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A Study on Consumer Perception Towards the Services of Retail Pharmacy Chain

A Study on Consumer Perception Towards the Services of Retail Pharmacy Chain

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Published by: Pradeep Raj Gadhadar on Feb 19, 2013
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Sections

  • Introduction
  • The Indian Retail Market
  • Pharmacy retail in India
  • Pharmacy retail scenario
  • Retail pharmacy chains “More than medicines”
  • Literature review
  • Research Methodology
  • Data Analysis
  • Factor Analysis
  • Reliability Analysis
  • Conclusion
  • Bibliography
  • Annexure

A study on consumer perception towards the services of retail pharmacy chain

Introduction

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A study on consumer perception towards the services of retail pharmacy chain

COMPANY PROFILE

Calibar Pharmaceuticals Pvt. Ltd

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A study on consumer perception towards the services of retail pharmacy chain

Calibar Pharmaceuticals – a company truly dedicated to Healthcare! At Calibar Pharmaceuticals, their focus is on developing medicines that are of highest quality as well as affordable to the patients. They are at the forefront of providing quality pharmaceuticals that improve the quality of lives and help people live longer and better lives. They are a leading pharmaceutical company with a broad spectrum of innovative medical solutions. For more than 15 years, they have been active in the discovery and development, manufacturing and marketing of novel healthcare solutions. Their products bring significant benefit to the patients. Calibar Pharmaceuticals also plays a pioneering role in personalized healthcare and is providing the products which are tailored to the needs of specific patient groups.

They follow the international quality standards like WHO CMP, Schedule ‘M’, USM PSA, USA PSA as well as ISO 9001-2000

Your One Stop Source for Pharmaceutical Formulations Calibar Pharmaceuticals is proud to introduce itself as a one-stop supply for all the pharmaceutical formulation requirements. Nationwide customers can count on Calibar for products of consistent quality, cGMP compliance, on-time delivery, world class manufacturing procedures and most of all its cost efficiency.

Wide Range of Products Calibar manufactures a wide range of pharmaceutical formulation products in virtually all dosage forms. Calibar welcomes distributors, importers and agents who can be helpful to introduce products in their markets. cGMP certified quality assurance procedures guarantee a peak performance of all products. Calibar provides vast range of services as well as prompt and reliable assistance for all our clients.

Offers Quality Calibar’s quality focus encompasses all areas of operation – right from procurement of the best raw materials, to optimum manufacturing technology, to precise delivery of the customer’s requirements – thereby ensuring a rapid effect. Established in 1999 Calibar Pharmaceuticals is one of the leading pharmaceutical companies in India.
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development. The wide range of products include. • Gynaec & nutritional.A study on consumer perception towards the services of retail pharmacy chain Calibar Pharmaceuticals is an integrated pharmaceutical company and our purpose is to provide affordable medicines. • Anti-biotic's. Calibar Pharmaceuticals excels in providing healthcare solutions designed to fight diseases in major therapeutic areas. manufacturing and supply of medicines that aim to make difference in healthcare Sector. • Anti-cold. They follow all the international standards of quality control like WHO CMP. It is ISO 9001-2000 Certified Company All their products are trademark registered Page 4 . We are engaged in the research. • Anti-fungal & skin care. QC / QA have adequate qualified and FDCA approved technical personnel. USM PSA and USM PSA. • Anti-malarial. The production. • Soaps and more. expectorant & decongestant. Key Facts It is based in India. They have a ‘state of the art’ manufacturing plant. • Anti-ulcer & anti-emetic. • Anti-inflammatory. Calibar Pharmaceuticals possesses one of the broadest product offering. at Surat (Gujarat) with our offices across India with head office in Surat. The manufacturing facilities comply with Schedule "M". a highly focused brand portfolio and an industry leading distribution network. They have a separate R&D (Research and Development) Department which works round the clock for the development of new medicines. Surat is given marketing department of the company.

business associates as well as employees and work to earn their trust every day. Commitment – We are committed to our customers. affordable new pharmaceutical products to the market. We stand behind our products and take ownership of our efforts to bring safe. allowing us to achieve the highest possible standards in our processes. products and services.A study on consumer perception towards the services of retail pharmacy chain Vision & Mission Vision The vision of Calibar Pharmaceuticals is to become the leader in Indian Pharmaceutical Industry by providing high quality and affordable medicines. communities and the environment. Innovation – We feel nothing is impossible and that is why our employees take it as a challenge to make a difference in our company and in the products we bring to market. We continuously seek new solutions to meet the current and future needs of our customers. driven by the unyielding desire to execute on our mission and to achieve our corporate vision. We adhere to the highest ethical standards of business conduct. Page 5 . customers. This commitment is reflected in our business ethics. management culture and our social responsibility. We want to become a Global Brand with our commitment and dedication. This commitment extends to every one of our operations. Mission The mission of Calibar Pharmaceuticals is to create added value in healthcare industry by focusing on our expertise in Pharmaceuticals. We are passionate in our pursuit of excellence. Values Accountability – We are honest and respectful in our actions. protecting the best interests of employees.

