2012, the year of strategic decision to determine the fate of Chinese pharmaceutical companies

The company's continued success stems from making the right choices during each key opportunity period. For pharmaceutical companies that have been watching the uncertainty of the new healthcare reform for many years, 2012 will become a strategic choice year for determining the future fate of Chinese pharmaceutical companies. Enterprises that can make correct decisions will seize the opportunity in the new round of competition. .

First of all, the policy was clear and the dust settled. The pharmaceutical companies ushered in a period of concentrated effort. After three years of exploration and conclusion, the impact of the new medical reform on pharmaceutical companies has become clearer and clearer. It is a key opportunity for pharmaceutical companies to seize the market. The introduction of a series of new medical reform policies such as the continuous price reduction of drugs, anti-commercial bribery, the promotion of basic drug systems, and local zero-difference distribution has limited the space for pharmaceutical companies to operate, and pharmaceutical companies must make strategic transitions to adapt to the new industry situation. Enterprises that cannot make timely adjustments will surely be greatly influenced and bound by the policies.

The National Twelfth Five-Year Plan has already shown a clear direction to promote industry concentration, and under the survival of the inferior, the pharmaceutical companies are forced to make choices. More stringent policies will reshuffle the pharmaceutical market, and some SMEs or products will withdraw from the market. Their outflow will set aside 120 billion yuan for the hospital's prescription drug market, which is 120 billion yuan, which will become a focus for surviving pharmaceutical companies. The "cake" for contention. In recent years, through mergers and acquisitions, restructuring, and other forms, China has emerged as a large-scale pharmaceutical commercial enterprise with a sales scale of more than 10 billion yuan, such as China National Pharmaceutical Group Corporation, Shanghai Pharmaceutical Co., Ltd., but with a global pharmaceutical giant 40-50 billion US dollars In contrast, there is still a huge gap, and the degree of industrial concentration is still accelerating.

Second, as consumers change and upgrade, traditional marketing methods must be updated. First of all, consumers’ awareness of self-medication continues to increase, and consumers’ demand for OTC drugs at drug retail terminals has increased substantially. Second, 70, 80, and 90 have become the main consumers. This group has a high sense of self-medication. Consumers are more rational, simple advertisements, naval warfare, and hype marketing. The appeal to these consumers has been reduced. Some hype methods will also arouse their resentment; Third, the concept of great health is deeply rooted in people's minds, and nutrition and health care products continue to grow rapidly. , National health and health promotion of the traditional Chinese medicine products sales.

Third, changes in the media have prompted companies to make new strategic adjustments. The price of traditional media has skyrocketed, and the cost of traditional marketing means has risen sharply. The increase in media costs has exceeded the growth rate of sales and profits in the pharmaceutical industry. On the other hand, with the rise of new media, the Internet has become one of the mainstream media that affects consumers, and it has received more and more attention from companies. The new forms of media communication have raised new issues for the marketing model of medicine. The marketing model that cannot adapt to the new environment will surely be eliminated by the market and bring heavy losses to the company.

Fourth, the lack of some brand brands is at a critical moment for brand acquisition. At present, some brands have formed strong OTC brands, such as Zhongjing Liuweidihuang Pill, Taslyl Danshen Dripping Pills, Jiangzhong Jianwei Xiaoshi Tablets, etc. These category bosses have enjoyed the lucrative profits brought by the brand. However, some of the OTC categories have not yet formed the boss. The Twelfth Five-Year Plan clearly stated that “the production of essential drugs will be concentrated in advantageous enterprises, and the top 20 companies will account for more than 80% of market share”, which will promote the enrichment of the company’s advantages. It is an opportunity for related pharmaceutical companies to make efforts. Whoever first makes a clear strategic decision will be able to seize the opportunity.

