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International Journal of Business and Management Studies,
CD-ROM. ISSN: 2158-1479 :: 1(2):149–159 (2012)
GUIDE LINE FOR MARKETING STRATEGY IMPROVEMENT OF
DRUG STORE IN BANGKOK METROPOLITAN
Sirijanya Kuawiriyapan
King Mongkut’s Institute of Technology, Thailand
The objective of the study is to investigate the marketing factors which affect the drug store service
usage and to do research on the guide line for marketing strategy improvement of drug stores. Data was
collected through a questionnaire that asked 385 service users and from interviews with those who were
directly involved with the drug store business. The results of the study revealed that most of the sample
group were females, aged 21-30 years old, single, holding a bachelor’s degree, private company
employees with an average monthly income of 10,001-15,000 Baht. Mostly, the sample group went to
drug stores near their house where pharmacists were on stand-by duty. The product factor receiving the
highest level was that the drugs for sale should be legal drugs. The price factor receiving the much level
was that the price of the medicines matched the quality. A factor that resulted in considerable attention
was that the store was well-lit, not too dark. The marketing promotion factor receiving the moderate
level was that there were discounts for large purchases. The service factor receiving the highest level
was that the store provided a fast service. The personnel factor receiving the highest level were that the
salesmen were polite, courteous, always smiled, and were knowledgeable about medicines. The
marketing strategy development direction for drug stores include having well-trained pharmacists,
creating a competitive advantage, improving management systems, setting a clear market position and
target group, differentiating in products and services. The suggestion for the research was that drug
stores should increase the healthcare protective product category by transforming into health center
providing health consultation regardless of no sign of illness. In addition, the store decoration was
important depending on the target market and location. Also, pharmacists should change their role into
being a interdisciplinary treatment provider.
Importance and Barriers to Study
A “Drug store” is a place for people in society to resort to as well as an important medicines distribution
channel for the retail sector. Therefore, drugstores play an important role as a business which seeks profit
and provides correct drug usage instructions to consumers. In order to protect consumers, governments
need to be strict in governing the business sectors related to medicine manufacturers, sellers, and
importers by enforcing the Good Pharmacy Practice (GPP) since 2008. The Good Pharmacy Practice
(GPP) stipulates that new drugstores have to contain real pharmacists working fulltime and new drugstore
needs to pass the Good Pharmacy Practice (GPP) criteria as well. For the drugstores already in operation,
they need to develop according to the Good Pharmacy Practice (GPP) within 8 years and need to contain
real pharmacists; if not, their pharmacy license will not be renewed; which means closing down the
business (Thai Drugstore Club 2009). Currently, “Drugstores” are not the first choice for consumers to
seek treatment. Consumers have an alternative to get treatment at government hospitals according to the
149
150 Sirijanya Kuawiriyapan
rights of the "30-Baht Health Care" scheme: private company employees can exercise the right to Social
Security or anyone aged over 60 years old can get free treatment at government hospitals according to the
rights stipulated in the 30-Baht medical card. According to the consumer’s medicine buying behavior, it
was found that in 1975, 70% of consumers bought medicines from drugstores while 30% bought
medicines from hospitals. In 2004, 25% of consumers bought medicines from drugstores whereas 75%
bought medicines from hospitals; therefore, it is expected that in 2017, only 15% of consumers will buy
medicines from drugstores, instead 85% will buy through the Health Care System (Thai Pharmaceutical
Manufacturers Association. 2009). It can be summarized that the sales volumes of the distribution
channels through drugstores continue to decrease while the channels through the National Health Security
Office system and Social Security Office system tend to receive continuous sales increases. In addition,
today the government hospitals which participate in the government’s universal coverage health scheme
implementing the policy of closing down the out-patient department but opening clinics in communities
called “Warm Clinic” in which consumers can register for the use of service by paying only 30 baht for
the registration fee according to the 30-Baht Health Care scheme (or the right to Social Security,
depending on what right they exercise). Warm Clinic will get the registered names to obtain money from
the government as a capitation payment: consumers pay a small amount of money to receive medical
treatment without having to wait for long queues at crowded hospitals. (Prasit Wongnitjasil 2010). It can
be said that the consumers using the service at Warm Clinic are sensitive to the price and these consumers
constitute the big customer group and the same target group as that of drugstores. The obstacles in
operating a drugstore business continue to exist constantly since the lifestyle of consumers change and
now consumers tend to take more care of their health to prevent diseases rather than to cure diseases. For
instance, consumers today choose to consume food for health and supplementary food and go for massage
therapy. These results in a continuous decrease in the market share of drugstores while the number of
drugstores increases steadily. This means that the drugstore’s supply outnumbers its demand, leading to
fierce competition among drugstores especially in the Bangkok area—the center of the educated, health
lovers, a variety of lifestyles, and numerous drugstores. Hence, the marketing strategy development
direction for drug stores in the Bangkok area is intriguing enough to investigate and find an appropriate
business direction for future use.
Purpose of the Study
1. To study the marketing factors affecting the drug store service usage of consumers in the
Bangkok Metropolitan
2. To study the guide line for marketing strategy improvement of drug store in the Bangkok
Metropolitan
Expected Benefits from This Study
The knowledge about the marketing factors affecting the drugstore service usage and the guide line for
marketing strategy improvement of drug store is beneficial for creating marketing opportunities as well as
for planning marketing strategies that match the situations and the lifestyles of consumer healthcare.
Scope of the Study
Since drug stores are categorized as a retail store typed “Specialty Store” where consumers receive both
service and product purchase. Thus, this research employs the retail mix which includes product, price,
place, promotion, service and people.
Guide Line for Marketing Strategy Improvement... 151
Definition of Vocabulary
Drug store means a store business selling medicines to the general public. Drug stores can sell general
drugs and prescription drugs administered by pharmacists. Most drug stores sell modern drugs but some
drugstores sell traditional medicines or sell both types of medicines.
Review Related of Literature
The University of the Thai Chamber of Commerce (2001) concluded that in the competition environments
of drugstore there were lots of entrepreneurs including both big and small in the pharmacy business, the
market of the chain drugstores from abroad had expanded, and today over the counter drug and
supplementary food can also be sold in convenient stores. It was found that in 2001, 30% of people used
the health treatment service through drugstores; in 2006, the percentage decreased to 23% and it is
expected that in 2017, the proportion will be down to only 15%. This is because consumers tend to use
the health treatment service through government hospitals. The results are that the market shares of
drugstores tends to decrease while the number of drugstores soars, creating a fiercer and fiercer
competition.
Parinya Akarajantachoti (2008) mentioned “the survival of the drugstore” which could be concluded
that the drug stores which could survive in the future must have 2 factors: 1) Be able to comply with the
laws and the Good Pharmacy Practice (GPP) and 2) Possess the core competency which results in the
store’s ability to make a profit. If its competitiveness is high, there are more opportunities to make a high
profit. The profit here does not mean the profit per unit but means total profit; on the contrary, increased
costs will decrease the competitiveness of drugstores.
Prateungsri Likhitsan (2008) stated that the drug store business in Thailand had segmented the
customer groups clearly: the target customers of chain drugstores (from abroad) which mainly sold
imported medicines and supplementary food were highly educated people with high purchasing power.
