Rx EDGE. Retail strategy considerations for the launch of a new product or indication. White Paper. Pharmacy Networks

Transcription

1 Retail strategy considerations for the launch of a new product or indication White Paper

2 Introduction One of the most difficult and stressful marketing decisions in pharmaceutical new product launches involves determining the optimal media mix for new-product introductions. Have we targeted the media placements properly? Are the consumer messages distributed in the optimal vehicles, to insure the right consumers are reached at the right time and place for maximum return on investment? What is the competitive landscape? What is the appropriate balance between consumer and healthcare provider efforts? These are just a few of the questions churning through the minds of product team members as a launch draws near. Years of effort and millions of dollars of research and development expenses are on the line. The multiplicity of media vehicles and channels only adds to the challenge. In any product launch, developing a compelling message is of paramount importance. But identifying the right combination of communication vehicles can make all the difference in whether or not that well-crafted message will be seen by the right audience at a moment when it will be most meaningful. Typically, introductory plans for new pharmaceutical products include a variety of consumer-targeted media vehicles and networks television, radio, print, physician s offices, online, mobile. Another channel that attracts millions of viewers daily is in the nation s many pharmacy outlets. In this white paper, we will explore the evolution of the retail pharmacy and its value as a communication vehicle to reach prospective new patients during a product s critical introduction and growth stages. 1

3 Contents Relevance of retail pharmacy as a consumer channel: facts, trends, and implications Harnessing the power of the channel for successful product launches: 8 considerations Conclusions 1

4 Relevance of Retail Pharmacy as a Consumer Channel: Facts, Trends, and Implications Consumer Shopping Dynamics Increases in household penetration, purchase frequency, and dollar share. Media delivered in the drug channel can deliver traffic, exposure and impact as shoppers re-focus their retail channel buying behavior. The SymphonyIRI Group recently released its Channel Migration report1 on trends in shopping channels. Drug stores continue to hold their own, with increases in household penetration, purchase frequency, and overall dollar share. This means that place-based media in drug channels can deliver traffic, exposure, and impact as shoppers continue to re-focus their retail buying behavior to get the most value. Retail-based health clinics are a significant healthcare force. Drug stores currently represent about 70% of the country s 1300 retail clinics but supermarkets and mass retailers have considerable of opportunity in this area as well, especially given their larger footprint and high overall traffic. As consumers head to the pharmacy for medical services, they also head to the OTC aisles, where placement of information about prescription products can be especially relevant and timely. There are 80,000 pharmacist vaccinators in the U.S. With ever-expanding availability of immunization services, the retail pharmacy is the ideal place to raise vaccination awareness and deliver information about vaccines. There are more than 80,000 pharmacist vaccinators in the U.S.2 comprising nearly half of all retail pharmacists. Immunizations provided in this setting are cost effective and also support our nation s public health goals in making vaccinations more accessible. The retail pharmacy setting is an ideal place to raise awareness and deliver educational information about recommended vaccinations.

5 Year after year, consumer polls related to trust in community professionals show that consumers consider pharmacists among the most honest and ethical. A Nov. 28-Dec Gallup poll finds Americans rating the honesty and ethical standards of three medical professions nurses, pharmacists, and doctors the highest of the 21 professions tested. Pharmacists have been in the top three for nine consecutive years including Pharmacists are nearby, well-regarded, and knowledgeable on the whole spectrum of medicine. Programs delivered via the pharmacy/pharmacist carry added credibility. 71% 71% of total prescriptions dispensed are filled by retail pharmacies of all types---independent, chain, mass and supermarket.4 As a core part of chain drug store business, the pharmacy area offers accessibility, education, convenience, and interaction. RETAIL PHARMACY Nearly all (93%) of Americans live within 5 miles of a community pharmacy outlet. The average distance to a retail pharmacy is 1.26 miles.5 Such significant consumer and patient access means that pharmacies will continue to play an increasingly important role in the daily lives of Americans. 81% of U.S. adults use OTC medicines available in the retail pharmacy aisles as a first response to minor ailments, and 89% believe OTC medicines are an important part of their overall family healthcare.6 Consumers who first self-treat are a prime audience for information related to prescription alternatives

6 Economic Impact is $1.6 Trillion $ $ $ The economic influence of retail stores with pharmacies reaches well beyond their $900 billion in annual sales. Their total annual economic impact is $1.76 trillion, based on 2010 data---equivalent to approximately 12% of the gross domestic product. 7 Retail stores with pharmacies will continue to be a robust force in the economic landscape and in their respective communities. Today s retailers are devoting more time and attention to retail-based programs such as screening tests, wellness programs, and on-site educational events that establish their value as a health services resource. These efforts are generating more store traffic---which results in an even bigger audience for brand messages delivered through retail pharmacy programs OTC Vitamins Drug stores are the outlet of choice for a variety of health and personal care solutions Fitness Accessories RETAIL PHARMACY Home Medical Supplies Focused on delivering healthcare services not just prescriptions Offer relationships with trusted professionals Deliver extensive targeted reach Accommodates quantifiable research Weight Management At-Home Tests Rx Drug stores are the outlet of choice for a multitude of health-related items and definitely benefit from their reputation as frontline healthcare providers. Consumers are there for seemingly everything! Retailers are doing all they can to add services and drive more traffic. The pharmacist is viewed as a trusted and available resource by consumers. There are large numbers of consumers in the stores everyday that can be targeted various ways. By using appropriate measurement methodology, you re able to get results that are quantifiable. That is what makes drug stores an ideal channel to include as part of the marketing mix. 1 Symphony IRI Channel Migration: Charting a Course on the Voyage for Value August American Pharmacy Association Gallup Poll 2011 Honesty and Ethics Ratings survey 4 IMS Health and NACDS Economics Department 2010, from NACDS Chain Pharmacy Industry Profile NCPDP Pharmacy File and NACDS Economics Department 2010, from NACDS Chain Pharmacy Industry Profile StrategyOne for CHPA, November 24, NACDS Chain Pharmacy Industry Profile

