A few thoughts about pharmaceutical retailing in Australia....

1. FUTURELAB
A quick “fix” on Pharmacy
Retailing beyond 2009
Prepared by: Scott McLaughlin, Melbourne, Australia.
November , 2009
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In the last 15 Years Patients have become Prescribers
Access to information has broken traditional models
Single channel solutions are no longer relevant
……and its costing every body.

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Consumers are taking health care into their own hands

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Healthcare
As self care and self diagnosis are more accessible
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And “Big Box” retailing is accelerating commodity and
“leaving it up to me”.

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RITE AID: Based on our spy mission to Rite Aid, it was immediately clear that the
drugstore is winning with its store-branded merchandise………………………
But Rite Aid appears to be struggling with its premium products………….
CVS: ……a smaller selection of store-named products…..
Still, consumers in our store would find their deals on better-known names like
Neutrogena and Herbal Essence, which allowed CVS to score high in the cosmetics/
hair care category. It also featured a huge 50% to 75% off promotion on cosmetics
like Revlon and Physicians Formula.
WALGREENS: ……..the best job "tricking" its consumers with its "Compare & Save"
campaign. ….Throughout the store, Walgreen-branded merchandise is strategically
placed next to comparable name-brand items.
………tight inventory control……………….,, shoppers looking for some of their
favorite brands may be disappointed.
http://www.thestreet.com/story/10530482/2/the-shopping-spy-inside-the-drugstores.html
NONE OF THE ABOVE:
Its not what you do, it’s the way that you do it…….
Earning consumer trust.
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When choosing a non-prescription medicine, what factors are important to you?
Global vs Europe
Is this why I am just as reliant on “my opinion” as the advice
of a Pharmacist?
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What do you think will be the main way your usage of non-prescription medicines will change?
And why people are seeking to lower risk through safe
alternatives?
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• More US adults use the internet than they use doctors for obtaining health
and medical information.
• Consumers are much more likely to begin their quest for health information
with a search engine rather going directly to a website.
The critical
• Consumers who visit product sites are nearly three times more likely than
the average US adult to request prescriptions by name from their doctors. role of
Search is
• When consumers use search engines for pharmaceutical or health
information online, they are most likely to search by the name of a specific just an
condition/disease or the name of a specific product. example
• The most common situation for which they use a search engine for this
purpose is when they have symptoms for a condition.
• Approximately three out of four U.S. nurses recommend health websites to
patients
And continue to search for objective and well informed views
to help their own diagnosis
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• Approximately two-thirds of ePharma Consumers think they can tell if a medical site is from a
credible source prior to clicking on the search result, indicating that consumers feel that they are
proficient searchers and are able to parse out relevant content for themselves.
………and they’re not afraid to use it
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Can manufacturers
be objective?
Shouldn’t retailers be
more accessible?
Good advice matters to me, but who is helping me decide on
what's right for me
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……. they think Pharmacies will be increasingly important
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As long as its within reach
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Most people who suffer from arthritis, asthma or
cardiovascular disease are aware that their well-being can
be affected by the weather. Developed to warn them in
advance, MediClim emails registered users when changes
in humidity, pollen count, barometric pressure and
temperature might change how they feel.
And I manage the relationship
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If Doctors are less
relevant
And they are helping me , not selling me.
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It’s a journey to Customer Centricity
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The right idea,
executed by
the right
stakeholder will
make the
difference
Can Pharma get the offer right?
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Pharma is trying…… but integration with Retail is …….
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There is a lot being said, but……..
Digital / Social: use only as subscribed
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Media "Tough economic times cause marketers to be held more
accountable for spending and measurement," says Bard. "With over 145
million consumers online for health, new media offers cost-effective ways to
reach and engage target audiences.”
Making media accountable, knowing one size does not fit all
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So……
And Pharmacists
If Doctors are less advice is less
relevant accessible and less
relied upon
Who is going to help me make informed choices?
Who can I rely on and how will they engage me on my terms?
What I need, When I need it, How I need it!
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Customer Journey Customer Journey
Fighting in Value Adding and
Commodity VS Profitable
Future Store Concept Future Store Concept
• Breadth of Range • Total Health Management
• Speed of Service • Focussed “Health only” range
• Impulse and complimentary up selling • Accessible & Consultative
• Keen Pricing • Private / Personal
• Loyalty Discounts • Vertically integrated offer across multiple
channels
Retailers adding value
to customers and profit to the bottom line
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Traditional Retail Futurelab Retail
Concept Design Concept Design
1. Brand Immersion 1. Consumer Immersion &
2. Consumer & Staff opportunity identification
engagement 2. Ideation and Brand Fit
3. Ideation / Idea Scanning 3. Profit Architecture
4. Outdoing great Ideas 4. Shape the multi-channel
execution
Developing something consumers can swallow.
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24. FUTURELAB
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A selection from over 100 credentials
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What We Do
We help businesses identify new Some questions we (almost) always ask
profit opportunities.
For this we always start from the
customer’s perspective and look at ways
to become more relevant, engaging or
reputable.
In our experience, this approach typically
leads for clear opportunities to monetize • Which are the steps in the customer journey (from the customer perspective)?
the existing reputation of a business, and
develop opportunities for future growth. • What are the choice drivers that make people move from one step to the next?
• Which underlying rational/emotional insights need to be taken into account?
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$ four which we believe may be of interest/relevance.
Digital & Social Media Optimisation Retail Innovation
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29. FUTURELAB
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Their assignments have involved complex user
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31. FUTURELAB
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customer and square meter. •
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We work with your agencies, vendors and teams to “make great a reality” Retail Development
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record in international retail at both senior and • Flagship development
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Our associates have operated stores from Retail Operations
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32. FUTURELAB
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Our Capabilities
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• ...
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• ...
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Profitscan
Logos of sanoma, ispa, heineken, • ...
Teleatlas ... And other profitscan
clients
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