A quick “fix” on Pharmacy
Retailing beyond 2009
Prepared by: Scott McLaughlin, Melbourne, Australia.
November , 2009
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.
Consumers are taking health care into their own hands
As self care and self diagnosis are more accessible
And “Big Box” retailing is accelerating commodity and
“leaving it up to me”.
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.
NONE OF THE ABOVE:
Its not what you do, it’s the way that you do it…….
Earning consumer trust.
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?
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
• 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.
• 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
• 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
And continue to search for objective and well informed views
to help their own diagnosis
• 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
Shouldn’t retailers be
Good advice matters to me, but who is helping me decide on
what's right for me
……. they think Pharmacies will be increasingly important
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
If Doctors are less
And they are helping me , not selling me.
It’s a journey to Customer Centricity
The right idea,
Can Pharma get the offer right?
Pharma is trying…… but integration with Retail is …….
There is a lot being said, but……..
Digital / Social: use only as subscribed
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
If Doctors are less advice is less
relevant accessible and less
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!
Customer Journey Customer Journey
Fighting in Value Adding and
Commodity VS Profitable
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Developing something consumers can swallow.
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