Depth Distribution - Over-the-counter Medicines Marketing Road

OTC (Over The Counter is referred to as OTC) markets emerged after the Chinese government classified the drugs in 1999. Although the market develops only a decade or so, the speed of development is very fast. The national drug sales has increased in the last ten years from 10 billion RMB to more than 100 billionRMB and accounts for more than 20% of the total. Moreover, it continues to expand. Enterprises which have paid more attention to such an attractive market have resorted to all sorts of magic weapons. A variety of marketing tools have been used one after another:from the traditional marketing 4P’s theory to the integrated marketing theory of 4C; from the lean marketing to the fine marketing... ...modern marketing methods are fully used in the classic theory of the Chinese medicine market. With the development and innovation of marketing model, the OTC market is more competitive. Although a lot of marketing methods have been used, many companies are eliminated. As a result, pharmaceutical companies need a new marketing model to open a new path to survive.Depth distribution also known as the distribution of rolling regional sales (ARS), which is organized to build a marketing value chain, to enhance the value of customer relationships in order to control the terminal, to roll and foster the development of markets, and to get the access to comprehensive market competitiveness and the impact of regional market. Depth distribution is still a new concept in China, so there is few relevant theoretical and practical study of depth distribution, especially in the field of OTC medicine industry. In practice, more in-depth distribution is not used in the practical life. Although some companies have in-depth distribution of ideas, the actual operation has not got its desired results. Combined his 10 years of medicine industry experience and cases of famous medicine companies, the author of this article will focus on the OTC medicine marketing model-the depth of distribution.There are four parts in this dissertation:the first part is the introduction to the background of this dissertation. It will discuss the methodology used in this dissertation. At the same time, it will introduce the status qua of the Chinese medicine market, especially in the OTC market. At the end of this part, it will discuss the importance of depth distribution. Based on the theory of depth distribution, the second part will introduce the origin, development and marketing strategy of depth distribution. According to Chapter Two, Chapter Three will further research and analyze application of depth distribution in OTC marketing, and discuss the process and function of depth distribution in detail combined with the design, management, implementation and development of depth distribution. This part is the key chapter in the dissertation combined with the auther’s personal experience and case. Chapter four will reach the conclusion and point out the limitations of this study.The main contribution of this dissertation is to give some suggestions to depth distribution in the real life with the combination of theoretical analysis and the status quo of medical markets. Based on the research and analysis, the author has arrived at the following conclusions: first, it is of great importance on how to innovate marketing methods because of the expansion of the Chinese medicine market. Second, according to the status quo of OTC marketing, the depth of distribution is not a simple distribution and in-depth, but the management with the integration of products, market and economic laws. Only in this way, will it fully reflect the meaning of depth distribution. Third, enterprises should determine the depth of distribution based on its actual situation, so that the distribution strategy and business development strategies can be matched. Enterprises should have the systemic depth distribution. Moreover, management depth and the depth of distribution should be matched.