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Expanding Business Through Providing Innovative Services in an Independent Community Setting Michael R. Gionfriddo, Pharm D. Candidate 2011, Sarah Witkowski Pharm. D. Candidate 2011, Tiera Hickman Pharm. D. 2010
Wilkes University – Nesbitt College of Pharmacy and Nursing
Business Pitch Marketing
Location Analysis
Corner Drug has been providing high quality pharmaceutical care
in the city of Beaver Falls for over 100 years. Under current
ownership the pharmacy is held in high regard as a leading
business within the community. Currently their mission is dedicated
to providing the best possible care to their customers and patients.
We propose that Corner Drug expand and add pharmaceutical
services in order to increase the quality of healthcare and the
access to healthcare for the benefit of their patients and the overall
health of their community. The creation of a wellness center will
facilitate the implementation of new and updated products,
protocols, and services.
In order to build upon the existing practice we propose to enter into
a junior partnership with the current owner. A junior partnership will
allow for the infusion of new capital, resources, experience, and
ideas into the business. Current profits in addition to acquisition of
a small business loan will provide the capital necessary to
implement the proposed changes. Services will be added slowly
along with a new advertising campaign to promote the newly
expanded products and services. Reevaluating and expanding
current services in addition to the application of new services will
assist the pharmacy in transforming its potential into tangible
results.
Services Offered
Marketing is essential for any business. Without a good marketing
strategy even the best businesses can fall short of achieving their
potential.
Advertising to local physicians, hospitals, specialists, health and
fitness centers is vital to a successful marketing campaign. A
special event open to the public could be hosted that would
showcase the improvements made to the pharmacy. This would
increase the pharmacies exposure, through both word of mouth
and through media coverage of the event. Other marketing
options include both newspaper and radio advertising highlighting
the expanded services that would be offered.
Marketing would not only focus on the expanded services offered
but would also advertise the quality customer service which has
been offered at Corner Drug for over a century.
Promotion of sale items and quarterly rotation of OTC goods have
been proven to boost sales and increase patient awareness of
products that may be beneficial to their health.
Evaluation of this marketing plan will occur on an annual basis
and change based upon the findings.
Overview of Current Services
•Walk-In Immunization Clinic
•Diabetes Education
•Delivery
•Ice Cream/Soda Fountain
•3-5 Compounds/month
•Limited DME supplies
•Continued delivery services
•Western Union
•Pennsylvania Lottery
Overview of Additional Services
•Advanced diabetes education including
monitoring blood glucose and A1C
monitoring
•Lipid Clinic
•Blood Pressure Screenings
•Personalized Smoking Cessation
Counseling
•More extensive DME selection and direct
Medicare Billing
•Expanded Immunization Clinic and
Protocol
•Medication Therapy Management
•Generalized lifestyle counseling
Corner Drug is in competition with many
other pharmacies in the area. A Rite Aid is
across the street and there is at least a half
dozen pharmacies within a five mile radius.
Specialty pharmacies in the area include a
compounding pharmacy approximately one
and a half miles away. Nearby stores that
may compete with Corner Drug’s over the
counter products include a Family Dollar
and other comparable stores.
There are numerous prescribers in the area
including an internal medicine practice two
blocks away. These are potential sources
for collaborative agreements which can
help support the services that will be
offered.
The location provides ample foot and
automotive traffic because it is a major
thoroughfare within the community. It is
located in the same area as shopping
centers, fast food chains, and schools.
Layout & Workflow
Purchasing & Financial Summary
Technology Applications
There is a adequate amount of parking
around Corner Drug, as meter parking
is available along the street.
A large proportion of the pharmacy’s
patients are either elderly or retired. As
for the area 17.5% of the population is
over 65 a according to census data
from 2000. Also in line with the current
pharmacy owner’s vision we will try to
target the population between 21-65
which makes up 51.2% of the
population of Beaver Falls according to
2000 census data.
Changes to the layout and workflow will allow for
the implementation of proposed services and may
even increase sales. Having a more efficient
workflow will save time and most likely save money
as well. A more organized counter space and
separate more private room for MTM counseling
and other clinical services will help the pharmacists
and their employees provide better care for their
patients.
Space on the upper levels of the building will be
used as warehouse space to increase the stock for
DME products carried.
Current services such as the ice cream and soda
fountain, which currently barely cover their
operating costs, will be eliminated in favor of an
area for counseling and other clinical services.
Open space within the store will be redesigned to
include longer gondolas containing more DME or
OTC merchandise, which can further augment
sales.
The Western Union and Pennsylvania Lottery sales
are a profitable source of revenue for the pharmacy.
As such these services will remain, but will be
relocated to the front of the store.
The pharmacy recently updated their computer
system and it currently includes barcode scanning,
Rx scanning, and signature capturing capabilities
required by Medicare. The current owner is looking
to improve the pharmacy’s technology by
purchasing an automation system. One type of
automation is IVR (Interactive Voice Response),
which would reduce stress, improve dispensing
accuracy, increase productivity, and enhance refill
compliance. The cost of this and other technology
upgrades such as point of sale would be
approximately $10,000.
Junior Partnership: $600,000
• Half ($300,000) of payment up front, remaining half over
the next 5 years from profits
• After overhead and salaries are paid, the senior partner
will receive 60% of profits
Capitol Needed
• Junior Partnership down payment: $300,000
• Renovations: $25,000
• Automated Phone System: $5,000
• New OTC and DME Stock: $25,000
Financial Options:
1.) Obtain a bank loan for $300,000 using past financial
statements and Profit and Loss Statements (P & L) and
pharmacy as collateral
AND
2.) Use last year’s profit to complete renovations and add
stock, future profits used to repay over the next 5 years
OR
3.) Obtain a small business loan: $55,000; 7% interest, repay
over 10 years
OR
4.) Obtain a line of credit for renovations at about ½% over
prime= pay off as soon as possible
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