Home Standard Operating Procedures Marketing Dept. Reference Distribution Channels Distribution Channels: Pharmaceuticals Pharmaceuticals: Pharmacies/Retail

Pharmaceuticals: Pharmacies/Retail

Updated 2 yrs ago | 20 minutes

Overview

Pharmacies

Pharmacies are a major distribution channel for the AdvaCare Pharma pharmaceutical product range, equal to or greater than the hospital/clinic channel depending on the distributor. Pharmacies do not distribute as wide a range of dosage forms as the hospital/clinic channel given that pharmacies mostly depend on patient self-dosing, but AdvaCare Pharma is especially well positioned to fill the needs of any pharmacy given our very wide range of treatments across 13 different dosage forms.

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 pharmaceutical products, especially given that pharmacies are a retail channel and, depending on the country, the patient 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.

Other Retail Stores

Retail stores, and other points of sale other than pharmacies, can include supermarkets, convenience stores or direct marketing. However, such distribution depends greatly on the regulations of each country. Some countries only license pharmacies to sell any form of medicine, but it is important to note that other retail stores will usually be limited to the sale of OTC (Over-The-Counter) products as the sale of prescription drugs is licensed in almost every country. Also, it is important to note that some countries consider a product to be prescription while other countries consider the same product to be OTC.

OTC products could include those that are regulated and less likely to cause harm or be abused. Some examples in our product range include:

● ParaCare Paracetamol Tablets

● IbuCare Ibuprofen Tablets

● Cold&Flu Relief Oral Suspension

● Decongestant (Anti-Cough) Oral Suspension

● SinuCold Tablets

● Gas Relief Softgel Capsules

● TriRelief Tablets

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

Our entire pharmaceutical range is positioned for pharmacy use, meaning we can cover all of the products that a pharmacy would have demand for. It is important to understand which dosage forms are positioned for the pharmacies and who are the decision makers for the patient/end consumer.

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 dosage forms in our pharmaceutical range are distributed through the pharmacy channel:

PHARMACEUTICALS IN THE PHARMACY CHANNEL
INJECTIONS	As injections require a doctor or nurse to administer via a syringe or needle, injections can be sold in pharmacies but represent a smaller percentage of sales because it is required to bring to a doctor or nurse at a hospital, doctor’s office or at home to administer.
Powder for Injection	Powder in a vial is mixed with sterile water, drawn into a syringe, and then administered by IV or IM route. Given the greater complexity and risk for contamination, these injections are usually administered in a hospital. In some cases, this dosage form can be administered out-patient (at home) by a doctor or nurse, but it is much less common.
Small Volume Injection	Liquid in an ampoule or vial is drawn into a syringe, and then administered by IV or IM route. These injections are administered in a hospital or a doctor’s office. In some cases, this dosage form can be administered out-patient (at home) by a doctor or nurse, but it is less common.
Large Volume Injection	Liquid in a larger bottle or bag is slowly administered by IV (into the vein). These injections are administered in a hospital or doctor’s office. In some cases, this dosage form can be administered out-patient (at home) by a doctor or nurse, but it is less common especially given it takes longer for administration.
CAPSULES / TABLETS	Capsules and tablets are orally swallowed and therefore easy for administration. These dosage forms are the most common for pharmacies given oral medications are self-administered and easy to take, making capsules and tablets very well positioned for pharmacies.
SUSPENSIONS	Suspensions are liquids for oral administration and therefore easy for administration. Most commonly used for children and elderly, suspensions are self-dosed and therefore well positioned for pharmacies to be the point of sale. Antibiotics are especially common as oral suspensions.
Oral Suspensions	Premixed liquid in a bottle that is measured in a small cup, or could be single-dose, taken orally. Often flavored and convenient for administration. Although premixed, must still be mixed well (bottle shaken) before use (this point important because it is self-administered unlike in a hospital which is supervised by a nurse). Given the ease of use, given the suspension is already premixed, this dosage form is well positioned for the pharmacy channel and out-patient (at home) use.
Powder for Suspension	Some medications are more stable as a powder opposed to a premixed liquid (oral suspension). Powder in a bottle that is mixed with water, then measured in a small cup or could be single-dose, taken orally. Often flavored and convenient for administration, but powder must be mixed (bottle shaken) more vigorously than an oral suspension before use (this point important because it is self-administered unlike in a hospital which is supervised by a nurse). Given the ease of use, this dosage form is used in hospitals but also often sold through the pharmacy channel and for out-patient (at home) use.
SYRUPS	Similar like Suspensions, only thicker consistency and texture of the liquid. Often flavored and easy/convenient for use especially by children and elderly. Like oral suspensions, well positioned for the pharmacy channel. Unlike suspensions which the dispersed particles separate creating a bottom layer, syrups are more evenly mixed. But given syrups are usually less stable than oral suspensions, less medications are available in this dosage form.
DROPS	Liquid in a small bottle for use in the eye and ear. Drops are commonly for self-administration and therefore often for out-patient use and sold through the pharmacy channel.
TOPICALS Creams/Ointments/Gels	Topicals are applied to the skin, scalp, nails or other external areas. Given the ease of use and non-severity of skin conditions, this dosage form is usually self-administered and well positioned for the pharmacy channel.
SPRAYS	Liquid in bottles administered into the nose. This dosage form is used in hospitals but more often sold through the pharmacy channel.

