make medications more Accessible. To ascertain this, a novel
tiered pricing policy has been developed which enables to provide affordable medications to
economically challenged areas across the MEAA.
Care: The corporate responsibility to deliver better healthcare to communities in the region
is of prime importance. Julphar believe that with the right information, diabetes can be
managed effectively. One of the most important initiatives undertaken every year by Julphar
Diabetes is to sponsor a regional diabetes camp for diabetic children in order to provide
them with the most up-to-date management techniques which will positively impact their
quality of life. (Julphar Diabetes. n.d)

Julphar Diabetes is one of the largest manufacturers and distributors of pharmaceutical

products in the MEAA region. The plan for robust growth continues with a focus on
emerging markets, across MEAA and other areas where there is a demand. Mena Cool, the
subsidiary transportation company is intrinsically placed in all countries where Julphar
operates, to allow quick and easy distribution of the products to the customers. They are
able to meet non-forecasted demands from the customers on short notice through a
network of reliable, temperature controlled vehicles.

The market is mainly divided into two, Private market and Tender business. Julphar has
experienced great success in the private market and is trying to get a foothold on the tender
business too. The unit continued to show robust operational performance during the past
years. It has evaluated the current methods and has come up with strategies for growth
shown in the following table:
Old Product New Product
Old Market Penetration Product Development
New Market Market Development Conglomerate Strategies

It intends to work on the market penetration for the existing products by introducing them
to newer markets and work on new products development at the same time to give more
choice to the customers. As for the new markets, they need to work on market
development to form new customer base and break into new markets to achieve a YOY
(year on year) growth of 15%. They are also working on acquisition and mergers for
establishing themselves in the new markets like the CIS (Russia, Belarus, etc.) countries.

Julphar Diabetes has a firm position and the marketing strategies are focused on market
segmentation where the target is people in the age group of 45-65 and believe that patient
empowerment in terms of knowledge and useful information can better serve the areas
where the unit operates. They also run campaigns to bring awareness about diabetes and
the use of medication and devices for treatment & Maintenance. They also make sure that
the products are of high quality and are priced reasonably to allow affordability. It also has a
dedicated logistics approach to ensure timely & uninterrupted supply.
In the position strategy, Julphar is planning its geographical expansion into the Maghreb and
Lavant markets. It has already started streamlining its marketing activities in Srilanka,
Tanzania and Ethiopia and venture into new markets for insulin sales including Indonesia,
Vietnam, Egypt, Pakistan and India which are under discussion. Julphar has a unique
positioning in the current markets as it is one of the largest diabetes production facilities in
the MENA region. It also intends to launch a regional, potentially new, customer centric
clinical study.

3.2 What are the different marketing strategy options available to this organisation? Plan
how to use the marketing strategy options in a market
(AC 3.2: Plan how to use marketing strategy options in a market).

Julphar has a fixed target customer market of the age group 45-65+ and more. They make
products to meet the growing needs of the customers suffering from Diabetes. It has a
highly motivated team to fulfill the requirements and meet the goals & objectives of the
organization.

Cost leadership strategy: Julphar produces high quality, affordable & reasonably priced
products to enable people of different classes to buy the products from Julphar diabetes.
This allows them to maintain their customer base and sustain rivalry from other
competitors.
They also maintain a good distribution system through their subsidiary transportation
company Mena cool Transport which is intrinsically present across strategic locations to
allow seamless distribution of our products to customers. This allows them to have an
uninterrupted distribution system resulting in timely delivery in the required condition that
ultimately results in customer satisfaction.

The state-of-the-art facility uses the latest technology in the Pharmaceutical manufacturing
plants is dedicated to manufacturing fulfills all the requirements according to international
standards in producing high quality medicines.

Julphar has taken a different innovative approach by focusing on disease management as

the core of the business, with drug products used as a means to achieve better outcomes.
These innovative actions come from a easy to use medical device as the core of the
treatment program. Julphar is currently the only company in the MENA region to offer such
devices and that gives the organization a competitive advantage over its rivals.

