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R&F Case Presentation

Presented By:

Ankit Govil

Aparna Ravi

Prashant Saurav

Shreyas Bansal

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SGI Group involved in manufacturing and marketing of : Bulk pharmaceuticals, Drug intermediaries, Fine chemicals, Dyes and

dye intermediaries, Food preservatives

Business Philosophy: delivering high quality products andfollowing ethical business practices

Year 2000, Diversification (to pharmaceutical retailing)

contemplation due to changed environmental conditions

Pharmaceutical retailing in India: Rs 16 Cr

Existing Organized retail (Pharmaceutical): Health & Glow,

 Apollo Pharmacy, Model Pharmacy, Tru Value, Medicine Shoppe

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Shortcomings of Traditional Store:

Lack of refrigeration & air-conditioning facility to preserve medicines

Lack of power back-up

Absence of Pharmacist, which is primarily source of information forrationale and dosage of the prescribed medicine

Even though customer was most important in this business, he/shewas neglected

Consumers:

Attitudinal & Behavioral change from curative & preventive medicines

Rising education level, income and increased awareness for healthcare

Increased cases of lifestyle diseases: diabetes, asthma, hypertension,

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Fulfilling the void left by traditional medical stores

Focus on Health-overall wellbeing of patients & not just

preventive care Not just selling medicines but to provide shopping experience

Provide counseling and educating customers aboutmedicines and their consumption (administration)

Encouraging and promoting sound personal health practices

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Those Attached to Hospitals Catered mainly to patients requirements and hence

planned merchandise accordingly.

Those Around areas with high concentration of chambers of consulting doctors Dealt in medicines prescribed by neighboring doctors

Those in residential or market areas Provided the benefits of proximity and personalized

service.

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Apollo Hospital Pharmacy Chain Hospital Pharmacies- adjacent to Apollo Hospital and attracts patients

of Apollo Hospital Clinic Pharmacies- primary stores attached to Apollo Clinic and attract

patients IOC Pharmacies located in the vicinity of petrol pump, which have

central location and thus more easily approachable. Stand Alone Day and Night Pharmacies- located in high traffic areas

and can be approached in cases of emergencies.

Model Pharmacy Project, New Delhi located in vicinity of Hamdard University and attract customers from

there.

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All India Chemist and National Medical Store

Located at the subway of AIIMS Hospital and attractpatients from there.

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located in residential areas to provide relaxed butefficient shopping environment to the customers.

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Apollo Hospital Pharmacy Chain Have different format of stores and thus different

categories and layout under the Umbrella brand Health & Glow

Discounts may lead them into trouble with local traders.

Muthu Pharmacy

Brand it as a pharmacy shop for genuineness andconvenience

Subhiksha Give the bundling offers on Rx products to improve the Rx

sales and hence improve the margins.

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Model Pharmacy Project, New Delhi Focus on Layout that gives a better shopping experience

All India Chemical and National Medical Store Increase the billing counters and larger OTC area to reduce

the lag queues and waiting time.

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Bring the billing counters more close to the exit doors,however continue with the large display of health relateditems.

Serve dual purpose of shopping experience and givesolutions to Indians attitude of hurries.

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1012/21/2010