New Store Design: Pharma Plus - Focus on Differentiation

Pharma Plus is a member of the fastest growing drug channel retail group in Canada - Katz Pharmaceutical Services Inc. (KPSI).

Design Vision's work with KPSI was initiated through work being done by DV with one of the KPSI key vendors - Kodak. This work stream is focused on the creation of a unique "experience based" film zone within Pharma Plus that will both increase sales and build loyalty. (More on this work in an upcoming issue.)

As KPSI came to understand the intent and unique approach to the Design Vision work with Kodak, they wanted to extend the work to other areas of their stores.

Early research about the Pharma Plus brand highlighted the potential value of this initiative. It showed that, while their positioning is clearly value focused, there is also a large percentage of customers across all segments who are "silo" customers - who buy only one category on a regular basis. This suggests that there is limited emotional appeal, and that the store experience tends to discourage the exploration that builds cross-basket sales.

While the prime competition is busy building a "larger box" versions of their stores, there is an opportunity for PharmaPlus to focus on the core strengths of its community scaled banner, and at the same time deliver a cleaner, more highly differentiated presentation with dynamic, zoned offerings.

This is what the new store design does: create differentiation. In this case it delivers an overall store experience that continues to attract existing customers - delivering clear value to core segments while encouraging them to shop more categories at the same time as inviting those segments that are less value and more experience focused to consider the Pharma Plus offering as a credible and reliable offering.

A good example is confectionery, where there is a strong opportunity to enhance core profitability. Again, the goal here is to create a zone that stands out, has more of a fun (emotional) quotient, and that will actually deliver a positive brand memory - at the same time as driving impulse.

The new store has been designed around the principle of clarifying and differentiating the brand value proposition through design: continuing to offer value, while improving and highlighting selection, service, and the ease of getting in and out quickly.

Design Vision- Positioning our clients for the future

"All businesses that compete effectively against other businesses over an extended period of time do so by differentiating themselves from those business. Managing that differentiation is the essence of long term strategy."

- Bruce Henderson, Boston Consulting founder

Delivering that differentation is our job. Now in our 15th year, Design Vision continues to work with leading clients in mass consumer retail assisting them to take advantage of opportunity today, while helping position them for the future.

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