3.3   Create appropriate marketing objectives for the marketing plan, based on your
research of the organisation and the selected market.
(AC 3.3: Create appropriate strategic marketing objectives for a market).

Marketing strategy is a company plan that allocates resources in ways to generate profits by
positioning products or services and targeting specific consumer groups. Marketing strategy
focuses on long-term company objectives and involves planning marketing programs so that
they help a company realize its goals. Companies rely on marketing strategies for
established product lines or services as well as for new products and services. (Marketing
Strategy, n.d)

Marketing objectives is a group of goals set by a business when promoting its products or
services to potential customers that should be achieved within a given time frame.
(Marketing Objectives, n.d)

Marketing objectives for Julphar diabetes in the current scenario would be to increase
awareness of the products to be used in the targeted groups. For example, Dexcom is a
device manufactured by Julphar that helps in constant monitoring of the sugar levels of a
patient suffering from diabetes. It offers crucial information to people in critical care to be
able to keep the sugar levels in control. However, it is not used as often as it should be and
Julphar faces a challenge in marketing this product. Unlike, the tablets and insulin vials, the
sales of dexcom are slow in the market. Here the strategy would be to develop reliable and
enduring partnerships with Patients and Caregivers who are striving to overcome the
challenges of diabetes management, through a unique solution.
Julphar to use a ‘build’ strategy to grow and shape the market by covering both personal
and diagnostic purposes and selectively target all stakeholders (Only elite accounts,
motivated patients). Needs to take a customer centric approach for all marketing activities,
training, programs, and campaigns.  
Pricing: A premium price will be set for a premium device. Work with Pharmacy &
Therapeutic Committee (PTC) committees to access institutions that would help in bringing
in business. Approach top insurance companies with outcomes and cost effectiveness data
through a dedicated team
Customer segmentation: The primary focus on Pediatric Endocrinology as Type I diabetes is
more prevalent amongst children and develop a robust network with diabetes educators in
targeted accounts. It would also help to engage Endocrinologists and key decision makers in
the execution plan so as to establish a mindset of continuity on Continuous Glucose
Monitoring (CGMs) with patients and caregivers.
Product development & promotion: Geographical expansion to Maghreb and Lavant and to
launch a regional, potentially new, customer centric clinical study. In order to allow better
promotion of the product it needs to clearly map the logistics processes and evaluate the
choice and performance of the agents closely.   A dedicated logistics approach to would
ensure timely and uninterrupted supply Regional programs to educate patients and
institutions would enhance business and also grow one to one relationships with patients to
widen the customer base.

Learning Outcome 4: Be able to respond to changes in the marketing environment

For this learning outcome, consider the market that you had chosen for the learning
outcome 3 in which your chosen organization’s product / service is being marketed.

4.1 Based on your research of the current external environment, report on the impact of
changes in the external environment on a marketing strategy for your chosen organization.
(AC 4.1: Report on the impact of changes in the external environment on a marketing
strategy).

The significant changes in external environments could be categorized as shift from supply
to demand environment, fashionisation of markets micro-markets rising expectations,
technological change, competition, globalization, importance of customer service,
commoditization, erosion of brands and new constraints. (Course material)

Commoditization: It is a process by which goods that have economic value and are
distinguishable in terms of attributes (uniqueness or brand) end up becoming simple
commodities in the eyes of the market or consumers. (Course material) In Julphar the
challenge has been with the diabetic product Dialone that is pitted against the famous
Metformin which is more popular in the market and widely used all over the world. This is a
challenge that has to be overcome through rigourous marketing and bringing awareness of
the product and competitively pricing it to compete against Metformin.

Fashionization: Millennium consumer having more buying power than parents. So the
products and brands are associated with Gen Y to capture the attention of this influential
generation. (Course Material) Fashionization may not be such a problem with Julphar as the
business is that of medicines for Diabetes and the target group is mainly 45-65 and 65+ age
groups. However, affordability still plays a crucial role in achieving the marketing objectives.

