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At present, the proportion of advertising costs of OTC's major manufacturing companies in the total marketing expenses is basically maintained at around 30%. About 60% of the crowd's choice of OTC products is affected by advertising. For OTC-based pharmaceutical companies, the implementation of the OTC advertising ban is really a hit.
If the policy of "prohibiting over-the-counter drugs (OTCs) to advertise on mass media" is really implemented, is it a "nightmare" that cannot be escaped for all OTC manufacturers? Gao Hongxing, deputy general manager of Federal Pharmaceuticals, did not think so. "The marketing strategies of OTC products are various and advertising is just one of them. For companies that rely heavily on advertising for market share, and for new OTC products that are in the incubation period. "Limited" is a major blow."
Analysts believe that if the "Limited" policy is implemented during the year, even if it will not affect the performance of related OTC-listed pharmaceutical companies this year, it will be a big bad for the entire OTC sub-sector in the medium to long-term.
The degree of impact on performance is different. "Advertising has no doubt about the pulling effect of OTC product sales performance. Many typical OTC products are rapidly gaining market access through such means. Many pharmaceutical companies such as Guizhou Braun and Yunnan Baiyao benefit from it. Gao Hongxing pointed out. Taking a cold medicine as an example, when it was listed at the end of 1994, the two major brands of Contec and Tylenol in China had occupied the majority of the market share. However, the clever marketing ideas and huge amount of advertisements have enabled the brand to surpass 160 million yuan in sales for only 180 days on the market, and quickly allocated 15% of the market for cold medicines.
“Relevant investigations show that the impact of advertising on people’s choice of OTC products is the most important, and about 60% of the population’s purchase behavior is affected by advertising.†Chen Guodong further pointed out that “the importance of advertising to OTC production enterprises can also account for advertising costs as a whole. The proportion of marketing expenses shows that the current proportion of OTC major manufacturers is basically maintained at more than 30%, and the annual advertising investment of Jiang medicine industry is more than 400 million yuan, accounting for about 50% of the total.
In addition, the impact of the newly-listed OTC products on the production companies is also great, because advertising in the mass media is limited, and the establishment of brands to occupy the market may slow down.
Chen Guodong said that if the “Limited†policy is implemented, it will be bad for OTC producers. Because the OTC market is fierce and the market is not growing fast, if the relevant pharmaceutical companies do not launch new products, their development will slow down. Restricting advertisements is not conducive to the launch of new products by OTC manufacturers, because some new OTC products that are in the incubation period need to rely on advertising to deepen the impression of consumers, establish brands, and divide the market.
“If this policy is implemented during the year, it will have little impact on the performance of related OTC listed pharmaceutical companies in the short term, because major varieties such as China Resources Sanjiu’s Ganmaoling and Jiang’s Chinese Medicine’s Jianwei Xiaoshi Tablets have entered a mature period. Its brand has been deeply rooted in people's hearts." Chen Guodong further pointed out.
Multi-handed preparations to cope with changes "Even if the current 'limited' policy has not yet been finalized or implemented, those OTC manufacturers that are highly dependent on advertising must be prepared. Once the policy is implemented, they must adjust their marketing strategies." Gao Hongxing, general manager, pointed out: "Because the current discussion is to limit the advertisements on mass media, OTC manufacturers may start to focus on promoting through other media, such as online media and soft advertisements."
"In this situation, OTC production companies will pay more attention to hospital marketing." Chen Guodong believes that "the current OTC product sales are mainly pharmacies and hospitals, after the role of advertising in patients affected by the weakened, the doctor what medicine The impact is even greater, if the patient feels good, the next time the patient may go to the pharmacy to buy the same drug.â€
OTC manufacturers strengthen the marketing of hospitals. The team may also be reconstructed in this respect, and its expenses in hospital marketing will undoubtedly increase. Not only that, if the restrictions on advertising, the OTC manufacturers on the surface to reduce advertising costs and reduce costs, but we must also see restrictions on advertising will bring about the shrinking of the relevant enterprise product market, it is undoubtedly more harm than good.
In addition, if the "Limited" implementation, OTC production companies will pay more attention than pharmacy clerk promotions, but this will not become the main model. Gao Hongxing said: "Patients are very active in purchasing drugs at pharmacies. They often want to buy what medicine to buy. In addition, the quality and equipment of domestic pharmacy clerk are not ideal. The pharmacy clerk's sales promotion mode wants to be There are still many obstacles in the mainstream of OTC product marketing.†Moreover, pharmacy clerk promotions often require the return of a certain profit drug delivery store. This conflicts with the requirements of listed companies to require standardized operations. Therefore, related OTC listed drug companies are making great efforts in this regard. The possibility of operation is not great.
Some analysts believe that certain profits of drug stores are not the same as rebates for doctors. At present, there is no express prohibition on the return of certain profits from drug stores. Therefore, if this practice is more common in the industry, related OTC listed companies adopt such measures. The practice is also possible.
If the “Limited†policy is implemented, it will be bad for OTC producers. Because the OTC market is fierce and the market is not growing fast, if the relevant pharmaceutical companies do not launch new products, their development will slow down.
There are two kinds of fruit juice: pure fruit juice and compound fruit juice. As far as pure fruit juice is concerned, it can be divided into two types: one is to directly use the original juice, and the other is to dehydrate the freshly squeezed fruit juice first, and then add water to reduce it into concentrated fruit juice. Most pure fruit juices are concentrated.