Medical Devices: Pharmacies/Retail

| 24 minutes

Overview

Pharmacies are a major distribution channel for the AdvaCare Pharma medical device product range, but perhaps less than the hospital/clinic channel depending on the distributor. There are 2 simple reasons for this:

1. The Hospital/Clinic channel consumes ~70-80% of our product range, while the pharmacy/retail channel consumes ~50-60% of our product range.
2. Hospitals are less numerous than pharmacies, but consume a far larger volume of class I and II medical devices.

Pharmacies depend on consumers to choose from several brands of the same product and sell one or a few units of each product at a time, opposed to a hospital in which patients do not choose the brand or product (no competition) and a doctor, nurse or other staff will use a high quantity of the same product on a daily basis usually providing care to hundreds of patients. Also, pharmacies do not consume as wide a range of medical devices as the hospital/clinic channel given that many medical devices are specific for procedures that are only conducted by healthcare professionals in a hospital or clinic.

However, the pharmacy channel is still our second largest channel for medical devices and our strength in marketing, promotions and product packaging allow us to have a distinct advantage compared to competitor brands. AdvaCare Pharma is especially well positioned to fill the needs of most pharmacies given our very wide range of >500 medical devices across 5 product divisions.

Our distributors will approach pharmacies and attempt to convince the key decision maker, usually the pharmacy owner, to accept AdvaCare Pharma products. Therefore, the distributor needs to know how to present AdvaCare and the advantages of our medical device products, especially given that pharmacies are a retail channel and the consumer has a choice in which brands to purchase. It is in our interest that our distributors successfully convince the pharmacy that our products can be trusted, so in addition to the price offered by our distributor, credibility of our brands is an equally important deciding factor.

Product Range: Which products apply to this channel and why?

Roughly 40-50% of our medical device range is positioned for the pharmacy and retail channel. While a larger percentage of our range is positioned for the hospital channel, many of the products cross over to both, and some are only for the pharmacy and retail channel. For example, products such as face masks and colostomy bags will be used in both hospitals and sold in pharmacies, whereas pregnancy tests and blood glucose monitors will be sold only in pharmacies and other retail stores.

Note: Pharmacies can be a stand-alone point of sale (store) or can also be inside a hospital. It is important to understand that hospitals don’t sell any products, rather doing so through the pharmacy (retail channel) located inside the hospital - do not confuse the two.

The following medical device divisions and product categories in each division are distributed through the hospital and clinics channel:

MEDICAL DEVICES IN THE PHARMACY CHANNEL

AccuPoint

Injection Instruments

  • Injection instruments and devices are mostly specific for the hospital channel. Pharmacies would not be selling many of the products in this range.
  • Generally low value and low price point per unit, can be difficult to compete based on price.
  • ~10% of this product range is sold in the pharmacy channel.

Injection & Precision

  • Class II medical devices that are invasive injecting medications, withdraw blood or perform incisions including syringes, needles, blood collection bags, scalpels, etc.
  • Syringes, specifically insulin syringes, would be sold in pharmacies. Other syringes might also be sold in pharmacies, but depends on regulations of country.
  • Generally low value, low priced disposable devices might be difficult for distributors to purchase for the pharmacy channel unless their distribution network is large.

IV Infusion

  • Class II medical devices that are invasive, used in the veins for drug delivery and blood sampling including infusion sets, IV cannulas, scalp vein sets, guidewires, etc.
  • Only for hospital use, not sold in pharmacies.

Blood Transfusion

  • Class II medical devices that are invasive and used for blood collection, storage and filtration, including blood collection bags, blood collection sets, hemodialysis products, etc.
  • Only for hospital use, not sold in pharmacies.

Enteral Feeding

  • Class II medical devices that are invasive and used for supplying and storing nutrients for direct delivery into the gastrointestinal tract, including enteral feeding sets and EVA infusion bags.
  • Often only for hospital use, but can be sold in pharmacies depending on country regulations. However, sales volume would be low.

AccuQuik

Diagnostic Detection

  • Diagnostic devices are widely sold through the pharmacy and lab channels.
  • Diagnostic products are well suited for future growth, even though our products are low-tech and meant to be fast, convenient and inexpensive, the diagnostics industry will see growth given technology will make telemedicine more and more common, eventually reaching developing markets as well.
  • ~50% of this product range is sold in the pharmacy channel, mostly being rapid tests and portable devices.

