Davy de vlieger at the Marketing Shower

1Growing the pharmacy pie !

2

Agenda

1. Omega Pharma

2. Pharmacy Landscape in Belgium

3. Is there data available in Pharmacies?

4. How retail-driven are we in OTC?

5. Conclusion

3

Agenda

1. Omega Pharma

2. Pharmacy Landscape in Belgium

3. Is there data available in Pharmacies?

4. How retail-driven are we in OTC?

5. Conclusion

1.Omega

Pharma

5

1987 Founded in Belgium by 2 pharmacists, including Marc Coucke

1994 MBO by Marc Coucke

1998 Expansion in Belgium and IPO at EUR 3.1 IPO price

2000+ International expansion through acquisitions

2007 Transformation into pure-play OTC through IPO of Arseus

2010 Five pillar strategy, matrix structure, reinforced management

Now From pipeline to execution

5

Omega Pharma at a glance

66

Strong geographical coverage

Geographical spread (FY2010 sales)

Operations in 35 countries

Present since 1987 (BE)

Expansion phase 2000-2004 (W EU)

Expansion phase 2007-2009 (CEE-CIS)

W-Europe

39%

Belgium

30%

France

18%

Emerging

Markets

13%

77

From € 23m to € 857m turnover in just over a decade

0

200

400

600

800

1000

1200

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Consumer Health Professional Health

23

178

1,007

789

IPO

Sta

rt inte

rnati

onalizati

on

Ars

eus

carv

e-o

ut

729

811

Pure OTC company

814 857

88

Unique business model – 100% OTC

Push Strategy

Extensive networking with pharmacists

Visibility in pharmacies

Approx. 800 sales reps out of a total of 2,225 employees

Address the evolving distribution of OTC products (e.g. in grocery stores)

Pull Strategy

Focused TV ads

Web information

Consumer education

Ad hoc promotion campaigns (e.g. Paranix in schools)

Educational consumer websites

TV advertising

9

Agenda

1. Omega Pharma

2. Pharmacy Landscape in Belgium

3. Is there data available in Pharmacies?

4. How retail-driven are we in OTC?

5. Conclusion

10

2. Pharmacy

Landscape in

Belgium

11

The Belgian Retail / OTC markets cover different

distribution channels

• ‘OTC’’: one flag covering a complex cargo in Belgium:

12

OTC Distribution in Belgium

• In Belgium OTC medicines follow

the following distribution path:

• Pharmacy distribution pyramid in

Belgium:

Pharma Industry

Wholesalers Groups /

Pharmacy chains

Independent

pharmacies

Pharmacy

chains

: sales flow

13

Agenda

1. Omega Pharma

2. Pharmacy Landscape in Belgium

3. Is there data available in Pharmacies?

4. How retail-driven are we in OTC?

5. Conclusion

14

3. Is there data

available in

Pharmacies?

15

3. Is there data available in Pharmacies?

YES - definitely :

¡ SO data per pharmacy/per day/per sku for the most

important Integrated Chains.

¡ CODIMP data

¡ IMS SO data as needed – WD en ND data cf.

Nielsen.

¡ GfK Data

¡ 70 Salesreps visiting 5-6 pharmacies per day

¡ I-Vox Data

¡ Etc.

16

Agenda

1. Omega Pharma

2. Pharmacy Landscape in Belgium

3. Is there data available in Pharmacies?

4. How retail-driven are we in OTC?

5. Conclusion

17

4. How retail-

driven are we

in OTC?

18

Most important motors of category growth:

Propensity index

If the index is over 100, the category is very important for pharmacies.

Closure rate

The percentage of shoppers at pharmacies who buy the category and have bought it at least once at a pharmacy.

Share of requirement

Indicates loyalty to pharmacy for this category – for households that buy the category at a pharmacy.

19

Most important motors of category growth:

Propensity index

If the index is over 100, the category is very important for pharmacies.

20

Growing the pharmacy pie !

By attracting the “heaviest” buyers:

Zoom Health Galenco Baby

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ZOOM HEALTH

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Mothers with children are the

“heaviest” pharmacy shoppers

An important moment for mother and child!

Optimal preparation is essential,

because there are factors that can make the first weeks of school less

pleasant…

23

Omega Pharma tells mothers how important good preparation is in

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Besides communication, always indicate clearly:

BUILDING TRAFFIC of the “heaviest” shoppers to the PHARMACY

• Lice

• Colds

• Boost resistance

• Warts and verrucas

• Skin care

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Call to action to visit the pharmacy:

Discount vouchers for consumers

to get to know our products!

