Activity Analysis Report

Activity Analysis Report: Sales

Activity Analysis ReportRound Four: Sales

8/28/2012Muhammad Tanvir HossainStudent ID: 4325352

Activity Analysis Report: Sales 2012

Table of Contents1. Introduction:...................................................................................................3

2. Individual Activities: Sales..............................................................................3

Market Outlook:.................................................................................................3

Sales strategies:..............................................................................................3

Situation analysis:...........................................................................................4

Competitor analysis:.......................................................................................4

Share analysis:................................................................................................5

SWOT analysis:...............................................................................................6

3. Conclusion:.....................................................................................................9

4. References:...................................................................................................10

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1. Introduction:This is an individual activity analysis report based on Renata Ltd., where in round four I am sales manager and business decisions provided by me. In this report the topic below will be discuss in order to manage sales for the pharmaceutical industry in the major markets of Finland, USA and France.

This analysis report will critically discuss the theories, framework and relevant decision I took during this round (i.e. Sales). It is also contains key objectives and strategies for Renata Ltd. which were implemented during this round and the results of the decisions I took.

Round Four: Sales

2. Individual Activities: Sales

Market Outlook:In this round, the demand for AndyOx (antioxidant) will increase by at least 15% in Finland, USA and France and it has positive effects on the demand of Rubbana (painkiller). The machinery price will fall and the costs of raw material declining for AndyOx but rising in Rubbana. Interest rates are growing and dollar strengthening continue against euro.

Sales strategies:As a sales manager of Renata Ltd., our sales strategies and objectives are to acquire 60% market share globally by round five. To achieve our objectives I set SMART objectives for Renata Ltd. as follows: Figure 1.1

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Any sales activities must be related within strategic marketing plan. These sales strategies and tactics implemented against a framework is called 'strategic planning process' (Jobber, D. & Lancaster, G. 2009:48).

Figure 1.2 The planning process (Source: Jobber, D. & Lancaster, G. 2009)

Above figure 1.1 demonstrate our objectives for the firm. As I mention above, our objective to gain 55% market share within round 4 and 60% market share within round 5 and keep the market share in round 6 by increasing product quality and marketing mix.

Situation analysis:The situation analysis is the precise content in preparing marketing plan which required internal and external audit (i.e. SWOT analysis).

Competitor analysis:Current market demand for Rubbana in Finland, USA and France are 72.14 (K Units), 210.76 (K Units) and 107.54 (K Units) respectively as it has 5% positive influence over current market demand for the increase demand of AndyOx. AndyOx's current market demand in Finland, USA and France are 140.10 (K Units), 278.44 (K Units) and 136.56 (K Units) correspondingly.

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Sales of the current round for Renata Ltd. and its competitors in the market are in the following graph 1.1:Sales (K Units):

Sales

/(K u

nits

)

Finland

/Rub

bana

USA/

Rubba

na

Franc

e/Rub

bana

Finland

/And

yOx

USA/

AndyO

x

Franc

e/And

yOx

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Series1Series2Series3

Source: SimFirm

In this graph 1.1 shows Renata's total sales of Rubbana and AndyOx are more than its competitors Pharmateam and Ecolab Pharma Ltd. For example: in Finland, USA and France Renata sales of AndyOx 44.60 (K Units), 94.11 (K Units) and 78.12 (K Units) respectively whereas closest competitor Ecolab's sales on AndyOx is 36.92 (K Units), 76.95 and 40.63 in that order.

Share analysis:Our objectives to acquire market share 55% by the end of the round four. Renata's current market share after round 3 globally in the following graph 1.2:

Market share after round three:

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Mar

ket s

hare

s/%

Rubba

na/F

inland

Rubba

na/U

SA

Rubba

na/F

ranc

e

AndyO

x/Finla

nd

AndyO

x/USA

AndyO

x/Fra

nce

0.00

20.00

40.00

60.00

Series1Series2Series3

Source: SimFirmAfter round three Renata Ltd. market share for Rubbana in Finland, USA and France is 35.16%, 37.29% and 63.12% respectively. For AndyOx Renata's market share 36.61%, 38.87 and 65.78 in that order.

SWOT analysis:

In general assessment of a firm's strengths, weaknesses, opportunities and threats is called SWOT analysis (Kotler P., Keller K., Brady M., 2012:111). SWOT analysis allow firm's to monitoring its internal and external marketing environment. It is important for a firm to monitor major microenvironment actors and macro environment forces (Kotler P., Keller K., Brady M., 2012:111) factors that affect its ability to earn profit. Firm also should set up marketing intelligence system to find out trends, opportunities, threats and important development. Figure 1.3 SWOT analysis:

Source: SWOT analysis (Kotler P., Keller K., Brady M., 2012)

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Strengths Weaknesses

Opportunities

Threat

SWOT


As in current market outlook Renata Ltd. has great opportunities to capture its target market share. Demand of AndyOx(antioxidants) will increase 15% in the all market and it has positive effects on Rubbana(painkillers). As a sales manager, for my firm I have opportunities to gain market share in Finland and USA for Rubbana. Our current market share for Rubbana in Finland and USA are 35% and 37% respectively.

