Strategy Study Under Hierarchical Healthcare System

With the fast growth in terms of both national economy and people’s living standard in the country, China has now entered the era of aging society, accompanied by high incidence of various diseases.M, developed originally by E company, provides effective treatment option for the management of peripheral neuropathy, which has been extensively applied in clinical practice.M product has been launched in China for 20 years and has become the key contributor to the revenue of E company, while assuming the critical pressure of sales target.However, whit the new norm of economy emerging in recent years in China, as well as the continued reform in healthcare system, pharmaceutical market has observed decreased growth, from previous annual growth rate of 20% to 5%in 2015. In addition to such challenges as faltering growth and volatile external environment, M has also been facing the fierce competition from local generics and local medicines in the same medicinal category, as well as reducing investment from the company.The current issue that need to be addressed is to ensure optimized growth rate of M in such a challenging environment. This paper aims to analyze both internal and external environment of pharmaceutical industry and identify the strength, weakness and growth opportunity of M, based on in-depth evaluation of eco-system of M, as well as such analytic marketing methodologies and tools as product life cycle,4P, SWOT and PEST.In light of the strategy of "hierarchical healthcare system" prompted by the government, we will also evaluate the potential, scale, customer group and needs in the market of primary healthcare institutes, so as to prepare the marketing strategy tailor made for this specific market and ensure the effective implementation of the strategy integrated with an internet+perspective. In short, the final purpose is to secure the market status of us as the No.1 Japan pharmaceutical company in China, based on identifying new growth opportunity and ensuring the sustained sales increase of M in this extremely competitive market environment.