Abbott Company Marketing Strategy

Marketing is among the most vital activities in business, for instance, it forms the primary practice for exploring, promoting and, selling commodities to the target market (Hunt, 2014). Besides, marketing boasts sales which consecutively enhance profit realization which is the primary objective of any firm. Through the marketing process, the business informs, attract and persuade potential customers that the commodities are most valuable to them. Abbott Company is a significant global healthcare company which is fervent to the invention, development, processing, and marketing of medical products and pharmaceuticals which range from devices, diagnostics, and nutrition (About Abbott Diabetes Care, n.d). The company has established its precision test strip and freestyle excellent manufacturing site in Oxfordshire, UK. (About Abbott Diabetes Care, n.d). Flash glucose monitoring system (FGMS) is the newest product of Abbott Company which is essential to diabetes patients. FGMS is a small automatic sensor which continuously measures and keeps a record of glucose reading particularly during night-time (About Abbott Diabetes Care, n.d). The research work is a presentation of the main components of Abbott’s marketing strategy, assessment of how complexities of macro environment will impact on operation planning and marketing for the product and, appropriate techniques and methods of sustaining customer value and business operations.

Main Components of Marketing Strategy

Marketing Research

Surveys

Surveys are straightforward and concise questionnaires that will assist the Abbott Company to analyse its sample groups that represent the target market (Hunt, 2014). The company will use in-person, mail and online surveys. In-person surveys will be face-to-face interviews conducted on high-traffic settings such as supermarkets. Besides, the company will apply in-person surveys on instances which involves a specific target population. The primary objectives to be realized through in-person surveys is exploration or people's responses and also in helping the respondents gather deeper information on FGMS. In mail surveys, the respondents will complete questionnaires and submit their responses back to the company through the mail. The company will use mail surveys on circumstances where there are no respondents’ contacts such as phone number and email address. Besides, mail surveys will be conducted with the aim of geo-targeting the respondents in particular boundaries and zip codes. Online surveys will be effective in getting responses from distant respondents. For effectiveness, the company has to set the research goals before online surveys, data on respondent responses will be gathered, analysed and represented in a written report (Hunt, 2014).

Focus Groups

Abbott Company will use focus groups which are components of qualitative research in marketing. During the focus groups, the research team will bring about 6-12 respondents in a room and involve them with a gilded discussion on FGMS. The research team will target to gather consumer feelings and questions about the topic and, give them a chance to bring up topics of interest apart from those in the research list. However, the focus group participants will be selected from areas which are more susceptible for instance, areas with the highest number of diabetes patients. The participants in the focus groups will be chosen through snowballing sampling and advertisement. For effectiveness in gathering the appropriate information, it will be vital for the marketing research team to identify the main objective of the focus group and formulate the guiding questions (Hunt, 2014). The focus groups will generally last for between one and two hours, which is sufficient in covering for to six questions. Besides, care needs to be taken to select participants who have a high propensity to respond and those without prior knowledge on each other for them to participate freely (Hunt, 2014).

Field Trials

Through the field trials, the Abort Company will test the FGMS in real life situations. The practice involves testing the product and monitoring its performance during a specific period (Campbell and Walters, 2014). The objectives of field trials will be to allow respondents to taste the product and generate a need for it. However, the company will monitor the usage of field trial using both subjective and objective measures. For the effectiveness of the technique, regular interviews will be conducted with the consumers to collect and plot their experiences with FGMS. Such trials will be effective in gathering information on usage and non-usage of the equipment through the FGMS automatic features. To obtain maximum benefit, the field trials will be conducted for about five users at a time. During the planning phase, there will be a discussion between the marketing agents of Abbott Company and end users of FGMS concerning data captured during the field trials. During such discussion, the marketing research team will ask respondents to demonstrate their use of the commodity, their experiences and, interest in the continued usage of FGMS.

Target Market

The target market for FGMS will be on both UK and global areas which are more susceptible to Diabetes. For instance, a 2013 study on diabetes prevalence indicated that the most sensitive area in the UK is Wales at a rate of 6.1% (Hill et al., 2014). Subsequently, England follows at a rate of 6.0%, Northern Ireland at a rate of 5.3% and finally Scotland at a rate of 5.2%. The Abbott Company will prioritize on the regions before joining other international regions (Hill et al., 2014). Besides, the company will undertake demographic, behavioural and unmet needs segmentation. Demographic segmentation will be based on aspects such as age, income and geographical location of the customers. For instance, the company will commit to meeting the needs of both young and old diabetes patients. In behavioural segmentation, the Abort Company will classify customers on aspects such as; their tendency to buy a peculiar commodity, their ability to purchase something else, their loyalty and, their income distribution. On unmet needs segmentation, the marketing agents of Abbott Company will focus on consumers with unrealized needs. Such needs include medication efficiency, the cost charged or the performance (Hunt, 2014).

