FUTURELAB

Prepared by: Scott McLaughlin, Melbourne, Australia.

November , 2009

A quick “fix” on Pharmacy Retailing beyond 2009

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……and its costing every body.

Single channel solutions are no longer relevant

Access to information has broken traditional models

In the last 15 Years Patients have become Prescribers

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Consumers are taking health care into their own hands

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Healthcare

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As self care and self diagnosis are more accessible

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And “Big Box” retailing is accelerating commodity and “leaving it up to me”.

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NONE OF THE ABOVE:

Its not what you do, it’s the way that you do it……. Earning consumer trust.

RITE 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 like Neutrogena 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 cosmetics like Revlon and Physicians Formula.

WALGREENS: ……..the best job "tricking" its consumers with its "Compare & Save" campaign. ….Throughout the store, Walgreen-branded merchandise is strategically placed next to comparable name-brand items.

………tight inventory control……………….,, shoppers looking for some of their favorite brands may be disappointed.

http://www.thestreet.com/story/10530482/2/the-shopping-spy-inside-the-drugstores.html

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Is this why I am just as reliant on “my opinion” as the advice of a Pharmacist?

When choosing a non-prescription medicine, what factors are important to you? Global vs Europe

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And why people are seeking to lower risk through safe alternatives?

What do you think will be the main way your usage of non-prescription medicines will change?

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• More 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.

• Consumers who visit product sites are nearly three times more likely than the average US adult to request prescriptions by name from their doctors.

• When consumers use search engines for pharmaceutical or health information online, they are most likely to search by the name of a specific condition/disease or the name of a specific product.

• 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 patients

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And continue to search for objective and well informed views to help their own diagnosis

The critical role of

Search is just an

example

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………and they’re not afraid to use it

•  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.

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Good advice matters to me, but who is helping me decide on what's right for me

Shouldn’t retailers be more accessible?

Can manufacturers be objective?

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……. they think Pharmacies will be increasingly important

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As long as its within reach

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And I manage the relationship

Most people who suffer from arthritis, asthma or cardiovascular disease are aware that their well-being can be affected by the weather. Developed to warn them in advance, MediClim emails registered users when changes in humidity, pollen count, barometric pressure and temperature might change how they feel.

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And they are helping me , not selling me.

If Doctors are less relevant

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It’s a journey to Customer Centricity

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Can Pharma get the offer right?

The right idea, executed by

the right stakeholder will

make the difference

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Pharma is trying…… but integration with Retail is …….

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Digital / Social: use only as subscribed

There is a lot being said, but……..

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Making media accountable, knowing one size does not fit all

Media "Tough economic times cause marketers to be held more accountable for spending and measurement," says Bard. "With over 145 million consumers online for health, new media offers cost-effective ways to reach and engage target audiences.”

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Who 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!

So……

If Doctors are less relevant

And Pharmacists advice is less

accessible and less relied upon

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Retailers adding value to customers and profit to the bottom line

Fighting in Commodity

Value Adding and Profitable VS

Customer Journey Customer Journey

Future Store Concept

• Breadth of Range • Speed of Service • Impulse and complimentary up selling • Keen Pricing • Loyalty Discounts

Future Store Concept

•  Total Health Management •  Focussed “Health only” range •  Accessible & Consultative •  Private / Personal •  Vertically integrated offer across multiple channels

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Developing something consumers can swallow.

Traditional Retail Concept Design

1.  Brand Immersion 2.  Consumer & Staff

engagement 3.  Ideation / Idea Scanning 4.  Outdoing great Ideas

Futurelab Retail Concept Design

1.  Consumer Immersion & opportunity identification

2.  Ideation and Brand Fit 3.  Profit Architecture 4.  Shape the multi-channel

execution

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Athens Brussels Bucharest Chicago Hamburg Helsinki Iasi Kiev Melbourne Miami Milton Keynes Moscow Shanghai The Hague Valencia

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20+ world-class associates acting as

“one global team”

In-house desk research and trend analysis resources

•  Remarkable practice research •  Social Media Analysis •  Presentation Development •  Innovation Studies •  Trend Analysis •  General Desk Research

International publications & thought

leadership

•  75K regular blog readers •  +100,000 readers of

presentations & papers •  regular speaking & media

appearances •  on a mission to change

the marketing profession

We are marketing strategy consultants that drive profit through customer-centricity & innovation.

Who We Are

A selection from over 100 credentials

At Futurelab, we believe that true shareholder value comes from growing revenues, rather than cutting costs.

That is why we want to be a source of new profit opportunity for your business.

We can support with:

•  practices to grow customer equity •  marketing that makes money •  innovations that are competitive

We 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, corporate habit or industry dogma that prevents you from doing what is right.

For further information about our services, please go to www.futurelab.net.

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Maximise the return on your

marketing investments

Innovate with meaning to the

customer and the bottom line.

Connect to customers in a more profitable

manner.

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What We Do

•  Media Optimisation •  Digital & Social Media •  Communication Strategy •  Advocacy/Word-of-Mouth

•  ProfitScans •  Proposition Design •  Sustainability •  Crowdsourcing

•  Retail/Shopper Marketing •  Customer Insights •  Customer Journey •  Customer Economics

Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.

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How We Are Different

Traditional business consultants that write

thick reports and let you worry about it afterwards.

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Creatively inspired vendors and advisors who seek peer

recognition, awards and maintaining a status quo in

the industry.

No-nonsense, strategic pragmatists that help you

make bold strategic moves and stick around until the

results are in.

