International Expansion of AstraZeneca in Kenya

[Name of Student]
[Submission Date]
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Table of Contents

Introduction......................................................................................................................................3

Scope................................................................................................................................................3

Rationale of Organisation................................................................................................................4

Challenges for International Marketing and Expansion..................................................................5

Key Market Criteria and Selection Process for International Market Entry...................................5

Different Market Entry Strategies and Advantages and Disadvantages..........................................6

Implemented Market Entry Strategy for International Market Expansion......................................8

Marketing Strategies........................................................................................................................9

Recommendations............................................................................................................................9

Conclusion.....................................................................................................................................10

References......................................................................................................................................11
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Chosen Company: AstraZeneca

Introduction
AstraZeneca is a UK based multinational patient-focused and science-led pharmaceutical
company. AstraZeneca is constantly in a tireless mission to seek potential in the area of science
and what they can further do. Their function is mainly focused on discovery of production and
commercialising a range of prescribed drugs. AstraZeneca manufacture products which are
related to therapy like renal respiratory, cardiovascular and metabolic disease, autoimmune,
cancer, neurological diseases and infection (Kogej et al., 2013). The portfolio of AstraZeneca
products includes biologics, prescribed pharmaceuticals and vaccines. They have criteria of
selling their products through wholly-owned local marketing companies, local representatives of
the area and the distributors. In this report business strategies in the international context will be
developed in a detailed manner. The international marketing strategy report will target the Kenya
country in Africa. The scope and key concepts of international marketing will be discussed with
the rationale for the selected organisation for launch. Furthermore, opportunities and challenges
for AstraZeneca will be evaluated in the African countries. Key criteria and selection process,
marketing entry strategies, marketing evaluation criteria and entry strategies will be discussed as
well.

Scope
The scope of AstraZeneca is to bring change in the lives of people of Kenya by
expanding it and implementing effective marketing strategies. They will target people who are
suffering with chronic diseases and need better care. Mission of AstraZeneca is to address major
healthcare challenges in Kenya to support mankind and to uncover various roots of the most
common disease and treating them accordingly (Morgan et al., 2018). They are mainly inspired
by the things which are impossible and stimulates the creativity of organisation by continuing to
maintain the cultural values and implementing such ideas and innovations which can make
difference in the lives of people (Zelenetz et al. 2019).
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Rationale of Organisation
The purpose of the expansion and international marketing strategies is to extend
boundaries and bring a life-changing medicinal innovation in Kenya. AstraZeneca’s view is to
help patients with their scientific researchers and provide them with best healthcare options.
They are motivated to heal people and push Kenya market out of the comfort zone. Every work
they do is underpinned with utmost dedication and people of Kenya will recognise them by
greatest contribution in medicinal world (Pottegård et al., 2021). They believe in implementing
diverse ideas and hiring talented team to provide best products by taking the route in Kenyan
market through FDI investment.

Opportunities for International Marketing and Expansion

Domestic Market
The manufacturers of Kenya hold about 30% of the current pharmaceutical market which
is equal to $1 billion, according to the plan of action report of EAC Regional Pharmaceutics
(2017-2027) which clarifies that if a company wants to enter Kenyan market they can easily
cater the remaining 70%. This is great opportunity for AstraZeneca to invest in Kenya and pave
its way in the market.

Therapeutic Area
In Kenya there is a huge demand of cardiovascular and immunological therapies which is
not included in the domestic market easily (Oldenburg et al., 2012). AstraZeneca can set up its
manufacturing plants to fulfill this demand in Kenya and help the domestic market in the
production of immunological and cardiovascular therapies.

