Break through 1 billion category extension tactics

Status: "1 Ton N" Phenomenon of Branded Pharmaceutical Enterprises

What should I do if I have achieved a monopoly in one breed? How can the company continue to develop? The answer is to be an alternative to the relevant category!

Yunnan Baiyao, on the basis of powder, successively introduced the Yunnan Baiyao series of products: tincture, plaster, band-aid, capsules, aerosols, etc., and boldly marched toward daily chemical, introduced Yunnan Baiyao toothpaste, all achieved remarkable performance and helped Baiyao The group is moving toward the scale of 10 billion.

Jiang Zhongjian stomach digestion film, after breaking through 300 million in 2002, through children's wear stomach digestion tablets, to achieve sales doubled in one year, reaching nearly 700 million, to lay a solid foundation for a single product over 1 billion, followed by pushing a river In the health foods of the Xiaoshi foods, a 1.5 billion or so "healthy stomach digestion family" was formed.

Dong E-Jiao Ejiao Co., Ltd. established the authentic E-Jiao brand and the position of the boss Lijiang Hu in Ejiao block and the compound E-Jian mortar, and began product extension. It has successively developed the health care products and health foods made from donkey-hide gelatin as raw materials, and boosted E-Jiao Ejiao's breakthrough of 3 billion yuan.

Wanxi Pharmaceutical, when Zhongjing Liuweidihuang Pill became a category leader, was not a Liu Wei Di Huang Wan in combat, but formed a Liu Wei Di Huang Wan as leader, Gui Fu Di Huang Wan, Zhi Bai Di Huang Wan, Qi Ju Di Huang. Pills, Mingmudihuang Pills, and Maiweidihuang Pills are combinations of the “Digo Huang Pills” family, which has achieved nearly 600 million yellow products.

The extension of a product family through a star product has become an important strategic tool for pharmaceutical companies to achieve leap-forward development and make large-scale mass.

Analysis: Leveraging Stars to Make Family, Combine to Scale

The implementation of a star product strategy and the creation of multiple billion-plus single-products are effective paths for the rapid development of pharmaceutical companies. However, creating N star single products and expanding the scale of the company is also a strategy. The successful experiences of Yunnan Baiyao, Jiangzhong Pharmaceutical and other companies are worth analyzing and learning.

With the intensification of market competition, changes in consumption habits, soaring media costs, failure of marketing methods, rising costs of manpower and raw materials, suppression of prices of medical reform policies, star product strategies, especially multi-star product strategies, and The cost of cultivation and time for cultivation are already beyond the reach of many companies.

Then, when the success of a single star product, follow-up to how to save time, effort, and money to build a number of star products become the focus of Chinese pharmaceutical company executives and bosses thinking.

The experience of Yunnan Baiyao, Jiangzhong Pharmaceutical, Dong'e Ejiao, Wanxi Pharmaceutical, Yiwei Pharmaceutical, and Sino-US-Skunk, etc., is “a family with strengths to leverage on the scale”. Make full use of the star product's brand advantage and core value behind it, conduct reasonable and effective category extensions, launch related series of products, maximize the use of resources, achieve time-saving, labor-saving, and save money to build family products and expand the scale of the company.

Through in-depth research on Chinese pharmaceutical companies, it has been found that the extension of the category with star products as the core and the family-building of the products to maximize the "1 ton N" effect is an inherent law that can be followed.

Method: Seven product development tactics for extended single product

Battle method one - agent type extension method. Representative Brand: Yunnan Baiyao, Shenyang Red Medicine

The so-called dosage form extension method, that is: based on the same group of star products, combined with modern consumption "convenient, fast, practical, powerful" demand, as well as modern pharmaceutical preparation technology, developed a series of different formulations of products.

The oldest sample of traditional Chinese medicine preparations - "Pills, Powders, Creams, and Dan" has obviously failed to keep up with the modern people's demand for convenience and effectiveness of drugs. It is obsolete and outdated, and only when it is advancing with the times can it be improved. Capture the hearts and minds of modern consumers and achieve rapid growth in sales.

