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The status of the pharmaceutical industry channel model
Since entering the market economy, there have been four major sales models in the domestic pharmaceutical industry: agency system, buyout system, direct selling system, and distribution system. The comparison analysis of various sales models is shown in Table 1.
Agency sales is the sales agent authorized by the client to an independent agent. The agent can collect orders, sell goods, and handle sales related matters within the authority of the sales agent. The agent can receive a certain commission after completing sales. .
The buy-out sales model is that commercial enterprises purchase goods after they are purchased from production companies, have ownership of the goods, and assume all the business risks. With the continuous refinement of the market division of labor, many professional sales companies are derived. They not only have a strong sales network, a well-managed sales force, but also have a strong market operation capability. This type of sales model is more suitable for companies that have production and R&D capabilities but do not initially have market operations. The unique taste of Gansu Hengkang Pharmaceutical Co., Ltd. is a typical example of the successful operation of the buyout sales model.
The direct sales model is that the manufacturers sell directly to the terminal network. This model is suitable for companies with strong capital and management capabilities. This is also the method adopted by most domestic large and medium-sized pharmaceutical companies, such as Qinghai Qizheng Pharmaceutical.
In the distribution sales model, the relationship between the distributor and the manufacturer is legally a buyout relationship, but the manufacturer's control over the distributor is stronger than the buyout relationship. The dealer's income is not a commission, but the commodity sales price minus After the price is purchased, the dealer sells in its own name within the specified area, and the sales behavior is subject to the distribution agreement.
OTC new product channel model
The OTC new products in the pharmaceutical industry require higher channel flatness and faster requirements for the speed of goods circulation. Therefore, the comprehensive comparison of the above four modes, combined with the current status of the current domestic pharmaceutical channels, OTC new products can consider adopting “distribution System.
In accordance with the structure of the "distribution system" model, there are three basic links: "a primary salesman," a "secondary distributor," and a "pharmacy retail terminal." There are differences in channel objectives for different links.
How to choose a dealer
Choose a dealer to follow the following principles:
1. Select distributors, rather than let distributors choose products, dealer selection should be based on objective and fair market assessment results, rather than the result of the initiative requested by the distributor;
2. Find distributors who have the ability to develop markets, not just those who have business contacts with the company;
3. Treat dealers as long-term partners instead of temporary market entry tools;
Dealers must not only solve the problem of selling existing products, but also establish a helping company to establish goodwill (corporate image and product image), so that consumers are willing to pay higher prices for continuous purchase of the company's products;
5. Neither lack of abuse, to ensure the quality of the choice, would rather find a suitable dealer to shelve a certain market, do not rush to open up the market to reduce the demand for dealers.
The selection criteria of dealers mainly consider two factors: management factors and historical geographical factors.
Management factors mainly consider three aspects:
1. Operating mechanism and management level. The management mechanism can understand and distinguish different types of enterprises from the aspects of the enterprise system, the managerial decision-making power of the operator, and the responsibility of the owner and the employee. The management level mainly refers to the planning system, organizational structure, incentive mechanism, and control system. The degree of perfection and modernization;
2. Own distribution channels and shopping districts. Some distributors may own their own retail stores or fixed retailer customer bases, which is equivalent to having their own distribution channels. These dealers often maintain a certain amount of customer traffic in order to maintain their product sales levels. This customer traffic is the business district, which is related to the geographical location, operating characteristics, promotion, business reputation and reputation of the store. The larger the shopping district, the greater the company’s sales of goods. This is also one of the criteria for selecting dealers;
3. Information communication and payment settlement. The distribution channel should assume multiple functions, including information communication and payment settlement. Good information communication and payment settlement are one of the important conditions for guaranteeing the normal and continuous operation of distribution channels. Therefore, it can also become one of distribution advantages of distributors.
The historical and geographical factors mainly consider four aspects:
1. Geographical location. Distributors in traffic trunks have advantages;
2. Operating history and experience. In general, dealers with a long operating history are already familiar with the surrounding customers or consumers, have a certain market influence and a group of loyal customers;
3. Business scope and industry types of business. The business scope and industry type of dealers have an important impact on the distribution of goods, not only affect the scope and quantity of commodity distribution, but also affect the positioning of goods. Those dealers who are in line with the status of the enterprise's merchandise are undoubtedly have distribution advantages;
4. Dealer's operating strength. The sales flow of large-scale dealers is also relatively large, and dealers who can maintain high investment in market development will never have a small sales flow of goods. Therefore, they have an advantage in commodity distribution.
Management allows efficient channel operation
In order to ensure the orderly and efficient operation of the designed channels, enterprises need to formulate a series of channel management policies, including market regional policies, remittance policies, customer service policies, customer training policies, and incentive policies, as follows:
l. Market regional measures. This measure is to provide dealers with distribution rights and patent rights. The purpose is to limit the dealer's sales area, regulate the scale of distribution, prevent stocks from being sold or occupy the market, and at the same time ensure the franchisee's franchise. Its content includes: 1 area limitation. Clearly defined areas of distribution, counties and cities must be clearly written; 2 authorization period. Must specify the time, the time can not be too long, nor too short; 3 deal with breach of contract. In order to ensure the interests of distributors and manufacturers, it is necessary to specify the handling opinions when both parties are in breach of contract. The measures may be fines, cancellation of distribution rights, or lawsuit laws.
2. Repayment measures. The principle that should be adhered to in repayment measures is safety first. Manufacturers either control the goods or control the purchase price, and both must have one. Can use: 1 commonly used method of payment. After the first payment, after the first goods or cash on delivery. 2 customer credit policy. The method is to classify customers into A, B, C, D levels according to their credibility. The higher the level of policy implementation, the greater the amount of credit granted. Such as A-level customers can enjoy the first shipment, D-class customers for the first after the goods and so on. 3 aging management system. The principle is to overdue and stop shipping.
3. Customer service measures.
The purpose is to make every effort to satisfy the customer, such as establishing customer complaint handling procedures, after-sales service policy distribution system, order delivery system, customer reception system, etc., to make a detailed system for these contents, and notify customers to ensure customer satisfaction.
4. Customer training measures. The purpose is to improve the dealer's ability to operate and promote communication between dealers and enterprises. The main content is to determine the object, content, time, and location of the training.
5. Incentives. Manufacturers use mental and material methods to stimulate the middlemen's efforts to sell goods and improve sales performance. They can use such material means as price discounts, rebates, and year-end incentive policies, and can also use spiritual reward methods such as awards, competitions, and promotion of status.
Channel strategy is the company's various activities for the target customers to get close to and get their products. It must identify, absorb and contact various middlemen and marketing service facilities in order to more effectively provide their products and services to the target market. It mainly solves the following problems: 1. Dealer's choice and channel level; 2. Channel's service level and service content; 3. Channel management and control; 4. Manufacturer's support for dealers.