Expanding Business Through Providing Innovative Services in an Independent Community Setting Michael R. Gionfriddo, Pharm D. Candidate 2011, Sarah Witkowski Pharm. D. Candidate 2011, Tiera Hickman Pharm. D. 2010

Wilkes University – Nesbitt College of Pharmacy and Nursing

Business Pitch Marketing

Location Analysis

Corner Drug has been providing high quality pharmaceutical care

in the city of Beaver Falls for over 100 years. Under current

ownership the pharmacy is held in high regard as a leading

business within the community. Currently their mission is dedicated

to providing the best possible care to their customers and patients.

We propose that Corner Drug expand and add pharmaceutical

services in order to increase the quality of healthcare and the

access to healthcare for the benefit of their patients and the overall

health of their community. The creation of a wellness center will

facilitate the implementation of new and updated products,

protocols, and services.

In order to build upon the existing practice we propose to enter into

a junior partnership with the current owner. A junior partnership will

allow for the infusion of new capital, resources, experience, and

ideas into the business. Current profits in addition to acquisition of

a small business loan will provide the capital necessary to

implement the proposed changes. Services will be added slowly

along with a new advertising campaign to promote the newly

expanded products and services. Reevaluating and expanding

current services in addition to the application of new services will

assist the pharmacy in transforming its potential into tangible

results.

Services Offered

Marketing is essential for any business. Without a good marketing

strategy even the best businesses can fall short of achieving their

potential.

Advertising to local physicians, hospitals, specialists, health and

fitness centers is vital to a successful marketing campaign. A

special event open to the public could be hosted that would

showcase the improvements made to the pharmacy. This would

increase the pharmacies exposure, through both word of mouth

and through media coverage of the event. Other marketing

options include both newspaper and radio advertising highlighting

the expanded services that would be offered.

Marketing would not only focus on the expanded services offered

but would also advertise the quality customer service which has

been offered at Corner Drug for over a century.

Promotion of sale items and quarterly rotation of OTC goods have

been proven to boost sales and increase patient awareness of

products that may be beneficial to their health.

Evaluation of this marketing plan will occur on an annual basis

and change based upon the findings.

Overview of Current Services

•Walk-In Immunization Clinic

•Diabetes Education

•Delivery

•Ice Cream/Soda Fountain

•3-5 Compounds/month

•Limited DME supplies

•Continued delivery services

•Western Union

•Pennsylvania Lottery

Overview of Additional Services

•Advanced diabetes education including

monitoring blood glucose and A1C

monitoring

•Lipid Clinic

•Blood Pressure Screenings

•Personalized Smoking Cessation

Counseling

•More extensive DME selection and direct

Medicare Billing

•Expanded Immunization Clinic and

Protocol

•Medication Therapy Management

•Generalized lifestyle counseling

Corner Drug is in competition with many

other pharmacies in the area. A Rite Aid is

across the street and there is at least a half

dozen pharmacies within a five mile radius.

Specialty pharmacies in the area include a

compounding pharmacy approximately one

and a half miles away. Nearby stores that

may compete with Corner Drug’s over the

counter products include a Family Dollar

and other comparable stores.

There are numerous prescribers in the area

including an internal medicine practice two

blocks away. These are potential sources

for collaborative agreements which can

help support the services that will be

offered.

The location provides ample foot and

automotive traffic because it is a major

thoroughfare within the community. It is

located in the same area as shopping

centers, fast food chains, and schools.

Layout & Workflow

Purchasing & Financial Summary

Technology Applications

There is a adequate amount of parking

around Corner Drug, as meter parking

is available along the street.

A large proportion of the pharmacy’s

patients are either elderly or retired. As

for the area 17.5% of the population is

over 65 a according to census data

from 2000. Also in line with the current

pharmacy owner’s vision we will try to

target the population between 21-65

which makes up 51.2% of the

population of Beaver Falls according to

2000 census data.

Changes to the layout and workflow will allow for

the implementation of proposed services and may

even increase sales. Having a more efficient

workflow will save time and most likely save money

as well. A more organized counter space and

separate more private room for MTM counseling

and other clinical services will help the pharmacists

and their employees provide better care for their

patients.

Space on the upper levels of the building will be

used as warehouse space to increase the stock for

DME products carried.

Current services such as the ice cream and soda

fountain, which currently barely cover their

operating costs, will be eliminated in favor of an

area for counseling and other clinical services.

Open space within the store will be redesigned to

include longer gondolas containing more DME or

OTC merchandise, which can further augment

sales.

The Western Union and Pennsylvania Lottery sales

are a profitable source of revenue for the pharmacy.

As such these services will remain, but will be

relocated to the front of the store.

The pharmacy recently updated their computer

system and it currently includes barcode scanning,

Rx scanning, and signature capturing capabilities

required by Medicare. The current owner is looking

to improve the pharmacy’s technology by

purchasing an automation system. One type of

automation is IVR (Interactive Voice Response),

which would reduce stress, improve dispensing

accuracy, increase productivity, and enhance refill

compliance. The cost of this and other technology

upgrades such as point of sale would be

approximately $10,000.

Junior Partnership: $600,000

• Half ($300,000) of payment up front, remaining half over

the next 5 years from profits

• After overhead and salaries are paid, the senior partner

will receive 60% of profits

Capitol Needed

• Junior Partnership down payment: $300,000

• Renovations: $25,000

• Automated Phone System: $5,000

• New OTC and DME Stock: $25,000

Financial Options:

1.) Obtain a bank loan for $300,000 using past financial

statements and Profit and Loss Statements (P & L) and

pharmacy as collateral

AND

2.) Use last year’s profit to complete renovations and add

stock, future profits used to repay over the next 5 years

OR

3.) Obtain a small business loan: $55,000; 7% interest, repay

over 10 years

OR

4.) Obtain a line of credit for renovations at about ½% over

prime= pay off as soon as possible