Marketing Strategy And Tactics Research Analysis For Dosage Business Of Pharmaceutical Company H

As a public company listed in China's domestic stock market, Company H reached 3.184 billion RMB annual revenue in Y2010 which was ranked in top 100 in China pharmaceutical industry. Company H is running 4 business units:active pharmaceutical ingredient, pharmaceutical dosage, commercial distribution, chemical products.In the 4 business units, active pharmaceutical ingredient section takes leading position in both China and global market which accounted for more than 50% of the company total sales revenue.In the business section,anti-inflammatory drug,cardiovascular drug contribute magor part revenue. In the planned economy era, pharmaceutical dosage business of Company H also had been taking industry leading position in revenue size, profitability and brand awareness. After entering the market economy, H faced low growth, low profitability slow action to market environment changes and lost the competitive advantages. The management team early in the 1990s had made much effort to develop pharmaceutical dosage business, and set target that the pharmaceutical dosage contributes 50% sales to whole company revenue. However, less right version, proper marketing strategy, Company H experienced low growth in the category and finally only achieved 637 million RMB in Y2010. This revenue gap to competitor is increasing.Recently, Government environment regulation is becoming tougher which increased cost of active pharmaceutical ingredient business and negatively impact whole company profitability. Developing new business is becoming critical for Company H. Consequently, management team set strategic objective:leverage the existing advantages of active pharmaceutical ingredient business, concentrate resources to support pharmaceutical dosage rapid growth. By Y2015, the pharmaceutical dosage business should contribute 50% total company revenue.This paper attempts to apply learned theories with systemic analysis and develop effective marketing strategy and implementation tactics. This strategy will support company H 30 billion sales achievements of pharmaceutical dosage business by Y2015.In the research study, both annual financial report data and questionnaires data on Company H have been collected. In the way, we have drawn a clear picture or Company H historic and current situation. Also, the study collected key data of competitors, government regulation, and industry trend via competitor published annual report, government and industry statistics reports. Michael Porter's Five Forces Model is deployed for macroeconomic, industry competition analysis. SWOT model helped to clarify outside environment and internal capabilities. In the way, key successful factors are defined and finally helped on marketing positioning, strategy and tactics development of pharmaceutical dosage business.There are three innovative findings in the paper:"Differentiation and Focus strategy" is developed as essence of marketing strategy. Leverage corporate self-produced raw materials, existing anti-inflammatory drugs and cardiovascular drugs product line, focus on developing oncology business which is showing great market demand and potential. It will be first time for Company H to develop business with clear marketing strategy.Secondly, beside independent in horse R&D, the study proposes to quickly develop product line through corporate mergers and acquisitions.Finally, big product branding marketing strategy is proposed. The strategy will optimize corporate marketing, distribution network, outlets resources to develop product with big sales and finally enhance corporate image and influence in industry. With the principals of the strategy, Company H will improve marketing strengthens in both theory and practice.