If Yunnan Baiyao is based on powders, it has been developing tinctures, plasters, capsules, band-aids, and sprays since 2000. Each Yunnan Baiyao family has a good market performance; Shenyang Red Medicine is On the basis of tablets, plasters, capsules, sprays, and the like have also been developed, which are also typical type extension methods.

For example, traditional Chinese medicine companies such as Tong Ren Tang, there are many "old four-like dosage form" products, many of which no lack of large number of parties, if combined with changes in demand, upgrade a series of modern preparations, I believe that will bring a huge boost to corporate sales.

Warfare II - symptom extension method. Representative brand: New Contac, slow Yan Shu Ning

The so-called symptom extension method is to develop a more targeted product for different disease manifestations of the same disease.

The most typical case is like New Contac. Affected by the "PPA Incident" in 2000, China and the United States replaced the "Contec" brand with "New Contac". Initially, “New Contac” was just the brand name of “Complex pseudoephedrine hydrochloride sustained-release capsules” to relieve common cold symptoms. When “New Contac” regained the trust of consumers and regained the leadership status of cold medicines, it launched For the severe cold, the "New Contac" beauty flutter pseudo-mahjong tablets, the common cold and severe colds were divided into common colds, and different cold symptoms were used differently. Then, "New Contac" ventilation nasal strips to relieve colds and nasal congestion were introduced. In this way, a “reasonable solution for different symptoms and colds” and “New Contac Cough” were formed to maximize the market share of the cold.

In addition, Guilong Pharmaceutical's slow-strength Shu Ning Qing Lyu Liyan granules, after successfully occupying the “chronic pharyngitis”, launched the compound green Olive Liyan Lozenge for “pharyngeal discomfort”, and launched a cool for “daily shin guard”. Sugar has also formed a slow and strict Shu Ning family product.

Tactics three - crowd extension method. Representative Brand: Jiang Zhong, Johnson & Johnson

The so-called crowd extension method, namely: in the positioning of the star product's illness, develop targeted products for different groups of the same problem.

The typical case is Jiangzhong Pharmaceutical's Jianweixiaoshi. After occupying the status of absolute boss in Jianweixiao food category, in order to achieve a breakthrough in sales volume, it has also developed a “children's outfit Jianweixiao film” specifically for children to help Jiang Zhongjian’s stomach. Xiaoshi tablets achieve a single product breakthrough 10 billion industry legend! On the road of crowd extension, Jiangzhong is still not satisfied. It has also launched a health food for the general public, "Jiangzhongxiao Food", to grasp the "greater demand for health care, but they are reluctant to take medicine." child.

J&J's children's anti-fever and anti-pyretic medicines are divided into infants and children's products with a 3-year-old boundary. They are precisely subdivided into products. They not only extend the product, but also reflect professionalism. They have undoubtedly maximised the market share.

Tactics four - specialist extension method. Representative brands: daughter, golden rooster, small sunflower, cough

The so-called specialist extension law, that is, the development and integration of the same family of products, such as gynecology, paediatrics, and gastroenterology, according to the category of the company's star products.

Qianjin Pharmaceutical, the core product of Gynaecology Qianjin Tablets is the leading brand for oral gynecological anti-inflammatory drugs. The company also takes the “female health industry” as a strategic positioning to carry out product development and resource integration. Now we have developed and integrated gynecological products including more than 10 varieties such as gynecological menstruation tablets, blood-enriched mother-feed particles, Qianjin lotion, dysmenorrhea capsules, and Qianjin Zhidai pills, forming a professional gynecological medicine with thousands of gold tablets as the leader. big family.

Like the Lingfeng Golden Rooster series, the first is the three-dimensionalization and diversification of dosage forms, from Jinji capsule to Jinji granules and golden chicken slices, forming a golden chicken family product. Then, gynecological orientation, strategic positioning, development and integration of Jinji Motherwort , Jinxiang capsules and a series of gynecological products.

