蚓激酶健康食品中國行銷商業計劃

Abstract

In China, three million people passed away in 2010 because of cardiovascular and cerebrovascular diseases, seven million people are now worrying about the recurrence of the diseases every day. According to the official cardiovascular disease research report, 230 million people are the high risk potential targets of cardiovascular and cerebrovascular diseases. Active Road, the moderate, effective compound health food can help millions of people improve their cardiovascular status and prevent the fatal break-out. Active Road is made of pure Chinese herbal medicine formula, moderate and not harmful to human body, with doctors’ endorsement. The effective rate reached 85% through human body testing over 1,800 patients and people. Active Road will apply the health food certificate from Department of Hygiene R.O.C. (Taiwan) to get GMP mark on the new package. The entire production process can be traced back through RFID tracking system, to further prove the quality and safety of the product. HongDiLong (hereafter “HDL”) is a Taiwanese owned biotechnology company focused on lumbrokinase technology application. HDL’s primary product – Active Road is the compound ingredient capsule targeting the preventive medicine market of cardiovascular and cerebrovascular diseases sector. There are three major reasons that HDL foresees as the great potential of this sector in China market. Firstly, deaths caused by cardiovascular disease in the entire world reached 17.1 million in 2011 according to the World Health Organization (WHO). In China and Taiwan the number of deaths caused by cardiovascular disease were 3 million and 250 thousand people respectively. As such, the need for a solution aimed at the cause of cardiovascular is extraordinary and urgent. Secondly, the entire world is turning into an aging society and link between the cardiovascular and cerebrovascular diseases and elderlies has been established and proven by the major medical studies and journals. The baby boomer generation started to retire from the workplace from the past decade; in US alone, there are 76 million baby boomers in total – this number accounts for ¼ of US population. Taiwan has , in contrast, over 6 million of baby boomers starting to retire from the workplace in recent years. In China, the situation is even worse. According to Chinese government, up to 2015, China will have 216 million population over age 65, accounting for 16.7 percent of the China population. Based on this, China will become an aged society within five years. It is estimated that before 2025, China will turn into a hyper-aged society, which means over 20% of its population will exceed age 65. The third reason and also the most important reason HDL created Active Road is that the health food demand has been growing at a compound annual growth rate (CAGR) of around 20% in the past 8 years and it is predicted to grow at same speed continuously in the next decade. Health foods designed specifically for cardiovascular and cerebrovascular prevention is currently significantly underserved in China. Only 11.1% of the total offerings are targeting the cardiovascular and cerebrovascular prevention segment in China, while the percentage is over 41% in Taiwan. The deaths caused by cardiovascular and cerebrovascular disease in China accounted for 33% of the total number, while this number in Taiwan is around 17.8%. Therefore, HDL has foreseen a great potential for cardiovascular and cerebrovascular related health food demand in China and Active Road with its unique efficacy to prevent the cardiovascular disease can fit in the current gap in the market. However, HDL suffered losses in the past four years with its market positioning and promotion strategy. Therefore, in our business plan, we will recommend HDL to change its business model from current China operation base to add the Taiwan value into the new business model. New Active Road will become “made in Taiwan” health food and target the premium customer segment. According to our survey, currently there is no health food targeting the antithrombotic sector in China and Active Road is the only offering in the market. Similar product offerings which claimed for the lowering cholesterol and triglyceride efficacy do not have the antithrombotic efficacy, and the items as we mentioned before are relatively insufficient for the needs of Chinese consumers. HDL completed the first stage China government subsidized program and the efficacy of Active Road had been proven. The quality of the product had been secured from the operations in the past few years. The new business model will enhance the marketing edge to Active Road to cater Chinese consumers’ special desire for imported products. The new sales and marketing plan will concentrate on all the resources to the target customer segment and utilize social network possibilities to maximize the product exposure to the right customers. After the launch of new made in Taiwan Active Road, HDL will have only two types of personnel in the company – sales function, and “others”. The employees under the “others” category must share the selling function as well. Based on the company projection, HDL will reach accounting breakeven by FY 2013 and start to make profit from FY 2014. From this point onward, HDL’s unprofitable days will be gone and the company can foresee the silver lining on the horizon in coming future. For the future expansion plan, HDL aims to launch the Active Road to Taiwan market after the China operation turns to profit. HDL will concentrate all its resources on the development of China market first before initiating any high expenditure project.