Neptunus Report Essay Example
Neptunus Report Essay Example

Neptunus Report Essay Example

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Established in 1989, Neptunus is a key player in China's pharmaceutical industry. Based in Shenzhen, the company experienced rapid expansion and, by 2006, boasted nine subsidiaries and five manufacturing facilities. Holding assets worth more than 7 billion Yuan (equivalent to USD 1.025 billion), Neptunus produces around 400 different pharmaceuticals, traditional Chinese medicines (TCM), and healthcare products. The company's successful operation can be attributed to powerful R&D and production mechanisms, effective marketing and logistics arrangements, and a wealth of societal resources.

Initially, the firm prioritized technological advancement and product creation, pioneering numerous products and earning multiple awards for their work. Their Golden Oyster Extract, released in 1989, received the Gold honor at the China Excellent Product award in 1991 as an instance. Neptunus continued to churn out many award-winning offerings like the Neptunus KingDrink and Neptunus Ginkgo T

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ablet. However, the product successes of Neptunus did not translate into significant sales and revenue increases as one might expect, indicating a shift in marketing approach.

Neptunus held the conviction that their economic prosperity was impacted by their capability to initiate effectual advertising, marketing and promotional efforts, reacting to rivalry and spurring interest from their targeted audience. In the year 2000, the firm thoroughly analysed its brand using an objective diagnosis and launched the “21st Century Neptunus Branding Strategy Implementation Plan”. Under this scheme, they cultivated the central brand value of “health is the progenitor of future". Simultaneously, they set the tactical goal of transforming Neptunus into the premier brand in China's healthcare sector.

Neptunus initiated a massive television advertising campaign in 2001 to showcase their products, featuring their top 4 offerings as well as others like the Neptunus Oyster Extract. Each

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advert, while highlighting a distinct product, echoed the central message: "Neptunus - Health Creates the Future". Neptunus aimed to convey this value to its customers and strengthen its brand recognition in the market. This reflects that the key goal of Neptunus's communication strategy in 2000 was not just to raise awareness of its brand among every market segment, but also to augment product sales by establishing a robust brand name.

Neptunus noticed a clear transition from focusing on product development to emphasizing branding. The company's forte and essence are rooted in their prescription drugs, backed by strong research and development capabilities. However, the stringent regulations surrounding the advertisement of these drugs hindered Neptunus from fully utilizing this potential. To circumvent this issue, they began to delve deeper into the healthcare sector, producing consumer products like KingDrink and Colostrum Nutrient, which aren't reliant on prescriptions and could therefore enjoy higher demand.

Neptunus aimed to be the go-to point for customers in need of any over the counter or prescription drugs when they became unwell. By adjusting their approach to a “total health” strategy, Neptunus was successful in expanding their customer reach and capturing a larger market share, which subsequently enhanced brand awareness. Their objective was to facilitate individuals in maintaining their health at all phases of life. This echoed with their brand value that “health is the foundations for the future”. Catering to all age groups

Their product range mirrored this principle. For instance, they offer the cough syrup Xiao Er Zhike Tangjiang, tailored specifically for younger children. Also available is the Jianbaoling Pian, a health supplement designed for kids. For adolescents, there's Neptunus Colostrum Nutrient, a nourishing milk-based

powder. In addition, Neptunus has developed products to cater to adults like Xiyangshen, a ginseng-infused health supplement to strengthen the immune system. Furthermore, they offer KingDrink, popular among adults seeking relief from alcohol intoxication effects.

Neptunus offers Ginkgo Tablets to boost blood circulation and Yanzhibao tablets to enhance vision, specifically targeting the senior market segment. To persuade consumers to embrace their "Total Health" approach and buy their products, the company made a significant investment in marketing, with expenditures reaching up to 3.2 billion Yuan between 2001 and 2002. A significant portion of their advertising budget was utilized for TV commercials to push their products, with the commercials mainly categorized as either humorous or factual.

Neptunus utilised humorous commercials for healthcare products promotion and factual ones for over the counter medications. The humor made the ads memorable for customers. Yet, Neptunus faced heavy criticism as these ads fell short in effectively communicating their intended message, making this marketing approach considerably ineffective. The novelty of the commercial was remembered by customers, but not its real message. Conversely, their informative commercials clearly showed customers the purposed benefits of their medicines.

This led to them making a more educated purchase choice, thereby increasing the effectiveness of these information-filled commercials compared to those with comedic content. In particular, the Neptunus Endophy advertisement featured the slogan "Got a cold? Use Neptunus Endophy". This catchphrase was reiterated 5 times in a succinct span of 30 seconds. This recurrent theme served to reinforce the advocacy for customers to utilize Neptunus Endophy when they have a cold. It also served as an efficient strategy to jog consumers' memories about the product.

