Project Title

Understanding The Operation Of Retail Pharmacy

By---Arpit Surana
Naveen Trivedi
 Introduction about Retail Pharmacy
Sector:-
 In India, the daily entry of new health and fitness products, as well
as the entry of new insurance companies is amply indicative of
growing awareness of paying more attention to health, fitness and
hygiene as never before.

 The per capita expenditure on pharmacy and health care products

is also poised for a leap; this is also one of the indications for
booming up the retail pharmacy sector.

 This emerging scenario has already taken shape with pharma

companies themselves entering the retail business, thereby getting
the ready margins, while supplying the medicines at a discount.
 RETAIL PHARMACY
 An establishment in which pharmacy is practiced is called a pharmacy
chemists or drug store. These stores commonly sell not only medicines,
but also miscellaneous items such as candy (sweets), cosmetics, and
Well ness products, as well as light refreshments or groceries.

 Pharmacy retail is growing at the rate of 20-25% annually. The

organised pharma retail market size has the potential to grow to $9
billion by the year 2011

 The size of India’s pharmacy retail market is estimated at $4.5 billion,

which is dominated by 12-15 big player

 Companies are now focusing on rural areas and non-metros

S.W.O.T Analysis of Retail Pharmacy
 Strength
 Elimination of spurious drugs

 Prevention of mal practices like creating artificial shortage of drugs

by intermediaries.

 Ready availability of installed capacities with technically

knowledgeable personnel

 Growing acceptance of modern retail formats due to increased

literacy. Liberalization of government policies has encouraged tie-
ups with foreign giants bringing in their invaluable experience,
expertise, and capital
 Weakness
 Due to huge outlay, major share of rural and spread out
population cannot be reached.

 Substantial expenditure in advertising, promotional, and

goodwill activities.

 Fierce competition amongst players in projecting their own

products over others. 

 Due to boost in local sales there may be lesser initiative to

export.
 Opportunities
 Tapping previously ignored segment of urban population in
non-prescription areas.

 Ideal for gauging customer preferences.

 To export to through the tied-up associated foreign company

who have their existing marketing infrastructure.  

 To cement the loose ends in coordination among customer,

doctor, manufacturer and insurer, in terms of mutual business
interests.
 Threats
 High cost of sales and marketing by way of advertising,
promotional activities, incentive schemes (gift vouchers, etc),
and loyalty programs.

 Containment of rising hostility among “Pharma

Manufacturing - Retailing” giants
 CURRENT PLAYERS
The Medicine Shoppe’s “Caring beyond prescriptions”


The Apollo Pharmacy of Apollo hospitals chain


The Global Health line’s 98.4 - “Your Chemists for Life”


Cadila healthcare Ltd (Zydus) Dialforhealth.


RPG Guardian Private Limited’s Health & Glow


SAK CRS’s The Wellbeing Place


DrMorepenLtd’sLifespring


Bangalore based Lifetime Healthcare PvtLtd’sLifeKen


Guardian’s Lifecare
 PLAYERS SET TO ENTER
 Pantaloons: Formerly into garments, tied up with Manipal Cure & Care.

 Reliance Retail: Diversifying from other fields, tied up with Himalaya

Drugs  

 Cipla Pharmaceuticals

 Ranbaxy Laboratories Limited

 Fortis Healthcare and

 Wockhardt Group
INTRODUCTION OF PLANET
HEALTH
 COMPANY PROFILE
 SGI was started in 1956 as Shanker Chemical Works by Mr. J
S Patel, father of Rohit Patel who is M.D.

 The Ahmedabad Management Association (AMA)

adjudged Rohit Patel as the Outstanding Entrepreneur of
the Year for 1997. SGI was also involved in various social
and professional activities including sponsoring a
computer and training centre at AMA that would be run
by IBM.
 WHAT IS PLANET HEALTH
 Planet Health is the subsidiary of Sagar chemicals, it is the
retail store in which all type of medicines i.e. Rx Products as
well as O.T.C (over the Counter) product is sold.

