&.ecuti/e Summary $'e a!!a' 4iscount P'armacy 54P6 offers lo& +rice medicines to local customers at store and remote customers t'rou-' mail order. $'e +'armacy aims to increase its sales t'rou-' sound mar!etin- strate-ies in order to increase re+eated customers. 4P also aims to im+rove a&areness in customers t'rou-' mar!etin- cam+ai-ns. $'e store intends to decrease its cost of o+erations y eliminatin- unnecessary services for customers y introducin- self7+ay service at store. As t'e trend of mail orders is increasin- so t'e +'armacy &ants to utilise t'is o++ortunity to otain economies of scale y sellin- lar-e amount of dru-s to remote customers &it' less laour re8uired +er order. It is elieved t'at t'e +'armacy &ill -et enormous su++ort from +'armaceutical and insurance com+anies t'at &ill save massive amount of money &'ic' &ill result in an increase in +rofitaility. $'e mar!et s'are of 4P &ill e increased y em+loyin- a numer of mar!etin- strate-ies &'ic' include9 mar!et researc': mar!etin- mix: tar-etin-: and +ositionin- strate-ies.
2
Pharmacy Marketing Plan !( *ntroduction !(! 0/erall Aim In t'is re+ort: a mar!etin- +lan of a ne&ly o+ened store in a usy area of a!!a' is +resented. $'is store;s name is <a!!a' 4iscount P'armacy 54P6= &'ic' aims to sell medicines and ot'er +'armaceutical +roducts at discounted +rices as com+ared to ot'er +'armacies in to&n.
!(1 Products 2 Ser/ices $'e 4P 'as a &ide +roduct line &'ic' covers +rescri+tion dru-s: su++lements: medical instruments: ener-y +roducts: and a fe& varieties of 'eral +roducts. >ot' ori-inal and alternative medication +roducts are availale in t'e +'armacy. $'e $'e store;s +lannin- is to reduce +roduct +rices y increasin- o+eratin- efficiencies and y introducin- self +ay services at store. $'e customer needs to send +rescri+tion in mail: email: or fax to t'e +'armacy and after t'e com+letion of t'e +ayment +rocess t'rou-' t'rou-' deit or credit card: t'e order &ill e dis+atc'ed to t'e customer t'rou-' local +ost office. After t'e success of t'e store: t'e self7delivery service can also e started in future. $'e self7+ay o+tion &ill also e +rovided to t'e customer at t'e store.
!($ 3ey success -actors $'e discounted offers from +'armaceutical and insurance com+anies &ill save enormous cost to 4P and t'is factor &ill increase t'e +rofitaility. In addition: lo&er over'ead and a decrease in o+eratin- costs &ill also si-nificantly contriute to t'e +rofitaility level. $'e mar!et s'are of t'e +'armacy &ill e intensified y increasin- numers t'rou-' various mar!etin- tec'ni8ues. A su+erior level of customer service &ill increase t'e re+eated customers as &ell as referrals.
1( Situational Analysis A situational analysis indicates t'e collection and evaluation of data t'at lin!s &it' internal and external forces t'at may influence t'e +erformance of t'e or-anisation 5?errell: 20126. 3
$'e 4P 'as ust started and -ives more im+ortance to +ro+er mar!etin- strate-y to ac'ieve s'ort7term -oals and lon-7term tar-ets. $'e +'armacy 'as a variety of medical +roducts and medicines t'at customers can +ic!u+ from t'e store or can e delivered to t'em t'rou-' mail order. $'e +'armacy elieves t'at it can attract many customers 8uic!ly due to t'e lo&er +rices and fast delivery services.
1(! Mar)et 4eeds $'e 4P see!s to accom+lis' t'e follo&in- -oals &'ic' are set accordin- to t'e mar!et needs criteria descried y >oone 520126 y !ee+in- in mind t'e needs of t'e +otential customers. Selection9 4P &ill offer a variety of ori-inal and -eneric alternative medication +roducts Pricing9 $'e +'armacy &ill set t'e +rices of its +roducts less t'an t'e ot'er local +'armacies Customer service 9 $'e +'armacy &ill -ive 'i-' im+ortance to customer service and 8uic!
delivery of +roduct to its customers. $'e com+any see!s to exceed t'e customer ex+ectations in order to ensure to a-ain serve t'em and t'eir referrals. Accessibility9 $'e +roducts &ill e availale on store and also can e delivered to t'e
customers at 'ome &it' minimal delivery c'ar-es.