Nevertheless, the commercial didn't distinguish itself from

other over-the-counter cold medications. The advertisement for Neptunus Ginkgo Tablet conveyed the idea of being "a 30-year-old individual with a 60-year-old heart; or a 60-year-old individual with a 30-year-old heart. Your health depends on your choice". This poses the rhetorical question, who would you prefer to be? Viewers may lean towards maintaining a youthful heart and may be enticed to purchase the Ginkgo Tablet. The advertisement also enumerates the various advantages of taking Ginkgo Tablet. This appeal to facts in the advertisement appeals strongly to consumers' logical thinking.

Neptunus' two showcased commercials highlight the dual styles of advertisement techniques they utilize. The majority of their ads mirror the approach of the Endophy ad, which is characterized by its high comedic value. In 2001 and 2002, Neptunus' commercials featured in the list of "top 10 most enjoyable advertisements". Despite their unique creativity and humor, Neptunus’ ads fell short in effectiveness. They did not adequately underline the product's effectiveness or associated benefits - essential aspects that consumers consider when selecting healthcare products.

Neptunus elected to show their advertisements on CCTV and several local TV stations, which have the greatest influence within China's media landscape. Instead of carelessly purchasing prime time slots, they strategically broadcast their ads for different items during various time frames. For instance, advertisements for Ginkgo Tablets were aired during the more cost-effective non-prime time. This strategy helped Neptunus optimize their advertisement budget. Besides their television ad campaigns, Neptunus's official website serves as a significant resource for consumers.

The design of the Neptunus website is broadly well-structured and pertinent. Data about its corporation and products are arranged neatly with tables and headers for a visually appealing presentation. Furthermore,

Neptunus' corporate ethos is conveyed via an animated sequence which emphasizes the slogan "Health Creates the Future/Health Creates Bright Future". There's a search engine incorporated into many pages for uncomplicated navigation. Despite its strengths, there are certain design inconsistencies on the Neptunus website.

Major corporations presenting unresponsive links appear unprofessional and give a negative impression as it signifies inconsistency. Also, some links mislead users to the wrong webpage. For instance, selecting the 'Healthcare FAQs' hyperlink redirects to the 'Product Page'. Moreover, the unavailability of a page where customers can provide their feedback is noted. Content Neptunus' website purpose is to provide information about the firm and its products to its visitors. The presentation of its web content aligns with a formal demeanor in delivering their information.

The intention is to bolster its reputation as a leading professional brand. This sober tonality is uniformly maintained across all website pages. Additionally, there's a dedicated section discussing the company's social involvement. This could potentially function as a public relations strategy by the organization, portraying its more humane side. Nevertheless, the lack of advertising renders this approach somewhat ineffective. The Neptunus structure follows a 'onesided' presentation style for all ongoing communication efforts to achieve positive publicity as a reliable healthcare brand. The website's structure is very logical and user-friendly.

The site's user-friendly design facilitates easy navigation, which, from another perspective, could suggest a lack of originality and uniqueness. However, these aspects are not significant as the primary goal of this website is information delivery. Neptunus' web content is showcased using fundamental built-in tools like web browsers and 'plug-ins', enabling HTML documents, images, and videos to be displayed. The corporate content is conveyed

in a straightforward and professional style, supplemented by graphics and animations to enhance the textual content.

Neptunus' website is designed with a clear and easy-to-use interface. Its well-structured content management system complements each website element, enhancing user's online browsing experience by allowing them to swiftly scan texts for their desired information. The primary concern for web users is the simplicity of navigation on websites when searching for information. Neptunus' website effectively meets this need and also succeeds in educating its consumers on a wide range of corporate contents. This is accomplished by the incorporation of well-integrated features and a robust online infrastructure.

Nevertheless, it's imperative to address the small technical issues and design discordances highlighted in earlier sections to offer users a seamless web experience. The inclusion of an e-commerce platform would be beneficial as users could choose to purchase products directly. The website efficiently displays information in a structured way, facilitating swift search for consumers. Apart from this, the core marketing approach for Neptunus is predominantly through advertising, with television advertising being a major focus.

Consequently, Neptunus overlooked various promotional tactics like public relations, personal selling, sales promotion, and direct marketing. For a brand to be successfully established, advertising only constitutes a minor part of its strategy. The reason being, advertisement merely fosters a "pull" tactic. Without the support of a "push" method, Neptunus can't realize robust sales. In the early 90s, Neptunus was a sponsor of programmes and occasions such as the "CI Show" and the "Golden Oyster Show".

The company enhanced its public relations and gained more media visibility, which also raised its brand recognition. This method was a cost-effective alternative in comparison to launching new

advertising campaigns. However, since shifting its attention to healthcare and OTC products in 2000, Neptunus has ceased the sponsorship of such events. Despite providing medical aid during emergencies, we believe this outreach is a part of their social commitment rather than a marketing effort. Furthermore, it is pertinent to note that sales promotion was another marketing strategy that didn't prominently feature in Neptunus' promotional ensemble.

