The OTC market is undergoing four amazing changes.

Release date: 2015-07-14

With the deepening of medical reform, the continuation of bidding, the impact of e-commerce, the tremendous changes in the network environment, the continuous growth of large health products and the market, the OTC market began to change and innovate.

In the future, the channel model of the OTC product marketing, the terminal promotion model, the branding model, and the changes in the retail supply chain demand have all seen some new trends.

E-commerce and Internet thinking become the standard for OTC companies

Due to the impact of the Internet, especially the mobile Internet, the collective anxiety disorder in the Chinese pharmaceutical industry is intensifying. The forum must have Internet topics, chat must talk about Internet thinking, and everyone wants to engage in e-commerce. The e-commerce business of pharmaceutical companies soon became the standard. The author believes that e-commerce will have the following trends in OTC enterprises:

1. Established e-commerce related organizational structure and staffing.

No matter how much you value it, if you don't even have a dedicated e-commerce organization and staffing, you can't really pay attention to e-commerce. No one actually started to operate, no matter how many e-commerce articles were read and how many e-commerce operations were understood, it was useless.

2. The price conflict between the e-commerce online channel and the physical store offline channel is increasingly inevitable and needs to be standardized.

The conflict comes from two aspects:

a, the online pharmacies of various chain pharmacies and big health products in the Jingdong, Taobao and other low-cost competition, the impact on the physical pharmacy is huge, and the psychological impact is greater than the sales shock, consumers take the online price to the pharmacy to find trouble, resulting in The pharmacy's confidence is reduced, which requires strong industrial prices;

b. Low-cost competition for e-commerce established by industry itself.

The ideas to avoid are as follows: product line operation, different product lines for online and offline operation, and online product line for online sales. This is the real e-commerce and independent channel. In addition, we can avoid the impact of our own e-commerce channel on physical stores from the mechanism. The method is that our e-commerce department only works on platform and technical support and customer service. It does not undertake sales assessment indicators, and does not fight price wars, especially This is especially true for products that have matured in traditional channels. This part of the work is the work of business electronics.

3. The means of brand and market communication and marketing management began to e-commerce or network.

The way to build a brand no longer depends on TV media. Enterprises have begun to use new media such as: Weibo, WeChat, microfilm, micro video, viral marketing, mail push, public word of mouth communication, various mobile APP, micro mall, WeChat public number, subscription number, WeChat circle, Baidu Direct communication, QR code information dissemination, search engine optimization, online and offline interaction, cooperation with big-name e-commerce, payment on top, WeChat positioning system, web conferencing, especially mobile Internet, etc. for brand communication, consumer education and Interaction, clerk education and nurturing, work communication and daily work monitoring of OTC representatives.

This is a concrete method for the landing of Internet thinking. It can also be seen as business electronicization, which is to improve work efficiency and efficiency by various network means.

Prescription drug companies have entered the OTC market

As the state cracks down on drug-based medical care, commercial bribery in the field of prescription drug marketing, and restrictions on bidding, such as the impact of delisting, the more and more companies are transforming into the OTC field. Including foreign companies began to pay attention to OTC products and marketing.

Since the bribery incidents involving foreign companies in GSK and other countries, in order to avoid risks, foreign companies have begun to pay more attention to the OTC market. And through the merger and acquisition of the rapid deployment of China's OTC market, such as Bayer's acquisition of the Yuhong incident. Even without commercial bribery, foreign companies have seen the rapid expansion of China's OTC market and the marketization of operations, and they have entered the OTC market. For example, the French Epson Group, etc., have begun to enter the OTC market in a strong way, and take advantage of the cultivation of its patient population.

Matthew effect is highlighted, industry concentration is rapidly increasing

The market economy and the improvement of concentration are inevitable trends. From last year to now, the pace of mergers, reorganizations and bankruptcies of the pharmaceutical industry, pharmaceutical commerce, chain has been greatly accelerated, and there is a tendency for mountains and rivers to come to the wind, such as chain pharmacies. There are rumors of selling high-quality chain companies with more than 500 million sales.

In terms of OTC marketing, in the future, OTC traditional strong enterprises with brand, strength and team will be in an advantageous position in the competition. More heavy products and their second-line products will be launched, and the OTC market will be firmly occupied. This may be Promote the "listing licensor system". In the future, only companies with product advantages or exclusive products can no longer obtain the market. Because the products of homogenization are numerous, the products that can't be done can only be approved. There is only one choice: the general agent of the product to the sales team. And the ability to sell businesses.

Due to the increase in chain concentration, it highlights the importance of KA's work. It does not cooperate with the big chain, which means giving up the mainstream market of OTC. Therefore, there is still a trend in the future that the KA team of major brand industries will rapidly expand, cover and serve. The number of terminals will also increase.

Because only the high-level attention of thrust, distribution, and chain is not enough, because there are 1200 high-margin chain drugstores, the brand's high gross profit has become the first standard of the chain, and there are too many high-quality products to form a store. Long, the clerk's distraction and market capacity sharing, so the importance of robbing the clerk's attention and eyeballs and the work of grabbing the terminal shelf is more and more obvious. After all, the drugs are mainly sold by the clerk! And this requires a large number of terminal teams, owning The executive OTC marketing team will become the core competitiveness of OTC product marketing.

Trends in chain supply chain and category cooperation in the future

Future chain pharmacies' requirements for OTC companies and OTC products are:

1. Incremental, flexible demand categories, quality brands are excellent.

The exclusive variety, the variety that the pharmacy has not yet fully met the demand, the variety of elastic demand, the incremental variety, the category of pharmacy category construction priority, and the existing pharmacy of various types (all kinds of drugs) have been constructed, non-brand high The wool product system has also been completed. The demand for category products is not strong, and there is no demand. There are only some upgrades and optimization requirements. At present, most of the chains lack data analysis, and there is no basis for optimization and upgrading. Category management can only be done by feeling and relationship orientation.

2, control or sales of products and direct supply, OEM success is the voice of the big chain.

Controlling sales and special sales are the normal demands of big chains to protect their interests. The industrial coping strategy is to classify product systems and supply different products in different chains. However, this differentiated product line strategy is a game for large enterprises, and small enterprises can only One city has a channel model to do it, or simply can't provide a second product line, so the future market is the world of big companies.

3, big health new category.

This is a market that continues to heat up. It is the inevitable choice for people after the awareness of health care for the whole nation! It is the only way for healthy China. The Chinese medicines, especially the ginseng, become the leading category of this category. Pharmacies need to break through the medical insurance policy to limit the problem of non-pharmaceutical sales, and learn to sell non-pharmaceutical health products. Pharmaceutical companies should develop products that are marketable, especially if they are to be sold in OTC channels. The qualifications for products are OTC products and products with blue hat health products. There are still many problems with the food name and it is difficult to break through.

4. Provide category optimization system marketing solutions, not just individual products.

That is to say, the product group cooperates and the gold single product breaks through. Breakthrough has a series of marketing programs to support. For example, the ground team is doing various marketing and promotion related work for the terminal, the sales skill training for the staff in the system, the promotion cost, the plan, and the material support.

5. Strong strategic cooperation will further become a trend.

Resource wars and resource investment have become issues of concern to chain pharmacies and industry. Strong alliance, investment and output, rapid cooperation, market cultivation, mutual compromise between industry and commerce, and mutual support have become a consensus. It turns out that all the self-righteous, refusal of high-quality brand suppliers, the door is difficult to enter, the face is ugly, things The chain pharmacies that are difficult to handle, complicated in mechanism, and inefficient are all lost or forced to sell.

Source: China Pharmaceutical Alliance

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