 Planet Health endeavors to procure all medicines and health

related products from genuine sources only.

 Planet Health, even if it means loss of business, does not stock

any product, the supply sources of which may be in doubt.
 INDIA’S LARGEST
 The first of the planet Health’s world class stores occupying
3000 square feet of fully air conditioned, prime space at
Ambawadi in Ahmadabad is India’s largest medicines and
wellness stores of its kind, offering world class customer’s
services never before offered in India

 Planet health, has also added 19 new additional stores in and

around Ahmadabad.
 OPERATING PHILOSOPHY

genuine and properly stored products


health-related merchandise including monitoring devices


multiple products and brands including Ayurvedic products


counselling for shopping


counselling for proper administration of products especially medicines


home delivery


16X7 service


Tie-up with doctors and other paramedical services


Loyalty programme for a long-term relationship.
 STRATEGIES BEFORE ENTERING
 Corporate Philosophy

 Merchandising

 Store Format and Location

 Store Design and Layout

 Promotion
ORGANIZATION CHART
ROLE AS A PLAYER AT
PLANET HEALTH
 RESPONSIBILITIES
 To Get SALES

 Staff Management (week off /Absenteeism

 Personal Grooming

 Suspense Clearance

 Reporting directly to higher management

 Adding new members

 Customer Service
 TASK
 Variance

 Customer Complaint

 Timely execution of Customer Order

 Emailing Weekly Report

 Staff Meeting/ Briefing and with cluster manager

 Know your Competitors

 Feedback Forms to explain customers about COOL & DRY CONCEPT

Types of Product at Planet Health
 PRODUCT CATEGORIES
 Rx – this category consist of all the medicines which required
prescription to purchase it. Under this section different
medicines for fever, cough, diabetes & blood pressure, CNS
dieses, dehydration etc.

 Wellness Product – under this section many categories are

there such as pet care, skin care, baby care, family welfare,
devices, fitness powder, low calorie diet etc.
MATERIAL HANDLING
 MATERIAL HANDLING
 Material handling is the function of moving the right material to the
right place in the right time, in the right amount, in sequence, and
in the right condition to minimize cost.

 The primary goal of material handling

 Maintain or improve product quality, reduce damage of materials 

 Promote safety and improve working conditions 

 Promote productivity

 material should flow in a straight line

 move more material at one time

 Following are the brief information of Material Handling

 Purchase

 Barcode

 Store transfer and indent

 GRN (Goods Receive Note)

 Customer prescription history

 Order booking/home delivery

 Expiry

 Purchase return – expiry/damage

 Audit
 Responsibilities in Material Handling
 To store medicines up to a certain standard and temperature
so that to maintain their expiry dates.

 Regular monthly checking of medicines and OTC products'

expiry dates.

 Maintain the temperature level which is needed by medicines.

 Keeping environment dust free

 COOL & DRY CONCEPT
 The most important concept in retail pharmacy is the storage
condition of Medicines. There is always the specific way to
maintain the medicines at certain temperature.

  At the back side of every medicines’ strip one storage

condition’s quotient is mentioned, that is to maintain
medicines in cool and dry place.
 How Planet Health is Different from other Medical store and Retail Chain

PLANET HEALTH GENERAL MEDICAL STORE

Maintains concept of Cool & Dry. Generally Cool and Dry concept is not
maintained.

Duplication of medicine is not possible. High chances of duplicate medicine.

Expiry dates are checked regularly. Expiry dates are not checked regularly.

Medicines are kept of well-known companies. Medicines are kept of generic companies as
well.
 Store Layout
 A store's exterior and interior design affect its image and profit
potential. The exterior should be attractive and inviting and
should blend with the store's general surroundings.

 It has two significant effects on the consumer behavior &

buying activity

 It determines the appearance of the store

 It limits the way in which customers may negotiate their way

round the store, which affects customer traffic flow/circulation.
 LAYOUT AT PLANET HEALTH
 Grid Layout

 Grid Layout is a type of store layout in which counters and fixtures are
placed in long rows or “runs,” usually at right angles, throughout the store.

