INNOVATION Strategies

David Holdford, RPh, MS, PhDProfessor, School of PharmacyVirginia Commonwealth University

Innovate to Differentiate

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Slides to Accompany Chapter 6 of “Marketing for Pharmacists”

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Learning ObjectivesDefine what is an innovation

Describe how pharmacies and pharmacists innovate

Contrast red and blue ocean strategies

Suggest ways that pharmacists can serve customers in innovative ways

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An innovation is…any change in the marketing mix that customers perceive as new

Can be a change in products, services, or processes

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Innovation in PharmacyPharmacy practice not very innovative

– so far

Most changes are incremental

Many changes simply imitate competitors

Thus, pharmacies appear very similar to customers

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Pharmacy Innovation TypesGreater Operational Efficiency – more for less

Enhanced Operational Effectiveness – better, faster

Locking in Customers – it will cost you to leave

Improved Governance – better run

More Convenience/ Access – one-stop-shopping

RED OCEAN VersusBLUE OCEAN Strategies

Rather that compete head-to-head with people offering the same mix of services and merchandise ("Red Ocean")…

…pharmacists can compete in markets that are uncontested and unrecognized ("Blue Ocean").

8Source: www.blueoceanstrategy.com/

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LOOKING FOR BLUE OCEANS

1. Differentiate self from direct competitors

2. Get ideas for indirect competitors

3. Provide simpler alternatives

4. Look at participants other than the end user

5. Provide complimentary products & services

6. Go beyond functional appeal

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1. Differentiate self from direct competitorsDirect competitors offer similar products and services

Pharmaca Integrative Pharmacy integrates natural remedies, herbal supplements, and alternative therapies with modern medical practices and prescription drug therapies.

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2. Get ideas for indirect competitors

Learn from those who provide distinctly different products that solve similar problems.

For example, people still use chicken soup for their colds. What problem does chicken soup solve? How might a pharmacist offer a similar or better solution?

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3. Provide simpler alternatives

Do-it-yourself (DIY)

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4. Look at participants other than the end user

Decision-Making Role

Examples

End User Patients

Decider Physicians, patient, family members, payers, pharmacists, nurses, managed care plans, government (laws, rules), pharmacy benefit managers, employers and others who pay for health insurance

Influencer Physicians, patient, family members, payers, pharmacists, nurses, pharmaceutical industry, managed care plans, wholesalers, government (laws, rules), pharmacy benefit managers, employers and others who pay for health insurance

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5. Provide complimentary products & servicesDrugs & other health care interventions are often accompanied by complementary (or value-added) products or services that facilitate the benefits of the interventions

Pharmacists can identify new complementary service opportunities by considering what happens before, during, and after a visit to the pharmacy or other health care provider

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Use Design

Thinking

Capstone: Tactile Pill Bottles for the Blind

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6. Go beyond functional appeal

Tap into emotions

nostalgia, pride, anticipation, joy, humor, fun

https://en.wikipedia.org/wiki/Wall_Drug

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SummaryPharmacists have traditionally copied their

competitors to compete for customers

Blue Ocean pharmacists seek new markets that are underserved or ignored

SEE ‘MARKETING FOR

PHARMACISTS FOR

MORE DETAILS

D HOLDFORD