Identifying growth levers for offline retail and online sales for pharmacies

• 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

• 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

• 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