Increase in Digital and Mobile Access

Kenya has a fastest rate of development in the digital area and broadband connections
between the years of 2008 to 2015 (Knoll and Wonodi, 2021). This growing rate will help
AstraZeneca to bring awareness among the customers and to distribute the products in different
hospitals and pharmaceutics. The mobile data traffic is expected to increase as well in Kenya.
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Challenges for International Marketing and Expansion

Healthcare Marketing Regulations 

Pharmaceutical companies in Kenya undergo many healthcare marketing regulations by
approvals and testing which can be exhausting. Such rules can take time for AstraZeneca to pass
regulations and bring its operations in Kenya. The way of marketing the products have to be
preapproved as well. It might be challenging for AstraZeneca as they have to promote their
products to attract the customers (Mahase, 2021). AstraZeneca has to fulfil all the rules and
regulations of Kenya to expand its market and provide aid to the healthcare sector.

Vulnerable Rate of Growth

Kenya has unstable security and governmental challenges which make the country
vulnerable for AstraZeneca to expand their market and face the difficulties of microeconomics.
The vulnerable rate of growth may be risky for AstraZeneca which should be properly
understood and evaluated.

Key Market Criteria and Selection Process for International Market Entry
For AstraZeneca to expand in the Kenyan Market key criteria and selection process must
be evaluated. The selection process for the market expansion to Kenya will have following steps:

Analysis of Environment and Market

The first step to analyse key criteria and selection process the local market AstraZeneca
must ensure the environment of Kenya for the international expansion. The market environment
of AstraZeneca needs cardiovascular disease medicines which can be successful for international
expansion.

Competitor Analysis
It is essential to identify major competitors for key criteria and selection process to
evaluate manufacturing information before the market expansion. in Kenya main pharmaceutical
companies are Ferring, GSK, Novartis and Roche which are operating successfully in the
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country. The products, price structure, strategies, financial position and networks of these
competitors should be evaluated at first to assess potential in the market.

Distribution channels
AstraZeneca should gain complete insights regarding the supply chain of the company
products. The key company should clarify the offered products and the price they will be
charging. The sales structure of Kenya must be analysed by AstraZeneca in order to select the
type of distribution channels. the expansion of the international market will be determined by the
distribution channels. The products of AstraZeneca will be distributed in various hospitals,
clinics and pharmacies.

Demand Analysis
AstraZeneca must perform a thorough research of the Kenyan market for the international
expansion. the source and demands of the products must be analysed to start operations
accordingly. The launching criteria and what demands of the market will be fulfilled is expected
from the company beforehand. AstraZeneca has chosen Kenyan market which is suitable for the
international expansion as the demand of the region is the products of cardiovascular disease and
immunology mainly.

Different Market Entry Strategies and Advantages and Disadvantages

Company ownership
If a company wants to sell products in a foreign market without taking on the added
responsibility of shipping and distribution, it may choose to acquire an existing company there.
Company ownership is more expensive than other methods of entering the market, but it may
provide a higher return on investment (Torjesen, 2021).
Example: If 100 shares of stock have been issued by the company and owner possess 30, then
they have 30 percent of the company.
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Advantages
The ability to reach a wider customer it helps share costs, expand the customer base,
strengthen the brand, and expand the workforce are all positive outcomes.

Disadvantages
Challenges include learning a new language, adapting to new cultural norms, and
navigating new logistical hurdles.

Franchising
A franchise is a business strategy in which a person or group pays the parent firm for the
right to operate the franchise's subsidiaries. Significant brand awareness is generally required for
franchising since customers in the target market need to be aware of the product or service and
want to buy it. Established brand franchises provide a profitable indirect management structure
for many businesses (Adjobimey et al., 2022).
Example: Fast food chain like Dominos and McDonald’s operate in India through the Frachising
criteria.

Advantages

As the licencing or franchising partner is usually a local enterprise the political risk is
mitigated and gaining access to international markets at little cost is also an advantage.

Disadvantages
It is possible that franchisees may use their newfound expertise to start competing with
the company. The inefficiency of the company's franchising partners poses a disadvantage to the
company's brand reputation and image in international markets (Tseng et al., 2021).

