Published by MBA Skool Team, Last Updated: October 28, 2018
Marketing Strategy of Novartis analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Novartis marketing mix, help the brand succeed in the market.
Novartis marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Novartis Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Novartis marketing strategy can be explained as follows:
Novartis is catering to various medical sectors inclusive of eye care products, generic pharmaceuticals, neurology, psychiatry, respiratory and much more like Sandoz as well. Novartis has started producing new types of medicines like generic medicines abbreviated as Sandoz. By which company is targeting new growth markets like India and China where average spending over medicines is very le. It is gradually shifting towards generic medicines along with patent expiries and the volume driven growth in the pharmaceuticals market. Novartis provides all types of Allopathic, Ayurveda and medicines in different forms like tablets, capsules and syrups as well.
Some of product offerings of Novartis are
• Alcon (EYE care Products)
• Sandoz (Generic Medicines)
The product categorization offered by Novartis include:
- Consumer health
- Animal health
- Pet care
Alcon is the product by Novartis for eye caring. The company has research and development centres in UK and US for its development in eye care products. The company is also producing generic medicines as a part of its marketing mix product strategy, which is called Sandoz. This product is specifically designed for low-cost baring customers in developing and poor countries.
Novartis Price/Pricing Strategy:
Below is the pricing strategy in Novartis marketing strategy:
Pharma industry is known for its pricing strategy.
Brands charge more for their exclusive products. Novartis doesn’t follow market-oriented pricing strategy in its marketing mix rather as there is exclusive product line of every brand in the market. A company set their prices for products according to demand and brand equity. Novartis has prices comparable to market behaviour and demands. With main competition with various brands like Cipla, sun pharma, enforce, the Novartis has focused more on its better quality and high research with more developed with exclusive prices. Operational cost is also one of the important challenges to maintain its cost pricing strategy for Novartis Production houses.
Following is the distribution strategy in the Novartis marketing mix:
Novartis have the presence overall developed countries and nowadays they are focusing on developing nations like China and India due to its product line of generic medicines. The pharma sector targets the healthcare segment and related services. Novartis has tie-ups with some governments for its supply of generic medicines to the mass (Due to cost factor). Novartis has R&D centres across the globe to fulfil the needs of the customers with time. The need has been changed across the globe with time. The company has managed its supply chain network to reach to mass.
The company is also focusing to have collaboration with NGO’s which are working with healthcare sectors.
Novartis Promotion & Advertising Strategy:
The promotional and advertising strategy in the Novartis marketing strategy is as follows:
Being international brand Novartis has followed various marketing strategies for its promotion of the exclusive products. Advertisements in print media like newspaper, magazines and hoardings were traditional methods for its public reach. Novartis has been in practice to organises or sponsors different events especially related to healthcare sector to reach to more customers. More discounts or fewer prices medicines-based ordering, distributing discount for the recommendation or online purchases has helped a company to generate more customer base. Digital marking is now one of emerging promotional strategy of the brands. Customer analytics helps Novartis to strategized its marketing to reach the targeted customer. Novartis is also publicizing their products digitally using SME and other techniques to reach to mass.
Novartis is one of the important manufacturers of pharmaceuticals and other pharmaceutical ingredients (API). The company is currently working in many countries as it one of a second largest company in the world till 2011.
Novartis has the extensive network of distribution overall globe. The company has more than 120,000+ people employed in the organization.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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