Driving Growth: Working with International Retailers. Joachim Neukam, Senior Partner Steinbeis Vertriebs- und Marketinginstitut (VMI)
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1 OTC Toolbox / PLG Conference 2017 Driving Growth: Working with International Retailers Joachim Neukam, Senior Partner Steinbeis Vertriebs- und Marketinginstitut (VMI) London, March 3rd
2 Joachim Neukam on LinkedIn
3 Agenda 1. Landscape of International Retailers 2. Ways of Working with International Retailers in FMCG 3. What can OTC learn from FMCG? 4. Key Success Factors 5. Summary
4 Agenda 1. Landscape of International Retailer
5 TOP 10 Retailers 2015 WalgreensBootsAlliance moves up leader board and Amazon joins TOP 10 Source: Deloitte Global Powers of Retailing
6 Size of Buying Alliances 2015 Consolidated Turnover of Alliances (in bn) Eurauchan ICDC Services Source IGD research et rapports annuels des distributeurs. Mis à jour sur base CA
7 7 The Key Players Eurauchan
8 Internatonal Pharmacy Retailers McKesson AS Watson WalgreensBootsAlliance Phoenix Group Zur Rose
9 Agenda 2. Ways of Working with International Retailers in FMCG
10 Concept of International On Top Contracts x % on-top conditions* International services** *over the annual turnover in each country of the retailer **market access, workshops, consumer promotion opportunities etc
11 Customer Prioritisation Collaborative partnership Joint Business Plan Workshop Top to top meetings Exclusive brands/products/promotions New countries extension New market support International Data sharing International mediation Transactional relationship Global connection (first gateway) Trade Marketing Innovation acceleration Promotion amplification Soft services Premium services
12 Agenda 3. What can OTC learn from FMCG?
13 Learnings from FMCG Need for international Coordination Need for Pricing Strategy Cross functional Approach Category Thinking From Shopper Journey to Patient Journey From transactional customer relationship to a Strategic Partnership
14 Agenda 4. Key Success Factors
15 Key Success Factors International Key Account Management Partnership Model Category Growth Approach Joint Business Planning
16 Category Management Principles Category Management Steps Category Definition What Determine the products which make up the category based on patient needs How Define Wound Healing category based on category dynamics, patient insights and trends - Include Rx, OTC only? - Adjacencies or cross purchase impact? - Existing segmentation vs changing segmentation e.g. need state Category Role Assign category role based on insights regarding patients, shoppers, pharmacists, doctors etc. The role of Wound Healing in pharmacy - Importance of doctor recommendation - Relevance of pharmacist / assistants intervention - Shopper & patient journey Category Assessment Identify sales & profit opportunities Analysis of data - IMS, i.e. growth, profitability, trends - POS or loyalty card data - Share of RX, OTC, Cosmetics Category Scorecard Set objectives and targets to measure category Overall success criteria for Wound Healing performance - Win / Win / Win Category Strategy Develop and formulate winning category growth story Simple, clear and compelling category growth story to achieve a win/win/win outcome Category Tactics Determine assortment, pricing, ranging, visibility, education, recommendation etc. Develop guidelines for execution regarding all relevant elements Implementation & Review Implement the category growth plan and strategy through pharmacy level execution Develop and provide toolkit for pharmacy level execution
17 Partnership Approach Define Opportunity for your Brand Next Opportunity Get Top to Top Buy in Annual Top to Top Review Joint Workshop Track Progress via Quarterly Reviews Agree Joint Business Plan
18 Workshop Approach for Joint Business Planning Capabilities and objectives Supplier Capabilities and objectives Retailer Areas of Collaboration (retail, wholesale, logistics, supply chain, services) Breakout groups by business units, functions and/or countries Summary and Actions = Joint Plan
19 Agenda 5. Summary
20 Summary - The Landscape in pharmacy retailing will change - More international and more e-tailing - More consolidation - Learn from FMCG experience and best practice - Leverage skills and toolkits - Avoid same mistakes - Maintain patient focus to grow the business
21 OTC Toolbox / PLG Conference
22 Q&A Questions?
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