Business Model

•  Project assignments aimed at maximising short term revenues

•  Extensive use of juniors

•  Leveraging same (secret) knowledge over various clients

•  High analytics/low creative

•  No vested interest in eventual business result

Business Model

•  Campaign mindset aimed at maximising short term profit

•  Locked-in to industry set ways of working

•  Premium on creativity over business results (low analytics)

•  No vested interest in eventual business result

Business Model

•  Long term customer relationship mindset

•  Seasoned expert teams for client assisgnments, juniors for back office work

•  Mix creative & analytics with common business sense

•  Open to (partially) result based compensation for LT-contracts

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What We Do

We help businesses identify new profit opportunities.

For this we always start from the customer’s perspective and look at ways to become more relevant, engaging or reputable.

In our experience, this approach typically leads for clear opportunities to monetize the existing reputation of a business, and develop opportunities for future growth.

$ 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.

Media Optimisation Retail Innovation Digital & Social

Some questions we (almost) always ask

•  Which are the steps in the customer journey (from the customer perspective)?

•  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?

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Research •  Cool hunting •  Influencer profiling •  Online reputation scoring •  Online reputation indicators •  Influencer Mapping & profiling •  Usability assessment

Evolution •  Digital spokesperson identification & training •  Digital relationship consultancy •  Digital crisis management •  Content management

Engagement •  On & off-site user engagement •  User journey strategy •  Social media strategy •  Advergaming strategy •  Customer advocacy •  User relationship management

Monetization •  Revenue modeling •  ROI analysis for digital initiatives •  Opportunity identification •  Partnership brokerage

Monitoring •  Social media tracking •  Brand alerts •  Periodical reports

We make sure digital/social “works” for your brand.

We help you formulate “what great looks like”

We work with your agencies, vendors and teams to “make great a reality”

Our Capabilities

Some brands our associates have helped in building digital relationships:

Futurelab ‘s digital associates have a track record in international digital at both senior and operational levels.

Their assignments have involved complex user engagement programs for companies ranging from FMCG to research & consultancy, implemented efficiency award winning interactive campaigns, optimized region level interactive marketing strategies and launched large-scale e-commerce initiatives.

All to say, that when we propose solutions, they are designed by interactive specialists for your interactive reality.

Digital/Social

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Budget optimisation •  Rightsizing of media budgets •  Intelligent budget reduction •  Optimising budget allocation

Compliance and transparency •  Investigation of current compliance levels •  Recuperation of agency volume bonuses •  Invoice auditing establishing debts/credits •  Rightsizing of agency FTE allocation •  General media auditing

Agency Management •  Selection (& transition) •  Briefings (creative & media) •  Contract & fee negotiations •  Performance Related Incentive Programmes •  Agency capability audits and enhancement

(processes & skills)

We help you to increase the return on your media spend

We ensure your various media & agency partners deliver what they should

We identify underperforming media and help you focus on those with highest ROI

Our Capabilities

Some brands our associates assisted in media matters:

Futurelab ‘s media associates are senior level experts which have collectively influenced over ! 10 billion in budgets on a global scale.

In this, they have built a track record of ensuring savings and adding value for a host of international blue-chip advertisers.

Today, we deliver media management programmes through a network of over 40 independent media consultancies spread across 4 continents.

Are billboards a waste of money? Did you pay a fair price?

MediaScan •  Effectiveness analysis •  Efficiency analysis •  Cost & quality performance benchmarking •  Opportunity identification

Media Strategy •  Customer Centric Media Modeling •  Transmedia concept development •  Media integration planning •  Creative & business strategy integration •  Commercial impact forecasting

Media Optimisation

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Retail Strategy •  Strategic planning •  E-commerce integration •  Customer journey mapping •  Shopper insight research •  Roll-out planning

Buying and Merchandising •  Merchandise mix optimisation •  Retail sales forecasting •  Marketing initiative impact analysis •  Upsell & product affinity planning

Retail Operations •  Space optimisation •  Retail Presence Audits •  People alignment •  Visual Merchandising Services •  Staff Training services

Retail Marketing •  Retail marketing planning •  Agency selection, briefing & management •  Multi-channel traffic generation •  Shopper activation •  Loyalty and word-of-mouth programmes •  Narrowcasting implementation

Retail Development •  Concept development •  Retail innovation services •  Customer centric retail design •  Flagship development •  Brand/Format integration

We help maximise the return per customer and square meter.

We help you formulate “what great looks like”

We work with your agencies, vendors and teams to “make great a reality”

Our Capabilities

Some brands our associates have helped on retail & customer matters:

Futurelab ‘s retail associates have a track record in international retail at both senior and operational levels.

Our associates have operated stores from Ireland to Kazachstan, implemented global visual merchandising programmes, optimised retail marketing programmes and launched large-scale e-commerce initiatives.

All to say, that when we propose solutions, they are designed by retailers for your retail reality.

Retail

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Innovation Methods •  Creative Deconstruction •  Innovation Landscaping

•  ...

Corporate Thinktank •  ...

Inspiration Days

Profitscan •  ...

Desk Research •  Trend Analysis •  Best practice reviews •  Competitive Intelligence

We identify new profit opportunities for your business

We provide inspiration to your teams

We identify opportunities to enhance your business and reshape your industry

Our Capabilities

Some brands our associates have helped on profitscans matters:

Futurelab’s ProfitScan brings a fresh eye to your business, products and markets. Help you short-cut your innovation efforts.

Using your existing pipeline & our own resources we deliver 10-20 new profit opportunities in a timespan of a week. Some will have a small impact. Some will reshape the foundations of your industry.

If you are truly committed, you can then be up and running in months, perhaps even weeks.

Innovation

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