In addition, Xiao Kuihua from Sunflower Pharmaceutical Co., Ltd. established a superior position of small sunflowers in the branded children's medicine field through a Xiaoerfeike Kechuan Oral Liquid. Based on children's medicine, Sunflower Pharmaceuticals has developed and integrated children's cold medicine and health medicine. Stomach digestion, diarrhea, replenishment of more than 10 small sunflower products, only small sunflower child medicine family product sales exceeded 10 million.

In order to create the star product “Keke Capsule”, Yijin Pharmaceutical Co., Ltd. immediately introduced cold cough syrup and cough syrup for children, and used the cough family product “Keke family, professional antitussive”. The Keke family is Yijing Pharmaceutical. It has made a great contribution to the market position and sales scale of cough syrups.

Fighting Method 5 - Medicinal Food Extension Method. Representative Brand: Dong E Ejiao, Zhongjing Mushroom Sauce

The typical representative of the food and medicine extension is Dong'e Ejiao. After the Ejiao block and the compound E-Qiang mortar have established the authentic E-Jiao brand and the position of the boss, the three major product group armies with the donkey-hide gelatin as the main raw material have already formed. One is the blood-enriching medicine, and the other is the donkey-hide gelatin. Blocks, compound Ejiao, Ejiao Buxue granules are represented; one is nourishing health products, represented by Ejiao dates and Ejiao oral liquids; the other is health foods, mainly made by Taohuaji, and the three major product groups Boosting Dong'e Ejiao exceeded 3 billion.

Zhongjing Mushroom Sauce is a nutritional food supplement introduced by Zhang Zhongjing Kitchen Co., Ltd., a subsidiary of the Wanxi Group. It is the flagship product of the Wanxi Group that extends from traditional Chinese medicine to the health industry. It has achieved 200 million sales in two years of listing. The next step will be to further expand the company's scale around the "healthy food" planning series.

Warfare Six - Technical Extension Law. Representative Brands: Shenwei, Tasly, Sino-US-SK

The so-called technical extension, that is, the advanced preparation technology and technical advantages possessed by the star products of enterprises, has been applied to other products and formed a series of products with core technologies as their competitive advantages.

Like Shenwei Pharmaceutical, with modern Chinese medicine soft capsule technology as its core, OTC uses Shenwei Huoxiang Zhengqi Soft Capsule as a star product, and combines Wufu Xinnaoqing Soft Capsule, Qingkailing Soft Capsule, Wufu Jiangzhi Tongluo Soft Capsule, etc. The “soft capsule family” products help Shenwei to make large-scale, premium-enhanced, and competitive advantages; Tasly, with modern Chinese medicine pills as the core, is formed with compound Danshen dripping pills, including andrographolide dripping pills, Qishen Qi Dropping pills, Huoxiang Zhengqi Dripping Pills and Chaihu Dripping Pills are the “Dripping Pills”.

Another excellent extension of the technology is the "sustained release technology" of Sino-American Sker. The use of sustained-release capsule technology at Finbitz and New Contac, and the establishment of a "continuous 12-hour effective" product value, is also a classic.

Battle method seven - cross-border extension method. Representative brands: Baiyao, Pien Tze Huang, Tong Ren Tang, Qi Hong

The so-called cross-border extension, that is, the “core value” that companies have settled down based on star products or brands, extends the product development to food, daily chemical, drug and other health fields.

Pien Tze Huang Pharmaceutical crosses the drugstore. In 2009, Pien Tze Huang cooperated with Korean companies to produce "PZH Pien Tze Huang" medical skin care products. In addition, two fast-refreshing products, namely Pien Tze Huang Lozenge and Zheng Gan Bao Herbal Tea, were launched.

Tong Ren Tang extends to many fields such as health products, foods, cosmeceuticals, and Chinese medicine hospitals. The early years of health medicine started with sugar candy bird's nest, followed by the introduction of ginseng, ginseng, velvet and other products, and its growth has attracted attention in recent years. In 2001, Tong Ren Tang spent a large sum of money to set up the “Fang Ren Materia Medica Asia Skin Care Center” and successively launched the “My colleagues Compendium of Materia Medica” series of products. In 2005, Tong Ren Tang Cosmetics Co., Ltd. was established to research and develop “Drug and Cosmetics” products.

