OTC Toolbox / PLG Conference 2017 Driving Growth: Working ... · 117263-2015-11 © 2016 3 Agenda 1....

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© www.steinbeis-vmi.de 2016 1

OTC Toolbox / PLG Conference 2017

Driving Growth:

Working with International Retailers

Joachim Neukam, Senior Partner Steinbeis Vertriebs- und

Marketinginstitut (VMI)

London, March 3rd 2017

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Joachim Neukam on LinkedIn

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Agenda

1. Landscape of International Retailers

2. Ways of Working with International

Retailers in FMCG

3. What can OTC learn from FMCG?

4. Key Success Factors

5. Summary

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Agenda

1. Landscape of International Retailer

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TOP 10 Retailers 2015

Source: Deloitte Global Powers ofRetailing 2017

WalgreensBootsAlliance moves up leader board and Amazon joins TOP 10

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Source IGD research et rapports annuels des distributeurs. Mis à jour sur base CA 2015.

Consolidated Turnover of Alliances (in €bn)

ICDC Services

Eurauchan

6

Size of Buying Alliances 2015

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Eurauchan

7

The Key Players

http://www.norgesgruppen.no/norgesgruppen/norgesgruppen/

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Internatonal Pharmacy Retailers

•McKesson

•AS Watson

•WalgreensBootsAlliance

•Phoenix Group

•Zur Rose

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Agenda

2. Ways of Working with International

Retailers in FMCG

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*over the annual turnover in each country of the retailer**market access, workshops, consumer promotion opportunities etc.

x % on-top conditions*

International services**

Concept of International „On Top“ Contracts

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Customer Prioritisation

Global connection (first gateway)Trade Marketing

Innovation accelerationPromotion amplification

Exclusive brands/products/promotions

New countries extensionNew market support

International Data sharingInternational mediation

Joint Business PlanWorkshop

Top to top meetings

Softservices

Premiumservices

Transactionalrelationship

Collaborative partnership

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Agenda

3. What can OTC learn from FMCG?

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• Need for international Coordination

• Need for Pricing Strategy

• Cross functional Approach

• Category Thinking

• From Shopper Journey to Patient Journey

• From transactional customer relationship to a Strategic

Partnership

Learnings from FMCG

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Agenda

4. Key Success Factors

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Key Success Factors

International Key Account

Management

Category Growth Approach

Joint Business Planning

Partnership Model

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Category

Management Steps

What How

Category Definition Determine the products which make up the

category based on patient needs

Define Wound Healing category based on category

dynamics, patient insights and trends

- Include Rx, OTC only?

- Adjacencies or cross purchase impact?

- Existing segmentation vs changing

segmentation e.g. need state

Category Role Assign category role based on insights regarding

patients, shoppers, pharmacists, doctors etc.

The role of Wound Healing in pharmacy

- Importance of doctor recommendation

- Relevance of pharmacist / assistants

intervention

- Shopper & patient journey

Category Assessment Identify sales & profit opportunities Analysis of data

- IMS, i.e. growth, profitability, trends

- POS or loyalty card data

- Share of RX, OTC, Cosmetics

Category Scorecard Set objectives and targets to measure category

performance

Overall success criteria for Wound Healing

- Win / Win / Win

Category Strategy Develop and formulate winning category growth

story

Simple, clear and compelling category growth

story to achieve a win/win/win outcome

Category Tactics Determine assortment, pricing, ranging, visibility,

education, recommendation etc.

Develop guidelines for execution regarding all

relevant elements

Implementation &

Review

Implement the category growth plan and strategy

through pharmacy level execution

Develop and provide toolkit for pharmacy level

execution

Category Management Principles

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Define Opportunity

for your Brand

Get Top to Top Buy in

Joint Workshop

Agree Joint Business

Plan

Track Progress via

Quarterly Reviews

Annual Top to Top Review

Next Opportunity

Partnership Approach

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Capabilities and objectives Supplier

Capabilities and objectives Retailer

Areas of Collaboration

(retail, wholesale, logistics, supply chain, services)

Breakout groups by business units, functions and/or countries

Summary and Actions = Joint Plan

Workshop Approach for Joint Business Planning

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Agenda

5. Summary

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Summary

- The Landscape in pharmacy retailing will change

- More international and more e-tailing

- More consolidation

- Learn from FMCG experience and best practice

- Leverage skills and toolkits

- Avoid same mistakes

- Maintain patient focus to grow the business

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OTC Toolbox / PLG Conference 2017

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Q&A

Questions?

[email protected]

mailto:[email protected]

OTC Toolbox / PLG Conference 2017 Driving Growth: Working ... · 117263-2015-11 © 2016 3 Agenda 1....

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