Consumer profiles use in CHC - OTC environment

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This presentation gives an overview of the usage of consumer profiles in a pharmacy -CHC environment.

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Consumer profiles use in CHC - OTC environment

  1. 1. IM.around - Consumer insights Bart Bierinckx 06/07/2010 © 2010 IM Associates S&M Excellence
  2. 2. <ul><li>There is a need for a strong consumer orientation and selling-out focus in the Belgian Consumer Healthcare industry, and more in particular in the pharmacy channel. E.g.: professor Lies Leemans (Professor pharmacotherapy OTC at the ULB) in her recent book about pharmacy management: </li></ul>Background: Need for consumer orientation among pharmacies © 2010 IM Associates S&M Excellence <ul><li>Pay attention to visual communication inside and outside your pharmacy. </li></ul><ul><li>Use GEOmarketing . It will influence your sales positively without impacting your scientific pharmacist image. </li></ul><ul><li>Pay attention to merchandising principles such as hot/cold spots , routing , shelf management … </li></ul><ul><li>Define clear priorities in your pharmacy. Take them into account in your communication style and in the pharmacy’s organization . </li></ul><ul><li>Source: Lies Leemans “Van winkel tot apotheek” </li></ul>
  3. 3. <ul><li>IM.around is our database which links all consumer information to individual pharmacies, in order to: </li></ul><ul><ul><li>Identify a concrete consumer profile for all Belgian pharmacies </li></ul></ul><ul><ul><li>Be able to have an impact on an individual POS level </li></ul></ul>IM.around in a nutshell © 2010 IM Associates S&M Excellence
  4. 4. IM.around is based on the most extensive consumer data source <ul><li>Based on WDM data (Geo-Info) </li></ul><ul><ul><li>Demographic data: gender, age, … </li></ul></ul><ul><ul><li>Socio-demographic data: Social classes, education, … </li></ul></ul><ul><ul><li>Life Style information: Buying preferences, Media profiles, Healthcare preferences, Food & Beverage profiles, … </li></ul></ul><ul><ul><ul><li>WDM collects these data using several data sources: NIS, Scanning data of supermarkets, National Bank, … </li></ul></ul></ul><ul><li>Delivered on statistical sector level (down to +/- 20.000 sectors for Belgium) </li></ul>© 2010 IM Associates S&M Excellence
  5. 5. IM Associates has linked these consumer data to individual pharmacies with support of I-BioStat (University of Leuven & Hasselt) <ul><li>IM Associates and I-BioStat (Interuniversity Institute for Statistics) have defined the impact radius for each individual pharmacy. </li></ul><ul><li>After consolidation of the consumer profiles within the radius, we have created a clear view on the consumers visiting each individual pharmacy. </li></ul>© 2010 IM Associates S&M Excellence
  6. 6. <ul><li>A radius per pharmacy: </li></ul><ul><ul><li>K-Means : A radius depending on potential based clusters of the pharmacy with: </li></ul></ul><ul><ul><ul><li>High intra-class similarity </li></ul></ul></ul><ul><ul><ul><li>Low inter-class similarity </li></ul></ul></ul><ul><ul><li>Floating catchment area : A radius depending on the pharmacy’s geo-information </li></ul></ul>A radius has been calculated based on multiple effects © 2010 IM Associates S&M Excellence
  7. 7. Result: A geographical segmentation model through consumer insights which can be linked with our customers’ databases © 2010 IM Associates S&M Excellence Social class Age Gender Family type Nationality Customer type Cluster 1 Cluster 2 Cluster 3
  8. 8. Typical IM.around services for pharmacies © 2010 IM Associates S&M Excellence Category Management Use consumer date to enrich your product offering and space/shelf management in a pharmacy Performance Management Measure your performance on POS level and identify low hanging fruit Location Management Identify good locations to upgrade your pharmacy chain, with appropriate consumer profiles Training Train your pharmacists to improve their selling-out & merchandising skills, based on consumer insights of their own and colleague POS
  9. 9. <ul><li>Conclusion: </li></ul><ul><ul><li>Category Management focuses per definition on Selling-Out </li></ul></ul><ul><ul><li>Category Management requires knowledge of the pharmacy environment and the clients/patients needs within the pharmacy </li></ul></ul>The idea of “Category Management” © 2010 IM Associates S&M Excellence The main idea of Category Management is to increase category sales for the customer while improving its own shelf space and therefore increasing sales or margin
