RxGenius

Marketing 101

As a Pharmacist, “Marketing” is not something they taught in Pharmacy school.  As a business person, you have either used a ‘learn as you go’ or have been forced to hire a marketing company. You need to ensure that the technologies you select include marketing tools.  I advise Pharmacies to be wary of marketing companies that charge you for what is, pretty much, a common sense approach; but one that you simply don’t have time to focus on.

A Bit of Marketing Theory

It only takes a little theory practiced and applied – and soon you will find that marketing is part of your daily routine. Marketing is more than sales – it is a set of activities used to:

• Get your potential customer’s attention.
• Differentiate yourself from the competition with special sevices/products.
• Motivate your potential customers to buy.
• GET them to actually buy. *Recognize and reward your best customers, to keep them. *Attract new customers based on your unique branding and services.

Marketing is how you define your Pharmacy, products, promote your products, distribute your products and services, and maintain a positive relationship with your customers.

The ‘theory’ of Marketing is made up of only a few main concepts..  Each contributes to your ‘marketing mix’.  There is usually not a ‘single’ marketing concept that is a complete success; it is a combination of efforts. 

Product: Product is, of course, the service and/or products that you have to offer to the customers. There are a number of things about the product you should evaluate.  It is important to understand your product and service from the customer’s point of view.

Product Description: It is critical to be able to say in one clear sentence, why your product and service is perfect for a specific customer/patient; and what it does best.

Product Name: It is more important to be descriptive than creative. There are some exceptions to this – such as working in ‘the arts’.

Functionality, Features & Benefits: In order to begin to understand the product and service from a customer’s point of view, list the functionality, features and the benefits that the product/service has.  Prioritize each for the target market or market segments to determine the development as you go forward.   

Product/Service Adaptability: By understanding how adaptable your technology is, you can incorporate the necessary elements into your marketing.

There are six factors for measuring how ‘adaptable’ your product/service is:

1. Relative advantage of the product/service: How superior is the innovation to the product/service or other problem-solving methods it was designed to compete against? Will it offer automated and cross-over functions?
2. Compatibility: Does it fit with current product/service usage and customer activity? Can you easily identify the best customers? Can you develop tools to bring new customers in?
3. Complexity: Will confusion arise in understanding the innovations basic idea?
4. Divisibility: How easily can trial portions of the product/service be purchased?
5. Communicability: How likely is the product/service to appear in public places where it is easily seen and studied by potential users?  Are you offering the same products/services that can be found elsewhere at lesser costs?
6. Labor Intensive: Is the product/service creating a situation that requires repeating previous procedures, yet expecting a difference in results?

A little ‘common sense’ goes a long way!

Karen Sulprizio
Email Me or Call Me: 1-866-312-8324

Transitioning from Pharmacological to Integrative Medicine, from Drug Store to Wellness Center

Introduction:
Jump In!  The Natural and Wellness Business Environment is Warm, Friendly and Growing

It’s hard to describe to people who don’t live the LOHAS lifestyle just what has happened over the last two decades, what is happening now, and what we believe is going to happen in the future in the world of health and medicine.  We’re the folks who have embraced alternative medicine and turned it into integrative medicine, have consumed natural and organic products and turned them into a world wide movement including USDA rules and regulations, and are spending more discretionary dollars on health and wellness because a) we have the money and b) we want to live a long and healthy life.

Here’s a quick example – a woman in her 30’s working in hospitals, has friends who are doctors, starts buying natural and organic foods in the early 80’s, has health challenges MD’s can’t solve, turns to diet and nutrition, acupuncture physician (MD) and mind-body center in Boston for solutions.  Her health improves and interest in chiropractic care, massage therapies and nutritional supplements grows.  Yes, emergency surgery for a true emergency, antibiotics when absolutely necessary; but now, at the age of almost 60, health is about staying well and feeling good with a wide range of nutritional supplements, organic foods, exercise and positive living. 

Ok, maybe this doesn’t give you the picture.  So try this:  In 2007, 81% of the US population1 consumed nutritional supplements, spending an estimated $20.3 BILLION2 on vitamins, minerals, herbal and dietary supplements.  Another $343.5 billion was spent on functional foods and beverages, where specialized nutrients are added to foods to provide a different distribution method for needed nutrients than traditional pills.  Growth of supplement sales alone was a healthy 6% in 2007, whereas growth of pharmaceuticals in 2007 was only 3.8%, the slowest rate of growth since 1961.  And this is in a period when 12,000 people are turning 50 every day and 70% of the nations net worth is in the hands of the burgeoning baby boomer population.

The fact is, so called alternative medicine is here to stay and it’s now considered mainstream.  More than half of Americans think combining alternative medicine with conventional medicine is helpful.  And with the frightening headlines about meat, produce and drug recalls and drugs found in 24 city’s drinking water, consumers are increasingly fearful of conventional foods and medicine and turning in droves to the newly labeled “organic lifestyle.” At the same time, cosmeceuticals and the organic and natural personal care category is growing faster3 than any other in the CPG industry, a healthy 11% - 13%, driven by youth and beauty seeking aging baby boomers.