General drugstores selling cheap medicines manufactured in Thailand had the target customers of lower
middle to lower class. At present, chain drug stores by Thai new generation such as Farm D, Safe Drug,
Siam Drug, and etc increase. These stores emphasize mainly on selling drugs which is different from
chain drug stores owned by foreigners like Boots or Watson that mainly provide beauty products. As a
consequence, drug stores need to adapt in accordance with the lifestyle of new generation consumers to
survive in the future. The adaptation could be the store decoration and the service provided by educated
pharmacists.
Research Method
1. Data and Data Collection Method
Collected primary data regarding the marketing factors which affects drugstore service usage and the
guide line for marketing strategy improvement of drug store. Also, secondary data was collected from
academic papers including related electronic data.
2. Tool for Collecting Data
Questionnaire Schedule was used for collecting data on the marketing factors affecting the drugstore
service usage and Structured Deep Interview Schedule was used for gathering information on the guide
line for marketing strategy improvement of drug store.
152 Sirijanya Kuawiriyapan
3. Population and Sample Size
The population used for studying the data about the marketing factors affecting the drug store service
usage consisted of the consumers buying drugs at drug stores in the Bangkok area. The definite number of
the population was not known; therefore, it was calculated to find the sample size from the formula n =
Z2
/4E2
, then set the confidence level (Z) at 95% = 1.96 and allowable error (E) = 5%, resulting in the
sample size of 384 people. The population used for studying the information on the marketing strategy
development direction included people with experience, expertise, visions, and who have direct
relationship with the drug store business.
4. Random Sampling Method : Consists of 2 Parts as Follows:
Part 1 The steps of Multi Stage Random Sampling used for drug store service users are as follows:
Step I: Select 10% of the total 50 districts in Bangkok through the method of Purposive Sampling. The
number of the selected districts = 5 districts.
Step II: Select Select the number of the districts in each zone of Bangkok by the method of Proportional
Stratified Random Sampling. The selected districts include: 1) Inner Bangkok consists of (14/50) x 5 = 1
district 2) Central Bangkok consists of (26/50) x 5 = 3 districts and 3) Outer Bangkok consists of
(10/50) x 5 = 1 district.
Step III: Select the name of districts by the method of Simple Random Sampling without Replacement.
The results show that 1) Inner Bangkok includes the Thonburi district 2) Central Bangkok includes the
Suanluang district and the Klongtoey district and 3) Outer Bangkok includes the Ladkrabang district.
Step IV: Accidental Sampling is used to collect data in each district. 77 people from each district are
selected for data collection, totaling 385 people.
Part 2 Purposive Sampling is employed to investigate people with experience, expertise, visions, and
who have a direct relationship with the drugstore business. Here, the interview is conducted with
executives from the Thailand Pharmacy Quality Development Association which consists of the Drug
Store Club of Thailand and the Thai Pharmacies Association.
5. Data Analysis
The data about the marketing factors affecting the drug store service usage is analyzed using the Likert
Scale which is classified into 5 levels. The mean scores derived from each importance level are as
follows: mean scores 5.00 - 4.21 = highest level, 4.20 - 3.41= high level, 3.40 - 2.61= moderate level,
2.60 - 1.81= low level, and 1.80 - 1.00 = lowest level. In addition, the Descriptive Analysis is used for
analyzing the guide line for marketing strategy improvement of drug store.
Result of the Study
1. General Information of Sample Groups
From the sample group of 385 people, the findings demonstrated that most of the sample group were
females (54.3%), aged 21-30 years old, the highest proportion was 32.2%, single 61.0%. and married
39.0%. Regarding the Married percentage, the ones with 1-2 kids accounted for 27.0% this corresponded
with the Thai demographic facts which stated that the birth rate of the Thai population decreased,
resulting in smaller family sizes. Apart from that, the findings revealed that most of the sample group held
a bachelor’s degree which accounted for 47.5%, mostly private company employees 26.8%, business
Guide Line for Marketing Strategy Improvement... 153
owners/entrepreneurs 21.2%, students 19.0%, with a monthly income of 10,001 – 20,000 Baht (36.6%),
with a monthly income of less than or equal to 10,000 Baht (27.5%), going to drugstores near their house
due to convenience of traveling(62.6%), going to drugstores in department stores such as Boots and
Watson because they were the shopping centers used by urban people (12.4%). Also, most of the sample
group choose to go to drug stores that have pharmacists on duty (31.8%) since they felt more assured by
buying medicines and getting advice on illnesses or for choosing to buy drugs from the experts (Table 1).
Table 1. General Information of the Sample Group (N = 385).
Item Number (people) Percentage
Sex
Female 209 54.3
Male 176 45.7
Age
14 – 20 years 38 9.9
21 – 30 years 124 32.2
31 – 40 years 97 25.2
41 – 50 years 70 18.2
over 50 years 56 14.5
Status
Single 235 61.0
Married 150 39.0
Education Level
Below secondary school level 84 21.8
Diploma/Higher Vocational 56 14.5
Bachelor Degree 183 47.5
Above bachelor degree 67 16.1
Career
Private Company Employee 103 26.8
Business Owner/ Entrepreneurs 82 21.2
Student 73 19.0
General Service Worker 62 16.1
government officer 39 10.0
State enterprise worker 26 6.8
Income per month
Less than or equal to 10,000 Baht 106 27.5
10,001 – 20,000 Baht 141 36.6
20,001 – 30,000 Baht 51 13.2
30,001 –40,000 Baht 30 7.8
40,001 – 50,000 Baht 25 6.5
More than 50,000 Baht 32 8.3
Location of Drugstore
Near house 241 62.6
In department stores such as Boots, Watson 48 12.4
Near workplace 37 9.6
In pharmacy organization 31 8.1
In Modern Trade such as Tesco Lotus 23 5.9
Near school 4 1.0
Near hospital 2 0.5
154 Sirijanya Kuawiriyapan
2. The Marketing Factors Affecting the Drug Store Service Usage in the Bangkok Area
2.1 Product Factor
Overall, the product factor affected the drug store service usage in the much level (Mean= 3.90).
Considering each item separately, it was found that the item which affected the drug store service usage in
the highest level was medicine products which are sold legally, not an illicit drug because illicit drugs are
dangerous and capable of producing side effects to the body, and are consequently banned by the Ministry
of Public Health. The five items which affected the drugstore service usage in the much level arranged in
order as follows: 1) Drugs are in good condition/not expired 2) Drugs are not old or dirty 3) Drugs are of
good quality 4) The drugs indicate the name of manufacturer and the expiry date clearly and 5) Drugs are
always in stocks, ready for customers to buy (Table 2).
Table 2. The product factors affecting the drug store service usage.
Product Factor Mean Impact level
Legal drugs, not illicit drugs 4.21 Most
Not in stock for too long that drugs are in bad condition/ expired 4.10 Much
Drugs are in good condition—not look stale or dirty 4.09 Much
Drugs are of good quality 4.09 Much
Drugs indicate the name of manufacturer and the expiry date clearly 4.08 Much
Drugs are not out of stock when customers go to buy 3.98 Much
Have all drugs that customers want 3.97 Much
Medicine plastic bag states clear instructions on dosage 3.90 Much
Drugs have good reputation and image 3.89 Much
Through many years of operation, drug stores have creditability and
reliability
3.78 Much
Drugs are advertised through media 3.66 Much
Have products in other categories apart from medicine products such as
supplementary food and vitamin
3.62 Much
Drug store is famous for franchise system 3.38 Moderate
Total Mean 3.90 Much
2.2 Price Factor
Overall, the price factor affected the drugstore service usage in the much level (mean = 3.79).