Product Positioning

Product positioning is a critical strategy that will help the marketing agents to situate feeds in the establishment of promotional and marketing activities. In most cases, consumers conclude where the product fits while the competitors try to position their products by casting a negative light on the firm's products (Lei and Moon, 2015). For effectiveness, the FGMS positioning strategy from Abbott Company will start conducting interviews with physicians in FGMS therapeutic niche to gather appropriate insight. The company will then evaluate the positioning strategies of the competitors, develop a rigorous scientific insight into the features and clinical attributes of the product and, undertake internal positioning with the marketing team. Subsequently, qualitative positioning testing is vital to offer diverse domain of subsequent opinions on the product (Lei and Moon, 2015). Therefore, the company should choose marketing specialists who are gifted communicators who are expert in picking up subtle variations in body language and vocal tone.

Marketing Mission, Goals and Objectives

The marketing mission of Abort Company is to be the leading international FGMS manufacturers and distributors. The mission statement thus defines the unique purpose, scope, product and market where the company which is a long-term tool for monitoring marketing activities (Williams and Morrell, 2014). The marketing vision of the company is to sustain a functional, economic and effectively-capitalized marketing department. It is also a marketing vision for Abbott Company to distribute the most quality FGMS in the market, hire the best sales agents who are committed to duty and, focus on customer care. In most cases, customer care services are crucial to attracting and maintain loyal employees (Williams and Morrell, 2014). It is a marketing objective of Abort Company to attain break-even period by December 2018, and subsequently, maintain a progressive profit realization records.

Competitive Strategies

To thrive in the contemporary, dynamic and competitive global environment, Abbott Company will maintain cost leadership, differentiation and focus. Cost leadership emphasizes on costs rather than the price, and thus, the company will strive to maintain the lowest costs in the trade and manufacture FGMS which fits for the broad consumer base (About Abbott Diabetes Care, n.d). In differentiation, the fundamentals of the company’s competition will lie on unique commodities and features that add consumer value. Thus, the consumers must perceive the product as independent and peculiar for them to pay their premium and loyalty (Cusumano and Kahl, 2015). A focus strategy focusses on serving a particular niche, and thus, the company will pursue a differentiation advantage.

Impact of Economic Conditions and External Environment Complexities of Marketing and Operational Planning For FGMS

Demographic Factors

Trends within the consumers and the general society greatly impacts on the marketing strategy (Babin and Zikmund, 2015). Such trend includes the changing generational tastes and preferences and the advancing purchasing power among the minority in both domestic and foreign trade. On generational preferences, youngsters are currently opting for quick, precise and automatic tools (Dessart and Veloutsou, 2015). The FGMS gadgets are convenient and automatically measures and keep information on glucose readings, is discreet, easy to use and user-friendly (About Abbott Diabetes Care, n.d). Thus, the demographic factors make the FGMS a preference particularly among the youngsters and old people, thus improving the sales volume. Besides, consumers are currently attentive to online information (Dessart and Veloutsou, 2015). Hence, it is vital for the company to use online advertising platforms such as Facebook and Twitter adverts.

Technological Factors

Rapidly evolving technologies affect the marketing strategies of a firm (Dessart and Veloutsou, 2015). For instance, technological advancement can make a marketing platform obsolete and inactive. Such promotion mediums that are getting outdated includes pamphlets, posters, Newspapers, and notices. Thus, the goal of marketing should be to understand the technological variation so that the product will remain viable and fresh. For Abbott Company, the FGMS is designed to measure interstitial levels of glucose in patients of at least an age of four years (About Abbott Diabetes Care, n.d). To remain competitive, the company should continuously align the product with the emerging technological trends otherwise the product will become obsolete. Besides, the advancing technology is changing the sales and marketing field. For illustration, customer relationship management (CRM) is enabling the firms to integrate their connection with clients and thus enhancing loyalty (Kumar, V. and Reinartz, 2018). Besides, on hybrid distribution networks, Abbott Company must build a multichannel system that leverages minimal cost, extraordinary touch technologies to improve marketing coverage, cost efficiency, and the comprehensive selling performance.

Economic Factors

The level of economy relates to the marketing strategies. A point in case, a component of a marketing strategy should be a forecast and should comprise of a budget (Epstein, 2018). Within the budget, the degree of the predictable future economic conditions affects the forecasts. Besides, an upsurge in unemployment rate relates to minimized buyer spending and thus fewer disposable income accessible for the household (Kaplan and Menzio, 2016). In such instances, marketing strategies on avoidable commodities become less effective. Abbott Company should, therefore, focus on regions with high disposable income and also, create a notion on a consumer that the FMGS is incontestable. Besides, the main recession can upset the whole market, while inhibiting consumer confidence in the process. Consumer confidence is an emotional factor, and thus, it links directly to the level of the economy and has a significant impact on marketing. It is viable for Abbott Company to, therefore, instil positive reputation about the FGMS and remodel their product to be more recession-proof than that of the competitors.

