1 Growing the pharmacy pie !
Jan 21, 2015
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
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The Belgian Retail / OTC markets cover different
distribution channels
• ‘OTC’’: one flag covering a complex cargo in Belgium:
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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?
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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.
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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…
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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
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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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Aromatherapy market still
very underdeveloped at pharmacies
Phytosun trains shoppers at pharmacies: Small sessions at individual pharmacies by aromatherapy experts
Opportunity to buy
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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
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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
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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
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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
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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
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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?