Marketing of Roche Pharmaceutical Ltd Essay Example

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•Secondary source: We may collect our necessary information through the company’s brochures, leaflets, and papers, Internet etc.

Methodology of StudyThe study will be done on the basis of primary and secondary data collection from the Roche pharmaceuticals ltd. The study is mainly based on qualitative information extracted from various published reports, documents, and brochures of the company. Beside this qualitative information we will analyze the findings based on various statements of the company to find qualitative data, which in later would use to do some financial analysis of the organization. Scope of Report The scope of the report is to identify the basic marketing functions observed in the Roche pharmaceuticals Limited.

It is an organization that is committed to provide high standards of safety and environmental protection. Roche is also committed to improving healthcare by discovering, developing, manufacturing and providing pharmaceutical products that enhance people's health, well being and quality of life. This report deals with primary marketing activities performed for the excellence of the organization.

The areas would be focused in the report are like the following:

•The management of the products and services of Roche.

•The process of segmentation, Targeting and positioning for its offerings. The analysis of its customers along with the life cycle strategies of its services.

•The overall pricing strategies and tactics followed by the company.

•The promotional strategies performed by the organization.

•An intricate analysis of strengths and weaknesses of the firm in comparison to its competitors.

•Finally, based on the analysis, this report goes beyond the boundary of the objectives and states few recommendations to add luster with the organization’s present management of the delicate marketing efforts. Limitations Our report on marketing activities of Roche – A

study on Roche pharmaceuticals ltd. is mainly based on qualitative data. For this reason there would not much scope for us to analyze company’s qualitative profiles or financial aspects. This report is not a performance of professional and expert hands.

So it may not represent critical analysis of the comparative success of the Roche pharmaceuticals marketing management. It only states the ongoing facts and features of its marketing management.Moreover, due to lack of proper information, we might not focus on the areas of Marketing Research and Information and Product Development Strategies. These two aspects are the integral parts of overall marketing management.

He was among the first to recognize that the industrial manufacture of standardized medicines would be a major advance in the fight against disease.This led him to found F. Hoffmann-La Roche & Co. on October 1st 1896. From the very beginning, Fritz Hoffmann attached great importance to product information as the link between the pharmaceutical manufacturer and doctors, pharmacists and patients. Shortly after the foundation of the company, affiliates were opened in Germany, Italy, France, the US, Great Britain and Russia.

Since then, Roche has grown into one of the world's leading healthcare companies and one of the most important in Europe. Roche was founded at a time when the Industrial Revolution was changing the face of Europe.A time, rich of inventions, social advances and progress in medical science and a trend towards meeting the needs of a global healthcare market demanded market. Upon this background, Fritz Hoffmann-La Roche realized his plans for the industrial manufacture of drugs of uniform strength and quality. The Hoffmann Era 1896Foundation of F. Hoffmann-La Roche & CoOn October 1, 1896,

Fritz Hoffmann-La Roche founds F.

Hoffmann-La Roche & Co as the successor company to Hoffmann, Traub & Co. The business premises are located at the upper end of the Grenzacherstrasse, on a piece of land overlooking the Rhine. 896Product introduction: Aiodin, thyroid preparationAiodin is the earliest in a series of thyroid preparations which uses the presence of iodine in thyroid extracts. 1896Product introduction: Airol, wound antisepticThe wound antiseptic Airol, originally developed in the laboratories of Hoffmann, Traub & Co, is launched. The young company has high hopes for this product on the German market.

1897Subsidiaries in Grenzach and Milan The company buys land in the nearby German farming community of Grenzach where Airol, an antiseptic wound-healing powder, and Sirolin, a cough syrup, are going to be produced. 898Product introduction: Sirolin, non-prescription cough syrupA non-prescription cough syrup, Sirolin contains Roche's own Thiocol as its active ingredient. The syrup's orange flavour makes it an almost immediate success. Under the tradename Sirolin, the syrup is marketed for over 60 years. 1903Subsidiary in Paris 1904Product introduction: Digalen, purified digitalis preparationAs a pure, standardised digitalis preparation containing all the cardiac glycosides of the purple fox-glove leaf, Digalen proves to meet high medical demand. Digalen remains on the market until 1964.

