Pharmaceutical Review

March, 2007

How to Increase Sales and Profit of Pharmaceutical Enterprises by Marketing Performance-enhancing System

Profit growth is a pressing problem faced by China’s pharmaceutical enterprises.

China’s pharmaceutical enterprises experienced declining drug price and policy adjustment in 2006. Acquisition, production line restructuring and cost cutting have become hot words. Looking into 2007, governments will continue strengthening control of the pharmaceutical industry, further curtailing prices (including pharmaceuticals and medical apparatus) and expanding the scope involved; Grade-III hospitals, the main sales outlet of pharmaceuticals (especially prescription drugs) in the past will tumble in the overall drug sales, while community hospitals and retail drug stores will increasingly become the key channels of pharmaceutical enterprises. Meanwhile, foreign-funded enterprises, joint ventures and domestic pharmaceutical companies will face both big challenges and opportunities.

In this situation, the growth mode of China’s pharmaceutical enterprises will change to a certain extent in 2007. The marketing performance-enhancing system of Roland Berger Strategy Consultants will be an important tool to help them achieve sales and profit growth. The system consists of two core part: “Consumer Insight” Analysis and “Marketing Effectiveness” Analysis.