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Building BRUNET Brand The Future Growth Strategy Dusseldorf Consultants: • Sarah, Sezgin, Svenja, Vitus Presen;ng To: • Victoria Cruz, Director of Sales and Marke;ng for brunet Pharmacies Dusseldorf Consultants Recommenda<on Concentrate on your brand image! Differen;ate from compe;tors in Quebec over more personalized services and up to date health care services 11/25/2012 2 Agenda Mandate Analysis • Business • Bench Mark Alterna;ves • Loca;on • Service Implementa;on • Ac;on Plan • Risks and Con;ngencies Situa;on Strategy Implementa;on Mandate Customer Reten;on How To Ensure Customer Loyalty? How To Generate Higher Return Rates? How To Differen;ate From Compe;tors? Profit How To Increase Revenues? How To Deal With The Correla;on With Opera;ng Costs and Price? How To Build A Strong Brand Posi;on To Ensure Future Growth and Differen;a;on? Agenda Mandate Analysis • Business • Bench Mark Alterna;ves • Loca;on • Service Implementa;on • Ac;on Plan • Risks and Con;ngencies Challenges to overcome Legal • AQPP, price based on opera;ng costs Decreasing profits Customer loyalty Fierce compe;;on and arrival of Target Situa;on Strategy Implementa;on Compe<<on is increasingly on business and communica<on levels • Medica;on • General Use Items • Other Pharmacies • Retail giants • Cosme;c stores • Online shops Ø Differen6a6ng elements are essen6al Situa;on Strategy Implementa;on Dusseldorf Consultants Size of Compe<tors 400 369 350 359 294 300 250 225 200 175 176 Pharmaprix Brunet 150 152 100 50 0 Jean Coutu Uniprix Familiprix Proxim Others Ø Fragmented market! 11/25/2012 8 The Structure Behind The Brunet Group METRO Inc. McMahon Distributeur Inc. BRUNET Plus Pharmacies Situa;on BRUNET Group Clini Plus Brand BRUNET Clinique Pharmacies BRUNET Pharmacies Strategy Implementa;on The BRUNET Group B Plus Pharmacies B Clinique • Since 2009 • Larger Sales Areas • Products • Laboratory Services • Personalized Advice • Natural Health • Since 2010 • Products • Professional Services • Laboratory Services • Personalized Advice Situa;on Strategy B Pharmacies • Core Business Since 150 Years Implementa;on Brunet Service • MaSante for the customers to beeer manage their health Marke;ng • Health-­‐Conscious brand • Younger and more modern image Mission • Personalized health advice and service Core Values • Passion for the profession • Constant concern for the customer Situa;on Strategy Implementa;on Benchmarking analysis Jean Coutu Uniprix Core Values Mission • • • Plans • • • Marke;ng • Accesibility, courtesy, aeen;veness Marke;ng performance Employee Sa;sfac;on Digital Media • Offering aeen;ve and personalized service Leverage new technologies Developing App Social Media • • • • Health Vision Accesibility Familiprix Proxim Health Acces Pharma (Walmart) • • Standardized customer service TV campaign, humour Aeroplan Proximity Mens products Master Card Online Shop Situa;on Strategy Target Aging popula;on Lack of ;me Its in our nature to care for you Humour Compe;;v AirMiles e advantage Services Pharmaprix Proximity • Delivery service • Online price Implementa;on comparison • • • Outstanding value Innova;on excep;onell shopping experience Dusseldorf Consultants Financial Background of METRO INC. USD bn 14 12 10 8 6 4 2 0 USD bn 6% CAGR 3% 3% 4% 3% Equity, 2.5 CAGR 12% 11.3 0.39 11.4 0.39 2010 2011 Sales Net Earnings 4% 12 Total Assets, 0.49 5.2 2012 Profitability 2% 0% Equity Ra;o: 48% Ø Growing Profitability And Revenues Ø Healthy Equity Ra6o 11/25/2012 Situa;on Strategy Implementa;on 13 Dusseldorf Consultants Highly Compe<<ve Market • Plunge in Gross Margin • In 40 years • Increase in Salary • In 5 years 11/25/2012 Situa;on % 1 . 2 +2 Strategy Implementa;on 14 Current issues can be tackled on the strategic and on the opera<onal Level! Strategic level • How the ensure growth of brand by new stores? Opera;onal level • Adjus;ng services Situa;on Strategy Implementa;on Important weighed criteria for decision-­‐making! Sales Poten;al, 20% Loyalty, 30% Cost, 20% Criteria Descrip6on Loyalty Customer rela;onship Customer reten;on Reputa;on Core Business Strengths Service Cost Running cost Investment costs Poten6al Market size Compe;tor Core Business, 30% Ø Evaluate possible loca6on alterna6ves with those criteria! Situa;on Strategy Implementa;on Possible loca<ons evaluated with important criteria! Quebec Canada ◑ ◑ ◑ ◑ Loyalty Core Business Cost Poten;al Ø Situa;on Strategy Implementa;on Possible loca<ons evaluated with important criteria! Quebec Canada ◑ ◑ ◑ ◑ Loyalty Core Business ◕ Cost Poten;al Ø Staying in Quebec would fit best to the Company regarding the strategic direc6on! Situa;on Strategy Implementa;on Op<ons regarding staying in Quebec in order to increase brand awareness Invest in a new store Invest in an exis;ng store No new stores Situa;on Strategy Implementa;on Important weighed criteria for decision-­‐making in opera<onal level! Sales Proximity, 15% Market satura;on, 25% Cost, 15% Risk, 25% Proximity