Case Study: More than Price, Pre-final Exam in Retail Management

Betina Jean R. Vitto

Union College of Laguna

Retail Management - MM7

Ms. Czarina Esmerna

December 16, 2020

chain?

The pharmaceutical industry is one of the fastest growing industry in the world. Even

before the pandemic broke out, drugstores are necessary because there can buy products in

maintaining good health cure illnesses.

A drugstore, although never runs out of customers, needs to have loyal customers. A

survey made by Emphatica, a leading provider of Customer Experience Management

solutions based in Canada, reveals that, 60% of consumers are not loyal to any one

pharmacy. People tend to choose additional pharmacies to meet their needs.

According to AccentHealth, a health education media company and Drug Store News, if

price were not an issue, then location and customer service would be the main drivers. A

survey of 745 patients revealed trust and accuracy as additional reasons for customers to be

loyal. So, in order to make the customers choose your store and show them a proactive

health-and-wellness drugstore, there is a need to acquire products that are mostly and often

needed, specifically nowadays where health is very vital. Also, launch a program like

medical missions where you give free checkups and advice to the community where the

store is located, as well as free medicines. It will attract customers and build their trust.

It is important to be as near as possible to the consumers for easier communication. It

would be good to consider deliveries and online stores for your quicker response, bringing

them their immediate needs. Having an expert Pharmacist plays a crucial role too, specially

in promoting the store. With the aid of trained professionals in the industry, comes an

outstanding assistance to the customers. On the other hand, it would be fine to expand the

use of technology. Having A.I.s installed in the store, assistance can go beyond

expectations. A.I.s that can be used by the customers to look for a product, search for data

about the products and be a source of information about different kind of diseases and new

types of illnesses that are emerging. This can be very helpful for it would stop everyone from

being ignorant. This will serve as a guide to avoid the wrong actions and a reminder so
people can be enlightened about a certain disease. It can be an effective technique as well

knowing how lazy today’s people have become, it will attract the customers.

2. What does “transparency” mean with regard to the information provided by

retailers? What grade would you give to the retailers you patronize? Why?

Transparency is the process of being open, honest and straightforward about various

retail operations. It is making available with the customers what information they deem

relevant to their buying decision.

According to Deloitte Consulting, transparency is now the overarching driver in making

purchase decision. In this Age of Information, customers would demand stronger

communication and transparency because it builds trust. And customers only support brand

that they trust specially if the product is food. Patrick Moorhead, chief marketing officer of

Label Insight, said that, 48% of the buyers feel that they are not informed at all after reading

a product label, and, 76% search the internet for more information. I have to agree with this

being me, I love food and I eat a lot, but, I’m very sensitive when it comes to ingredients.

Now, Jollibee, as a store that I patronize, I can say that they are a little less transparent,

just a little. If we go to one of their stores, we can already tell that they are open about their

business. We can see the the products they sell, the kitchen, the service they do to the

customers, and we can clearly see the price of the products. And for me, that’s four stars out

of five. One reason is that I am just not sure of the ingredients particularly their spaghetti and

the gravy. Some says those have pork and others say they do not. They are not transparent

about that because the ingredients are secret and it is just for them. “Secret ingredients” are

very common in the Philippines because they do not want others to steal it and copy them.

So, that’s a sign of lack of information, and I don’t like that when it comes to food. I cannot

eat pork so it made me unsure of buying. Instead, I just go to other restaurant to buy

spaghetti. Moorhead also said that, 64% of consumers are willing to switch to another food

product if they learn about the ingredients. I must say I am one of them.
3. How would you advertise differently to Millennials than to Baby Boomers?

Baby boomer is a term used to refer to individuals born between 1946 and 1964. As of

2016, these individuals have reached the age of 52 to 70, thus, represent the retired and

close to retirement age. This generation is called like so because of significant increase in

birth rates. Millennials on the other side, are individuals born between 1981 and 1996, dates

now clarified by the PEW Research Center. These oldest of these individuals have reached

the age of 34 while the youngest of this generation is of age 12 as of 2016. They are also

called Generation Y or ‘digital natives’, being the first born or first generation in the digital

world.

Millennials being born into the modern age of technology, they are more exposed to

gadgets, computers, and social media. Studies show that, this generation check their

phones as many as 150 times daily. So, in terms of advertising, it would be more effective to

use various channels of social media to reach this segment since they are very much

indulged to the internet.

The baby boomers although old, doesn’t mean that they do not use the internet. In fact,

a Google study found that, 78% of boomers were online by 2013. They use their time in the

internet to research news. But, baby boomers were still the highest consumers of traditional

media such as TV, magazines, newspapers, and radio. Yes, they are trying to adapt to the

new norms but as the saying goes, “old habits, die hard”. it would still be easier to advertise

to boomers through the traditional media channels. They are born in different age, what

works for millennials, may not work for the baby boomers. There are whole lot of things that

they are already used to.

4. Describe the role of in-store displays in terms of the material presented in this case.

Surveys show that a large number of consumers do not look at the ads nor make

shopping list before buying, instead, they make fully unplanned purchases and this indicates

the value of in-store displays. Creative layout and design of a store can also be a driver in
making buying decisions. It may attract customers and initiate them to have impulse

purchases. Either through signage, products that promotes health and wellness, in-demand

clothes or shoes that are put by the glass window, new-release gadgets, shiny jewelries, or

any items that catches the attention of customers.

References

McKesson. (2013, April 11). What Pharmacy Customers Really Want. Health Mart Pharmacy Rx.

https://join.healthmart.com/business-and-operation/swhat-pharmacy-customers-really-want/

Janapala, V. (2020, December 7). 5 Tips for Improving Customer Experience in Pharmaceutical

Industry. Customer Think.https://customerthink.com/5-tips-for-improving-customer-experience-in-

pharmaceutical-industry/

Kappel, M. (2019, Appril 3). Transparency in Business: 5 Ways to Build Trust. Forbes

https://www.forbes.com/sites/mikekappel/2019/04/03/transparency-in-business-5-ways-to-build-tr

ust/?sh=1f4ef58c6149

Salem, C. (June 10). Why Transparency is Important to Business. Christopher Salem.

https://christophersalem.com/why-transparency-is-important-to-business/

Miller, A. (2017, Agust 1). Transparency in Retail. Path to Purchase IQ.

https://pathtopurchaseiq.com/transparency-retail

(2019, March 7). How to Advertise to Baby Boomers. bloomAds.

How to Advertise to Baby Boomers | Bloom Ads

Chen, J. (2020, June 8). Millennials: Finances, Investing and Retirement. Investopedia.

Millennials: Finances, Investing, and Retirement (investopedia.com)

Investopedia Staff. (2020, February 28). Baby Boomer. Investopedia.

Baby Boomer Definition (investopedia.com)

Alot Living. 35 Biggest Differences Between Baby Boomers and Millenials. Alot.

30 Gross Foods Only Baby Boomers Still Think Are Cool (alot.com)

The Douglas Stewart Company. (2013, April 4). The Importance of In-Store Display Solutions. Retail

Connection. The Importance of In-Store Display Solutions | retailconnection (dstewart.com)