Pharma and Life sciences
Identifying growth levers for offline retail and online sales for pharmacies
15 Apr 2020
  • Client Description: A leading omni-channel pharmacy player
  • Opportunity: The client wanted to benchmark its operations and revenue across the sector to understand key relative strengths and weaknesses. This study was to be conducted across both online and offline retail channels to identify areas which could be improved upon for larger revenue, efficiency, and brand recognition
Our Approach
  • Conducted over 30 mystery store visits for client and competition stores to benchmark retail experience for leading players
  • Conducted over 20 primary calls with experts, current practitioners and customers to benchmark online transaction journey for client against competition platforms
  • Estimated client’s current market share and CAGR over 5 years; analyzed unit economics for retail and online channels and identified locations with high SPSF (Sales Per Square Foot)
  • Analysed revenue split by drug type (acute, chronic & FMCG) for online and retail channels and conducted primary calls to understand customer needs & preferences 

Key Insights / Outcomes

Client to improve physical elements like hygiene / cleanliness, product arrangement & store frontages for retail stores

Client needed to improve on search methodology and algorithms

With respect to competition, client fared well in order placement, packaging attractiveness and customer support

3 archetypes of online pharmacy customers – experience seekers, young convenience seekers & chronic discount seekers

Praxis Value Delivered
  • Estimated client’s market share and projected CAGR for FY18-24 driven by accelerated store addition and retail and online experience
  • Estimated the threat of heavy competitive discounts on large medicine fills on client’s revenue and gross profit 
  • Store-level profit similar in large and small stores indicative of cost mindset in store selection by customers
  • Created a proprietary toolkit to effectively benchmark a pharmacy player’s performance in online and retail stores
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