About Renhuang

Marketing & Sales

Milestones

Marketing & Sales

Manufacturing

Research & Development

Our Culture

Accomplishments

Marketing Strategy

Renhuang addresses the market through four market channels: OTC Market, Direct Sales, Wholesale, and Raw Materials.

Renhuang is using a four-pronged approach to achieve its market goals.

First, the goal is to build product brand names through advertising and education including TV, radio, newspaper, magazine, trade publications, pamphlets, store flyers, etc.

Second, Renhuang is using a variable pricing strategy to increase the market penetration in non-urban areas.  In non-urban areas, 90% of the Chinese population lives in the countryside with low income.  By using a variable pricing strategy adjusted to the lower income consumers in non-urban areas, Renhuang aims at increasing market penetration of its traditional medicine products in those areas.

Third, key cities such as Beijing and Shanghai serve as geographical sales centers that distribute Renhuang’s products to major drug chain stores in the urban and suburban areas around the city, supported by advertising and promotions.

Fourth, Renhuang targets the top-tier hospitals by leveraging its high-quality standard and manufacturing processes.  Traditionally, hospitals in China are divided into different tiers due to different capabilities. Junior level hospitals only cover small areas, middle level ones cover several areas, and top-tier hospitals cover different regions. Renhuang’s strategy is to work from the top down by targeting the top-tier hospitals, and gradually gain access to middle and junior level hospitals when its product brand names have been established in the top-tier hospitals.

Sales Strategy

Renhuang distributes its products through a multi-layer sales network of over 2,000 sales agents organized under 70 sales centers across 24 districts that cover over 50% of greater China and an estimated 80% of its geographical target area.  Furthermore, Renhuang has strong alliances with distributors who have powerful channel relationships but lack manufacturing or product development capabilities.  Renhuang’s products are not only sold nationwide but also exported to Russia and Southeast Asia.

Renhuang’s 70 sales centers support its regional sales agents and contracted distributors.  The vast majority of the regular sales force is commission-based.  The Company appoints general sales managers, provincial sales managers, and regional sales managers, and sets the sales target at the beginning of each year for each sales center.  Based on monthly sales reports, sales budgets are thereafter revised accordingly.

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