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Research On Marketing Of The Third Terminal Of The Modern Medicine Circulation

Posted on:2015-03-17Degree:MasterType:Thesis
Country:ChinaCandidate:D DuFull Text:PDF
GTID:2269330428479201Subject:Business administration
Abstract/Summary:PDF Full Text Request
China’s pharmaceutical market has experienced3kinds of structure:planned economy, free competitive market and now monopolistic competition market. Current Health Care Reform, New GSP and GMP policy bring not only hash challenges but great opportunities to the players in China’s pharmaceutical market.Before reaching the final users, drugs need to go through three processes:production, transportation and distribution, controlled accordingly by drug manufacturers, drug dealers and drug terminals.Normally drug terminals are divided into three types:The First Terminal Market, including large hospitals in cities;The Second Terminal Market, referring to drug retailers or chain pharmacies in cities;The Third Terminal Market, terminals apart from the First Terminal and the Second Terminal, including community clinics, small private hospitals, and health centers etc..Recently the Third Terminal Market is expanding with the Health Care Reform and the New Rural Cooperative Medical System. And I expect that the sales in the Third Terminal Market will increase to100billion RMB, accounting to about one third of the total sales in the pharmaceutical market.The growth of the Third Terminal Market will change the structure of drug channels and the strategies of the players in the pharmaceutical market, asking the players in the market for higher level operation and more effective marketing management.Moreover, the sale from the First Terminal Market is declining after the GSK event, because of the decrease of unreasonable drug bills, driving the overcapacity pharmaceutical manufacturers to the Third Terminal Market.The paper analyzes the characteristics of the Third Terminal Market, including the main players, the channels and the risks in the market. Based on that analysis, the paper gives the following solutions for pharmaceutical manufacturers to solve current marketing problems they are facing in the Third Terminal Market. 1, Pharmaceutical manufacturers should set up Government Affair Department, which is responsible for strategies making according to the policy changes.2, Pharmaceutical manufacturers can still earn profit from essential drugs bidding system and provincial drugs distribution permission, hence the manufacturers had better get their drugs admitted in the Essential Drugs List and provincial drug distribution platforms.3, Pharmaceutical manufacturers need to plan different marketing strategies for essential drugs and non-essential drugs.4, Guided by the new drugs policies, health centers or clinics in rural area will become important clients for pharmaceutical manufacturers. To reach sale terminals in rural area, pharmaceutical manufacturers must admit new sale channels.5, Professional dealers for the Third Terminal Market would be essential in marketing battles among pharmaceutical manufacturers, because the characteristics of the Third Terminal Market are different from the other two types:broad area, poor education, low income, massive distributors and obstructed promotion channels.6, Pharmaceutical manufacturers must improve their distribution ability in the Third Terminal Market:on one hand, set up distributions companies and equip more vehicle s for the Third Terminal Market; on the other hand, cooperate with locals and reduce intermediate expenses to decrease the final price of drugs.The competition among pharmaceutical companies is intensive while the number of new incomers is growing. To win more shares in the Third Terminal Market, players need to lay out suitable strategies basing on careful marketing research, and then execute those strategies with detailed marketing plans and enough resources.
Keywords/Search Tags:The Third Terminal Market, New Rural Cooperative Medical System, Medicine circulation, Channel
PDF Full Text Request
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