View
106
Download
2
Category
Preview:
DESCRIPTION
Changing world of the Drug Channel - Presentation by Hannah Donoghue
Citation preview
We Bring the Future to the Present
Future of the Drug Channel Key Players
Hannah Donoghue | hannah@retailnetgroup.com
Walgreens Key Strategic Initiatives to Drive Growth
2
Source: Walgreens Investor Relations
Create a Well Experience
Transform the Role of Community Pharmacy
Establish an Efficient Global Platform
New Health & Freshness Store…New Departmentalization,
Communication, Categorization and Merchandise
3
Source: RNG Store Tour Database
Walgreens Well Experience Strategy - Several Key Innovation Points In-store
4
Community Pharmacy - Engagement
Exceptional Customer Service
New Checkout
Experience
Enhanced Beauty
Updated Exterior
Branding
Updated Décor &
Wayfinding
High-touch Services
Expanded Fresh
Assortment
Expanded Refrigeration & Adult Bev
Source: Walgreens
2020 Re-Think – How to Transform Today’s Drugstore
Into New Health & Daily Living Destination
5
Expanded Pharmacy
Look Boutique
Fresh Food to Go Juice/ Smoothie Bar Fro-Yo Bar
Nail Bar Health Solutions Urban Living
Source: RNG Store Tour Database; USA Today
Create a Well Experience
Flagship Locations Across US –Test & Learn Innovation Centers
6
Source: RNG Store Tour Database
New Fixtures & Gondolas – Modular
Redefining Convenience for On the Go Shoppers
7
Reach-In Coolers
Source: Walgreens
Continuing the Innovation - First Ever Net Zero Energy Retail Store
& New Zen Balanced Living format
8
Source: Walgreens
Transforming Role to Community Pharmacy
• 8.6 mil immunizations and
vaccinations administered in FY13
• 398 Take Care clinics rebranded
as Healthcare Clinics
• Expanded services to include
diagnosis and treatment of 4
chronic diseases
• Increased 90-day at retail
penetration & announced Smart90
with Express Scripts
• Established partnership with
Theranos
• Formed strategic relationship with
Health Systems, ACOs and Cystic
Fibrosis Services, Inc. 9
Comprehensive Care
Differentiated Experience
Strategic Partnerships
Source: Walgreens Investor Relations
Pharmacy - Changing the Engagement Model
10
Pharmacists in front
of counter –
encourages
interaction between
Pharmacist &
Patients
Refill prescriptions
through self-serve
kiosks next to pharmacy
Source: RNG Store Tour Database; Chain Drug Review; Walgreens
Walgreens Key Takeaways
11
1
2
3
4
Shift to community pharmacy – increased engagement,
expanded services, labor model, advisor
Expect constant innovation in store experience /
services to adapt to changing consumer needs
Walgreens uniquely positioned with Alliance Boots –
global lead in defining well
Investing in learning – testing through flagships,
category lifecycle management
CVS Key Strategic Initiatives to Drive Growth
12
Source: CVS Investor Relations
Drive Pharmacy Growth
Differentiate the Front End
Store Network Growth
Capitalizing on Integrated Model & Assets
13
Pharmacy Growth Driven by Political / Policy &
Technologic STEIP Drivers
14
Initiatives Aimed to Drive Personalization
15
Digital Integration - Key to Personalization
• Focus of digital has been with pharmacy to
date
– Creating integrated experience
• Widely used app
– Usefulness driven by pharmacy refill
option
• Leverage social media
• Aggressive mobile plan
– Retail time inventory check
– Drug interaction check
– Mobile personalized circular
Current Future • Digital drives personalized experience
– Personalized Savings
– My Weekly Ad
• Growth of digital commerce – endless aisle
• Continue enhancing mobile capabilities
Digital Innovation – CVS iPad App – Endless Aisle Concept
17
Changing the Way Brands Engage
18
MyCVS Store Clustering – Segmented / More Targeted Offering
Source: CVS Investor Relations
2 – 3% Annual Sq. Ft Expansion plus International Growth
20
Source: CVS Investor Relations; RetailNet Group database
CVS Key Takeaways
21
1
2
3
4
Expanding role of patient care changing drug retailers’
role in total health care – e.g. acquisition of Coram
Personalization - ExtraCare, My Weekly Ad
International acquisition is interesting but not critical –
acquired top 10 player in Brazil, learning opportunity
Expect further segmentation and development of
clustering to drive more targeted offering
Rite Aid Key Strategic Initiatives
22
1
2
3
4
Growth of Wellness+
Expanding Health Care Offering
Investing in Stores
Continuing to Find Efficiencies
5 Improving the Customer Experience Source: Rite Aid
Investor Relations
Higher Scripts Consumption Combined with Aging Boomers
Population = Opportunity
AgeScript per
Capita
0‐18 5.6
19‐44 7.7
45‐54 15.5
55‐64 23.5
65‐74 29.7
75‐84 34.6
85+ 34.6
Source: NACDS Goldman Sachs Global Investment Research, 2010; RetailNet Group database
Wellness 65+: Offering a Hyper-Targeted Loyalty Program
24
• New points on co-pays for govt. scripts
• Exclusive sale day (20% off) Value Benefit
• Medication reviews, POC compliance, Medicare D plan reviews, blood pressure screenings and pharmacy services review
• Monthly themed health & wellness events aligned with wellness 65+ Wednesdays
Targeted Bundling of Pharmacy &
Clinical Services
• Top-market mobile event tour
• Increased community outreach activation of wellness ambassadors
• Advanced CRM segment and 1:1 marketing plans
Extensive Customer
Engagement
Source: Rite Aid Investor Relations
Investing in Stores – Almost Half of CapEx Going to Remodels
Conversions to Genuine Wellbeing Stores
25
Source: Rite Aid Investor Relations
Genuine Well-being – Wellness Store Renovations
1,019 Stores Completed as of Aug. 31, 2013
26
Source: Rite Aid Investor Relations
Integrating Digital into Merchandising
27
Rite Aid Key Takeaways
28
R
1
2
3
4
Wellness / Genuine Well-being stores critical to RAD
turnaround – labor changes with Wellness Ambassadors
Capital discipline will be a key strategic initiative – invest
in store renewal, grow in place
Focus on strengthening relationship with customers –
win with seniors
RAD behind WAG / CVS from a total health offering POV
but focusing efforts on improving
Recommended