Planet Health final

8/7/2019 Planet Health final

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Export to Europe, south east asia, and US

Follows ethical practices

Received various awards(5.1) Involved in social and professional activities


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Change in competitive situation

Two choice software and retailing

Software was dropped due to rapidtechnology change and high attrition rate,

huge investment

International investment might not berecoverable if the business did not perform asexpected


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Retail sector showing strong signs of

modernization

Size was 90,000 crores in the year 2000 Organized sector only 20 crores

In pharmaceutical retailing, prescriptiondrugs accounted for around 14 crore, while

non prescription drugs accounted for about 2crore


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Margin 40% No change even after implementation of WTO

agreement Only traditional retailers Organized retailing has started to develop

example Health and Glow, Apollo. Many are health conscious Change in behavior from curative to preventive No effect of recession and macro-economic

factors


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Family-run and small in size

No equipment to preserve the medicine

properly Few stores are air conditioned

Three categories- attached to hospitals, areaaround chambers of consulting doctors,

residential or market area Fraught with irregularities in adhering to laws

& other malpractices


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No progress in retailing when compared to

other healthcare disciplines

Retailers are united and resistant to change Customers want change

Franchisee model can be used Discount sales can be followed, if the venture

did not perform well Request for feasibility report and detailed

strategy by Rohit patel


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Pharmacists link doctor and the patient They were licensed to make drug compounds

They had knowledge regarding drugsavailable in the market They know about their properties mechanism

of action , adverse effect, interaction with

other drugs & food items and theiradministration & compliance In Europe Pharmacies referred to as

apothecaries


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Chennai, Delhi and Mumbai retail werestudied.

Chennai is the pioneer of drug store chain inthe country.

Apollo, Muthu pharma, Health & Glow,Subhiksha and Truvalue were studied.

In Mumbai & Vadodara - medicine shoppe, afranchisee based retail drug store chainpromoted byCardial Health care Inc, USAwas studied.


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Private final consumption expenditure of

Indian consumers has gone up from

Rs.14698cr in 1990-91 to Rs.98168cr in 2000-01

Apollo follow central purchasing, medicineShoppe had authorized its franchisees to

source locally. Life spring in Delhi planning to attach a

Gymnasium & Spa to the store.


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The concept was similar to the pharmacies inEurope where the pharmacists played the role ofadvisers in the purchase and consumption of

medicine. In India, Drug consumption is based on cure than

on prevention. Persons at the counter not necessarily a

pharmacist was unusually not able to providethe information sought this lead to higherdeath because of negligence in theadministration of drugs

Decided to fill the gap


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60 Pharmacies under 4 categories

Hospital pharmacy

Clinic pharmacy IOC pharmacy

Stand-alone day & night pharmacy

Purchasing :C

entralized Storage & distribution: Located atChennai,

Hyderabad and Bangalore


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Promoted by RPG Guardian Ltd,. 50-50 jointventure with Dairy Farm International

Dairy farm International retailer based in HongKong

First store in February 1997 in Anna nagar. The store stock over 4500 products. Currently 10 outlet in chennai & 3 in Bangalore Size 400-800 sq.ft , daily sale Rs.20000 to

Rs.40000 / per day ; Employees 100 10% discount on singe RX purchase over 1000.


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14 stores in chennai

Location Purasaiwalkam; Turnover

Rs.65000/day. 70% RX products & 30% non-Rx products

Largest Pharmacy outlet in South-India Stock 8000 Pharmaceutical.

Offers counseling & door delivery facility No discount belives in quick delivery and

availability of genuine product


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Promoted by Tamil nadu Dadha products Ltd.

Company taken over by Sun pharma Ltd,

Mumbai 15 outlet in chennai

It offered 10% discount and hence ran withtrouble with local traders, they stopped

supplies through its members and the chainwas forced to close down.


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Meaning Prosperity (in Sanskrit)

80 stores in chennai, 20 stores in rest of Tamil

nadu Daily sale Rs.40000/outlet including grocery

and pharmacy

Private medical stores look neater, cleaner

and more well present than Subhiksha


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Commissioned in April 2000. Operates 24*7

Daily sale have grown from 15000 to 26000 inMay 2001. Size 600 sq ft & additional area of 100sq ft

for counseling

Inventory Rs.10 to 12 Lakhs 14 Pharmacists employed RXCovers 85% of total sale,Cosmetic & other

FMCG covers balance 15% of total sale


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Pharmacy doesnt dispenses medicine

without prescription.