Considering each item separately, it was found that the item which affected the drugstore service usage in
the much level was the appropriate price of the drugs which corresponded with the drug quality and the
price should be lower than that of other drugstores when comparing the drugs’ quality and brands of the
same type. The item which affected the drugstore service usage in the moderate level was the drug sales
in retail and wholesale prices (Table 3).
Table 3. The price factors affecting the drug store service usage.
Price Factor Mean Impact level
The prices of drugs match with the drug quality 4.08 Much
Sell the drugs cheaper than other stores when comparing with the quality
and brand of the same type
3.89 Much
Sales in retail and wholesale prices 3.39 Moderate
Total Mean 3.79 Much
Guide Line for Marketing Strategy Improvement... 155
2.3 Distribution Channel Factor
Overall, the distribution channel factor affected the drug store service usage in the much level (mean =
3.75). Considering each item separately, it was found that the five items which affected the drug store
service usage in the much level were as follows: 1) The store is well-lit, not too dark 2) The front and the
inside of store are clean 3) The store is near communities with markets and bus stops 4) The store
displays products in category for clear visibility and 5) The store offers convenience for traveling
(Table 4).
Table 4. The distribution channel factors affecting the drug store service usage.
Distribution Channel Factor Mean Impact level
The store is well-lit, not too dark 4.11 Much
The front and the inside of store are clean 4.10 Much
The store is near communities such as markets and bus stops 4.06 Much
The store displays products in category for clear visibility 3.99 Much
The store offers convenience for traveling 3.96 Much
The store is not too narrow or crowded 3.95 Much
Regular business hour 3.95 Much
Clear store sign 3.94 Much
Have air-conditioner 3.62 Much
Beautiful and attractive store decoration 3.60 Much
Safe and sufficient parking space 3.59 Much
Attractive store layout invites customer to enter store 3.49 Much
Arrange the storefront available space for product display 3.35 Moderate
Have seats for customers waiting for drugs 2.82 Moderate
Total Mean 3.75 Much
2.4. Marketing Promotion Factor
Overall, the marketing promotion factor affected the drug store service usage in the moderate level (mean
= 3.08). Considering each item separately, it was found that all items affected the drugstore service usage
in the moderate level also which consisted of 1) Giving discounts when buying a large amount of drugs 2)
Discounts can be offered upon bargain 3) There are public relations at sales spots 4) Hold special
promotions to persuade customers 5) Give away free trial samples in the case of non-oral drugs and 6)
Offer member cards for special privileges or health information. Since consumers buy drugs only when
necessary, instead of buying drugs in large amounts; and the products need carefulness when buying and
consumers expect results of recovery from illness, the marketing promotion factors were not given much
attention in the drug store business (Table 5).
Table 5. The marketing promotion factors affecting the drug store service usage.
Marketing Promotion Factor Mean Impact level
Give discounts when buying a large amount of drugs 3.40 Moderate
Discounts can be offered upon bargain 3.26 Moderate
Medicine advertisement at sales spot such as hanging flag and medicine
sticker label
3.23 Moderate
Special promotion such as buy drugs and get free cloth bag 2.93 Moderate
Give away free trial samples in case of non-oral drugs such as mosquito
repellent lotion, pain-relief-oil, and sticking plaster
2.93 Moderate
Offer member card for special privilege or health information 2.73 Moderate
Total Mean 3.08 Moderate
156 Sirijanya Kuawiriyapan
2.5 Service Factor
Overall, the service factor affected the drug store service usage in the much level (mean=3.94).
Considering each item separately, it was found that the items affecting the drugstore service usage in the
highest level consisted of 1) fast service and no long waits and 2) Drug stores are always able to procure
the requested drugs (Table 6).
Table 6. The service factors affecting the drug store service usage.
Service Factor Mean Impact level
Fast service 4.36 Most
Drug stores are always able to procure the requested drugs 4.28 Most
Refundable for defective drugs 3.82 Much
Open on holidays such as Sunday and Public Holiday 3.82 Much
Provide free usage of weight checker 3.42 Much
Total Mean 3.94 Much
2.6 Personnel Factor
Overall, the personnel factor affected the drug store service usage in the highest level (mean=4.21).
Considering each item separately, it was found that the items affecting the drugstore service usage in the
highest level consisted of 1) The salesperson speaks softly, honors customers, and creates relax
atmosphere 2) The salesperson is polite, courteous, and smiling 3) The salesperson has good knowledge
about medicines and 4) The salesperson dresses neat and tidy (Table 7).
Table 7. The personnel factors affecting the drug store service usage.
Personnel Factor Mean Impact level
Salesperson speaks softly and politely, creating relax atmosphere 4.39 Most
Salesperson is polite, courteous, and smiling 4.36 Most
Salesperson has good knowledge about medicines 4.35 Most
Salesperson dresses neat and tidy 4.30 Most
Salesperson informs directions for use understandably and in details 4.18 Much
Have knowledgeable pharmacists stationed at drugstores every day 4.15 Much
Salesperson inquires about illness symptom in details before dispensing
drugs
4.02 Much
Salesperson suggests buyers to consult physician when he deems that the
case needs detailed diagnosis
3.92 Much
Total Mean 4.21 Most
3. The Guide Line for Marketing Strategy Improvement of Drug Store in the Bangkok
Metropolitan
3.1 Product Strategy
The strategy is to create competitive advantage. For example, the drug store is to develop products both
in-depth and in a broad aspect, emphasizing the improvement of knowledge and the service of core
business and the extension to products and related services linkable to the core business such as
supplementary food, cosmeceuticals, and Thai herbs to demonstrate that drugstores not only serve as a
place for selling medicines for treatment, but also act as a shop selling health & beauty products. Hence,
drugstores need to set a strategy for managing inventory and reducing the loss due to product’s expiration
and bad condition. Furthermore, having less stock means a higher profit, made possible by arranging the
Guide Line for Marketing Strategy Improvement... 157
stocks in an orderly and categorical manner with clear labels, by purchasing each type of product in the
smallest amount of each purchase order but increasing the frequency of the purchase order, by making a
list of best sellers and the records of best selling products as the data for estimating the goods ordering,
preventing an out-of-stock incident.
3.2 Price Strategy
This strategy depends on the standpoint of the store. The meaning is that if the drug store wants to sell
cheap drugs for sales volume, setting the sales target each month and the gross profit will enable it to
speculate the monthly profits from the sales volume. The advantage of this tactic is there is no need to
find personnel who know a lot about products. The disadvantage is the drugstores have to buy only cheap
drugs which can be of poor quality. However, if entrepreneurs want to sell advice/consultation, they have
to set the drug price higher. This way, consumers will get good advice, recover from illness, or be capable
of applying drugs correctly. Also, good relationships will occur between drugstores and customers since
customers can talk and ask for advice; the salesperson will look reliable and trustworthy; customers will
come regularly to get their problems solved and they won’t bargain the price. The benefit of this method
is the drug store can sell drugs without having to hire many personnel because the sales volume is less
than the tactic of selling cheap drugs as mentioned above. Nevertheless, the drawback is this method
needs a lot of patience which could consume 3-6 months for the products to become well-known and
reliable.