  10. 10. Steps of a complete ‘category management’ roll-out “ Category Captain” defines the Category approach © 2010 IM Associates S&M Excellence Strategic part 1. Define importance of market segments / categories in a pharmacy based on market and consumer insight 2. Define the necessary total number of references and their importance within a category 3. Translate these category and brand insights into ‘space management’ Tactical part 4. Translate strategic decisions into concrete assortment proposals, considering ‘must haves’ and visibility 5. Work out concrete pharmacy‘planograms’ , with a strong focus on ‘how to communicate to the pharmacist’
  11. 11. <ul><li>Key points for a pharmacy's organization: </li></ul><ul><ul><li>Routing </li></ul></ul><ul><ul><ul><li>How do customers move through the pharmacy? </li></ul></ul></ul><ul><ul><li>Thematic zones </li></ul></ul><ul><ul><ul><li>How are these zone organized? </li></ul></ul></ul><ul><ul><li>Hot spots </li></ul></ul><ul><ul><ul><li>How are hot spots being used? </li></ul></ul></ul><ul><ul><li>Shelves </li></ul></ul><ul><ul><ul><li>How are shelves organized? </li></ul></ul></ul>The impact of category management depends strongly on a pharmacy’s organization © 2010 IM Associates S&M Excellence
  12. 12. <ul><li>3 important elements: </li></ul>Sell-out in the pharmacy Pharmacy advice In-Pharmacy content Window visibility In-Pharmacy format Shelf attractiveness In-Pharmacy format © 2010 IM Associates S&M Excellence
  13. 13. In-Pharmacy format: Identification and extension of “hot spot” visibility © 2010 IM Associates S&M Excellence <ul><li>To be able to improve ‘permanent visibility’, one needs to: </li></ul><ul><ul><li>Identify “hot spot” locations on an individual pharmacy level. Depending on the brand / category, these “hot spots” should be differentiated ‘behind the counter’ and in the ‘self selection part’ </li></ul></ul><ul><li>Routing : Hot spot locations can be extended when customers need to follow a certain path in the pharmacy, e.g. by low closets or a separate entry and exit door </li></ul>
  14. 14. <ul><li>Some examples </li></ul>The routing and the positioning of the shelves is very important in terms of visibility © 2010 IM Associates S&M Excellence 5/10 8/10 2/10 10/10 5/10 2/10
  15. 15. The routing and the positioning of the shelves is very important in terms of visibility <ul><li>Some examples </li></ul>© 2010 IM Associates S&M Excellence 4/10 8/10 10/10 2/10 1/10 1/10
  16. 16. <ul><li>All pharmacists should be aware of these different zones and their visibility, seen the different impact on realized sales (& margin). E.g.: </li></ul>Each pharmacy is divided in different zones, with a different impact on sales © 2010 IM Associates S&M Excellence
  17. 17. In-Pharmacy Format: Shelf and space management as selling-out tool <ul><li>Shelf and space management should be adapted to POS’ consumer profiles: </li></ul><ul><ul><li>Which products to be placed on “hot spots” to increase category and product sales? </li></ul></ul><ul><ul><li>Which categories are the POS customers specifically interested in and how to implement this? </li></ul></ul><ul><ul><li>How will facings and shelf space be organized </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>IM.around conclusions allow to work out a differentiated POS approach in order to create real added value </li></ul>© 2010 IM Associates S&M Excellence
  18. 18. <ul><li>E.g.: shelf management based on turnover: </li></ul>In-Pharmacy Format: Shelf and space management as selling-out tool © 2010 IM Associates S&M Excellence Best selling zone More than 50% of sales…
  19. 19. In-Pharmacy Content: We need to make sure that the pharmacies receive & bring adapted information <ul><li>Pharmacy-to-consumer messaging : adapt face-to-face or digital messaging : E.g.: </li></ul><ul><ul><li>Are we currently able to concretely support pharmacies as far as their promotional communication or category management are concerned? </li></ul></ul><ul><ul><li>Pharmacies’ advice function: how can we support the pharmacy in this growing responsibility? </li></ul></ul><ul><ul><li>How does a pharmacy needs to communicate with different consumer types? </li></ul></ul>© 2010 IM Associates S&M Excellence
  20. 20. Typical IM.around services for pharmacies © 2010 IM Associates S&M Excellence Category Management Use consumer date to enrich your product offering and space/shelf management in a pharmacy Performance Management Measure your performance on POS level and identify low hanging fruit Location Management Identify good locations to upgrade your pharmacy chain, with appropriate consumer profiles Training Train your pharmacists to improve their selling-out & merchandising skills, based on consumer insights of their own and colleague POS
