Brunet Pharmacies. Marke+ng strategy. BGU Consul+ng
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1 Brunet Pharmacies Marke+ng strategy
2 Agenda 1 Introduc+on 2 Analysis 3 Alterna+ves 4 Implementa+on 5 Finance 6 Summary
3 Main Challenge and key issues How could BRUNET brand to evolve successfully while registering growth? Complex legal context Decreasing profits Loyalty issues Evolu+on of consumer behavior Arrival of Target Introduc+on
4 Introduc6on 1 Introduc+on 2 3 Analysis Alterna+ves Brunet 4 5 Implementa+on Finance Pharmacies 6 Summary Introduc+on
5 Introduc6on Introduc+on Analysis Alterna+ves Implementa+on Finance Summary Stores: 10 BRUNET Clinique 24 BRUNET Plus 100 BRUNET Pharmacies Ownership: 1987: McMahon Distributor Pharmaceu+que Inc acquired BRUNET McMahon Distributor Pharmaceu+que Inc was bought in turn by METRO INC Introduc+on
6 BRUNET - Introduc6on Products Health and wellbeing Cleaning Beauty Photos Orthopedic Values Health conscious brand Modern image Innova+ve Services Laboratory Pharmaceu+cal advise Professional services Introduc+on
7 1 Introduc+on 2 Analysis 3 4 Alterna+ves Implementa+on Analysis 5 Finance 6 Summary 1 Analysis
8 Analysis Strengths Innova+ve and pioneering spirit Oldest chain Major player in health promo+on Involved with universi+es Mobile tool- MaSante 18,000 members Weaknesses Smallest numbers of stores No unique products Opportuni6es Aging popula+on Lack of +me of consumers Legisla+on- Bill 41 Cosme+cs sales in pharmacies increase by 6% Threats Strong and large compe+tors Costumer loyalty 1/3 return to same pharmacy 1 Analysais
9 Analysis - Compe6tors Between pharmacies Business Retail stores: Walmart Target Cosme+c stores (Sephora) Communica+on level 1 Analysais
10 Analysis - Compe6tors size Jean Coutu Uniprix Pharmparix Familiprix Proxim Access Pharma Target Online pharmacies 369 pharmacies 19,000 employees. 360 pharmacies Rising sales 176 stores 625 Shoppers Drug Marts Increase in sales ( ) 300 owner pharmacists 54 pharmacies 134 department stores Strategy and Future plans Marke+ng performance, employee sa+sfac+on Acquire 14 new pharmacies Offering ajen+ve and personalized service Standardize customer experience Having loca+ons within proximity of its clients Humor and absurdity ProxiSante Mon dossier Neighborhood pharmacies Close contact with clients Walmart Scheduled to fall 0f 2013 Compe++ve advantage/ weakness Partnership with Air Miles $269.2 losses Special place in clients hearts Private brand products Men s products Master Card Posi+ve financial performance Three type of stores: Commercial clinic and extra Delivery service Price comparison on website 2 nd large distributor (2012) Some products are Illegal to sale online 1 Analysais
11 Media Exposure 18% 29% Jean Countu Uniprix Familiprix Proxim Phamaprix Brunet 16% 5% 8% 24% 1 Analysais
12 Distribu6on Channel 14% chains Dep. Stores 16% Independent 70% 1 Analysais
13 Number of Loca6ons in NA Pharmaprix Uniprix Jean Coutu Proxim 1 Analysais
14 1 Introduc+on Analysis Alterna+ves Implementa+on What are the op+ons we are facing? 5 Finance 6 Summary 1 2 Alterna+ves
15 Main Challenge and key issues How could BRUNET brand to evolve successfully while registering growth? Complex legal context Decreasing profits Loyalty issues Evolu+on of consumer behavior Arrival of Target Introduc+on
16 Alterna+ves Key Points Loyalty Differe- n+a+on Customer Service This key points led to number of alterna+ves ahead 1 2 Alterna+ves
17 Alterna+ves Loyalty Differen6a6on Customer Service 1 Adding new product lines 2 Adding new services 3 Customer Focus New eyeglasses sec+on Cosme+c products for men Non- que service Golden age premium Delivery to customer Weekly proffesional forom on social media Expanding number of Pharmacies 1 2 Alterna+ves
18 Alterna+ves Decision Making 1 Adding new product lines 2 Adding new services 3 Customer Focus Proximity Quick service Quality of advise Reduc+on of bojleneck within the health care system Personalized service 1 2 Alterna+ves
19 Chosen Alterna+ve Loyalty Differen6a6on Customer Service 1 Adding new product lines 2 Adding new services 3 Customer Focus New eyeglasses sec+on Cosme+c products for men Non- que service Golden age premium Delivery to customer Weekly proffesional forom on social media Expanding number of Pharmacies 1 2 Alterna+ves
20 Implementa6on Plan 1 Introduc+on 2 Analysis 3 4 Alterna+ves Implementa+on How to do it? 5 Finance 6 Summary Implement 4 5 6
21 Implementa6on plan - Blocks Logis+cs Delivery system/predefined drop boxes Customer loyalty program Golden age club HR Training personel (for dedicated care) Partnership with professionals (Week forum) IT Non queue system Online coupons Customer DB Analy+cs for preferences Expansion Find strategic loca+ons Elderly houses partnerships HR recruit Implement 4 5 6
22 Implementa6on plan Timeline (First year 2013) Delivery system Deploy drop boxes Boxes Hype Golden Age marke+ng campaign Non queue system 1. Requirements 2. Deployment 3m 6m 9m 12m Implement 4 5 6
23 Implementa6on plan Timeline (Second year 2014) year 2013) Customers DB analy+cs 1. Requirements 2. Research 3. Defined coupons HR training Partnership with pros (week forum) Customer loyalty 1. Cards 2. Analy+cs 3. Points systems 3m 6m 9m 12m Implement 4 5 6
24 Implementa6on plan Timeline (Next 3 years ) Find loca+ons 1. Nego+a+on elderly houses 2. New store HR Recruitment 3m 6m 9m 12m Open a new store each year in order to expand Implement 4 5 6
25 1 Introduc+on 2 Analysis 3 Alterna+ves 4 Implementa+on 5 Finance 6 Summary Financial 5 6
26 Number of pharmacies 10% 9% 21% Jean Countu Uniprix Familiprix Proxim Phamaprix Brunet 10% Others 20% 13% 17% Financial 5 6
27 5 Years Forecast Current $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ Financial 5 6
28 Summary Main Challenge How could BRUNET brand to evolve successfully while registering growth? Expected Outcome Summary 5 6
29 THANK YOU
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