Dendrite International focuses on selling computer services to the pharmaceutical sector. Dendrite International sells sales and customer management automation software to companies in the pharmaceutical industry (Bell and Cespedes, 1995). These companies deal with a tremendous amount of data, from maintaining physician and nurse practitioner data to drug management and consumer behavior analytics (Ekk-Cierniakowski, 2021). Using automated systems to cover these needs is a viable strategy.
Dendrite International was founded in 1985, and a few years later, the main headquarters moved from Sydney to the United States. The move was a heavy burden for the small company, as it involved learning a new market, finding new customers, and changing the cultural approach to brand promotion. Dendrite International handled this perfectly, developing a unique professional solution for pharma companies at the time. In just five years in the U.S. market, Dendrite International showed a 9200% increase in sales, and the analyst department predicted that this figure was only going to grow. The company was perfectly able to win a niche in the U.S. market, but it did not stop there; Dendrite International began moving the product to foreign markets in Europe, adapting its product to the local rules, language, and culture. In other words, Dendrite International uses its universal product for different pharmaceutical companies, modifying it and offering customized solutions for customers in the b2b industry.
The value proposition of Dendrite International, based on the case study, is aimed at optimizing the operational processes of pharmaceutical companies through automation and integration. The use of automation is known to significantly increase business profitability and allow companies to run their businesses more efficiently (Uzialko, 2022). Dendrite International is well aware of this, so their sales agents involve as many stakeholders as possible, including line employees, in the presentation process to show them the competitive advantages of the product being sold. As noted, pharmaceutical data is faced with the need to manage vast amounts of data, especially in the era of big data (Ekk-Cierniakowski, 2021). From this perspective, Dendrite International covers this challenge by offering automated software capable of many operational tasks, including customer and lead management, data analytics, cross-departmental communication, and monitoring financial dynamics (Bell, M. and Cespedes, 1995). For clients, these are the fundamental functions whose competent execution ensures companies’ market success. In addition, the company offers two levels of its product, basic and advanced, which offers customers even more options for managing corporate metrics.
The basis of business sustainability is determined by the presence of a sovereign internal environment. At Dendrite International, the internal environment is built according to the principle of a vertical hierarchy. Demonstrated commercial success and customer commitment to the brand show that the internal environment, implemented through the cohesion of employees, adherence to a strategic mission, and motivation, is built successfully. The company has established working relationships so that each employee knows exactly what their responsibilities are and is a professional at it. The successful conquest of a niche in the American, European, and Japanese markets also shows that the marketing campaigns at Dendrite International are implemented competently. Among the strengths of the company’s internal environment is also a positive outlook on change (Rialti et al., 2018). The CEO recognizes that the market industry in which Dendrite International is present is dynamic, so the business must be able to adapt to change and be cutting-edge compared to competitors. The company has demonstrated sensitivity to its customers, responding clearly to their interests, including language adaptation in kanji. No company, however, is devoid of weaknesses, especially in a controlled area. The case study did not show any aspects related to human resource management and the conduct of fiscal policy, so it was decided to use additional material. Among the weaknesses of the internal environment, former employees rated low compensation, lack of real career advancement, and professional stress (Working at Dendrite International, 2019). There were also claims of gender discrimination against women in the workplace.
The most critical for marketing at Dendrite International are the ability to adapt to change and sensitivity to customer requests combined with a disregard for professional ethics. The listed sides show the company, on the one hand, as progressive and technological, but on the other hand, as having severe internal culture problems. It can be assumed that HR management is associated with high turnover, so Dendrite International fails to build a competitive corporate environment.
It should be said that the company’s external environment is highly developed, as there are a considerable number of competitors and the market as a whole is constantly evolving. In the first years of the corporate journey, competitors could not provide an effective alternative to the product of Dendrite International, but after time and with general technological development, there are more such companies. There is a myriad of opportunities that the company could use to continue to grow. This includes using artificial intelligence and the development of technology products offered to customers. Since pharmaceutical companies must use big data, Dendrite International could offer tier systems to differentiate access to sensitive material (Reynolds, 2019). In addition, the standardization of the pharmaceutical industry encouraged by national governments generates the need for adequate record-keeping, which naturally increases the number of potential customers. Finally, the company could use new marketing systems to attract more consumers and differentiate a segmented market.
