It would not have been possible to write this thematic paper without the help and support of the kind people around me, of whom it is only possible to give special mention here. I would like to acknowledge the academic and technical support provided by the College of Management, Mahidol University (CMMU) and its staff; Ms. A STUDY INTO THE EFFECT AND ADAPTIVE APPROACH OF INDEPENDENT DRUGSTORE BY EXPANDING CHAIN DRUGSTORE.
The purpose of this research aims to study the effect of independent pharmacy due to the expansion of chain pharmacies and to study the adaptive approach of stand-alone pharmacy against the change. And the result shows that the adaptive approach of stand-alone pharmacy against the change, which includes increased product range, delivery of quality service, store presentation, customer engagement, implement system and create promotion. This is shown in Figure 1.1, partly due to the expansion of the chain store pharmacy due to the potential of the business and growth opportunities due to increasing demand in the domestic pharmaceutical market.
The opening of the ASEAN Free Trade Area (AEC), as well as the change in legislation and regulations, directly affects the pharmaceutical profession.
Objectives
Scope of study
LITERATURE REVIEW
- Factor influence trend of drug store
- Environmental factors changed consequently, the consumer behavior has changed
- The opening of ASEAN Free Trade Area (AEC) has made the market larger. Demand for medicines is more
- Law and regulation
- Consumer behavior
- Factors Influence consumer buying behavior
- Personal factor
- Psychological factors
- Key success factors of retail business
- Market position
- Stock control
- Capital management
- Understand your target
- Location and distribution channels
- Customer centric
- Buying decision process: The five stage model
- Perceived problems
- Information search
- Evaluation
- Decision making
- Post purchasing behavior
They may seek to join the pharmacy business with neighboring countries, which is one of the opportunities for expansion. And it also studies the effect and impulse on the consumer from groups such as family, friends and society in general. Since the credit card company offers many options, such as installment payment with zero percent interest or collect points for every purchase.
Since they are needed to plan to cover the cost of keeping the debt collection and the bad debt allowance. End consumers need unique products to satisfy their satisfaction, such as services or products that can adapt or change the characteristics of the customer. Example as design of the pillow depends on age of user, head sizes and personal preferences vary between individuals.
There are many factors that make a product sell well, such as product or service quality, price, and advertising. Let the consumer know the difference between the ideal (Ideal) and the reality (Reality), such as a woman with a normal weight of 60 kg and a height of 160 cm, according to the standard or the ideal. To solve a problem, people always look for something close to them, a problem like the lack of printing paper.
The second phenomenon is caused by the fact that marketers cannot create serious problems in the minds of consumers, such as overweight consumers who want to take weight loss courses and look for many weight loss institutions. So good marketers must choose the right time to advertise, for example for water heaters in winter and air conditioning in summer. The consumer is aware of the different brands, after which he compares and judges which one is better.
The way to reduce the risk, such as company reputation, product warranty, product quality, target customer. If they are satisfied, consumers are aware of the benefits of the product, which leads to repeated purchases, or can introduce to new customers (word of mouth).
RESEARCH METHODOLOGY
- Overview
- Data Collection
- Interview Process
- Questionnaire (quick survey)
- Data analysis tool
In order to find out the answer to the research question, I chose an in-depth interview for data collection, as it allows the respondent to answer the question without limiting their opinions. Because they can provide information at the time they become branches of the pharmacy chain. The aim of this question was to examine the impact and adaptive approach of an independent pharmacy with the growing number of chain drugstores in Bangkok.
The second part is an in-depth question, which is concluded by 5 main questions and probe questions. The first in-depth research question is "At present, foreign companies operating a modern chain store have entered the business and established chain stores in Thailand. Has your store been affected by the expansion, and will these impacts be the advantages or disadvantages of your store?" The purpose of this question was to define whether the respondent had an effect when expanding the store chain.
The second in-depth research question is “In terms of counterbalancing large-quantity purchasing. Do you think chain drug store has more power and what is your bargaining power over the drug company?” The purpose of this question was to determine how independents obtain their bargaining power and take advantage of that power to overcome or compete with chain druggists. The third in-depth research question is “As consumers' behavior changes, they prefer to shop in department stores rather than stand-alone stores.