Industry Type: Form of organization: Phone No: Fax: Mobile No: Email: Web site: - Pharmaceuticals Private organization +91-261-6541556. 2642432 +91-261-2640529 +919825136408. New Octroi Naka. info@calibarpharma. Dist. Opp. Saroli.com www.A study on consumer perception towards the services of retail pharmacy chain General information:Name of the company: Year of establishment: Corporate Office: Calibar Pharmaceuticals Pvt. Ltd 1999 16/17. Royal Township. India.com Page 6 . Surat-Kadodra Road.calibarpharma. Surat 395 010 Gujarat.

and also the privately owned large retail businesses. but are mostly found in the central business district. hand cart and pavement vendors. sometimes it is done as a recreational activity. owner manned general stores. or in a shopping center or mall. It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). in small or individual lots for direct consumption by the purchaser. paan/beedi shops. shopping streets with few or no houses. In the U. Page 7 . etc. Recreational shopping often involves window shopping (just looking. shred. clip and divide" in terms of tailoring (1365). that is. Organized retailing refers to trading activities undertaken by licensed retailers. Sometimes this is done to obtain necessities such as food and clothing.A study on consumer perception towards the services of retail pharmacy chain Retailing:Retail comes from the French word retaillier which refers to "cutting off. on the other hand. such as a department store or kiosk. Retailing consists of the sale of goods or merchandise from a fixed location. In commerce. Retailing may include subordinated services. Its literal meaning for retail was to "cut off. Retail establishments are often called shops or stores. not buying) and browsing and does not always result in a purchase. etc. and then sells smaller quantities to the enduser. Shopping streets may be for pedestrians only. Like the French. those who are registered for sales tax.. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. income tax. also known as e-commerce is the latest form of non-shop retailing (Like mail order). Retailers are at the end of the supply chain. These include the corporate backed hypermarkets and retail chains.S. such as delivery. Online retailing. Shops may be on residential streets. or by post. paring". Unorganized retailing. a retailer buys goods or products in large quantities from manufacturers or importers. convenience stores. the local kirana shops. retailers often provided boardwalks in front of their stores to protect customers from the mud. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Shopping generally refers to the act of buying products. refers to the traditional formats of low-cost retailing. either directly or through a wholesaler. for example. the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities or items.

A study on consumer perception towards the services of retail pharmacy chain The Indian Retail Market Page 8 .

Westside (Tata Group) and Lifestyle International. RPG Retail. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. the market is growing. The Indian population is witnessing a significant change in its demographics. In the last few years. Page 9 . The whole concept of shopping has altered in terms of format and consumer buying behavior. Shoppers Stop.A study on consumer perception towards the services of retail pharmacy chain Retail is India’s largest industry. were keen to enter this growing market. accounting for over 10 % of the country’s GDP and around 8% of the employment. Carrefour SA. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. foreign retailers like Wal-Mart. despite the Indian retail sector being closed to foreign direct investment (FDI). However. Given the attractiveness of the Indian retail sector. groceries and clothing to lifestyle categories that deliver better quality and taste. break even is difficult to achieve and many of these players have not tasted success so far. The Indian retail industry though predominantly fragmented through the owner -run " Mom and Pop outlets" has been witnessing the emergence of a few medium sized Indian Retail chains. Modern retail has entered India as seen in sprawling shopping centers. Indians have gone through a dramatic transformation in lifestyle by moving from traditional spending on food. A large young working population with median age of 24 years. Modern retailing satisfies rising demand for such goods and services with many players entering the bandwagon in an attempt to tap greater opportunities. nuclear families in urban areas. ushering in a revolution in shopping in India. the UK's largest retailer. government policies are becoming more favorable and emerging technologies are facilitating operations. Europe's largest retailer and Tesco Plc. Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. But because of the heavy initial investments required. Retailing in India is gradually inching its way toward becoming the next boom industry. The retail industry is divided into organized and unorganized sectors. the future is promising. along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. multi-storied malls and huge complexes offer shopping. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in size. namely Pantaloon Retail. Retail industry in India is at the crossroads. entertainment and food all under one roof.

The enormous growth of the retail industry has created a huge demand for real estate. 300 malls are estimated to be operational in the country. The organized retail market is growing at 35 % annually while growth of unorganized retail sector is pegged at 6 %. Organized retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. India will need additional retail space of 700. maintaining its position as the most attractive market for retail investment.000. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.000 m²) as compared to today. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years.000 sq ft (46. Ltd. leaving a gap of 500. India has topped the A.000.8 million Households in India have an annual income of over 45 lakh. The Retail Business in India is currently at the point of inflection. Page 10 . Indian retail density of 6 percent is highest in the world. The Indian economy has registered a growth of 8%. Current projections on construction point to a supply of just 200..000 m²). Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year.000.000 m²) that needs to be filled.19 m²)/ person is lowest in the world.A study on consumer perception towards the services of retail pharmacy chain Growth of retail in India: An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors.000.000 sq ft (19. It is a huge industry in terms of size and according to management consulting firm Technopak Advisors Pvt.000.000 sq ft (65. it is valued at about US $ 350 billion. Property developers are creating retail real estate at an aggressive pace and by 2010.T.000 supermarkets projected to come up by 2011.000 hypermarkets and 3. at a cost of US$15-18 billion. Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. With over 1. 1.000.

Consumers in the status category buy because they need to maintain a position in their social group. washing machines. camcorders. Indulgence-oriented. and gaming consoles. Music & Gifts: 3% Mobile Handsets: 3% Clothing & Textile: 39% Food & Grocery: 11% Consumer Durables: 9% Footwear: 9% Furniture & Furnishings: 8% Catering Services: 7% Jewellery & Watches: 7% Others: 4% The Growth Drivers The Indian Retail growth can be attributed to the several factors including Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age.A study on consumer perception towards the services of retail pharmacy chain Looking further into consumer buying habits. The break-up of organized retailing sales into various product categories: Books. it is primarily the status oriented segment that contributes largely to the retailer’s cash register. When it comes to the festival shopping season. Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise in spending power. Status-oriented 2. Indulgence-oriented buying happens with those who want to enjoy life better with products that meet their requirements. and iPods. Indulgence-oriented products include plasma TVs. CTVs/LCDs. dishwashers. purchase decisions can be separated into two categories: 1. high-end digital cameras. refrigerators. Page 11 . microwave ovens and DVD players fall in the status category. state-ofthe-art home theatre systems.

