Study On Price Decision Of In Vitro Diagnostic Reagent

In recent years, the pharmaceutical market has been the key focus of national policy. This paper starts from the basic situation of in vitro diagnostic industry, introduces the challenges and opportunities faced in vitro diagnostic reagents and the present status and future prospects of IVD industry. Taking RDSH Company as an example, this paper combines theories from marketing and product pricing, describes the influencing factors of price decision of in vitro diagnostic reagents in detail. The internal factors of the price decision such as the pricing target, marketing mix strategy, etc. So are the external factors affecting the price decision, such as market demand, competitor's products, price, etc. The analysis of pricing methods of medical service in China is conducted, as well as the effect of the distribution model of in vitro diagnostic reagents on pricing.Pricing strategy is introduced with an example of procalcitonin (PCT). Beginning from selecting pricing objectives, RDSH then determines the demand, estimates the cost and analyzes the competitors' prices. Eventually, based on government policy and medical payment standard, the distributor price is determined and the actual sales performance is discussed.The direct price cutting strategy is compared with the laddering rebate strategy, focusing on the analysis of the different influences of price decision on sales. A control group is opted simultaneously with three price discount groups. Through data analysis, the performance of these two price discount policies is found to vary in different projects. With the theory of price elasticity of demand, this paper judges which policies have achieved the expected discount effect. At the same time, an interview with the market and sales staff is conducted and the management strategy of the price discount policy is further summarized.To sum up, from the perspective of an internal practitioner in IVD industry, this paper takes RDSH as an example, gradually develops an argument point by pointing on pricing and price discount of IVD reagent project. The conclusions of this research can be applied as the pricing strategy for other IVD companies.