Thirty Years of Stirring and Ups and Downs, Meditations on the Top Ten Marketing Models in China's Pharmaceutical Industry

After 30 years of marketing in China's pharmaceutical and health care products industry, it experienced the chaos of "crossing the river by feeling the stones" and the construction of a strategic model at the "top-level design" stage. It is like a condensed history of 30 years of China's reform and opening up. From 505 magical power bags to the global market, three oral liquids suddenly delisted from the sudden rise of the Mengpai marketing giant building collapsed, from the invasion of foreign brands to the rapid rise of local companies, from GMP mandatory certification to the full implementation of the new medical reform policies. The turbulent ups and downs in the past 30 years are like a magnificent historical picture, even in the history of the world economy! The ancients said: Taking history as a mirror, you can learn about the rise and fall. Today, it is an understated meditation that summarizes the top ten marketing models in China's pharmaceutical and healthcare industry for 30 years.

Harbin Pharmaceutical Model: Strong intensive advertising leads to big success

In 2000, Harbin Pharmaceutical Group made 1.2 billion yuan in advertising fees and realized sales revenue of 6.4 billion yuan, ranking first in the nation's pharmaceutical industry. Under the indiscriminate bombardment of countless advertisements, the Harbin Pharmaceutical Group and the Harbin Pharmaceutical Group have been remembered in the media and consumer controversy.

In order to surpass homogenous product competition, release excess production capacity, and maintain the stability of enterprises and society, Harbin Pharmaceutical Group has established the guiding ideology of “making operating capacity greater than production capacity”. It is under the guidance of this idea that, combined with the relatively low cost of the media at that time, and the investment of 10 million, a large area of ​​bombing can be achieved, and the investment will be more than 100 million yuan. Consumers can only get rid of advertisements if they fall out of television, both internal and external factors. Intertwined, thus creating a Harbin medicine model that drove the sales of large general medicines with intensive advertising. For more than 10 years, Harbin Pharmaceutical Group has been at the forefront of China's top 100 pharmaceutical companies to prove this point. Gaizhonggai, Yandi, Huyu, Sanjing, and other brands have long gone deep into the minds of Chinese people.

Nowadays, it is hard to duplicate and maintain the model of reliance on intensive advertising to drive general drug sales. First, the media costs are constantly rising, huge investment fees have long been unable to cover a large area of ​​advertising coverage, followed by several competing products in the terminal implementation of high The gross profit interception strategy makes the variety of advertisements gradually decline in the terminal. At present, the Harbin Pharmaceutical Group has begun strategic adjustments, and the outcome is what we will wait and see.

Corrected mode: Propagation accuracy, high space, and human tactics

Amended medicines in the launch of the first star single product Starash, the stomach medicine market has long been a master, such as Lin, in Sanjiu Wei Tai, Li Zhu De Le, Wei Yan Ping, porphyrins and other loudly before the brand, amended The pharmaceutical industry chose to launch a sharp offensive both online and offline.

Compared with the Harbin-style advertisements, the corrections are much more focused and precise in brand communication. Firstly, the media chose to focus on CCTV and key TV channels, which has achieved the purpose of strong impact and high credibility. Second, it has accurately positioned the symptoms of the disease to achieve clear symptoms, stomach pain, bloating, and stomach acid. With Starshock, simple and powerful direct response to consumer demand, forming a strong purchase order. At the same time, the modified pharmaceutical industry has implemented a powerful human-sea tactics online, and the team has rapidly expanded to tens of thousands of people. It has given the sales team high profit margins, greatly mobilized the enthusiasm of the channel chain at all levels, and provided strong organizational guarantees. The generous incentive mechanism made it possible to modify the rapid national market of Starbucks and spread it with fierce online advertising campaigns. It was corrected that Starbucks had overcame half of the stomach medicine market.

After correcting the drug industry's sweetness in Starsky, the drug industry quickly copied the marketing strategy model of outstanding symptoms, high-altitude space, and human-sea tactics to the later introduced Dylan, Xie Shuan, Fei Ning, and Xiu. The repair of love and other varieties, and have achieved a good market performance.

In recent years, in the face of policy pressures to reduce drug prices, as well as constantly rising personnel costs, Amended Pharmaceuticals has also adjusted its marketing model in a timely manner, and has continued to expand health products, health care drinks, and other aspects in product strategy.

