Davy de vlieger at the Marketing Shower

1 Growing the pharmacy pie !

Agenda 1. Omega Pharma 2. Pharmacy Landscape in Belgium 3. Is there data available in Pharmacies? 4. How retail-driven are we in OTC? 5. Conclusion2

1.Omega Pharma

Omega Pharma at a glance 1987 Founded in Belgium by 2 pharmacists, including Marc Coucke 1994 MBO by Marc Coucke 1998 Expansion in Belgium and IPO at EUR 3.1 IPO price 2000+ International expansion through acquisitions 2007 Transformation into pure-play OTC through IPO of Arseus 2010 Five pillar strategy, matrix structure, reinforced management Now From pipeline to execution5

Strong geographical coverage Geographical spread (FY2010 sales) Present since 1987 (BE) France Expansion phase 2000-2004 (W EU) 18% Expansion phase 2007-2009 (CEE-CIS) W-Europe Emerging 39% Markets 13% Belgium 30%6 Operations in 35 countries

From € 23m to € 857m turnover in just over a decade 1200 Arseus carve-out Pure OTC company 1,007 Start internationalization 1000 814 857 811 800 789 729 600 400 IPO 178 200 23 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Consumer Health Professional Health7

Unique business model – 100% OTC Push Strategy  Extensive networking with pharmacists  Visibility in pharmacies  Approx. 800 sales reps out of a total of 2,225 employees  Address the evolving distribution of OTC products (e.g. in grocery stores) TV advertising Pull Strategy Educational consumer websites  Focused TV ads  Web information  Consumer education  Ad hoc promotion campaigns (e.g. Paranix in schools)8

2. Pharmacy Landscape in Belgium10

The Belgian Retail / OTC markets cover different distribution channels • ‘OTC’’: one flag covering a complex cargo in Belgium:11

OTC Distribution in Belgium • In Belgium OTC medicines follow • Pharmacy distribution pyramid in the following distribution path: Belgium: Pharma Industry Wholesalers Groups / Pharmacy chains Independent Pharmacy pharmacies chains : sales flow12

3. Is there data available in Pharmacies?14

3. Is there data available in Pharmacies? YES - definitely : ¡ SO data per pharmacy/per day/per sku for the most important Integrated Chains. ¡ CODIMP data ¡ IMS SO data as needed – WD en ND data  cf. Nielsen. ¡ GfK Data ¡ 70 Salesreps visiting 5-6 pharmacies per day ¡ I-Vox Data ¡ Etc.15

4. How retail- driven are we in OTC?17

Most important motors of category growth: Propensity index If the index is over 100, the category is very important for pharmacies. Closure rate The percentage of shoppers at pharmacies who buy the category and have bought it at least once at a pharmacy. Share of requirement Indicates loyalty to pharmacy for this category – for households that buy the category at a pharmacy.18

Most important motors of category growth: Propensity index If the index is over 100, the category is very important for pharmacies.19

Growing the pharmacy pie ! By attracting the “heaviest” buyers:  Zoom Health  Galenco Baby20

ZOOM HEALTH21

Mothers with children are the “heaviest” pharmacy shoppers An important moment for mother and child! Optimal preparation is essential, because there are factors that can make the first weeks of school less pleasant…22

Omega Pharma tells mothers how important good preparation is in23

• Lice  • Colds  • Boost resistance  • Warts and verrucas  • Skin care  Besides communication, always indicate clearly:  BUILDING TRAFFIC of the “heaviest” shoppers to the PHARMACY24

Call to action to visit the pharmacy: Discount vouchers for consumers to get to know our products!25

It‟s often the first products they use at the maternity hospital that Mothers continue to use for their babies GALENCO Baby aims all its activity at “POME”:  Medical team that visits maternity hospital  Product sets available in the maternity hospital  Info packages to teach mums how to take care of their babies27

GALENCO Baby sets contain a LOYALTY card for purchases at the pharmacy:  One product FREE after 5 products purchased  BUILDING TRAFFIC TO THE PHARMACY28

