Brunet Pharmacies. On the cu0ng edge of health

Transcription

1 Brunet Pharmacies On the cu0ng edge of health Presenta(on to the Board by Nanyang Consul(ng By Aswathi Suresh, Cory Reid, Jonah Wong, Sunitha Vijiyasingam 1

2 Agenda 1. Problem Statement 2. Analysis of Challenges 3. Recommenda(ons 4. Alterna(ves 5. Fitness and Healthy Living 6. Expanded Product Mix and Accessibility 7. Virtual Pharmacy 8. Key Performance Indicators 9. Financial Analysis 10. Implementa(on Roadmap 11. Analysis of Risks 12. Conclusion 2

3 Problem Statement SHORT TERM: Strategy to counter the threat posed by Target s market entry LONG TERM: Strategy to transform Brunet to be the long- term market leader 3

4 Analysis of Challenges SITUATION Owned by METRO Pioneering mobile tool program, MaSante Diverse product offerings health, cosme(cs Prac(cal approach to marke(ng CHALLENGES Ø Impending market entry by Target Ø Fierce compe((on, with similar offerings Ø Decreasing profitability, increasing expenditures Ø Customer loyalty issues Brunet s primary challenge is to differen(ate itself from compe(tors, with innova(ve services to retain customer loyalty 4

5 Recommenda=ons Leader in Preven(ve Healthcare Fitness and Healthy Living Expanded Product Mix and Accessibility Virtual Pharmacy Brunet Pharmacies should reposi(on itself as the champion for Preven(ve Healthcare 5

6 Alterna=ves Alternatives Revenues Costs Increase number of stores Acquire independent pharmacies Virtual Pharmacy Rebrand as a Preventive Healthcare provider Expand outside of Quebec Offer lower prices Partner with hospitals Brand Differentiation Ease of implementation Overall Rebranding as a Preven(ve Healthcare provider offers Brunet the highest amount of brand differen(a(on, without compromising on profitability 6

7 Fitness and Healthy Living WEBSITE OFFERING PRODUCT OFFERING Revamp current website and mobile app as a fitness portal Info and nutri(on advice Addi(onal source of adver(sing revenue Healthy, nutri(ous organic foods Fitness equipment PARTNERSHIPS Reputable gyms with large customer base like Gold s Gym Cross- pollina(on of customer base - access to new customers Promote the gym s memberships and classes in Brunet stores Focus on growing consumer preference for holis(c health and fitness op(ons 7

8 Fitness and Healthy Living How Brunet Pharmacies (176 in Quebec) Brunet Brunet Plus Clinique and Clini Plus Healthy food offerings Basic fitness equipment Trained staff to cross- sell Product demonstra(ons Expanded variety of products Fitness Tests Body Fat Weight measurement Blood test, Blood Pressure All stores will offer basic health and fitness products and services, with the Plus store formats offering addi(onal differen(ated products and services 8

9 Fitness and Healthy Living How Balanced Score Card for Gym Partner Service standard measurement Customer sa(sfac(on Conversion rate of gym members to Brunet customers Enrolment rate in gym classes Cleanliness of facili(es Geographical footprint of gym outlets The partnership with the gym will be evaluated with the use of a Balanced Score Card 9

10 Expanded Product Mix & Accessibility Dis(nct Customer Segments Targeted Product Mix Enhanced Product Accessibility Brunet should focus on improving product mix catered to customer needs and product reach 10

11 Expanded Product Mix Customer Segments Segment current customer base on the basis of: Age Gender Consumer preference Fitness Fana(cs Beauty Conscious Healthy Moms and Babies Elderly Target each customer segment with tailored products similar to iherb Define dis(nct customer segments with very specific needs 11

12 Expanded Product Mix How Product Mix Reviews Feedback Loop Only healthy products Catered to different segments Online product reviews from customers Quick aken(on to nega(ve feedback Direct customer and employee feedback Iden(fy new trends and products categories Selec?on Criteria for Products: All natural/organic Environmentally friendly Nutri(onal value Poten(al health benefits Relevance to consumers High profit margins Target product mix to customer segments and allow Z for feedback to grow these segments 12

