What forecasting/management tools does the company operate and how successful have these been in achieving company goals?
To answer this question, it is important to consider the goals Nutricia Middle East and Africa wants to achieve. The central goal of the company is to transform the company from “trading organization into a customer- and customer focused one” (Martinez and Sha 1). The optimization of the investment in the medical representatives and the measurement of their effectiveness and efficacy with the further reporting to the company management for making decisions in the sales force and medical strategy are the main steps the company wants to complete with the purpose to achieve the results.
The first step for making Nutricia a customer focused company was made in 1990’s when the company began its expansion to the Middle East and Africa via a string of acquisitions. The departments began to perform specific functions. The head of the organization understood the importance of management of medical marketing and stressed this function. Nutricia tried to involve the states’ government into the supply chain to make sure in its support.
Understanding the importance of the primary choice of IMF formula and keeping in mind the restrictions to the direct advertising of IMF products to parents with children up to one year, Nutricia knew that they had to involve doctors and hospitals in the process. Pharmacies required detailed instructions and the reasons for prescriptions, hospitals were interested in scientific awareness of medical representatives, and private clinics needs samples to make sure that they are quality.
It is important to meet these requirements to make sure that all the mentioned medical representatives are going to inform patients about their products. The strategy is successful and may lead to the desired goal, to become a customer-focused organization.
An analysis of the key industry fundamentals. What are the key variables for the industry historically and what is your assessment of these for current year under study?
The industry fundamentals from the historical perspective should be considered in logical and chronological manner. Beginning with the second part of the 20th century, international attitude to breastfeeding had changed. After it was proved that breastmilk was full of nutrients and immunities more scientific research was conducted in the industry. It was stated that breastfeeding “was beneficial to mothers in the form of weight loss, reduced risk of ovarian and breast cancers, and healthy spacing of pregnancy” (Martinez and Sha 2).
The results of this research activated the supporters of breastfeeding who accused IMF formula producers in too aggressive promotion of their products. The companies were prohibited to encourage consumers to choose IMF formulae instead of breastfeeding in 1981. The certification of baby friendly polices implied the intervention of the ideas of breastfeeding in the hospitals. Moreover, now IMF formulae companies are forbidden to advertise and promote their products in the relation to children under 1 year old. It is significant to understand that in case women are unable to breastfeed, they are going to choose one of the ready-to-feed formulae.
Mothers are reluctant to shift from one formula to another once the choice is made. Mothers usually ask nurses in the hospitals, pharmacists, and doctors which brands they prefer more. To limit the advertising to minimum, the rotation of the ready-to-feed formula supply is observed. I am sure that the strategy chosen by UNICEF and WHO, as well as the one the hospitals support, is correct, as mother should be encouraged to breastfeeding.
Works Cited
Martinez F. Asis and Rachel Sha. “Nutricia Middle East: Measuring sales force effectiveness.” Harvard Business School. 2006. Print.