Marketing Mix of Blackmores in Australia Local Market Paper Example

Paper Type:  Case study
Pages:  4
Wordcount:  968 Words
Date:  2022-08-23

Blackmores being the leading Australian natural drug company employs a variety of marketing mix to win its customers and improve its sales. The marketing mix is described as a combination of various factors that the company control in order to influence consumers purchase and loyalty in the market (Blackmores., 2015). The company employs a variety of factors in the market to ensure that it controls market share. In this, it is like taking advantage over other companies to sell its products in the market. Blackmores has not differentiated its product's much from others but still enjoys a huge market share in a natural health center in Australia. This is as a result of two main factors, which are, securing patent and growth strategy as discussed in this section of the paper.

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Blackmore does not produce many different products from others but rather ensures that its products are protected using intellectual property laws and strategies. The main reason for this is to prevent other firms in the industry from producing a similar product (Blackmores., 2015). It partners with almost five universities to promote its inventions and then protect from being ventured by other companies. The trick is very effective in creating a monopoly where Blackmores is the only company operating in the market. The patent is essential in closing other companies from producing a product with similar descriptions as the one company produces. The level of a patent which the company applies is key to its operations due to the fact that it does not produce totally different products or services from its producers. Through this strategy, it ensures that buyers have no option but to buy company product.

The company is also keen to ensure that it registers growth through acquisition and merger as it strives to serve the market. The growth puts it at a better position to produce a huge variety of products at a cheaper production cost. The main aim for this is to ensure that the company serves a relatively huge market which increases its selling power (Blackmores, 2013). Through expansion, it also ventures in a variety of services which includes weight loss, tablet manufacturing among others. This has given it a variety of advantages where it creates a pool of possible sales and profits and uses it to attract more customers. The strategy of expanding also make consumers believe that Blackmores produces quality vitamin products and drugs as compared to other companies making it attract more customers which eventually increases its sales.


Macro-environment is factors which influence business from external and business has no control over them. Blackmores being a natural health company is likely to face a number of political, economic, legal, technological, environmental, and legal factors that might affect the business positively or negatively (Wendt, 2015). This part of the paper is responsible to analyze the macro business environment using PESTEL. PESTEL provides a framework which helps in grouping business external factors Political, Economic, Social, Technological, Environment, and Legal.


Political factors affect the health industry in a variety of ways in China, price, product and people's issues are regulated by the government (Yu, 2015). China also has several ministries controlling health sector making it difficult to understand which ministry should control what in the industry. The main reason or mandate of all of them is to ensure safety and quality of the medicinal drugs and services being provided to the public.


This is another factor which causes issues in the Chinese health industry. Its GDP has a steady rise of 8% annually which does not reflect the services offered in the health sector. Due to an imbalance in the economy between urban and rural area, there is difficulty in determining the best health services in rural or urban (Yu, 2015). This makes it difficult for the company to determine the best health structure to apply. However, per capita income is favorable and improves purchasing power.

Social factors

China has a huge population of more than one billion people making it favorable to increase purchase (Yang, 2015). The population in Australia makes it easy to sell, that is, a small percentage of buyers' results to a huge amount of sales. This also means that there is a huge number of people that need medical services.

Technological Factors

Technology is used in China to enhance sales and production. E-commerce is used in China to make companies advertise and sell their products directly to customers. This forces the company to invest so as to crash the competition (Wendt, 2015). Then medical services also need various technical tools which increases company expenditure. The company expenditure is increased as business strives to employ personnel to operate the machine. Blackmores must invest in relevant e-commerce and health machines.


China has got a green environment rich in vegetation which makes them do traditional herbs more so in rural areas (Yu, 2015). This makes it difficult to sell products in rural areas of China.

Legal Factors

China has a well-defined legal framework that helps to control the safety and health of the public. The safety guidelines which must be adhered to in order to get licensed and operate in the industry (Yu, 2015). Patent and copyright laws in China are not properly implemented paving ways for people to outsource or carryout indoor production of products with intellectual property protection.


Blackmores. (2013, June 20). Results for the Year ended 30 June 2013 Blackmores Limited. Building Platforms for Growth, pp. 1-16.

Blackmores. (2015). Proposed China-Australia Free Trade Agreement. Jubilee Avenue Warriewood NSW 2102, 1-2.


Yang, L. (2015). Market Entry Strategy in Chinese Market. Case Company-Fantastic Oy, 1-50.

Yu, H. (2015). Evaluation of the Market Strategies of Chinese Medical Service. International Business Research, 225-236.

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Marketing Mix of Blackmores in Australia Local Market Paper Example. (2022, Aug 23). Retrieved from

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