Choufont-Salva Inc.

Case Analysis Marketing Group 5

PESTLED Analysis
Macro-environment Factors

 Government promoting family planning services.

Subsidizing substitute product (I.U.D)

 Two third of population are low income people Large gap between cities and rural areas.

 Family planning is gaining awareness with supporting from groups and associations (FPAP, PPMP, RPA, etc) More women want to learn about birth control. 32.5% already know about family limitation. Catholic church start to allow using birth controlling methods

 Technology in medicine industry increasing due to MNC companies join the market. Better products are expected in short future.

 Low restrictive drug laws Has law on controlling advertising activities, but being ignored.

 High level of population density Shortage in food supply

 High population and density (over 63 million in 1991)

Highly grow rate: 2.4%/year 85% stay in rural areas. Women between 20-45: ~11 million ~60% of women between 15-45 are married.

 Roman Catholic is the main religious with 84% of total. Low education standard: ~80% of women have intermediate and lower level.

Porters 5 Forces Model

New Entry
High cost, long time Other MNC

MEDIUM Bargaining Power of Suppliers

A. L. Choufont et Fils, S.A

Rivalry
Brand A: 35% Brand B: 17% Brand C: 10% Brand D: 8% Brand E: 5% Others: 20% HIGH

Bargaining Power of Buyers

Drug outlets: 75% Family clinics: 25% Doctors, physicians: 5%

LOW

HIGH

Substition
I.D.U Other methods

HIGH

 Heavy financial investment required Long time to develop and market products
High threats from other MNC companies enter the market

 Highly competition level 5 out of 15 brands control 75% of market

Brand % Market share A B C D E 35 17 10 8 5 Price Low Low Medium Medium High Distribution channel Drug outlets Family planning centers -

Competitors offer wide range of products from low price to premium

 Supplier: A. L. Choufont et Fils, S.A. Choufont-Salva relies on its parent company for supply
Low threat from parent company

 Main buyers:
Drug outlets: 75% Government and private clinics: 25% Doctors, physicians: 5%

Switching cost is low

Buy in large volume

Buyers have high bargaining power

 I.U.D (Intrauternine Contraceptive Device)

Highly promoted by government High threats

Other birth control methods

Condom, Diaphragms, Spermicidal Jellies, Creams Low threats

SWOT Analysis
Internal Factors

 Better product Lower production cost

Good company image

Good relationships with B2B distributors High skill sales representatives

 Lacking of mass communication knowledge Maintain close relationships with only 25% of doctors and 30% of drug stores.

 Do not have enough benchmarking information on product in other markets.

Neglect of marketing research. Fail to realize the important of the primary data and market test.
Sell what company has, not what people want

 Highly growth market: 50% per year for next 3 years Competitors products take 9-12 month to launch. Can get supporting from FPAP Less restriction from Catholic church

 Better products from competitors coming soon Substitute solution is cheaper and being support by governments and clinics High cost in mass communication Religious believe

Thanks You!
Marketing Group 5