Where will consumers buy their (over-the-counter) drugs in the coming years?

2 min read
Feb 15, 2021 12:00:00 AM

An unprecedented change is currently taking place in the sale of pharmaceutical products.

The traditional distribution channel, the nearest pharmacy, will at any rate experience a substantial loss in revenue.

Just like the Pharma industry, which suddenly faces a substantially higher number of buyers in powerful companies like dm.de and Amazon, as well as online pharmacies with their keen calculations.

A ruling is about to be brought by the Austrian Constitutional Court on the Pharmacy monopoly. The initiator of this ruling, the drugstore chain dm, is seen as a key player in the coming disruption.

Many experts in the field, such as Professor Salesny from the Vienna University of Economics, are already pointing emphatically to the influence of the new competitors on the existing pharmacy structure.

The main message is that a lack of awareness of your own USPs will lead to a substantial loss in competitiveness.

As always, such extensive cuts do not allow a certain prediction of how the business results and market shares of those involved will change. The most reliable method of estimating the essential parameters as far as possible, other than rapidly recognising changes, is by looking closely at the experience (or similar experiences) of the past.

Our consultants’ extensive combined expertise from both the Pharma and FMCG industries means we can offer our clients essential room for manoeuvre when reacting to changing market conditions.

Market players must consider the following essential aspects in their USP-definitions:

Distinct brand strategy

Together we position the brands so that they are perfectly tailored to the needs of customers, patients, and doctors. You will only see success for your brands when all stakeholders profit from your approach – both now and in a future selling environment.

In-depth shopper knowledge

We accompany you in building knowledge and capabilities in your company – when, where and why do patients or rather consumers prefer to buy your products.

This is the only way to control the service offer of your products so that these needs are met perfectly. What still applies today because it was necessary is perhaps tomorrow a huge obstacle on the way to sales success.

Channel strategies

We help you to achieve clarity about what roles the various partners – stationary and online pharmacies, drugstores, and online giants like Amazon – can play in your commercial strategy and how you can translate this strategy into a customer benefit for both retailers and consumers – what is your contribution to helping your customers differentiate?

Goal-oriented pricing and pack strategy

Together we create an individualised pricing and pack strategy to cover various consumption and buying occasions. The goal is to create an offer that covers both value for money and willingness to pay and at the same time to achieve maximum market share and profit.

This requires extraordinary professionalism from the stationary pharmacy channel, since online competitors can always build on the huge advantage of the easy visibility of consumers’ reactions to price changes.

Efficient conditions system

To cope with the growing strength of the new players in the retail Pharma channel, we create together a new efficient conditions system which allows you to implement your strategic requirements when cooperating with these new customers perfectly.

Amazon and dm do not negotiate in the same way as Pharma wholesalers and pharmacists; the reason being is that their requirements of pricing and conditions are shaped differently depending on their framework as a drugstore or online retailer.

If you as a manufacturer can change your market presence versus the new players with the aid of the measures listed above, then you will be able to turn the new challenges into improved profitability and higher growth.

We would be happy to present our success stories to you in a personal meeting so that you can enter the changing environment of the pharmaceutical trade of the next decade well prepared and in good time.

Please do get in touch. We'd love to talk.

No Comments Yet

Let us know what you think