905First subsidiary in New York CityHoffmann-La Roche Chemical Works Inc. are established in New York City as Roche's first offices in the US. 1908Subsidiary in London 1909Product introduction: Pantopon, remedy for pain, colic, spasms, cough, anxiety and excitation statesPantopon is a remedy for pain, colic, spasms, cough and anxiety and excitation states. It contains all the opium alkaloids in a standardised form free of inert material. Pantopon is still sold in a few

countries, making it Roche's longest-selling product.

1910First subsidiary in Russia The agency in St.Petersburg becomes a subsidiary. During the pre-war years tsarist Russia, where Roche also has agents in Moscow, Odessa, Rostov and Kazan, will grow into the company's most important market. 1919Transformation of Roche into a limited companyThe German boycott of Roche products, Basel's isolation from its Grenzach plant, the loss of company's Russian market and assets in the Revolution of 1917 and sizeable foreign exchange losses have created a financial crisis.

Based on this, Roche is transformed into a limited company. 1920Death of Fritz HoffmannFritz Hoffmann dies on April 18, 1920.Roche loses a dynamic entrepreneur and a striking individual. The New Millennium: Sharpening our focus With the start of the new millennium, Roche has consistently continued its focusing strategy to be prepared for future growth. The alliance with Chugai in Japan, creating a leading research driven pharmaceutical company, creates a very good foothold in today's second largest healthcare market.

The acquisition of Amira by Roche Diagnostics and the announced separation of the Vitamins business reflect our concentration on our core pharmaceuticals and diagnostics businesses.We intend to continue developing innovative and cost-effective solutions in prevention, diagnosis and drug therapy to the ultimate benefit of patients. Era of Franz B. Humer 2001Inauguration of production plant for citric acid in ChinaEmploying the newest technology, the facility will supply China's domestic market and is also going to export a significant proportion of its production to Asia-Pacific markets. 2001BZ Group sell stake in Roche to Novartis20% of Roche bearer shares, representing around.

7% of issued Roche securities are sold to Basel's Novartis.For Roche, the current majority holding remains unaffected. 2001Product introduction: Pegasys,

hepatitis C treatmentPegasys, a pegylated interferon, is introduced for the treatment of chronic hepatitis C. 2001Acquisition: Amira MedicalAmira Medical, a privately-held corporation active in the diabetes monitoring business, is acquired to complement Roche Diagnostics' expertise in the blood glucose monitoring sector.

2001Alliance: Roche and Chugai create new Japanese pharma leader with global accessRoche and Chugai enter into an alliance to create a leading research driven Japanese pharmaceutical company.The new enterprise - formed by the merger of Nippon Roche and Chugai and named Chugai Pharmaceutical Co. , Ltd. - will be the 5th largest pharmaceuticals company in the world's second largest pharma market. The alliance is confirmed at Chugai's annual general meeting on June 27, 2002. Market positioning Founded in 1896 in Basel, Switzerland, Roche has grown from a small drug laboratory into one of the world's leading research-based healthcare companies active in more than 150 countries.

Roche products and services address prevention, diagnosis and treatment of disease, thus enhancing well being and quality of life. Today we rank among the top pharmaceutical companies in the world and are known internationally for our many innovative contributions to medicine. Globally, we are number one in diagnostics, covering all fields of medical testing. Our Vitamins and Fine Chemicals Division is the global leader in its industry.

Roche has been committed from the start to advancing the quality of healthcare.The development of integrated packages teaming complementary diagnostic and therapeutic products and services is just one current example of our undiminished pioneering spirit. We firmly believe that we can best meet our responsibilities to society - today and in the future - by making innovative contributions to healthcare and providing excellence in the

service of health.

Divisions:

Three separate divisional entities are responsible for our world-wide activities in the market place - Pharmaceuticals Division, Diagnostics Division, Vitamins and Fine Chemicals Division.Pharmaceuticals Division When Fritz Hoffmann founded F. Hoffmann-La Roche & Co.

in 1896, he realised what was then a revolutionary idea - producing medicines on an industrial scale outside the pharmacy and selling them on the international market. Innovation has been one of Roche's hallmarks ever since, and many of our pharmaceutical products have become milestones in drug therapy. Upon these products we built our present world leadership in the hospital pharmacy market. Our portfolio of brands of self-medication products is meeting the growing demand for non-prescription remedies.Roche Consumer Health addresses the needs of a healthy lifestyle, protection against environmental stress factors and self-medication for minor complaints. At Roche, we view continuous innovation as the most promising way bring new medicines to the patient.

