How we are prescribed by our distribution channel versus our competitors?
Client: Pharmaceutical Corporation
A global leading brand in the pharmaceutical industry began to lose market share in Spain, after years of implementation in a specific range of cosmetic products despite having many interesting partnership agreements with distributors. The company management decided to investigate how the distribution channel prescribed their brand over competitors in the cosmetics segment, engaged the services of Mr. Wat.
Along with the marketing department of our client, Mr. Wat selected a total of 80 outlets located throughout Spain according to the following criteria: higher market share loss percentages, estimated turnover of distributors and those places where trade agreements were more attractive for distributors.
In the period of one month Mr. Wat survey team carried out the fieldwork, analyzing and recording over 50 attributes related to the commercial prescription and positioning respect to competitors.
Once aggregated and analyzed all the feedback and comments, the following conclusions were drawn:
Staff of the distribution channel unknown the attributes of the cosmetics of the brand so they recommended the products of the brands they know best.
Contrary to expectations some dealers offered primarily competitor brands rather than the brand of our client even when trade agreements were in force.
Advertising of competitors in the retail outlets was more present and visible.
In cooperation with our client we design an action plan consisting mainly in three types of measures to provide answers to the above questions:
Training plan for sellers in the distribution channel to present the features and benefits of the products.
Distributors selection, reduction of trade agreements improving economic conditions to increase channel loyalty.
Increased advertising campaigns at the outlets to influence the moment of purchase.
After three months following these actions, the market share indicators began to grow. Within nine months recovered previous market share and reached annual budget objectives.