7 Harnessing the Power of the Channel For Successful Product Launches: 8 Considerations Educate consumers about disease state Stimulate awareness of the disease state in conjunction with product information Potential patients may be aware of their signs and symptoms, but may not be particularly aware of their condition. Providing educational materials can help them to recognize symptoms and prime them for action prior to the launch of the product. This is especially important for conditions that are not well understood by most consumers. If you re launching a new PPI, there probably isn t a great deal of value in trying to drive awareness of heartburn/gerd. However, if you re launching a new product for a much less understood condition like fibromyalgia, disease information prior to launch may prove very valuable. Create awareness early in product lifecycle Begin consumer outreach efforts in the early-launch stage The pharmacy provides a platform for pre-launch communications that drive awareness early in the product lifecycle Reach the right prospective patient Zero in on the target audience when healthcare is top of mind, and convey specific product information Reaching the right prospective patient is one of the most difficult things to accomplish for a new product of any kind, but particularly for a pharmaceutical brand that has a limited audience. Retail outlets allow you to reach targeted consumers based on their shopping habits---for example, in a given OTC aisle, through wellness events and screenings, at the clinic, and even through other prescription purchases. The important thing is to connect with them when healthcare in general (or ideally, around a specific ailment), is top of mind. Provide incentives to facilitate patient action Deliver patient savings offers to create trial Patient savings programs have become a highly utilized ingredient in trial-building strategies---and delivering them in the retail pharmacy can be an optimal time to generate patient interest and action. The savings offer may help create an increased sense of value in the mind of the consumer and provide incremental motivation to take action. Delivering a card with unique information in a pharmacy based program can also be a factor in evaluating the program s true success. Some surveys indicate most people get prescriptions filled in more than one pharmacy. Looking at where redemptions occur can help us understand that impact. But keep in mind, the redemptions are a just one measure. The real answer lies in measuring the actual impact on prescription sales. Multiple offers in the marketplace for the same product can also confound the analysis. It comes down to script sales impact!

8 Create springboard for discussion with physician Incorporate self-diagnosis tools, doctor discussion guides and similar resources In accordance with the pharmacy s role in education, you can also deliver materials that help potential patients understand their symptoms and have more productive discussions with their doctors. Leverage pharmacy s value as point of care destination Include reminders to discuss any medication questions with the pharmacist The pharmacist is a trusted member of the healthcare community and they are almost always there when a consumer is in the store. Promoting discussions with the pharmacist can only enhance the outcome of a program. Track and measure results Take advantage of the retail setting s advantages in reliable measurement through matched-panel test/control research The retail setting lends itself particularly well to quantitative measurement. A well-matched panel test vs. control methodology that utilizes data directly from the retailer allows you to evaluate the sales success of in-store programs in a statistically reliable way. It also allows you to evaluate to some degree the sales impact of programs running outside the store in the same geographies. The incremental lift can be attributed to the in-store program and the lift in the control stores is a measure of the brand s overall success. It is important to ensure that stores are matched closely for their general characteristics like geography, banner, and overall sales as well as sales of the promoted product. This kind of rigor in the matching will pay off in statistically reliable results. Integrate with other elements of the marketing mix Reinforce messages seen and heard through other brand media forms Pharmacy programs can be used to extend the reach and value of overall consumer marketing campaigns when brands use a mix of online, television, social media, and other channels. The creative execution that brands use for our Solutions at the Shelf program typically follows the same look and feel as the brand s print efforts, website etc. Leveraging the work already done on creative materials only enhances the efficiency of pharmacy programs.

9 Conclusion All roads in healthcare at some stage lead to the pharmacy. Communications delivered here can influence a significant number of prospective new patients and play a major role in the success of new product launch plans. By leveraging the evolving strategies in the retail channel, marketers can add value in the ways that matter most: Reach Relevance Results Through geographic and demographic targeting, meaningful reach can be achieved whether a new brand is in the pre-launch, introductory, or ramp-up stage of its marketing efforts Consumers are focused on healthcare while in the pharmacy, and messages carry a high degree of connection The retail environment is well-suited for research methods that reveal a consumer program s true impact on prescription sales volume Solutions at the Shelf Strength in Targeted Reach for New Products Millions of consumers walk through the doors of retail pharmacies every day. We help pharmaceutical companies reach them through our 30,000+ drug chains, supermarkets, mass merchants and independents that represent 74% of retail prescription sales. The treatment journey often begins in the aisles of the retail pharmacy when experiencing symptoms, most consumers first head to the OTC section in search of remedies. Our prominent information dispensers are placed at the shelf near targeted OTC or other corresponding products, and at the pharmacy counter. Both reach consumers when they are most receptive to healthcare messages. The take-one inserts contained in the dispensers deliver product and disease state information and promote doctor-patient communication. They are also an ideal vehicle for trial offers and coupons, a key tactic in product launches. To maximize the impact of their launches, new products across a variety of therapeutic categories have turned to programs, generating an average lift in prescription volume of 7.2% and an average return on investment of over $5.00.* LEARN MORE To learn more about how programs can help your brand achieve its goals, visit or call Michael Byrnes at * Matched panel research conducted by Retail Intelligence, Inc. Results based on 45 new launch programs for 18 brands.