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Retail Marketing
Project Report
Comparative Study of Organized and Unorganized Pharma Retail Stores in
Ahmedabad
Table of Contents
1) Industry Overview 3
2) Sector Overview....3
3) Rationale... 5
4) Objectives .5
5) Methodology.5
6) Organized Stores...6
Apollo Pharmacy...6
Planet Health 13
Frank Ross ....20
7) Unorganized Stores...25
Nootan Medical.25
Aagasya Medical...27
8) Comparision of Organized and Unorganized Pharma Store......29
9) Beneficiary30
10) Conclusion30
11) References.31
Industry Overview
India is the fifth largest retail destination globally. The Indian retail industry has experienced
tremendous growth over the last decade with a significant shift towards organized retailing format
and development taking place not just in major cities and metros, but also in Tier II and Tier III
cities. The overall retail market in India is likely to reach Rs 47 trillion (US$ 792.84 billion) by FY
17.
Sector Overview
Market Overview:
According to Netscribes latest market research report, there has been a changing role of
pharmacy retail outlets and their gradual shift towards organized format.
There are about 8, 00,000 retail outlets with 60,000 distributors, out of which organized
outlets are only 20-30 %. Most organized players operate regionally.
However, with entry of branded Pharma retail chains and recent govt. decision to liberalize
FDI in retail in India will open doors for many international players to set up pharmacy retail
chains via different business models including franchising.
Growth Drivers:
Attractive margins
Challenges:
Although the pharmacy sector in India is highly regulated, yet it tends to suffer from the
circulation of sub-standard and counterfeit drugs that hampers the retail segment of the
business. Measures are being taken by the pharmacy regulatory bodies to control the threat as
it drastically hampers revenue generation.
The government is also taking major initiatives to provide medicines at subsidized rates.
As there is long Pharma distribution and supply chain, the govt. is encouraging teleconsultation services and distribution of medicines in the rural belt.
Trends:
Loyalty Schemes
Rural Expansion
Rationale
The reason for undertaking this project is to study the scope of retail pharmacy in India as
there is tremendous growth in the pharmaceutical market. Also, to understand the retail mix
of pharmaceutical stores with the difference between the organized and unorganized retail
formats.
Objectives
Methodology
In this project, I have visited to both organized and unorganized retail stores in Ahmedabad
and collected the primary data. The primary data was collected from store in-charge on the
basis of various parameters of retail mix. Also, collected some secondary data from web.
Using the collected data, I have made comparison of both organized and unorganized formats
of pharmaceutical stores.
Software
Functions of software
Billing
Management of every detail obtained from Membership card
Monthly reminders to customer
Indent (reorder of stock with best supplier management)
Monitoring of cash and stock handling
Expiry management
Check on fast and slow moving items
Audit Team of about 5 people come to the store every year and check the store
variation by comparing the stock shown in the computer with the physical stock and
stock on paper
6
Drug classification
Salary structure freshers are paid around 6,500 8,000/month with increment every
year
For males Apollo labeled blue shirt and black formal pent
Tool for increasing repeat purchase membership card as it offers discount of 10% on
medicines and 5% on consumer goods on your previous purchase
Categories of Products
Pharmaceuticals
Wellness goods
Consumer goods
The stores are located in residential areas with many high-rise buildings in the
trading area
The target customers of the store are the educated middle and upper class
households
The trading area is expected to be about one kilometer radius from the location of
the store without prominent visibility and parking spaces.
All Apollo stores across the country have same identity at all branches (green
color).
7
Arrangement of Products
Drugs alphabetically
Products Handling
Soap
Oil
Baby product
Profit Margin
FMCG about 5%
Promotions
Loyalty program
24-hour service
8
Newsletter online
Rent Rs 25,000
Footfall/day 80
MR visits/day 1 to 2
On RHS, first private brand category followed by men care category of products
On LHS, first Baby care category followed by skincare and women care category
of products
10
11
Footfall/day 30
MR visits/day 0
Managing Category
Profit margin
Medicines about 20%
FMCG about 5%
Private brand about 15%
12
Planet Health
Software
Functions of software
Billing
Management of every detail obtained from Membership card
Monthly reminders to customer
Indent (reorder of stock with best supplier management)
Monitoring of cash and stock handling
Expiry management
Check on fast and slow moving items
13
Merchandize Mix
Type of product categories
Pharmaceuticals
Wellness goods
Consumer goods
Healthcare products
Pain relief
Cough and cold
Stomach remedies
Diabetes management
First-aid
Anti-allergens and sinks
Anti-smoking
Bandages and supports
Accessories
Diapers and bath needs
Food and formula
Health remedies
14
Nutritional products
Hosiery
Personal gymnasium equipment
Ayurvedic preparations
Homeopathic preparations
Herbal products
The stores are located in residential areas with many high-rise buildings in the
trading area
The target customers of the store are the educated middle and upper class
households
The trading area is expected to be about one kilometer radius from the location of
the store with prominent visibility and enough parking spaces.