covering distances has become easier than before. technology evolved rapidly to support this growth. the items in the cart are hit with laser beams and scanned. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. All that the consumer has to do is to pay for the goods. if he or she sees value in shopping from a particular location. Urbanization: Increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers.A study on consumer perception towards the services of retail pharmacy chain Plastic Revolution: Increasing use of credit cards for categories relating to Apparel. use pre-stored data to calculate the cost and generate the total bill for a client. Page 12 . Technology in Retail : Over the years as the consumer demand increased and the retailers geared up to meet this increase. Covering distances has become easier: With increased automobile penetration and an overall improvement in the transportation infrastructure. Consumer Durable Goods. Customer Interfacing Systems • Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item. In a matter of seconds. Now a customer can travel miles to reach a particular shop. Food and Grocery etc. The hardware and software tools that have now become almost essential for retailing can be divided into 3 broad categories. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale.

all the way from raw material suppliers right through to the retail shelf. • Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain. along with the various available CRM (Customer Relationship Management) Systems. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business.A study on consumer perception towards the services of retail pharmacy chain • Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. the retailer voids it and hands it back to the consumer along with a receipt. getting his supplies on time. monthly forecasting. • Internet Internet is also rapidly evolving as a customer interface. An integrated supply chain helps the retailer in maintaining his stocks. mail order and the Internet has provided retailers with real access to consumer data. Electronic cheque conversion. removing the need of a consumer physically visiting the store. having digitally captured and stored the image of the cheque. weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. This. These APS packages complement existing (but often limited) ERP packages. preventing stock-outs and thus reducing his costs. allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses. while servicing the customer better. Page 13 . Operation Support Systems • ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution. which makes the process very fast. They enable consolidation of activities such as long term budgeting. a recent development in this area. Rather than manually process a cheque. front and back office store systems and merchandising. • CRM Systems The rise of loyalty programs.

Investment Opportunities • Potential for Investment: The total estimated Investment Opportunity in the retail sector is around US$ 5-6 Billion in the Next five years. Mumbai. Ahmedabad. Chennai. • Sectors with High Growth Potential: Certain segments that promise a high growth are Food and Grocery Clothing Furniture and Fixtures Pharmacy Durables. Coimbatore. Today. Delhi.A study on consumer perception towards the services of retail pharmacy chain Strategic Decision Support Systems • Store Site Location Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. • Location: With modern retail formats having made their foray into the top cities namely Hyderabad. Nagpur there exists tremendous potential in two tier towns over the next 5 years. Pune. • Visual Merchandising The decision on how to place & stack items in a store is no more taken on the gut feel of the store manager. Watch & Jewellery Page 14 . Footwear & Leather. Bangalore. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options. software packages are helping retailers not only in their location decisions but in decisions regarding store sizing and floor-spaces as well. The SPACEMAN Store Suit from AC Nielsen and ModaCAD are example of products helping in modeling a retail store design.

attempting to provide farmers a one-stop destination for all of their needs. There has been yet another initiative by the DCM Sriram Group called the ' Hariyali Bazaar'.A study on consumer perception towards the services of retail pharmacy chain • Fastest Growing Formats: Some of the formats that offer good growth potential are: Specialty and Super Market Hyper Market Discount stores Department Stores Convenience Stores and E-Retailing Supply Chain Infrastructure: Supply chain infrastructure in terms of cold chain and Logistics. with Corporates and Entrepreneurs having made a foray in the past.that has initially started off by providing farm related inputs and services but plans to introduce the complete shopping basket in due course. India's largely rural population has caught the eye of retailers looking for new areas of growth. These new-format cash-and-carry stores attract large volumes from a sizeable number of retailers who do not have to maintain relationships with multiple suppliers for all their needs. • Rural Retail: Retail sector offers opportunities for exploration and investment in rural areas. ITC launched the country's first rural mall 'Chaupal Saagar'. Page 15 . German giant Metro AG and South African Shoprite Holdings have already made headway in this segment by setting up stores selling merchandise on a wholesale basis in Bangalore and Mumbai respectively. offering a diverse product range from FMCG to electronics appliance to automobiles. Wholesale Trading: Wholesale trading also holds huge potential for growth.

A study on consumer perception towards the services of retail pharmacy chain Pharmacy retail in India Page 16 .

convenience and prices. fast moving healthcare products and some FMCG products sold through the chemists across the country. It’s a highly lucrative market with high margins that require low investment. 5 pharmacy chains control 40% of the sales in the US. While all the formats of retailing have changed. Pharmacy retailing has seen consolidation world over. The changes in the next 5 years in this business will be more than what has happened in the past 55 years. The Rs. But that’s cosmetic. Pharmaceutical Retail just got an image makeover. Margins are decent and returns are good. it’s a whole new look. Now retailing has changed it to leisure and pleasure & it’s become more of an outing for the entire family. constituting mainly the neighborhood chemist that sells medicines and OTC drugs along with other medical equipments and accessories. be it apparel retailing. So Indian customers fed-up and resigned to spurious.7 bn (Ref: IMS Health) and includes all the pharmaceutical products. The total market size is US $ 5. A similar situation prevails in most developed nations around the world. somehow pharmacy retailing has not undergone changes.48. up from 10% in 1985. So the scope of educated people getting into the same is higher. An average family spends 20% of its monthly wallet spend on health care. The pharmacy retail sector is set for a shakeup and consolidation with many organized players investing long term in it. grocery retailing. new pharmacy stores boast of excellent in store display. Earlier shopping was considered a headache involving running from pillar to post. Much like the beauty products hitherto sold off industry shelves promised. Page 17 . Some of the change is driven by market characterized by low entry barriers and capital requirements. For one. unorganized players. This is a need driven business and every family requires medicines / health related goods. ambience. Doctors are getting into this business. 7 pharmacy chains control more than 60% of the market in UK. 000–crore Indian pharmacy sector is dominated by the highly fragmented. fuel retailing or jewellery retailing.A study on consumer perception towards the services of retail pharmacy chain The Indian pharmaceutical market is the world’s 13th largest in terms of value and the 4th largest in terms of volume. expired or poorly stored drugs are offered an option. What is intrinsic is that they also promise better quality.

