1. 1
Growing the pharmacy pie !

2. Agenda
1. Omega Pharma
2. Pharmacy Landscape in Belgium
3. Is there data available in Pharmacies?
4. How retail-driven are we in OTC?
5. Conclusion
2

3. Agenda
1. Omega Pharma
2. Pharmacy Landscape in Belgium
3. Is there data available in Pharmacies?
4. How retail-driven are we in OTC?
5. Conclusion
3

4. 1.Omega
Pharma

5. Omega Pharma at a glance
1987 Founded in Belgium by 2 pharmacists, including Marc Coucke
1994 MBO by Marc Coucke
1998 Expansion in Belgium and IPO at EUR 3.1 IPO price
2000+ International expansion through acquisitions
2007 Transformation into pure-play OTC through IPO of Arseus
2010 Five pillar strategy, matrix structure, reinforced management
Now From pipeline to execution
5

6. Strong geographical coverage
Geographical spread (FY2010 sales)
Present since 1987 (BE)
France Expansion phase 2000-2004 (W EU)
18% Expansion phase 2007-2009 (CEE-CIS)
W-Europe
Emerging 39%
Markets
13%
Belgium
30%
6
Operations in 35 countries

7. From € 23m to € 857m turnover in just over a decade
1200
Arseus carve-out
Pure OTC company
1,007
Start internationalization
1000
814 857
811
800
789
729
600
400
IPO
178
200
23
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Consumer Health Professional Health
7

8. Unique business model – 100% OTC
Push Strategy
 Extensive networking with pharmacists
 Visibility in pharmacies
 Approx. 800 sales reps out of a total of 2,225 employees
 Address the evolving distribution of OTC products (e.g. in grocery stores)
TV advertising
Pull Strategy Educational consumer websites
 Focused TV ads
 Web information
 Consumer education
 Ad hoc promotion campaigns (e.g. Paranix in schools)
8

9. Agenda
1. Omega Pharma
2. Pharmacy Landscape in Belgium
3. Is there data available in Pharmacies?
4. How retail-driven are we in OTC?
5. Conclusion
9

10. 2. Pharmacy
Landscape in
Belgium
10

11. The Belgian Retail / OTC markets cover different
distribution channels
• ‘OTC’’: one flag covering a complex cargo in Belgium:
11

12. OTC Distribution in Belgium
• In Belgium OTC medicines follow • Pharmacy distribution pyramid in
the following distribution path: Belgium:
Pharma Industry
Wholesalers Groups /
Pharmacy chains
Independent Pharmacy
pharmacies chains
: sales flow
12

13. Agenda
1. Omega Pharma
2. Pharmacy Landscape in Belgium
3. Is there data available in Pharmacies?
4. How retail-driven are we in OTC?
5. Conclusion
13

14. 3. Is there data
available in
Pharmacies?
14

15. 3. Is there data available in Pharmacies?
YES - definitely :
¡ SO data per pharmacy/per day/per sku for the most
important Integrated Chains.
¡ CODIMP data
¡ IMS SO data as needed – WD en ND data  cf.
Nielsen.
¡ GfK Data
¡ 70 Salesreps visiting 5-6 pharmacies per day
¡ I-Vox Data
¡ Etc.
15

16. Agenda
1. Omega Pharma
2. Pharmacy Landscape in Belgium
3. Is there data available in Pharmacies?
4. How retail-driven are we in OTC?
5. Conclusion
16

17. 4. How retail-
driven are we
in OTC?
17

18. Most important motors of category growth:
Propensity index
If the index is over 100, the category is very important for
pharmacies.
Closure rate
The percentage of shoppers at pharmacies who buy the category and
have bought it at least once at a pharmacy.
Share of requirement
Indicates loyalty to pharmacy for this category – for households that
buy the category at a pharmacy.
18

19. Most important motors of category growth:
Propensity index
If the index is over 100, the category is very important for
pharmacies.
19

20. Growing the pharmacy pie !
By attracting the “heaviest”
buyers:
 Zoom Health
 Galenco Baby
20

21. ZOOM HEALTH
21

22. Mothers with children are the
“heaviest” pharmacy shoppers
An important moment for mother and child!
Optimal preparation is essential,
because there are factors that can make the first weeks of school less
pleasant…
22

23. Omega Pharma tells mothers how important good preparation is in
23

24. • Lice 
• Colds 
• Boost resistance 
• Warts and verrucas 
• Skin care 
Besides communication, always indicate clearly:
 BUILDING TRAFFIC of the “heaviest” shoppers to the PHARMACY
24

25. Call to action to visit the pharmacy:
Discount vouchers for consumers
to get to know our products!
25

26. 26

27. It‟s often the first products they use at the maternity
hospital that Mothers continue to use for their babies
GALENCO Baby aims all its activity at “POME”:
 Medical team that visits maternity hospital
 Product sets available in the maternity hospital
 Info packages to teach mums how to take care of their babies
27

