Six major paths for pharmaceutical companies to reach 1 billion

In the next 10 years, it will be the 10 years of continuous high growth of the Chinese pharmaceutical industry, and it will also be 10 years of great consolidation and mergers and acquisitions of the Chinese pharmaceutical industry. In this wave of development of big fish eating small fish, 1 billion yuan will become the golden point to determine the fate of pharmaceutical companies. How to cross the threshold of one billion yuan and embark on the road to everlasting growth in infrastructure is a titan to many entrepreneurial enterprises and the second long march!

If there is a zero-minded mentality beyond the threshold of 1 billion yuan, we must base ourselves on the existing foundation and forget about the glory that once occurred. We must achieve new scale growth at a new starting point. Specifically there are six basic paths:

Path one: Deep digging star products, the market is climbing new heights

Star products are the foundation on which companies depend for their survival and development. Most of the billion pharmaceutical companies have one or more star products. Sales of single products are at least over 100 million and even hundreds of millions. They have become leaders in the category market. The establishment of reputation and the influence of channel terminals have been relatively mature. How can such star products reach new heights? The key lies in re-examination and insight into the category market trends, competitors, and their own status quo and strategic new planning.

Look at the growing trend of the category market in which star products are located.

Is the growth trend of the category product of the star product truly a sunset market? If the market still has a good momentum of growth, it is necessary to strengthen the confidence from the leader of the category to the absolute boss. Confidence is more important than gold! Confidence is the cornerstone of new heights!

Second, there are no weaknesses or mistakes to be found in competitors.

Experts do tricks, not who's technology is better, but to see who has more flaws! Market growth is a process of shifting from one side to the other. Mistakes of opponents are the source of their own growth! In this regard, the key is to establish a timely information feedback mechanism and tactical countermeasure mechanism. Once the opponents make mistakes, they must immediately attack and chase!

Third, we can see whether the product itself can expand under the new market environment.

The growing popularity of the people's health-keeping fever and consumer self-medication has made big health and big brands a new big future for pharmaceutical companies. Under the new market environment, pharmaceutical companies must break their thinking, break through the boundaries of medicine, and conform to the characteristics of the era of drug health and rapid digestion, and work hard in the use of the product itself and the frequency of use. Tasly Compound Danshen Dripping Pills, Buchang Naoxintong, and Kuweiweikangling are the star products of the company. By taking the road of healthcare, routine, and treatment, we can achieve sales of nearly 1 billion yuan in single product sales. From the dominant class boss to the absolute boss!

As a star product of Jiangzhong Pharmaceutical, Jiang Zhong Jianwei Xiaoshi has once again faced the problem of climbing new heights. In 2002, after a new assessment of the market by Jiangzhong Pharmaceutical, it was found that the concentration of aiding and digesting the market was relatively low and the industry still had more room for development. At the same time, its main competitor, Mobutine, turned its product positioning to treat stomach diseases. The pharmaceutical company immediately established a new brand positioning for the Jianwei Xiaoshi tablets, established the core value of “day-to-day digestion”, and set a strategic goal to help digest the market leader. From this market performance out of control, sales in 2002 exceeded 300 million yuan, in 2008 exceeded 1 billion yuan, becoming the absolute leader in the category market!

For many companies, it is definitely not a dream to have more than one billion stars. The key is to dare to think! How big is the dream, how big is the stage! With regard to the specific method of how a single product will pass 1 billion, there will be a special article to discuss it. We will not repeat it here.

Path 2: Relying on star products, build a family of categories

When a star product reaches the throne of a brand champion, the marginal benefits of sales growth begin to drop sharply. What should be done in this situation? By relying on star products to build a family of categories and establish a professional image and industry discourse right to solve a certain type of problems in the minds of consumers, it is also possible to realize the goal of achieving a business of over one billion yuan.

Star products like "1", relying on star products, build category families, is to add "0" after this "1", and ultimately the formation of "1 ton N" powerful family. Yunnan Baiyao has a "1" of baiyao, eventually forming a family of baiyao containing paste, aerosol, toothpaste, and band-aid; Dong'e-e'er has a "1" of Dong'e-e'er, and eventually formed a peach cake containing peach blossoms. Ejiao family, including Ejiao dates, etc.; Wanxi Pharmaceutical has a monthly "1" of pain and Jingjing particles, eventually forming a dysmenorrhea family with sanitary napkins and herbal brown sugar.

Relying on star products, creating a family of categories, the essence is category innovation and value innovation! The same problem, different solutions and consumer experience, often contain huge market potential! From Yunnan Baiyao Ointment to Yunnan Baiyao Aerosol, it did not break out of the scope of bruises, but it created a brand new category that provided a new value experience, seized a brand new consumer group, opened up a brand new Market!

