Hendry Kurniawan
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Hendry Kurniawan_________________________ ________________
Student Date
Approved by:
Dr. rer. nat. Linus Pasasa
_____________________________________ __________________
Thesis Advisor Date
Parhimpunan Simatupang, MBA
_______________________________________ __________________
Thesis Co-Advisor Date
Prof Eric J. Nasution, MBA, MA, PhD
______________________________________ _________________
Dean Date
Hendry Kurniawan
ABSTRACT
By
Hendry Kurniawan
SWISS GERMAN UNIVERISITY Bumi Serpong Damai
The changing of women lifestyle which put important to beauty skin maintaining and growing middle class population in Indonesia is giving space to the health care market to grow. PT. XYZ as a pharmaceutical company which intends to have growth strategy need to have new products as new portfolio of their business pillars. By using SWOT analysis, QSPM (Quantitative Strategic Planning Method) as a tool to formulate a new product launch strategy of the new vitamin mineral supplement product in the future, was found that PT. XYZ have 3 alternative strategies to support the product launch strategy after inout and matching stage with Competitive Profile Matrix, SPACE, BCG, IE, Grand Strategy Matrix support PT. XYZ to do Product and Market Development as the objective of New Product Launch Strategy. In QSPM suggest PT. XYZ to decide first to launch with new technology, import new product, delayed entrant by observing competitors, as in order, the total attractive scores are 6.24>5.71>4.91.
Hence, the most valuable New Product Launch Strategy of women‟s vitamin mineral supplement for PT. XYZ is first to launch with new technology as the output of this research by obtaining the highest total score in QSPM compared to two other alternative new product launch strategies.
Keywords: New Product Launch Strategy (NPLS), SWOT Analysis, Quantitative Strategic Planning Method (QSPM), Pharmaceutical Company
Hendry Kurniawan .
©Copyright 2014 By Hendry Kurniawan
All Right Reserved
Hendry Kurniawan
DEDICATION
I dedicate this thesis to my LORD and Savior, Jesus Christ for the blessing, strengthening me until I can accomplish my thesis works.
For my beloved family: my papa, mama and mei mei with all the enormous support and spirit me always.
For all SGU family and all readers, hope this research will be insipiring to see how we can formulate the best strategy in running a business.
Hendry Kurniawan
ACKNOWLEDGMENTS
Foremost, I would like to express my sincere gratitude to my main advisor Dr.
rer. nat. Linus Pasasa and my co-advisor Parhimpunan Simatupang, MBA for the continuous support and guidance helped me in this thesis work.
Also I would like to thank the rest of my professor committee: Mr. Ruben (FA), Mr. Alex (Corporate Finance), Mr. Donny (Business Law), Mr. Raj (HR &
Organisational Bahavior), Mr. Didier (BA), Mr. Erwin (International Business &
Risk Management), Prof. Jaeger (MC & Strategic Management), Ms. Ida (Auditing), Mr. Gunawan (e-Commerce), Mr. Ford (MIS). I could not have imagined having a better lecturer for my MBA/MM study.
My sincere thanks also goes to SGU‟s Rectorate and all MBA Management team, Mr. Parhimpunan, Ms. Lia, Ms. Maria (library) and Ms. Dwi who assist our MBA study program in this last 2 years.
Finally, I want to thank my fellow in MBA Batch 20 for cheering up the study process: Dueno, Agung, Peters, Pahlawan, Sulaiha, Tommy, Rizky, Nunung, Stephanie, Yopie, Deo, Miftah, Robi, and last but not least Janvier who unfortunately postponed the study. It seems for a while since our first ever acquaintance in mid 2010. Hope we still keep in touch and do other journeys in next occasion.
May GOD bless you all abundantly!
Hendry Kurniawan
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
ACKNOWLEDGMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 10
LIST OF FIGURES ... 10
LIST OF TABLES ... 11
LIST OF APPENDICES ... 12
CHAPTER 1 INTRODUCTION ... 13
1.1. Background ... 13
1.1.1. Global Pharmaceutical Business ... 13
1.1.2. National Pharmaceutical Demand Overview ... 17
1.1.3. Vitamin and Multimineral Supplement Market Overview ... 21
1.1.4. OTC Market Trend and Success Factors ... 23
1.1.5. PT. XYZ Company Profile ... 25
1.2. Research Problem and Purpose ... 27
1.3. Research Question ... 27
1.4. The Significance of the Research ... 28
1.5. Thesis Limitation ... 28
CHAPTER 2 LITERATURE REVIEW ... 29
2.1. Formulating a Business Development Strategy ... 29
2.2. Innovation and New Product Strategy ... 31
2.3. Innovation as a Customer-Driven Process ... 31
2.4. Customer Relationship Management (CRM) ... 32
2.4.1. Customer Satisfaction ... 34
Hendry Kurniawan
2.4.2. Customer Value ... 34
2.5. QSPM (Quantitative Strategic Planning Matrix) ... 34
2.6. SPACE Matrix (Strategic Position and Action Evaluation) ... 35
2.7. Boston Consulting Group (BCG) Matrix... 36
2.8. Internal External (IE) Matrix ... 37
2.9. Grand Strategy Matrix ... 38
2.10. Past Research ... 40