Rapid Test Kits

  • Rapid test kits are class I and II medical devices that are simple yet effective and inexpensive for testing for infectious diseases, drugs and other medical conditions by blood, urine, saliva or other sampling methods.
  • As these tests have a margin for error, they are often used for screening purposes opposed to an absolute diagnosis for which other more comprehensive testing will be used.
  • Given ease of use and inexpensive, rapid tests are sold at pharmacies for possible testing on the premises or at home, depending on regulations of country.
  • Rapid test kits are generally low value, but margins are generally good and branding is effective as test kits have strong brand recognition.

Portable Devices

  • Portable devices are class II medical devices that are small, portable electronic devices that test for blood sugar, blood pressure pressure, pulse or other basic diagnostics.
  • Often the devices are reusable, but will use a specimen strip for some products that have to be reordered.
  • Made to be convenient and easy to use, well positioned for pharmacy channel as these are for home use.

Diagnostic Supplies

  • Diagnostic supplies are mostly class II medical devices that are disposable and used for specimen collection and testing, including blood collection tubes, urine & stool specimen cups, vaginal speculums, etc.
  • Mostly for use in labs in hospitals, but might be sold in some pharmacies depending on the regulations of country.

StaySafe

Medical Disposables

  • Medical disposables include PPE, anesthesia equipment and other products that are not positioned for pharmacies and more commonly used in hospitals for patient care and surgical procedures.
  • Medical disposables are used in high volume and disposed of readily.
  • 30% of this product range is used in hospitals and clinics.

Protective Equipment (PPE)

  • Some PPE products can be class I medical devices, but other products are not classified as medical devices but rather as personal protection.
  • Exam gloves, caps, face masks and other body protection equipment are often sold in pharmacies, and although used on a daily basis, sales volumes will be less than hospitals.

Anesthesia Equipment

  • Anesthesia and respiratory equipment are both class I and II medical devices including different types of respiratory masks and tubing.
  • Mostly for use in hospitals, but some products might be sold in some pharmacies depending on the regulations of country.

Biohazard & Waste

  • Class I medical devices for disposal of waste includes biohazard bags, vomit bags and waste containers.
  • Sold in pharmacy channel, but perhaps lower sales volumes than hospital channel.

Condoms

  • Condoms are a class I medical device including both male and female condoms, as well as lubricant which is a personal care or sexual wellness product.
  • Large brands dominate this product sector, making it difficult to enter new markets. Brand awareness is very important as most new brands do not succeed.
  • Only sold in pharmacies and other retail stores.

StayGuard

Skin & Wound Care

  • Our largest medical device division includes a very wide range of products spanning wound care, disinfectants, first aid and orthopedics.
  • Products include disposable, reusable and also invasive medical devices.
  • ~80% of this product range is sold in the pharmacy and retail channel.

Wound Dressings

  • Class I medical devices that are non-evasive and used for minor to moderate wound treatment, including various kinds of bandages, dressings and swabs.
  • Dressings can be used to apply medications or to protect the area where applied by forming a barrier between the wound and environment.
  • Generally low value, dressings will be frequently disposed of after use while bandages are used in less frequency given that application can be used for days before being changed for a new bandage.
  • Readily sold in pharmacies and some products in other retail stores.

Wound Closure

  • Class II medical devices that are invasive and used to close wounds, including surgical sutures, skin staplers and wound drainage systems.
  • This range used only in hospitals, except for butterfly closure bandages which can be sold in pharmacies and retail stores.

Medical Tapes

  • Adhesive tapes are class I medical devices that adhere to the skin, usually holding in place another device.
  • Transdermal patches including anti-smoking, male enhancement and mosquito repellent patches, are not classified as medical devices but rather supplement or cosmetic depending on the country.
  • Medical tapes are often available in pharmacies but lower sales volume than hospitals. However, transdermal patches are personal care products for pharmacy channel.

Disinfectants

  • Disinfectants are generally not considered medical devices, but rather biocidal products. But these products are widely sold in pharmacies.
  • Baby and body wipes, and disinfectants including antiseptic, antibacterial wipes, pads and sprays are sold in pharmacies.

