Magazin: Pharmacies using retail strategies

Pharmaceutical retail is an exciting market in Hungary: about 2,350 pharmacies realise a HUF 580 billion annual turnover. Pharmanova Zrt. operates the market leading BENU Pharmacies and we asked chairman of the board Wolfgang Wallisch about the peculiarities of pharmaceutical retail.

For a few years now sales of prescription drugs – the main commodity of pharmacies – have been contracting, while the role of non-prescription OTC and Commodity products (dietary supplements, body and skin care etc.) is becoming more and more important. Mr Wallisch told us that many OTC manufacturers employ executives and product managers with FMCG experience. Consequently, BENU also examined what methods and techniques they can use to offer better service to customers. In 2011 they did nationwide market research to learn about the habits of pharmacy customers. The study revealed that 79 percent of customers are women, half of them are married and 66 percent of them have children younger than 18. Pharmacy customers are quite loyal. The main factor in choosing a pharmacy is finding what they need there, but prices and promotions are also important. BENU analysed the results of the survey and established a new concept, according to which they are redesigning their pharmacies, in order to present products more attractively. They pay detailed attention to everything, from lighting to furniture to easy-to-understand category marking to shelf display and product placement. BENU’s work bore fruit: sales by redesigned pharmacies grew by two-digit numbers (in percentage) in just one year and customer opinion about them was very positive. The good news is that pharmacies which are currently not operated by Pharmanova have the chance to join the BENU franchise and adopt the new concept. The franchise system was launched in December 2012 and already has 3 members. In addition to the pharmacy layout, BENU private label products also become available to franchise members. At the moment we find 8 products (vitamins and dietary supplements) under the BENU brand, but various new products will be added to the product line this year. BENU’s monthly promotional leaflet is sent to 1 million households. Pharmanova Zrt.’s turnover was HUF 53 billion last year. 139 pharmacies, 28 associated pharmacies and 1,100 employees worked for this success. Mannheim-based parent company PHOENIX is present in 23 countries, operates 1 550 pharmacies, in 2012
21,7 billion EUR (wholesale&retail)