13 Expanded Product Accessibility How Metro Pickup loca(ons Delivery op(ons Leverage supply chain to get bulk order discounts Kiosks in Metro stores Pickup loca(ons across city, based on number of orders and geographical proximity to stores Prepaid op(on for annual orders delivered monthly Fine- tune distribu(on system to enable customers to easily reach and access Brunet products and Z services 13

14 Virtual Pharmacy Online Prescrip(ons Consumer Educa(on Nutri(onal Advice Expand online portal service offerings to create a Virtual Pharmacy that (es in with Preven(ve Healthcare image 14

15 Virtual Pharmacy How Regula(ons Legal research to iden(fy restric(ons to the senng up of virtual pharmacies Drao pe((on and lobby for amendment Staff Training Pharmacists not physically present Training to use online conferencing systems and technology plaporms Consumer Educa(on Consumer marke(ng through s, website, mobile apps Build awareness that consumers can print online prescrip(ons Take measures to improve legal acceptance and consumer acceptance of the Virtual Pharmacy concept 15

16 Key Performance Indicators Gym Members Promo(onal Ac(vity Nutri(onal Service Uptake MaSante Training Conversion Rate from gym members to Brunet customers Growth of in- store and online promo(onal ac(vity ROI of above Pickup rate of nutri(onal advice service Increase in signups Number of pharmacists trained 16

17 Financial Analysis Cost Projec=ons Costs (CAD) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Online Portal Development and Maintenance 100,000 50,000 70,000 20,000 22,000 24,200 Addi(onal Labour (Pharmacists, Part- (me Nutrionists) 10,000 20,000 30, , , ,000 Training & Development 10,000 30,000 33,000 36,300 39,930 43,923 Logis(cs Costs 0 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100 Marke(ng & Rebranding Costs 5,000,000 2,000,000 2,000,000 2,200,000 2,420,000 2,662,000 Addi(onal Virtual Pharmacy Setup costs 50,000 50,000 50, Total Costs 5,170,000 3,150,000 3,283,000 3,656,300 4,092,930 4,564,223 17

18 Financial Analysis Revenue Projec=ons Revenue (CAD) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Online Portal Revenue 400,000 6,000,000 9,000,000 18,000,000 21,000,000 24,000,000 Online Portal Ad Revenue 0 500, , , , ,050 Trade & Promo(onal Income 0 2,880,000 3,120,000 3,360,000 3,600,000 3,840,000 Total Revenue 400,000 9,380,000 12,670,000 21,965,000 25,265,500 28,572,050 Assump(ons: Virtual Pharmacy in opera(on from Year 3 onwards 60% takeup rate of Store Adver(sing in Year one growing at 5% each year to 80% by Year 5 0.5% Market share for Online Portal Services with average basket of CAD 150 annually 18

19 Financial Analysis Profitability Projected breakeven on ini(al investment in one year 19

20 Implementa=on Roadmap Recommenda(ons Fitness and Healthy Living Marke(ng & Rebranding Fitness Portal Development Pharmacist Cross- Training Launch Portal Expanded Product Mix & Accessiblity Consumer preferences research Procurement Delivery Op(ons Virtual Pharmacy Nutrionist Hiring Legal Research Pharmacist Training Build Consumer Awareness Launch Virtual Pharmacy Phase 1 Phase 2 Phase months 7-12 months 1-2 years 2-3 years 3-4 years 4 years + 20

21 Analysis of Risks RISKS Changing consumer preferences for pre- orders Moving away from core competencies Ensuring partners adhere to high levels of service Legal complica(ons with dispensing online prescrip(ons Addi(onal cost for delivery service Lack of store space for new products MITIGATION Ø Flexibility to change orders in remaining schedule Ø Partnering with gym to leverage their core competencies Ø Balanced scorecard, customer reviews Ø Iden(fy regula(ons and lobby for change, buffer (me for this change Ø Delivery service fees and MOQs Ø Experien(al products only at Brunet Plus, also online only products 21

22 Conclusion Leader in Preven(ve Healthcare Fitness and Healthy Living Expanded Product Mix and Accessibility Virtual Pharmacy Brunet Pharmacies should reposi(on itself as the champion for Preven(ve Healthcare 22