First Aid

  • First Aid Kits are not medical devices, but many of the contents included in the kit are medical devices.
  • First Aid Kits can vary in size, more simple kits including >20 items, and other more complete kits can include over 150 items.
  • Transdermal patches are also included in the first aid sub-category including various hot and cold patches and pain relief patches.
  • First aid products and transdermal patches are positioned for pharmacy channel.

Orthopedics

  • Class I medical devices include orthopedic braces, supports, elastic bandages, splints, etc.
  • Most supports, braces and orthoses are reusable, and worn by patients for longer term.
  • Most braces, orthoses and splints are for more serious injuries, whereas supports are usually for less serious injuries. Both are sold in pharmacies, especially supports and some splints and braces that are for less serious injuries.
  • Elastic bandages are the only products in this range that are lower value and disposable, and well positioned for pharmacy channel.

StayDry

Incontinence & Urology

  • Our smallest range of medical devices includes class I, II and personal care products.
  • Most incontinence and urology products are disposable and high volume.
  • ~70-80% of this product range is sold in the pharmacy channel.

Incontinence

  • Incontinence products include class I medical devices and personal care products such as diapers, sanitary pads, under pads, disposable bedsheets and exam table paper.
  • Personal care products such as diapers, sanitary pads, maternity pads are positioned for pharmacies and retail channels.

Urology

  • Urology products are class II medical devices including colostomy bags, urinary bags, catheters for urology, etc.
  • This range is well positioned for hospital use, but also sold in pharmacies for at home use and patient care.

Target Audience

B2B: Primary Target Audience

As pharmacies cannot purchase large volumes of medical devices and personal care products to meet our MOQ per product, they will purchase through domestic distributors.

See:

Distribution Channels: An Overview > Pharmacies/Retail Stores > Why don’t pharmacies buy directly from AdvaCare?

These distributors are our customers, the direct purchasers of our medical device products, and therefore our primary target audience.

See:

Distribution Channels: An Overview > Distributors

B2B: Secondary Target Audience

Pharmacies

The pharmacies that our distributors sell our medical devices and personal care products to are the secondary target audience - a later stage in the supply chain. The procurement manager, general manager and/or owner of the pharmacy are the decision makers that decide the vendors and orders based on product prices, availability, quality and relationship with the distributor. Prices are especially important given that pharmacies are retail and the point of sale. As the purchasing power of a single pharmacy is comparatively small, compared to a hospital/clinic, the quantities purchased will usually be smaller unless the pharmacy has more than one location or is a chain.

It is important to know the different types of pharmacies to understand this target audience and how medical devices fit into this channel.

See:

Distribution Channels: An Overview > Pharmacies/Retail Stores > Types of Pharmacies

Strong brand awareness and product promotional materials are very important for pharmacies as these are retail points of sale. Consumers that go to a pharmacy are often going to buy a specific product for a health need, unlike another type of retail store in which consumer just browse. Therefore, it is important that we make our products and brands stand out amongst the competition. How do we accomplish this?

Attractive packaging that meets our marketing goals and reflects quality and credibility.
In-store promotional materials that draw attention to our products, such as signage, product displays, shelf wobblers and printed materials that attract and educate consumers.
Product recommendations from the pharmacist or pharmacy staff.

Once our product is used by a pharmacy, and if the product was well accepted by patients, the patient will request the same brand or even other AdvaCare products, resulting in consumer retention.

Note: There are some distributors that also own pharmacies, in which case the distributor will have a separate company established that only imports and distributes, while another company, perhaps of the same group or separate, will sell the same products to the owners pharmacies and other pharmacies as well. Such vertical integration is usually not regulated and some distributors are structured in this way, but it is less common. In such a case, we would classify such a distributor as both the primary and secondary target audience.
Other Retail Stores

Retail stores, and other points of sale other than pharmacies, can include supermarkets, convenience stores or other retail outlets that are not medical-related but have demand for some of our products.

Medical devices are less regulated than pharmaceuticals, and therefore do not have the same restrictions for sales. For example, pharmacies have a license to sell prescription drugs, limiting other retailers to only OTC drugs. However, retailers are usually not restricted by regulations as much as by market demand as some products are positioned as personal care or consumer products, also known as consumer medical devices or OTC medical devices.