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It‟s often the first products they use at the maternity

hospital that Mothers continue to use for their babies

GALENCO Baby aims all its activity at “POME”: Medical team that visits maternity hospital

Product sets available in the maternity hospital

Info packages to teach mums how to take care of their babies

28

GALENCO Baby sets contain a

LOYALTY card for purchases

at the pharmacy:

One product FREE

after 5 products purchased

BUILDING TRAFFIC TO THE PHARMACY

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Most important motors of category growth:

Closure rate

The percentage of shoppers at pharmacies who buy the category and have bought it at least once at a pharmacy.

30

Growing the pharmacy pie !

By increasing the ‘closure rate’ at the pharmacy:

Bodysol SUN Phytosun Arôms

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Mums should be made aware that optimum protection starts in childhood

Bodysol Sun is going to help mothers with an educational info guide

Few mothers who buy sun protection products buy them at the pharmacy

DNA cells damaged during childhood may eventually develop into cancer cells!

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EDUCATIONAL INFO GUIDE

Aimed at mothers

How can I protect my children from the sunpleasantly?

Unique cooperation with Studio 100

Reward system with stickers and

cards

GUARANTEE OF SUCCESS motivate children in a positive way

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EDUCATIONAL INFO GUIDE

Including a reward system with stickers and cards

to save them on: the child gets a sticker every time it is ‘creamed’

Strong visibility in pharmacies via displays

EXTRA MOTIVATION TO BUY SUN PROTECTION PRODUCTS FOR KIDS AT THE PHARMACY

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36

Aromatherapy market still

very underdeveloped at pharmacies

Phytosun trains shoppers at pharmacies: Small sessions at individual pharmacies by aromatherapy experts

Opportunity to buy

37

Phytosun trains pharmacists : Plenary sessions at 7 locations – inc. „reference materials‟

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Make essential oils accessible via diffusers

– combined with starter kits:

Attractively designed/user-friendly diffusers at accessible price – for „easy‟ access to

aromatherapy

Combined with starter kit: 4 top selling E.O. with wide-ranging applications.

INCREASE CLOSURE RATE for aromatherapy

RELAXING

Lavender abrial

MOOD IMPROVING

Bitter orange tree

REVITALISING

Lemon

CLEANSING

Scots pine

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Most important motors of category growth:

Share of requirement

Indicates loyalty to pharmacy for this category – for households that buy the category at a pharmacy.

40

Growing the pharmacy pie !

By increasing the ‘share of requirement’ at pharmacies:

Bodysol range displays & loyalty card

Galenco Baby category management & range actions

41

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Bodysol business is much stronger

in the North than in the South (x2)

Visibility is CRUCIAL

for Bodysol:

stimulate

IMPULSE BUYING based on the unique

“price/quality ratio” :

N: whole range on display ►

48 SKUs (all segments)

◄ S: limited range on mini-display

(16 top SKUs – from core

segments)

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The BODYSOL loyalty

programme:

The aim is to familiarise consumers with

the whole RANGE so that they don’t

limit themselves to repeat buying just

1 type of product

N: 10+1 free ►

10= 1x DERMO PROTECT

1x BATH or SHAMPOO

8x product of CHOICE

◄ S: 5+1 free

5= 1x DERMO PROTECT

1x BATH or SHAMPOO

3x product of CHOICE

INCREASE SHARE OF REQUIREMENT10+1

44

45

Milk powder is the baby category bought most often and in the largest quantity at pharmacies

Opportunity to stimulate impulse buys in other baby categories via this category:

Group baby milk, hygiene & care products and accessories together

Clear segmentation and arrangement (less is more)

Promotions that stimulate range buys

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=> GROUP all BABY SUBCATEGORIES

so that purchases of one category can stimulate purchases of the other.

CENTRALPOSITION

of category With highest penetration

and frequence :

BABY FOODserves as draw

for otherbaby category

purchases

BABY HYGIENE

& SKIN CAREBABY

ACCESSORIES

47

Rearrange baby care categories:

Group the various categories

together

Clear segmentation and signs

so it‟s easy for shopper to choose

Separate zone for promotions to stimulate impulse buys

Build SOR via impulse & grouping

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BEFORE AFTER

49

Galenco offers promotions that

stimulate range buying:

Attractive free gifts when several

varieties are purchased

Strong visibility in promotional zone or

on the counter

Build Share of requirement by stimulating range buying

50

Agenda

1. Omega Pharma

2. Pharmacy Landscape in Belgium

3. Is there data available in Pharmacies?

4. How retail-driven are we in OTC?

5. Conclusion

51

5. Conclusion

PGEU

PGEU

PGEU

11 december 2008 IFB

PGEU

PGEU

PGEU

Conseils

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5. Conclusion

Any further questions?