Drug Centralized Bidding And Pharmaceutical Companies Marketing Countermeasures

Research Background In an attempt to restrain the unhealthy tendency of increasingly high drug prices, thus lessening the financial burden on the citizens while ensuring the quality of purchased drug for public use, China's Ministry of Health, in conjunction with State Economic and Trade Commission and State Drug Administration, started in 2000 the enforced centralized tendering process for drug purchasing, by The Tendering Law of PRC. In consequence of this reform of drug purchasing system, drug producers as well as distributors have to adapt to the new practice of business, so as to survive the intensive competition. It is therefore very important for them to find out the determinants to the winning of tenders. ,The purpose of this study is to find out the key factors and their weight, with which I can develop implications for the relevant companies for their future marketing strategies. Methodology This study include two parts: the first part is the statistical analysis of the data from 2003 tendering results of Beijing Centralized Drug Purchasing Process. The second part is a survey, about similar influence factors, designed and done personally and luckily supported by many respondents. . The data from both studies are processed with the SPSS software program in analysis and thereafter interpreted by the author under the guidance of B-To-B marketing theory and the relationship marketing theory, etc. Research Findings Part I The important factors which may influence a medicine can award of contract or not: the quality degree of medicine, size of manufacturer enterprises, the number of the same sort of medicine which take part in the the tenders, the dosage form of medicine , the specification, the unit which take part in the 'calling for the tenders'. Through the test, these factors have significant difference between the group which award of the contract with which not award of the contract. The tender price has a little influence. Accroding to the result of regression analysis, the degree of these factor :1.the number of the same sort of medicine which take part in the the tenders2.quality degree of medicine 3.size of manufacturer enterprises4.the unit which take part in the 'calling for the tenders'5.The tender pricePart IIThe specialists have important influence, the views of each sort of specialist is different.Suggestions for the enterprisesProduct: develop the degree of the medicine quality and think high of the drug exploitation.Price: the influence of tender price is little, enterprise should chose the modicus price, not the lowest price.Place/channel: chose the commerce which have better reputation, service and brand.Promotion: use the strategy of relationship marketing , through the personal promotion to provid clinic expand and service to the doctors.Public relation: use the strategy of relationship marketing to create the favourable image of public relations.Power: use the strategy of relationship marketing to implement the win-win between government and the enterprises.