Commercial Profitability Improvement From Idea to · PDF fileCommercial Profitability Improvement From Idea to Reality. ... drugs is main focus ... Increase in chains and buying groups

CIB – Product Communication05/06/2015

Commercial Profitability Improvement

From Idea to Reality

Commercial Profitability ImprovementFrom Idea to Reality

• Introduction

• Pharmacy landscape

• Product communication in the pharmacy

• Q&A

Agenda


Wedesign solutionsfortheindependentpharmacisttosupporthim/herwiththecommercialandeconomicalmanagementofhis/herpharmacy.

Wehelppharmaciststofocusonhealthsupportandtoguaranteehighqualityservicewithintoday’scontinuously

changingmarketenvironment.

Wouter Van Meel - Imphact


• Introduction



• Q&A

Agenda


The basics of economy over the years

Material

Product

Service

Experience

Difference Relevance

Premium Price Basic price

Significance


19501950• Producer – drugs is main focus – unidirectional

19901990• ‘Commercial’ but scientific – delivery – unidirectional

20002000• Delivering service – counsellor – start bi-directional

20102010• Co-decider – follow-up care – consultation model - bi-directional

20152015• Patient follow-up – central follow-up - counselling patients

Evolution of the pharmacy profession

Bron APB


… but this is not the only issue

Decreasing number of pharmacy owners –Increase in chains and buying groups

New pharmacies are bigger and need a new approach towards their clients

Does the pharmacy shopper exist?

Other sales and communication channels

Decrease/delocalisation of the health budget- Equal budget but higher demands- Populations is becoming older - Less players in the health environment


• Introduction



• Q&A

Agenda


1. Product location in the pharmacy

• In front of the pharmacy desk

• Behind the pharmacy desk

2. Type of product & interest

• Single product within a known range of products /indication area

• Complete product range and/or New product introduction

• Product also in other distribution areas

3. Commercial support

• Product with high commercial support

• Product with the support of the pharmacy team

Product communication

Routing and product location


Pharmacy = focus on illness - passive clients

Informative displays & windows

One-way traffic

Counter completely focused on delivering prescriptions

Small surface devoted to the client

Shelves not easily accessible

Few products exposed

Traditional pharmacy: Delivery of prescriptions


Pharmacy 1

Circulation of the clients

Zone that

people see


Pharmacy = focus on well-being - active clients

Commercial displays / thematic windows

Routing in loops

Different counters

Bigger surface for clients

Shelves better accessible

Organization of products in zones per category (category management)

Exposure of products with mass-effect

Principles of the commercial pharmacy


Pharmacy 2

Circulation of the clients

Zone that

people see

OTC


Determine the ideal location of your products depending on the routing of the client in your pharmacy.

• What type of products do you have?

• What is the client type you want to get in contact with?

• What is the image of the company? Are these products related to your image?

• Is it a single product or a full range of products?

• Does the product need support?

Routing and product location


Company X: mainly products for babies.

They launch a range of products for mothers.

These products were placed in the baby area and as such linked to the image of the company.

Test: Determine 4 locations in the pharmacy and measure sales influence.

Routing and product location? Example.

Result: The best locations were:

- In a warm area of the pharmacy

- Together with other products related to mothers

- In two different areas (double)

Sales increased in the above locations while sales were neutral/negative in the original location (baby area).

Product type and product support


Four important elements

1.Shelf

Better exposure in the shelf

2.Visibility

Intensify the commercial communication

3.Product packaging

Product information and attractiveness

4.Advice/Training

Strengthen the competences of the personnel

Product support through communication

Shelf

Advice

Visibility

Product packaging


Some examples:

Last year, 65% of the population suffered at least 1 time from a cold.

Of those patients another 65% took self-medication, mostly without going to a General Practitioner.

The pharmacist has a significant influence on the choice of a specific product.

Besides, patients confirm the importance of self-medication and the crucial role of the pharmacist in this

Source: Ipsos Healthcare study 2012: ‘The importanceof OTC products in Belgium, the role of the pharmacist and the interest in a self-service shelf.’


OTX

Non-reimbursed medication in free sales but originally prescribed by the physician.

Products with high rotation. Loyal customers.

Advice

Every pharmacist has his specific advice products. The choice is based on different criteria: composition, price, purchase conditions, prescription, the firm or representative, the customers’ demands ...

Advice products very often need support of the team.

Impulse purchases

Products in free sales, para-pharmaceutical products and OTX behind the counter.

The costumer sees the products and decides to buy on the spot.

Spontaneous questions

Similar to OTX products, but reputation and demand are created through direct communication/interaction with the consumer and not through a prescription.

Other example = customer’s preferred products.

OTC sales types


Syrup C&C:

Digestive:

Vitamin:

Examples 'sales type' products

The more a product sells by its own, the more the product packaging needs to support the sale.

The more the sale is an impulse purchase, the more the product needs visibility.


Extra support for internal communication


Company X: Vitamin products.

A whole shelf was dedicated to the product range.

Test: Determine the impact of a display compared to a shelf (warm area).

Product type and support? Example.

Result:

- Shelf sales were positive on the whole line.

- During the test, sales increased much more with the support of a display. Not only the products in the displays sold better, the whole range of products increased substantially compared to Y-1.

Competition and other channels


Competition and other channels

©2014 IMPhACT


There’s an increasing need for 'omnichannel' communication in the pharmacy.

Integrate online communication in the 'analogue point of sales‘:

- Minimal online presence and translation in the pharmacy.

- Integration of the online offer versus 'analogue'.

- Integration of information between two worlds.

- Adaptation of the loyalty card within the pharmacy.

- Integration of the online sales for loyal patients. How?

'Omnichannel' in a single point of sales


The virtual shop offline


Interaction

Communication

Simplicity

Actions

Direct and continuous contact with clients

The digital OTC wall - (touch) screens

More information on www.imphact.be


Principles of visualisation of products


First impression?


First impression?

Role of the pharmacist and his team


More and more, the pharmacist and his/her team play a crucial role in the success of the pharmacy.

The choice of products, their visibility and the communication approach are important decisions.

The industry can help the pharmacist by actively supporting him/her with the selling out of their products.

We advise to open the discussion about:

• Training

• Routing

• Client focus and interest

• Category management – Shelf space – Facings

• Communication

Communication is key!


1. Who are my clients? What is my client potential? – To • Are my clients in line with my potential in my influence zone? • Do I have the right strategy? • Do I target the right group of clients?

2. Visibility – Client experience - Inside • Are the right products at the right place in line with my client segments? • Do I have the right routing in place or how to change it? • What is the profitability of my products or shelves?

3. Purchase – Inside• What is my purchase potential? • Can I increase my profitability?

4. Communication and promotion – To and Post• What is my image? • How can I communicate or increase communication? • Can I change my client discounts?

5. Implementation – Inside

Imphact gives you concrete answers

Do I target the right location and how to translate this in the pharmacy?

Can I test a specific situation before the launch?

Can I increase loyalty by offering something else than discounts?

„Changeisthelawoflife.

Those wholookonlytothepastortothepresentarecertaintomissthefuture…“

(JohnF.Kennedy)

Wouter Van [email protected]

+32 (0)473/34.40.04

Bart Bierinckx [email protected]

+32 (0)473/89.52.43

Fréderic [email protected]+32 (0) 490/56.32.29

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Commercial Profitability Improvement From Idea to · PDF fileCommercial Profitability Improvement From Idea to Reality. ... drugs is main focus ... Increase in chains and buying groups