Fifth, multinational companies will seize the market share of Chinese pharmaceuticals. Chinese pharmaceutical companies will withdraw if they do not advance. By taking advantage of the merger and reorganization, Sanofi scored 21 gold Vita and good dolls, Bayer became the new owner of white and black, even consider the penetration of their network into China's rural areas; British pharmaceutical giant AstraZeneca spent money 200 million U.S. dollars to build its largest independent production base for global investment in Taizhou to promote the company's business development in China; Merck and Xiansheng Pharmaceutical signed a framework cooperation agreement to establish a joint venture company in China involving product development, registration, and manufacturing And sales in various aspects; Pfizer in the United States to invest 50 million US dollars in June to participate in Shanghai Pharmaceutical H shares; Germany Boehringer Ingelheim announced earlier to enter the Chinese oncology drug market; the first anti-tumor drugs will be listed in 2014,

Norbert, head of KPMG's Asia-Pacific region and China's pharmaceutical industry, said that drug makers have lost sales in Europe, the United States and Japan, and that both prescription and non-prescription drug manufacturers are shifting to new target markets, particularly Asia Pacific and Latin America. .

Transnational corporations are now trying to acquire generic pharmaceutical companies to compensate for the loss of revenue from the expiration of patents. Many multinational corporations and more than 5,000 domestic companies compete for a place in the market. If Chinese pharmaceutical companies cannot respond accordingly, they will face the dilemma of failing to advance and retreat.

From chaotic chaos to GMP certification, from the perspective of medical reforms and the uncertainties arising from the financial crisis to the current dust settled, in 2012, it will become a strategic choice year to determine the fate of pharmaceutical companies.

After the pharmaceutical industry has undergone specialization and diversified development, it has now reached the critical moment of strategic focus, and the pharmaceutical industry will experience new changes again. Therefore, 2012 will become a strategic year for determining the fate of pharmaceutical companies.

Winning the next three strategic paths

To make the right strategic choice, we must recognize the direction of development of the industry. Fulai believes that China's pharmaceutical marketing is moving toward the following three strategic paths.

One of the strategic paths: Focusing on prescription drugs and hospital lines

Typical representatives: Yiling Pharmaceutical, Xiansheng Pharmaceutical, Buchang Pharmaceutical, Jichuan Pharmaceutical, and Kangyuan Pharmaceutical.

Prescription drugs and hospital lines are the roots of the pharmaceutical industry. In pharmaceutical products, prescription drugs account for almost 70% of the total. Prescription drugs enter the medical insurance directory in large numbers. Some therapeutic basic drugs are obtained free of charge directly from the primary medical institutions, and medical treatment will become more people's choice. With the successive promulgation of various national GMP, GSP, GCP, GLP, GAP and other policies, the trend of the development of prescription drug marketing to benign is beyond question.

As the first terminal for medical marketing, the theater has always been a must for pharmaceutical companies. With the promotion of anti-commercial bribery, the homogeneity of gold sales, and the increasingly prominent risks, professional marketing and provision of professional pharmaceutical medical services will be the inevitable direction for the development of pharmaceutical marketing.

Focusing on prescription drugs and medicine lines, it is suitable for strengthening the professional route, focusing on the clinical market, and focusing on the academic level, especially for companies with a number of exclusive patented technologies, such as having a large number of patented drugs and exclusive products; Academic expert resources and academic discourse rights; hospital terminals have been intensively cultivated for many years, have a good cooperative relationship, and have formed a good academic exchange mechanism through products and doctors, and even set up most of their own R&D projects in hospitals.

The pharmaceutical industry is still essentially the future of R&D, and patented people have the world. Focusing on prescription drugs and theaters, companies rely on technological advantages to explore new marketing models in the current policy environment. Pruesome's Ruoxixi has always been the champion of China's antihypertensive drug sales. In addition to extracting the characteristics of Chinese hypertensive patients and highlighting the advantages of Lohanxi, the flexible academic promotion method has been generally favored by doctors and patients. Competing the opponent in the competition.