  21. 21. Performance Indicator: Integrate IM.around in your reporting <ul><li>Follow-up will be crucial to assure an appropriate implementation of the available consumer information: </li></ul><ul><ul><li>Are you top performing pharmacies attracting different consumer profiles or do they deal with them differently? </li></ul></ul><ul><ul><li>How are the sales results evolving among different consumer groups? </li></ul></ul><ul><ul><li>Are the shelves organized in line with the defined target groups? </li></ul></ul><ul><ul><li>High penetration of target group </li></ul></ul><ul><ul><li>Medium penetration of target group </li></ul></ul><ul><ul><li>Low penetration of target group </li></ul></ul>© 2010 IM Associates S&M Excellence
  22. 22. Typical IM.around services for pharmacies © 2010 IM Associates S&M Excellence Category Management Use consumer date to enrich your product offering and space/shelf management in a pharmacy Performance Management Measure your performance on POS level and identify low hanging fruit Location Management Identify good locations to upgrade your pharmacy chain, with appropriate consumer profiles Training Train your pharmacists to improve their selling-out & merchandising skills, based on consumer insights of their own and colleague POS
  23. 23. Location management: Helping chains to find new locations based on consumer profiles <ul><li>POS Locator : define the optimal location of new POS based on consumer profiles: </li></ul><ul><ul><li>Point out locations with similar consumer profiles as the profiles of successful existing POS </li></ul></ul><ul><ul><li>Identify the untapped potential on a regional level </li></ul></ul><ul><li>Business Foresight : allows to build a bottom up business forecast on a group or a POS level: </li></ul><ul><ul><li>Forecast of sales per product category based on consumer insights gathered on other POS </li></ul></ul><ul><ul><li>Forecasts based on regional untapped potential </li></ul></ul><ul><ul><li>Identification of concrete growth opportunities on a POS level </li></ul></ul>© 2010 IM Associates S&M Excellence
  24. 24. Typical IM.around services for pharmacies © 2010 IM Associates S&M Excellence Category Management Use consumer date to enrich your product offering and space/shelf management in a pharmacy Performance Management Measure your performance on POS level and identify low hanging fruit Location Management Identify good locations to upgrade your pharmacy chain, with appropriate consumer profiles Training Train your pharmacists to improve their selling-out & merchandising skills, based on consumer insights of their own and colleague POS
  25. 25. <ul><li>IM Associates elaborated a pharmacy training program. Following topics can be integrated in this training: </li></ul><ul><ul><li>Selling-out approach: How to improve the pharmacy’s selling-out? What can be the influence of the pharmacy’s organization on results? … </li></ul></ul><ul><ul><li>Pharmacy Management: How can data be used to improve pharmacy’s results? </li></ul></ul><ul><ul><li>Merchandising: How can a pharmacist work with merchandising in his/her pharmacy? </li></ul></ul>Pharmacy Training © 2010 IM Associates S&M Excellence
  26. 26. Typical IM.around services for pharmacies © 2010 IM Associates S&M Excellence Category Management Use consumer date to enrich your product offering and space/shelf management in a pharmacy Performance Management Measure your performance on POS level and identify low hanging fruit Location Management Identify good locations to upgrade your pharmacy chain, with appropriate consumer profiles Training Train your pharmacists to improve their selling-out & merchandising skills, based on consumer insights of their own and colleague POS
  27. 27. <ul><li>Bart Bierinckx </li></ul><ul><ul><li>Email: [email_address] </li></ul></ul><ul><ul><li>Tel: +32 16 22 47 43 </li></ul></ul><ul><ul><li>Gsm: +32 473 89 52 43 </li></ul></ul><ul><li>Website: http://www.im-associates.eu </li></ul><ul><li>Address: Brusselsesteenweg 52, 3000 Leuven (Belgium) </li></ul>Q&A © 2010 IM Associates S&M Excellence
  28. 28. IM.around: A new dimension of services Industry Value Excellence POS Value Excellence Micro Targeting Innovation Spotter In Pharmacy Format In Pharmacy Contents Activity Profiler Business Foresight POS Locator E-support Performance Indicator Potential Spotter Channel Profiler Selling-out Life Time Value Management IM.around Health Check Sales Excellence Marketing Excellence © 2010 IM Associates S&M Excellence

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