Prevalence of spurious or counterfeit drugs is high with estimates ranging from 5% to 30% of the market. However the business and the landscape are changing. The pharmacy market is growing at 27% annually and revenue from pharmacies is expected to touch 50. This is going to bring about a big change in the customer’s perception. there could not be a better time for the changes in pharmacy retail. While India can be considered as a developed country for IT. Europe and China put together for a pharmaceutical market size which is less than a percentage of their combined market. the Indian Pharma retail with approximately 5. this being a cash business offering fake bills to regular customers. With internet being used at a much lower level in India. Number of local pharmacies in India is more than that of US. This is high penetration compared to other similar countries. Health care and Pharma are still looked upon as developing areas. When we compare with China. Corporates and organized pharmacies will have to drive the change like Apollo did in 1987 and the ‘Dial for Health’ initiative by the Zydus group.00. making the efficacy of the medicines questionable.A study on consumer perception towards the services of retail pharmacy chain There are currently over 8. internet pharmacies may be the order of the day 5 to 10 years from now. With India becoming a major destination for medical tourism. cost and service levels in pharmacy retailing.000-crore by 2010. The future of pharmacy retailing is in for a big shakeout from all the three stakeholders. the retail medicine business cannot remain unaffected. The drugs are stored in sub-optimal store conditions in most places. The organized pharmacy retail is growing at 100 % per year.000 medical shops serving the Indian market. retailers and customers Since all are looking at a better value for saving time. chains like Medicine Shoppe grew almost by 100%. costs and delivering a better value with fast and relevant information. There are other serious regulatory and supervisory hurdles to be crossed before the country can really leverage the benefits of high penetration of medical shops. Trade associations and experts opine that nearly 97 – 99% is dominated by unorganized sector. customers are patronizing reputed chains wherever they operate. It has to change and adopt global standards. which has approximately 2 lakh outlets for a domestic market of $15 billion. Other experts like Murlidharan Nair of Ernst & young say that the sector is growing at 15% and will double its size in the next 5 years.5 lakh retailers for $6 billion market appears highly overproliferated. Last year. In such a scenario. manufacturers. Standalone medical shops are able to avoid sales tax. Page 18 .

A study on consumer perception towards the services of retail pharmacy chain Pharmacy retail scenario Page 19 .

garments. technology.e. large format pharmacy chains promoted by organized players that allow shoppers to browse through a vast range of products including not just medicines. railways and airways etc. India is developing in every area of economy i. power generation. India is now considered as a fastest developing economy in the world.A study on consumer perception towards the services of retail pharmacy chain In the current globalized retail era it is very tough task to fight and survive in the global as well as local market. neighbourhood medicine stores are being replaced by swanky. They are getting each and everything which are basic as well as secondary requirement for a high. The answer is considering that pharma retailing is clubbed with fast moving consumer goods retailing in most cases. We consider trade and commerce is the core area of any country. space technology. So we can say it is "starting end" of small pharma retailers. middle and lower class segment of global society. agriculture. India’s $6 billion domestic pharma retail market is in the midst of change as the old order is giving way to the new. By introduction of retail malls the customers are getting all the daily use commodities under a single roof. Now the question arises about the future of small retailer in pharma industry. development in roads. here we consider retailing has to be given more emphasis as it is the subject of every common man in India today. but also body-care products in air-conditioned comfort. healthcare articles as well as fulfilling other essential requirements. The crowded. The consumer is getting everything in air conditioned environment – fruits. Page 20 . The pharma sector is one among sectors which is facing hard competition in is industry. Information technology. in education.

organized pharmacy is expected to grow at the rate of at least seven stores a month. According to Technopak Advisors. According to rough estimates. This is expected to grow to about 10 per cent within the next two years as the organized players expand fast.000 stores across the country. of the total 800. The existing players too are on an expansion spree.A study on consumer perception towards the services of retail pharmacy chain The entry of organized players is changing the face of the pharmacy business. the share of the organized market is just about three to four per cent. Page 21 . New players include not just those with a pharmaceutical or healthcare background. Pantaloon and Dabur. among others. retailers and independent entrepreneurs. the Aditya Birla Group. The Mukesh Ambani-led Reliance Group. The sector is seeing the entry of new players including big industrial groups. This does not include big ticket investments by the likes of Fortis Health World (over $200 million) and a possible $630 million by Reliance Retail. which today is highly fragmented. but corporate from other sectors too. Industry sources estimate that the sector could see investments of about $150 million over the next couple of years. are corporates that are likely to add pharma retail to their diversified portfolios.

has over 300 outlets (open 24 hours) across 17 states in India. Discount retailer Subhiksha Retail. the high margins – between 25 and 35 per cent – despite price controls make it a lucrative business. Besides. which is part of the Apollo Hospitals group. According to industry estimates. Page 22 .) 98. Ltd. The retail side too has been posting high growth rates.4 degrees (Global Health line) Care & Cure (Manipal Group) Dial for Health (Zydus Cadila) Planet Health (Sagar Drugs & Pharmaceuticals) and MedPlus (Optival Health Solutions).A study on consumer perception towards the services of retail pharmacy chain The widespread interest in the pharmacy business is not without reason. Guardian Pharmacy (Guardian Life Care) LifeKen (Lifetime Healthcare Pvt. Apollo opened its first store in Chennai in 1983. One of the oldest corporate pharmacies. almost $120 million has been invested in retail pharmacy so far. while organized retail pharmacy will be seeing a growth of anywhere between 35 and 40 per cent. Apollo Pharmacy. Currently. International drug retail chain Medicine Shoppe Pharmacy chains set up by independent retailers like. “The total retail pharmacy market will be growing at a rate of around 15 per cent.” according to Technopak Advisors. the leading players in the organized pharma retail market include corporates like: Apollo Pharmacy Fortis Health World.

