The future of Irish Community Pharmacy

Health+Who?the challenge…

The competition – get in line!

What’s happening…. • 23 visits per person average per pharmacy - lifetime value!• Over 4 million visits per year to c. 1760 pharmacies• Health Professional available c.58 hours per week available to

customers• Shopping habits formed in early 30s, and move from

appearance to health focus from then through life.. and we have an ageing population demographic

• 60% female… the men follow!• Buoyant sector… with changes in the market due to financial

pressures. Pharmacies still opening. “Pull system”• 1 in 4 of 1760 pharmacies are trading at a loss (PWC, 2012)• Government the main paymaster in present model… challenge

– model change to adapt – t/o and margin pressures!

What do the customers want AFTER you get the basics right!?

• Price Vs. Value: Do we know the difference as retailers?!• Trusted advice – “Ask your pharmacist first….” so the

availability of the pharmacist key• It’s all about relationships.. “supermarket shelves can’t

talk to you!” – Ml Guerin of Medicare in NI• Additional professional services- 9 / 10 customers (B&A

2013)• Seating – basic?• Privacy / layout – basic?

What we’re about at

Patient age vs Rx worth (c.80% present business income)

How are we going to be different in a marketplace where customers shop by

sector?!• Redesign in-store for treatment room, privacy and seating – and facilitate patients.

(Layout)• It’s all about relationships so.. “Maitre’d role… monsieur!”.. Stop the “bleed” to chains• “Community focus” and loyalty scheme… “plug in” to peoples lives… baby evening

with “triple points”, beauty treatment on your birthday, cards (church newsletter)• In your face merchandising and offers front of pharmacy (Vs. e.g. Boots). • +++ Hair care, +++ skincare +toiletries (Vs. supermarkets)(B&A) ++ Older care• Focus product range with service engagement… pharmacy only medicines, vitamins,

alternative meds, natural products and skincare• Free up pharmacist time for patients – Lean process development + team

development and up skilling• Additional professional services – warfarin clinic, bone health clinic, older care service,

palliative care service, food intolerance testing service, cholesterol, BP, BMI etc.. 1+1 > 2!

• Allied service providers – visiting chartered physiotherapist, chiropodist podiatrist, dietician, beautician, alternative practitioners (e.g. Bioenergy, Reiki), Massage therapist, acupuncturist, etc… more than just a pharmacy!

More than just your pharmacy…..

Thank youLots to do… http://www.youtube.com/watch?v=dMAS2S51bM8

Any questions or Insights!?

Headlines – B&A May 2013

• Evidence of a profound shift in shopping habits occurring with an evidently large transition to chains (and particularly in Dublin), as a result of new shopping routines, shopping in new areas and experimentation.

• Loyalty has sharply declined as more pharmacy trips are made for non-medical reasons.

• This coincides with poorer performance on most performance indices in Dublin, except in relation to price.

• Price, value and loyalty initiatives are claimed as less important, but shifts in relation to all three are coinciding with market recalibration.

• Significant attitudinal shifts in favour of pharmacists offering more services, and more positivity about generic substitution and other possible cost savers.

• Many (61%) will “ask the pharmacist first” and 36% (up by 11%) feel that many prescription prices are reducing.

Summary & Conclusions – from recent B&A study – May 2013

• Pharmacy performing very well versus supermarkets in HAIRCARE, TOILETRIES and COSMETICS. More challenged in non-prescription medicines. A key battleground.

• Headline number of weekly pharmacy visitors is shown (39% past week, and was 45%). Women, family lifestyle and older remain key.

• Loyalty is sharply changed and a notable year-on-year shift is mainly down to shopping in new areas, and so wanting to try new options. Price a driver, too.

• Big change from 20% using a chain a year ago, to 27% now; across the board, but Dublin switch is profound (from 24% to 41%).

• More are in-store for non-script reasons: OTC purchases and advice.• Notable year-on-year shifts in the area of value, pricing and loyalty: some

may well have switched for these reasons and they seem to be the points of critical focus and store separation.

• Many Dublin assessments are quite weak and this may suggest that some have switched to a new operator that they are less comfortable with, and indeed it is notable that price perceptions have improved in Dublin.

Summary & Conclusions• 48% operate a loyalty scheme up from 43% and quality impressions

well up too.• Much positivity that pharmacists would develop new services such as

blood pressure and cholesterol testing (and that they should dispense the flu vaccine).

• 62% use a pharmacy with a consultation room (was 55% last year). Chains are poorer at publicising these.

• 89% want pharmacists to offer cheaper generic medicines.• 68% will avoid the GP due to expense (and 36% of parents will think

twice about bringing a sick child to the doctor on the same basis). 6% growth, to 47%, strongly agreeing that they will rely on the pharmacists advice ahead of visiting the GP. 61% will visit the pharmacist first.

• 11% more than last year feel that prescription drug prices have fallen: up to 36% from 25%. 69% feel there is more transparency in the pharmacy (versus 62% before) – 85% would still like to see a price list.