28. GALENCO Baby sets contain a
LOYALTY card for purchases
at the pharmacy:
 One product FREE
after 5 products purchased
 BUILDING TRAFFIC TO THE PHARMACY
28

29. Most important motors of category growth:
Closure rate
The percentage of shoppers at pharmacies who buy the category and
have bought it at least once at a pharmacy.
29

30. Growing the pharmacy pie !
By increasing the ‘closure rate’
at the pharmacy:
 Bodysol SUN
 Phytosun Arôms
30

31. 31

32. Few mothers who buy sun protection
products buy them at the pharmacy
DNA cells damaged during childhood may
eventually develop into cancer cells!
Mums should be made aware that
optimum protection starts in childhood
Bodysol Sun is going to help mothers
with an educational info guide
32

33. EDUCATIONAL INFO GUIDE
 Aimed at mothers
 How can I protect my children from the sun
pleasantly?
 Unique cooperation with Studio 100
 Reward system with stickers and
cards
GUARANTEE OF
SUCCESS
 motivate children in a
positive way
33

34. EDUCATIONAL INFO GUIDE
 Including a reward system with stickers and cards
to save them on: the child gets a sticker every time
it is ‘creamed’
 Strong visibility in pharmacies via displays
 EXTRA MOTIVATION TO BUY SUN PROTECTION
PRODUCTS FOR KIDS AT THE PHARMACY
34

35. 35

36. Aromatherapy market still
very underdeveloped at pharmacies
Phytosun trains shoppers at pharmacies:
 Small sessions at individual pharmacies by aromatherapy experts
 Opportunity to buy
36

37. Phytosun trains pharmacists :
 Plenary sessions at 7 locations – inc. „reference materials‟
37

38. Make essential oils accessible via diffusers
– combined with starter kits:
 Attractively designed/user-friendly diffusers at accessible price – for „easy‟ access to
aromatherapy
 Combined with starter kit: 4 top selling E.O. with wide-ranging applications.
 INCREASE CLOSURE RATE for aromatherapy
RELAXING MOOD IMPROVING REVITALISING CLEANSING
Lavender abrial Bitter orange tree Lemon Scots pine
38

39. Most important motors of category growth:
Share of requirement
Indicates loyalty to pharmacy for this category – for households that
buy the category at a pharmacy.
39

40. Growing the pharmacy pie !
By increasing the ‘share of
requirement’ at pharmacies:
 Bodysol range displays &
loyalty card
 Galenco Baby category
management & range actions
40

41. 41

42. Bodysol business is much stronger
in the North than in the South (x2)
Visibility is CRUCIAL
for Bodysol:
stimulate
IMPULSE BUYING
based on the unique
“price/quality ratio” :
N: whole range on display ►
48 SKUs (all segments)
◄ S: limited range on mini-display
(16 top SKUs – from core
42 segments)

43. The BODYSOL loyalty
programme:
The aim is to familiarise consumers with
the whole RANGE so that they don’t
limit themselves to repeat buying just
1 type of product
 INCREASE SHARE OF REQUIREMENT
10+1
N: 10+1 free ►
10= 1x DERMO PROTECT
1x BATH or SHAMPOO
8x product of CHOICE
◄ S: 5+1 free
5= 1x DERMO PROTECT
1x BATH or SHAMPOO
3x product of CHOICE
43

44. 44

45. Milk powder is the baby category bought most
often and in the largest quantity at pharmacies
Opportunity to stimulate impulse buys in other baby categories
via this category:
 Group baby milk, hygiene & care products and accessories together
 Clear segmentation and arrangement (less is more)
 Promotions that stimulate range buys
45

46. => GROUP all BABY SUBCATEGORIES
so that purchases of one category can stimulate purchases of the other.
CENTRAL
POSITION
of category
BABY HYGIENE With highest
& SKIN CARE penetration
and frequence : BABY
ACCESSORIES
BABY FOOD
serves as draw
for other
baby category
purchases
46

47. Rearrange baby care
categories:
 Group the various categories
together
 Clear segmentation and signs
so it‟s easy for shopper to choose
 Separate zone for promotions to
stimulate impulse buys
 Build SOR via impulse & grouping
47

48. BEFORE AFTER
48

49. Galenco offers promotions that
stimulate range buying:
 Attractive free gifts when several
varieties are purchased
 Strong visibility in promotional zone or
on the counter
Build Share of requirement by
stimulating range buying
49

50. Agenda
1. Omega Pharma
2. Pharmacy Landscape in Belgium
3. Is there data available in Pharmacies?
4. How retail-driven are we in OTC?
5. Conclusion
50

51. 5. Conclusion
51

52. PGEU

53. PGEU

54. PGEU
11 december 2008 IFB

55. PGEU

56. PGEU

57. PGEU
Conseils

58. 5. Conclusion
Any further questions?
58