The fourth in-depth research question is "What is your store's competitive or adaptive approach to drugstore chain expansion due to this effect?" The aim of this question was to find out how flexible the store's approach is and what they refer to. The fifth in-depth research question is "What do you think is the key success factor or strength of your store?" The goal of this question was. For the process of analyzing data obtained through in-depth interviews, the researchers obtained data from in-depth interviews.
RESEARCH FINDING AND DATA ANALYSIS
- General information of respondent
- Affected from expansion of chain-drugstore
- Bargaining power of stand-alone drugstore
- Adaptive approach of stand-alone drugstore
- Customer engagement
- Customer service
- Implement system
- Increase product variety
- Store presentation
- Set up promotion
- Data analysis
- Key success factor of stand-alone drugstore
- Strategy to adaptive approach
- Recommendation
But this factor has little effect stand-alone, because the manufacturer / importer will focus on expanding markets to overseas and new customers. Since the opening of the pharmacy must comply with the Drug Act 1967, one pharmacist is responsible for a shop, which is one of the obstacles for the chain pharmacy. Individual pharmacies are required to seek knowledge or find their own pharmacy marketing ideas to compete with pharmacy chains.
A stand-alone pharmacy focuses more on providing information to customers, includes pharmacist knowledge, customer history recording. It is very good if the product or brand is not yet sold in a pharmacy chain in order to differentiate yourself from them. Because the reason for a customer to come to an independent pharmacy, in addition to the price and the complete list of medicines, is the service.
Creating a pharmacist community network for future expansion of chain drug store to community or local area. Wiritthipol, 2016). Independent pharmacy must focus on the product that can compete with chain pharmacies. Agility or ability to change quickly and easily in the management of pharmacy, first standalone pharmacy able to set retail prices by getting profit they need or even lower the price in some cases.
In addition, the pricing of the chain pharmacy is set by the price arrangements with the supplier that sets the lowest price for medicine that the chain pharmacy can sell. Second, standalone pharmacy can set up promotions faster than the chain pharmacy with many processes. Since independent pharmacy has less bargaining power over suppliers, especially newcomer independent pharmacy cannot compete on price with chain pharmacies or old independent pharmacy, because a long and good relationship between them and quantity of purchase.
DISCUSSION AND CONCLUSION
Discussion
And from the interview respondent: “One of our KSF is location since we closed one store because sales are very low. But this factor is not included in the adaptive approach, because the owner has to decide first. To solve this problem, increase the variety of products or change the distribution channel, one of the respondents said: "We have a Facebook page that sells the non-drug product".
And in customer focus, the owner did not ask his customer to collect the data, but one of the respondents ordered a product for a customer when their request from the interview “I didn't stock different types of products because the pharmacist should be the one making the decision or prescribe medicine'. From the findings of the research, it can be seen that the independent pharmacy tries to adapt according to the factors that follow and are related to the 6 P's of retail marketing. Second, line product extensions of this product type are similar to the core product but different in function.
But can refer to how your store displays and visual merchandising plan within the store. You need to make sure that your displays act as "silent salespeople" as they can create an impulse to purchase and lead to the success of your business. Store should basically understand the basics of store layout and display, including customization zones, hot spots, effective signage and more and also customize the store presentation.
People – People refer to people who connect with your sales and work for your organization on the sales floor. Your staff are the face of your store and your brand, they represent your store. Pixel & Phone – In an era of “new media” where consumers spend time online and on their phones while shopping, it is critical that retail marketers focus on engaging customers where they are across social networks, e- e-mail and the Internet.
Conclusion
And discover the independent pharmacy's adaptive approach to change that includes increasing product range, providing quality service, in-store presentation, customer engagement, system implementation and promotion promotion ranked by most applied for less application.
Limitation
APPENDICES
Currently, foreign companies operating modern retail chains have entered the industry and set up retail chains in Thailand. Has your store been affected by the expansion and will these consequences be advantages or disadvantages of your store? The retail chains in Thailand will be able to negotiate with manufacturers/importers because they purchase large volumes.
Do you think the drugstore chain has more power and what is your bargaining position vis-à-vis the pharmaceutical company? What do you think of the changes in customer behavior and do they affect your store? As a result of that effect, what is the competitive approach or the adaptive approach of your store with drugstore chain expansion?
