Vincent Abadilla January 2011

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10 step Marketing Plan for

TARGET PHARMACY

5 Steps for Part 1(PTM and positioning)

1. People of all ages, gender and social class

2. Who needs prescription medication, but wants quality products and expects good customer service

3. Competitors: Pharmacies (i.e. Rite-Aide), doctors

4. Gap: lack efficient aftersales support5. Market size: (US population), niche

size

5 Steps for Part 2(Marketing Mix & Strategy)

6. Target Pharmacy prescription medication bottles

7. Competitively priced8. Utilizes print ads as well as word of

mouth 9. Branches are found nationwide10. Product Differentiation

Part 1:Steps 1 to 5

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Positioning to the Primary Target Market

1.My primary target market (PTM) are individuals who have health concernsDemographics: All age groups, both

male and female, from the social classes A, B, C, D, either single or married.

Lifestyle: busy and active lifestyle. Behavior: Prescription based, oral

medication

2. My PTM’s NWENeeds: Access to quality medicationWants: Quality product and service Expectations from the product:

Convenience, hassle-free service

Access to correct medication

Health is wealth!!!

2. My PTM’s NWEPeople needTo have a sense of security with the health

intervention they are receiving as well as Self actualization about the importance of having a healthy mind and body

People choose Target Pharmacy over other brands because of their unique approach to customer service and quality products.

People expect this when they use Target Pharmacy products

Quality and customer-centered products, convenience, and hassle free service.

3a. Target Pharmacy has many formidable competitors

Direct: Rite Aid, CVS, Walgreen, Medcohealth,

Indirect: Walmart, and other supermarket who offers generic drugs.

Variables: Price, packaging, accessibility, convenience of use, availability, Occasion of use, brand

3b. Competitive Position MapDetermine the 2 most critical variables

Price vs. Convenience of useMake a position map plotting the different

competitors

Target Pharmacy’s niche: laid back consumers

Price vs. Convenience of use

Consumer friendly

Traditional

Low Cost

High Cost Walgreen

Rite-Aide

CVS

Target Pharmacy

Walmart

Price vs. Convenience of use Matrix

Target Pharmacy’s unique positioning is shown in this competitive map

Positioning vs. Brand MatrixTarget

Pharmacy

Walgreen

Rite Aide

CVS Walmart

Sell Branded goods

Sells Generic goods

Express/online service

Personal Service

Customer friendly containers

4. Target pharmacy positions strongly in a niche market opportunity

Target is the only pharmacy Which offers a value added customer

service along with its quality products Catering to people of all ages and genderwho requires worry free value added

service even at home. No brand has a similar position.Others focus on convenience, low price and

large segments

5a. Based on competitor data, Drug retail industry is $80billion

SOURCE: http://www.wikinvest.com/stock/Rite_Aid_(RAD)

5b. Estimate market size

5c. Estimate the market size using customer data

5. Concluded that Drug retail market is $253.6 billion

1. Competitor data= $80 B

2. Company data = $ 90 B

3. Usage data = $ 80 B

Part 2:Steps 6 to 10

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The Marketing Mix Strategy

6a. Target Pharmacy bottle vs. the competitors

6b. Product Description

Clear Rx bottles are the next generation medicine containersThey are only available in red (signify caution)

upside down bottles with safety caps. Bottles for pills have the typical child safety cap

while liquid bottles have built in syringes on the cap

6b. Product Description

Innovations:Easy-to-read label with the prescription’s name at the top,

making it simple to find in any medicine drawer. Information hierarchy: with the dosage and intake

instructions above less important info such as the expiration date and the doctor’s name.

Flat surface and upside-down design creates more space for the prescription information

Color-coded bands make it easy to distinguish between prescriptions for different family members.

6b. Product Description Innovations (continued)

Clear warning labels and graphics are easily distinguishable, with a large icon for each.

A handy mini magnifying glass can be tucked behind the label, so small text becomes readable.

Detailed side effects and a complete patient card are neatly hidden behind the bottle’s label.

7. Price

Prices from manufacturers varies from $0.052 to $ 0.14

Cost of bottles does not vary much as most of the changes are on the printing/design of the print

Due to the relatively low cost of the design as well as the minute difference if any on the production of the bottle compared to the traditional one, quality over cost is prefered

8a. Promo

Promotions include:Advertising (Health magazines and newspapers)

Print ads and radio/tv commercialsStore promotions

CouponsDirect Marketing

Doctors and health clinicsCustomer and doctor referrals

8b. Competitor promo

9. Target Pharmacy bottles are distributed nationwide using Target stores

Target retail outlets and storesNationwidePick-up by customers, preordered onlineCash and credit transaction

10. Target Pharmacy’s main strategy is product differentiation

Target pharmacy caters to the general public providing a unique added value to the common product, increasing customer satisfaction.

It benefits from the distribution leverage of Target outlet/stores

Has an excellent, regularly priced, quality product encased in an innovative packaging and distributed nationwide.

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SUMMARY

5 Steps for Part 1(PTM and positioning)

1. People of all ages, gender and social class

2. Who needs prescription medication, but wants quality products and expects good customer service

3. Competitors: Pharmacies (i.e. Rite-Aide), doctors

4. Gap: lack efficient aftersales support5. Market size: (US population), niche

size

5 Steps for Part 2(Marketing Mix & Strategy)

6. Target Pharmacy prescription medication bottles

7. Competitively priced8. Utilizes print ads as well as word of

mouth 9. Branches are found nationwide10. Product Differentiation