’’ says Viraj Gandhi. Guardian Life Care. The figure is expected to go up to 400 stores by July 2010. in which private equity fi rm iLabs has invested about $5. while the Aditya Birla group is planning to have pharmacy stores within supermarkets. about 10 per cent has been invested in its pharmacy business. Medicine Shoppe India is the master franchisee in India of US-based Medicine Shoppe International. Among the new players. notes Shivinder Singh. for instance. plans to set up 800 retail outlets. announced the opening of 300 stores. the largest franchisor of independent community pharmacies in America. principal promoter and director. Baroda. “Apart from Tier I cities. The company has invested about $16 million in the stores so far. “There definitely is space for many more players in the organized sector. Nashik. managing director.” says Subramanian of Subhiksha. Ranbaxy Laboratories (India’s largest pharma company) and managing director. we are also focusing on the fast growing Tier II cities like Pune.100 stores as of date and plans to open about 2. Lucknow Varanasi and Mysore. The increasing competition in the sector is unlikely to result in a squeeze.” says R Subramanian. out of which 90 are company owned and the rest are franchises. Fortis Health World. which kicked off operations last year.000 stores by July 2009. An independent pharmacy retailer. “We are extremely bullish about retail pharma. chairman and managing director.” says Ashish Pandit. Reliance is planning dedicated pharmacy stores. Fortis plans to open a chain of 1.8 million. CEO.4 Degrees. CEO. Med Plus. It has invested about $200 million so far and plans to invest an additional $175 million. For Fortis Health World.’’ says Ashutosh Garg. Guardian has been posting a growth of 200 per cent each year and expects turnover to jump from nearly $20 million to $100 million within the next two years. Of this. Medicine Shoppe started its operations in India in February 1999 and plans to open 1. “We plan to invest an additional $50 million by July 2010. Medicine Shoppe India. It has over 1. Subhiksha. “We opened the first store in July last year and are likely to close this year with 50 stores. the north-based Guardian Pharmacy currently has 100 stores. Other pharmacy chains too have planned major expansions. pharmacy is a logical extension for its healthcare business. Delhi-based pharma retail store 98. LifeKen plans to expand to 700 stores. but players must get the cost structure right. This would also help them to survive the wave of consolidation Page 23 .000 stores across India by 2012. of which the promoters have committed over $200 million. Fortis Healthcare (a hospital chain).A study on consumer perception towards the services of retail pharmacy chain Subhiksha retail chain is one of the oldest corporate grocery chain retailers in India and the first to start a retail pharmacy at its stores.000 stores by 2010.

The growth of the organized sector ends in a win-win situation for both retailers and customers.” according to Technopak Advisors.5 billion pharma. the rural initiative of DCM Shriram. Almost all the major foreign players are eagerly waiting for policy changes to enter India. health and beauty retail major. many firms are customizing their offerings for rural areas. “The demand for medicines is likely to increase as diseases are diagnosed earlier. pharma retailers in Ahmedabad in Gujarat have joined hands to start a retail pharmacy chain called Healthcare Pharmacy. Alliance Boots. India will continue to be seen as a promising market for pharma retailers as it has a large middle income consuming population that will increase its spending on healthcare and medicines as it ages. customers are assured that the drugs they buy are genuine. Currently. Realising the need to cater to this significant segment. Consumers are now willing to pay a little more for convenience and quality. present mainly in low income areas) in the next four years. a UK-based $27.” says Gandhi of Medicine Shoppe India. While the poor would obviously go to the public healthcare facilities. Page 24 . In the future. Pharmacies are also tying up with retailers to ensure wider distribution across new geographies. Apollo Pharmacy. affluent consumers in rural areas are under serviced at present. Guardian has joined hands with DCM Shriram to set up its ‘Aushadhi’ chain of rural pharma retail outlets within the Haryali Kisan Bazaars. Pharma companies like The Himalaya Drug Company are opening stores in malls of large retailers to showcase their products at exclusive stores. has tied up with ITC E-choupals (Choupal Sagar) and Godrej Aadhaar to provide quality medicines to rural India. local pharmacists too are learning to adapt themselves to new ways to ensure survival. Besides.A study on consumer perception towards the services of retail pharmacy chain that is likely to sweep the sector in the future. regulations permit 100 per cent foreign direct investment (FDI) only in single brand stores. For instance. Medicine Shoppe plans to open 350 Sehat stores (Sehat is a low cost clinic adjacent to the shop. There exist huge opportunities in the rural markets where healthcare facilities are minimal. is said to be planning its entry in the Indian retail market. “Pharma retail falls into the multi-brand category. Apollo has tied up with Indian Oil Corporation (a Fortune 500 company) to set up convenience stores across its retail gas stations in India. While the former have their eyes on the growing bottom-lines. They have opened a dozen stores in Ahmedabad. for instance. T he retail revolution sweeping across the country is changing the way Indians go about their healthcare spends.

cold storages etc. Product Price Place Promotion Page 25 . These players are high end and deal in bulk quantities of raw-materials.A study on consumer perception towards the services of retail pharmacy chain In Pharmaceutical Retailing there are two types of sectors: 1. Processing of raw materials to finished drug formulations. Packaging. Organized Pharmacy Sector : Pharmacy chains like Apollo Pharmacy. Subhiksha. Logistics Handling. Branding the finished products then packaging and labeling the drugs and they have expertise in using all tools of marketing mix.i. Unorganized Pharmacy Sector: Independent and Small retail outlets The organized pharma chains are generally owned by large and Established business houses which have decades of experience in handling large Industries. Processing. Hetero Etc. Med plus. Inventory Management. 2. Manufacturing Drugs. They have expertise in Trading various Drugs. organized businesses etc.e.

