A Few thoughts about Pharma Retailing


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A Few thoughts about Pharma Retailing

  1. 1. FUTURELAB A quick “fix” on Pharmacy Retailing beyond 2009 Prepared by: Scott McLaughlin, Melbourne, Australia. November , 2009 1
  2. 2. FUTURELAB 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.
  3. 3. FUTURELAB Consumers are taking health care into their own hands
  4. 4. FUTURELAB Healthcare As self care and self diagnosis are more accessible 4
  5. 5. FUTURELAB And “Big Box” retailing is accelerating commodity and “leaving it up to me”.
  6. 6. FUTURELAB 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. 6
  7. 7. FUTURELAB 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? 7
  8. 8. FUTURELAB 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? 8
  9. 9. FUTURELAB • 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 9
  10. 10. FUTURELAB •  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 10
  11. 11. FUTURELAB 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 11
  12. 12. FUTURELAB ……. they think Pharmacies will be increasingly important 12
  13. 13. FUTURELAB As long as its within reach 13
  14. 14. FUTURELAB 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 14
  15. 15. FUTURELAB If Doctors are less relevant And they are helping me , not selling me. 15
  16. 16. FUTURELAB It’s a journey to Customer Centricity 16
  17. 17. FUTURELAB The right idea, executed by the right stakeholder will make the difference Can Pharma get the offer right? 17
  18. 18. FUTURELAB Pharma is trying…… but integration with Retail is ……. 18
  19. 19. FUTURELAB There is a lot being said, but…….. Digital / Social: use only as subscribed 19
  20. 20. FUTURELAB 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 20
  21. 21. FUTURELAB 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! 21
  22. 22. FUTURELAB 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 22
  23. 23. FUTURELAB 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. 23
  24. 24. FUTURELAB FUTURELAB Athens Brussels Bucharest Chicago Hamburg Helsinki Iasi Kiev Melbourne Miami Milton Keynes Moscow Shanghai The Hague Valencia
  25. 25. FUTURELAB Who We Are We are marketing strategy consultants that drive profit through customer-centricity & innovation. At Futurelab, we believe that true shareholder value comes from growing revenues, rather than cutting costs. 20+ world-class In-house desk International associates acting as research and trend publications & thought That is why we want to be a source of new “one global team” analysis resources leadership profit opportunity for your business. We can support with: •  practices to grow customer equity •  marketing that makes money •  innovations that are competitive We focus on the end result, not the report. Like an architect, we add to your vision and – if required - manage your agencies and vendors towards the desired result. Along the way, we challenge any convention, •  Remarkable practice research •  75K regular blog readers corporate habit or industry dogma that •  Social Media Analysis •  +100,000 readers of prevents you from doing what is right. •  Presentation Development presentations & papers •  Innovation Studies •  regular speaking & media For further information about our services, •  Trend Analysis appearances please go to www.futurelab.net. •  General Desk Research •  on a mission to change the marketing profession A selection from over 100 credentials 25
  26. 26. FUTURELAB FUTURELAB What We Do Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result. Maximise the Connect to Innovate with return on your customers in a meaning to the marketing more profitable customer and the investments manner. bottom line. •  Media Optimisation •  ProfitScans •  Retail/Shopper Marketing •  Digital & Social Media •  Proposition Design •  Customer Insights •  Communication Strategy •  Sustainability •  Customer Journey •  Advocacy/Word-of-Mouth •  Crowdsourcing •  Customer Economics
  27. 27. FUTURELAB FUTURELAB How We Are Different Traditional business No-nonsense, strategic Creatively inspired vendors consultants that write pragmatists that help you and advisors who seek peer thick reports and let you make bold strategic moves recognition, awards and worry about it and stick around until the maintaining a status quo in afterwards. results are in. the industry. Business Model Business Model Business Model •  Project assignments aimed at •  Long term customer •  Campaign mindset aimed at maximising short term revenues relationship mindset maximising short term profit •  Extensive use of juniors •  Seasoned expert teams for •  Locked-in to industry set ways client assisgnments, juniors for of working •  Leveraging same (secret) back office work knowledge over various clients •  Premium on creativity over •  Mix creative & analytics with business results (low analytics) •  High analytics/low creative common business sense •  No vested interest in eventual •  No vested interest in eventual •  Open to (partially) result based business result business result compensation for LT-contracts
  28. 28. FUTURELAB 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? •  Who are the influencers that matter, how important are they and what do they think? •  When, how and where is the best moment to influence customer behaviour? While our services takes us to every area of the marketing mix, in this document we focus on $ four which we believe may be of interest/relevance. Digital & Social Media Optimisation Retail Innovation 28