Cost Brand awareness, 20% Brand awareness Risk Market satura;on Ø Evaluate possible loca6on alterna6ves with those criteria! Situa;on Strategy Implementa;on Should we invest in stores? New stores Proximity Exis6ng stores No stores ◑ ◑ Cost Brand ◑ Risk Market satura;on Situa;on Strategy Implementa;on No need for any further stores! New stores Proximity Exis6ng stores No stores ◑ ◑ Cost Brand ◑ Risk Market satura;on Situa;on Strategy Implementa;on The growing of the brand is up to the opera<onal level! New stores Proximity Exis6ng stores No stores ◑ ◑ Cost Brand ◑ Risk Market satura;on Situa;on Strategy Implementa;on Current issues can be tackled on the strategic and on the opera<onal Level! Strategic level • How the ensure growth of brand by new stores? Opera;onal level • Adjus;ng services Situa;on Strategy Implementa;on Op<ons in the opera<onal level! Delivering Service in stores Partnerships Social media Situa;on Strategy Implementa;on Possible opera<onal op<on evaluated with important criteria! delivering Service in stores Partnerships Social Media ◑ ◑ ◑ ◑ ◑ ◑ Knowledge of pa;ent Quality of advice Personalized service Situa;on Strategy Implementa;on Social Media would not fit to the company strategy! delivering Service in stores Partnerships Social Media ◑ ◑ ◑ ◑ ◑ ◑ Knowledge of pa;ent Quality of advice Personalized service Situa;on Strategy Implementa;on Personalized services would lead to more customer! delivering Service in stores Partnerships Social Media ◑ ◑ ◑ ◑ ◑ ◑ Knowledge of pa;ent Quality of advice Personalized service Situa;on Strategy Implementa;on Agenda Mandate Analysis • Business • Bench Mark Alterna;ves • Loca;on • Service Implementa;on • Ac;on Plan • Risks and Con;ngencies Situa;on Strategy Implementa;on Dusseldorf Consultants Implementa<on Plan Successful Evolu;on Of The BRUNET Brand Profit Customer Rela;ons 11/25/2012 Situa;on Strategy Implementa;on 30 Dusseldorf Consultants Remind The Choosing Criteria For Customers Personalized Services Proximity Knowledge Of Pa;ents Records Quick Service Quality Of Advice 11/25/2012 Situa;on Strategy Implementa;on 31 Dusseldorf Consultants Develop A Delivery Service… Personal Delivery Service Reach 1000s Of Customers • 300 Messengers • Nego;ate With Delivery Service Companys • Ordered Online • Source also ‘Ma Sante’ Ø …To Offer Personalized And Quick Service 11/25/2012 Situa;on Strategy Implementa;on 32 Dusseldorf Consultants How To Improve The Service In Stores Membership Card • Recognize Customers • Load Personal Data Within Seconds • Fulfill Requirements Of Pharmacy Act More Easily • Increase Customer Reten;on • Get A Bigger Customer Base Ø Launch A Membership Card To Quickly Accsess Informa6on And Offer Personalized Advice 11/25/2012 Situa;on Strategy Implementa;on 33 Dusseldorf Consultants How To Improve The Service In Stores Specialized Health Care Trainings • First Aid Advice • Drug and Addic;on Advice Employee Training • No High Addi;onal Costs • 1 Person for 3 Pharmacies • 2 Days in Each Pharmacy 11/25/2012 Situa;on Strategy Implementa;on 34 Dusseldorf Consultants Immediately Sign Up For Bill 41 Stay Always Up To Date Sign Up For Theore;cal Trainings for about 600 Pharmacists Communicate On Website And Store For Customer Ø Implement Bill 41 System To Offer Customer The Eagerly Awaited Inhouse Advice 11/25/2012 Situa;on Strategy Implementa;on 35 Dusseldorf Consultants Close Partnerships With Health-­‐Ins<tu<ons Den;st Advice in Schools • Conduct Seminars in Middle Schools Sports Center • 1 free training for first use of delivery service • Therefore posi;on prospects for the coopera;on partner Healthy Restaurants • 10% discount for a meal • For first delivery service Or Membership Card Ø Increase Costumer Reten6on 11/25/2012 Situa;on Strategy Implementa;on 36 Dusseldorf Consultants Undermine All Steps With A strong Online Marke<ng Campaign Use Your Exis;ng Marke;ng Channels To Communicate Your Ac;ons 11/25/2012 Situa;on Strategy Implementa;on 37 Dusseldorf Consultants Cost Structure New • 60 Employees • USD 70T Average Salary Total annual • USD 4.2mn costs 11/25/2012 Situa;on Strategy Implementa;on 38 Dusseldorf Consultants Impact Of New Staff Tasks Renew Prescrip;on Costumer Reten6on Opera;ng Costs Prescribe Drugs Service Price First Aid Advice Drug and Addic;on Advice Ø Increase In Opera6ng Costs Is Necessary To Increase Costumer Reten6on 11/25/2012 Situa;on Strategy Implementa;on 39 Dusseldorf Consultants Risks & Con<ngencies Impact Costumer Reten;on Fails Brand iden;ty Too Low Further Compe;tors Bill 41 Probability 11/25/2012 Situa;on Strategy Implementa;on 40 Dusseldorf Consultants Ac<on Plan Within 6 months Within 1 years 3 -­‐ 5 years Target Posi;on Brunet as Personal Service Leader Launch membership card Theore;cal training for BILL 41 Nego;ate with delivery service companies Hire addi;onal 60 employees Employee training 11/25/2012 Situa;on Strategy Implementa;on 41 Dusseldorf Consultants Thank You! 11/25/2012 Situa;on Strategy Implementa;on 42
