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
Commercial Profitability ImprovementFrom Idea to Reality
Wedesign solutionsfortheindependentpharmacisttosupporthim/herwiththecommercialandeconomicalmanagementofhis/herpharmacy.
Wehelppharmaciststofocusonhealthsupportandtoguaranteehighqualityservicewithintoday’scontinuously
changingmarketenvironment.
Wouter Van Meel - Imphact
Commercial Profitability ImprovementFrom Idea to Reality
• Introduction
• Pharmacy landscape
• Product communication in the pharmacy
• Q&A
Agenda
Commercial Profitability ImprovementFrom Idea to Reality
The basics of economy over the years
Material
Product
Service
Experience
Difference Relevance
Premium Price Basic price
Significance
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
… 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
Commercial Profitability ImprovementFrom Idea to Reality
• Introduction
• Pharmacy landscape
• Product communication in the pharmacy
• Q&A
Agenda
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
Pharmacy 1
Circulation of the clients
Zone that
people see
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
Pharmacy 2
Circulation of the clients
Zone that
people see
OTC
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
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.’
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
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.
Commercial Profitability ImprovementFrom Idea to Reality
Extra support for internal communication
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
Competition and other channels
©2014 IMPhACT
Commercial Profitability ImprovementFrom Idea to Reality
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
Commercial Profitability ImprovementFrom Idea to Reality
The virtual shop offline
Commercial Profitability ImprovementFrom Idea to Reality
Interaction
Communication
Simplicity
Actions
Direct and continuous contact with clients
The digital OTC wall - (touch) screens
More information on www.imphact.be
Commercial Profitability ImprovementFrom Idea to Reality
Principles of visualisation of products
Commercial Profitability ImprovementFrom Idea to Reality
First impression?
Commercial Profitability ImprovementFrom Idea to Reality
First impression?
Role of the pharmacist and his team
Commercial Profitability ImprovementFrom Idea to Reality
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!
Commercial Profitability ImprovementFrom Idea to Reality
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