Yangtze River Model: Product Clusters Going into Hospitals

Compared with most local pharmaceutical companies, Yangzijiang Pharmaceutical is a relatively focused company, focusing on the creation of product clusters and the development of hospital terminals. This focus has even resisted diversification and capital for a long period of time. The temptation of the market eventually led it to top the list of China's top 100 pharmaceutical companies. The “package strategy” makes it possible to negotiate with the hospital through packaging. It has won a huge market share and reputation for the company. At the same time, profit-oriented products have earned high profits for the company.

The most surprising aspect of the Yangzijiang model is its marketing team and incentive mechanism formed by the Taizhou fellow countrymen. The use of homeland ties and benefit-sharing mechanisms has greatly mobilized the enthusiasm of sales personnel and made it possible to use the company’s sales tasks as its own business. Under the cover of the company’s three times more industry’s rebate policy and strong government’s public relations capabilities, the team has been driving all the way to the province, city, county, and even tertiary hospitals and even township hospitals. The industry has carried 10 billion class clubs.

The Yangzijiang model has achieved great success, but its own gray temperament has also been widely criticized and was once raised to the height of moral criticism. With the continuous tightening of national policies, especially anti-commercial bribery, tendering, price cuts, support for innovative drugs, etc., which have had a great impact on the Yangzi River, there are reports that the company has evaporated in a matter of months after the country has forcibly reduced drug prices. Nearly 800 million sales.

Faced with increasingly strict supervision and lower drug prices, the unsustainability of the Yangzijiang model has become more prominent. At the same time, we have also noticed that in recent years, Yangzijiang Pharmaceutical has significantly increased the research and development of independent technology products and the promotion of OTC products. change! Has become a firm choice for Yangzijiang Pharmaceutical.

Jiangzhong model: big advertising build OTC brand, intensive cultivation of channel terminals

OTC products and advertisements are marketing models adopted by many pharmaceutical companies, but Jiangzhong Pharmaceutical is undoubtedly the most successful. The ads for grass coral lozenges have made the “Jiangzhong” brand enter the hearts of the people. In 2002, they again launched heavy attacks on television advertisements. The popularity and popularity of Jiangzhong Jianwei Xiaoshi Tablets continued to rise, followed closely by the entertainment of Jiang Zhongliang. Marketing and Yuanyuan's accurate targeting of postoperative patients have had a tremendous influence in the industry.

While vigorously promoting brand communication and maintenance, Jiang Zhong Pharmaceutical implemented intensive farming strategies at the channel terminals. In 2004, through in-depth distribution, the number of contracted tier-2 merchants increased rapidly around 2,000, and at the same time, the marketing intensity of the third terminal was continuously strengthened, which further extended the company's sales terminal to a new market. Through measures such as terminal pricing, product display, terminal packaging, and combating counterfeit goods, the appearance of the terminal has undergone a revolutionary change, thus establishing a good channel and terminal order, which has greatly increased the satisfaction of channel providers and terminals. Jiangzhong Pharmaceutical's OTC products and health products continue to shine!

OTC products and health products have the characteristics of fast consumer goods. Their essence is that consumers purchase independently, and brand popularity determines the transaction rate. It is a simple but most robust and effective marketing model to establish a big brand through large advertisements and achieve good channel control through intensive end-to-end channels. Jiangzhong Pharmaceutical has already reached the point where it is in full swing. At present, many pharmaceutical companies, including Dong-E Ejiao and Yunnan Baiyao, have also taken this path and have made remarkable achievements.

In the middle of the model: the third terminal blossoms everywhere, and the large-scale pharmaceuticals can be scaled and cost-effectively

At the beginning of the establishment of the Chinese medicine industry, according to the actual situation of the company's own products, we have focused our attention on the third terminal, which has a broad rural market as the main battlefield. In 2003, the company put forward the slogan of “genuine medicine”. In 2005, the sales volume of traditional Chinese medicine industry exceeded 800 million yuan, of which more than 30% was obtained in the rural market. In those years, amoxicillin capsules accounted for more than 30% of the country's national market, and the sales of generic drugs such as Amika Huangmin capsule, Banlangen granules, and Chlorphenanthin yellow sensitizer tablets also ranked first in the country.

