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Successful Marketing Case of Chinese
Traditional Herbal Medicine
Executive Summary:
In 2008, Jianwei Xiaoshi Tablet (digestive and stomachics medicine) produced by Jiangzhong
Pharmaceutical Co.Ltd has been the largest single item in Chinas OTC market for three years
continuously.
This special product marked 2 striking high sales curve in its history on the way to the top
seller in China:
1) When Jiangzhong Pharmaceutical Co.Ltd just went public in Chinas domestic market and
its most famous TV commercial applied Mr.Afenti, the most popular cartoon figure in China
for Jianwei Xiaoshi Tablet (digestive and stomachics medicine) was on Chinas major TV
commercials and other media when very few pharmaceutical producers did so. The
advertising soon pumped the product sales to RMB100 million, then remained there for quite
a while.
2) In July 2002, Jiangzhong Pharmaceutical Co.Ltd started advertising campaign again for
Jianwei Xiaoshi Tablet (digestive and stomachics medicine) in several local key TV
commercials after turned to be non active in media for a few years. Again, the promotion
brought great returns for the manufacturer as the product sales again rose to RMB300 million
and kept growing in the following years. In 2006, the sales reached RMB900 million in Chinas
OTC market.
How did Jiangzhong Pharmaceutical Co.Ltd break the bottle neck of this special product and
achieved the striking increase in 2002? The case study demonstrated both the developments
and changes of the product and the manufacturer. It would certainly provide an excellent
case study to other Chinese policy makers in different fields for their consideration.
Many Chinese pharmaceutical manufacturers would not easily forget the year of 2001 since
many mid and small companies were being purchased and merged except few large
pharmaceutical companies took the opportunity and built up their kingdoms over these
changes, like Harbin and Guangzhou Pharmaceutica
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