Exceptions are there. Use ofCustom Software

Inventory uses Alphabetical classification Procurement and purchase through local

distributors License for whole sale as well as retail

Promotional offers also carried out


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Franchising based retail promoted by

Cardinal Health care Inc, USA.

14000 stores in 10 countries Started in 1998 11 medicine shop at present

Planed to expand 65 franchisee during 2001-02, ambitious plan to set up 500 medicine

shop by 2005

Average opening day sale Rs.16000


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Six Marketing programs offered

Loyal customer program

Referral program Display shelves hire scheme

Promotional scheme Free check up , counseling

Corporate tie up with ITC atCalcutta 5 days training to the owners and pharmacist

of medicine Shoppe franchisees


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Pharmacists would be employed

Duties and responsibilities of pharmacists

were developed based on internationalpharmaceutical federation (Netherlands)

The role of pharmacist for the proposedpharmacy was adapted to Indian condition


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Requirement of shift from current practicesof pharmaceutical retailing

Follow ethical practices and businessexcellence Huge investment in human resource and

material

Hire qualified pharmacist provide airconditioning and refrigeration facilitiesarrange stand by storages and power supplyequipment


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Current retailers had names of owners, family

members, god/goddesses, or something that

did not have any meaning Foreign sounding name might help in making

positive impression

Should reflect a range of encompassed health

activity

It should help in expanding operations

outside india


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Provide the best service and world classambiance and shopping experience

Genuine on property stored products

Health related merchandise includingmonitoring devices Multiple products and brands including

ayurvedic products

Counseling for shopping, Home delivery,24*7 service

Tie up with doctors


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All product should have a bearing on health

care

Satisfy largest number of customers in theirfirst visit

Alternative medicines, nutra ceuticals, healthfood & health supplements, personal care,

baby care and mother care products, pet careproducts, surgical & rehabilitation products

and health monitors and devices


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Procurement locally to avoid double taxation

Not to have any dealing with unethical

suppliers Bar codes was proposed

Separate information technology wasdeveloped

Investment cost around Rs 20 lakh


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Visit to pharmacy is a forced visit

To provide good shopping experience

Decided to locate the store in the residentialarea

Presence of doctor or hospital would be anadded advantage

Target customers are educated middle andupper case household


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Residential location having many high rise

buildings where preferred.

Should have enough parking space andattract shoppers who would walk in at leisure.

Mother and daughter combination was to beadopted.

Mothers stores measuring about 2000 sq.ftand dealing all health related products.

Daughter stores were located in sub-urban.


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All stores where to have similar identity.

To build trust among the shoppers throughpurity, transparency and openness.

Separate entry and exit. The look should be reach and elegant without

being opulent like a lifestyle store.

Design should be in such a way that shopperspend more time buying and browsing before

reaching the bill counter.

Information kiosk.


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Ahmadabad was selected.

Six stores were planned(five daughter and

one mother store) TV and local newspaper- costly

Teaser advertisement in city supplement ofthe largest English daily was preferred.

Reach was estimated to be one lakh households


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Customer loyalty is the only option to handle

competition.

Personal canvassing of households was to befollowed.

Doctors and hospitals were approached toattract customers.

Cost of promotion was estimated to be 10lakhs.


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Six general managers Procurement,

finance, sales, marketing, franchisee and

regular affairs. Drugs were stocked in alphabetical order.

Recruitment of suitable pharmacist andtraining of front room and back room staffs

were critical for success.

Proper uniform to the employees for

enhancing image of the store.


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A detailed feasibility report was submitted to

Rohit Patel by Sureka and presentation was

done about the project. Rohit patel reflected about the higher

investment and operating cost as comparedto competing retail format.

He concerned that whether the revenuewould come right.


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Find out the profitability of each of the

format discussed in the chapter and suggest

which one planet health should adopt?

What values does planet health want to

deliver? How does each formats stand withregard to delivering these values?


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How does each format relate to the location

of stores?

What changes are required for each of theformat with regard to categories, layout and

brand decision

Documents

Planet Health final