Building market dominance through brand and brand communication strategies: A case of CR Sanjiu in Shenzhen, China

Abstract

The study was conducted to analyze how a leading pharmaceutical company in Shenzhen, China achieved market dominance brand and brand communication strategies. To investigate how company employ effective brand communication tools and techniques to create and sustain leader brand in the customers mind. It described the corporation in terms of size, nature of business, organizational structure, objectives and brand strategic; pharmaceutical market structure, competition, market outlook and environment, market threats; brand Communication, Brands and Brands Equity; and SWOT, Competitor, BCG analysis of the corporation. This study used state the research design. The major emphasis in exploratory research is on the discovery of ideas and insights. Exploratory research is an initial research that clarifies and defines the nature of a problem. An exploratory study like a case study is a valuable means of finding out what is happening; to seek new insights; to ask questions and to assess phenomena in a new light. China Resources Sanjiu Pharmaceutical Co., Ltd. (referred to as "CR March") is a large state-controlled pharmaceutical companies. The company is mainly engaged in the development, production, sales of pharmaceutical products and related health services. It now has more than 1,000 products, involving Chinese patent medicine, chemical APIs and preparations, biological products materials and other fields. The products are sold to many countries and regions. It has many well-known products such as Sanjiuweitai series, Sanjiu Ganmaoling. The company’s revenue is $ 7.9 billion in 2015, Ranking TOP 10 in China's pharmaceutical industry. Brand department belongs to the group market center. Growing and distinctive Chinese pharmaceutical market China is one of the largest pharmaceutical markets in the world, but the status is arguably due to the size of its population, as the market is not yet mature. The combined forces of economic and demographic development, government stimulus, and enhanced health awareness among the public, market consolidation, and improving R&D capability may help the country to grow into a more sophisticated market within the next decade. Sales grew at a CAGR of 25.9 percent from 2007 through 2010, Level of Competition include most Chinese pharmaceutical companies are generic drug manufacturers; a large number are traditional Chinese medicine manufacturers; hospitals are still the major drug market; patent issues are the greatest weakness of Chinese producers. The Chinese business environment is mainly relationship-based, and this is reflected in the pharmaceutical business. Establishing relationship with pharmaceutical companies through personal connections is a common way to contact Chinese pharmaceutical companies. In recent years, several domestic medicine production enterprises have quick development, such as TONGRENTANG and TASLY, those enterprises form a market competition pattern with CR Sanjiu on some popular products. In 2010, CR Sanjiu was introduced as a consulting company to assist in the development of the twelfth five year plan. With the help of the third party consulting company, the ultimate CR Sanjiu will be the "Twelfth Five Year" (2011-2015) strategic objectives plan for the OTC market leader, Chinese medicine prescription drug innovators". CR Sanjiu focus on the main industry, the business focus on self-diagnosis and treatment, two areas of traditional Chinese medicine prescription drugs, and actively create a "1+N" brand line, strengthen terminal coverage, and constantly improve the product, one is to do subtraction, since 2008, has divested real estate, food, pharmaceutical, retail and other non-main business; the second is to do addition, through mergers and acquisitions epitaxial constantly optimize the industry structure. CR Sanjiu operating expense from 2011 to 2015 to reduce 2.2%. Research and development (R&D) describes activity or expense associated with the research and development of a CR Sanjiu drugs or services. R&D expenses are a type of operating expense and can be deducted as such on a business tax return. CR Sanjiu R&D expense from 2011 to 2015 increased to1.21%. But real R&D expense in 2015 has doubled in 2011. CR Sanjiu use horizontal development strategy, increasing intangible assets of CR Sanjiu is also a way to improve the market share of products. CR Sanjiu average advertising expenses 20% (advertising expenses in total revenue) from 2011 to 2015, nearly 60% (advertising of total Selling/General/Admin. Expenses, Total) CR Sanjiu select the brand and brand communication strategies they have adopted since 2011-2015; use PESTEL Analysis , EFE Matrix, internal marketing environment analysis, IFE Matrix, SWOT analysis, Competitor Analysis, BCG Analysis and so on. Advertising: 2013 hottest TV shows, Hunan Satellite TV entertainment show paternity 'Where is the father." With the popular program, the title of the program 999 brand value has been maximized released. 2015, CR Sanjiu cooperation with Anhui TV Holmes costume comedy"Medical Center joke", also with Beijing TV launched the Chinese version of "24 hour" week show. Direct Marketing: Jianyiwang, under the Shanghai health network pharmaceuticalcy chain Limited, established in 2010, China Resources Group's focus on training of medical e-commerce platform, the goal is the pharmaceuticalceutical industry B2B and B2C business leader. Interactive/ Internet marketing: CR Sanjiu gain credibility by having a good website. Without one, potential customers will go to your competitors that do. CR Sanjiu outsourcing their support live chats and emailing systems to specialist companies off shore so they do not even have to deal with them. Sales promotion: CR Sanjiu Common Means of gifts, demonstration, free samples, discounts, discount coupons, buy one get one free loyalty reward. Publicity/ public relations: CPhl China is the most comprehensive pure pharmaceutical focused event for domestic and international pharmaceutical companies in Asia, attendees get the opportunity to meet, network, do business, share ideas and shape the future of the Chinese pharmaceutical industry. CR Sanjiu has been participating in the similar exhibitions. Event Marketing & Sponsorship: CR Sanjiu Ya'an donor education in remote areas. Sanjiu has been established eight primary schools donated a total amount of nearly 300 million. In 2013 the company continues to build 8 Sanjiu primary annual donations donated 200,000 yuan. CR Sanjiu will continue to support educational activities to do so in order to Company's actual actions lead to more social support to improve the mountain children's learning environment, improve the quality of teaching. Personal Selling: 999 call center was established in 2009 to enhance customer service team building and personnel training, improve the work system, processes, standards and evaluation mechanisms, efforts to improve service level of work.