Given that retail stores that are not pharmacies, specifically that consumers do not go to other stores specifically for health needs, our target audience would be different in that they are not necessarily there to buy a specific product. Also, there will likely be less competitor products as the selection of personal care products or OTC medical devices will be less than a pharmacy. Therefore, our product might have to stand out even more, in a retail sense, to convince a consumer.

Some examples of consumer/OTC medical devices that are positioned as personal care and consumer products include:

AccuPoint Insulin Syringes
AccuQuik Rapid Tests for pregnancy, ovulation and COVID
AccuQuik Blood Glucose Monitors, Blood Pressure Monitors, Digital Thermometers
StayDry Adult Diapers, Baby Diapers, Sanitary Pads, Under Pads, Colostomy Bags
StaySafe Face Masks, Gloves, other PPE and condoms
StayGuard Bandages, Baby/Body Wipes, Transdermal Patches, Orthopedic Braces and Supports
Note: If not sure if a product is normally sold in the pharmacy/retail channel, first research to be clear on the channels that the product applies to. The products commonly available in the pharmacy/retail channel can vary country to country, but most pharmacies worldwide are consistent in the scope of products sold.
Online Pharmacies

First, read:

Distribution Channels: An Overview > Pharmacies/Retail Stores > Online Pharmacies

Online pharmacies are still underdeveloped in developing countries, but it is up and coming and will eventually come to developing countries. For this reason, it is a channel that we need to prepare for. Online pharmacies might sell some medical devices, but most only sell prescription pharmaceuticals and some OTC medicines as well.

B2C

Consumers and patients are the end users of our medical device products. These people often go to a pharmacy to buy a specific product for a health need and will either buy off the shelf or ask the pharmacist or pharmacy staff for a recommendation. Given that the pharmacy is a point of sale of our products, our branding awareness and messaging are very important.

Supply Chain

Pharmacies are the second to last stage in the supply chain before the product is used by a patient or consumer:

API Manufacturer > Finished Manufacturer > AdvaCare > Distributor/Importer > [Sub-Distributor] > Pharmacy/Retail > End Consumer (patient/consumer)

See:

Distribution Channels: Introduction > Understanding Supply Chains

Promotional Materials: Which materials apply to this channel and why?

Pharmacies rely on 3 methods by which to sell products:

1. Patient/consumer walk-ins that are seeking to buy a specific medical device or personal care product for a health need off-the-shelf.
2. Patient/consumer walk-ins that are seeking to buy a specific medical device or personal care product for a health need with the assistance of a pharmacist or pharmacy staff.
3. Patient/consumer walk-ins that have a health need but don’t know which type of product is needed and require the assistance of a pharmacist or pharmacy staff.

The kind of promotional materials we produce for our distributors to provide to pharmacies should be based on which method the pharmacy relies on to sell each product. And it is important to always keep in mind that the pharmacy is a retail store, the final point of sale of our products. The promotional materials we provide for pharmacies must meet the intended marketing purpose.

The B2B, B2C, Distributor Sales Dept. channels reflect not for whom the specific promotional item is targeting, but instead to which channel it is provided to. Symbol “(TA)” and Context explains for whom each item is targeting:

= Promotional item provided to this channel.

Who will receive this promotional item?

= Promotional item not provided to this channel.

Who will not receive this promotional item?

= Promotional item might/could be provided to this channel.

Who might or might not receive this promotional item?

(TA) = Intended Target Audience for this channel.

i Who is targeted to see this promotional item?

PROMOTIONAL MATERIALS FOR PHARMACY CHANNEL

Printed Materials

Promotional Item

B2B

B2C

Distributor

Sales Dept.

Description

Poster and Signage

(TA)

B2B: Signage, such as wall posters, should serve primarily for brand awareness - to educate consumers on the benefits, quality and trust/reputation of a specific product or product range. Secondary purpose is to educate on how to use our products or other helpful tips about related health conditions that would make a pharmacy want to display such a poster.

B2C: Signage is B2C targeted, but not given to consumers/patients.

Window Signage

(TA)

B2B: Purpose is same as Posters and Signage .

B2C: Window signage is B2C targeted, but not given to consumers/patients.

