The Pharmacist. By KASK Consul7ng SOURYA DATA, KEITH HOERBURGER, KAUSHIK SAMPATH, ANKITA SINGH

Transcription

1 The Pharmacist By KASK Consul7ng SOURYA DATA, KEITH HOERBURGER, KAUSHIK SAMPATH, ANKITA SINGH

2 Agenda Problem Statement Background and Company Analysis Industry Analysis and Compe::on Alterna:ves and Decision Making Criteria Recommenda:ons and Implementa:on plan Risks, Mi:ga:on and Financials Conclusion

3 Problem Statement How can the BRUNET Pharmacies evolve successfully while registering growth?

4 BRUNET STRENGTHS Oldest chain of pharmacies in Quebec Parent company METRO INC. Personalized health advice, services Effec:ve use of technology MaSante program Health conscious brand WEAKNESSES No sales online Low penetra:on; only recent expansion BRUNET OPPORTUNITY Brand image Easy accessibility to customers THREATS Increased compe::on Low margins

5 Pharmacy Industry Compe::on Independent pharmacies Jean Coutu, Uniprix, Pharmaprix Retail giants Walmart, Target Legal constraints Loyalty Issues Ownership by pharmacist Non- compe::on clause Only 33% of customers return to the same pharmacy

6 Customer Analysis Quebec popula:on (in Millions) Aging popula9on: 13% to 16% within 10 years!! BoQleneck reduc9on Quick service PHARMACY CHOOSING CRITERIA Quality of advice Personalize d service Proximity Knowledge of pa9ent records

7 Alterna7ves Rewards program in organiza:on Gas sta:on rewards program Pharmacy benefit management Open new pharmacy inside every METRO store

8 Decision Making Criteria Alterna9ves Customer loyalty Profits Legal Constraints Differen9a9ng services Rewards program in organiza:on Gas sta:on rewards program Pharmacy benefit management Open new pharmacy inside every METRO store HIGH HIGH LOW HIGH HIGH LOW HIGH LOW HIGH HIGH LOW HIGH LOW HIGH LOW HIGH

9 Decision Making Criteria Alterna9ves Customer loyalty Profits Legal Constraints Differen9a9ng services Rewards program in organiza9on Gas sta:on rewards program Pharmacy benefit management Open new pharmacy inside every METRO store HIGH HIGH LOW HIGH HIGH LOW HIGH LOW HIGH HIGH LOW HIGH LOW HIGH LOW HIGH

10 Recommenda7on: Rewards Program How Organiza:on enroll employees in exis:ng MaSante app Why Reduce health insurance, beeer lifestyle, bring in revenues

11 Recommenda7on: Pharmacy Benefits How Marke:ng the program where people have a recurring need for medicines Why Accessible, sustainable, large market

12 Marke7ng Strategy Adver:sement through METRO, tradi:onal channels Execu:ve events organized by BRUNET to promote new programs

13 Implementa7on Rewards Program Steps 0-6 months 6-12 months months months Approach organiza:ons with new rewards program Customer uses our app to create his health record Rewards provided to employees every 6 months Discounts and offers provided to customers every period

14 Implementa7on PBM Program Steps 0-6 months 6-12 months months months Marke:ng the Pharmacy benefit management program Sefng up the infrastructure and delivery services Customer subscrip:on and enrolling for the program Start the delivery services

15 Risks and Mi7ga7on RISKS PROBABILITY IMPACT TOTAL RISK LEVEL MITIGATION High IT infrastructure cost US compe:tors with PBM facility entering before BRUNET Non- acceptance from employees Organiza:on unsure of rewards program from BRUNET LOW LOW LOW U:lize exis:ng technology; huge return on investment LOW HIGH HIGH First entry into Canada market LOW MEDIUM MEDIUM Long- term health benefits MEDIUM HIGH HIGH Reduc:on in health insurance costs

16 Financial Assump7ons Numbers provided were based off Metros numbers 10% of Metros Sales is Brunets: 1.2 Mil 0.2% of Quebec popula:on à 16,024 popula:on Revenue per customer: $ organiza:ons a year: enrolling 500 per company (Star:ng year 3) Organiza:onal size

17 Pharmacies 10% 10% 13% 9% Jean Coutu 21% 20% 17% Uniprix Familiprix Proxim Pharmaprix Brunet Others Brunet: 176 stores

18 Revenue Sales $12,010 Brunet Sales $1,201 Popula:on 8,012,000 Brunet Popula:on 16,024 Revenue per customer $ 74.95

19 Growth Poten7al Factoring in 3% organic growth from the industry Addi:onal growth from pharmacy benefit management: 5%à 10% over 5 years Organiza:onal Growth: 3 organiza:ons per year and 500 enroll from that organiza:on 21,000 Customer Growth Organiza:on 20,000 19,000 18,000 18,053 19,098 20,251 19,664 17,000 17,029 16,000 15,000

20 Revenue Total Revenue 1,431,400 1,473,787 1,517,814 1,353,111 1,276,332

21 Conclusion Problem Statement How to boost in the face of increasing compe::on Considera:ons Compe::ve environment Low customer loyalty Changing consumer behavior Reducing profit margins Legal restric:ons Recommenda:on Start extensive rewards program Pharmacy benefits management program

22 Thank you! Ques:on??

23 Appendix Sales Brunet Sales People in Quebec 8,012,000 16,024 16,519 17,030 17,556 18,098 18,658 Revenue Per Customer Illness Customers 5% % 7% 8% 9% 10% 1% 2% 3% 4% 5% Illness Revenue per customer , , , , , ,679 Cost per customer Marke:ng and Technology Cost 100,000 Addi:onal Customers from Organiza:ons Total New Customers 17,029 18,053 19,098 19,664 20,251 Total Revenue 1,201,000 1,276,332 1,353,111 1,431,400 1,473,787 1,517,814