The second strategic strategy: Focusing on the company's strategy with the base medicine and the third terminal

Typical representatives: North China Pharmaceutical, Suizhong Pharmaceutical, Furen Pharmaceutical, Kerui Pharmaceutical.

With the advancement and implementation of the national essential drug system, the Chinese pharmaceutical industry is entering the “essential drug marketing era”, and becoming a leading brand of essential drugs will become an important strategic direction for the development of pharmaceutical companies.

Enterprises that choose this strategic path generally have the scale advantages and cost advantages of the production of generic drugs. The enterprises have strong control over the operation and control of the third terminal channel. They stare at the basic drug list, and they make a fuss about the basic drug policy. There are a large number of varieties. Entering the national drug directory is the advantage of leading pharmaceutical companies and regional companies.

Basic medicine provides a huge market for powerful companies. With the goal of medical reform that requires that the sales of essential drugs account for more than 70% of the total sales of pharmaceuticals, even if the total domestic market for pharmaceuticals remains unchanged at around 100 billion, the top 20 companies that have to reach 80% market share should be considered. Must reach more than 560 billion in the base drug market, if the goal is achieved, it means that the Chinese market will appear in the top 10 sales of 30 billion yuan of large pharmaceutical companies. However, the real problem is that in 2009, the number one ranked Harbin Pharmaceutical Group had sales of only 13 billion yuan, and the second-ranking group Shijiazhuang Group had just over 10 billion in sales.

Medical insurance coverage has expanded and the growth in demand for the third terminal market has become a consensus. According to statistics from the Southern Institute of Pharmaceutical Economics, the basic medical market, including county-level hospitals, will reach 169.9 billion yuan in 2011, accounting for 18.7% of the total. The Institute expects that the reform of the new medical reform public hospitals in March last year will fall after the comprehensive reform of the county hospitals, which will increase the market size by 66.4 billion yuan.

The use of basic drug distribution to occupy the terminal of basic medical institutions and open up the grass-roots pharmaceutical market will bring greater value to the company. It is an indisputable fact that more and more foreign-funded enterprises have set their sights on the third terminal. Sixty to seventy percent of the sales of OTC products of Xian Janssen Pharmaceutical Co., Ltd. are from the third terminal. As early as 2005, Sino-US S & K launched a series of research work on the rural market.

In the era of “basic drug marketing,” companies that have obtained basic drug qualification certificates, regardless of the size of the enterprise, really want to benefit from this “big wave Etao” new medical reform, and use this as an opportunity to drive leapfrog development, apart from In compliance with the basic medicine system, we must pay attention to the adjustment of product prices, product structure, organizational structure, commercial customers, and bidding strategies. We must also realize that “brand marketing” will become an influential factor in winning the bid, whether it can obtain pricing initiative, and whether The key marketing elements that determine the ultimate outcome are the policy opportunities that influence doctors and consumers to prioritize and capture.

The third strategic strategy: Focusing on the operation of OTC and the health brand

Representatives: Modified Pharmaceuticals, Jiangzhong Pharmaceuticals, Dong'e Ejiao, Yunnan Baiyao, Wanxi Pharmaceuticals, etc.

There is no suspense that using the OTC star products as the core to radiate the big health industry will become an important strategic choice for pharmaceutical companies.

As mentioned above, the growing awareness of self-medication and the great health awareness of consumers have greatly stimulated the market for OTC and nutraceutical products. At the same time, pharmaceutical companies give people a feeling of "drug taste", a psychological hint of "efficacy," and have the natural genes to run a large health industry. At present, this strategic path has been followed by many brand pharmaceutical companies and has achieved good results in practice.

While maintaining its absolute leading position and profitability in the Jianwei Xiaoshi segment, Jiang Zhong gradually shifted its strategic resource allocation to health care products and functional foods. With the promotion of newly-added products, Yuanyuan’s tax-inclusive sales exceeded RMB350 million, an increase of approximately 35% year-on-year. The second year sales of Ginseng Grass, which focuses on high-end supplements, exceeded 200 million (tax included). Ejiao is based on donkey-hide gelatin as its core, and it has entered large-scale health industry. The growth rate of health care products has reached 45%.