1(1 Mar)et Mar )et rends rends $'e trends in +'armacy mar!et ma r!et are c'an-in- &orld&ide 5Ernst and @ou @oun-: n-: 20136 and Saudi Araia is not an exce+tion. $'e -overnment: doctors: insurance com+anies: and environmental a-encies are +uttin- continuous +ressures on +'armaceutical com+anies aout t'e lo& +rice: 8uality: and +otential side effects of t'e dru-s. Over t'e +ast t&o decades: a +revalent consolidation 'as een done to ac'ieve cost effectiveness of medical +roducts 5entola: 5entola: 2006. $'e 4P emraces all la&s and re-ulations from -overnment and ot'er aut'orise a-encies es+ecially in terms of lo& +rice and environment t'rou-' its dual service suc' as mail order and +ic!u+ from store.
#
1($ Mar)et 5ro6th $'e universal +'armaceutical sector is one of t'e lar-est industries in t'e &orld and -ro&inra+idly as &ell. $'e -ro&t' of +'armaceutical industry cannot e underestimated. $'e industry -ro&t' is attriuted to many internal and external factors suc' as -overnment su++ort: environmental +rotection: service ca+aility: outsourcin-: outsourcin-: and cost effectiveness 5>'attac'arya: 2006. >ut on t'e ot'er 'and: some factors are also 'inderin- its -ro&t'. $'ese factors include9 ra+idly increasin- laour costs: increasin- rivalry: and c'an-ininternational rules and re-ulations. $'e +'armaceutical industry in Saudi Araia is -ro&invery fast as -overnment is ta!in- critical ste+s to im+rove t'e 8uality of 'os+itals and +rovidin- lo& +rice and 8uality dru-s dru-s to end7customer. $'e -overnment is also 'el+in- all medical sta!e'olders to su++ort its initiatives 5Saudi %aBette: 20136.
1( S70 Analysis $'e S)O$ analysis of P4 is availale in tale 1 elo& &'ere t'e stren-t's: &ea!nesses: o++ortunities: and t'reats to t'e +'armacy are 'i-'li-'ted clearly.
Strengths o
Weaknesses
An exclusive usiness model fulfillin- all
o
re-ulations and standards
to start7u+
o
ail order side of t'e usiness
o
o
Co&er +rices com+ared to ot'er local
o
+'armacies o
Di-' start7u+ costs "o +revious ex+erience of runnin- a mail order setu+
Ex+erienced: s!illed: trained: and customer7
o
oriented staff o
"o rand reco-nition and rand e8uity due
Di-' +roaility of c'an-in- rules and re-ulations re-ardin- dru-s and environment
A-reement &it' -iant +'armaceutical
o
com+anies in Saudi Araia and -loally Opportunities o
Threats
Increasin- trend of +urc'asin- medicines t'rou-' mail orders
o
a+idly increasin- laour costs
o
Existin- lar-e com+etitors already +rovidin-
Increasin- 'ealt' issues: emer-ine mer-in- trend of
mail order facility
ta!in- additional medications to remain fit o
o
o
Increase in external mail orders services
o
e-ulatory le-islations t'at may limit t'e
Alliances &it' insurance com+anies and
(
mail order +'armacies
mail order +'armaceutical industry o
S+ecial events suc' as Da: Eid: and ot'er 'olidays t'at may delay t'e +rocess of mail order
1(# Competitor Analysis $'e +'armacy mar!et is 'i-'ly com+etitive in Saudi Araia. $'e main com+etitors of 4P are c'ain +'armacies: local +'armacies: online +'armacies: mail order +'armacies: and international +'armacies. $'e c'ain +'armacies offer more discounted +roducts t'rou-' t'e economies of scale 5*'is'olm7>urns et al. 20136. al. 20136. Several c'ain +'armacies 'ave t'eir +ersonalised service and save t'e data of t'e customer as a record of +urc'ases. $'erefore: t'ey maintain t'e 'istory of t'e customer for t'eir o&n records as &ell as for t'e &ell7einof t'e customers 5Parvis: 20026. $'e local +'armacies on t'e ot'er 'and exist &'ere customers +'ysically visit for +urc'asin- +rescried medicines. $'ese +'armacies are even more 'i-'ly +ersonalised ecause most of t'em are &ell7a&are of t'eir re-ular customers. Do&ever: t'ey c'ar-e 'i-' +rices to t'em and t'us ac'ieve more +rofitaility. Online Online and mail order +'armacies offer similar services as 4P. International +'armacies mar!et t'eir +roducts internationally t'rou-' internet: $ $ advertisement: and t'rou-' social media +latforms 5"avarro: 2006. >ut t'ey tar-et tar-et s+ecific customer se-ments suc' as &omen: c'ildren: senior citiBens: ody uilders etc.
