Extraordinary Genius - Chapter 603
Chapter 603 – Medical Plaster strategy
The exclusive supplier agreement with the military wasquickly signed. General Gan still had some say in the procurement of medicalsupplies. Furthermore, Bing City Pharmaceutical Enterprise’s rates were muchlower than Band-aid.
But Feng Yu was still not satisfied. With this alone, it wasnot sufficient to beat Band-aid.
In his previous life, it was 5 years after Yunnan Baiyaointroduces their healing plasters before Band-aid was beaten.
That means 2 years after Band-aid entered the Chinesemarket, the brand’s presence had grown tremendously and held the majority ofthe market share for the next 10 years.
During this period, there were lots of medical plastercompanies. But none of them could compete with Band-aid. If it was not becauseof the Government’s help, Yunnan Baiyao might take more than 5 years to beatBand-aid.
Even after Yunnan Baiyao had won Band-aid in terms of sales,but market research was conducted. Band-aid was still the number one brand ofplasters, and Yunnan Baiyao was second.
Of course, it was because, in Feng Yu’s previous life,Band-aid had monopolized the market for more than 10 years. It was difficultfor other companies to overtake them.
Feng Yu was full of respect for Yunnan Baiyao. They hadsuccessfully overtaken Band-aid in terms of sales volume!
Feng Yu does not have the patience to wait for 5 years. Histarget was 2 years. In 2 years, he wants to overtake Band-aid in terms of salesvolume, profits, branding, and other areas. He was to step all over Band-aid.
This will affect Johnson and Johnson from controlling theChinese market.
In Feng Yu’s past life, just before he came back to thislife, the top few pharmaceutical companies were mainly owned by foreigncompanies or joint ventures with international companies. Those truly ChinesePharmaceutical companies were way behind them.
The pharmaceutical industry was an important industry. Itwas quite sad to see foreign companies controlling the industry in China.
This life, Feng Yu does not want to see this happen again.China does have excellent researchers, but they do not have enough sponsors fortheir research. They do not have enough funds to promote their findings. Manyof the top drugs in the world were developed by Chinese scientists and teams ofresearchers with Chinese scientists in the team.
Research usually is conducted by a team lead by a Professorand assisted by his students. The research students might contribute most ofthe work, but in the end, who gets the most credit?
This was because most of the people will think that the teamhad the findings and results due to the Professor’s leadership. But, this wasnot the truth.
Feng Yu was now supporting lots of researchers. A lot ofthem were capable and could develop affordable and effective medicines. Thiswas what Feng Yu wants from them. In return, Feng Yu will provide them withfunding and reputation.
You had contributed to developing medicine, and you shouldget the credit. This was a trade. Feng Yu paid them and gets to reap therewards from their research. The researchers will get fame and funds to do moreprojects.
For instance, the Yunnan Baiyao formula which Feng Yuremembered. The researchers from Bing City Pharmaceutical Enterprise found thatthe formula was not accurate, and it was not as effective as the real YunnanBaiyao. But after the researchers at from Bing City Pharmaceutical Enterprise,Professors from Beijing University, Medical Universities, and many otheragencies came together to research and amend the formula, the final product wasnot too far behind from the real Yunnan Baiyao.
These people might even develop better medicines and standsa high chance of developing the Spray medication earlier than Yunnan Baiyao
One of the main reasons for this was Feng Yu. He had askedBing City Pharmaceutical Enterprise to increase their R&D spending.
Feng Yu had made it clear with the top management of BingCity Pharmaceutical Enterprise. The company could achieve high profits lastyear was because the medicine they produced were of good quality and effective.To achieve higher profits, the company must have an exclusive medical product.
For example, the top few Pharmaceutical companies in theworld had become successful because they own the patent of at least a type ofdrug. None of them had relied on low-cost medicines and advertisements to getto where they were now.
Look at Band-aid. Why was this brand of medical plaster theworld’s top-selling plaster and had achieved the highest profits? It wasbecause they were the inventors of medical plasters. It was the oldest brand,and when people think of plasters, Band-aid was the first brand that comes totheir mind. In fact, the brand Band-aid had replaced the words medical plastersfor a lot of consumers!
If Bing City Pharmaceutical Enterprise wants to winBand-aid, just waterproof and breathable plasters were not enough. These featureswere only good enough to win those smaller brands.
Shortly after Bing City Pharmaceutical Enterprise hadintroduced waterproof and breathable plasters, Band-aid also introduced similarplasters. Band-aid had this product all along, and it was successful overseas.They did not introduce this product in China was because they feel there wasn’ta need. With their old products, they had already monopolized the Chinesemarket.
Band-aid was just like Sony and another electronics giant.When they introduce a new product, it was not because their technologies weregood enough. They introduced it to show that their technology was the best inthe industry. If their technology were still ahead of their competitors, they wouldnot introduce their latest technology, unless it will lower their cost.
Most MNCs will introduce a new technology once in a while tomaintain their lead in their industry and increase the influence and value oftheir brand.
Currently, Bing City Pharmaceutical Enterprise only has thecartoon prints plasters that’s different from Band-aid. This product was theirmain focus now. Bing City Pharmaceutical Enterprise had ordered not only oneseries of cartoon designs from Liu Michael. They had ordered several series ofdesigns like the cartoon series <Calabash Brothers> and <Black CatDetective>.
The copyrights of these cartoon series were cheap. If theycould not get the copyrights, then they will develop their own characters fromnovels like <Water Margin> or <Romance of the 3 Kingdoms>. Therewere many characters in these novels, and it reflects on the Chinese culture.
These were little tricks, and it was not enough to winBand-aid. The only way to win was to develop a plaster that will speed up thehealing of the wound, which was the main reason why Yunnan Baiyao overtookBand-aid in Feng Yu’s previous life.
However, this product could not be developed in one or twodays. Feng Yu could still afford to wait, but he was only willing to wait forone year. He set a one-year deadline to his researchers to develop thisproduct.
This year, Feng Yu had made use of his connections to be theexclusive supplier of bandages to the General Administration of Sport of Chinaand the army. The advertisements on the mainstream media were only somemarketing tactics. Band-aid could also do the same.
But because of all these marketing strategies, Bing CityPharmaceutical Enterprise could not get any profits from their plasters. Thecompany had spent a lot on the marketing cost, and the plasters were sellingtoo cheaply.
Feng Yu’s biggest worry was to win the sales volume andrevenue but lose out on the profits and branding.
Now, it was just to control the market share and increasebrand awareness. The real battle had to wait until the medical plaster wasdeveloped.
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