Yunnan Baiyao
YUNNAN BAIYAO: PRODUCT / MARKET DIVERSIFICATION
Yunnan Baiyao Group Co., Ltd. is part of the pharmaceutical industry known for its unique traditional herbal medicines specializing in the treatment of open wounds, fractures, contusions and strains. The business has undergone changes in the recent years to modernize not only the structure of the company but also with the aim to diversify its market and products in order to remain competitive at a global level.
The long history of Yunnan Baiyao’s brand is facing the inevitable maturity of the product lifecycle. As the majority of the company’s revenue is generated through the domestic market the urgency for product diversification is needed to source out new growth opportunities amidst the competitive market. As pharmaceutical companies appeared and integrated in larger conglomerates, surviving in the industry landscape has become a strategic challenge. The brand is essentially viewed as a medicinal treatment for minor injuries and will become a niche player if Yunnan Baiyao does not further diversity its product portfolio.
As Yunnan Baiyao is a locally grown brand lacking product variety there are difficulties in breaking into the international scene. The company’s marketing capabilities were confined to China and the scope of the business of the international department is limited. With little overseas experience and marketing expertise the company is at a disadvantage to position or build its global brand.
The company realized drastic steps needed to be taken to strengthen the brand reputation of Yunnan Baiyao. As a result efforts product standardizations were made to unify the brand including unified production planning, unified permit number, unified trademarking, unified quality standards and unified sales management. Structurally overlapping functions were eliminated or merged to make the company lean. Adoption of an ERP system for compensation was implemented to motivate employees. Yunnan Baiyao
Yunnan Baiyao Group Co., Ltd. is part of the pharmaceutical industry known for its unique traditional herbal medicines specializing in the treatment of open wounds, fractures, contusions and strains. The business has undergone changes in the recent years to modernize not only the structure of the company but also with the aim to diversify its market and products in order to remain competitive at a global level.
The long history of Yunnan Baiyao’s brand is facing the inevitable maturity of the product lifecycle. As the majority of the company’s revenue is generated through the domestic market the urgency for product diversification is needed to source out new growth opportunities amidst the competitive market. As pharmaceutical companies appeared and integrated in larger conglomerates, surviving in the industry landscape has become a strategic challenge. The brand is essentially viewed as a medicinal treatment for minor injuries and will become a niche player if Yunnan Baiyao does not further diversity its product portfolio.
As Yunnan Baiyao is a locally grown brand lacking product variety there are difficulties in breaking into the international scene. The company’s marketing capabilities were confined to China and the scope of the business of the international department is limited. With little overseas experience and marketing expertise the company is at a disadvantage to position or build its global brand.
The company realized drastic steps needed to be taken to strengthen the brand reputation of Yunnan Baiyao. As a result efforts product standardizations were made to unify the brand including unified production planning, unified permit number, unified trademarking, unified quality standards and unified sales management. Structurally overlapping functions were eliminated or merged to make the company lean. Adoption of an ERP system for compensation was implemented to motivate employees. Yunnan Baiyao