Typically, a firm uses sales promotion strategies like offering samples, coupons, or product discounts to increase its appeal to customers, encouraging them to try the product. This approach can effectively draw in a significant number of consumers in a relatively short timeframe. A prime example of this effective marketing tool is seen in the strategy employed by Giant Group, one of Neptunus's rivals in the market (Melatonin). They ran a marketing campaign that gave customers an opportunity to win a gold bar when they purchased their Melatonin product. This turned out to be an effective tactic, attracting substantial consumer interest.

We recommend that Neptunus utilizes such advertising strategies to improve sales. By implementing direct marketing, Neptunus may be able to "encourage" consumers to acquire their goods. Tactics such as telemarketing, email advertising, or sending out discount codes can be employed. Direct marketing not only "promotes" products to customers but also lets Neptunus reach a wider demographic. For instance, internet advertising would be the ideal method to captivate consumers who are fond of online shopping. Personal Selling

The absence of in-store sales representatives makes it challenging for clients to receive assistance regarding their item. Research indicates that when customers intend to purchase milk powder from distribution points, they oftentimes choose a rival's product

over Neptunus' Colostrum Nutrient. The insufficient focus on sales representatives may stem from Neptunus’ excessive confidence in their brand. As it relates to health products, brand loyalty needs to be cultivated early on as purchases are typically habitual. Therefore, sales representatives play an essential role in assuring a product's success.

For Neptunus to optimize its promotion mix, the company needs to concentrate its advertising efforts on a precise target market. Currently, there's no discernment in the marketing methods used. Both high potential and low potential clients are approached in the same way, which may lead to ineffectiveness in the company's marketing and promotional strategies. Since healthcare products are generally perceived as pricey, Neptunus should zero in on affluent and educated individuals, tailoring their promotional content in a way that speaks to the rational thinking of this demographic.

Therefore, the ads should rationally illustrate to the customers how they would benefit from using Neptunus' products in the future. This aligns with the company's branding mantra "Health Creates the Future". It's crucial for Neptunus to devote more energy to upholding positive public relations. This could be executed by setting up and managing campaigns and events, aligning with their communication goals. For instance, arranging or supporting large-scale sports events could serve as a consideration for Neptunus. This resonates with their slogan "Health Creates the Future" since regular physical activity encourages good health.

Consequently, transmitting a message that highlights Neptunus' strong belief in the long-term benefits of good health for consumers. Such initiatives can generate significant media attention, indirectly promoting the brand name. The organization of charitable occasions is also an efficient strategy to boost the company's public image. For instance, Neptunus

could construct hospitals or offer free medication and immunizations in disadvantaged rural areas. This approach secures a brighter future for these regions by providing them access to necessary healthcare services. Sales Promotion

Neptunus may want to think about implementing incentives such as coupons, cashback offers, or premiums to spark immediate sales. Moreover, they could consider including promotional items like sports tee-shirts, hats, rain jackets, etc., branded with the Neptunus logo and slogan (Health Creates the Future), when consumers purchase their products. This practice synergizes sales promotions with advertising. Direct Marketing Neptunus should take advantage of its online platform by introducing more features for direct marketing purposes. For instance, Neptunus could establish an e-commerce platform, blogs, and competitions to attract visitors to their website.

When consumers visit the Neptunus website, they will have the opportunity to explore the array of products the company offers and possibly be enticed to purchase them. This naturally aligns with the overall promotional strategy, with the website acting as an additional tool for advertising. The staff in direct contact with customers should receive training to educate them about the various product advantages and characteristics. These frontline staff should convey Neptunus' vision while assisting customers.

Enhancing skills and knowledge of front-line staff by conducting workshops with a focus on the essence of "Health Creates the Future," could be an effective approach. This ensures that the company's principles are deeply rooted in the staff, hence creating a uniform vibe and synched approach across all marketing techniques for better customer interaction. Neptunus should also assign a director exclusively for amalgamating the promotion mix and eloquent corporate communications. This can lead to improved planning and execution of the

marketing mix, saving unnecessary expenditure, and making efficient use of human resources.

Neptunus has witnessed substantial growth predominantly due to the superior quality of products, attracting international companies to collaborate with them as their local partner in China. Yet, there has been an underutilization of effective marketing strategies which has always kept them short of achieving their absolute potential. Hence, Neptunus should reassess their resource distribution towards diverse marketing strategies for a broader customer outreach and efficacy. Additionally, it is vital that they properly integrate these marketing techniques to avoid confusion among consumers and to get the most out of their advertising budget.

Reference List

http://www.emkt.com.cn/article/106/10623.html

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