I. Statement of the Problem
CNS is now facing the challenge to go global. In order to attain the best strategy on whether to push or back out the idea, they had to consider the different factors that would be relevant to the success or failure of the project. Some of the most important factors to consider are: the advantages and the disadvantages that the action would entail, the perfect marketing strategy to use, and the type of consumers where they could benefit most.
II. Summary of the Facts
Breath right strips was developed by a chronic nasal congestion sufferer and brought the invention to CNS Inc. which recognized its potential. It underwent the process of recognition to the FDA. The product qualified as an OTC medical products, which means over-the-counter and needed no doctor’s prescription in order for the consumers to avail. Breathe Right nasal strips are innovative adhesive strips with patented dual flex bars inside. When attached to the nose, they gently lift and hold open nasal passages, making it easier to breathe. It is used for variety of reasons from snoring to more complex nasal problem like sinusitis and allergy.
The idea of bringing the product into the global market poses some advantages and disadvantages. One of the advantages is the fact that at least the product had sold some $45 million in just a year. This means that the product had been endorsed by a relevant person in the field by which the product is most needed. The idea that a popular person uses the product could bring more customer than expected due to the reason that most of us, look up to our idols and patronize the things they use or do to be tagged as “cool”. This helped a lot in the marketing and popularity of the product. Another advantage is that the target markets of the product are those countries with high OTC demands. This could be viewed as a profit already.
The help of the local markets proved to be of great importance in the success of the project since they had the direct interaction with the consumers. It is an advantage since CNS recognized them as the major factor to consider. On the other hand, the idea to take the product to the global market has its disadvantages. One of them is costumer’s acceptance. Acceptance in the part of the costumers is hard to establish. The fact that not all of the consumers in their target markets had been informed and been exposed that there is a certain product like this, it could be a disadvantage on their part. Another is the existing cultural differences in their target markets.
One of the advantages of the three stage process is that, it helps to ensure the product is meeting the growth expectations. The stages are like the scientific method of doing things. In the process the expectations are laid one by one and are carefully analyzed. It had to pass the first stage before moving up to the next stage. This is advantageous in the sense that, arising problems in the process would be dealt right away and give them time to look for the solution before it is felt by the general public (the consumers). Another advantage is that they are able to check and balance the costs and benefits that a certain proposal could give to them, meaning they do not have to underwent expensive dry runs to be able to analyze their products.
Having specific criteria’s to move through the stages is an advantage it could help them achieve the best possible idea that they can create. Another thing is that it can help them do their job in the least possible time but of excellent quality. This is due to the fact that they are dealing right away with the specifics and only very minimal with the general ideas. Countries that must have the highest priorities by the CNS are high in TOC demands like the third world countries. Since third world countries are their target markets then the general public should be their potential users.
The marketing mix variable that should emphasize the most in order to succeed is the product-promotion mix. This mix could be an advantage since they do not know personally their potential users. Since product include functionality, appearance, quality, packaging, brand, warranty, and service /support plus it was backed up by the attributes of promotion which is advertising, personal selling, public relations, message, media, and budget then it would be very beneficial to the company unlike other marketing mix variables. (MBA, 1999)
In summary, taking Breathe Right strips into international markets is of advantage to CNS. With the kind of strategy they are using (three-stage process), the way they recognize the importance of consumers and local partners, and the excellent employees they had it is obvious that they can manage to go global.
- MBA, Q. (1999). Marketing Mix [Electronic Version], 1. Retrieved September 22, 2007 from http://www.quickmba.com/marketing/mix/