Ncpc-A Paper-Tiger in Pharmaceutical Industry

North China Pharmaceutical Group Corporation

---A Paper-Tiger in Pharmaceutical Industry

Beijing University of Technology

Foreign Language College

11151102 Wang Han

Instructor: Fung Xie

2013.12.18

Abstract

With the growth of living standards and people’s health consciousness strengthens, the consumption of drugs concept has always been changed.  Since pharmaceutical enterprises facing the variety of forms and competitive environment between domestic and international enterprises, how to make use of marketing strategy and improve the core competencies to better satisfy the consumers’ need to medicine product, it is directly related to their position in competitive market, and it is also related to the survival and development of them.  Based on the analysis of consumer behavior in pharmaceutical industry, this paper discusses the marketing strategy of NCPC.  Besides, this paper analyses the financial statements and proposes some suggestions.  The relevant information for this paper came from the textbook, the open literature and official websites.

Keywords: pharmaceutical enterprises, marketing strategy, analysis, medicine, innovation

Table of Contents

Abstract        

Part 1 Background Information        

1.1 Brief Introduction of NCPC        

1.2 NCPC Business Scope        

Part 2 Marketing        

2.1 Marketing process in NCPC        

2.2 NCPC’s 4P Model        

Definition of 4Ps        

Product        

Pricing        

Place        

Promotion        

2.3 The Extended Marketing Mix        

2.4 Organizational Buying Behavior and Consumer Behavior        

2.4.1 Organizational Buying Behavior        

2.4.2 Consumer Behavior        

2.5 Feature sales technique        

2.6 The importance of sales "closer" to a company        

Part 3 NCPC Business Report        

3.1 Basic Analysis of Financial Statements        

3.2 Analysis of Financial Ratio        

Part 4 the Comparison between NCPC and Bayer        

Part 5 an Email to CEO        

References        

Part 1 Background Information

1.1 Brief Introduction of NCPC

North China Pharmaceutical Group Corp. (NCPC) is a leading pharmaceutical manufacturer in China.  NCPC, in its early days, was one of the key construction projects during Chinese First Five-Year Plan.  As one of the world leading antibiotic producers both in technology and production scale at that time, NCPC created a history of commercial production of antibiotics in China.  With 45 years development, NCPC has been continually growing and taking the lead in China pharmaceutical industry in key economic indexes, ranking one of the Top500 Enterprises and the best profit-makers in China.  By the end of 2002, the total asset is USD 2 billion, number of employees 18,500.  In 2002, NCPC achieved domestic sales revenue USD 700million and export sales USD 100million.  Sticking to the spirit of "Service for Life ", NCPC is willing to build bright future for all the people.(Anon., 2013.)

1.2 NCPC Business Scope

Pharmaceutical chemical products’ manufacture and sales; Plant extract’s manufacture and sales; other logistics trade; real estate development.

Table1 NCPC Analysis Statement of Operating Revenue

Part 2 Marketing

2.1 Marketing process in NCPC

As a rule, there are four steps during marketing process: marketing analysis, market targeting, marketing mix and implementing and controlling the marketing plan. (Ronald J. Ebert & Ricky W. Griffin, 2010)