$( Mar)eting Strategy A mar!etin- strate-y is t'at allo&s an or-anisation to concentrate on its o+timal resource and future +ros+ects to increase +rofitaility and ac'ieve sustainale com+etitive advanta-e 5?arrell: 20126.
$(! Aims and 0jecti/es $'e !ey aim of 4P is to offer discounted +rices to local customers and introducin- mail order service to remote customers. $'e +'armacy sets t'ree mar!etin- oectives to ac'ieve success in t'e s'ort and lon- run. $'ey are as follo&s9 ◊ ◊ ◊
A 8uarterly increase in re+eated customers A annual decrease in customer ac8uisition cost Im+rove customer a&areness on constant asis t'rou-' mar!etin- strate-ies ,
$(1 Mar)eting 8esearch >efore startin- and im+lementin- t'e mar!etin- +lan: many focus -rou+ meetin-s &ill e arran-ed to increase t'e understandin- of t'e mar!et and to !no& t'e tar-et customers. Kno&in- t'e tar-et customers is extremely im+ortant efore startin- any usiness any&'ere in t'e &orld 5Pride and ?errell: 20116. $'is is more im+ortant in case of Saudi customers ecause it is not easy to attract local customers ecause of t'eir fait'fulness to existincom+anies. It is elieved t'at t'ese focus -rou+s &ill +rovide useful information and insi-'ts aout t'e tar-et customers. Additionally: 4P &ill conduct a survey aout +urc'asin- dru-s from traditional +'armacies and to !no& to &'at extent t'ey +erceive t'e role of online +'armacies. 4evelo+in- a com+re'ensive: clear: and et'ical survey is +aramount to ma!e sure t'at data collected t'rou-' 8uestionnaires &ill e relevant and accurate 5>el!: 2006. $'e survey &ill e develo+ed y involvin- *EO as 'e is ex+erienced: s!illed: and 'ave lots of !no&led-e of local mar!et. It is elieved t'e survey &ill indicate t'e enefits and ostacles in introducin- a ne& +'armacy in t'e local area &it' distinctive facility of mail order. Anot'er source of mar!etin- researc' &ill e random street intervie&s +eo+le. $'e -eneral 8uestions aout t'e use of dru-s &ill e as!ed from +eo+le to come to !no& aout t'eir needs and ex+ectations. Alto-et'er: t'e mar!et researc' &ill +rovide +'armacy o&ner an overall idea aout efforts 'e needs to do for t'e success of t'e +'armacy 5Pride and ?errell: 20116.
$($ Mar)eting Mi. $'e mar!etin- mix of 4P is com+osed of +roduct: +ricin-: distriution advertisement: and advertisin- and +romotion 5>'attac'arya: 2006. Eac' element is descried as follo&s9 Products 9 $'e +roducts includes9 +rescri+tion dru-s: su++lements: medical instruments:
ener-y +roducts: and a limited variety of 'eral +roducts. Pricing9 $'e +'armacy &ill com+ete &it' its rivals on t'e asis of discounted +rices. Distribution9 $'e +roducts &ill e directly distriuted locally and t'rou-'out a!!a' and
Saudi Araia. "o outsourcin- com+any &ill e em+loyed ut t'e services of +ost office &ill e t'e !ey +art in distriutin- +roducts to remote customers. customers.
c'annels: local ne&s+a+ers F ma-aBines: ne&sletters: and +am+'lets &ill e t'e +romotional instruments.
$( arget Mar)ets $'e 4P &ill ado+t dissimilar mar!etin- strate-y for t'e -rou+ of t&o different mar!et se-ments suc' as &al!7in customers and mail order customers. $'e +'armacy &ill tar-et &al!7in re-ular and +otential customers t'rou-' +a+er advertisements: anners: and +osters. $'e advertisement in En-lis' in surroundin- areas of Dolly +laces &ill e 'i-'ly eneficial for t'e com+any for attractin- forei-ners &'o come for Gmra and Da. $'ese mar!etin- strate-ies &it' discounted offers &ill increase t'e visiility of t'e +'armacy. In t'is era &'en t'e +rices of t'e +'armacy +roducts are increasin- ra+idly: it is elieved t'at discounted offers from P4 &ill a++eal many local customers to uy dru-s from it. $'e second tar-et customers &ill e mail order customers &'o &ill e tar-eted t'rou-' ma-aBines: ne&s+a+ers: television ads: and local community services in area. In addition: distriutin- ne&sletters to cro&d and dro++in- +am+'lets in residential areas &ill increase t'e +o+ularity of t'e +'armacy.