Therefore, relying on celebrity products to build a clan family is not only a way to consolidate the industry’s position in the celebrity products and reinforce brand positioning, but also a broad road to market expansion, increase in production and efficiency, and achieve the leapfrog threshold of 1 billion yuan.

The specific practical methods for single product extension will be discussed later in the article.

Path 3: Build a new star to achieve more children and more happiness

If it is indeed difficult for the old products to increase efficiency, it is necessary to re-position the product strategy, create new star products by tapping, and open up new roads for the company to cross the one billion gate.

In the process of building a new star product, there are great potentials in the fields of great health and large health care. The return of the current boom in the consumption of Chinese medicine, and the increase in self-medication and self-care awareness among consumers, have drastically increased the demand for large health and large health care products. Therefore, pharmaceutical companies should focus on this when developing new products. Field tilted. At present, Jiangzhong Pharmaceutical, modified pharmaceuticals, and Renhe Pharmaceuticals have already taken the lead in the industry.

In order to further enhance the sales scale of the company, Jiangzhong Pharmaceutical has quickly taken the road to great health and great health care, and successively introduced health care products such as Liangqi, Yuanyuan and Shenlingcao. In food, it has recently developed health products such as Ruijie hygiene wipes and Puka Tanaka.

Amending the pharmaceutical industry's adherence to traditional fields such as gastrointestinal medicine, gynecological medicine, and cold medicine, in recent years, it has introduced such products as Youzhi and S&R, and other products for children's health care, such as tea garden warm ginger tea, and Jibaicao cosmetics. We have made great efforts to expand into health foods, daily chemical products, and other areas, and have completed the transition from a modified pharmaceutical industry to a revised health industry group.

In fact, the superstar companies at home and abroad have a lot of star products that have sold more than 100 million yuan. For example, Johnson & Johnson owns celebrity products such as Tylenol, Motilinoline, Pevisone, Miconazole, Bundy, and Celebrity, etc.; Sino-US-Kenske owns Fenbid, New Contac, Kant, and Contec Clear. , Lan Meiyi and other single product sales of hundreds of millions of star products; San Jing Pharmaceutical owns gluconate sulphate, calcium gluconate, Shuanghuanglian oral liquid and many other single product sales of billions of star products.

It is the possession of a number of single-product sales of billions of star products that have laid the primacy of these pharmaceutical companies in the industry. If the success of a celebrity product is a symbol of a company moving from food and clothing to a moderately prosperous life, then only the success of multiple celebrity products can ensure that the enterprise has turned from a well-to-do to a prosperous and even an industry giant! By creating new star products, a multi-subsidiary star product cluster will be formed, so as to firmly grasp the market discourse right across more than 1 billion!

Path 4: Relying on brand influence, launching brand second-line drugs

In terms of new product development, in addition to creating new star products, relying on brand influence to launch brand second-line drugs is also a very good path. For many companies, the input-output ratio of this route is even higher!

The brand second-line drug is the second-line drug brand of the brand manufacturer, and the brand influence of the shared brand manufacturer is shared outside the country, and the second-line status is included, and the non-enterprise owner pushes the product. In the game process of major retail terminals such as pharmaceutical industry companies and chain pharmacies, the brand's second-line drugs have gradually become the new darling of major retail terminals such as chain pharmacies and become a new growth point that both parties are satisfied with, thus giving business relations to the pharmaceutical industry. Brought new signs.

Pharmaceutical companies rely on the strong influence of existing brands to launch branded second-line medicines. On the one hand, they can meet the profit requirements of chain pharmacies and retail terminals through second-line drug varieties, and strengthen the enthusiasm and boost of channels. On the other hand, it can make full use of the idle product batch number, expand the company's overall market share, and at the same time make up for the lack of profit for the first-line branded products.

The key to the launch of branded second-line drugs is to successfully seize the market share of SMEs with less brand influence through regional differences, crowd differences, channel differences, price differences, etc., and become a new strategic growth for the company after star varieties. point. At present, Tongrentang Pharmaceuticals, Renhe Pharmaceuticals, Modified Pharmaceuticals, Sanjiu Pharmaceuticals, Baiyunshan Pharmaceuticals and other well-known companies are using their existing brand and resource advantages to actively develop brands with major retail terminals such as drug stores. The promotion of second-line drug species.

The more large-scale pharmaceutical companies, the more product approvals in their hands, relying on existing brand influence, vigorously launch brand second-line drug types, and can form a strong long-tail effect in the market, change idle assets into value-added assets, and be successful for enterprises. Across the threshold of 1 billion yuan, the threshold has continued to increase.

