Skin drug companies enter the cosmetics market to break the market

At the time, SH Pharmaceuticals had a wide range of products, including professional dandruff dandruff lotion, freckle cream, skin care products for beauty care, and beauty products for beauty salons. G rhyme cream: This is a special effect cosmetic. A counter should be set up and a corresponding nursing center should be set up to be sold by trained professional sales staff.

The market is the only standard for testing products. On the fashionable "cosmetic road", except for Yunnan Baiyao's toothpaste products, the other pharmaceutical companies seem to have gained much. Like almost all pharmaceutical companies involved in the cosmetics field, SH Pharmaceuticals is also taking advantage of it.

In the cosmetics market, for China with a population of 1.3 billion, its market capacity is naturally extremely large, and it is growing at a double-digit rate every year, thus attracting capital from all walks of life to join. Under this circumstance, the pharmaceutical industry is also ready to take a share. For a time, Beijing Tongrentang, Sanjiu Medicine, Nanjing Jinling Pharmaceutical, Yunnan Baiyao, and Yunnan Yuhong Pharmaceuticals all came to the fore, and the protagonist of this article, Guangdong SH Pharmaceutical Co., Ltd., also began to enter the cosmetics industry in 2003. Except for Yunnan Baiyao's toothpaste products, which have made some achievements in the market, other pharmaceutical companies seem to have obtained much.

SH Pharmaceuticals is a pharmaceutical company specializing in the production of dermatological drugs. Its flagship products are well-known in the South, with annual sales of several hundred million yuan, and the entire company has sufficient cash flow. It should be said that such a skin drug manufacturer enters the field of cosmetics, which can be said to be "root is seedling red." Coupled with sufficient cash flow backing, the market operation will be more like a duck. Since 2003, the pharmaceutical company has launched SH smear lotion and G Yun series makeup products. In 2004, it launched the JOE series, which covers many categories such as sputum, ecchymosis, acne removal and skin care. In response, some media used to describe the “cosmetic industry will face the challenges of dinosaurs”. However, the market is the only standard for testing products. On this fashionable “cosmetic road”, like almost all pharmaceutical companies involved in the cosmetics field, SH Pharmaceuticals is also taking advantage of it. Reluctantly insisted that in 2006, he had to make a tragic move of "strong man broken arm" and closed the marketing company FromEMKT.com.cn responsible for cosmetics sales.

This ending is regrettable. But the outcome itself is not important. What matters is whether we can understand the reasons and lessons of failure from its cross-industry operations.

Missing strategy

The SH Pharmaceuticals Shangma Cosmetics Project is said to have some contingency, a decision that was rushed under the lobbying of a general contractor, and is known as “New Special Cosmetics”. But in this cross-industry operation, there is almost no strategic planning. To say that there is only one, "We have to complete x million sales this year, to reach x billion in three years, to reach XX billion in five years," but there have been few Thinking: How much resources should be invested to achieve this goal? Which stages should be achieved to achieve this goal? What product mix should be developed to achieve this goal? What organizational structure and team should be formed to achieve this goal? It is precisely because of the lack of long-term care that it will bring near worries.

To conduct cross-industry operations, enterprises should first conduct market research, followed by sample testing, and then copy and promote the model. However, these procedures have been omitted from SH Pharmaceuticals. As soon as the project was launched, it began to attract investment across the country, and at the same time in the Shang Chao, OTC market, beauty salons and other fronts, the supply chain was tight, the follow-up investment was weak, and the market was made into a “cooked rice”.

The so-called business model is, in layman's terms, a money-making model, to whom to provide products and services, and to whom to collect money. The product portfolio of SH Pharmaceuticals was improper. SH Pharmaceuticals had a wide range of products at that time. There were professional dandruff dandruff lotions, freckle creams, skin care products for beauty care, and beauty products for beauty salons. These products are not only of a wide variety, but also incompatible with each other on the channel.

SH smear lotion: The main direction is professional swarf, retail price reaches 30 yuan / bottle, not suitable for sale in shopping malls, supermarkets, only suitable for pharmacies or professional hair care, hair care center sales, that is, should be "when Medicine to sell";

G rhyme cream: This is a special effect cosmetic. A counter should be set up and a corresponding nursing center should be set up to be sold by trained professional sales staff.

