A Few thoughts about Pharma Retailing

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  • 1. FUTURELAB A quick fix on Pharmacy Retailing beyond 2009 Prepared by: Scott McLaughlin, Melbourne, Australia.November , 20091

2. FUTURELABIn the last 15 Years Patients have become PrescribersAccess to information has broken traditional models Single channel solutions are no longer relevant and its costing every body. 3. FUTURELAB Consumers are taking health care into their own hands 4. FUTURELAB Healthcare As self care and self diagnosis are more accessible 4 5. FUTURELAB And Big Box retailing is accelerating commodity and leaving it up to me. 6. FUTURELABRITE AID: Based on our spy mission to Rite Aid, it was immediately clear that the drugstore is winning with its store-branded merchandise But Rite Aid appears to be struggling with its premium products. CVS: a smaller selection of store-named products.. Still, consumers in our store would find their deals on better-known names likeNeutrogena and Herbal Essence, which allowed CVS to score high in the cosmetics/hair care category. It also featured a huge 50% to 75% off promotion on cosmeticslike Revlon and Physicians Formula. WALGREENS: ..the best job "tricking" its consumers with its "Compare & Save"campaign. .Throughout the store, Walgreen-branded merchandise is strategicallyplaced next to comparable name-brand items. tight inventory control.,, shoppers looking for some of theirfavorite brands may be disappointed. http://www.thestreet.com/story/10530482/2/the-shopping-spy-inside-the-drugstores.htmlNONE OF THE ABOVE:Its not what you do, its the way that you do it. Earning consumer trust. 6 7. FUTURELABWhen choosing a non-prescription medicine, what factors are important to you?Global vs Europe Is this why I am just as reliant on my opinion as the adviceof a Pharmacist?7 8. FUTURELABWhat do you think will be the main way your usage of non-prescription medicines will change?And why people are seeking to lower risk through safe alternatives?8 9. FUTURELABMore US adults use the internet than they use doctors for obtaining health and medical information.Consumers are much more likely to begin their quest for health information with a search engine rather going directly to a website.The critical Consumers who visit product sites are nearly three times more likely than the average US adult to request prescriptions by name from their doctors.role of Search is When consumers use search engines for pharmaceutical or health information online, they are most likely to search by the name of a specific just an condition/disease or the name of a specific product.example The most common situation for which they use a search engine for this purpose is when they have symptoms for a condition.Approximately three out of four U.S. nurses recommend health websites to patientsAnd continue to search for objective and well informed viewsto help their own diagnosis9 10. FUTURELAB Approximately two-thirds of ePharma Consumers think they can tell if a medical site is from a credible source prior to clicking on the search result, indicating that consumers feel that they are proficient searchers and are able to parse out relevant content for themselves. and theyre not afraid to use it 10 11. FUTURELABCan manufacturersbe objective? Shouldnt retailers bemore accessible? Good advice matters to me, but who is helping me decide onwhat's right for me11 12. FUTURELAB . they think Pharmacies will be increasingly important 12 13. FUTURELAB As long as its within reach 13 14. FUTURELABMost people who suffer from arthritis, asthma orcardiovascular disease are aware that their well-being canbe affected by the weather. Developed to warn them inadvance, MediClim emails registered users when changesin humidity, pollen count, barometric pressure andtemperature might change how they feel. And I manage the relationship 14 15. FUTURELAB If Doctors are lessrelevantAnd they are helping me , not selling me.15 16. FUTURELAB Its a journey to Customer Centricity16 17. FUTURELAB The right idea, executed by the right stakeholder willmake thedifference Can Pharma get the offer right?17 18. FUTURELAB Pharma is trying but integration with Retail is .18 19. FUTURELABThere is a lot being said, but.. Digital / Social: use only as subscribed 19 20. FUTURELABMedia "Tough economic times cause marketers to be held moreaccountable for spending and measurement," says Bard. "With over 145million consumers online for health, new media offers cost-effective ways toreach and engage target audiences. Making media accountable, knowing one size does not fit all 20 21. FUTURELABSo And Pharmacists If Doctors are less advice is lessrelevantaccessible and lessrelied uponWho is going to help me make informed choices? Who can I rely on and how will they engage me on my terms?What I need, When I need it, How I need it! 21 22. FUTURELABCustomer JourneyCustomer Journey