Merrill Lynch Consumer Focus Day - PowerPoint PPT Presentation

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Merrill Lynch Consumer Focus Day

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Merrill Lynch Consumer Focus Day November 2003 Healthcare Strategy in South Africa Strategy UPD Clicks Clicks Pharmacy Multibrand Strategy South Africa Healthcare ... – PowerPoint PPT presentation

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Provided by: clicksgro
Learn more at: http://www.clicksgroup.co.za
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Title: Merrill Lynch Consumer Focus Day


1
  • Merrill Lynch Consumer 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
Lifestyle
Beauty
Health
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 distribution for integrated channel
to market
UPD 43 of other wholesale business
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 PMA 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
    share of 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 PMA deal
  • Application for licences
  • PMA
  • 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 womans 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 longer trading 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 A45k per week from 300m²
  • Front shop sales 50

16
(No Transcript)
17
  • Questions ?

18
  • Thank You
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