$(# Positioning Strategy $'e 4P &ill +osition itself as a +remier mail order +'armacy &'ic' is self7customer7 oriented in t'e Kin-dom of Saudi Araia. $'e +'armacy &ill +rovide a reason for -ood selection: -reater service: and discounted +rices as com+ared to traditional +'armacies. $'e +ricin- &ill +rovide t'e com+any a com+etitive ed-e. "ormally: "ormally: com+etin- &it' -iant com+etitors on asis of ust +rice is not a sustainale +ractice 5>oone: 20126. Gnli!e ot'er traditional +'armacies in a!!a': 4P &ill e ca+ale of reducin- o+erational costs and t'erefore: t'e +'armacy &ill attem+t to reduce its cost structures and also com+romise on little +rofit mar-ins in t'e first year of its estalis'ment. One tec'ni8ue to cut cost is to em+loy a sin-le +'armacist y fulfillin- t'e rules and re-ulations. As soon t'e +'armacy &ill -et +o+ular t'en t'e services of more +'armacists &ill e considered. $'e 4P is also fully ca+ale of maintainin- industry mar-ins y usin- t'e ot'er o+eratinefficiencies. )it' a medium7siBed store on a street and 'avin- a ul! of usiness t'rou-' mail order &ill si-nificantly decrease t'e o+eratin- costs. ?inally: due to t'e +resence of
+'armacist: t'e 4P is not re8uired re8uired to 'old t'e +atients 'ands &'en t'ey uy +rescried medicines. $'e +'armacy customers are in maority &'o are &ell7informed and ta!e re-ular medicines and also 'ave some a&areness of t'e side7effects of medicines in case of over usa-e. 4es+ite t'e conse8uences: 4P &ill -ive eac' customer a +rint out &it' necessary information on it aout 'o& to consume t'e +roduct in case of -eneral medicines &it' no +rescri+tions.
( Monitoring and Controlling $'e asic aim of a mar!etin- +lan is to +rovide a rou-' estimate to 4P. $'e +'armacy &ill monitor follo&in- areas to 'ave control over its +erformance. $'ese areas include mont'ly: mont'ly: 8uarterly: and annual revenues and ex+endituresH re+eatin- customers: and customer satisfaction y ta!in- t'e o+inions of customers t'rou-' com+laint and su--estions oxes in t'e store.
8e-erences >el!: .). 52006. Handbook 52006. Handbook of Qualitative Qualitative Research Methods in Marketing . Ed&ard El-ar Pulis'in>'attac'arya: *. 52006. Services marketing . Excel >oo!s India >oone: C.E. 520126. Contemporary Marketing . 1,t' edition: *en-a-e Cearnin*'is'olm7>urns: .A.: aillancourt: aillancourt: A.. and S'e+'erd: . 520136. Pharmacy Management, eadership, Marketing, and and !inance. !inance . ones F >artlett Pulis'ers Ernst and @oun- 520136. "he shifting pharmaceutical industry landscape. landscape . anuary 2013. ?errell: O.*. 520126. Marketing 520126. Marketing Strategy "e#t "e#t and Cases. Cases. ,t' edition: *en-a-e CearninParvis: E.". 520026. "he Pharmaceutical $ndustry% &ccess and 'utlook . "ova Pulis'ers "avarro: .P. .P. 52006. 52006. Managed Managed care pharmacy practice. practice. 2nd edition: ones F >artlett Pulis'ers Pride: ).. ).. and ?errell: O.*. 520116. Marketing 520116. Marketing . *en-a-e CearninSaudi %aBette 520136. (S& 520136. (S& leads )CC pharmaceutical sector gro*th. gro*th. A+ril 01: 2013 entola: entola: *.C. 52006. *'allen-es in evaluatin- and standardiBin- medical devices in 'ealt'care facilities. & facilities. & Peer+Revie*ed ournal for Care Care and Hospital !ormulary !ormulary Management . 335,6: ++. 3#J3(