Globalization: It describes the process which regional economies, societies and cultures
have become integrated through communication, transportation and trade. It is the process
by which different parts of the world would interact economically, politically and culturally.
(Course material) Globalization has played a vital role in impacting the marketing strategy of
Julphar Diabetes. Mostly, positive, it has allowed forming Joint ventures and has allowed the
expansion of business beyond UAE. All GCC (Gulf cooperation countries) are in the top 20
percentage of diabetes patients and the accessibility to these countries has allowed the
expansion of the business.  

Other elements like rise in expectations, technological change, importance of customer

service has impacted the marketing strategy and has allowed the unit to concentrate on
meeting customer expectation and satisfying customer. It has adopted the new
technological changes in the industry to match the competitors in producing products that
are reckoned and have formed a niche for itself in the market.

4.2 Conduct an internal analysis to identify current strengths and weaknesses in a marketing
strategy as applied to the chosen organization.
(AC 4.2: Conduct an internal analysis to identify current strengths and weaknesses in a
marketing strategy).

SWOT analysis can help in identifying the strengths and weaknesses in a current marketing
strategy.

Strengths:
The Julphar diabetes facility is the only plant in the MENA region that produces insulin using
insulin crystals derived from the r-DNA technology. This means Julphar is uniquely
positioned to provide to its major markets –Middle East, Africa
It is the first unit in the MENA region to produce biosimilars.

Weakness:
No appropriate forecast
No proper regulatory approvals.
Limited support from the government.
Mismanaged funds in the investments of the production facility due to improper planning.
Opportunities:
All GCC countries are in the top 20 in the percentage of diabetes patients. Government in
the GCC are seeking economic diversification beyond the traditional hydrocarbon sector and
increasing focus on Biotechnology. This a huge opportunity for Julphar as it enables for easy
certifications due to the existing facility and production line.
Emerging markets remain a key priority for sustainable growth as Julphar’s Middle Eastern
roots allow them to reach difficult markets in a timely manner.
It is a growing market and has a great potential to make Insulin analogs which has a huge
market in the MENA rgion.

Threats:
Unable to provide competitive pricing is a threat along with growing competitors in the
same field.
Political unrest in some of the target markets like Iraq, Syria, etc.

4.3 What are the key local, national or global emerging themes affecting the organization?
Propose strategic marketing responses to key emerging themes in a marketing strategy.  
(AC 4.3 Propose strategic marketing responses to key emerging themes in a marketing
strategy).

Some of the key emerging themes affecting the organization are the changes in the political
environment, economy, technological changes, government policies,   globalization,
Innovation, growing competitors, etc.

Political environment: Any change in the political environment in the target markets directly
affects the business. So it is important to know the political situation in the market that the
company wants to venture into to enable uninterrupted business. For example, the political
situation in Iraq remains unstable with over six states out of Baghdad’s control and it is
predicted to impact Julphar’s business more than 40%, however, shipments via road still
continue but with high risks and no insurance. Therefore, it is important to consider the
political situation of a target market while formulating strategies.
Globalization: As much as it seems like an opportunity to expand business, it comes with its
own problems like competing with the existing rivals in the market, pricing issues and most
importantly for Pharmaceutical companies, regulatory issues like getting certification and
approvals from the local government.

Competition:   Though Julphar enjoys a key strategic position in the market, it never fails to
monitor the performance of the competitors. It is important to have this information to
design effective strategies in terms of pricing, promotions etc.
Julphar has a competitive intelligence section where the information resource fed by the
field force observations and data from the market research team helps in updating the
strategies.

Technological Changes: This is another factor that impact the marketing strategy. A
competitor having an advanced technology means losing certain business to a rival.
Therefore, it is important to keep upgrading technologies as the requirements of the
business.

Government Policies: The laws related to doing business and exporting/importing certain
material is all based on the policies of the government. It is important to keep the business
in line with the government policies to avoid hindrance in doing business, which is why it is
important to have regulatory approvals for the products that have to be marketed in the
target countries.

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