Changing or choosing a brand for your pharmacy is no doubt a massive decision, and certainly nothing to be undertaken lightly. Akin to you all of a sudden changing your own personality and how you present yourself, your store will also take part in the next stage of its evolution in changing its personality and how it presents itself. It is a big decision that can have big implications to the future success of your pharmacy.
There is an old saying in pharmacy land, “Brands only matter to owners”. It sounds a bit harsh and I certainly mean no disrespect to all the wonderful brands and franchises out there, but when you change brands and your customer asks you “so what were you before?”, it makes you wonder. Especially when the majority of the decision-making factors lies with the owners when considering a brand is more along the lines of “what’s in it for me?”.
If you are thinking about changing brands, or choosing a brand for your store, there are a number of important considerations to make which I would like to take you through.
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Some of my favourite pharmacy businesses are independents. These stores perform consistently well year after year after year. But there is a good reason why, and that is all to do with the owner. Those who can operate an independent store well are those who have very entrepreneurial personalities. They have a great sense of control, they like to change, stop pivot, try things and hate being told what to do and being caught up in a system. There are some fantastic independent pharmacies out there, operated by some very unique personalities. Meaning owning an independent pharmacy and being really successful, means you need a distinct mindset. These stores also match the personality and values of the owner well, and that is one of their greatest strengths.
Sometimes your location also can influence this decision. Certain locations require a brand for it to work well. And there are certain locations where you need to question whether a brand is going to make a difference at all. Those one-pharmacy regional towns are one such location where a brand is not going to make a huge difference if you are focused on the community’s health and you are part of that community.
What is in it for your Customers/Patients?
When I hear owners discussing brands, more often than not, the conversation is centred around what the brand is going to do for them. To me, the first question should always be, “what is the brand going to offer my patients?”.
When asking this question, several issues are now raised.
Does the brand have customers or patients?
This distinction is massive. The retail focused brands are more customer centric, versus the health focused brands that are more patient centric. The difference lies in what the service and product offering is and the type of person the brand is trying to attract. Does this align with your community’s needs?What are your community’s health needs and what brands can support these needs?
What value does the brand offer your patients and how does that compare to other pharmacies in your area? If you have hard discounters in your area, is having another discount retail pharmacy brand going to add much value to your locals and set you a part?
How is the brand evolving to meet future customer/patient needs? This is another critical question. Pharmacy land is evolving. Pharmacist scope of service now becoming more relevant. There is also CWH and Sigma, 60DD, and cost of living pressures, and lastly pharmacy’s role in community health becoming more and more important. How is your brand changing and evolving to meet these changing demands? What brands are still relevant in community health space? What are your views on these issues and how are potential brands meeting these challenges? Is your brand going to be relevant in 5 years’ time.
What is in it for you?
Only after these questions have been asked do you then move to your concerns. This is where you put your business owner’s hat on and find out what brand is going to be the better decision for you. These are some of the critical questions you need to ask:
What brands align to the type of pharmacy you want to run? It is important you have an understanding about what type of store you want to operate. Are you purely a health service? Do you want to specialise in a particular health service or target audience? Or are you all about retail? Your brand must align to the type of store you are excited about.
What is the brands’ marketing like? Note there are two very important aspects here. Firstly, is the brand marketing done by the franchisor. This is all about brand recognition and being heard amongst the marketing noise. Secondly, is the local area marketing which is done at a store level. This is all about your store and its reach and relevance to the local community. Both aspects are vitally important. So, when deciding brands, understanding how the franchisor is promoting the brand and supporting you and your store. Some brands have fantastic tools available to support your own marketing efforts.
Is there good brand recognition that will help propel your pharmacy’s reputation in the community? Is the brand going to enhance your store and become more attractive to the local community?
Does that brand have any other stores close by? Some brands can get to a point where they start to compete against themselves, which limits your catchment pool and limits your point of difference to convenience only.
What systems, procedures, and tech does the brand offer that can support your store and evolve it further to not only enhance the patient experience but also enable the business to operate more efficiently and cost-effectively?
Does the brand have a reasonably good quality loyalty program and how does the brand use that data? A good loyalty program is important and when used properly can offer you and your patients’ good value.
What are the costs and do those costs reflect reasonable value for money? How do these costs compare to other brands and what they offer?
What are the conversion costs and can the brand help fund this?
What beneficial trade terms can the brand offer and what $ impact will that have on your store and stores value?
Do a SWOT analysis for the various brands to ensure you are looking at this rationally and giving enough weight to the various issues?
Speak to other pharmacy owners to get their experience of the various brands. Owners do like to share and help out others. Plus, they are often very honest in their views and experiences.
In conclusion, the decision to change or choose a brand for your pharmacy is a significant one that requires careful consideration. Just as individuals carefully cultivate their own personalities, the branding of your store plays a pivotal role in shaping its identity and how it is perceived by customers. While it's natural to prioritise what the brand can offer you as an owner, it's equally important to prioritise what it can offer your patients and community. Understanding the needs of your community, aligning with your store's vision, and evaluating the brand's marketing, support systems, and costs are crucial steps in the decision-making process. But by conducting thorough due diligence and seeking insights from fellow pharmacy owners, you can make an informed choice that not only benefits your business but also enhances the services you provide to your community, ensuring the continued success and relevance of your pharmacy for years to come.