A study on consumer perception towards the services of retail pharmacy chain

Advantages to Organized Pharmacy Sector/ Pharmacy chains
Economies of scale: The large players in pharma retail sector buy Raw material in bulk quantity, process in bulk quantity, package in big lots, use high technology in processing, packaging and transporting, so they get the finished drugs at the lowest possible prices. Technology driven: These large players use modern, latest and automated machinery in manufacturing Drugs, in Inventory management, supply chain management, use of latest display tools, free samples to Doctors and hospitals etc. Retailing their own pharma brands/generic brands along with competitors brands: It helps in promoting their own brands/generic brands which can fetch more profits using push strategy through doctors and hospitals by providing free samples, sponsoring free treatment to patients. Passing advantages to patients and consumers: With the optimum use of available resources and technology, some price. Advantages can be passed over to patients Increase in market share and profits: With all the advantages from points 1 to 4 above the pharma chains can achieve higher market share and profits. Discount parameter: According to the latest self-study we have found that up to 10% discount is offered by retail pharmacy chains like Apollo, Hetero, Subhiksha and Med Plus.

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A study on consumer perception towards the services of retail pharmacy chain

Disadvantages to small retailers
No economies of scale to small medical stores : These small stores buy in small quantities from drug distributors with higher prices with no schemes thereby it reduces profit margins Small geographic area: These small retail medical shops operate from small lanes and by-lanes where it could cater to limited range of patients who belong to those surroundings only. This results in lower turnover of sales resulting in lower profits. No home delivery services: These small medical shops generally run on low man power or sometimes run as a family business and therefore cannot effort to hire persons for home delivery of medicines. Winding up of medical shops: Notwithstanding the business threats from large pharma chain stores most of these stores close their stores by sustaining huge loses. Losses from expiry of medicines: New formulas are frequently launched into the market and doctors always want to try new formulas on patients thereby sales of old formulas are slowed down which causes huge quantity of expires of medicines which in turn result in heavy losses. Discounts can not be offered: Small medical shops buy in smaller quantities and cannot avail the advantage of various schemes on quantity purchases, there by their unit purchase prices are higher and can not offer discount to patients/ customers.

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A study on consumer perception towards the services of retail pharmacy chain

Retail pharmacy chains “More than medicines”

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Some like Apollo Pharmacy also offer free health insurance for regular customers. Modern pharmacies have leveraged technology to scale up faster. Guardian Life Care. CEO. Page 29 . The Fortis Health World stores also have a diagnostic centre that acts as a collection facility for SRL Ranbaxy. Customers can also book appointments with the Outpatients Department (OPD) at Fortis Hospitals. “As each strip is bar coded. beauty and body-care products like soaps and shampoos. CMD. Besides.A study on consumer perception towards the services of retail pharmacy chain THE new age pharmacies believe in offering enhanced service to customers. Most of them have introduced several value-added schemes like free home delivery of medicines. a chain of clinical reference laboratories owned by the promoters of Ranbaxy. Thus. customers need not worry about counterfeits or expired medicines at the time of purchase. Apart from the sale of drugs to consumers. hair oils and baby care products. prescription reminder service. loyalty programmes with reward points. This is especially useful in servicing overseas clients. these outlets strive to be one stop shops for all beauty and health-care needs of the customers. Many also stock alternative medicines like homeopathy and ayurvedic products. roundthe-clock service. information centers and help lines for queries related to medication that are at times answered by doctors. modern pharmacies are also moving towards offering e-prescription based services by effective use of technology. The biggest draw of the organized pharmacies is that customers are assured of the quality of medicines and other products. have greater control over their businesses with a dynamic and real time view of operations.” says Ashutosh Garg. pharmacies also sell surgical and other health. free health camps and free health newsletters and healthcare books at the stores. ``We are in the process of launching a number of other quick selling products under the Guardian brand. Guardian is the first among pharmacy chains to have launched a number of private label products in the personal care and personal hygiene space.” says Ashish Pandit. Fortis Health World.

The Wellness stores will offer health foods.200 super speciality stores called Reliance Wellness. Besides.” according to a spokesperson of the company. which specialises in ayurvedic products. CEO of the firm. Reliance Retail plans to invest $6. companies like The Himalaya Drug Company. personal care and healthcare products. Reliance Retail Ltd. Pantaloon’s foray in pharmacy is through Tulsi. Dabur India has announced its foray in the retail business through a wholly owned subsidiary. “We have 100 outlets currently and plan to double the number over the next two years. a 100 per cent subsidiary of Reliance Industries. Pharmacies are increasingly becoming an important part of most multi-format retailers.. personal care and household general merchandise. Page 30 . The company plans to invest over $35 million to open a chain of 160 stores by 2010 across the country under the brand name ‘new-u’. a pharmacy housed within Big Bazaars and Food Bazaars at over 35 locations all over India. ‘More’ supermarkets launched by Aditya Birla Retail will house a pharmacy apart from the usual product categories available in the supermarket including fruits and vegetables.A study on consumer perception towards the services of retail pharmacy chain Entry of major corporates:- PHARMACY has lately seen the entry of top Indian corporates with mega plans. over the next two to three years.” says Sumant Sinha. are opening stores to showcase and sell their products. seven stores have been set up – three each in Hyderabad and Bangalore and one in Mumbai – and plans are on the anvil to set up 30 stores shortly.3 billion in the retail business including investments across several retail segments. is planning to set up 1. The group ultimately plans to have a national presence in both the supermarket and hypermarket formats. the Medicine Bazaar. H&B Stores Ltd. It allows customers the convenience of having their wellness needs met while they shop. “Aditya Birla Retail intends to be among the leading players in India. Currently.