Fighting in Value Adding and CommodityVS Profitable Future Store Concept Future Store ConceptBreadth of Range Total Health Management Speed of Service Focussed Health only range Impulse and complimentary up selling Accessible & Consultative Keen Pricing Private / Personal Loyalty Discounts Vertically integrated offer across multiplechannelsRetailers adding value to customers and profit to the bottom line 22 23. FUTURELAB Traditional RetailFuturelab Retail Concept DesignConcept Design 1. Brand Immersion 1. Consumer Immersion & 2. Consumer & Staffopportunity identification engagement2. Ideation and Brand Fit 3. Ideation / Idea Scanning3. Profit Architecture 4. Outdoing great Ideas4. Shape the multi-channel execution Developing something consumers can swallow.23 24. FUTURELAB FUTURELAB Athens Brussels Bucharest Chicago Hamburg Helsinki Iasi Kiev Melbourne Miami Milton Keynes Moscow Shanghai The Hague Valencia 25. FUTURELABWho We Are We are marketing strategy consultants that drive profit through customer-centricity & innovation.At Futurelab, we believe that true shareholder value comes from growing revenues, rather than cutting costs. 20+ world-class In-house desk International associates acting asresearch and trend publications & thought That is why we want to be a source of newone global teamanalysis resources leadership profit opportunity for your business.We can support with: practices to grow customer equity marketing that makes money innovations that are competitiveWe focus on the end result, not the report.Like an architect, we add to your vision and if required - manage your agencies and vendors towards the desired result.Along the way, we challenge any convention, Remarkable practice research 75K regular blog readers corporate habit or industry dogma that Social Media Analysis+100,000 readers of prevents you from doing what is right. Presentation Developmentpresentations & papers Innovation Studies regular speaking & media For further information about our services, Trend Analysisappearances please go to www.futurelab.net. General Desk Research on a mission to change the marketing profession A selection from over 100 credentials 25 26. FUTURELABFUTURELAB What We DoLike an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.Maximise the Connect to Innovate with return on yourcustomers in ameaning to the marketing more profitable customer and theinvestments manner.bottom line. Media Optimisation ProfitScans Retail/Shopper Marketing Digital & Social Media Proposition Design Customer Insights Communication Strategy Sustainability Customer Journey Advocacy/Word-of-Mouth Crowdsourcing Customer Economics 27. FUTURELABFUTURELAB How We Are DifferentTraditional businessNo-nonsense, strategic Creatively inspired vendors consultants that writepragmatists that help you and advisors who seek peer thick reports and let you make bold strategic moves recognition, awards and worry about itand stick around until themaintaining a status quo inafterwards. results are in. the industry.Business ModelBusiness ModelBusiness Model Project assignments aimed at Long term customerCampaign mindset aimed at maximising short term revenuesrelationship mindsetmaximising short term profit Extensive use of juniors Seasoned expert teams forLocked-in to industry set ways client assisgnments, juniors forof working Leveraging same (secret)back office work knowledge over various clientsPremium on creativity over Mix creative & analytics withbusiness results (low analytics) High analytics/low creative common business senseNo vested interest in eventual No vested interest in eventual Open to (partially) result basedbusiness result business result compensation for LT-contracts 28. FUTURELAB What We Do We help businesses identify new Some questions we (almost) always askprofit opportunities. For this we always start from thecustomers perspective and look at waysto become more relevant, engaging orreputable. In our experience, this approach typicallyleads for clear opportunities to monetize Which are the steps in the customer journey (from the customer perspective)?the existing reputation of a business, anddevelop opportunities for future growth. What are the choice drivers that make people move from one step to the next? Which underlying rational/emotional insights need to be taken into account? Who are the influencers that matter, how important are they and what do they think? When, how and where is the best moment to influence customer behaviour? While our services takes us to every area of the marketing mix, in this document we focus on$four which we believe may be of interest/relevance. Digital & Social Media OptimisationRetailInnovation 28 29. FUTURELAB Digital/SocialOur CapabilitiesWe make sure digital/social worksResearchfor your brand.Cool huntingInfluencer profilingOnline reputation scoringWe help you formulate what great looks like Online reputation indi