Renata Ltd. strengths are leading market share globally for Rubbana 44% and AndyOx 45%. Its competitors Pharmateam has 22% and 23% for Rubbana and AndyOx in that order and Echo Lab has 35% and 32% market share globally for its products Rubbana and AndyOx correspondingly.

Renata's weakness is in its homeland as the firm facing stiff completion from Pharmateam as well as Echo Lab. Even though Renata has more market share in Finland for both products but its competitors are gaining more market share over the past few rounds.

To achieve our sales and market share target in round four, I have followed Marketing Mix. Figure 1.4 Marketing mix:

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Source: Marketing Plan

E. Jerome McCarthy describe market segmentation by far is the most important decisions within marketing programme (Jobber, D. & Lancaster, G. 2009). Neil Borden termed the marketing mix as the central concept of modern marketing practice (Borden, N.E. 1964).

In Finland, product price for Rubbana and AndyOx is 257.0 EUR (K Unit) and 197.0 EUR respectively. Compare to previous year the decrease the price of Rubbana and AndyOx by 3.0 EUR (K Unit) and 1.0 EUR (K Unit) respectively because of cost of raw materials for antioxidants are declining. Sales promotion for Rubbana in Finland I invested 250 EUR (K) for advertising and 250 EUR (K) for customer care. For AndyOx advertising and customer care budgets are 250 EUR (K) and 250 EUR (K) correspondingly to achieve my sales and market share objectives as Finland is my weakest place.

USA has the most market demand for both products per sales unit compare to Finland and France. Because of the more demand in USA for both products I increased the sales promotion budget than last year 240 EUR (K) for advertising and

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240 EUR (K) for customer service. Price for AndyOx and Rubbana are 262.0 USD (K) and 342.0 USD (K) in that order.

In France, price per unit for Rubbana and AndyOx 258.0 EUR (K) and 198.0 EUR (K) respectively. Compare to the last year price, I have decrease the price for price penetration to gain more sales and market share as already Renata has more than 60% market share in France. The budget for sales promotion for both products 925 EUR (K) in France.

After using the sales planning process framework, SWOT analysis and marketing mix as well as with the consideration of market outlook for round four my forecasted sales are as follows: Table 1.1

Table 1.1: Sales forecast:

Round Four

Rubbana (K Units) AndyOx (K Units)

Finland 40.00 77.00

USA 116.00 153.00

France 68.00 90.00

In this table 1.1 I have followed the quantitative techniques 'Moving averages' (Jobber, D. & Lancaster, G. 2009:469) to forecast my sales for this round. The results of the current round sales are as follows:

Sales (K Units):

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Sales

/(K u

nits

)

Finland

/Rub

bana

USA/

Rubba

na

Franc

e/Rub

bana

Finland

/And

yOx

USA/

AndyO

x

Franc

e/And

yOx

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Pharmateam

Echo Lab

PharmateamRenata Ltd.Echo Lab

Source: SimFirm

In France, I have sold more than I forecasted but in Finland and USA my sales are less than expected.

3. Conclusion:

In conclusion, I would say as a sales manager I have achieved one of my objectives after round four is selling more products in France. But I have also failed to capture 55% sales and market share globally. Renata's current market share after round four 48.68%. As a Global Business student, it was a challenging task for me to handle selling and sales management in the real business environment. The decision I have taken without deep knowledge in previous round were analysed by me this time by understanding the framework and theories involve within the sales related tasks.

4. References:

Borden, N.E. (1964) 'The concept of marketing mix', Journal of Advertising Research, 4(June), pp. 2-7

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Jobber, D. & Lancaster, G. (2009), 8th Edn. Selling and Sales Management. Pearson Education Limited, Essex, England.

Kotler, P., Keller, K.L., Brady, M., Goodman, M., Hansen, T., (2012), 2nd Edn. Marketing Management. Pearson Education Limited, Essex, England.

Marketing Plan. [Online] available from <http://www.marketingplan.net/marketing-mix/> [31.08.12]

McCarthy, E.J. (1960) Basic Marketing: A Managerial Approach, Irwin, Homewood, IL.

SimFirm. [Online] available from <http://sim.cesim.com/dss/se/OutlookPage/wicket:pageMapName/wicket-0> [22.08.12]

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Activity Analysis Report