However, Dendrite International’s external environment is also associated with threats affecting the business. It is possible that the company could be subjected to large-scale cyberattacks that would affect brand reputation; as a consequence, customers could walk away from Dendrite International (Marshall, 2021). In addition, ever-changing legal regulations could significantly limit Dendrite International’s ability to operate in foreign markets, leading to the need for rapid code changes. The company’s analysis showed no commitment to diversity, inclusion, and environmental responsibility policies, which could pose an additional threat to Dendrite International’s reputation.
It must be said that stimulating further product development and enhanced marketing are paramount opportunities for the firm. On the contrary, reforms of the federal government and sanctions due to the worsening geopolitical situation have a significant impact on the company’s commercial success. Dendrite International must find an appropriate balance between opportunities and risk coverage to develop effectively going forward.
The central market segment that Dendrite International focuses on is defined as pharmaceutical companies. The versatility of the company’s product allows Dendrite International to market its services to different categories of this segment, from small business companies to multinational conglomerates; since Dendrite International is attentive to consumer demands and interests and has already demonstrated a commitment to adaptations, these segments can be successfully covered by the company. In addition, Dendrite International’s segmentation analysis highlights different geographic patterns, as the firm operates not only in the U.S. market but also outside of it. According to the consolidated financial statements (Figure 1), the company earns the most revenue from U.S. customers.
Pharmaceutical companies often reach out directly to physicians and clinicians. Basically, their interests are based on attracting talent from the sector to research and promote their products (Fresques, 2019). Pharma companies have to deal with a considerable amount of records and manage clients intelligently, and Dendrite International addresses this issue. For this reason, Dendrite International remains committed to this segment, as it sees its commercial benefit in providing services and after-sales customer service, something that competitor companies did not offer at the beginning of Dendrite International’s corporate journey.
Dendrite International’s positioning analysis is based on a synthesis of current financial performance and customer satisfaction. Dendrite International has had an excellent financial performance; this is evidenced by both the estimate of overall profitability from 1991 to 1992 and the information reflected in Figure 1. The increase in profitability may indicate that the number of loyal brand customers is increasing. Product differentiation allows to expansion the base of new customers and to retain current customers, which positively affects the brand’s positioning in the industry market. Studying stakeholder satisfaction creates a two-way impression: on the one hand, former employees of the firm were not always optimistic about their experiences at the firm, which creates conditions for Dendrite International’s reputation to decline and competitiveness to decline (Working at Dendrite International, 2019). On the other hand, many reviews were devoted to positive experiences, indicating the apparent advantages of the brand as a place to work. No information was found about the investment appeal of the brand, and additional research revealed that Cegedim entirely bought out dendrite International in 2007 (CEGEDIM, 2007). This merger demonstrates the market success Dendrite International was able to achieve. However, because of the merger, Dendrite International ceased to exist as a separate brand as of 2007, so there is no longer any official data, including the company’s website.
Dendrite International’s marketing strategy has been highly successful, as it has allowed it to increase profits and grow its customer base each year. Given the company’s current status, referring to the retained versions of the website to determine sales strategies was appropriate. Referencing Figure 2 shows that Dendrite International has continually invested in website design and kept the information published up-to-date so that investors and customers can find the valuable section to them. From this point of view, marketing internally reflected the intrinsic value of the brand, namely the stereotype of active change.
Meanwhile, the company perfectly positions its product by presenting differential features to customers. This allows to divide customers into segments and more conveniently customize the advertising and commercial offers for each of them (Carmicheal, 2020). From a marketing point of view, this solution increases customer loyalty because it creates the image of a responsible, attentive brand in their perception. Thus, it can be postulated that a company’s marketing strategy helps it provide primary business functions and is consistent with the company’s internal values.
