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Supplements: Pharmacies

Updated 2 yrs ago | 19 minutes

Overview

Pharmacies are a major distribution channel for AdvaCare Pharma’s AdvaLife supplement product range. The pharmacy channel is especially important in developing countries where there are less channels available to consumers. For example, online purchasing is less prevalent and there is minimal demand for specialized channels such as supplement shops, health food stores and organic food stores.

The general perception of consumers in developing countries is that if any product related to healthcare is needed, the first place to go is a pharmacy. This is a different consumer reality than in more developed countries in which consumers have many options, such as buying online or going to a supermarket that will also have a significant selection of supplements available. AdvaCare Pharma is especially well positioned to fill the supplement offerings of any pharmacy given our very wide range of more than 150 supplement products covering everything from basic vitamins to more complex condition-specific formulations.

Our distributors will approach pharmacies and attempt to convince the key decision maker, usually the pharmacy owner, to accept AdvaLife Nutraceutical products. Therefore, the distributor needs to know how to present AdvaLife and the advantages of our supplement products, especially given that pharmacies are a retail channel and, depending on the country, 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 AdvaLife brand is an equally important deciding factor.

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

Our entire supplement range is positioned for pharmacy use, meaning we can cover all of the products that a pharmacy would have demand for. Our comparatively wide range of available dosage forms is an advantage to be able to provide a product for every market preference.

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 supplement range are distributed through the pharmacy channel, and given that pharmacies carry a wider range of supplement products and brands, all of the dosage forms apply to the pharmacy channel:

SUPPLEMENTS IN THE PHARMACY CHANNEL
BY FORM
TABLETS	Tablets are solid dosage forms made by compressing powdered or granulated supplement formulations and can be in various shapes and sizes, including round or oval. Tablets are swallowed or chewed and dissolve in the digestive system to release the active ingredients. Tablets are the most common form of supplements . Usually more volume of ingredients can be compacted into a tablet than a capsule, and tablets are cheaper to produce as the capsule shell is not needed.
Coated/Uncoated Tablets (swallowable)	Tablets can be uncoated or coated, depending on the release rate of the ingredients.
Caplets	Caplets are tablets in which the shape resembles a capsule. Caplets are designed for easier swallowing due to the shape, and are usually coated which also aids in swallowing.
Chewable Tablets	More palatable and easier to consume, specifically for people who have difficulty swallowing. Usually preferred over swallowable tablets and more marketable.
CAPSULES	Capsules are cylindrical or oval-shaped shells made of gelatin or vegetable-based material that contain the powdered form of the supplement. Capsules are swallowed whole and dissolve in the digestive system to release the active ingredients. Capsules typically look nicer than tablets as the shell of the capsule can be chosen to match the intended use, but are usually slightly more expensive as the capsule shell cost is added to the production cost.
SOFTGELS	Softgels are capsules with a gelatin or plant-based soft shell that contain a liquid or oil-based supplement formulation. Softgels are easily swallowed and typically provide better absorption of fat-soluble nutrients. Softgels are generally more expensive than tablets and capsules, but also more marketable for reasons mentioned.
GUMMIES	Gummies are chewable supplement made from gelatin or plant-based pectin that have a soft and chewy texture. The color and flavor can be customized to suit the intended use of the formulation, making gummies highly marketable and popular. Gummies are especially suitable for children and people who have difficulty swallowing, or just prefer a better tasting supplement form.
EFFERVESCENT TABLETS	Effervescent tablets are a type of tablet that is designed to rapidly dissolve in water, creating a fizzy or effervescent solution. The flavor and dissolving effect creates a sparkling, flavored drink which is preferred by people who prefer to drink instead of chew or swallow. Effervescents are a niche product, yet highly marketable given a solid form can be turned into an enjoyable liquid form.
POWDERS	Powders are mixed with water, juice or other liquid to create a drinkable solution that can be measured and flavored. Powders are unique from other liquid forms due to the mixability with liquids other than water, for example smoothies or any liquid of choice.
SYRUPS	Syrups are a liquid form that is thick and viscous, suitable for children and people who have difficulty swallowing. Syrups are especially popular for children as most formulations are specifically for this age group. Syrups have the best taste masking of all liquid forms as the flavors are usually sweetened.
DROPS	Oral drops are concentrated liquid in a small bottle with a dropper. Oral drops can be flavored (but are often unflavored) and mixed in water or other liquid, or administered directly under the tongue for better absorption. Oral drops are a more versatile liquid form preferred by some people who have difficulty swallowing or want various options for administration.
BY HEALTH CATEGORY
GENERAL HEALTH	Supplements for general nutrition and various health needs. The largest, most broad health category. Any supplement that does not fit into the other categories falls within General Health.
CONDITION SPECIFIC	Specialty supplements formulated to target defined health goals. Formulations with many ingredients that work together, such as for heart health, immunity, liver health, sleep support, prenatal, etc. Some formulations are generic, others are our proprietary formulations. Can be very marketable, but require more marketing as the conditions might be niche and consumers are not familiar with our brand.
VITAMINS & MINERALS	Any product that is a single vitamin mineral, or can be a combination of a few or more. Some examples include Vitamin C, Vitamin D3, Multivitamin, Calcium, Vitamin B Complex, Zinc, etc. Often more basic products that are popular and have demand, but highly competitive given so many competitors producing the same product without differentiation.
HERBAL FORMULATIONS	Herbal products are more mainstream, but a bit more niche. Some products are a single herbal or natural extract, while others are a combination of different herbal extracts. Products in the other health categories might contain an herbal extract but might not be included in this health category. Some examples include Garlic Oil, GInseng Extract, Cranberry Extract + Vitamin C + E, Flaxseed Oil, etc.