CHAPTER 3 METHODOLOGY ... 42
3.1. Framework Research Design ... 42
3.2. Data Analysis ... 43
3.2.1. Type and Source Data ... 43
3.2.2. Data Collection Method ... 43
3.2.3. SWOT Matrix ... 44
3.2.3.1. IFE (Internal Factor Evaluation) ... 44
3.2.3.2. EFE (External Factor Evaluation) ... 45
3.2.4. Strategic Position and Action Evaluation (SPACE) Matrix ... 46
3.2.5. Boston Consulting Group (BCG) Matrix ... 46
3.2.6. Internal - External (IE) Matrix ... 47
3.3. Hypothesis ... 48
CHAPTER 4 ANALYSIS AND DISCUSSION ... 51
4.1. Data Analyses ... 51
4.2. Input New Product Launch Strategy Formulation Stage ... 51
4.2.1. Competitive Profile Matrix (CPM) ... 54
4.2.3. Internal Factor Evaluation (IFE) ... 57
4.3. Matching New Product Launch Strategy Formulation Stage ... 58
4.3.1. SWOT Matrix ... 58
4.3.2. SPACE Matrix ... 60
4.3.3. BCG Matrix ... 65
Hendry Kurniawan
4.3.5. Grand Strategy Matrix ... 69
4.4. Validity and Reliability ... 70
4.5. New Product Launch Strategy ... 72
CHAPTER 5 CONCLUSION AND RECOMMENDATION ... 74
5.1. Conclusion of Study ... 74
5.2. Recommendation ... 79
REFERENCES ... 80
GLOSSARY ... 83
Hendry Kurniawan
LIST OF FIGURES
Page Figure 1.1. Global & local market comparison of pharmaceutical medicine
Market vs OTC market ………15
Figure 1.2. Global pharma medicines market and OTC market share per Regions……… 16
Figure 1.3. Survey Result of US Consumers that Plan to Spend More in Pharmacy and Cutting Spending with Others Segments ……….17
Figure 1.4. National Health Expenditure History ………. 19
Figure 1.5. Health Expenditure of GDP 2013 ………. 20
Figure 1.6. Indonesia Consumer Health Size and Growth Graph ………....21
Figure 1.7. Business Architecture of Pharmaceutical Industries ……….24
Figure 1.8. CSFs for Selling to Pharmacies ……….25
Figure 1.9. data of OTC sales performance in Indonesia by top 5 pharma- Ceutical companies and PT. XYZ ……….. 26
Figure 2.1. Strategy Development Process ……….30
Figure 2.2. New product evaluation process ………...32
Figure 2.3. Customer value advantage scheme ……….. 33
Figure 2.4. Trim & Pan Research Model in developing New Product Launch (NPLS) for a Pharmaceutical Company ………. 41
Figure 3.1. The strategy-formulation analytical framework ………. 42
Figure 3.2. Conceptual research QSPM framework and new product launch Developing strategy ………. 43
Figure 3.3. SWOT Matrix ………. 44
Figure 3.4. SPACE Matrix ……… 46
Figure 3.5. BCG Matrix ………. .. 47
Figure 3.6. Internal-External Matrix ………. 47
Figure 3.7. Grand strategy matrix ………. 48
Figure 4.1. SWOT Analysis of Product Competitors……… 53
Figure 4.2. SPACE Matrix ……… 64
Figure 4.3. BCG Matrix ……….65
Figure 4.4. IE Matrix ………..67
Figure 4.5. Grand Strategy Matrix ……… 69
Hendry Kurniawan
LIST OF TABLES
Page Table 1.1. Growth Domestic Product as Economic Indicator in South East
Asia Countries ………. 18
Table 1.2. Data of Health Expenditure in Indonesia in 2010 ……….. 20
Table 3.1. Example of Internal Factor AAnalysis Calculation ……….. 45
Table 3.2. Example of External Factor Analysis Calculation ……… 45
Table 4.1. Competitive Profile Matrix ………55
Table 4.2. EFE Matrix ………56
Table 4.3. IFE Matrix ……….... 58
Table 4.4. SWOT Matrix ………..… 59
Table 4.5. SWOT Matrix of Choosen Alternative Strategies ……….. 72
Hendry Kurniawan
LIST OF APPENDICES
Page
Appendix 1. Pearson Table ... 84 Appendix 2. Pre-Test Result ... 86 Appendix 3. Post-Test Result………. 88
Hendry Kurniawan
CHAPTER 1 INTRODUCTION
1.1. Background
1.1.1. Global Pharmaceutical Business
Based on IMS Asia-Pacific Insights (2012a), the juxtaposition of mature pharmaceutical markets such as Australia, Japan, South Korea, and Singapore with some of the world‟s most dynamic pharmerging markets in China, India, and Indonesia underscores the need for tailored strategies across geographies and reinforces the fact that there simply are no “one-size fits all” solutions. The rate of change and degree of impact from global, regional, and local developments are, quite frankly, infinitely variable (Anonymous, 2012a). In informal discussion with marketers from different industrial background, MarkPlus caught the high potential demand in Indonesia which more than half of the total population has wide daily expenditure and there is no “one-size fits all” solutions in performing such research to capture all necessary recommendation and need further the right way of improvement tools (Taufik, 2012)
Despite the global financial crisis in past 2008, sales of Over-The-Counter (OTC) product have continued to rise in world wide market, spurred by a swathe of recent innovation, greater promotion of self-medication and increased access through expanding channels of distribution. The facts are telling also the growth in the sales of OTCs surged significantly ahead of growth in the sales of prescription medicines recently (Tisman, 2010).
The same picture also captured by IMS Health that Indonesia pharmaceutical market growth casted by the OTC market segments which CAGR (Compounded Annual Growth Rate) were above the growth of ethical / prescription medicine