Looking to the future, our long-standing expertise in medicinal chemistry and biotechnology has put us in an excellent position to exploit the huge potential of molecular medicine. Diagnostics Division Roche is the world's number one diagnostics company, offering a wide range of products and services in all fields of medical testing.We have a unique capacity in people and technology to provide innovative, cost-effective, timely and reliable solutions in biomedical research, laboratory diagnostics and patient self-monitoring. All over the world, we are dedicated to working with our customers - researchers, clinicians and patients - to help them meet their individual needs. It has been said there is not a laboratory in the world that does not contain one of our diagnostic products.

Vitamins and Fine Chemicals Division Since

pioneering the industrial synthesis of vitamin C in 1934, Roche has been a key large-scale manufacturer of vitamins.Today, the Roche Vitamins and Fine Chemicals Division offers a wide range of products to help improve nutrition and prevent and treat disease. We research, produce and market vitamins, carotenoids, citric acid and other active ingredients as well as additives for use in the animal feed, food, pharmaceutical and cosmetics industries. We have a strong commitment to research and development as a way of continuously improving our products and production processes. This commitment has made us the world's biggest producer of vitamins and carotenoids after nature itself. PersonnelFigures reported in the financial statements.

However, always there exists an uncertainty centering the expected sales proceed. Another thing that we have observed from our survey in pharmacies is that Indian low quality medicine comes to our country in illegal way. It makes the pharmaceuticals companies a great problem in a away that as Indian medicine are low quality, price is also low therefore the people mostly in suburban area who are in middle-income or low-income group influence to buy this medicine. Which are very risky and sensitive to make the disease worsening even sometimes it becomes a question of life.This type of poorly managed operation may risk our customers confidence and therefore the government should regulate the pharmaceutical industry as it is very much sensitive.

The quality control aspect of the pharmaceutical business should also be monitored strictly and honestly by authorized private or public sector enterprises. Another good thing that we discover is there is a strong competition among the medicine companies in our country, the benefit of this completion is

we are getting medicine at a lower price and higher quality.The main problem of our pharmaceutical industry is non-availability of infrastructure facilities like gas, water, electricity supply, sewerage disposal and road transport facilities. Very high interest rate of bank loan around 11% to 15% as compared to 3% to 5% in other developing countries like India, Srilanka, may be considered one of the main problem of pharmaceutical industry in Bangladesh.

SUGGESTION ON PHARMACEUTICALS INDUSTRY:

As a rapid growing industry of Bangladesh, pharmaceutical sector should have top government priority. The government must develop all the infrastructure and other facilities for the pharmaceutical industry.Rules and regulations of providing loan should be eased so that every company in this industry can avail such facilities at a lower interest rate. The legal system needs to be strengthening to deal the default culture of using the poisonous medicine and injections. The government should encourage the pharmaceutical companies to build their factory out side of Dhaka, so that the serious pollution can not affect the people.

Competitors: A company could be successful in its business only if it provides greater customer value and satisfaction than its competitors.And we are successful in this area only because we give our highest concern to our customers need that means we always try to keep our price lower than our competitors do without any compromise with quality. We are leader in pharmaceutical business because our marketers provide more than simply adapt to the needs of target markets and another reason is that they get the strategic advantage by positioning our strong offerings against competitors offers in the minds of the consumers. Our international competitors and local competitors are.

d)Customer Analysis: Here we are going to analyze the individuals and households who buy goods and services for personal consumption. All these final consumers make the customer market.

Consumers around the world vary tremendously in age, culture, religion, sociality, income, education level, and tastes. Also the consumers’ personal factors and psychological factors influence their buying behavior. And they purchase an incredible variety of goods and services.Therefore, the buying behavior of the consumers differ greatly in different culture, or region in the world or even in a country. High involvement Low involvement Significant differences Between brands Few differences Between brands Figure: Four types of buying behavior.

