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Targeting and Segmentation

Loudon China has experience in providing TA sales potential assessments for each hospital and city.

About 140 Chinese cities have a population of more than 500,000 citizens. A large MNC has sales reps in about 150 cities, and total sales in about 250 cities' hospitals. There is a strategic decision to be made regarding how many cities to cover in short term, mid term and long term.

According to MoH statistics, in 2006 China has about 18,000 hospitals at county level or above. When introducing a new product, it is important to decide, which hospitals to target, and the goal regarding percentage of market in terms of TA sales.

For marketing management, the key issue would be what size of sale force is appropriate for each TA to get the maximum return of the sales force investment.

A traditional ad hoc study cannot completely solve this problem because China is geographically so large & economically so divergent, sampling small number of cities is not enough to represent the total Chinese market.

Loudon China provides our solution to this issue from a new perspective and adopted cost-effective methodology. We simulate and project each hospital and city TA sales potential of specific TA, and suggest options for pharmaceutical companies targeting of hospitals in general and individual hospitals in the targeted segments. To integrate with our consulting service, we provide relevant information and data to management, scenarios by broadness (number of hospitals or hospital groups) and depth (number of cities) of target hospitals and cities, and resources needed. Options of market entry strategies could be compared, and the sales force allocation strategy could also be fine-tuned.  

 

Excellence of Product Planning March 6th & 7th, 2008, Shanghai

Basic Statistics in Marketing Analysis March 14th,2008

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