The Discount Pharmacy
The Discount Pharmacy is a brick and mortar and mail order pharmacy that sells prescription medication at lower prices than other pharmacies. The Discount Pharmacy is able to sell at reduced prices through the use of operating efficiencies and the elimination of unnecessary services for customers that self pay their drugs. The Discount Pharmacy does not accept insurance payments which disrupt the cash flow. By having a larger percentage of their business serviced by their mail order arm, The Discount Pharmacy is able to gain economies of scale by selling larger quantities of drugs with less labor required per order. As more and more Americans are on a continuous prescription to medicine, this trend will lend itself to rapid growth as customers can mail order larger quantities of drugs that they will need over time. Additionally, many insurance companies offer an economic incentive for medicine to be purchased mail order in quantity, saving the insurance company money. This factor will also help boost The Discount Pharmacy to profitability. The Pharmacy will increase its market share through targeted advertising to increase the number customers who are looking to save money on a pricey, necessary expense.
Pharmacy Marketing Plan
The Discount Pharmacy
The Discount Pharmacy is in the first year of business as a start-up operation. The Pharmacy believes that the market demand for their services will be great and are convinced that a cohesive marketing strategy is required for The Pharmacy. The Pharmacy offers a wide range of prescription medicine for pick up at their store front or it can be distributed by mail order. The Pharmacy's prices are far better than most pharmacies so their services will be attractive for people that just need to buy their medicine at good prices and do not need their hands held during the process. Market Summary
The Discount Pharmacy posesses good information regarding their market and the target segments that they wish to serve. The Pharmacy will leverage this information to better understand who is served, their specific needs, and how The Pharmacy can better serve them.
The Discount Pharmacy is providing the market with a source of discounted drugs. This market need is important as many Americans are faced with the dilemma of using their limited income on food or meds. The Discount Pharmacy seeks to fulfill the following benefits that are important to their customers. * Selection: The Pharmacy offers a wide range of medication, both originals as well as generic alternatives. * Accessibility: Products are distributed through their conveniently-located store front, or can be shipped within the U.S. * Customer service: The Pharmacy recognizes the value of having outstanding customer service. By exceeding all of the customer's expectations, they are ensuring repeat customers and many referrals. * Pricing: The Discount Pharmacy's prices will be noticeably better than local pharmacies. Market Trends
The market trend for pharmacies reinforces consolidation. The whole medical industry (including doctors, pharmaceutical companies) has pressure being applied to them from different sides to achieve cost efficiencies and to decrease the cost of the various products/services. Looking specifically at pharmacies, over the last eight years, there has been widespread consolidation, done to a large degree to achieve costs efficiencies. Now insurance companies are adding pressure to decrease costs since they are a main party in the payment for meds. The Discount Pharmacy is able to coexist in this consolidation environment by achieving cost efficiencies through their unique business model of mail order service and a decrease in the normal pharmacist offered services.
In 2000, the global pharmaceutical industry as a whole was a $897 billion dollar...