Customer behavior analysis

by Associate Professor Mrs. Galina Mladenova

Bulgarian pharmaceutical market volume

• Y 2003 – EUR 174 million
• Y 2004 – EUR 200,6 million (15.28% increase)
• Y 2005 – EUR 220 million (79.67% increase)
• Y 2004 – ÎÒÑ –EUR 29 million (13.18% of the total market volume)

Total number of pharmacies in Bulgaria

• Y 2003 – 3000
• Y 2004 – 4200 (140% increase)

Key factors that determine pharmaceutical market development dynamics:

• The development of self-healthcare consciousness and the “body beautiful” cult;
• Change in perception of the definitions of “health” – not only as a state of “lack of disease symptoms” and transition to “physical and mental state of health and fitness to the environment”;
• Increase of customer knowledge regarding pharmaceuticals;
• New methods of communication with customers, educational activities, vast marketing and advertisement campaigns, development of the so called loyalty marketing, establishment of new public relations;
• Increase in number of patients with chronicle illness;
• Developments in the healthcare system;
• Technological and Research & Development modernization;
• Intense market competition;
• Demographic changes and their consequences;

Customer behavior analysis regarding pharmaceutical products.

Customer behavior analysis aims at characterizing customer as a person influenced by several key factors in his decisions regarding purchase of pharmaceuticals and services. Such analysis constitutes from:

• Personal characteristics;
• The process of decision-making;
• Environment key factors and their influence on customer preferences and final decision;

Such factors may be the advertisement, various types of sales promotions, individual sales

• Price discounts, discount schemes and credit cards;
• Áåçïëàòíè îáðàçöè (òåñòåðè- çà êîçìåòè÷íè ïðîäóêòè)• Free samples (testers, when it comes to cosmetics);
• Consults and alternative products;
• Additional service and activities such as various types of merchandizing, health information leaflets, preparation and package of single doses, 24/7 on-line and phone consults, drug presentations, door-to-door deliveries to immobile or disabled patients, e-commerce etc.
• Front- of- shop pharmacy organization;
• Mass media advertisements;
• Popularity and credibility of the product;
• Credibility and popularity of the drug manufacturer;
• Promotions presented by a specialized consultant in pharmacies;
• Loyalty programs.

Common reason for a customer to change his mind

• Unacceptable price;
• Unavailability of the requested pharmaceutical product in stock;
• Consult and/or a recommendation by the pharmacist (in 28% of the cases, pharmacists influence customers’ decision on whether to by an alternative medicines);
• Discounts offered;
• Available advertisement brochures at the pharmacy marketing room;

What forms customer’s satisfaction with his pharmacy?

• Base potential of the pharmacy – optimum availability, adequate portfolio, proper stock management;
• Professional qualification and consulting skills;
• Excellent knowledge and skills in modern marketing and trade techniques;
• Establishment and development of long-term relations.

Requirements for the successful pharmacist.

• To understand and show respect towards customer needs - 60% of the inquiries refer to a certain product, 40% search for a medicine for treatment of certain conditions;
• To adequately recommend safe and correct usage of the drug.
• In case of refusal to recommend the best alternative i.e. the closest substitute;
• To be precise and accurate when interviewing customers;
• To be polite, open-minded and discrete in general;
• To form a solid information exchange relation;
• To be able to make combined sales;
• To manage adequately the inner space of the pharmacy and properly display the new products and advertisement materials;
• To be able to differentiate separate market segments and to prepare a specific set of measures in order to increasing and maintaining the number of clients;
• Extend his client portfolio by prevailing on his competitors;
• Promoting OTC medicines such as vitamins & minerals, nutritional healthcare products, homeopathic products etc., which would eventually lead to sales increase
• Maintaining loyalty schemes in order to prevent loss of clients;