Under the guidance of the marketing strategy of the third terminal, the Chinese medicine industry has reached strategic cooperation with Anhui Huayuan and Hubei Jiuzhoutong on the one hand, and actively established a new business alliance with county-level pharmaceutical companies to use its existing channels. The extensive experience in in-depth development of the rural medicine market has ensured the extensive coverage of the third terminal by the Chinese medicine industry.

Under the guidance of An Haoyi, an army leader in Suizhong, “The price is one step lower than the market”, the scale and low cost have become the key to the Suizhong model. In order to strictly control costs, the Chinese medicine industry has established the Banlangen planting base and adopts the “company + farmer” production model, which greatly reduces procurement costs. At the same time, the company continuously expands production capacity and improves production efficiency, and has successively built an annual output. China’s largest hollow capsule production line with 13 billion capsules currently holds one-tenth of its output in China’s capsule market. With only this one, the capsule production cost is reduced by 20%, and the annual cost savings are 5 million yuan.

With the implementation of the national essential medicine list and the continuous expansion of the scope and number of new rural cooperative medical insurance, the market capacity of the third terminal will continue to grow. However, due to the constraints of low prices, the "Suizhong Incident" that broke out last year cast a shadow over the Jizhong model. Whether the Chinese medicine industry can continue to make tribute to the third terminal, remains to be tested.

Janssen Model: Equal emphasis on prescription drugs and OTC, academic promotion and brand communication

Xian Janssen has excellent prescription drugs in areas such as dermatology, psychosis, depression, oncology and blood diseases. In the promotion of prescription drugs, Xian Janssen introduced new drugs in various fields through independent research and development or sales license transfer, and increased the synchronization of domestic product development and clinical trials, shortening the listing of new drugs in the Chinese market and international markets. Due to the time difference, an international team known for prescribing drug operations was set up to strengthen the construction of hospital terminals. At the same time, we actively implemented the academic promotion work of “letting every Chinese doctor understand Xi'an Jansen products” and hold face-to-face meetings with medical personnel, especially young and middle-aged doctors who have prescribing rights, by convening symposia, lectures, and seminars on various products. Promote. For example, when promoting bamboo forest products, four well-known domestic professors from Beijing and Shanghai were invited to speak in more than 40 cities including Shanghai, Guangzhou and Urumqi. Nearly 4,000 doctors throughout the country listened to academic lectures by experts. .

With regard to the creation of OTC brand products, Xian Janssen has invested heavily and has spared no effort. It has achieved a full range of high-strength advertising coverage on CCTV, various TV networks, outdoor media, and industry media online, enabling major OTC brands in China. The consumer's mind has established a good reputation. The company adheres to the sales strategy of using state-owned commercial enterprises as the main channel, and implements price discounts for large customers and cash discounts for timely payment. The establishment of a new type of partnership that is mutually beneficial and mutually dependent on channel traders at all levels has greatly mobilized the initiative and enthusiasm of channel providers.

Both prescription drugs and OTC are equally important for Xian Janssen, which has earned high profits and provided them with abundant cash flow. In addition, the Chinese pharmaceutical market continues to grow rapidly. In recent years, Xian Yangsen’s The status of the Asia-Pacific region has become increasingly important and has received more attention and support from the headquarters. This localization of the most successful foreign pharmaceutical companies, in the future journey, will inevitably continue to be popular in the Chinese pharmaceutical market with its professional and steady posture!

Dongfeng Mode: Intimidation Marketing, Terminal Experience

Dongfeng model, accurately speaking, should be called Jiuxin model. In 1996, Jiuxin Pharmaceutical Co., Ltd. became the national agent of Jinan Dongfeng Pharmaceutical Co., Ltd., and used the threatening techniques of Mengpai Marketing to the extreme, quickly making the reputation of New Skin Cream, and accumulating the sales of single products. One billion yuan has also driven a huge market in addition to smashing the embarrassment.

The old man is afraid of death and the woman is stinking. Jiuxin Pharmaceutical Co., Ltd. seized this simple human psychology. Under the extremely loose media supervision environment at that time, the use of television, newspapers and other mass media strongly introduced the sensational concept of ridiculing and vigorously rendered the seriousness of the locust problem. , continue to stimulate the fragile nerves of women. In order to further strengthen the credibility and urgency of the concept of removing phlegm, Jiuxin Pharmaceuticals has added instrument detection methods to the promotion site. Under the display microscope, an arrogant locust is creeping, which has aroused even more women’s consumption. Urgency. To make the original name of the new skin cream has become a rush of products, and led to the sale of products such as Yuting soap.