Yunnanbaiyao toothpaste. Since Yunnan Baiyao introduced Yunnan Baiyao toothpaste in 2005, the rapid growth of Baiyao toothpaste has been obvious to all. In 2009, sales reached 700 million yuan and ranked fifth in toothpaste products, which became a strong support for Yunnan Baiyao Group's performance growth.

Promotion: Extend the Key Five Forces of Product Promotion

Based on the extended products (product families) of star products, if we want to save 10 billion yuan in saving time, energy, and money, the key to promotion is to use the word “learn to use force”. Only by leveraging our efforts can we do more with less. . Specifically there are five key points of focus.

1, value transmission capacity

Since it is a star product that has evolved to form a 1 ton N product family, inheriting the value positioning of a star product is the core of “leveraging”.

Like Yunnan Baiyao, it can be used as a band-aid or even toothpaste, which is the value of Baiyao which inherits the principle of “stopping bleeding and reducing inflammation”; Jiangzhong Jianweixiaoshi is “appetizer-assisted digestion”, regardless of adults or children; Dong-e-e-Jiao is “blood and beauty” regardless of medicinal properties. Still edible.

Value transmission capacity is reflected in the planning of extended products. Two aspects must be done: First, the consistency of brand visual communication, such as product packaging, brand symbol visual performance, to let people know at a glance that star products are a family; The second is the relevance of product value, there should be a sense of success, not the same as the two skin!

2, channel influence

Extending the promotion of products, faced with dealers, it is important to play in high profile. Because of the promotion of celebrity products, as long as the recognition and support of distributors and terminals have succeeded.

Therefore, the new product launches for distributors, advertisements in industry media, and appearances in industry exhibitions must have high levels, strengths, and enthusiasm. To ignite the confidence of distributors and terminals, it is like the twin brothers of star products. In the same way, it fully wins the support and cooperation of the channel.

3, terminal performance

Since it is an extension product, there will always be a halo of the star product. As long as the terminal sees a high stock rate, the display is good, and there is a certain terminal recommendation, the sales will be very fast. Therefore, it is very important if the terminal works properly.

Terminal performance is reflected in four aspects: first is the mediaization and scale of terminal packaging; secondly, the distribution rate is higher, and sales opportunities are increased; thirdly, the position of display is better, and it is better to display their own star products. Together; the fourth is to do a good job of the main push of the terminal through the interests and the customer.

4, the driving force of interest

Star products are often "large and small" products, to mobilize the enthusiasm of channels and terminals, it goes without saying that the extension of products to a relatively high profit margins, especially in the initial stage of listing, the profit space must be competitive, let Dealers and the entire channel feel that it is a product that can take the money and make money. Naturally, it is easy to increase the quantity.

5. Propagation

In line with the principle of maximizing the use of marketing resources, extended products must use star products for advertising investment, but they cannot go to extremes. In order to save costs, there is absolutely no investment in publicity, which will create a warm water effect and make channels unsuccessful. After pushing, the acceptance is much worse.

The spread of the extended products is reflected in three points: First, the star product advertisements are brought into the extended products, and the star products are the main products, prompting the introduction of extended products, such as Harbin Guardian Advertising Tips “There is also an amphibious evacuation sticker”. Second, explosive decentralization, rapid increase in popularity, and later rely on the terminal and material maintenance; Third, with celebrity products bundled, less frequently than star products, but also a good opportunity to take advantage of star products; Fourth, star products on CCTV, TV Other big media, extended products are launched in some key regional cities.

Based on the extended products (product families) of star products, expanding the scale of sales has become an effective route and means for many pharmaceutical companies to enter the one billion yuan club in the most labor-saving, time-saving, and cost-saving ways. It is the starting line for achieving the scale of 10 billion yuan. The concentration of China's pharmaceutical industry is a general trend. Today, it cannot squeeze into the ranks of 1 billion yuan, and tomorrow it will surely be concentrating!