Photonic Glucose Sensor on Russian Market, страница 9

-  The technology used is unique and revolutionary, and can bring significant positive changes in lives of people with diabetes;

-  The product really delivers the best value for the price;

-  Even though the entry mode is licensing, and the product will be manufactured by Russian partner, the core detail – sensor itself, will be produced in Canada and then exported to Russia, so the quality will be assured;

-  The market price will be high enough to make branding effort profitable.

Consumer product class

Consumer product class can be defined as specialty product, the price sensitivity of which tends to be low, what we use defining our market price; the limited distribution can be acceptable – the reason why we choose the selective distribution. Speaking about consumer behavior, customers tend to be willing to expand effort to get specific product and to actively use the Internet which becomes an important information source, what we use when developing our promotional campaign and launching the official site on the first stage of the campaign.

Packaging

Cybiocare pays a due attention to the issue of packaging. For the PGS the key function the packaging plays is the protection function, since it is necessary to reliably protect highly technologically complicated product during transportation and storage. The next important function is promotional function – the necessary information is located on the package, and the main message, which is directed to the customers in the promotional campaign, is placed on package. With help of text and pictures the unique selling proposition is transferred to customers. Last but not least function is enhancing product function. To add value by increasing convenience of use developing marketing mix for Russian market the standard package furnishing. Originally the following items were included into the package: two armbands with built-in rechargeable batteries, a sensor device and a charger.

The added items will be: special leather case and booklet with instructions and information about the company and its other products.

Warranty

Since when we are talking about medical devices the reliability tends to be one of the critical criteria for the customer, it is necessary to make consumers sure with our product. The first step in this direction is free testing, and the second should be the pretty long guarantee. So the clearly written 3-year warranty will be provided. Moreover, the company will work out special agreements with all distributors to ensure that in case of any problems refund or replacement is provided.

Product life cycle

Elaborating marketing mix for Russian market we should understand that the entry to the Russian market is planned when the PGS on Canadian and the USA market will be on the growth stage. So the introductory stage on the foreign market will be combined with the growth stage on the home country. That means that the seed money, investment into distribution channels, investments into building up relationships in B2G sector and marketing campaign budget can be well supported by growing revenues from the growing sales on Canadian and the USA market.

Place

As Cybiocare do not produce huge amount of goods and the product features are such that the company doesn’t need to build complex distribution system and to build relationship with wholesalers.

We suppose that company should choose selective distribution strategy and concentrate only on several commercial pharmacies. As we mentioned before PGS is customized to several group of customers of different age and level of income. The majority of the target audience will be covered with state drugstores the rest – by the commercial pharmacies. We find out several drugstores chains that could be good distributors for PGS as they are popular among different group customers. In Saint-Petersburg the company can work with such drugstores chain as Первая помощь, ЭдиФарм – which are more popular among people from upper-middle class, and Аптека Озерки – which is target customers from low-middle class.