Compared with the former two, this area is more of a world of brands, with pharmaceutical companies that have one or more OTC star products, and has the natural advantage of expanding into the big health industry. The consumption of great health comes from the self-perception of consumers and the perception of the consumers. The pharmaceutical companies that are interested in entering this field will carry out targeted brand promotion to consumers and focus on terminal control and chain cooperation. At two levels, new competition will be launched.

Make a choice and stick to it

The three strategic paths that Fulai proposed are not the best, only the most suitable ones. Because each company's market environment, product positioning, and resource allocation are all different, it is necessary to select the most appropriate strategic path and supporting resources based on its own resources to create core competitiveness.

Dong'e donkey-hide don't rely on its unique resource advantage and brand advantage to enter the great health field, but it is difficult for other companies to copy; Sichuan Guojia Pharmaceutical Co., Ltd., which is served by Fortune, is a small-scale pharmaceutical company, but the company passed the traditional Chinese medicine resources in Gulin County. The meticulous integration, won the certificate of origin of protection of traditional Chinese medicine, established a position in the "harvesting yellow herb" difficult to shake.

Once the company's strategy has been determined, it will be selected, and if it is right, it must be done firmly and thoroughly. At the beginning of 2004, Kang Enbei proposed to be the first brand and flagship enterprise of Chinese botanical drugs, and developed Kangbai into an international-level botanical drug company within 10 to 15 years. With this strategic positioning, companies not only spread their marketing specifically, they also revolve around the goal of the plant pharmaceutical industry in terms of M&A integration, and adopt the “3+1” level acquisition strategy (plant drugs, exclusive varieties, brands, and marketing networks + Team), acquired Zhejiang Zuoli Pharmaceutical; in 2005, it also controlled 70% of the shares of Hunan Jiuhui Modern Chinese Medicine in accordance with vertical integration such as “planting-decoction-extraction-plant drug preparation” and acquired Shanghai Ankang Pharmaceutical Company. In order to establish a regional market network, occupy the commanding heights of the region. Around the "modern botanicals," the integration of force, so that Conba Bei billion of single species, of which to assume the shaping of Connba "modern botanical" brand image of the "Leprox" sales revenue of 300 million yuan .

The three major strategic paths are the trends and opportunities for the development of pharmaceutical companies. Enterprises must choose one as the core strategy. However, it does not mean that other strategic paths cannot be involved and that the basic drugs cannot be involved in the big health industry. Proper access to other paths can form good interaction with the main business, increase profits, and promote the development of the company.

Like Huabei Pharmaceutical, the eldest son of the New China Pharmaceutical Industry, and an old large-scale pharmaceutical state-owned enterprise, there are more than 60 catalogues. If we only do a good job of "the first supplier of essential medicines," it is undoubtedly the biggest beneficiary of the entire base drug expansion. However, North China Pharmaceuticals is not satisfied with this. North China is brewing and seeking changes. With the opportunity of the National Medical Reform, the industry scale will go up again and at the same time, through the operation of brand marketing, in the next five years, realize the “123” strategic goal, that is to polish “North China The “Pharmaceutical” signboard enhances the overall market competitiveness of companies in antibiotics, OTC, APIs, biologics, health products and other industries, achieving over 10 billion in 2011, over 20 billion in 2013, and over 30 billion in 2015. aims. At present, OTC varieties and nutraceuticals have achieved better growth.

In the key strategic selection period, different companies choose the strategic path to a certain extent, determine how far the company can go, and how big it is! The strategic path determines the direction and scale of the company's future development, is a forward-looking thinking to avoid competition and establish barriers, and is a powerful means of surpassing its opponents strategically. Peter Drucker, the father of management, famously said "Whenever you see a great company, someone must have made ambitious decisions!" It is time for pharmaceutical companies to make big decisions!