Insight Reports

Opportunities in Community Pharmacies

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Opportunities in Community Pharmacies

This shared cost research draws a clear picture of the current structure of the market, sources of supply, buying habits, and merchandising practices. It shows how a typical community pharmacy store is run e.g. what proportion have more than one till point or use EPOS? How many pharmacists and other support staff are regularly in-store, and who is responsible for ordering OTC and non-medicines? What is the typical turnover breakdown between prescription medicines and OTC/non-medicines?

RESEARCH MOTIVATION

There are approximately 10,000 dispensing chemists in the UK, excluding Boots and supermarket dispensaries. But as a fragmented market, the community pharmacy sector can be difficult to supply and quantify. With consumer expectations growing and the government leading a number of significant initiatives, there is a need for better information for OTC and FMCG manufacturers. Insight brings to this market its unique trade research formula, which combines in-depth qualitative research and hard quantitative data based on a survey of the entire national market (not just a selection of chains). This enables the manufacturer to come to a full understanding of the community pharmacy retailer, and facilitates strategic decision-making based on accurate market figures.

RESEARCH METHOD

In Spring 2004 Insight carried out face-to-face depth interviews with thirty community pharmacists in Manchester and London and in smaller towns elsewhere. These interviews were taped and representative retailer commentary was extracted, analysed and presented to a team of major OTC and FMCG manufacturers who originally sponsored the research.

In Summer 2004, Insight interviewed 320 community pharmacy staff (including pharmacy assistants) across the UK using a 15-minute structured telephone survey designed by Insight together with the team of OTC and FMCG manufacturers.

From October 2004 this research has been made available for wider purchase. Subscribing companies receive a detailed report combining the results of the qual. and quant. research and drawing out the key action points. An individually tailored PowerPoint presentation is also offered to suit your requirements. Combined with the hard copy report, this provides a clear view of the approach required for any OTC/FMCG manufacturer operating in this sector.

WHAT THIS RESEARCH WILL TELL YOU

The research draws a clear picture of the current structure of the market, sources of supply, buying habits, and merchandising practices. It shows how a typical community pharmacy store is run e.g. what proportion have more than one till point or use EPOS? How many pharmacists and other support staff are regularly in-store, and who is responsible for ordering OTC and non-medicines? What is the typical turnover breakdown between prescription medicines and OTC/non-medicines?

It measures the extent to which in-store marketing materials and technologies have been adopted and quantifies the impact of television advertising on shopper demand and stock-outs.

It identifies which companies are active in the sector in terms of field reps, analyses the impact of these reps and pinpoints areas for improvement. How long do reps spend with retailers? What proportion of retailers prefers visits over telephone calls? How are rep agencies such as Ceuta different from manufacturer reps and what are retailers’ attitudes towards each?

The research describes the current sources of education and advice used by pharmacy staff. It illustrates how communications from manufacturers can be tailored to suit the ethos of the retailer, and which members of staff communications should be targeted at.

The research profiles the typical community pharmacy customer and their influences, as perceived through the eyes of the retailer. Is price an issue for OTC, or is product recommendation the sole driver? How does this differ for toiletries and other non-medicines? How do retailers approach product recommendation? How open is the market to BOGOFs and PMPs in non-medicines?

SOME FINDINGS

• In 46% of stores the pharmacy assistant usually orders the OTC and non-medicines.

• In only 18% of stores is ordering the sole responsibility of the pharmacist.

COMMENTS FROM AN INSIGHT SHARED COST SUBSCRIBER:

“Many thanks for delivering an excellent piece of Insight into the Pharmacy Trade Channel, the Pharmacists and their Assistants. The final analysis will be particularly useful for planning GSK's future interactions within this Trade Channel. Your professionalism throughout the project has been excellent. Of particular note was the flexibility shown in developing the questionnaires, the communication throughout, and the quality of the final qualitative and quantitative presentations. Well done and thanks again.”(Greg Bertolotti, Customer Marketing Manager, GSK Consumer Healthcare)

KEY FINDINGS

Basic conclusions on the 2004 community pharmacy market are drawn from the combined qualitative and quantitative research.

QUALITATIVE REPORT

Qualitative issues are explored in depth and illustrated with representative retailer commentary from over thirty taped interviews. Subjects include the life of a community pharmacist, obtaining supplies, running the store, and attitudes towards market change. Buying group affiliation and the characteristics of different buying groups are analysed in detail.

QUANTITATIVE SUMMARY (including Presentation Slides)

Slides from the in-company presentation of telephone survey results are given with commentary.

Hard data is presented graphically on issues including market structure, turnover breakdown, sources of supply, staffing, use of marketing materials and technologies, channels of education and advice, and the impact of television advertising.

The results of an attitude battery measure the significance of attitudes encountered during qualitative interviews.

COMMENTARY TO TABLES

The quantitative research methodology and definitions used in data tabulations are explained.

Significant breakdowns are interpreted and appropriate table references given so that the document may be used as a guide alongside the tables.

INDEX TO TABLES

Page numbers to tables

TABLES

Quantitative data is provided in breakdowns e.g. by store type, pharmacist/assistant, UK region and percentage of prescription turnover.

BRIEF AND QUESTIONNAIRE

The original research brief constructed by Insight and research syndicate members is included together with the telephone questionnaire used in the quantitative research.

Published: July 2004

Price: £ 5000, US$ 8795, € 7295

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