retail know how for pharmacy

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Retail Know-How for Pharmacy Mike Hewitson, NPA Board Member Independent Proprietor source of info: http://www.npa.co.uk/Documents/NPA_Conference/presentations/Retail_Know_How.pdf

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  • 1. Retail Know-How for PharmacyMike Hewitson, NPA Board MemberIndependent Proprietor

2. Why is retailing important?Not dependent on NHS businessGenerates cash-flowGenerates footfall for other servicesProjects your business image to your customers 3. Developing a strategyIdentify strengths and weaknesses of current performanceResearch the marketIdentify opportunities and threatsMake actions SMARTReview performance and if necessary refine the strategy 4. Information is KeyDo you know what is and isnt working in your retailenvironment?SWOT analysis is a good starting point to develop astrategic planKey Performance Indicators (KPIs) are markers which youcan use to assess the impact of changeson your businessResearch your market 5. SWOT for Retail PharmacyStrengths WeaknessesPersonal servicePriceCustomer knowledgeInfrastructureExisting relationship Lack of brandingTrust Poor/no marketingFlexible & responsive Confidence to investOpportunitiesThreatsOnline retailingSupermarketsOlder populationOnline retailersUp-sellingWider economyCross-sellingReward loyalty 6. Retail KPIsFootfallAverage sale valueTop-selling products by value/volumeMissed sales: frequency, value & productsStock-holdingKPIs are the pulse of your business - they arent just forlarge companies 7. Researching the marketMarket trends & analysisLook at what competitors are doing.Look at changes in the local population or local shops -local media good potential source of informationSpend time, not money 8. UK Health & Beauty MarketDuring the recession consumer spending on Health & Beautyrose by 3% to 17.1bnCosmetics is a growing market +5.4% in 2010Skincare set to overtake OTC as the largest categoryUnderstand changing demographics: Older people are a growing market and have specific needs and disposable income Birth rates are falling - lower demand for babycare, also, customers driven by value 9. Improving retail salesMarketing to maximise footfallStaff trainingMerchandisingRetail layoutPricing strategy 10. Marketing your businessAttract and retain customersIdentify and communicate the benefits and USPs of yourbusinessFlexible plan which can change if neededWhen consumer spending is tight, reducing spending onmarketing is a false economyAvoid spreading budget too thinly 11. Staff TrainingAre retail skills part of your routine staff development?Consider staff training to improve customer experienceTrain staff to up-sell i.e. offer other relevant products tocustomers already making a purchaseDevote time to review performance and offer individualfeedback to members of staffConsider regular staff meetings to reinforce key salesmessages or boost product knowledge 12. MerchandisingProduct displays should not be an afterthought, they areimportant to the image that your business projectsDont have to spend a fortune on new display materials: rotatingmerchandise, changing displays or changing signage can makecustomers feel that you always have something new to offerCross-merchandise i.e. position related items close together e.g.memory cards with cameras. Must be logical (and obvious)Understand human nature 13. Retail Layout Several basic models for laying out your retail spaceDiagonal -Encouragescustomers to moveStraight - Good sight around shop Mixed - uses alines. Uses space variety of displayefficiently. Basictypes. Draws trafficdesignto walls and back ofshop 14. Pricing StrategyUnderstand the difference between cost and value - makesure your customers doHigh prices could = high quality to some customers.Converse could also be trueSlashing prices can harm long-term profitabilityPricing tactics: Discounting, Loss leaders, Skimming,Penetration 15. Strategy ReviewWhen you have implemented your retail strategy, it isimportant to review performance regularly.Refer back to KPIs, and track performance.If necessary tweak the strategy.Dont become complacent. The retail environment isconstantly evolving, stay still at your own peril! 16. The Proof: Central Pharmacy, Cardiff- High-endskincare, cosmeticsand fragrance. - 15k retail salesper week.- Online turnoverc10m. - Clarins salon. OWNER: RAJ AGGARWAL OBE,NPA BOARD MEMBER 17. KEEP MOVING FORWARD, KEEP INVESTING, KEEP UPGRADING,KEEP UP TO DATE, KEEP LISTENING & TALKING TO CUSTOMERS RAJ AGGARWAL