Pharmacists should be elated at this news!  Wellness is the perfect safe haven from a shaky pharmacy market, restrictive government regulation, and shrinking Medicare reimbursement environment.  An integrative medicine pharmacy will have more customers, better margins, expanding categories, and enjoy steady growth due to the green movement and boomer tidal wave that are fueling growth of this market for decades to come.  All this, plus the fact that pharmacists are considered to be the second most authoritative source of information on health issues4, right after doctors, with 51% of supplement users saying that pharmacists are a very important or important influence on their purchase and consumption of nutritional supplements.

So, calling all pharmacists! Jump into the wellness market.  We welcome you, want you and need you!

How?  You may ask.  If you’re thinking about transitioning your drug store into a wellness center, here the first ten steps you can take to start the transition. 

1.  Read the “natural products” trade publications, especially those focusing on nutritional supplements and body care products.
2.  Go to industry trade shows & conferences
3.  Visit existing, successful integrative pharmacies
4.  Take courses in supplements, herbs and body care that are sanctioned and supported by the natural products industry
5.  Look for OTC and professional “natural” brands that a) conform to GMPs, and b) provide transparent, quality formulation information and third party efficacy research
6.  Join industry trade and lobby organizations
7.  Start shopping in natural product stores to get in swim with the market
8.  Establish business relationships with key industry distributors and directly distributed natural product brands
9.  Adjust branding, store decorating and merchandising to fit the needs and wants of the “natural consumer”
10. Hire other credentialed practitioners on staff

Now back to that woman in the second paragraph.  That’s me.  A consumer of alternative remedies, organic and natural foods, and a healthcare marketer for over 30 years.  And co-founder of Living Naturally. 

My next ten Blog posts will give you more details on each of the 10 steps listed above.  Or if you want the information faster, call Karen at 1-866-312-8324 or email us.

Linda O'Hara
Visit my website, or email me.

1 Nutrition Business Journal, 2008 Year Preview:  US Nutrition Industry
2 Natural Marketing Institute, The Health & Wellness Trends Database, Natural Products Association Presentation July 20, 2007
3 Hot Changes in the Organic, Natural and Supplement Markets, Expo West, March 13, 2008, Anaheim, CA
4 Natural Marketing Institute, New Consumer Research, Capitalizing on Trends in the Nutritional Marketplace, SupplySide West Presentation November, 2005

Thinking Outside The Pill Bottle

Smart independent pharmacies have taken the initiative to not only think about analyzing their business model – but taking action as well!

A Complete Miss: A recent trend of some independents has been to add ‘gift card’ only programs. Although there is a market for these things, the holiday season was a perfect ground to show that every retail store, from the mass market chains to card stores carried the same cards. The turnstiles carrying the well known titles were in every entrance of every store imaginable. This was another marketing mistake – as there was nothing unique or different for the independent pharmacy.

Taking The Signal from the Chains:  These companies invest in what works – and what is profitable. They stay within the guidelines of health and wellness.  Longs Drugs has committed $225,000 to the California Governor’s Council on Physical Fitness and Sports. The funds will be used to sponsor regional awards, Front Runner Recognition awards and their ongoing Activity Guide. 

CVS has had a long and successful loyalty marketing program with the knowledge that they are keeping their existing customers and attracting new ones.  The program has done so well that they are taking it to the next level.   Raleigh-based Kerr Drug has health-care centers in about 16 of the approximately 160 stores it has in the Carolinas. They plan to add more. Customers can get one-on-one diabetes education, flu shots and wellness assessments in those centers. CVS, Walgreens and Rite Aid have similar programs and are looking to offer more nationwide. 

Independents Need to Differentiate:  ‘Not just your average pharmacy’ should be the motto of each Independent.  Those that are flourishing have added integrative medicine products that are not usually found in the chains.  Informative and health oriented websites, combined with their own uniquely branded Loyalty programs have added credibility to these pharmacies.  Keeping in contact with the patients with wellness e-newsletters and e-mail communiqués containing product information and coupons have given these Independents a refreshing new edge.

Independent pharmacies need to have the resources to market their Pharmacy, products and services in today’s economy for today’s customer and patient. 

Smart Marketing: We always offer a word of caution in paying a marketing company for information that is really ‘common sense.’   You shouldn’t have to attend a 2-day seminar or any other lengthy, expensive program to prove that you are spending your money wisely.  You should be working with technologies that include automated marketing tools as ‘part’ of the service. The ‘key’ concept is simple: recognize, reward and keep your best customers and develop unique branding with services and products that attract new customers.    

Offer Health & Wellness Products:  Existing customers and patients are spending their dollars on vitamins, supplements and integrative medicine.  The independent pharmacy is in the best position to offer higher quality products – than those found at the usual mass chain pharmacies.   You are one of the top resources for your patients for their wellness needs. 
Your customers will thank you and your margins will be higher.

Karen Sulprizio
Email Me or Call Me: 1-866-312-8324