The brand name of a medical store often plays minimal significance in anyone’s life. As long as you have the product, the source is redundant in the case of medication. This divide makes it very hard for medical stores to build a loyal fanbase or a regular following.
However, Pharamacity, a pharmacy chain in Vietnam, has created enormous growth and built a loyal following of users. Established in 2011, the company has scaled faster and bigger each year.
Today they have over 2,200 experienced Pharmacists around the country who ensure efficiency and trust. But how did this business create such a significant splash, and what is the takeaway?
Huy Nguyen, CMO, Pharmacity, shares his vision and focus on digital and its path to disrupt the market.
You can see a detailed breakdown of their ideology and workings here. Pharamacity prides itself on the ability to remain relevant and thriving in a competitive market.
A central philosophy that helped Pharamacity flourish has been the “top-of-the-mind” story.
Let’s take the example of a soft-drinks. Think to yourself: what are the first three names that come to your mind. There is a good chance that many of you thought of “Coke, or Coka-Cola” part of these three. This phenomenon of being relevant in the users’ minds will enforce better business.
With any of the policies that Pharamacity applies to its growth model, its number-one mission is always to remain ‘top-of-the-mind.’ You can understand this philosophy better as we deep dive into its workings.
Understanding the target audience is critical for any brand to generate growth. The target audience is the set of users in the open market that would make the ideal consumer for the product/service.
There was a common misconception that the target user would be the older age group for a brand into medications. But some research done by Pramacity found that this assumption is inaccurate.
They noticed that people of all ages, as low as 15 years and as old as 65 years of age, came into the store. So they used the in-house camera to study each person’s demands, insights, and user behaviors to improve the business strategy.
In a multi-year study of the userbase, the brand noticed two reasons that keep a customer at the physical store. Be it any age group or background; they come to the store for only two reasons:
They found that convenience was a key factor for any store. They looked back at their processes, store infrastructure, and staff to recognize the convenience of the stores.
The first win for Pharmacity was the availability of stores. By having over 1000 stores, it was easy for users to locate an outlet in and every area. They also walked into these branded stores for a sense of familiarity.
The next step became making them “all-in-one-stores.” As a result, Phramcity offers a comprehensive and authentic range of products. They provided all items like medication, vitamins, supplements, personal care essentials, and even FMCG goods that meet short-term needs.
Another excellent addition to improving convenience is the availability of expert counseling. These people helped in the purchase of vitamins and health supplements. In addition, a helpful store employee makes the experience further welcoming.
Lastly, they placed focus on accessibility. Apart from having stores in all regions, it was also essential to keep them open longer and delay the closing time as much as possible. This process ensures that the store becomes a go-to option at any time.
The second important factor that people of all age groups look at was savings and deals. Again, this is a tried-and-tested formula; users select a store where they feel incentivized.
One of the offers that work for the team at Pharmacity is “10% off on Monday.” Such deals can encourage users to come into the store and shop for all their needs in bulk. Another is by regular use of promotions and discounts.
One of the most effective tricks, however, has been the loyalty program.
The loyalty program is a membership and reward system that enables users to avail of discounts, offers, and add-on services. This focus on a digital system led to the success of their pharma chain.
The company launched a mobile application called “ExtraCare app” that enabled this loyalty program.
Here are some of the most prominent offers for the consumer under the loyalty program.
By having various features in a single application, the team at Pharmacity improved retention, gained a higher and more loyal customer base, and scale to business.
The end-user would always offer loyalty to a company that provides benefits, accessible options and remains at the top of their minds. Brands that can strive to achieve these factors will find massive success.
Convenience for the consumer, savings, and a robust loyalty program all help Pharamcity become a leader in its domain and build digital-led growth.