A study on consumer perception towards the services of retail pharmacy chain Literature review Page 31 .

empathy (customers are individuals). The identification of service quality dimensions was of primary interest to researchers (Parasuraman et al. assurance (ability to inspire trust and confidence). 1992. with longitudinal studies or cross-sectional ones. Cronin and Taylor. Buttle. and loyalty The investigation about service quality and customer satisfaction has different conceptualizations and aspects (Dabholkar. Those who favour the former approach (Cronin and Taylor. it allows service providers to identify gaps in the service provided. Service Quality is conceptualised as the comparison of service expectations with actual performance perceptions (Zeithaml et al. Service quality is a multidimensional concept. 1991b. Shepherd. 1992. service quality being the same constructs or different from customer satisfaction. such of Parasuraman et al.A study on consumer perception towards the services of retail pharmacy chain Review of conceptual issues in pharmacies service like quality. They find five dimensions of service quality: reliability (ability to deliver the promised service dependably and accurately). 1999). 1994. cannot be placed in time. The development of measurement instruments of service quality was the focus of subsequent research efforts (Parasuraman et al. 1996. 1993. 1992. 1994. The main idea is that service quality is a function of the difference scores or gaps between expectations and perceptions. as disconfirmation is valid and further.. and Berry. 1994). 1988. 1985. 2001). Those who favour disconfirmation paradigm. customer satisfaction. 1994. 1993. 1991a). and production and consumption are simultaneous (Athanassopoulos. Zeithaml. 1994) or captured with the disconfirmation model (Parasuraman. Parasuraman. (1994) counter that measuring service quality. 1996). The first big operational debate has been focused on whether service quality should be measured as perceptions or as disconfirmation (Cronin and Taylor. with factors as components or as antecedents of service quality. Athanassopoulos 1998. Page 32 . Zeithaml and Berry. 1994. The operationalization of it is the SERVQUAL instrument. responsiveness (willingness to help customers and provide prompt service). and tangibles (elements that represent the service physically. 2000): the service quality is captured with the perceptions model (Cronin and Taylor. Teas. the criteria that customers use to evaluate service quality is complex and difficult to determine precisely due to the fact that services are intangibles. and Thorpe. 1994). Service Quality It is know that. heterogeneous. Teas. Thus. In the disconfirmation model. in the case of services.. 1992) suggest that perceptions of service quality more closely match customer evaluations of the service provided. 1993.

are some of the services where SERVQUAL was applied. 1992) have compared computed difference scores with perceptions to conclude that perceptions are a better predictor of service quality than disconfirmation. Teas. but only for existing ones. The perceived performance model deviates from the above model in that expectations play a less significant role in satisfaction formation. The model performs especiallly well in situations where a product/service performs so positively that the customer’s expectations get discounted in her/his postconsumption reaction to the product/service. Tyre Shop (Carman. some studies that we investigated and uses the SERVPERF or modified scales that seem to be according to SERVQUAL. Only a few numbers of studies are made with the focalization on health industry and a smaller number (almost rare) of those on pharmacies. 1992). 1994). Olsen.. 1991. 1993). 1993). 1989). 1993). SERVQUAL seems to be a useful scale to use in measuring service quality by making appropriate adjustments for industry and country contextual effects.. It has been proven the validity and reliability across a large range of service contexts. 1990). not on the pharmacy as a store (Schommer and Wiederholt. higher education (Boulding et al. It seems that this construct is industry specific and country specific. Cronin and Taylor. the diversity of studies applied to many different service industries. The validity and the reliability (Brown et al. 2002) are simply measuring perceptions (SERVPERF) as indicators of service quality (ignoring expectations completely) and are finding good predictive power in their studies. with different group of factors. results on a great acceptability of this constructs. hospitals (Babakus and Mangold. (1996) reported that in many services the SERVQUAL must be adapted with more or less items. Dabholkar et al. However. Teas. Many other studies are made but those seem to us the more approachable with the study on pharmacies satisfaction. Some researchers (Babakus and Botler. 1993) of the difference between expectations and performance have questioned and several authors have suggested that perceptions scores alone offer a better indication of service quality (Cronin and Taylor. 1992. medical services (Brown and Swartz. discount and department stores (Finn and Lamb.. Increasingly. As it is seen in table 1. Below. A study by Churchill and Suprenant (1982) also partially supports the efficacy of using only performance perceptions to measure service quality.A study on consumer perception towards the services of retail pharmacy chain But this construct is criticized for theoretical and operational issues. researchers (Mittal and Lassar. we report. 1996. The study reported in pharmacy industry is only about the pharmacist service. and application of SERVQUAL is not possible in new services. 1992. Page 33 .

such as physical facilities. Berry et al.A study on consumer perception towards the services of retail pharmacy chain Another problem is what attributes does contain a service quality scale. In our study we have the preoccupation to incorporate these attributes on the construction of the scale. Experience attributes. are used by consumers to evaluate service quality. appearance of personnel and supplier’s image can be considered before consuming the service. and credence. Search attributes. Zeithaml. (1985) argued that service quality attributes of search. Credence attributes like financial security of an investment cannot be determined even after repeated use of service. experience.. We know that customers of services observe and evaluate the production process as they experience the service they receive (Parasuraman. like responding quickly to a request and performing a service at the agreed time are assessed on the basis of the actual service experience. 1988). and Berry. Page 34 .

