1 / 18

Merrill Lynch Consumer Focus Day November 2003

Merrill Lynch Consumer Focus Day November 2003. Healthcare Strategy in South Africa. Strategy UPD Clicks Clicks Pharmacy. “The realisation of a dream”. Multibrand Strategy – South Africa. Health. Beauty. Lifestyle. Consolidated Retail. Pharmacy. Specialist. Wholesale.

ananda
Download Presentation

Merrill Lynch Consumer Focus Day November 2003

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Merrill LynchConsumer Focus Day November 2003

  2. Healthcare Strategy in South Africa • Strategy • UPD • Clicks • Clicks Pharmacy “The realisation of a dream”

  3. Multibrand Strategy – South Africa Health Beauty Lifestyle Consolidated Retail Pharmacy Specialist Wholesale

  4. Healthcare Strategy • Leverage benefits of integrated channel to market • Extend retail presence & expertise into pharmacy • Establish efficient, compliant & profitable low-cost drugstores • Promote co-ownership model • Improve front to back shop ratio • Synergies from combining pharmacy with current offering - lower overheads & increased footfall • Franchise model retained – using compliant format • Explore black empowerment opportunities

  5. Wholesale & distribution - UPD model • Profitable well run business • Efficient working capital management • Largest national wholesaler in SA • Expertise in fine distribution UPD provides distributionfor integrated channel to market UPD 43%of other wholesalebusiness

  6. Integrated channel to market • Pharmacies carry less stock • Act as warehouse for pharmacies • Distribution & service levels key

  7. UPD – in short • Growth in turnover from PM&A & independent pharmacies • Retained most independent pharmacy customers • Standardised terms on FMCG suppliers • Clicks pricing on top FMCG lines available to customer base • Two franchise models in the group – Link + Multicare • Develop Link offering as premium banner • Develop programmes to enhance Link pharmacy loyalty to UPD – new franchise agreement

  8. Impact of legislation on UPD Original source procurement • Levelling of the playing field – ethical standards + transparency • Small impact on current wholesale customers • Service levels will be the differentiator Generic substitution • Single channel distribution - lower market shareof branded ethicals - better placed to benefit • Currently, margins better Single exit pricing • Timing – early 2004 • Lack of clarity “Generally positive for UPD”

  9. “The realisation of a dream”

  10. Clicks - The Vision • To create an experience of pharmacy that has never been seen before in SA • To combine the best of what Clicks offers with the best of the pharmacy experience • To enhance the Clicks brand qualities of value with convenience & service

  11. Pharmacy in Clicks • Regulatory approval for PM&A deal • Application for licences • PM&A • Additional licences in selected stores • Underserviced areas – discuss with government • All New Clicks wholly-owned/JV pharmacies to be rebranded Clicks

  12. Format 1 Clicks Health, Home & Beauty with Dispensary • Health & dispensary as additional components to our current understanding of Clicks • Value for money • Servicing woman’s world “For me, my home, my life” • Heavy promotional drive

  13. Format 2 Clicks Health and Beauty with Dispensary • Health & Beauty focus supported by gifting & convenience statement • Personal connection to pharmacist • Strong promotional offering • Strong value statement • Convenience & longertrading hours

  14. What the customers had to say... • Customers expected Glengariff to be like a Clicks with an added pharmaceutical department • The relationship with the pharmacist & customer service are key • Clicks Pharmacies would be more price competitive than other pharmacies • Can I use my ClubCard? “Glengariff opens shortly Systems ready ClubCard ready”

  15. Learning from Australia Conversions: • Converting existing Priceline store (Prahran) • Sales growing in excess of 40% • Back & middle shop sales already at 18% - should double • Converting existing pharmacy (Bentleigh) • Script sales grown by 20% • Front shop sales up from 10% to 75% New site: • Mornington • Turnover A$45k per week from 300m² • Front shop sales 50%

  16. Questions ?

  17. Thank You

More Related