15
The design is based on building trust among the shoppers through purity,
transparency, and openness and provides a full view of the store to passers-by, a
complete view of the layout to the customer at entry.
The store looks rich, spacious, good lighting, cooling and elegant without being
opulent like a life-style store.
Arrangement of products
Drugs alphabetically
Promotions
Schemes on Festivals
Membership Program
MR visits/day 1 to 2
Display of Products
Availability of Pet Care Products on shelves beside the middle lane, just near to
the entrance
Product Handling
Expired Products
Medicine removed from the shelf 1month before expiry
Wellness removed from the shelf 2month before expiry
Promotions
Membership Program
On RHS, poster of health devices was kept which mentioned the following
devices :
Blood pressure meter
Glucometer
17
Weighing scale
Thermometer
Nebulizer
Cooling and Warming Pads
Walking sticks
Wheel Chairs
Managing Category
Profit Margin
Medicine 30-33%
Wellness products more than 20%
18
19
Frank Ross
Software
Functions of software
Billing
Management of every detail obtained from Membership card
Monthly reminders to customer
Indent (reorder of stock with best supplier management)
Monitoring of cash and stock handling
Expiry management
Check on fast and slow moving items
Pharmaceuticals
Consumer goods
Surgicals
Merchandize medicines, cosmetics, surgical items, health food, baby food, oral care,
skin care, ayurvedic products
The stores are located in residential areas with many high-rise buildings in the
trading area
The target customers of the store are the educated middle and upper class
households
20
The trading area is expected to be about one kilometer radius from the location of
the store with prominent visibility but not parking spaces.
Online purchase option not available but going to start soon. Already started in
Kolkata
Tool for increasing repeat purchase membership card as it offers discount of 10 to 17%
21
Seasonal Sales sales of syrup and antibiotics are very high in rainy season
Products Handling
Expired Product
Medicine removed from the shelf 3 months before expiry
Cosmetics removed from the shelf 2 months before expiry
Arrangement of products
Drugs alphabetically
Promotions
Membership Program
22
23
24
Unorganized Stores
Nootan Medical
Number of employee 1
Footfall 200/day
MR visits/day 2 to 3
No computerized system
Products Handling
Expiry Product Handling for Medicines removed 1month before the expiry
Arrangement of products
Medicines alphabetically
No Home delivery
No warehouse
No promotion
25
26
Aagasya Medicals
Number of employee 1
Footfall 50/day
No computerized system
Product Handling
Expiry product
Medicines removed 15days before the expiry
Consumer goods removed 15days before the expiry
Arrangement of products
Medicines alphabetically
MR visits/day 3 to 4
No Home delivery
No promotion
27
28
Organized Stores
Unorganized Stores
Footfall is high
Footfall is low
No computerized system
software)
Type of reordering stock is automatic
No Home delivery
No promotion
More assortments
Less assortments
29
Beneficiary
Global pharmaceutical retail chains that are looking into Indian market for expansion
Indian pharmacy chains that are planning to metamorphose their processes using technology
Indian consumers who are not aware of the differences between organized and unorganized
stores
Conclusion
From the project, it is concluded that organized stores are more preferable to unorganized due to
technology used with fair billing of products, high assortments provided and promotional offers
given to the customers. Also, they are getting noticed more nowadays with the awareness of its
benefits to the consumers.
30
References
http://www.ibef.org/industry/retail-india.aspx
http://www.researchonindia.com/pharmacy-retail-market-in-india-2014.html
http://www.franchiseindia.com/articles/franchise-insights/franchise-trends/Flight-ofPharma-retail-from-unorganised-to-organised-598/#.U9c-rEBG3IU
http://www.apollopharmacy.in/loyalty
http://apolloahd.com/apollo_pharmacy.php
www.planethealth.com
www.frankross.com
31