Square Pharmaceuticals Ltd fits with the first stage of strategic orientation. The first stage is Domestic market extension orientation. In this stage, the domestic company seeking sales extension of its domestic products into foreign markets illustrates this orientation to international marketing. In this stage, the primary motive is to market surplus domestic production and considered international operations as secondary to and an extension of its domestic operations.
Square’s first priority is to fulfill the demand of local market, after that they go for exporting in foreign market in order to make a profitable extension of its domestic operations which implies that it fits under the domestic market extension orientation. Even though the foreign markets dynamically pursued, Square’s orientation remains mostly for Bangladesh. The attitude of this stage towards international sales is typified by the belief that if it sells in Hong Kong, it will sell in Sri lanka as well, even anywhere else in the world. It means it follows a standardized form with a little customization.
For example- Square Pharmaceuticals Ltd has its operations in almost 38 countries in the world. For every country, it produces medicines and other pharmaceutical products of same quality. Some customization happens in terms of packaging, pricing and promotion which depend on environment, tax regulation, Government intervention, language and so on. Square seeks markets where demand is similar to the home market and its domestic product will be acceptable. In Bangladesh, Square Pharmaceuticals Ltd is the market leader in pharmaceutical business. They earn the largest part of revenue from the local market.
After that, they go for export in the foreign country where they earn 3% to 4% revenue from exporting. A firm that lies in this marketing approach is classified as ethnocentric. Attending Trade Fairs: Square Pharmaceuticals Ltd divides their segments into different zones. For example they have zones in Asian, African, Central American and European countries. For global orientation, they try to attend the trade fairs through EPB (Export Promotion Bureau) or personally. In the trade fairs many companies of Bangladesh participates to promote their products and in this case Square attend through export promotion bureau.
The partners or agents f different countries who have a partnership with Square Pharmaceuticals Ltd, they inform them about the fairs. Market Visit: In addition, they also make regular market visits. Besides these, in terms of regular exporting countries where Square has marketing operations, they try to visit the country at least once in a year for training and market visit. In some countries, they visit more than twice in a year; it depends on the market situation and other requirements. In most cases, the partners or the agents are belongs to host countries as they are more capable to make a strong network among the distribution channels of the host country.
In collaboration with the buyers, Square Pharmaceuticals Ltd does active promotion of their products. The medical representatives show sample of medicines to the doctors or other medical personalities in order to promote their products directly. Involvement of Buyers: In terms of finding gaps or solving any difficulty, along with their partner they take decisions. The buyers give the information of the happenings of the market, what are the good things, what are the negative things, where the company should improve. Through regular communication with the buyers, Square solves the problems.
Mostly, it happens continuously by phone, e-mail or Skype. If necessary, they also visit the country for understanding the gaps and take decisions along with their partners. Moreover, the buyers also inform Square about the new demand of the market and give them updates frequently. Launch Product for Export: If in the foreign market demand for new product arises the partners inform Square about the demand of the market. In this case, if the company has the product in the product line, they will start to export them according to the requirement of the market.
But if, the company does not manufacture the product, the company will launch the new product in order to serve the foreign markets. Partnership Business: Square Pharmaceuticals Ltd does not have any joint venture with any country. They work with other countries through partnership. Square only sell the products and give promotional support to the export countries. Their partners do all other tasks to run their business. For instance- evaluating market demand, sell the products in the markets; handle organizational activities, maintaining the proper distribution channel and so on.