A Research On Marketing Promotional Model Of Pharmaceutical Market In China

Recently, under the over-all environments of China's medical reform, the competition in pharmaceutical industry becomes more and more fierce. All MNC pharmaceutical corporations face the opportunities by increasing disease treatment rate, growing health care investment from Government, and citizen personal health care expenditure increasing in China. Meanwhile, they also face many challenges such as price cutting risk due to provincial bidding, hospital 2^nd price negotiation, hospital volume control, and corporate internal compliance restriction. All MNC pharmaceutical corporations are actively looking for innovative business model to overcome all challenges as well as to capture the market opportunity to ensure their business target achievement and sustained growth.Novartis is the No.1 pharmaceutical corporation in global. It always devotes in providing the best treatment and medication to patients. China's market is Novartis most attentional market for a long time. Since 2015, China market became the No.4 biggest market of Novartis in global behind American, European, and Japanese market. In coming 5-10 years, Novartis will keep high attention on 3 core aspect of performance in China such as the mature products sustainable contribution, new product's launching synchronously with global, and the R&D for innovative medication for China's specific disease. In the past, Novartis?China?'s achievement and growth was leading position among all global business division. But since 2015, Novartis?China? happened bottle-neck on achievement and growth. In additional, under the over-all environment of China's medical reform, Novartis?China? still faces new product launching delay because of critical challenges by bidding and RDL issue.This paper selects the case of Novartis?China? HTN BU marketing promotion practice according to relevant marketing theories to try to find out an innovative marketing promotional model in pharmaceutical market. This paper analyzes about the pharmaceutical market macro external environment, the competitiveness of different aspects, and the product/place/price/promotion of Novartis?China? HTN BU by the tools of PEST, Five Forces and 4Ps to figure out the challenges and opportunities for Novartis?China? HTN BU. Meanwhile, this paper does the analysis and evaluation for the "Pay for Performance" promotional model of Novartis?China? HTN BU to find out how the "Pay for Performance" promotional model helps Novartis to capture marketing opportunities or avoid the marketing challenges to keep the mature products' achievement and growth sustainably in future in China. In additional, how this model can help the Novartis new products launching quickly even without bidding and RDL in future in China.So, this paper's conclusion is the "Pay for Performance" is an innovative and effective marketing promotional model. Meanwhile, through perfecting and developing this model further that it can provide valuable marketing promotion practice for pharmaceutical companies.