Path 5: Based on the main position, open up the Xinjiang region

Many pharmaceutical companies have gradually formed their own strategic positions in the long-term development process. Some enterprises have their main positions in the third terminal, some enterprises are in hospital terminals, and some enterprises are in OTC terminals. However, when the main position is relatively mature and production is difficult to increase, exploring the Xinjiang region will become the only way for the company to cross the threshold of one billion yuan in the next step.

Kangzhi Pharmaceutical is the invisible leader in the field of children's drug use. For many years, the market focused on the third terminal, Rui Zhiqing cleared a single product, and sales at the third terminal reached about 500 million yuan. One of the main purposes of Kangzhi Pharmaceutical's incorporation of Fulai is to polish the brand, to secure the third terminal, to enter the urban terminal and chain pharmacy, and to continuously increase the market share of the company. At present, well-known pharmaceutical companies, such as the Chinese medicine industry and the magical medicine industry, are embarking on the path of expansion from the third terminal to the city terminal.

In recent years, Guizhou Guizhou has become a star enterprise in the field of OTC by building Keke capsules. In recent years, in order to further expand the scale of sales of the company, Guizhou Han has begun to enter the hospital terminal. Yangzijiang Pharmaceutical, which has been intensively working at the hospital terminal, has also been actively transitioning to OTC terminals in recent years.

Xian Janssen is the earliest foreign drug company to enter China, and it is also the most successful foreign drug company in its localization. Compared with Bayer, Pfizer, etc., which are known for prescription drugs, and Sino-American SSK and other OTC-based absolute foreign-funded pharmaceutical companies, Xian-Janssen always adheres to the same business strategy of prescription drugs and OTC, and through academic promotion and OTC brand communication, it makes Great achievements have been made in both markets.

The development of the Xinjiang region is not an easy task, and it is often faced with the re-building of marketing teams and channels. It requires a certain process, but once it is successfully developed, it will often bring a new world to the enterprise. The city terminal and the third terminal are equally important. Prescription drugs and OTC products will advance together, which will not only establish a good brand influence in the industry and consumers' minds, but also earn high profits and provide abundant cash flow for the company. Based on the main positions and developing the Xinjiang region, it is also a rule of thumb for pharmaceutical companies to cross the threshold of one billion yuan.

Path 6: Capital Operation, M&A Expansion

In the course of a company's leapfrogging the threshold of one billion, if the company has strong capital, it can further consolidate the market position of its star products through capital operation, mergers and acquisitions, and tap into new star products. This is also to achieve the scale of the company's growth. Strategic approach.

In 2010, GlaxoSmithKline invested US$70 million to acquire Nanjing Meirui Pharmaceutical Co., Ltd., which is famous for producing urinary and allergic drugs. It is hoped to expand its strength in this field through capital acquisitions and further consolidate its market position as a star product. .

Tai Tai Pharmaceutical is a typical health care product company. Although the health care products are very profitable, the sales of the oral liquid and the Jingxin oral liquid are all good. However, in order to seek breakthroughs in the prescription and non-prescription drug markets, the wife's pharmaceutical industry has extended its development space to biochemical medicine. As a result, it has held 19.343% shares of Livzon Group through the secondary market acquisition, becoming the largest shareholder of Livzon Group. Tai Tai Pharmaceutical's move is aimed at Livzon Group's well-established sales channels for prescription drugs, as well as celebrity products such as Livzon Dele and Liju Fungus.

Ammonia Jinmin granules have been hailed as the latest generation of products for the treatment of pediatric colds, and its approvals are only held by a few companies such as Kangzhi Pharmaceutical. Kangzhi Pharmaceuticals has acquired the company's star product, ammonia golden sensitive granules, in order to grow bigger and stronger. The capital increase of Shenyang Yanfeng Pharmaceutical Co., Ltd., which also has approval of ammonia golden sensitive particles, not only reduces the threat of potential competitors, but also expands its own production capacity. It has initially established the dominant position in the category of ammonia golden sensitive granules and can serve two purposes.

Capital operation, mergers and acquisitions expansion is a way to achieve the fastest growing scale of enterprises. For companies with strong capital, as long as there are good product resources worth investing, they should be decisive, and they must submit a new product by themselves. the cost is too high!

In the next 10 years, it will be the 10 years of continuous high growth of the Chinese pharmaceutical industry and 10 years of big mergers and acquisitions of big fish and small fish. Pharmaceutical companies should find their own path of scale expansion in the above five paths according to their actual conditions, so as to cross the 1 billion yuan golden separation point as soon as possible and embark on the road to everlasting growth.