The marketing strategy allows the company to build up competitive potential. The increase in industry market share is evidence of Dendrite International’s advanced qualities as a brand and the excellent loyalty of current and new customers to the company’s products. Of the 200,000 global companies in the pharmaceutics industry, most were located where Dendrite International sells its services (Bell and Cespedes, 1995). The company has a favorable opportunity to collaborate with these companies, which increases the predictions of capital appreciation. In addition, the agenda expressed in the company’s official slogans and advertisements (Figure 2) demonstrates that the company is in constant development and ready for new opportunities; in terms of the ever-changing political environment, this adaptation is a viable marketing strategy to create an image of a confident company.
Turning to Fig. 3 gives an idea of how widespread Dendrite International’s share of the global industry market is. It can be seen that of the total number of automated systems, Dendrite International supplied more than 22.3% of the U.S. market, a reliable indicator of the effectiveness of a marketing system that encouraged the engagement of new customers and the retention of current customers. However, the marketing strategy was still adequate for other markets: Dendrite International’s shares in Western Europe and Japan were 43.4% and 83.5%, respectively. Consequently, the marketing worked well for Dendrite International, as reflected not only in the increase in annual profits but also in its confident positioning in the niche.
The marketing strategy being developed aims to expand the industry market share and increase the company’s capital. The proposal’s primary goal is to attract new customers and get more profit from the existing ones. As Dendrite International’s marketing director, I would prefer to use advanced content marketing. Bell and Cespedes (1995) have already told me that the company is excellent at adapting to customer interests and often offers new solutions in advance in response to evolving problems. Content marketing in a more technologically advanced digital field will allow a close examination of customer behavior in corporate platforms and on a company’s Website to turn them into leads (Woschnick, 2021). In particular, one specific area of Dendrite International’s existing capabilities is the evaluation of KPI metrics for detecting user behavior on the Web site. If it is found that users visit specific sections of the site more often than others, it is on those sections that additional features can be placed to set up a meeting with Dendrite International representatives. Content marketing, however, offers opportunities related to training as well. With existing customers, Dendrite International can arrange training programs for new employees to introduce them to the system and tailor the functionality to specific tasks. This is a paid feature that will help increase the amount of revenue generated from current customers and create stronger relationships with them; meanwhile, this solution will allow you to learn more about corporate patterns and interests in order to customize commercial offers in the future.
I would use an expansion marketing model to add several new market segments in addition to those already in place. Dendrite International is performing well for pharmaceutical companies and has consistently recorded revenue and audience growth; therefore, this marketing model seems to be working effectively. These results reflect the high performance of current operational marketing. However, competitor companies are constantly evolving, which means Dendrite International’s viability in the industry marketplace is becoming more vulnerable. It is for this reason that, as a director, I would prefer to expand existing business opportunities by adding new segments in the industry market. Focusing on companies that provide insurance to customers is a great goal for the marketing strategy being developed. Insurance companies use huge amounts of digital data and are forced to constantly process it for analytical purposes (Pathnak, 2021). This works in much the same way as it does for pharmaceutical companies, but the type and purpose of data use change slightly. The development of new software and its marketing positioning as a perfect product, built with all the interests of potential customers in mind, would be prudent to increase market share.
Reference List
Bell, M. and Cespedes, F. V. (1995) Dendrite International. Web.
Carmicheal, K. (2020) Audience targeting: what it is and why you need it. Web.
CEGEDIM (2007) French Cegedim to buy Dendrite International, Inc. for $751 million. Web.
Dendrite International (2000) Web.
Ekk-Cierniakowski, P. (2021) How to use big data and analytics at pharmaceutical companies? Web.
Fresques, H. (2019) Doctors prescribe more of a drug if they receive money from a pharma company tied to it. Web.
Marshall, J. (2021) Why investors should care about cybersecurity. Web.
Pathnak, R. (2021) 7 uses of big data in the insurance industry. Web.
Reynolds, M. (2019) How to define access levels in access control systems. Web.
Rialti, R., Marzi, G., Silic, M. and Ciappei, C. (2018) ‘Ambidextrous organization and agility in big data era: the role of business process management systems,’ Business Process Management Journal, 24(5), pp. 1091-1109.
Uzialko, A. (2022) Workplace automation is everywhere, and it’s not just about robots. Web.
WayBack Machine (2018) Web.
Working at Dendrite International: 29 reviews (2019) Web.
Woschnick, V. (2021) What are the top 10 most effective marketing strategies? Web.