Competitive Environment Factors

The competitive environment of a company is a particularly and complex aspect of the macro environment (West and Ford, 2015). Hence, a company should evaluate and assess the factors since they impacts on the marketing strategies. For instance, the new entrants pose a threat to the existing firm such as Abbott Company. Thus, the company should evaluate how strong the entry barriers are concerning the fiscal requirements. A cornerstone of the initial market entry success of Abbott Company was on a strong financial base (About Abbott Diabetes Care, n.d). The company should thus use appealing and competitive promotion media to outdo new entrants in the industry. Besides, the rivalry among the current firms in the industry affects the promotion strategy. Consequently, the Abbott Company should consider developing a unique value proposition which other competitors cannot attain. Also, the threat of substituted goods impacts on promotion strategies, for instance, the offered goods can achieve customer satisfaction for a requirement of another product (Gong and Smith, 2015).

Methods and Techniques for Sustaining Business Operations and Customer Value

There are different techniques and approaches that businesses adopt in ensuring sustainability of operations and customer value. However, the methods vary from one market to another. For flash glucose monitor, Abbott should ensure that the goals, objectives, mission, and vision of the organization are well spelled out. A strongly spelled purpose drives profitability and growth as every segment of the organization works towards the same goal. Since the business environment keeps on changing, Abbott should ensure that time to time review of the company’s sense of propose is conducted to accommodate changes in the market patterns. The technique is suitable for sustaining business operations because it provides a consistent and constant sense of focus, establishes an intense emotional engagement with workers, and customers and also fosters continuous improvement.

Abbott is not a lone manufacturer of the flash glucose monitor in the market. As such, competition is an obstacle that the company should work towards overcoming to ensure profitability. To sustain customer value, the Abbott should ensure that the product offered to the market is of high quality as compared to that provided by competitors. To achieve this objective, the company should first choose a suitable target market as trying to be all things to all people is one road to failure in business (Goetsch and Davis 2014). In the product development stages, the company should collect views from the customers about the perceived levels of quality preferred. The products should then be designed in consideration to market specifications. The approach helps customers to feel emotionally attached to the product. High-quality products encourage customers not only to conduct repetitive buying but also refers to other customers thereby sustaining business operations.

Entry into a new market is a risky venture and an organization planning to invest in a new business should adopt appropriate new market entry strategies (Fleisher and Bensoussan 2015). To ensure the sustainability of business operations and customer value, Abbott should adopt partnerships and collaborations as the initial market entry strategy. The company should identify a leading manufacturer of Flash glucose monitor and affiliate with it in the form of alliance, franchising, licensing among other collaboration strategies to first get to know the do’s and don’ts of the business. The approach is feasible because it has minimal risk exposure and also provides the company with adapting to the new business before fully investing. The strategy also helps in reducing the costs associated with advertisement and product promotion to gain a competitive advantage.

Abbott should also employ apply appropriate product promotion techniques to promote the popularity or the new product. The Company should adopt the right strategies including print and electronic media for the advertisement that helps to inform the public of the existence of the products, where they can find them and the benefits of using the products (Chang 2016). However, the company should avoid costly advertisement media in the effort to cut down on costs. Some of the appropriate product promotion techniques include public relations, publicity, and advertisement. Product promotion helps in informing and reminding customers of a given product thereby promoting sales and ultimately business sustainability.

Customer service is a crucial driver to business sustainability (Pan and Nguyen 2015). Abbott should ensure sound customer relations by ensuring that the marketing team upholds the highest degree of customer service. The approach ensures that the organization wins the trust of the customer. Organizations personnel should also provide services like free delivery, warranty, replacement of default products, discounts and other incentives to attract customers. The company should also conduct free medical services to test the public for blood sugar levels and other health conditions and advise them accordingly. The strategy helps in discovering high blood sugar level cases. Abbott organization should also strive to retain its customers by conducting a follow-up to determine the level of customer satisfaction. In the United States of America, research shows that a 10% increase in customer retention equals a 30% increase in company value (Ascarza et al., 2018)

Approaches to Managing Performance, Quality and Process Improvement.

To manage the performance, processes, systems, and quality of the flash glucose monitor, the company should periodically assess the level of compliance with the set objectives. The approach helps in identifying areas of weaknesses to foster improvements (Rosemann and vom Brocke 2015). Effective communication strategies within the organization should also be installed to ensure that there is an effective exchange of information between the different sections of the organization. Employee performance appraisal should also be conducted to identify the level of performance of the employee. The poor performers should be subjected to training and development programs while the good performers should be motivated through recognition or even rewards. Feedback from the customers should also be gathered to measure the level of satisfaction. The approach helps in discovering changes in customer tastes and preferences thereby identifying improvement gaps.

Conclusion

Marketing strategies are among the most effective components of business activities. Abbott Company wishes to advance its market for its new product, FMGS. For effectiveness, the company has to undertake marketing research which comprises surveys, focus group and field trials. Also, the company has to analyze the target market and product positioning. Besides, the company needs to examine its marketing goals and its competitive analyses. External environment factors such as demographic, technological, economic and competitive environment have a propensity to affect the marketing and promotional strategy. The methods appropriate in ensuring the continuity of business operations includes enhancing quality, adopting new market entry strategies and, promoting popularity of FGMS.

References

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