Drug Stores: Presented By, Preetha & Sowmya

Drug Stores
Presented by,
Preetha & Sowmya
1
Drug Stores
 Drugstore is a common term for a type of store centrally
featuring a pharmacy.
 Drugstores not only sell medicines, but also miscellaneous items
such as candy, cosmetics, as well as light refreshments.
2
Indian Market
 The pharmacy retail market is valued at INR 216 bn in 2009 and
estimated to reach INR 432 bn in 2011.
 The market is fragmented and dominated by the unorganized
sector.
 Pharmacy retail is growing at the rate of 20-25 per cent annually.
 The organized pharmacy retail chain is dominated by 12-15 big

players.
 Total expenditure on health as % of GDP (2009): 15.0
3
Quiz
Retail pharmacy Home company
chains
1.Fortis health world Global Healthline
6
2.Religare wellness Lifetime Healthcare's 4
3.Tulsi Ranbaxy 1
4.Lifeken Morepan's 7
5.Dial for health Zydus Cadilla 5
6.98.4 Future Group 3
7.Life Spring Ranbaxy 2

4
Major players
 Apollo Pharmacy
 Religare Wellness
 Fortis
 MedPlus
 98.4
 Guardian Lifecare Pvt. Ltd
 Medicine Shoppe
5
Modes of Operation
 Company Managed Stores - Major pharmacy chains in India like
Fortis, Apollo, Alchemist, and Dial for Health have their own
pharmacy chains.
 Franchisee - Medicine Shoppe, MedPlus.
6
Apollo Pharmacy
 Apollo Pharmacy, a division of Apollo Hospitals Enterprises Ltd., is India's
first and largest branded pharmacy network, with over 740 plus outlets in key
locations.
 The first Apollo pharmacy opened in Chennai in 1983.
 Apollo Pharmacy is currently operating in 17 states including Andaman & Nicobar
and is expanding to serve customers in more locations in the country.
 Apollo Pharmacy has tied up with ITC E-choupals (Choupal Sagar) and Godrej
Aadhaar to provide quality medicines to rural India.
7
Products
A wide range of
 Pharmacy
 Surgical & disposables
 Anti-cancer, life saving and general healthcare products and

nutritional supplements
8
Markets
Product Markets-Identified with a generic class of
products, e.g,Anti-infectives,Analgesics, Psychotherapeutics,
Vascular agents
Identified with a homogeneous set of customers with

similar needs and characteristics.
Ex: Stage in family life cycle, Geography, Psychological (lifestyle,

personality traits), Consumption patterns
9
Key Market Segments
 How do they determine a segment’s importance?
 Number of contacts with physicians
 Visits to doctor’s office
 Places of contact (hospital, outpatient, home, etc.)
 Gender:
 Women > 50% of the market and growing; significantly greater
proportionate share of prescription drug purchases
 Age:
 The 0-19 and 65+ age groups are greatest proportionate users of
healthcare
 Income:
 The greater the family income level, the more likely to seek medical
care and use prescription drugs
 Lower income brackets do more self-medication and are more likely to
be non-compliant with prescription drug regimens
10
Location and Retail space
 Min space – 10 ft x16 ft , 160 sq.ft
 Some retailers have both retailer and wholesaler licensees
 Air conditioners, Refrigerators, Glass doors, Rolling/sliding doors

made compulsory.
 Retail chains - not necessarily located near hospitals – high floating
of customers
 Unorganized stores – located near hospitals
 Distance between two medical stores in an area – 1.5kms
11
Store merchandising and layout
 Store front and windows attractive & inviting
All signage clear, professional and legible
12
 Merchandise presentation professional & appealing
 Seasonal and high-margin merchandise placed in high profile locations
13
Distribution channel
Pharmaceutical companies
C & F Agents (2-3%)
Distributers (5-6%)
Retailers (12-15%)
14
Drug Stores- Costs
 Inventory- 65%
 Salary and wage costs - vary from store to store12.00%
 Rent - third largest cost (7%) - Pharmacies within shopping
centres could expect higher rents of 10-12% of sales revenue.
 Royalty payments/franchise fees can be up to 5% of sales
15
Customers
 Their customers include a large number of individual consumers
besides leading hospitals and clinics, corporate houses and
Government bodies across the country.
 Data’s of Apollo patients are sent to respective district
branches.
 Deals with nearly 170 customers daily.
16
Innovative Strategies
 ATM card & Chronic cards
 Nurse stations
 Free health insurance
 Free check up coupons/ free health camps
 Reminder service
 24 hours service plus home delivery
17
Thank You
18

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Drug Stores

 Drugstores not only sell medicines, but also miscellaneous items

such as candy, cosmetics, as well as light refreshments.

 The organized pharmacy retail chain is dominated by 12-15 big

7.Life Spring Ranbaxy 2

 Guardian Lifecare Pvt. Ltd

 Company Managed Stores - Major pharmacy chains in India like

 Franchisee - Medicine Shoppe, MedPlus.

 Surgical & disposables

 Anti-cancer, life saving and general healthcare products and

Identified with a homogeneous set of customers with

Ex: Stage in family life cycle, Geography, Psychological (lifestyle,

 Min space – 10 ft x16 ft , 160 sq.ft

 Some retailers have both retailer and wholesaler licensees

 Air conditioners, Refrigerators, Glass doors, Rolling/sliding doors

 Distance between two medical stores in an area – 1.5kms

 Store front and windows attractive & inviting

All signage clear, professional and legible

 Seasonal and high-margin merchandise placed in high profile locations

C & F Agents (2-3%)

 Salary and wage costs - vary from store to store12.00%

 Rent - third largest cost (7%) - Pharmacies within shopping

centres could expect higher rents of 10-12% of sales revenue.

 Royalty payments/franchise fees can be up to 5% of sales

 Their customers include a large number of individual consumers

besides leading hospitals and clinics, corporate houses and

Government bodies across the country.

 Data’s of Apollo patients are sent to respective district

 Deals with nearly 170 customers daily.

 Free health insurance

 Free check up coupons/ free health camps

 24 hours service plus home delivery

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