NIGERIAN HOECHST LIMITED

 
 
 
 
NIGERIAN HOECHST LIMITED - CASE 15: INTERNATIONAL MARKETING ANALYSIS

Introduction: Is Hoechst Ready for International Marketing?

The time of this case is the early-1980s. Hoechst A.G. is a well established chemical and pharmaceutical manufacturer located in West Germany (Federal Republic of Germany prior to German unification). This paper is concerned primarily with the Pharmaceutical Division of the company. With respect to this case, it is somewhat off the point to question the readiness of Hoechst A.G. for international marketing, because the company, as of 1981:

Derived 65 percent of total revenues from sales outside of West Germany,

A roughly comparable of the total revenues of the Pharmaceutical Division were derived from sales outside of West Germany, and

The company operated production facilities for both chemicals and pharmaceuticals in countries other than West Germany

Obviously, therefore, Hoechst A.G. is ready for international marketing. More relevant issues are (a) which international market should be the company's next target and (b) which division (Chemicals or Pharmaceuticals) should be involved in such an expansion in international marketing. These issues also are moot in relation to this case, however, because the case data related only to (a) Hoechst operations in Nigeria and (b) operations of the Pharmaceutical Division in Nigeria. Hoechst has been in Nigeria since the 1950s as a marketer of chemical products, and the company has had produc


     
 
 
 
    

 

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on in Nigeria may make it more difficult to obtain certifications for new pharmaceutical products Market Selection The question at this point is to evaluate markets in order to select the country market where the company will introduce Product H. As the case information already indicates that Nigeria is where Product H will be introduced, the selection of the specific market is moot. The more relevant issues concern the marketing strategy and the marketing mix that will be applied in the introduction of Product H. Nigerian Hoechst successfully introduced Daga, a new (to the Nigerian market) analgesic. The market size of Nigeria in relation to demand for analgesics, together with the project grown of demand for analgesics, indicates that Nigerian Hoechst could introduce Product H with great success for the product. The introduction of Product H in the Nigerian market, however, would lead to a modification of some elements of the SWOT analysis. As an example, Product H would compete in the same market segment with Daga. There is a threat therefore, that some of the success of Product H could be at the expense of Daga, as opposed to being at the expense of the analgesic products of competitors. As the formulation of

Category: Economics - N
 
 
 
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