Table of Contents
- General Company Description
- Business Form
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- Vision and Mission
- Business Activity
- The Market Size and Growth
- Analysis of the Competitors (SWOT Analysis)
- Strengths and Weaknesses of Muscat Pharmacy
- Strengths and Weaknesses of Waleed Pharmacy & Stores LLC
- My Business (BizMed Pharmaceuticals)
- Competitive Advantages
- Evaluation of the Offered Market Segments
- Marketing Plan
- Market Entry Strategy
- Core Marketing Strategies
- Products and Services and Their Benefits to Consumers (Value Proposition)
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This business plan is based on an imaginary business idea that is to be launched in Oman. BizMed Pharmaceuticals will be headquartered in Muscat, Oman; it will operate in the pharmaceutical industry. The company will focus on the provision of several products including drugs for treating gastrointestinal tract, consciousness, eyes, and different infections, as well as contraception and pain relieving. The business will target consumers living in Muscat. Since it is concerned with the health problems, it will be accessible to everyone without strict customer segmentation based on any other factors such as gender or age. BizMed Pharmaceuticals will be a sole proprietorship business owned by James Stevenson. The future of the business is supposed to be successful because of the increasing health needs of the consumers in the region. It is expected that the company will be in a favourable position to compete in the market with the relevant advertising strategies, which will promote its survival.
General Company Description
The business will take the legal form of a sole proprietorship owned by James Stevenson. BizMed Pharmaceuticals will be duly registered with the Oman Chamber of Commerce and relevant municipal authorities in Muscat in order to ensure compliance with the country’s standards on the start-up businesses.
Vision and Mission
According to Reuvid (2010), every company should have a specific vision and mission in order to ensure it can achieve its goals in the most effective way. Therefore, BizMed’s mission is to deliver quality products and services to all the customers at the most affordable prices. All activities at the company would be undertaken in a manner that maximises the consumer value at manageable costs.
The vision of the company is to become the leading pharmaceutical company not only in Muscat but also in the whole country in terms of providing a wide variety of drugs for different health concerns. The changing nature of the business world and competitiveness require the companies diversify their operations without necessarily focusing on one particular product. Therefore, BizMed looks forward to growing from one strength to another and become a significant force in the pharmaceutical industry of Oman.
The pharmacy will sell different drugs including antacids, antiflatulents, cytoprotectants, analogues, laxatives, opioids, NSAIDS, anaesthetics, antiviral drugs, and anti-fungal medications, as well as provide diagnostics in the central business district of Muscat, Oman. The key health issues to be covered by the drugs sold at the pharmacy include gastrointestinal tract, pain, consciousness, eyes, contraception, and different infections. The focus will be wide in order to ensure that a large number of consumers are served within one store. They will have an opportunity of buying most of the needed drugs at a single store; hence, the level of clients’ satisfaction will boost.
The aim of the business is generating the income for the entrepreneur. Many people have not been keen to venture into this business’ therefore, it is going to be an appropriate ground for generating revenue for the future plans concerning investments and business expansion.
BizMed Pharmaceuticals will operate in line with a number of objectives that will help in the measurement of its performance. The objectives of the business will be as follows;
The first significant objective of BizMed will be to attain the sales of 400,000 Omani riyals in the first year of its operation. Since it is a start-up business, not much is expected as the company will be trying to find and occupy the market niche.
The second crucial objective of the business will be creating a pool of loyal consumers over the first year of its operations. Many businesses fail to succeed because of the unavailability of consumers. However, BizMed will highly focus on winning the loyalty of consumers for the attainment of its long-term objectives.
The third objective of the business will be to attain a net profit margin of at least 20% in its overall operations in one year. This objective is instrumental in reflecting its stability in the pharmaceutical industry.
The Market Size and Growth
The changing healthcare needs in Oman have played an instrumental role in the rapid growth of the market because of the increasing demand for different medications. Bladd (2010) opines that the Oman pharmaceutical market will grow by 37% in the next two years; this fact provides a perfect opportunity for BizMed Pharmaceuticals to penetrate into the growing market. According to Bladd (2010), the recent report by Business Monitor International indicates that the growth in the market size is catalysed by the growing demand for generic and over-the-counter drugs (OTC). This trend is another advantage to BizMed because it will be able to sell the OTC.
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Analysis of the Competitors (SWOT Analysis)
The pharmaceutical industry in Oman has some well-established in the market companies. These companies are expected to offer stiff competition to BizMed, as it tries to penetrate into the market and establish itself as a powerful force. Therefore, the company should be aware of these competitors in order to take relevant steps that might avoid the premature collapse of the business. The two most significant competitors for BizMed Pharmaceuticals will be Muscat Pharmacy and Waleed Pharmacy, both located in Muscat.