3.3 Distribution Channel Strategy
The location of the drugstore should be selected meticulously because it is very important. For instance,
the drugstore should explore traffic conditions around the location, check the capacity of the parking
space, examine the density of the population, the hospital, the market, as well as the convenience for
customer’s travels, and the renewal terms and conditions for the renting case. Choosing the location
depends on the target customers of the drugstore, illustrated as follows: 1) Village location: capable of
selling all kinds of drugs such as supplementary food, Thai herbs, and children's medicines. Customer
relationship management is mainly needed for this sort of location which produces regular customers. 2)
University area: This location is profitable for selling supplementary food. Best selling medicine sets
include the drugs for curing diarrhea, constipation, and respiratory diseases. During the term break, the
sales volume plunges a lot in this type of location. The best locations are areas around the university
student’s dormitories. 3) Market or community location: almost all kinds of drugs are sellable here. Since
there are many drugstores, one must have the competitive edge over the competitors such as modern store
style, sufficient lighting, the store size being as large as or larger than that of its competitor, cheap price,
and having pharmacists on-duty. 4) Bus stop: This is another good location for selling drugs as people
wait for buses for a long time, so they go to look for products at drugstores. The drugs sold in high
amounts include motion sickness medicine, antidiarrheal drug, drugs for digestive system disease, and
electrolyte powders. 5) Department store: This sort of location demands high investment on the location.
The product categories should be for middle class people such as supplementary food and cosmetics
advertised on TV. The drugs should be of a moderate price. Apart from that, the store should be well-lit,
attractive, and comfortable for customers because the drugstore front can attract or repel customers easily.
Therefore, the decoration of the storefront should be in line with that of the inside of the store, the nearby
building, and the type of customers.
3.4 Marketing Promotion Strategy
Drugstores are not a business which sells drugs only, it has its own charisma and an image of a business
which assists communities closely. Thus, a pharmacy needs to provide goods advice on medicines as well
as act as a place providing knowledge rather than propaganda.
158 Sirijanya Kuawiriyapan
3.5 Service Strategy
Generally, people expect to receive the following from a drugstore: 1) Convenience: people think that
going to hospital is not convenient and very time consuming. 2) Explicitness, Clearness, Appropriateness,
and Completeness: people are too shy to ask doctors in clinics. 3) Modern: current consumers tend to
prefer modern. 4) Customer intimacy: if the pharmacists/ drugstore owners dispense drugs themselves,
there will be confidence, friendliness, and high flexibility. Therefore, a pharmacy needs to have
pharmacists on duty according to the laws. As a good drugstore owner, he has to learn about the job as
much as possible at least he should be able to act as a pharmacist’s assistant so that he can help
pharmacists deftly when there are lots of customers coming in to prevent customers from waiting too
long.
3.6 Personnel Strategy
Pharmacists and staff in a drug store are all people who contribute to the image and the reputation of the
drugstore. Accordingly, they need to love service job, possess good knowledge about the products and
drugs, have ideals and morals, be honest, perform work happily, and provide good understanding to
buyers. In addition, the personnel should be briefed in the meetings, trained, and developed periodically
to assess the performance and spread the drug store culture in the same pattern because every member of
staff is the face of the store.
Suggestions
1. Due to the decreased growth rate of drug store business and the fiercer competition environment,
entrepreneurs should emphasize more on protective and health care products such as vitamins and
supplementary food. Also, Thai traditional medicine products should be increased, which
currently are on the rising trend due to its no side effects such as using anti- pyretic Drug (Chan-
ta-lee-la) or Prasachandaeng for reducing fever instead of using Paracetamol or using
andrographis paniculata instead of anti-inflammatory drugs, etc. Consequently, entrepreneurs
should seek more knowledge about Thai traditional medicine in order to take care of customers
effectively and reliably. Studying Thai traditional pharmacy takes only 1 year, regardless of the
education or the age of the learners. After 1 year, the learner can sit an exam for the license as a
legal Thai traditional pharmacist practitioner. After passing the exam, the student will become a
legal practitioner in Thai traditional medicine drug stores.
2. Entrepreneurs should change the concept of drugstores from being a place selling drugs to “health
center” which means drugstores can not only sell drugs but also sell health products like
protective health products or treatment health products.
3. Entrepreneurs should give importance to the style of store decoration, depending on the target
group and the location. The products for sale should be exposed to the light for too long or the
kinds of products should be regularly rotated. The color for decorating the store should be white
or light shades such as light blue or light green to provide a clean look.
4. The drugstore business is a market which can use only limited strategies and any propaganda is
prohibited. Also, the business gains smaller profits than other businesses; therefore, drugstores
should provide supplementary services such as advice on health and facility for health which
correspond with the current lifestyle of consumers.
5. The drugstore’s pharmacist is the person who plays the most important role and the person who is
closest to the patients. Hence, pharmacists should change their role into an interdisciplinary
treatment provider which coordinates with other professionals. For example, the duty is to help
take care of patient’s medication adherence, the suitability of drug dose, drug allergy, adverse
drug reactions, and drug interaction.
Guide Line for Marketing Strategy Improvement... 159
6. At present, users expect the quality of the health service. Thus, the Pharmacy Association should
give importance to the workforce rate of pharmacists to be in line with the increased number of
drugstores.
Conclusion
Drug stores are a kind of retailer that attracts customers due to cheap prices, vicinity, and no long waits.
Drug stores are a specialty store which provides services along with products as it can be noticed from the
customers at drug stores need sellers more than customers at convenient stores; therefore, there is a need
to have a pharmacist stationed at a drug store branch. However, with the limited number of pharmacists at
present, the extension of branches can face difficulty. Besides, the consumer behavior regarding the use of
drug store service has changed: consumers need products of more variety especially supplementary food
and cosmeceuticals and they want ‘One Stop Shopping’ for health and beauty products. Today,
consumers have more knowledge about medicines, which can be noticed from the data regarding the
factors affecting the use of drugstore services. For instance, consumers consider more about the drugs
maintenance and expiry date, modern style of store decoration, air-conditioning, sufficient lighting for
clear look at products, and cleanness. The drug buying behaviors of consumers vary: 1) A-B consumer
group buys products from chain stores 2) consumers who have to consume drugs all their life will buy
medicines from hospitals; however, the majority of consumers mainly buy drugs at traditional drug stores
3) consumers of over 60 years will get free treatment at government hospitals (as stipulated in the gold
card); if they were private company employees, they can use social security rights 4) The general public
will use the 30-Baht card.
Reference
1. Kanlaya Wanitchbancha. 2003. Statistic Analysis: Statistic for decision making. Bangkok. Chulalongkorn
University Printing.
2. Maneesong Pathomviriya. 2009. Marketing of Herbal Cosmetic : Consumer’ s Attitude. Bangkok. Thesis of
Faculty of Technical Education. King Mongkut’ s University of Technology North Bangkok.
