Research on differentiated marketing strategy of ASEAN market for development of Chinese patent medicine based on principal component analysis and hierarchical clustering method / 中草药

ABSTRACT

With high-tech, high added-value, and independent intellectual property rights, Chinese patent medicine (CPM) is one of the most important exporting categories in Chinese materia medica (CMM), and its overseas development has become an important symbol of international recognition for CMM. With the implementation of the Belt and Road Initiative and the acceleration of bilateral economic integration, CMM trade between China and Association of Southeast Asian Nations (ASEAN) is facing with great potential and opportunities. ASEAN market is bound to be a vital breakthrough in the globalization of CPM and has strategic significance for its transnational operation. Since ten member countries of ASEAN have obvious differences in their economic development, market size, and medical and health levels, this paper aims to establish evaluation index system, further subdivide the ASEAN market by means of principal component analysis and hierarchical clustering method, and put forward different marketing strategies for each segmented markets including developed market, emerging market, potential market, and secondary market, hoping to provide useful advice and reference for the globalization of CPM in ASEAN or even in European and American main market.