JOE series: This is a daily beauty care category, suitable for sale in stores, supermarkets, cosmetics stores;

Beauty salon line products: a series of products specially designed for beauty salons.

These product categories originally required different sales channels and strategies, but now they belong to the same brand, so that the channels can not be shared, the limited market resources have to be decentralized and unable to integrate, and the four sides attacked and then fell into the "four sides of the song" situation.

Market strategy mistake

Marketing myopia The so-called marketing myopia means that the company only sees its own competitive advantage, but fails to objectively face its own disadvantages and cannot launch the marketing behavior of marketable products to the market. SH Pharmaceuticals only saw its own technological advantages: GMP production workshop, more than 30 years of experience in skin drug production and research and development. At the beginning, some high-level executives were blindly optimistic. It was once said that SH G-frost cream produced by SH Pharmaceuticals in the GMP production workshop could definitely knock down Revitalizing Freckle Cream (the first brand in the Guangdong market for freckle products). However, there are many factors in market competition, and product quality is only one of them. Good products and good market performance cannot be equated. In particular, the entry barrier for the cosmetics industry is low. As long as there are common technical and production conditions, you can obtain the qualification for admission. If you have obtained the qualification for admission, you will be on the same starting line. At this time, the strategy and strength are compared. No first-class products have a first-class promotion strategy that is difficult to gain market advantage. On the contrary, even if it is a third-rate product, if it can have first-class market strategy and operational strength, it may be able to be done.

The first mistake in advertising is the lack of core words in advertising. If an advertisement wants to stand out in the ocean of information, it must have a catchy or unique core advertising word, which is conducive to communication. In contrast, the advertisement of SH Pharmaceutical's JOE products, "under the spotlight, the young girl is showing off her own skin", the plain advertising screen, the painless advertising words, lack of a sharp appeal. Second is the lack of advertising. The investment in advertising must not only be sustained, but also concentrated. Not only should it be concentrated in the geographical area, but also concentrated in the time period, and should be concentrated on the products. In contrast, SH's cosmetics advertising is like a little bit of water: in the region, in South China, East China, Shandong and other places; in the distribution of products, dandruff lotion, freckle cream, JOE series and many other products have been light; in time In the span, it spans nearly a year. However, the total expenditure on advertising fees is only three or five million yuan. It’s hard to break through the water. The third is the lack of supervision of advertising investment, and regional managers have serious consequences of eating kickbacks.

The first mistake in advertising is the lack of core words in advertising. If an advertisement wants to stand out in the ocean of information, it must have a catchy or unique core advertising word, which is conducive to communication. In contrast, the advertisement of SH Pharmaceutical's JOE products, "under the spotlight, the young girl is showing off her own skin", the plain advertising screen, the painless advertising words, lack of a sharp appeal. Second is the lack of advertising. The investment in advertising must not only be sustained, but also concentrated. Not only should it be concentrated in the geographical area, but also concentrated in the time period, and should be concentrated on the products. In contrast, SH's cosmetics advertising is like a little bit of water: in the region, in South China, East China, Shandong and other places; in the distribution of products, dandruff lotion, freckle cream, JOE series and many other products have been light; in time In the span, it spans nearly a year. However, the total expenditure on advertising fees is only three or five million yuan. It’s hard to break through the water. The third is the lack of supervision of advertising investment, and regional managers have serious consequences of eating kickbacks.

Channel confusion because of the lack of strategic planning, so did not set the selection criteria for dealers, plus some business people eager to make quick profits, just want to pass the investment "circle money" and then take the pass, leaving the channel members mixed, mud and sand As long as you give money, you can be a dealer, and you can become a dealer by burning bricks and selling steel.

The battle line is too long, SH Pharmaceutical's cosmetics project has been attacked in many channels, such as Shangchao, OTC market, and beauty salon, resulting in a long battle line. Its market covers Guangdong, Shandong, Liaoning, Sichuan, Yunnan, Changzhou, Ningbo and other places. Too distracting, and unable to provide sufficient market support, the "star fire" ultimately failed.

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