  29. 29. FUTURELAB Digital/Social Our Capabilities We make sure digital/social “works” Research for your brand. •  Cool hunting •  Influencer profiling •  Online reputation scoring We help you formulate “what great looks like” •  Online reputation indicators •  Influencer Mapping & profiling We work with your agencies, vendors and teams to “make great a reality” •  Usability assessment Engagement Futurelab ‘s digital associates have a track •  On & off-site user engagement record in international digital at both senior and •  User journey strategy operational levels. •  Social media strategy •  Advergaming strategy Their assignments have involved complex user •  Customer advocacy engagement programs for companies ranging •  User relationship management from FMCG to research & consultancy, implemented efficiency award winning interactive Evolution campaigns, optimized region level interactive marketing strategies and launched large-scale e- •  Digital spokesperson identification & training commerce initiatives. •  Digital relationship consultancy •  Digital crisis management All to say, that when we propose solutions, they •  Content management are designed by interactive specialists for your interactive reality. Monitoring •  Social media tracking •  Brand alerts Some brands our associates have helped in building digital relationships: •  Periodical reports Monetization •  Revenue modeling •  ROI analysis for digital initiatives •  Opportunity identification •  Partnership brokerage 29
  30. 30. FUTURELAB Media Optimisation Our Capabilities We help you to increase the return on MediaScan your media spend •  •  Effectiveness analysis Efficiency analysis •  Cost & quality performance benchmarking •  Opportunity identification We ensure your various media & agency partners deliver what they should Media Strategy We identify underperforming media and help you focus on those with highest ROI •  Customer Centric Media Modeling •  Transmedia concept development •  Media integration planning Futurelab ‘s media associates are senior level •  Creative & business strategy integration experts which have collectively influenced over •  Commercial impact forecasting ! 10 billion in budgets on a global scale. Budget optimisation In this, they have built a track record of •  Rightsizing of media budgets Are billboards a ensuring savings and adding value for a host of •  Intelligent budget reduction waste of money? international blue-chip advertisers. Did you pay a fair price? •  Optimising budget allocation Today, we deliver media management programmes through a network of over 40 Agency Management independent media consultancies spread •  Selection (& transition) across 4 continents. •  Briefings (creative & media) •  Contract & fee negotiations •  Performance Related Incentive Programmes Some brands our associates •  Agency capability audits and enhancement assisted in media matters: (processes & skills) Compliance and transparency •  Investigation of current compliance levels •  Recuperation of agency volume bonuses •  Invoice auditing establishing debts/credits •  Rightsizing of agency FTE allocation •  General media auditing 30
  31. 31. FUTURELAB Retail Our Capabilities We help maximise the return per Retail Strategy customer and square meter. •  •  Strategic planning E-commerce integration •  Customer journey mapping •  Shopper insight research We help you formulate “what great looks like” •  Roll-out planning We work with your agencies, vendors and teams to “make great a reality” Retail Development •  Concept development •  Retail innovation services Futurelab ‘s retail associates have a track •  Customer centric retail design record in international retail at both senior and •  Flagship development operational levels. •  Brand/Format integration Our associates have operated stores from Retail Operations Ireland to Kazachstan, implemented global •  Space optimisation visual merchandising programmes, optimised •  Retail Presence Audits retail marketing programmes and launched •  People alignment large-scale e-commerce initiatives. •  Visual Merchandising Services •  Staff Training services All to say, that when we propose solutions, they are designed by retailers for your retail reality. Buying and Merchandising •  Merchandise mix optimisation •  Retail sales forecasting •  Marketing initiative impact analysis Some brands our associates have helped on retail & customer matters: •  Upsell & product affinity planning Retail Marketing •  Retail marketing planning •  Agency selection, briefing & management •  Multi-channel traffic generation •  Shopper activation •  Loyalty and word-of-mouth programmes •  Narrowcasting implementation 31
  32. 32. FUTURELAB Innovation Our Capabilities We identify new profit opportunities Innovation Methods for your business •  •  Creative Deconstruction Innovation Landscaping •  ... We provide inspiration to your teams We identify opportunities to enhance your business and reshape your industry Desk Research •  Trend Analysis •  Best practice reviews Futurelab’s ProfitScan brings a fresh eye to •  Competitive Intelligence your business, products and markets. Help you short-cut your innovation efforts. Using your existing pipeline & our own Inspiration Days resources we deliver 10-20 new profit opportunities in a timespan of a week. Some will have a small impact. Some will reshape the foundations of your industry. If you are truly committed, you can then be up and running in months, perhaps even weeks. Corporate Thinktank •  ... Some brands our associates have helped on profitscans matters: Profitscan Logos of sanoma, ispa, heineken, •  ... Teleatlas ... And other profitscan clients 32