About Us. What is the future of pharmacy business? Why Pharmacy business?

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2 About Us Kingsmann Pharmacies is a UK based Pharmacy Chain specialising in healthcare and branding. We use economies of scale to help reduce costs allowing us to pass these on to group members. We provide assistance with aspects of management and training for all partners and group members. Kingsmann Pharmacies approach is very flexible and can cater for the individual requirements of your business. We offer a number of business arrangements tailored to your needs Why Pharmacy business? Medicines are a life essential just like food, clothes and shelter An aging population means that demand on medication and healthcare is increasing Healthcare services is a rapidly growing sector that needs to meet the demands of an ever-growing population Pharmacies can be operated around the clock Pharmacy is a recession proof sector. While patients might cut down on luxuries, medicines will continue to be purchased. What is the future of pharmacy business? With an increase in average life expectation and changing lifestyle there is an growing demand for health care products and services. These include medicines, surgical items and wellness products and services. The retail pharmacy industry is expected to grow around 20% year on year with organised, well-supported pharmacies expected to see growth of 30% by 2020 Emergence of new alternative channels. Internet and mail-order pharmacies are gaining strength and research suggests that the Internet has no limits. The healthcare sector will need to keep up with changes in technology and trends in order to stay relevant.

3 Demand for convenience and expertise. Today s health consumer wants it all. Whether it is prescription services, personal care products, or clinical services, the priority is on expertise, convenience, and accessibility. To be able to do this successfully, a pharmacy should be well versed in the following: What are the operational activities involved in running a retail pharmacy? Retail pharmacy is similar to a retail trading business Operations primarily consist of sourcing the required medicines and other general products from many suppliers and selling them to the end customers through the retail outlet Identifying and estimating the demand for the products in the area Maintaining stock levels and ensuring availability of the products Proactively leading the marketing in terms of new products and developments in medicines and technology that is applicable to your target demographic. Minimizing stock loss due to expiry, damage, theft or pilferage Building relationships with multiple suppliers for all products Negotiating prices, discounts and payment terms with the suppliers Procuring in time and as per deman Maintaining necessary registrations, documentation and procedures to comply with the laws of the state and drug regulatory authorities Maintaining a record of customer details, sales data and missed sales Continuous updating of stock based on knowledge acquired over time Managing the team involved in the pharmacy operations Managing cash with an understanding of costs, revenue, profit and loss Satisfying customers with exceptional service Generating demand through marketing and promotions

4 Why Kingsmann Franchise? The Kingsmann brand is highly rec ognised and well trusted for its in tegrity and the great benefits it offers to its customers Kingsmann has successfully built a large retail pharmacy chain in the United Kingdom in a short period of time Kingsmann is well known for providing quality and genuine medicines, superior customer service and great value for money The way we have operated in the UK has allowed us to develop a user friendly web based application and intranet system that allows pharmacies to record vital business information such as prescription figures/types, banking, expenses, staff hours/holidays, till takings and much more. As an Kingsmann Franchise You can carry the pride of our success in your locality in a reputable profession with assured income You are assured of the best training, knowledge, and support for running a large pharmacy established by our strong operations expertise and sourcing, technology and execution capabilities You generate higher profits by having access to our high quality private label brands with that yield higher margins What are the advantages of an Kingsmann Franchise in comparison with an independent pharmacy store? As an Kingsmann Franchise, you are at an unparalleled advantage to address the challenges encountered in operating a pharmacy. Challenge 1: Sourcing a high number of SKUs (Products) from a highly fragmented market To manage a large number of brands and products in terms of sourcing, stocking and payments while managing sales & staff. Advantage for Kingsmann Franchise: Our proven process handles this just at the click of a button. All you need to do is to concentrate on counter sales, staff management, and customer relations. Challenge 2: Refined inventory planning A pharmacy is only successful if it is able to provide requested products and services. However, poor inventory planning leads to lock of capital and losses due to unsold and expired stock. Advantage at Kingsmann Franchise: Inventory management and ordering as per local demand is completely automated to avoid additional capital investment needs and minimise losses.

5 Challenge 3: Low quality and fake medicines Due to a fragmented and unregulated supply chain, low grade, poor quality medicines are easily available in the market. Protection from them needs investment in process, time and experience. Advantage of Kingsmann Franchise Kingsmann minimises this by sourcing all products directly from manufacturers and its direct autrised distributors only The stocks are then meticulously maintained in proper storage conditions during warehousing and transportation to the pharmacies. Challenge 4: Competition The Pharmacy business is a relatively low risk business with a good return on investment, hence competition is high. Advantages for Kingsmann Franchise: Brand recognition and attractive discount and loyalty schemes attract a high number to customers to the store and retain the customers. An independent pharmacy could never offer 20% to 30% savings on medicines that an Kingsmann store can offer. Challenge 5: Profitability and Gross Margins The trade margins for many of the products sold in a pharmacy are low and fixed. To address this, an independent pharmacy has to source best priced private label products of high quality, which can happen only if volumes are good and have a domain expertise in sourcing.

6 Advantage for an Kingsmann Franchise: Kingsmann, due to its huge scale is able to offer a wide range of high quality private label products both in medical and general segments with a higher margin. Challenge 6: Online pharmacies Online retail is growing significantly in the sub-continent and it is just a matter of time before e-pharmacies will become an established feature of the competitive landscape. This is definitely a threat for an independent pharmacy. Advantage of Kingsmann Franchise: An Kingsmann Franchise can service both online and offline customers in that area. Challenge 7: IT systems & technology Support To succeed, pharmacies need easy to operate, tamper proof, transparent MIS technology and billing systems which are often expensive to procure and difficult to use. Advantage to an Kingsmann Franchise: We provide all the systems needed by the Franchise and technological support which enables you to handle the pharmacy, sales, purchases, customer records and bank deposits without any hassle. Challenge 8: Additional sources of revenue Marketing products, medical and branded lines can be difficult for independant pharmacies and profit margins will suffer as a result. Advantage of an Kingsmann Franchise: Due to our reach and negotiating capacity, the ability to generate a higher income is greater through this channel. We can offer support with merchandising and product placement to boost profits.

7 What is the eligibility criteria to be a franchisee or who can become a franchisee? Basic Profile: Individuals willing to work hard, diligent and dedicated Should be willing to personally manage the pharmacy operations rather than through employees Education & Experience: What support does Kingsmann provide to the Franchise? Assistance with selecting the right location for the store Help with store identification and lease finalisation Complete layout plan, branding materials and furniture and systems required Training for the franchise and its staff Facilitate a bank loan if required Supply all products sold through the store Operational support through the running of the store Audit support A pharmacist qualification is helpful, however it is not mandatory Prior experience in a pharmacy or managing a small business would be favourable

8 Contact Us Looking to get in touch with us? You can contact us via phone or Saghir Ahmed MPharm, GPhCHead of Operations Head Office Safraz Shafqat MPharm, GPhC Business Development Manager Kingsmann Care Group 98 Cathedral Rd Chadderton OL9 0RG Tel: Fax: Michael Price BA (LLB) Business Development Manager Dr. Salman Shahid MRCP (UK), MRCGP (London), MSc Health Management (Oxford Uni) Business Consultant