Target Audience

B2B: Primary Target Audience

As pharmacies cannot purchase large volumes of pharmaceuticals 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 pharmaceutical products, and therefore our primary target audience.

See:

Distribution Channels: An Overview > Distributors

B2B: Secondary Target Audience

Pharmacies & Retail Stores

The pharmacies that our distributors sell our pharmaceuticals 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 pharmaceuticals fit into this channel.

See:

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

Strong brand awareness and product promotional materials are especially important for our OTC products at pharmacies as these are retail points of sale. And while prescription pharmaceuticals might be behind the counter, many pharmacies will display these products so it is still important that even our prescription Rx pharmaceuticals stand out next to competitor products. Furthermore, the decision maker, whether it be a consumer or the pharmacy procurement manager, who purchases our products needs to be convinced, which is ultimately based on the efficacy/quality of the product, but initially this is often judged by the packaging, hence the importance of our packaging and overall product appearance and appeal.

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 consumers just browse. Therefore, it is important that we make our products and brands stand out amongst the competition. How do we accomplish this?

● Product recommendations from the pharmacist or pharmacy staff are especially important for both Rx and OTC pharmaceuticals.

● Especially for OTC products, 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.

Once our product is used by a pharmacy, and if the product was well accepted by patients, the patient will request the same brand to the prescribing doctor or pharmacist for refills or even other AdvaCare products.

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.

Doctors

Doctors are usually not allowed to sell products, especially pharmaceuticals, directly to patients in most countries given that it is a basic ethical conflict of interest. If doctors were allowed to sell pharmaceuticals, it would drastically increase the likelihood of corruption. Therefore, doctors are also a target audience as they must be convinced of the following, in order of importance:

1. Quality: The efficacy and quality standards of AdvaCare products must be effectively explained to doctors to convince them to begin prescribing our pharmaceutical products. Likewise, the same must be proven to ensure doctors continue prescribing our pharmaceutical products.

2. Availability: If our distributor keeps our product well stocked, our products will remain fresh in the mind of doctors when they prescribe medicines. If the doctor can rely that our brands will be available, they will continue to prescribe the same brands.

3. Relationship with the distributor: It is important that our distributors keep a close relationship with doctors to keep our products relevant, which is where promotional materials are especially effective. The relationship is a sensitive one given that most country’s health agencies (FDA, MOH, etc.) try to prevent bribery, but each country has different regulations controlling the relationship. However, distributors are allowed to provide small promotional gifts to doctors with the purpose of keeping our company and brands relevant.

4. Price: Doctors usually do not care about prices, as this is for the pharmacies to decide, but doctors in most of our middle-low income target markets are well aware of the financial limitations of their patients, and will often prescribe generic brands, such as AdvaCare brands, opposed to the innovator products (usually big pharma companies such as Pfizer, GSK, Bayer, Sanofi, etc.). Therefore, it is important that AdvaCare brands stand out as a “first amongst equals” when compared to competitor generic brands.

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 their own 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, such a distributor would act as both the primary and secondary target audience.

B2C

Consumers and patients are the end users of our pharmaceutical products. These people are either prescribed a medication by a doctor or go to a pharmacy to buy a prescription medication or OTC recommended by a pharmacist or buy it from the shelf if they do not want or require a pharmacist. 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. Prescription medication from doctors that need to be filled at a pharmacy.

2. Patient/consumer walk-ins that are seeking a prescribed medication or OTC product with the assistance of a pharmacist in the pharmacy.

3. Consumer walk-ins that will buy an OTC medication off-the-shelf.

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.

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 such a small space. 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.

Did this article help you?