Until 2003, Jinan Dongfeng Pharmaceutical Co., Ltd. joined the wife's pharmaceutical industry and announced that the brand name of New Skin Cream is attributed to the wife's pharmaceutical industry. Jiuxin Pharmaceuticals only hated the withdrawal of painstakingly operating the market. Frost, together with its threatening marketing practices, has also gradually been marginalized by the market.

Mengpai mode: Bottom line hype, more embarrassing, faster, more evil

In the history of Chinese medicine and health product marketing, in the face of numerous well-known and decent schools, the Meng School has become a wicked way, gathering the strengths of each family and bringing it to the extreme. The symptoms are clear, the crowd is blurred, intimidation of marketing, conference marketing, travel marketing, free clinics, radio lectures, monopoly media, bombardment, all-powerful! 505 magic air bags, three oral liquids, Apollo, Hong K, Fu Shan Pharmaceutical, Shenyang Feilong, and countless billions of traders, are the beneficiaries of this model and carry forward.

The Mongolian school model is a special product under a special historical environment. In the process of transition from a planned economy to a market economy, the old system was broken, the new mechanism has not yet been established, policy supervision is not in place, and the media tends to benefit. Faced with a vast market space, unlimited operating space, high profit returns, bottomless hype came into being.

In recent years, with the increasing supervision of the state and increasing consumer awareness, this model has retreated to the rural market of the fourth and fifth tiers. It will not be long before it will be crushed by the rolling wheel of history.

Brain Platinum Mode: Gift Marketing, Pervasive

Melatonin is definitely a different kind of Chinese health care product market. This functional product, which started with efficacy and relied on soft texts, was immediately accepted by people with unprecedented health consciousness after the functional appeal of “improvement of sleep and laxative” was accepted. Turning from functional marketing to gift marketing, it has greatly lengthened the product life cycle and turned it into a synonym for health and longevity. It is synonymous with giving gifts.

The communicative phrase “Not receiving gifts this year and receiving only melatonin” has continued to undermine high-density bombings in various media for many years. The Chinese consumer’s consciousness of consumption has been completely changed in a subtle manner, thus making the brain Platinum has become the preferred product for major holiday gifts for urban residents and has continued to sell for more than a decade.

Gift marketing melatonin is not the first, high-density advertising is not the first to put melatonin, but melatonin also uses these two techniques to the extreme that no one can surmount, and melatonin is destined to be an unprecedented person. Beyond the product.

Amway Mode: Changing for China and Creating a Chinese Characteristic Direct Marketing Model

Amway China is a direct sales company with strong American characteristics, namely a pure personnel sales model. In April 1998, the State Council promulgated the "Notice on the Complete Prohibition of MLM Business Activities." It announced that MLM was illegal, and Amway was also hit hard.

While cracking down on illegal pyramid schemes, the state also leaves some room for companies like Amway. It is to seize this life-saving straw that Amelia has opened the direct sales curtain with Chinese characteristics and began to change for China.

The first and foremost is the change in the sales model, from a purely personal sales promotion to a combination of store sales and sales promotion. Followed by the change in brand communication mode, Amway has hired Fu Mingxia, Liu Xiang and many other stars to represent their brand's image spokesperson, and vigorously carried out Olympics, charity, public service, and played a good brand, and created a good brand. Image.

The same types of direct sales companies as Amway, such as Avon and Mary Kay, also follow the Amway model and embark on a direct sales route with Chinese characteristics. Facts have also proved that for China to change, the gains are considerable. Today, Amway's annual sales in mainland China have already exceeded 15 billion, and before 1998 Amway's sales in China was only less than 1.5 billion.

Castle Peak can not cover, after all, go east! In the past 30 years of the Chinese medicine and health care products market, various marketing models and operating methods emerged in an endless stream, driving the continuous development of the entire pharmaceutical and healthcare products market. In the next 10 years, it will remain the golden decade for the rapid development of China's pharmaceutical economy. The policy mechanism will continue to improve and standardize, and consumption awareness will become more rational and mature. In the past, successful marketing models will also face more severe challenges. How to adjust the company's marketing strategy In order to adapt to changes in the new era, the model of successful innovation will be a question that every medical marketing person needs to think about!