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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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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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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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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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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
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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
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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
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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?
• 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
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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
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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
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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
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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
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