Reasonable distribution of benefits to strengthen the OTC market

Reasonable distribution of benefits Strong OTC market

December 31 this year is the deadline for replacement of many individual pharmacies GSPs. The tide of single-store closing has come, the chain process of pharmacies is accelerating, the outpatient quantity of outpatients at the primary level has drastically increased the dosage of drugs, and the convenience of community services has increased. The "Zero Spread" of drugs has had an impact on retail terminals. Compared with the heat of the hospital market, the OTC market is somewhat gloomy. The key to whether OTC market can be bigger or stronger is whether the design of OTC marketing value chain is reasonable and comprehensive.

The main benefit of the chain requires a bowl of water

To achieve a win-win marketing, pharmaceutical companies must improve the organization's system operation capabilities. This requires that marketing must face the entire supply chain and value chain, not only the development and application of the value chain, more importantly, continuous construction, can make each supply chain All have a fair interest.

The commercial companies that do hospital distribution will receive only about 8% of the delivery fee, regardless of the manufacturer's bid price, and the manufacturer's tender offer will also reserve this price space. The commercial companies that do pharmacy distribution have no such stable income. Brand OTC varieties are often purchased at high prices and sold at low prices. Losses are the norm; non-brand varieties can raise prices slightly, but sales are limited. Brand manufacturers are guilty of price order, and non-brand manufacturers are irritated because the OTC supply chain cannot satisfy the interests of various owners.

The value chain of each link in the industry chain is the basis for the survival and development of the company. Only when there is value can it be integrated into the industry chain. Otherwise, it will be eliminated. This is the supply chain management. The key lies in enabling each chain owner to generate value. Evaluating whether a company's supply chain has a problem or whether it has system capability depends on whether or not the internal links of the company can be referenced to market standards, whether they can fully cooperate with each other, and whether they can extend to suppliers, distributors, retailers, and customers. Can customer satisfaction.

If OTC marketing can provide reasonable benefits to all chains like prescription drug marketing, the continued growth in sales is not a dream. Such as Amway's products, little difference, the price is high, why can break more than 200 billion yuan in sales in China? The key is a win-win situation. All parties in the supply chain gain value, and marketing can be efficient, otherwise it will create faults and affect sales. Simply put, marketing creates value. The value is whether it can satisfy every customer in the chain.

Therefore, OTC marketing should examine its performance from four perspectives: learning and growth, business processes, customer satisfaction, and financial indicators. From the financial indicators to see profitability, from the internal management and business processes to see operational capabilities, from customer satisfaction to see the competitiveness, from learning and growth to see sustainable development.

"Three legs" create a good brand

OTC is mainly self-selected and self-paying by consumers. It is different from the passive selection of prescription drugs and mainly paid by social insurance. The purchase of OTC varieties, consumers pay more attention to efficacy, price, OTC varieties of the big brands are often the national Pharmacopoeia standards setters of similar species, product quality is excellent; prices are generally 15-30 yuan, according to the latest announced the Guangdong Provincial Drug Exchange tender Regulations, daily treatment cost base medicine is less than 1.5 yuan, non-basic medicine is less than 3 yuan belonging to low-priced drugs, medical institutions can choose their own products and regulations and production companies, which is beneficial to brand enterprises.

OTC price is too high, consumers do not necessarily buy it, many Meng marketing experts will be speculation, but often stop advertising, sales also followed. The customer is the real terminal, and it is the key link of the supply chain. Allowing customers to receive real benefits is the source of the brand's continuous increase.

In addition, the retail terminal is the main battlefield for sales of OTC. Although affected by national policies, sales growth has slowed down in recent years, but with the expansion of the entire market "cake" and the convenience and good service that the hospital can not match, the sales of chain terminals. The amount is still rising. OTC companies can only strengthen the strategic cooperation with chain pharmacies and ensure the interests of the main chain retail chain's main retailers, so that products can be well displayed, enthusiastic recommendations, and thoughtful services. On the contrary, they are used for special price and long-term low prices. Sales, hiding in the most conspicuous places on the shelves, etc., not only affect the price system of hospitals and distributors, but also lose more contact with consumers.

Many OTC brand companies believe that they have a brand and can bring traffic to the business, regardless of pharmacy operating costs and normal profit needs. The long-term sales of pharmacies at abnormal prices will lead to a chain reaction of other chain owners throughout the supply chain, leading to indifference. Products will be attacked by groups and problems will eventually be replaced.

At the same time, manufacturers should follow the 16-character principle of cooperation with distributors: network construction, information sharing, brand creation, and win-win results. With the dealers to build a sales network to strengthen distribution, dealers are manufacturers of "reservoir", only played back the role of payment and distribution, more secondary distributors are access to the terminals of the "water pipe", need to Manufacturers build together.

The strengthening of dealer information communication mechanisms, in addition to invoicing and salesman management, especially in government affairs into the medical insurance, directory, bidding and other aspects to create better marketing conditions for customers or provide first-class differentiated services; We will jointly carry out philanthropy marketing, work together to build brands, shape images, and finally realize mutual benefits.

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