Most important motors of category growth: Closure rate The percentage of shoppers at pharmacies who buy the category and have bought it at least once at a pharmacy.29

Growing the pharmacy pie ! By increasing the ‘closure rate’ at the pharmacy:  Bodysol SUN  Phytosun Arôms30

Few mothers who buy sun protection products buy them at the pharmacy DNA cells damaged during childhood may eventually develop into cancer cells! Mums should be made aware that optimum protection starts in childhood Bodysol Sun is going to help mothers with an educational info guide32

EDUCATIONAL INFO GUIDE  Aimed at mothers  How can I protect my children from the sun pleasantly?  Unique cooperation with Studio 100  Reward system with stickers and cards GUARANTEE OF SUCCESS  motivate children in a positive way33

EDUCATIONAL INFO GUIDE  Including a reward system with stickers and cards to save them on: the child gets a sticker every time it is ‘creamed’  Strong visibility in pharmacies via displays  EXTRA MOTIVATION TO BUY SUN PROTECTION PRODUCTS FOR KIDS AT THE PHARMACY34

Aromatherapy market still very underdeveloped at pharmacies Phytosun trains shoppers at pharmacies:  Small sessions at individual pharmacies by aromatherapy experts  Opportunity to buy36

Phytosun trains pharmacists :  Plenary sessions at 7 locations – inc. „reference materials‟37

Make essential oils accessible via diffusers – combined with starter kits:  Attractively designed/user-friendly diffusers at accessible price – for „easy‟ access to aromatherapy  Combined with starter kit: 4 top selling E.O. with wide-ranging applications.  INCREASE CLOSURE RATE for aromatherapy RELAXING MOOD IMPROVING REVITALISING CLEANSING Lavender abrial Bitter orange tree Lemon Scots pine38

Most important motors of category growth: Share of requirement Indicates loyalty to pharmacy for this category – for households that buy the category at a pharmacy.39

Growing the pharmacy pie ! By increasing the ‘share of requirement’ at pharmacies:  Bodysol range displays & loyalty card  Galenco Baby category management & range actions40

Bodysol business is much stronger in the North than in the South (x2) Visibility is CRUCIAL for Bodysol: stimulate IMPULSE BUYING based on the unique “price/quality ratio” : N: whole range on display ► 48 SKUs (all segments) ◄ S: limited range on mini-display (16 top SKUs – from core42 segments)

The BODYSOL loyalty programme: The aim is to familiarise consumers with the whole RANGE so that they don’t limit themselves to repeat buying just 1 type of product  INCREASE SHARE OF REQUIREMENT 10+1 N: 10+1 free ► 10= 1x DERMO PROTECT 1x BATH or SHAMPOO 8x product of CHOICE ◄ S: 5+1 free 5= 1x DERMO PROTECT 1x BATH or SHAMPOO 3x product of CHOICE43

Milk powder is the baby category bought most often and in the largest quantity at pharmacies Opportunity to stimulate impulse buys in other baby categories via this category:  Group baby milk, hygiene & care products and accessories together  Clear segmentation and arrangement (less is more)  Promotions that stimulate range buys45

=> GROUP all BABY SUBCATEGORIES so that purchases of one category can stimulate purchases of the other. CENTRAL POSITION of category BABY HYGIENE With highest & SKIN CARE penetration and frequence : BABY ACCESSORIES BABY FOOD serves as draw for other baby category purchases46

Rearrange baby care categories:  Group the various categories together  Clear segmentation and signs so it‟s easy for shopper to choose  Separate zone for promotions to stimulate impulse buys  Build SOR via impulse & grouping47

BEFORE AFTER48

Galenco offers promotions that stimulate range buying:  Attractive free gifts when several varieties are purchased  Strong visibility in promotional zone or on the counter Build Share of requirement by stimulating range buying49

5. Conclusion51

PGEU11 december 2008 IFB

PGEUConseils

5. Conclusion Any further questions?58

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Davy de vlieger at the Marketing Shower

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Davy de vlieger at the Marketing Shower — Presentation Transcript