Flyer / Pamphlet

(TA)

(TA)

B2B: Flyers, pamphlets and brochures for our distributors to give to pharmacy decision makers (owners, GMs, procurement managers, etc.) to promote AdvaCare and our products. Purpose is to prove credibility and convince secondary target audience to buy AdvaCare products.

B2C: Flyers, pamphlets and brochures serve to educate patients/consumers on the product usage or related health condition, but challenge is budget usually limits the quantity that we can print. For example, if there is a quantity of 10,000 boxes of a tablet product, budget might only allow 2,000 flyers.

Shelf Wobbler

(TA)

B2B: Very effective visual product-specific promotional item product specific to educate consumers on the benefits of our product and the value of our brand.

Aisle Signage

(TA)

B2B: Similar to shelf wobblers, but larger to catch attention of consumers looking down an aisle. Effective visual product-specific promotional item to educate consumers on the benefits of our product and the value of our brand. But must be compatible with shelves for attachment.

Standing Banners

(TA)

(TA)

B2B: Signage, such as large standing posters, serve to promote a specific product or product range, or to educate consumers on health conditions, use of products, or other helpful tips that are relevant to our products being sold by the same pharmacy. Secondary purpose is for brand awareness of AdvaCare and possibly our distributor.

B2C: Window signage is B2C targeted, but not given to consumers/patients.

Distributor: Can use for seminars, trade shows or other events.

Notepad / Notebook

(TA)

B2B: Notepads are cheaper, usually given by distributors to pharmacies for use by staff. Notebooks are more expensive, usually given by distributors to more important customers. Both are effective for brand awareness given it is useful and branding is on every page.

Distributor: Can use but in small quantities.

Sticky Note

(TA)

B2B: Inexpensive and widely used by pharmacy staff. Effective for brand awareness given it is useful and branding on every page.

Distributor: Can use but in small quantities.

Calendar

(TA)

B2B: AdvaCare branded calendars are usually printed annually around July of every year and sent out in advance for the following year. Very strong brand awareness as it is used for a full year, it puts our products and brands in the user’s face for a long period of time.

Catalog

(TA)

B2B: Distributor gives to pharmacy decision makers to showcase our products for that market and build credibility. Catalogs are usually custom designed and printed for a specific country and/or distributor.

Delivery Vehicle Decal

(TA)

(TA)

Distributor: As most of our distributors have their own delivery trucks, large decals applied to their delivery vehicles are inexpensive and very effective to promote the AdvaCare name in local markets, but requires that the decal be well designed and fit the specific vehicle.

Physical Items

Product Display

(TA)

B2B: Less expensive tabletop displays and more expensive floor displays are very effective for making our products stand out in pharmacies. Primary purpose is product or product range promotion, and secondary purpose is brand awareness.

Pen / Highlighter

(TA)

B2B: Inexpensive and good for widespread brand awareness, but limited in messaging given only AdvaCare+Distributor logos or only AdvaCare logo can fit onto a pen.

B2C: Does not apply to consumers, branding purpose exists but usually budget doesn’t allow for sizable quantities.

Distributor: Salespeople can use when in the field.

Desk Clock

(TA)

B2B: Effective for reinforcing general brand awareness as a desk clock sits on someone’s desk for long period of time, but given small size, messaging limited to AdvaCare+Distributor logos or only AdvaCare logo.

Wall Clock

(TA)

B2B: Useful promotional item in pharmacies with long life cycle, but messaging is limited to AdvaCare+Distributor logos or only AdvaCare logo.

Mouse Pad

(TA)

B2B: Inexpensive and effective for brand awareness with many options for messaging. Widespread use for pharmacies as most only have a few computers, so can be given to many pharmacies.

Plastic Folder / Envelope

(TA)

B2B: Inexpensive and useful for any documents that need to be stored or transported by a pharmacy.

Distributor: Can use but in small quantities.

Mug

(TA)

B2B: Useful for long term use, given to pharmacy staff to use.

Water Bottle

(TA)

B2B: Less common for pharmacy use, water bottles are most common to give to farmers for our veterinary range. However, these could be a useful item for staff. More premium steel if for decision makers, less premium plastic if for general staff.

Distributor: Salespeople can use when in the field, small quantity.

Desk Organizer

(TA)

B2B: Less requested but generally good for reinforcing general brand awareness as this sits on someone’s desk for long period of time, but given small size messaging limited to AdvaCare+Distributor logos or only AdvaCare logo.