 Advantage

 Uses space efficiently

 Low cost
 Customer familiarity & allows more customers
 Merchandise exposure Ease of cleaning
 Simplified security
 Possibility of self-service
Rx Department
 :
CHANGES MADE
 In baby care department the products like baby tooth brush and toothpaste
were on fourth rack, so it was not possible for any kid to reach that product.

 Chocolates were not put in display, which made to put near the billing
counter. This made regular selling of chocolates.

 We had also give suggestion to put the tooth brush with the Colgate paste,
so whenever customer looks the paste also take tooth brushes. As both are
complementary to each other.

 We also recommended that the Jericho and ponds which is premium

product must be displayed on the racks, not inside the shelves; the customer
must see the premium products.
 Evaluation of Layout
 At planet health by putting the products which are new near
the entrance always attracts the customers, which help
increasing the sale.

 By keeping seasonal rack in the all stores that creates ease for
customer to get complimentary products.

 Display of devices are kept near the billing counter, so the

during the time when bills are made customer can have a look
there and that makes customer to buy them some times.
D2D
 DOOR TO DOOR MARKETING

 Explaining about COOL & DRY CONCEPT and converting

non-member into member

 Bring back old customers

 For registration and feedback of CAMPS.

 SHORTFALLS
 Discounts

 Stock availability

 Untrained staff

 Lack of analysis of LOSS SALES

 No awareness in public

 Very less promotion

 Lack of performance appraisal and retention

 RECOMMENDATIONS
 INVENTORY CONTROL

 Empty containers can be used for display purpose of costly items, rather
than having huge stock of a product. This will reduce the inventory cost.
For example: PROTEIN POWDER

 I have observed that stock level is not maintained in many items.

For example: Corcin suspension.

Min level : 1
Max level : 2
Present Stock : 7
 RECOMMENDATIONS (Cntd…)
 Awareness

 Pamphlets of description about PLANET HEALTH should be given out

through newspapers (Local /English)

 Camps are successful. More such camps should be done in neighborhood

of store.

 By Camps, people also come to know about COOL & DRY concept along
with knowledge of genuine products.
 RECOMMENDATIONS (Cntd…)
 Discounts

 I visited many medical stores personally.

 10% discount is very normal.

 Our discounts should start from first purchase and not from
2000 points.

 At least 5% discount should be given to all customers .

 Continue.
 Pet Range

 Many times group of people order pet food in bulk.

 They get special discounts like 22% in Eukanuba and Royal Canin

 Both these products are costly, so we cant afford to loose such customers.

 They should be contacted in person and we should be giving them special

discounts too.
 Continue..
 Franchise

 Proper training to staff

 cumulative discount
 Continue..
 There must be rank – order to some product or medicine
according to demand such that which product :-

Should never be out of stock (First Aid Box)

Should be allowed to be out of stock occasionally.

Should be deleted from the stock selection.

 Continue..
 promotion

 I observed that there is less promotion of our store; we can

promote our self as an expert by writing articles or tips on
topics related to pharmacy retail store and Submit to the local
newspaper, trade journal or other publications.

 We can give T-shirt of planet health logo in it

 Continue..
 We can also give award to our Employee

 Before organizing camp in the society, we have to analysis the

income level of society and then according to it we can have
micro selling of our product.

 Choose a regular customer to spotlight as a Customer of the

Month.
 Continue..
 There are some items whose price has been decrease like Axe
effect but we have old stock of that product, we can pair up
these products with some other slow moving product and
repackage as a special buy.

 We cans start online booking order.

 CONCLUSION
 According to our observation at planet health:- The retail sector is
going to boom in upcoming years the reason is –

"There has been an upward swing in personal expenditure on

healthcare. The Indian consumer is getting more and more concerned
about his health, and retail would help provide the consumer with
greater choice.”

“As a assistant manager, over the store, we learn the real management,
which include pressure, customer behavior, material handling,
Reporting, how to maintain co-ordination and many more things”.
 BIBILOGRAPHY
• Vikalpa Magazine

• Planet Health Brochure