Joint ventures
Some businesses attempt to mitigate the dangers of entering the international market by
teaming up with others that are also interested in exporting (Al Ghanem et al., 2021). Since joint
ventures often operate as massive, autonomous organisations as opposed to the merger of two
smaller businesses, they have the potential to generate more money than individual corporations.
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Example: BMW and Toyota work together on projects related to hydrogen fuel cells and
lightweight materials.

Advantages
The political risks in this strategy is lesser because the local companies are already aware
and have information regarding local business environment.

Disadvantages
Since the two companies' cultures are distinct, a joint venture's internal culture is more
likely to be tense and cause friction.

Source: theintactone.com

Figure: Market Entry Strategies

Exporting
Exporting necessitates advertising of the manufactured goods in the target markets of
international market. Direct exporting is a practise in which businesses actively advertise their
manufactured goods on international markets without going via intermediaries (Al Ghanem et
al., 2021). Companies specialising in high-end items or with experience marketing
internationally often use this tactic.
Example: A country exporting service or product to another country in need.
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Advantages
Direct exporting may help businesses determine whether or not their goods will sell in
international markets before committing to more substantial expenditures abroad.

Disadvantages
Utilising this tactic comes at a significant price as the company is responsible for setting
everything up from start in the international market.

Implemented Market Entry Strategy for International Market Expansion

Foreign Direct Investment

Foreign direct investment (FDI) occurs when a firm based in one nation acquires control
of another company based in another one (Jones et al., 2021). Foreign companies play a vital role
in the day-to-day operations of the nation and AstraZeneca will adopt this market entry strategy
for international expansion in Kenya. Foreign direct investment (FDI) refers to making a long-
term commitment to and having a major impact on a foreign market (Mallapaty and Callaway,
2021). AstraZeneca might potentially benefit from FDI in the form of reduced production costs
and expanded access to markets. Investments from outside have the potential to boost Kenyan
economy by bringing in new tools and expertise. Foreign direct investment (FDI) is not without
its hazards for AstraZeneca and might prompt concerns about foreign influence in host nations.
Investing just in the shares of a foreign company is not the idea of AstraZeneca
international expansion what most companies mean when they use this term. Foreign direct
investment (FDI) is critical to international economic cooperation because it helps establish
stable ties between countries (Hussein et al., 2022). Foreign direct investment (FDI) will help
AstraZeneca to boosts the economy of Kenya by creating new positions in the manufacturing and
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service sectors and reducing the unemployment rate. Kenyan human capital and educational
opportunities may benefit from the workers acquired skills through the experience and education.
The diffusion of AstraZeneca into the local economy could made possible by the advent of new
and better technology and might increase the sector's efficiency and effectiveness.

Marketing Strategies
The marketing strategies utilised by word of mouth which has always been the backbone
of every successful marketing campaign. The ability to hear is crucial in the corporate world.
Customers are more inclined to refer the business if they consistently exceed their expectations.
Moreover, cause marketing will also be utilised where it is to increase awareness of both the
AstraZenaca and the underlying societal problem.

Figure: Word of Mouth Marketing Figure: Cause Marketing

Source: https://learn.g2.com/word-of-mouth-marketing Source: www.epromos.com

Recommendations
AstraZeneca should keep an eye on cultivating contacts with key decision-makers,
developing tendencies, and find new prospects with the help of foreign partners. Moreover, in
order to encourage innovation to aid the poor, certain nations have implemented incentive
programmes. AstraZeneca should work to develop alliances, reduced hurdles licencing
agreements, to entrance into new markets, and enhanced intellectual property rights are just some
of the benefits that may accrue to businesses by participation in such initiatives. Lastly, when
entering a new market, AstraZeneca must be proactive. Conduct some investigation to ensure the
whole team is on board with the long-term strategy.
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Conclusion
AstraZeneca is one of the largest pharmaceutical corporations in the world in 1999
(Semeraro et al., 2022). Research and development efforts after the corporate merger yielded a
plethora of new drugs. AstraZeneca mission for international expansion to Kenya is to develop
cutting-edge medications and innovative treatments for a wide range of illnesses.
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