Shirt

(TA)

(TA)

B2B: Inexpensive polo style shirts are ideal for less formal and lower level pharmacy staff, more expensive button-down shirts ideal for pharmacists.

Distributor: Button-down shirts ideal for distributor’s salespeople while in the field, strong brand association and awareness.

Laboratory Coat

(TA)

B2B: Our distributors request lab coats for use by pharmacists and other staff. These are relatively inexpensive and bring a level of credibility as lab coats are always connected with healthcare, so it is especially credible if pharmacists and staff are wearing lab coats with the AdvaCare logo.

Cap

(TA)

B2B: Not used in the pharmacy settings, but possibly provided by distributors to pharmacists, staff, etc. as a gift.

Waist Bag

(TA)

B2B: Generally not used in pharmacy settings, but it is possible to be used or could be provided by distributors to pharmacists and staff as a gift.

Padfolio

(TA)

(TA)

B2B: A preferred promotional item by many distributors, often given as a gift to pharmacists and decision makers.

Distributor: Ideal for distributor’s salespeople when in the field for brand awareness.

Backpack / Laptop Case

(TA)

(TA)

B2B: Expensive and usually given to distributors with larger promo budgets in lower quantities as gifts for pharmacists and decision makers.

Distributor: Ideal for distributor’s salespeople while in the field for strong brand awareness.

Fabric Bag

(TA)

(TA)

B2B: More expensive than plastic bags, but can produce in smaller quantities. Distributors use for a variety of purposes, and considering these are often kept and reused by those who receive them, these do create some brand awareness. However, use is questionable, must find out how these will be used by distributor.

B2C: Ideal for B2C use, but budget usually does not allow for large enough quantity to be used for consumers.

Distributor: Might be used by distributor to give samples or other materials, must find out intended use.

Plastic / Paper Bag

(TA)

B2B/B2C: Distributor gives to pharmacies for use at point of sale with consumers. Must be a large quantities for this use.

USB Stick

(TA)

B2B: Expensive but can be given as a gift for pharmacists or for pharmacy staff to use. Limited brand awareness, should only give if large budget or specially requested and good reasoning to provide.

Pill Organizer

(TA)

(TA)

B2B: Could be given as a gift to pharmacists or given by pharmacies to priority consumers, but only if inexpensive and larger quantity.

Mask Holder

(TA)

(TA)

B2B: Inexpensive and can provide large quantities to provide to pharmacy staff as masks are likely worn in pharmacies more often.

B2C: Possible to be given to consumers given inexpensive and large quantities are possible if budget allows.

Umbrella

(TA)

B2B: Expensive with some brand awareness, ideal for gifts to pharmacists and staff.

Raincoat

(TA)

(TA)

B2B: Usually umbrella more suitable as a gift, but possible if more expensive raincoats.

B2C: Inexpensive raincoats could be possible for pharmacies to provide to consumers. For general brand awareness.

Phone RIng

(TA)

B2B: Inexpensive with limited brand awareness, possible gifts to pharmacy staff but not many requests.

Digital Activations

Online Banner

(TA)

(TA)

(TA)

B2B: Online banners posted by or for our distributors can be effective on social media for product sales and brand awareness. Distributor can also provide online banners to pharmacies to use for their promotion of AdvaCare products.

Digital Catalog

(TA)

B2B: Possible application for distributor’s salespeople to show or send a digital catalog to pharmacy decision makers.

Digital Flyer / Signage

(TA)

(TA)

B2B: Applies only if distributor will print our design in their country, usually results if we cannot send physical promotional materials or budget is not sufficient.

B2C: Flyers or signage printed by distributor might be given to consumers/patients depending on distributor’s marketing goals.

Power Point Presentation

(TA)

B2B: Case specific, usually requires significant time to prepare. Depends on distributor priority.

Website Development

(TA)

(TA)

B2B: For priority distributors, with approval we can design and host a website. We use a template for this, showcasing our products and controlling the hosting, domain and access to the website.

Extended Search Ads

(TA)

(TA)

(TA)

B2B/B2C: We can run Google Ads and other PPC campaigns targeting specific demographics in our distributor’s country. Such campaigns are for priority distributors and must serve a strategic purpose. Must check on restrictions of country.

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