A Rising Star — A documentary description of the development of Pearl Ocean

From: China Medicine       Date: April 26, 2007
Since its registration in August 2005 at Hong Kong, Pearl Ocean, with drugs wholesale and retail, production and development and the professional introduction agency as its major businesses, has already made great achievements, including the fast establishment of four departments, i.e. big brands, rural area health , dispatching and retail; the annual sales amounting 300 million RMB in 2006; sales of 迪巧(the Vitamin D calcium mastication slice), its knockout product, exceeding 200 million RMB annually without any advertisement input. It is said recently that the sales of pearl Ocean in first quarter increases by 40% against the same time of last year. It is predicted that the sales volume of the whole year will exceed 400 million RMB in 2007.

■ Marketing leads the direction

Different from common big contractors, Pearl Oceans pays much attention to the high orientation of brands. Generally, big agents would find smaller agents in local areas, but Pearl Oceans depends on the construction of brands. “ ‘Providing better medical and health products and service' is our principle. For example, if we want to introduce a new calcium product, the new brand must be better that those in the market. And it is the same with digestion products. This can be called a kind of ‘high brand strategy'.” ZHANG Xiaosong, manager of deluxe brands dept in Pearl Ocean explains.

We can see that the strict choice of brands to be agent is the prerequisite of good marketing. According to ZHANG Xiaosong, the agent species of Pearl oceans have six characteristics in common: special effects, wide application of approvals, available in drug stores, reasonable price, special variety, and an agency time of over 10 years. According to FU Gang, president of the company, the uniqueness of products is indispensable and only products of the high level can last for a long time. Within such a "severe winter" of the medicine field, Pearl Ocean becomes more prudent and careful in picking brands because of the policies concerning open tender of drugs and reducing price of medicine in this year.

Moreover, the precise marketing still requests a flat channel of sales, which would reduce as many links as possible. Pearl Ocean’s choice is to sell medicine directly to patients through the Internet, which would avoid the restriction of the traditional way. At present, the retail dept of Pearl Ocean is applying for the approval of on-line medicine stores. FU Gang explains that the big problem in retail is the high rent rate, which would take up 30% of the sales income. The traditional drug store can't solve this problem, but the on-line drug stores can. In future, there will demonstration of the brands on line and regional dispatching centre for customers.

After choosing brands and making up the sales plan, Pearl Ocean will shift their priority onto the customers. According to FU Gang, there is quite a big market in the downstream and large quantity of customers. Thus “providing service at a proper time, by proper persons, for proper customers, in proper means”, will become the essence of precise marketing. Once a consumer becomes the customer of Pearl Ocean, our staff member will exchange ideas with them, not just once but many times. “Certainly, this needs a long-term accumulation. For example, we will launch our propaganda about children’s calcium bills for in thousands of kindergartens; we will provide pre-pregnant training course so as to cultivate the potential market. In my opinion, this is a rather advanced and special method.” FU Gang said in confidence, “With a precise marketing principle, the direction of our development is much clearer and the road is also much wider."

■ Best team coming from advanced mechanism

In addition to the precise marketing mode, the advanced mechanism is also a pride of Pearl Ocean. It is said that Pearl Ocean owns a number of elites with rich sales experience. “The partner system” here helps to connect tightly talents in this team. The partner system combines the short-term and long-term benefits. The former refers to the benefits from the management process, while the latter means shared profits gaining from the brand benefit based on the former input. The incentive policy here is also very attractive. According to FU Gang, the several brands which each has a sales amount over 100 million RMB annually, is a return to the united team. The culture of Pearl Ocean is gathering all walks of talents. “With good moral quality and hardworking, there will be a position for you. Whenever we appoint a staff member to work in one district, the company will certainly be his backing, providing funds, techniques, etc.” FU Gang says.

With efforts of the whole team, Pearl Ocean buys and controls shares of several medicine production enterprises with GMP approval and medicine wholesale enterprises with GSP approval in the mainland of China, thus forming an operation platform with high efficiency for research, production, sales and transportation of medicines, including 35 agencies , over 700 professional marketing members, and close and broad connections with 4000 hospitals, 500 wholesale enterprises, and 20,000 drug stores all over China.

“What we do first is to divide the target crowd according to their economic condition, age and sex, etc. so as to utilize resources more reasonably. Currently, there is not only competition within the same business, but also competition with time because the development cycle of a brand is beyond the control of human beings. Pearl Oceans have combined advanced mechanism with precise marketing mode, and it proves effective.” FU Gang tells the reporter.

■ beautiful future depending on hardworking

Thanks to hardworking and earnestness, Pearl Ocean was awarded one of the Top 500 enterprises with high informationization in February. And as early as in 2006, Pearl Ocean was awarded the "Chinese Geneva cross humane service medal". When mentioning the priority of this year, FU Gang hopes to get the approval for on-line sales of medicine and develop member system on the Internet, with more interactive types of value-added service for consumers. In the meantime, he also hopes the chain drug store will be connected closely with the on-line stores.

In fact, it is the ideal of Pearl Ocean to be the agent of brands with patience and firmness. “We regard Pearl Ocean as the incubator for high brands. In the future, competition won't be limited in the traditional drug stores, but in the mind of consumers, or more exactly in the drug bag of patients. Our ultimate goal is to make our customers accept the brands and use them constantly and firmly. While the precise marketing channel strategy is in changes, enterprises have to face the market and meet the need of consumers.” FU Gang says.　

Against the backdrop of open tender of drugs, purchasing “within the net”, and the lack of progress in application for new medicines, FU Gang points out that the changing of policy has brought disapproval influence on the normal operation of drug enterprises, but Pearl Ocean isn’t affected much because it is a young enterprise with light burden of operation and smooth turnover and flow of capital. “This kind of environment will influence the speed of our development, but will not influence our development progress.” FU Gang is imbued with confidence for the future.

DONG Xiaofei, reporter of China Medicine