Target Audience

B2B: Primary Target Audience

As pharmacies cannot purchase large volumes of supplements to meet our MOQ per product, they will purchase through domestic distributors.

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 supplement 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 supplements 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, 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 supplement products at pharmacies as these are retail points of sale. Supplements are retail oriented products, and require more brand awareness compared to medicines which are purchased to treat a specific illness.

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?

● As supplements are positioned on the shelf, and usually the recommendation of a pharmacist is less a factor in the consumer’s decision making process, our product packaging must be more attractive than the competition, reflecting 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 are sometimes a deciding factor for a consumer.

Once our product is used by a pharmacy, and if the product was well accepted by consumers, the consumer will again buy or request the same brand at the same pharmacy, and even consider other AdvaLife products.

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.

Pharmacies in Hospitals and Clinics

While these pharmacies are technically the same as stand-alone pharmacies, these function a bit differently given that patients will directly purchase supplements that were just recommended by a doctor after a visit by the patient. Therefore, these in-house pharmacies are often linked to residing doctors who recommend our supplements.

To understand the role of doctors in the pharmacy channel, See:

Distribution Channels: Supplements > Supplements: Doctors

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 are especially well positioned to sell supplements given that these do not require prescriptions by doctors, special licensing to sell, and pharmacies are trusted to have quality brands.

B2C

Consumers are the end users of our supplement products. These people go to a pharmacy to buy a supplement off the shelf or recommended by a pharmacist or staff. Given that the pharmacy is a point of sale of our products, our branding awareness and messaging are very important. Compared to our other ranges, the consumer is most important to our supplement range as it is the consumer that always makes the buying decision.

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. Consumer walk-ins that will purchase a supplement product off-the-shelf.

2. Consumer walk-ins that are seeking a supplement product with the assistance of a pharmacist or staff in the pharmacy.

3. An AdvaLife brand or general supplement recommended by a doctor that can be purchased at a pharmacy.

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 the related health condition and 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.
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. Only 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 AdvaLife 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 AdvaLife 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 AdvaLife+Distributor logos or only AdvaLife 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 AdvaLife+Distributor logos or only AdvaLife 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 AdvaLife+Distributor logos or only AdvaLife 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 AdvaLife 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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