3. Parinya Akarajantachoti. 2008. The secret to opening a drugstore business confidently. On line : http://raya-
manager.blogsport.com
4. Prasit Wongnitjasil 2010. The threat and business opportunity of drugstore. On line : http://www.drugserv.co.th
5. Prateungsri Likhitsan. 2008. Transform new drugstore. On line : www.manager.co.th
6. Thailand Drugstore Club. 2009 “Want to open a drugstore without failure episode I & 2 and the survival of
drugstore.). On line : http://www.manager.co.th
7. Thai Pharmaceutical Manufacturers Association. 2009. Statistics of the application for license for medicine-
related business operation during 1996–2006. Online : www.tpma.or.th
8. The University of the Thai Chamber of Commerce. 2001. Competition of Drug Store. Online : www.uttc.ac.th

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Marketing Strategy Guide for Bangkok Drug Stores

  • 1. International Journal of Business and Management Studies, CD-ROM. ISSN: 2158-1479 :: 1(2):149–159 (2012) GUIDE LINE FOR MARKETING STRATEGY IMPROVEMENT OF DRUG STORE IN BANGKOK METROPOLITAN Sirijanya Kuawiriyapan King Mongkut’s Institute of Technology, Thailand The objective of the study is to investigate the marketing factors which affect the drug store service usage and to do research on the guide line for marketing strategy improvement of drug stores. Data was collected through a questionnaire that asked 385 service users and from interviews with those who were directly involved with the drug store business. The results of the study revealed that most of the sample group were females, aged 21-30 years old, single, holding a bachelor’s degree, private company employees with an average monthly income of 10,001-15,000 Baht. Mostly, the sample group went to drug stores near their house where pharmacists were on stand-by duty. The product factor receiving the highest level was that the drugs for sale should be legal drugs. The price factor receiving the much level was that the price of the medicines matched the quality. A factor that resulted in considerable attention was that the store was well-lit, not too dark. The marketing promotion factor receiving the moderate level was that there were discounts for large purchases. The service factor receiving the highest level was that the store provided a fast service. The personnel factor receiving the highest level were that the salesmen were polite, courteous, always smiled, and were knowledgeable about medicines. The marketing strategy development direction for drug stores include having well-trained pharmacists, creating a competitive advantage, improving management systems, setting a clear market position and target group, differentiating in products and services. The suggestion for the research was that drug stores should increase the healthcare protective product category by transforming into health center providing health consultation regardless of no sign of illness. In addition, the store decoration was important depending on the target market and location. Also, pharmacists should change their role into being a interdisciplinary treatment provider. Importance and Barriers to Study A “Drug store” is a place for people in society to resort to as well as an important medicines distribution channel for the retail sector. Therefore, drugstores play an important role as a business which seeks profit and provides correct drug usage instructions to consumers. In order to protect consumers, governments need to be strict in governing the business sectors related to medicine manufacturers, sellers, and importers by enforcing the Good Pharmacy Practice (GPP) since 2008. The Good Pharmacy Practice (GPP) stipulates that new drugstores have to contain real pharmacists working fulltime and new drugstore needs to pass the Good Pharmacy Practice (GPP) criteria as well. For the drugstores already in operation, they need to develop according to the Good Pharmacy Practice (GPP) within 8 years and need to contain real pharmacists; if not, their pharmacy license will not be renewed; which means closing down the business (Thai Drugstore Club 2009). Currently, “Drugstores” are not the first choice for consumers to seek treatment. Consumers have an alternative to get treatment at government hospitals according to the 149
  • 2. 150 Sirijanya Kuawiriyapan rights of the "30-Baht Health Care" scheme: private company employees can exercise the right to Social Security or anyone aged over 60 years old can get free treatment at government hospitals according to the rights stipulated in the 30-Baht medical card. According to the consumer’s medicine buying behavior, it was found that in 1975, 70% of consumers bought medicines from drugstores while 30% bought medicines from hospitals. In 2004, 25% of consumers bought medicines from drugstores whereas 75% bought medicines from hospitals; therefore, it is expected that in 2017, only 15% of consumers will buy medicines from drugstores, instead 85% will buy through the Health Care System (Thai Pharmaceutical Manufacturers Association. 2009). It can be summarized that the sales volumes of the distribution channels through drugstores continue to decrease while the channels through the National Health Security Office system and Social Security Office system tend to receive continuous sales increases. In addition, today the government hospitals which participate in the government’s universal coverage health scheme implementing the policy of closing down the out-patient department but opening clinics in communities called “Warm Clinic” in which consumers can register for the use of service by paying only 30 baht for the registration fee according to the 30-Baht Health Care scheme (or the right to Social Security, depending on what right they exercise). Warm Clinic will get the registered names to obtain money from the government as a capitation payment: consumers pay a small amount of money to receive medical treatment without having to wait for long queues at crowded hospitals. (Prasit Wongnitjasil 2010). It can be said that the consumers using the service at Warm Clinic are sensitive to the price and these consumers constitute the big customer group and the same target group as that of drugstores. The obstacles in operating a drugstore business continue to exist constantly since the lifestyle of consumers change and now consumers tend to take more care of their health to prevent diseases rather than to cure diseases. For instance, consumers today choose to consume food for health and supplementary food and go for massage therapy. These results in a continuous decrease in the market share of drugstores while the number of drugstores increases steadily. This means that the drugstore’s supply outnumbers its demand, leading to fierce competition among drugstores especially in the Bangkok area—the center of the educated, health lovers, a variety of lifestyles, and numerous drugstores. Hence, the marketing strategy development direction for drug stores in the Bangkok area is intriguing enough to investigate and find an appropriate business direction for future use. Purpose of the Study 1. To study the marketing factors affecting the drug store service usage of consumers in the Bangkok Metropolitan 2. To study the guide line for marketing strategy improvement of drug store in the Bangkok Metropolitan Expected Benefits from This Study The knowledge about the marketing factors affecting the drugstore service usage and the guide line for marketing strategy improvement of drug store is beneficial for creating marketing opportunities as well as for planning marketing strategies that match the situations and the lifestyles of consumer healthcare. Scope of the Study Since drug stores are categorized as a retail store typed “Specialty Store” where consumers receive both service and product purchase. Thus, this research employs the retail mix which includes product, price, place, promotion, service and people.
  • 3. Guide Line for Marketing Strategy Improvement... 151 Definition of Vocabulary Drug store means a store business selling medicines to the general public. Drug stores can sell general drugs and prescription drugs administered by pharmacists. Most drug stores sell modern drugs but some drugstores sell traditional medicines or sell both types of medicines. Review Related of Literature The University of the Thai Chamber of Commerce (2001) concluded that in the competition environments of drugstore there were lots of entrepreneurs including both big and small in the pharmacy business, the market of the chain drugstores from abroad had expanded, and today over the counter drug and supplementary food can also be sold in convenient stores. It was found that in 2001, 30% of people used the health treatment service through drugstores; in 2006, the percentage decreased to 23% and it is expected that in 2017, the proportion will be down to only 15%. This is because consumers tend to use the health treatment service through government hospitals. The results are that the market shares of drugstores tends to decrease while the number of drugstores soars, creating a fiercer and fiercer competition. Parinya Akarajantachoti (2008) mentioned “the survival of the drugstore” which could be concluded that the drug stores which could survive in the future must have 2 factors: 1) Be able to comply with the laws and the Good Pharmacy Practice (GPP) and 2) Possess the core competency which results in the store’s ability to make a profit. If its competitiveness is high, there are more opportunities to make a high profit. The profit here does not mean the profit per unit but means total profit; on the contrary, increased costs will decrease the competitiveness of drugstores. Prateungsri Likhitsan (2008) stated that the drug store business in Thailand had segmented the customer groups clearly: the target customers of chain drugstores (from abroad) which mainly sold imported medicines and supplementary food were highly educated people with high purchasing power. General drugstores selling cheap medicines manufactured in Thailand had the target customers of lower middle to lower class. At present, chain drug stores by Thai new generation such as Farm D, Safe Drug, Siam Drug, and etc increase. These stores emphasize mainly on selling drugs which is different from chain drug stores owned by foreigners like Boots or Watson that mainly provide beauty products. As a consequence, drug stores need to adapt in accordance with the lifestyle of new generation consumers to survive in the future. The adaptation could be the store decoration and the service provided by educated pharmacists. Research Method 1. Data and Data Collection Method Collected primary data regarding the marketing factors which affects drugstore service usage and the guide line for marketing strategy improvement of drug store. Also, secondary data was collected from academic papers including related electronic data. 2. Tool for Collecting Data Questionnaire Schedule was used for collecting data on the marketing factors affecting the drugstore service usage and Structured Deep Interview Schedule was used for gathering information on the guide line for marketing strategy improvement of drug store.
