Apotek 1

Growth through marketing optimization

Apotek 1 is Norway’s largest pharmacy brand. Apart from prescription drugs, skin care is arguably the most important category for pharmacies. The competition in the category is intense, with pharmacies, perfumeries, clothing and grocery stores and new online businesses all competing for the same customers. In 2011 pharmacies’ revenue share in skin care had declined, after only modest growth during the previous years. Marketing Clinic helped Apotek 1 restructure and optimize marketing efforts to ensure competitiveness in the skin care category.

The Outcome

Based on market insights on key needs among different consumer segments, Marketing Clinic helped Apotek 1 introduce several important changes to their marketing efforts; from optimizing creatives and changing the media mix to redesigning instore layouts and displays. Apotek 1 experienced revenue growth of 10,3% in 2012, with 8,3% coming from organic growth directly linked to the marketing optimization initiatives. This far exceeds the general market growth, which was only at 1%.

description

Fusing of different insights streams

Different insight streams came together as a foundation for marketing optimization. Usage situations and consumer segments were analyzed to get a deep understanding about purchasing behavior and key perceived strengths and weaknesses in the current offering of Apotek 1. Sales modeling was conducted to understand how own and competitors’ communication and marketing efforts impacted in-store sales. The holistic view this created was key to developing a coherent set of initiatives to increase competitiveness.

Challenging the status quo

Based on the market insights, Marketing Clinic helped Apotek 1 take a critical look at established assumptions on how to best promote and trigger sales in the skin care category. A new creative concept was introduced, where real customers were casted to create a warm, customer-oriented angle, a change from the previous generic and product-oriented focus. Apotek 1’s marketing budget stayed constant, but was restructured, with a larger share allocated to advertising. The media mix was consolidated to three channels only (TV, DM and digital), rather than the previous six channels. Several changes were introduced in-store to declutter and improve the store layout and create distinct and clear signage to promote skin care products. All efforts were coordinated to ensure a consistent image across different marketing channels.

The keys to success

Apotek 1’s growth was unlocked through the merging of different key insights streams, a willingness to take a critical look at unspoken organizational assumptions and ingrained ways of working. Finally, success was unlocked by Apotek 1 investing time and effort into a series of concerted initiatives to deliver on the marketing plan.