1.0 Introduction: Retail Pharmacy Background
There are about 8,632 registered pharmacists and 2,000 community pharmacies which is also known as retail pharmacies in Malaysia. Out of the registered phamacists, 5,288 are in the government sector while 3,344 are in the private sector (Ministry of Health Malaysia Health Facts, 2012). The ratio of pharmacist to Malaysia population is about 1: 3,355. Both Penang and Klang valley areas consists of 56% of retail pharmacies in Malaysia.
To operate a retail pharmacy, the pharmacist shall need to register A-license or known as poison license in order to be able to sell prescription medicines under the Sales of Drugs Act 1952 and the Pharmacist ...view middle of the document...
The paid up capital for the pharmacy is RM 200,000.00 which has further increased to RM 250,000.00 subsequently.
The pharmacy is located in Taman Pekaka which is opposite Tesco Extra and beside a Nasi Kandar Restaurant, Subaidah and comic shop. However, it is also neighbor to a chain pharmacy, Georgetown Pharmacy (formerly known as Sungai Nibong Pharmacy Sdn Bhd).
During the startup of the pharmacy, it only employs a shop assistant, with the pharmacist herself to maintain low head count. Throughout the years, the pharmacy further employs another 2 shop assistants and part time pharmacist assistant, which makes the total headcount to 6 people. The pharmacy also engages a part time marketing manager, to do marketing and sales activities.
2. 0 Marketing Sales Department
As in the retail market, the pharmacist herself and the other shop assistants are responsible in serving the customers and selling to the walk-in customers. The pharmacy also collaborates with health supplement suppliers who provide sales assistant to help pushing sales in the shop on weekly rotation basis.
In order to draw more customers traffic to the pharmacy, a marketing department is set up to deal with companies as the pharmacies are trying to develop corporate clients as well. The marketing department would try to engage factories to have promotional booth to have a health campaign to reach out to more customers and to advertise the pharmacy presence. Such health campaign does not require the pharmacy to pay any cost for the booth, but the pharmacy shall need to deploy shop assistants and sales assistant from health supplement brands to conduct the promotion activity.
3.0 Retail/Marketing Issue: Poor Marketing Return of Investment on Marketing Efforts
After running for about 5 years, Healthworld Pharmacy has observed that there is a plateau in terms of customer growth, which was implicated by the number of transactions each day, total revenue per month and value per transaction. Despite several attempts in conducting various marketing efforts, the retail business does not seem to improved significantly. The customer awareness of Healthworld Pharmacy has not been evidence as compared to other well-known chain pharmacies.
During the start-up of the business, the pharmacy has tried to go on flyer promotions by distributing about 20000 pieces of flyers to residents areas nearby but received poor return of investment. Not many new customers return with the promotion slip designed at the corner of the flyer to record the effectiveness of the flyer promotion.
The promotion booths held at the factories also has mixed responses in which some places are having positive results in terms of sales revenue, while some other places are having discouraging turnover. The willingness to spend during this promotional period does not reflect the return of investment on the effort put in for organizing such events.
Healthworld Pharmacy also offers...