  • 4. 152 Sirijanya Kuawiriyapan 3. Population and Sample Size The population used for studying the data about the marketing factors affecting the drug store service usage consisted of the consumers buying drugs at drug stores in the Bangkok area. The definite number of the population was not known; therefore, it was calculated to find the sample size from the formula n = Z2 /4E2 , then set the confidence level (Z) at 95% = 1.96 and allowable error (E) = 5%, resulting in the sample size of 384 people. The population used for studying the information on the marketing strategy development direction included people with experience, expertise, visions, and who have direct relationship with the drug store business. 4. Random Sampling Method : Consists of 2 Parts as Follows: Part 1 The steps of Multi Stage Random Sampling used for drug store service users are as follows: Step I: Select 10% of the total 50 districts in Bangkok through the method of Purposive Sampling. The number of the selected districts = 5 districts. Step II: Select Select the number of the districts in each zone of Bangkok by the method of Proportional Stratified Random Sampling. The selected districts include: 1) Inner Bangkok consists of (14/50) x 5 = 1 district 2) Central Bangkok consists of (26/50) x 5 = 3 districts and 3) Outer Bangkok consists of (10/50) x 5 = 1 district. Step III: Select the name of districts by the method of Simple Random Sampling without Replacement. The results show that 1) Inner Bangkok includes the Thonburi district 2) Central Bangkok includes the Suanluang district and the Klongtoey district and 3) Outer Bangkok includes the Ladkrabang district. Step IV: Accidental Sampling is used to collect data in each district. 77 people from each district are selected for data collection, totaling 385 people. Part 2 Purposive Sampling is employed to investigate people with experience, expertise, visions, and who have a direct relationship with the drugstore business. Here, the interview is conducted with executives from the Thailand Pharmacy Quality Development Association which consists of the Drug Store Club of Thailand and the Thai Pharmacies Association. 5. Data Analysis The data about the marketing factors affecting the drug store service usage is analyzed using the Likert Scale which is classified into 5 levels. The mean scores derived from each importance level are as follows: mean scores 5.00 - 4.21 = highest level, 4.20 - 3.41= high level, 3.40 - 2.61= moderate level, 2.60 - 1.81= low level, and 1.80 - 1.00 = lowest level. In addition, the Descriptive Analysis is used for analyzing the guide line for marketing strategy improvement of drug store. Result of the Study 1. General Information of Sample Groups From the sample group of 385 people, the findings demonstrated that most of the sample group were females (54.3%), aged 21-30 years old, the highest proportion was 32.2%, single 61.0%. and married 39.0%. Regarding the Married percentage, the ones with 1-2 kids accounted for 27.0% this corresponded with the Thai demographic facts which stated that the birth rate of the Thai population decreased, resulting in smaller family sizes. Apart from that, the findings revealed that most of the sample group held a bachelor’s degree which accounted for 47.5%, mostly private company employees 26.8%, business
  • 5. Guide Line for Marketing Strategy Improvement... 153 owners/entrepreneurs 21.2%, students 19.0%, with a monthly income of 10,001 – 20,000 Baht (36.6%), with a monthly income of less than or equal to 10,000 Baht (27.5%), going to drugstores near their house due to convenience of traveling(62.6%), going to drugstores in department stores such as Boots and Watson because they were the shopping centers used by urban people (12.4%). Also, most of the sample group choose to go to drug stores that have pharmacists on duty (31.8%) since they felt more assured by buying medicines and getting advice on illnesses or for choosing to buy drugs from the experts (Table 1). Table 1. General Information of the Sample Group (N = 385). Item Number (people) Percentage Sex Female 209 54.3 Male 176 45.7 Age 14 – 20 years 38 9.9 21 – 30 years 124 32.2 31 – 40 years 97 25.2 41 – 50 years 70 18.2 over 50 years 56 14.5 Status Single 235 61.0 Married 150 39.0 Education Level Below secondary school level 84 21.8 Diploma/Higher Vocational 56 14.5 Bachelor Degree 183 47.5 Above bachelor degree 67 16.1 Career Private Company Employee 103 26.8 Business Owner/ Entrepreneurs 82 21.2 Student 73 19.0 General Service Worker 62 16.1 government officer 39 10.0 State enterprise worker 26 6.8 Income per month Less than or equal to 10,000 Baht 106 27.5 10,001 – 20,000 Baht 141 36.6 20,001 – 30,000 Baht 51 13.2 30,001 –40,000 Baht 30 7.8 40,001 – 50,000 Baht 25 6.5 More than 50,000 Baht 32 8.3 Location of Drugstore Near house 241 62.6 In department stores such as Boots, Watson 48 12.4 Near workplace 37 9.6 In pharmacy organization 31 8.1 In Modern Trade such as Tesco Lotus 23 5.9 Near school 4 1.0 Near hospital 2 0.5
  • 6. 154 Sirijanya Kuawiriyapan 2. The Marketing Factors Affecting the Drug Store Service Usage in the Bangkok Area 2.1 Product Factor Overall, the product factor affected the drug store service usage in the much level (Mean= 3.90). Considering each item separately, it was found that the item which affected the drug store service usage in the highest level was medicine products which are sold legally, not an illicit drug because illicit drugs are dangerous and capable of producing side effects to the body, and are consequently banned by the Ministry of Public Health. The five items which affected the drugstore service usage in the much level arranged in order as follows: 1) Drugs are in good condition/not expired 2) Drugs are not old or dirty 3) Drugs are of good quality 4) The drugs indicate the name of manufacturer and the expiry date clearly and 5) Drugs are always in stocks, ready for customers to buy (Table 2). Table 2. The product factors affecting the drug store service usage. Product Factor Mean Impact level Legal drugs, not illicit drugs 4.21 Most Not in stock for too long that drugs are in bad condition/ expired 4.10 Much Drugs are in good condition—not look stale or dirty 4.09 Much Drugs are of good quality 4.09 Much Drugs indicate the name of manufacturer and the expiry date clearly 4.08 Much Drugs are not out of stock when customers go to buy 3.98 Much Have all drugs that customers want 3.97 Much Medicine plastic bag states clear instructions on dosage 3.90 Much Drugs have good reputation and image 3.89 Much Through many years of operation, drug stores have creditability and reliability 3.78 Much Drugs are advertised through media 3.66 Much Have products in other categories apart from medicine products such as supplementary food and vitamin 3.62 Much Drug store is famous for franchise system 3.38 Moderate Total Mean 3.90 Much 2.2 Price Factor Overall, the price factor affected the drugstore service usage in the much level (mean = 3.79). Considering each item separately, it was found that the item which affected the drugstore service usage in the much level was the appropriate price of the drugs which corresponded with the drug quality and the price should be lower than that of other drugstores when comparing the drugs’ quality and brands of the same type. The item which affected the drugstore service usage in the moderate level was the drug sales in retail and wholesale prices (Table 3). Table 3. The price factors affecting the drug store service usage. Price Factor Mean Impact level The prices of drugs match with the drug quality 4.08 Much Sell the drugs cheaper than other stores when comparing with the quality and brand of the same type 3.89 Much Sales in retail and wholesale prices 3.39 Moderate Total Mean 3.79 Much