Strengths and Weaknesses of Muscat Pharmacy
The first strength of the company is that it is a well-known supplier of pharmaceutical products of different brand leaders around the globe. According to Wippel (2013), Muscat Pharmacy occupies an advantageous position being the largest supplier of pharmaceutical products. It is widely known not only in Muscat but also in other regions of Oman.
Secondly, Muscat Pharmacy has built an effective sales network across the country and ensured consistent supply of its products to all regions. This fact ensures an easy access to most of its products by numerous consumers across Oman. The strong sales network has not been shaken by any other company at the moment. The company has established itself in the market utilising some powerful channels relating to the distribution of various products across the country.
Thirdly, the company has put a priority on the quality of goods and services in working with its customers. Morison Muscat LLC (2012) indicates that the philosophy of high-quality standards makes its business attractive to many consumers in Muscat and other parts of the country.
Moreover, it boasts of the well-documented procedures, which ensure that its medicines are stored, transported, and delivered under a strict temperature control. With such procedures, its products remain fresh and more appealing to consumers from all over the country.
The most notable weakness of the company comes in terms of dealing with many suppliers it represents. Muscat Pharmaceuticals represents numerous companies including AstraZeneca, Aventics, and Bayer. The large number of companies represented poses a challenge to the business’ ability to penetrate into the market in the best way possible. It is especially true because of the varying qualities of products delivered by each of these companies.
Strengths and Weaknesses of Waleed Pharmacy & Stores LLC
Waleed Pharmacy & Stores LLC will be another formidable competitor in the pharmaceutical industry in Oman. It is one of the leading companies in the provision of pharmaceutical products and services in the region.
Omar Zawawi Establishment (2014) asserts that the first outstanding strength of Waleed Pharmacy & Stores LLC is a strong diversification in its activities. The company’s activities cover pharmaceuticals, disposable and consumable products, surgical and hospital equipment, and laboratory equipment. This fact gives it leverage in the market because consumers have a better opportunity to access absolutely every product and service at one company.
Secondly, the company exhibits strengths in its nation-wide marketing strategy that promotes the consumption of its products and services and, hence, increasing the profitability. The marketing strategy is well-defined and ensures that consumers are informed of the various products and services offered by the company; consequently, the sales volumes have increased over the period of its operation.
Thirdly, Waleed Pharmacy & Stores LLC possesses numerous retail outlets that give it maximum strength in the pharmaceutical industry. Omar Zawawi Establishment (2014) reiterates that the company has six retail outlets in Muscat, which are well known to the consumers. Therefore, it will obviously pose a challenge to the penetration of BizMed Pharmaceuticals.
The key weaknesses that Waleed Pharmacy & Stores LLC has to deal with are numerous deadlines, which most of its employees tend to postpone due to pressure. In the company, the level of procrastination is extremely high, and this fact contributes to ineffective performance in some instances. In such a manner, the company always has to deal with the pressures. In some instances, a few of its retail outlets, such as Al Khuwair and Qurum, experience delays in the distribution of products.
My Business (BizMed Pharmaceuticals)
The first crucial strength of BizMed is that it will be a small business; hence, it is more flexible in terms of dealing with the needs of consumers. It is clear that the tastes and preferences of people keep changing with time. Therefore, it is vital for a business to respond to such needs immediately in order to satisfy the clients. The small nature of BizMed Pharmaceuticals gives it the flexibility in responding to the consumers’ needs.
Secondly, the company will be strategically located in the heart of Muscat business centre; hence, it will have an opportunity of attracting the customers in the easiest way possible. Fifield (2012) assures that the location of a company determines the amount of sales it is able to generate. A favourable location will facilitate an easier competitiveness of the company in the market.
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The third key strength is the strong management opportunities that it will experience. The sole proprietor is an effective manager, and it will be a positive sign for the business. It will play an assistive role in ensuring that the relevant and productive decisions are consistently made.
The marketing strategy embraced by the company is another crucial strength. The strategy focuses on advertising in order to familiarise consumers with the location of the business and the products and services it offers. With this strategy, it will be easier to achieve the desired goals.
BizMed is weakened by its small-sized nature. Rogers (2008) warns that most consumers might overlook it because it is a start-up operating on a small scale. There is a general tendency that the small-sized companies do not have the capacity to offer the products and services people require in the best ways possible.
The company also will face the weaknesses relating to the high costs of operation such as rental costs and salaries to a few employees who will be hired for assisting in running the operations. For most start-ups, it is always difficult to deal with the skyrocketing costs of operation, and BizMed is no exception.
BizMed Pharmaceuticals will be able to compete with the heavyweights based on the fact that it will offer drugs for diverse medical services. As noted previously, it will focus on diversification in this highly competitive market in order to survive and achieve the desired results. With the wide range of quality products, it will be easier for the company to win the trust of consumers and earn their loyalty.
Another competitive advantage is the appeal to the local consumers because of the provision of all products and services at an affordable price. Consumers will not be required to pay much money for the products and services they purchase from the company.