Among the four buying behavior our targeted customer fall in the habitual buying behavior, as the customers buy medicine by low involvement and they are not very much concern about the brand name of the pharmaceuticals company so, we can see in the diagram that our customers are in habitual buying behavior. . Market-Product Focus: a. Target Market: For a company to target a market has to go through some factors. First, they have to analyze and evaluate the different market segments, if it is a question of international market then different country’s market should consider and if it is a matter of local market then different groups’ needs and wants should consider. Second, a company must think about the market size and growth.

Third, Companies who are in global market, have to think of different country’s culture, demographic and political situation, and economic position.After evaluating different segments, the company must then decide which and how many segments they will take to serve profitably and cost effectively. As our selected product, Demadex is

a hurt disease relief tablet our target market should be aged people but as the doctors prescribe and pharmacies sales the medicine so, our main target markets are pharmacies and doctors so that they can influence the final consumers. b. Points of Difference (characteristics that make the product / organization unique relative to competitors):There is no any single marketing strategy that fit best for all pharmaceutical companies.

A perfect marketing strategies for a company depends on that company’s size of capital, market share, areas of activities, company position in the mind of consumers compared to those of its competitors. Therefore, our research and development department with dominant company position in the industry, develop strategies in marketing policy, pricing policy and in other areas considering the above-mentioned factors that make our company unique relative to other competitors. . Positioning: As we know that a product’s position is the place the product occupies relative to competitors in consumers’ minds.

If a product is perceived to be exactly like another product on the market, consumers would have no reason to buy it. It also means a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Founded in 1896 in Basel, Switzerland, Roche has grown from a small drug laboratory into one of the world's leading research-based healthcare companies active in more than 150 countries.Roche products and services address prevention, diagnosis and treatment of disease, thus enhancing well-being and quality of life.

Today we rank among the top pharmaceutical companies in the world and are known internationally for our many innovative contributions to medicine. Globally, we are number one in diagnostics, covering all fields of medical

testing. Our Vitamins and Fine Chemicals Division is the global leader in its industry. Roche has been committed from the start to advancing the quality of healthcare.The development of integrated packages teaming complementary diagnostic and therapeutic products and services is just one current example of our undiminished pioneering spirit. We firmly believe that we can best meet our responsibilities to society - today and in the future - by making innovative contributions to healthcare and providing excellence in the service of health.

Managing Marketing Activities: Success lies in the ability to adapt with changing times. That is something that the company learnt over the past years.The company also learnt to anticipate that change and mould their services to meet the needs of their valuable clients. Before a product is manufactured, the usual procedure is to study the potential market or customer demanding order to do the size planning which is necessary for the efficient operation of the enterprise.

Marketing is the term applied to the processes of distributing goods from the producer to the ultimate user. As we know that Roche pharmaceutical’s main focus is providing healthcare and save lives therefore, its managing marketing is so important.Marketing Research The purpose of Roche pharmaceuticals marketing research is to determine, through the application of the scientific method, what to produce, who the potential buyers are, where those buyers are located, how much to produce, how to sell, and when to sell in order to maximize the service render and net profits earned. Product Analysis: The purpose of product analysis is to determine customer preferences with respect to a product.This analysis will enable management to develop new product that will

meet the needs and desire of potential customers, to improve present products and make them more acceptable than those of competitors, to simplify product line by eliminating those, which have a limited demand. Product Feature: Roche pharmaceuticals Ltd. is one of the pioneers in the field of pharmaceuticals industries all over the world and also has an own identity and trademark company in Bangladesh. This company’ s logo named “Roche pharmaceuticals” is a main product feature and competitive tool for differentiating the company’s product from competitors’ product.Market Analysis: The purpose of the market analysis is to determine the location, volume, and buying habits of the individuals or groups that make up the potential market for Roche pharmaceuticals. Roche pharmaceutical is not only the market leader; they are the market flowers in the field of pharmaceuticals industries too.

The quality of medicine that Roche pharmaceuticals provide compared to other pharmaceuticals is better. For the reason Roche pharmaceuticals has a strong goodwill.Their customers know that they provide the best quality medicine. Its customers are hard core loyal.

And Roche pharmaceuticals never compromises with the quality. Their main focus is selling of the products and services. It is their main focus because for business or social service or shelter. They concentrate customers’ needs and choice for healthcare is being constructed in different areas, like, pharmaceuticals, diagnostics, vitamins etc. In this manner the products is being made as customer demands. Roche pharmaceutical is totally professional outfit.

