Research On Marketing Transformation Of Sinopharm Group Xiangtan Co., Ltd. In The National Essential Medicines System

In August2009, The National Development and Reform Commission and othernine ministries issued Implementation Opinions on the Establishment of NationalEssential Drug System. Since then, the essential drug system was formally establishedand implemented gradually in China. After more than three years, the system hasachieved initial results, which made everyone enjoy China’s basic medical insurance.From another perspective, the implementation of the system brought newopportunities and challenges to the pharmaceutical companies. The size ofpharmaceutical market was increasing, but the profit of the drugs were cut downsignificantly. In this case, which strategies should be chosen between the price andthe size is the new problem.Take Sinopharm Xiangtan Co., Ltd. for example, It has made great progress onmarket development in the basic medical institutions in the past three years, butbecause of these hospitals’ slow pace of payment,the company was under high-riskpressure. Also on the primary care market, Sinopharm Xiangtan Co., Ltd didn’t dovery well.So what should the company do in the next few years become a veryimportant task.Therefore, this paper aims to solve the problem of Sinopharm Xiangtan. Thearticle introduces the basic theory of the Essential drugs and the marketing theory ofpharmaceutical industry. And after the present marketing situation of SinopharmXiangtan were analyzed, the author analysis the changes of marketing environmentin quantitative and qualitative methods. Finally the text constructs the strategy of themarketing transformation of Sinopharm Xiangtan.