The after-sales services offered by the company will also serve as a vital competitive advantage. The company will offer some after-sales services such as advice on how to use the products and the best ways of ensuring appropriate storage. MacKay (2011) indicates that consumers feel more appreciated and cared for if they are offered such services.
Evaluation of the Offered Market Segments
BizMed Pharmaceutical targets the general public because of the understanding that it is going to offer drugs for different medical conditions. Health is a matter of concern for everyone. However, one of the key aspects of segmentation will be the geographical issue as most of the target group will be consumers in Muscat. The business is only starting; therefore, it will try to win the confidence of Muscat citizens before expanding to other geographical regions across Oman. Satisfaction will be the primary objective in dealing with the local consumers as they are likely to influence the ultimate strategy of a company aimed at increasing its geographical segmentation.
In respect to the general public, the market will be segmented into the young children below the age of 5, teenagers, women, and men. Such segmentation is especially sound because some drugs are meant only for specific groups of consumers. For instance, the contraceptives sold at BizMed will be clearly distinguished into those for females and those for males; hence, the level of quality satisfaction in every consumer segment will boost. The company expects to attract all these groups, as the management will do everything possible for providing the products and services required by each of them.
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Market Entry Strategy
The market entry into Oman will begin with the market research. It is always vital for businesses to conduct a satisfactory market research in order to understand the needs of consumers, assess the competitive environment, and reveal any other external factors that might affect the operation of the business. Therefore, the penetration of BizMed Pharmaceuticals will begin at the market research stage aimed at studying the attitudes of consumers toward the kind of products and services they expect from the pharmacies. This stage will play an instrumental role in providing a clear picture of what the market looks like.
Licensing will be the primary market entry strategy in the process of getting into the Oman pharmaceutical market. Kreston International (2014) affirms that the entrepreneur is guided by an understanding that individuals are not given a direct entry into the pharmaceutical market in Oman and have to prove beyond doubt that they will deliver impeccable products and services to consumers in the market. Therefore, a licence will be obtained from the local authorities in Muscat; this step will give the business an opportunity to enter the market as a legal entity ready to offer defined services and products. In line with the views of Ferrell and Hartline (2010), licensing will be adopted as the key market entry strategy because of the role it plays in informing the authorities on the type of activity being undertaken and any limitations that might have been placed on the provision of such products and services. Moreover, it will allow the business to enter the market without necessarily forming any alliances with the existing entities. Therefore, it will promote independent operations as a sole proprietorship business within Muscat.
Core Marketing Strategies
A successful entry into the market will not be the challenging point for BizMed Pharmaceuticals. The company will move forward in informing the potential consumers about the products and services it offers.
The first relevant marketing strategy that will be employed is the print advertising. It implies that the brochures will be designed, and the adverts will be placed in the local newspapers in order to inform consumers about the location, products, and services offered by BizMed. MacKay (2011) states that the print advertising is preferred because it will provide the consumers with the ability to see the company’s logo, vision, mission statement, and key activities. Consequently, most of them will be motivated to come and experience these products.
Another core marketing strategy that will be employed by BizMed Pharmaceuticals is social networking. Fifield (2012) emphasises that the technology has taken over the world, and businesses have an opportunity of taking advantage of such avenues for own gains. In this regard, the company will create a page on both Facebook and Twitter in order to ensure that as many people as possible are able to read about it and its operations in Muscat. Persuasion would be the key tool in ensuring that the citizens learn about the company.
The third marketing strategy will be the use of offers and seasonal promotions on different products. Consumers will be given the opportunity to enjoy special offers and promotions on a defined set of products on different holidays and special event. Such strategy will promote the reputation of BizMed.
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Lastly, the displays will also be used in order to allow consumers to see the nature of products available. Such displays have been known to attract consumers automatically, especially when they are able to compare the prices offered by the competitors.
Products and Services and Their Benefits to Consumers (Value Proposition)
As stated earlier, the key products at BizMed will include the drugs for several conditions such as treating gastrointestinal tract, consciousness, eyes, and different infections, as well as contraception and pain relieving. The company understands that the locals (consumers) require original products approved by the country’s standard setter. The products of approved quality will be offered at affordable prices. The customers will acquire a unique experience once visiting the company’s premises because of the recognition of the value they add to the company. They would have an opportunity to serve themselves while asking for assistance whenever necessary. The key benefit that would be derived from the products offered by the company is the assurance of the customers’ good health. The original nature and quality of the drugs would play an instrumental role in boosting the health. Again, the clients will enjoy the cost-saving benefit by purchasing the products offered by BizMed Pharmaceutical. It is especially sound because of the lower prices charged as compared to the competitors. The services are also envisaged to be exemplary with unique packaging from the traditional systems used by other market players. An innovative and differentiated way of packaging will satisfy the consumers’ needs for a secure mode of carrying around the purchased drugs for a later usage.