The organizational strength comes from a dedicated workforce. The team has some of the best planners, biochemist scientists, financial experts and marketing professionals. Each area of work is departmentalized on a purely functional basis and each

directed to achieve qualitative superiority. So, for planning the business-managing director, researchers, marketing managers, and financial experts are responsible. Roche pharmaceuticals generate marketing planning report based on the various location, location demand, location size, and buying capacity of the particular people or group.

The company, Roche pharmaceuticals, is poised to embark on challenging projects in the new millennium. Several joint venture projects are being negotiated with foreign companies for the lateral expansion of the medicine. Roche pharmaceutical is poised for a new phase of dynamic growth. Their human resource is well trained and motivated; their financial fundamentals are strong and they have an excellent goodwill in the market. Their vision is to constantly set challenging goals for theirselves. They will continue to xpand and diversify and be an example of a progressive company playing a dynamic roll in the economic development of Bangladesh. The promotional elements that are going to be implemented by Roche pharmaceutical is mainly advertising, sales promotion and public relations. But the importance of the promotional elements depends on their different target group. As we know Roche pharmaceutical’s main customers are individual buyers but their target markets are doctors and pharmacies. The company also uses product brochure, newsletter and leaflet as to promote their products.The company maintains quality level, product design and development, product feature, and the best one brand name. The company has the special brand name that makes the company different from the others. The company gives customers warranty about their quality product. Under the product classifications Roche pharmaceutical’s product falls in convenience product. Convenience product is consumer products and services with characteristics that the customers usually buys frequently, immediately, and

with a minimum of comparison and buying effort. 4. Marketing Program:Figure: The Four Ps of Marketing mix. a. Product: Our product pipeline is a uniquely broad spectrum of innovative solutions for healthcare needs of the future. Projects address all stages of prevention, diagnosis and treatment of disease as well as well being to enhance quality of life.

•Product Mix: An organization with several product lines has a product mix. A product mix consists of all the product lines and items that a particular seller offers for sale. A company’s product mix has four important dimensions: width, length, depth and consistency. Product mix width refers to the numbers of ifferent product lines the company carries. Product mix length refers to the total number of items the company carries within its product lines. Product line depth refers to the number of versions offered of each product in the line. Finally, the consistency of the product mix refers to how closely relate the various product lines are in end use, production requirements, distribution channels or some other way. Roche discovers, develops, manufactures and markets numerous important prescription drugs that enhance people's health, well-being and quality of life.Among the company’s areas of therapeutic interest are: dermatology; genitourinary disease; infectious diseases, including influenza; inflammation, including arthritis and osteoporosis; metabolic diseases, including obesity and diabetes; neurology; oncology; transplantation; vascular diseases; and virology, including HIV/AIDS and hepatitis C. Here we give the diagram of our company’s product mix: Product Mix Width Tablets CapsulesSyrup DropsInjections Dormicum Furtulon Herceptin Xeloda Activase NeoRecormon Lexotan Rocephin Roferon-A Valcyte Zenapax Herceptin CellCept XenicalLibrium Redoxon

•Packaging:

Traditionally, the primary function of the package was to contain and protect the product. But

in recent times, numerous factors have made packaging an important marketing tool.The packages must now perform many sales tasks - from attracting attention, to describing the product, to make the sale the company are realizing the power of good packaging to create constant consumer recognition of the company or brand. Packaging involves designing and producing the primary packaging in which the package hold the product and the secondary that is in which the package hold the primary package. Innovative packaging can give a company an advantage over competitors in contrast; poorly designed packages can cause headaches for consumers and lost sales for the company.So developing a good package of the company’s existing and new products require making many decisions. First, the company must establish the packaging concept, which states that the package should be or do for the product. Should it mainly offer product protection, introduce any dispensing method; suggest certain quality about the product or something else? So from our survey we have seen the primary package of our product Demadex is covered by foil paper, which is kept airtight. And the secondary cardboard package that keeps the primary package is made by cardboard box.The size and shape of the primary package is such which contain six tablets each and the colour text and brand mark is such that attract attention of the customers and describe our product quality. That ultimately makes our company specially the product leader in this field.

•Product portfolio: This document outlines the Roche product development portfolio including new molecular entities and major line extensions. The portfolio will change with time as compounds enter from research, progress through to the next

phase of development or enter the market place.The high risk nature of the drug development process also means that it is not unusual for some projects to be terminated if they do not meet the criteria for progression and this will be particularly true in the early stages.

