Marketing Strategy of Merck analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Merck marketing mix, help the brand succeed in the market. Let us start the Merck Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Merck marketing strategy can be explained as follows:
Merck and Company Inc. is a research-based pharmaceutical company that specializes in a broad range of products that are used to improve consumer and animal health. They have four divisions as a part of their marketing mix product portfolio viz Merck Serono, Consumer Health, Performance Materials and Merck Milipore. They operate in three segments – Pharmaceutical, animal health and consumer health.
In Pharma sector, they operate in various segments – Dermatology, Diabetes, Gynaecology, Hormones, Respiratory, Gastro Intestinal, Vaccines, Cardiac, HIV, Neuro, Anti-Inflammatory, etc. Their legacy products include meds for vaccination- first mumps vaccine, rubella vaccine, trivalent measles vaccine, hypertension medicine etc.
Merck Price/Pricing Strategy:
Below is the pricing strategy in Merck marketing strategy:
Pricing strategy followed by Merck is different for different countries. They follow a differential price strategy in developing countries like India whereas they follow a value-based pricing in developed countries like USA.
Merck also charge their franchisees a fixed fee based upon the sales. In US, the healthcare services are funded by the Medicare, Medicaid, the Veterans Health Administration and private insurance.
Following is the distribution strategy in the Merck marketing mix:
Headquartered in New Jersey, USA, Merck operates worldwide in around 70 countries – developing as well as developed nations. Some of the areas where it is predominantly present includes Egypt, Africa, Asia, Oceania and the Americas. Merck’s R&D centres are located in Boston, Tokyo, Beijing, Darmstadt.
The products are available through several pharmacies and OTC shops where medicines and products are available for patients, clinics and other customers.
Merck Promotion & Advertising Strategy:
The promotional and advertising strategy in the Merck marketing strategy is as follows:
Merck conducts its promotion through various modes. Their product website gives us the information of all the products under its Healthcare, Life Science and Performance Materials category. They are involved in various patient assistance programs for various diabetes drugs. They also tied up with other pharma companies in order to promote their drugs. They also followed a Direct to Consumer Advertising in order to sell some specific drugs directly to the market without any intermediary like a physician. Merck has always believed in more of a Product Orientation than Marketing Orientation as the product should be able to sell itself based on its ability rather than on marketing. They have also published books that provide information on when to seek medical attention, how to address ailments at home, and possible causes and symptoms of various diseases. Merck popularised the strategy of creating “lovebrands” to connect with the consumers on an emotional aspect. It is an approach to work with the consumers to test product concepts, test campaigns, etc. The success of pregnancy multivitamin Femibion is the outcome of this strategy. Hence this completes the marketing mix of Merck pharmaceuticals.
Based out of USA and Canada, Merck is one of the largest pharmaceutical companies in the world. It was found in 1891 and then as an independent organization in 1971.
Close to 70000 people are employed with the company. The company has been recognized as a Fortune 500 brand based on its consistent revenues.
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