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Mystery shopping: Jiangzhong Pharmaceutical in China

Development of Jiangzhong Pharmaceutical in China

Jiangzhong Pharmaceutical is part of Jiangzhong Group which holds 6,374.4 million shares and represents 43.63% of the total share capital.

Jiangzhong Pharmaceutical has national coverage, distributing its products across the entire country. The company’s net profits decreased by 24% in the first half of 2011, compared to the same period in 2010.

Jiangzhong Pharmaceutical is also taking part in the development of an anti-AIDS drugs in cooperation with the Chinese Military Academy of Medical Sciences.

Overview Indicators of Jiangzhong Pharmaceutical Co Ltd

Sectors within Jiangzhong Pharmaceutical

The company operates in multiple sectors of the Chinese pharmaceutical industry including herbal and traditional products, healthcare products and pharmaceutical distribution, as is shown by a related market research study in China.

The herbal and traditional products account for more than 50% of the company’s total profit.

The pharmaceutical distribution business and healthcare business bring in high returns for the company.

Production of Jiangzhong Pharmaceutical in China

Jiangzhong Pharmaceutical has set up a production centre, Jiangzhong Pharmaceutical Valley, covering an area of 1,100 hectacres in Nanchang.

  • The company produces pharyngeal preparations such as Liang Sang and Cao Sshan Hu lozenges
  • The Chueum Composite Peptide Specialized Diet grew 20% in 2011 compared to 2010, according to a recent market analysis in China.
  • The company reduced supply of Taizishen because a rise in production costs, including the main raw materials, reduced margins for the company
  • The company is trying to expand the production and market share of Shen Ling Cao Oral, a relatively new product at the end of 2010

Market Position of Jiangzhong Pharmaceutical in China

Jiangzhong Pharmaceutical, thanks to its years of advertising and accurate market positioning, has become one of the most recognized digestive remedy producing companies in China.

Jiangzhong Pharmaceutical offers a narrow products portfolio in OTC products, with the help of its two national engineering research centres in the pharmaceutical industry.

 Competitive Position of Jiangzhong Pharmaceutical in 2011

Adopted Strategy and Future Direction of Jiangzhong Pharmaceutical in China

  • Jiangzhong Pharmaceutical has been concentrating on marketing and advertising to improve its brand awareness and reputation
  • The company has been enhancing its production capacity
  • To gain stronger market power in the Chinese pharmaceutical industry, Jiangzhong Pharmaceutical has been introducing new healthcare products, like Shen Ling Cao Oral
  • By introducing innovative sales channels such as the Da Yu Program, the company has enabled consumers to buy its products more easily and conveniently
  • Jiangzhong Pharmaceutical plans to respond to the profit decrease by raising prices and launching new products

Daxue China consulting (Mystery Shopping in China)

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