To attract new customer the company could undertake price-cutting to increase the demand. Pricing strategy and action plan: Roche pharmaceuticals is not the market leader as it is holding 12% of total market share. The selling rate of Roche pharmaceuticals’ is in the matter level of product life cycle. But the question comes if Roche pharmaceuticals reduce their price how the customer would perceive it? There is a possibility that customer will relate the price reduction with decline product quality.In order to prevent this situation Roche pharmaceuticals has to convince their customers that their price reduction result from a better utilization of the resource. This message would be conveyed to the customer through personal contact. The pricing strategy should be cost-based pricing or completion-based pricing. That means they should first conduct research to find out the perceived value of the product by the consumers. The producer need to find out how much consumer are willing to pay for the benefit that Roche pharmaceuticals provide with the medicine.

Roche pharmaceuticals’ product planners need to think about the product, which they have offered and services on three levels.This is the level that Roche pharmaceuticals should be concentrated more because they are not the market leader, they are the market challenger in Bangladesh and in the product life cycle they are staying in maturity level. The maturity level is most important part

for the company and under this part a company face its most competitors. So, to stay at the maturity level Roche pharmaceuticals should increase their promotional tools and quality of the product without any increase in price level. The company needs more advertising from this viewpoint.They will select the media for advertisement, which they think convenient for them. We give some unusual advertisement for them in recommendation, which may give good response over the competitors.

Finally, the product planner should build an augmented product around the core and actual products by offering additional consumer services and benefits. Recommendation or Suggestions: Suggestion on Company Operation: The recommendation for Roche pharmaceuticals, based on the findings and the action plans of the study, will be as follows:As a quality pharmaceutical company, Roche pharmaceuticals should concentrate on the health nature in this locality than internationally. If they go for research and development to the recommended area, they may comfortably stay in competition in relation to big operations in Bangladesh. However, if the company wants to dominate the market by providing life saving and over-the- counter medicines, they may raise funds by forming a public limited company or may try to make joint ventures with international pharmaceuticals industries.

The company should have an efficient management and marketing organization to cope up with the demand of twenty first century. They should also maintain proper accounts of their operations and should follow updated accounting and project management procedures to have a foolproof system to evaluate their accounts and management data and variable’s, which are very important to take crucial financial and administrative decisions. Recommendation on Managing Marketing Activities: The company believes in diversifications and

investing diversification into research and development department for invention new product.The company's current product face a higher price in locally, so the company is looking for newer products that must be replaced. But the products can fail - the risks of innovation are also great as the rewards.

The key to successful innovation lies in a total company effort, strong planning and a systematic new-product-development process. So our recommendation for Roche pharmaceuticals, when they diversify their present products to new products they should maintain some steps. This process starts with idea generation, hich may draw inspiration from internal sources, customers, competitors, suppliers and others. Next comes idea screening, which reduces the number of ideas based on the company's own criteria. Ideas that pass the screening stage continue through product concept development, in which a detailed version of new-product ideas are started in meaningful consumer terms. In the next stage, concept testing, new-product concepts are tested with a group of target consumers to determine if the concepts have strong consumer appeal.Next step is marketing strategy development, in which an initial marketing strategy for the new-products is developed from the product concept.

In the Business analysis stage, a review of the sales, costs and profit projection for a new product is conducted to determine whether the new-product is likely to satisfy the objectives. For business, customers are the kings. Roche pharmaceuticals always fulfill their customers' needs and satisfactions with the quality.Principle of customer's viewpoint is - "products should be designed, manufactured and distributed to meet the customers' desires and needs from his point of view as determined from marketing surveys. " So, Roche pharmaceuticals should analysis the product through

a questionnaire that, what way competitors' products are superior or inferior and will enable the product development engineers to design new or improved products that are more acceptable to customers. A checklist of the type of questions to be answered by a product analysis follows:

Does the product meet the market requirements?

•Is the product competitive in character, performance, and price?

•What design improvements are needed to meet customers’ needs and to improve performance?

•How can the methods of replacement of the product be improved?

•What characteristics of demand are not presently supplied?

•What is the future trend of changes as determined by customers’ changing conditions?