  • 7. Guide Line for Marketing Strategy Improvement... 155 2.3 Distribution Channel Factor Overall, the distribution channel factor affected the drug store service usage in the much level (mean = 3.75). Considering each item separately, it was found that the five items which affected the drug store service usage in the much level were as follows: 1) The store is well-lit, not too dark 2) The front and the inside of store are clean 3) The store is near communities with markets and bus stops 4) The store displays products in category for clear visibility and 5) The store offers convenience for traveling (Table 4). Table 4. The distribution channel factors affecting the drug store service usage. Distribution Channel Factor Mean Impact level The store is well-lit, not too dark 4.11 Much The front and the inside of store are clean 4.10 Much The store is near communities such as markets and bus stops 4.06 Much The store displays products in category for clear visibility 3.99 Much The store offers convenience for traveling 3.96 Much The store is not too narrow or crowded 3.95 Much Regular business hour 3.95 Much Clear store sign 3.94 Much Have air-conditioner 3.62 Much Beautiful and attractive store decoration 3.60 Much Safe and sufficient parking space 3.59 Much Attractive store layout invites customer to enter store 3.49 Much Arrange the storefront available space for product display 3.35 Moderate Have seats for customers waiting for drugs 2.82 Moderate Total Mean 3.75 Much 2.4. Marketing Promotion Factor Overall, the marketing promotion factor affected the drug store service usage in the moderate level (mean = 3.08). Considering each item separately, it was found that all items affected the drugstore service usage in the moderate level also which consisted of 1) Giving discounts when buying a large amount of drugs 2) Discounts can be offered upon bargain 3) There are public relations at sales spots 4) Hold special promotions to persuade customers 5) Give away free trial samples in the case of non-oral drugs and 6) Offer member cards for special privileges or health information. Since consumers buy drugs only when necessary, instead of buying drugs in large amounts; and the products need carefulness when buying and consumers expect results of recovery from illness, the marketing promotion factors were not given much attention in the drug store business (Table 5). Table 5. The marketing promotion factors affecting the drug store service usage. Marketing Promotion Factor Mean Impact level Give discounts when buying a large amount of drugs 3.40 Moderate Discounts can be offered upon bargain 3.26 Moderate Medicine advertisement at sales spot such as hanging flag and medicine sticker label 3.23 Moderate Special promotion such as buy drugs and get free cloth bag 2.93 Moderate Give away free trial samples in case of non-oral drugs such as mosquito repellent lotion, pain-relief-oil, and sticking plaster 2.93 Moderate Offer member card for special privilege or health information 2.73 Moderate Total Mean 3.08 Moderate
  • 8. 156 Sirijanya Kuawiriyapan 2.5 Service Factor Overall, the service factor affected the drug store service usage in the much level (mean=3.94). Considering each item separately, it was found that the items affecting the drugstore service usage in the highest level consisted of 1) fast service and no long waits and 2) Drug stores are always able to procure the requested drugs (Table 6). Table 6. The service factors affecting the drug store service usage. Service Factor Mean Impact level Fast service 4.36 Most Drug stores are always able to procure the requested drugs 4.28 Most Refundable for defective drugs 3.82 Much Open on holidays such as Sunday and Public Holiday 3.82 Much Provide free usage of weight checker 3.42 Much Total Mean 3.94 Much 2.6 Personnel Factor Overall, the personnel factor affected the drug store service usage in the highest level (mean=4.21). Considering each item separately, it was found that the items affecting the drugstore service usage in the highest level consisted of 1) The salesperson speaks softly, honors customers, and creates relax atmosphere 2) The salesperson is polite, courteous, and smiling 3) The salesperson has good knowledge about medicines and 4) The salesperson dresses neat and tidy (Table 7). Table 7. The personnel factors affecting the drug store service usage. Personnel Factor Mean Impact level Salesperson speaks softly and politely, creating relax atmosphere 4.39 Most Salesperson is polite, courteous, and smiling 4.36 Most Salesperson has good knowledge about medicines 4.35 Most Salesperson dresses neat and tidy 4.30 Most Salesperson informs directions for use understandably and in details 4.18 Much Have knowledgeable pharmacists stationed at drugstores every day 4.15 Much Salesperson inquires about illness symptom in details before dispensing drugs 4.02 Much Salesperson suggests buyers to consult physician when he deems that the case needs detailed diagnosis 3.92 Much Total Mean 4.21 Most 3. The Guide Line for Marketing Strategy Improvement of Drug Store in the Bangkok Metropolitan 3.1 Product Strategy The strategy is to create competitive advantage. For example, the drug store is to develop products both in-depth and in a broad aspect, emphasizing the improvement of knowledge and the service of core business and the extension to products and related services linkable to the core business such as supplementary food, cosmeceuticals, and Thai herbs to demonstrate that drugstores not only serve as a place for selling medicines for treatment, but also act as a shop selling health & beauty products. Hence, drugstores need to set a strategy for managing inventory and reducing the loss due to product’s expiration and bad condition. Furthermore, having less stock means a higher profit, made possible by arranging the
  • 9. Guide Line for Marketing Strategy Improvement... 157 stocks in an orderly and categorical manner with clear labels, by purchasing each type of product in the smallest amount of each purchase order but increasing the frequency of the purchase order, by making a list of best sellers and the records of best selling products as the data for estimating the goods ordering, preventing an out-of-stock incident. 3.2 Price Strategy This strategy depends on the standpoint of the store. The meaning is that if the drug store wants to sell cheap drugs for sales volume, setting the sales target each month and the gross profit will enable it to speculate the monthly profits from the sales volume. The advantage of this tactic is there is no need to find personnel who know a lot about products. The disadvantage is the drugstores have to buy only cheap drugs which can be of poor quality. However, if entrepreneurs want to sell advice/consultation, they have to set the drug price higher. This way, consumers will get good advice, recover from illness, or be capable of applying drugs correctly. Also, good relationships will occur between drugstores and customers since customers can talk and ask for advice; the salesperson will look reliable and trustworthy; customers will come regularly to get their problems solved and they won’t bargain the price. The benefit of this method is the drug store can sell drugs without having to hire many personnel because the sales volume is less than the tactic of selling cheap drugs as mentioned above. Nevertheless, the drawback is this method needs a lot of patience which could consume 3-6 months for the products to become well-known and reliable. 3.3 Distribution Channel Strategy The location of the drugstore should be selected meticulously because it is very important. For instance, the drugstore should explore traffic conditions around the location, check the capacity of the parking space, examine the density of the population, the hospital, the market, as well as the convenience for customer’s travels, and the renewal terms and conditions for the renting case. Choosing the location depends on the target customers of the drugstore, illustrated as follows: 1) Village location: capable of selling all kinds of drugs such as supplementary food, Thai herbs, and children's medicines. Customer relationship management is mainly needed for this sort of location which produces regular customers. 2) University area: This location is profitable for selling supplementary food. Best selling medicine sets include the drugs for curing diarrhea, constipation, and respiratory diseases. During the term break, the sales volume plunges a lot in this type of location. The best locations are areas around the university student’s dormitories. 3) Market or community location: almost all kinds of drugs are sellable here. Since there are many drugstores, one must have the competitive edge over the competitors such as modern store style, sufficient lighting, the store size being as large as or larger than that of its competitor, cheap price, and having pharmacists on-duty. 4) Bus stop: This is another good location for selling drugs as people wait for buses for a long time, so they go to look for products at drugstores. The drugs sold in high amounts include motion sickness medicine, antidiarrheal drug, drugs for digestive system disease, and electrolyte powders. 5) Department store: This sort of location demands high investment on the location. The product categories should be for middle class people such as supplementary food and cosmetics advertised on TV. The drugs should be of a moderate price. Apart from that, the store should be well-lit, attractive, and comfortable for customers because the drugstore front can attract or repel customers easily. Therefore, the decoration of the storefront should be in line with that of the inside of the store, the nearby building, and the type of customers. 3.4 Marketing Promotion Strategy Drugstores are not a business which sells drugs only, it has its own charisma and an image of a business which assists communities closely. Thus, a pharmacy needs to provide goods advice on medicines as well as act as a place providing knowledge rather than propaganda.
