McKinseywascommissionedinQ1,2003to:providededicatedeffortinconductingindepthmarketsurveyandcollectdetailedinformationfrom4citieswithin2provincestoidentifythekeygrowthdriversinChina’sbroadmarket;4productcategorieswereincluded:GI(Motilium),OBGY(Gyno),NailInfection(Sporanox)Vertigo(Sibelium)provideobjectiveassessmentaboutthebroadmarketopportunity(notincludinganyurbancentres);providebusinessmodel/proposalforXJPtocapturethebroadmarket?
McKinseyBroadMarketStudyProcessProjectdesign(Q1,2003)ProjectreviewwithlocalandregionalJCteam(Apr03)Surveymarketselection(Apr03)Fieldworkin2citiesinShandong(May03)1stinterimreport(midJune03)Fieldworkin2citiesinSichuan(midJune–midJuly03)2ndinterimreportandKillerIdeaworkshop(endJuly03)Finalreport(Aug03)Presentationtocorporatemanagement(Sept03)?
BROADMARKETCANBEDEFINEDASCLASS2HOSPITALSANDBELOWATREGIONALCITYLEVELANDALLHEALTHCAREINSITITUTIONSATCOUNTYLEVELANDBELOWRegionalcityCountyTownVillageClass3hospitalClass2belowhospitalPharmacyClinicBroadmarket Source:McKinseyanalysis?
BROADMARKETDRUGSINCLUDEOTCAND“OUTPATIENT”RxDRUGS Source:McKinseyanalysisTargetingeasilydiagnosed,nonlifethreateningdiseasesEasytouseRelativelycheapRelativelysafewithfewsideeffectExamplesOTCMatureNewMotiliumGynoDaktarinRxOutpatientInhospitalSporanox/SibeliumCipramilBroadmarketdrugs?
McKinseyKeyFindings
OverallMarketSituation?
BROADMARKETREPRESENTS94%OFOVERALLDEMANDFORBROADMARKETDRUGSClass3hospitalBroadmarketdrugsalesbreakdownbygeographyPercent * Foronly2accordingcities ** DataforonlySichuanprovince Source: Interviewwithdistributors,hospitals,pharmaciesclinics;McKinseyanalysisAll4citiesBroadmarketrepresents94%ofdemand100%=362313BnRMBShandong*Sichuan*City100%=2162MnRMBCountyTownVillageMotiliumGynoDaktarinSibelium**BroadmarketSale
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