  • 10. 158 Sirijanya Kuawiriyapan 3.5 Service Strategy Generally, people expect to receive the following from a drugstore: 1) Convenience: people think that going to hospital is not convenient and very time consuming. 2) Explicitness, Clearness, Appropriateness, and Completeness: people are too shy to ask doctors in clinics. 3) Modern: current consumers tend to prefer modern. 4) Customer intimacy: if the pharmacists/ drugstore owners dispense drugs themselves, there will be confidence, friendliness, and high flexibility. Therefore, a pharmacy needs to have pharmacists on duty according to the laws. As a good drugstore owner, he has to learn about the job as much as possible at least he should be able to act as a pharmacist’s assistant so that he can help pharmacists deftly when there are lots of customers coming in to prevent customers from waiting too long. 3.6 Personnel Strategy Pharmacists and staff in a drug store are all people who contribute to the image and the reputation of the drugstore. Accordingly, they need to love service job, possess good knowledge about the products and drugs, have ideals and morals, be honest, perform work happily, and provide good understanding to buyers. In addition, the personnel should be briefed in the meetings, trained, and developed periodically to assess the performance and spread the drug store culture in the same pattern because every member of staff is the face of the store. Suggestions 1. Due to the decreased growth rate of drug store business and the fiercer competition environment, entrepreneurs should emphasize more on protective and health care products such as vitamins and supplementary food. Also, Thai traditional medicine products should be increased, which currently are on the rising trend due to its no side effects such as using anti- pyretic Drug (Chan- ta-lee-la) or Prasachandaeng for reducing fever instead of using Paracetamol or using andrographis paniculata instead of anti-inflammatory drugs, etc. Consequently, entrepreneurs should seek more knowledge about Thai traditional medicine in order to take care of customers effectively and reliably. Studying Thai traditional pharmacy takes only 1 year, regardless of the education or the age of the learners. After 1 year, the learner can sit an exam for the license as a legal Thai traditional pharmacist practitioner. After passing the exam, the student will become a legal practitioner in Thai traditional medicine drug stores. 2. Entrepreneurs should change the concept of drugstores from being a place selling drugs to “health center” which means drugstores can not only sell drugs but also sell health products like protective health products or treatment health products. 3. Entrepreneurs should give importance to the style of store decoration, depending on the target group and the location. The products for sale should be exposed to the light for too long or the kinds of products should be regularly rotated. The color for decorating the store should be white or light shades such as light blue or light green to provide a clean look. 4. The drugstore business is a market which can use only limited strategies and any propaganda is prohibited. Also, the business gains smaller profits than other businesses; therefore, drugstores should provide supplementary services such as advice on health and facility for health which correspond with the current lifestyle of consumers. 5. The drugstore’s pharmacist is the person who plays the most important role and the person who is closest to the patients. Hence, pharmacists should change their role into an interdisciplinary treatment provider which coordinates with other professionals. For example, the duty is to help take care of patient’s medication adherence, the suitability of drug dose, drug allergy, adverse drug reactions, and drug interaction.
  • 11. Guide Line for Marketing Strategy Improvement... 159 6. At present, users expect the quality of the health service. Thus, the Pharmacy Association should give importance to the workforce rate of pharmacists to be in line with the increased number of drugstores. Conclusion Drug stores are a kind of retailer that attracts customers due to cheap prices, vicinity, and no long waits. Drug stores are a specialty store which provides services along with products as it can be noticed from the customers at drug stores need sellers more than customers at convenient stores; therefore, there is a need to have a pharmacist stationed at a drug store branch. However, with the limited number of pharmacists at present, the extension of branches can face difficulty. Besides, the consumer behavior regarding the use of drug store service has changed: consumers need products of more variety especially supplementary food and cosmeceuticals and they want ‘One Stop Shopping’ for health and beauty products. Today, consumers have more knowledge about medicines, which can be noticed from the data regarding the factors affecting the use of drugstore services. For instance, consumers consider more about the drugs maintenance and expiry date, modern style of store decoration, air-conditioning, sufficient lighting for clear look at products, and cleanness. The drug buying behaviors of consumers vary: 1) A-B consumer group buys products from chain stores 2) consumers who have to consume drugs all their life will buy medicines from hospitals; however, the majority of consumers mainly buy drugs at traditional drug stores 3) consumers of over 60 years will get free treatment at government hospitals (as stipulated in the gold card); if they were private company employees, they can use social security rights 4) The general public will use the 30-Baht card. Reference 1. Kanlaya Wanitchbancha. 2003. Statistic Analysis: Statistic for decision making. Bangkok. Chulalongkorn University Printing. 2. Maneesong Pathomviriya. 2009. Marketing of Herbal Cosmetic : Consumer’ s Attitude. Bangkok. Thesis of Faculty of Technical Education. King Mongkut’ s University of Technology North Bangkok. 3. Parinya Akarajantachoti. 2008. The secret to opening a drugstore business confidently. On line : http://raya- manager.blogsport.com 4. Prasit Wongnitjasil 2010. The threat and business opportunity of drugstore. On line : http://www.drugserv.co.th 5. Prateungsri Likhitsan. 2008. Transform new drugstore. On line : www.manager.co.th 6. Thailand Drugstore Club. 2009 “Want to open a drugstore without failure episode I & 2 and the survival of drugstore.). On line : http://www.manager.co.th 7. Thai Pharmaceutical Manufacturers Association. 2009. Statistics of the application for license for medicine- related business operation during 1996–2006. Online : www.tpma.or.th 8. The University of the Thai Chamber of Commerce. 2001. Competition of Drug Store. Online : www.uttc.ac.th