but the conceptualization. They had found that customer satisfaction is best specified as a function of perceived quality and disconfirmation and quality has a greater impact on satisfaction and repurchase intentions than quality which exceeds expectations. and Berry (1998) define “perceived (service) quality” as the consumer’s judgement about a firm’s overall excellence or superiority. 1988).A study on consumer perception towards the services of retail pharmacy chain Customer Satisfaction As concluded by the literature review Customer Satisfaction is a summary affective response of varying intensity. which appears to have achieved the widest acceptance. Parasuraman. Taylor and Baker. the customer’s general attitude toward the service.J. Satisfaction is related closely to. with a time-specific point of determinate and limited duration. In table 2 we resume some studies that we have analyzed to achieve a construct that could traduce the best operationalization. The key to distinguishing satisfaction from attitude is that satisfaction assessments relate to individual transactions whereas attitudes are more general (in Bitner. Fornell (1992) suggests that satisfaction can be viewed directly as an overall feeling. but is not the same as. one interpretation suggests that satisfaction can be distinguished from perceived quality. There isn’t a so universal acceptable scale to the construct of customer satisfaction than for the construct of service quality. This definition suggests that perceived quality is similar to an individual’s general attitude toward the firm (Zeithaml. More important. in the sense that service quality is an attitude while customer satisfaction is often a transaction-specific measure. they had found that elasticity of repurchase intentions with respect to satisfaction is lower for firms that provide high expectations. Another question with customer satisfaction is the study of antecedents and consequences (Anderson and Sullivan. Customer satisfaction has been defined in various ways. 1993). M. directed toward focal aspects of product acquisition and/or consumption. 1994) treat service quality and customer satisfaction as distinct constructs. Page 35 . Similarly. 1992. Zeithaml. In the operationalization of the constructs of customer satisfaction we have adopted the scale of Bloemer and Ruyter (1998) because it seems more adapted to pharmacy services. (1990). is that satisfaction is a post-choice evaluative judgment of a specific transaction. Some researchers (Cronin and Taylor.

Store Satisfaction. and Store Loyalty.A study on consumer perception towards the services of retail pharmacy chain In table 1 and table 2 are focalized in the specificity of Store Image. image. where the concepts linked to the concept of store are important. it was important to study the particular aspect of certain services. such as physical evidence. In present study. Page 36 . and parking. localization.

and thus want to continue the relationship. how likely it is that the customer will switch to another brand or service provider. but the government has announced a law to permit some stores to sell drugs with unnecessary prescription. Customers who remain loyal to the company are likely to engage in favourable word-ofmouth behavioural responses and are possible to cross-sell to theses customers or even charge them a premium price. (1996). For Behavioural Intentions we have adopted the Scale of Zeithaml et al. lowering customer defections can well can have a strong impact on a company’s profits (Reichheld and Sasser. and defensive marketing actions refer to retaining existing customers. The attributes and the techniques (merchandizing is one of those) used in the pharmacies are more and more likely as the used in stores.. which make it costly or difficult for the customer to change supplier. (1996) In table 3. As most barriers appear to be of limited durability. 1993). 1990) as well as market share (Rust and Zahorik. scale. we present studies that analyze the consequences of Customer Satisfaction. Customer loyalty expresses an intended behaviour related to the product or service. and loyalty. Customer may also be loyal because they are satisfied with the supplier or product brand. The customer transmits their satisfaction with behaviors. or any other variables usually associated with competitive advantage (Reichheld. Bloemer (2002). complaint. There are compelling arguments of the superiority of the defensive marketing over de offensive one. When this law is applied there will be a change in the merchandizing of drugs.A study on consumer perception towards the services of retail pharmacy chain We consider that pharmacies tend to be considered as Stores of Pharmaceutical Products. economical or psychological factors. and Zeithaml et al. In the particularly case of Portugal. Bloemer and Ruyter (1998). Page 37 . For the construction of service loyalty (…a positive behavioural intention) the constructs are more diversified. Those behaviors could be such of wordof-mouth. 1996). Behavioural Intentions Several researchers make the distinction between offensive and defensive marketing policies. Relative retention has been shown to explain profits better than market share. This includes the likelihood of future purchases or renewal of service contracts or. conversely.. are the best contributions to the research. (1998). Meanwhile the investigations of Bloemer et al. According to those researchers. offensive marketing actions refer to capturing new customers by investing in service quality. companies tend to approach satisfaction as the only viable strategy in the long run. For example. Customers may be loyal owing to high switching barriers related to technical. cost position.Similarly Fornell and Wernerfelt (1987) concluded that is better for a company to spend resources to keep existing customers than to attract new ones. it’s not possible to sell drugs in other stores than pharmacies.

in the willingness to recommend a service provider to other consumers (Selnes. Berry.. Several studies have examined the association between service quality and more specific behavioral intentions. Increased customer retention has two important effects: (1) it can lead to a gradual increase in the firm’s customer base which is vital in an era of low sales growth. 1993). 1993). increase the volume of their purchases. A focus on one’s current customers. (1991a). However. and (2) the profits earned from each individual customer grow the longer the customer remains loyal to the firm. and Zeithaml. the generation of positive word-of mouth. expressed for example. say positive things about company to others (Boulding et al. An understanding of current customer’s store loyalty intentions and their determinants is an important basis for the identification of optimal retailer actions. when defining an instrument to measure behavioural intentions (loyalty is a positive behaviour) we must consider behavioural. One of this is loyalty. and Zeithaml (1991a) find a positive and significant relationship between customers’ perceptions of service quality and their willingness to recommend the company. Parasuraman. And with enhanced loyalty the prevailing practice of offering costly loss leaders to generate store traffic may become less necessary. may also generate other benefits. And costs to retain customers are about 80% lower than the costs to acquire new customers. or agreeably pay a price premium (Rust and Zahorik. 1996). Loyalty is frequently defined as observed behaviour (Liljander and Strandvik 1995) or actual behaviour that drives the performance of an industry. Page 38 .. for example. Loyalty is also an attitude. 1993). recommend the company of service to others (Parasuraman. When customers praise the firm. how customers develop loyalty to a particular store and how that loyalty can be maintained are open questions.A study on consumer perception towards the services of retail pharmacy chain Favourable Behavioural Intentions One group of behavioural intentions could be designed as positive behavioural intentions. they are indicating behaviourally that they hare bonding with the company. So. Fornell et al. if it results in increased satisfaction. 1993). Berry. Repeat purchasing and purchasing sequence are measures of actual behaviour. that could be operationalized as a product or service that comes first to mind when making a purchase decision or the product or service that is the first choice among alternatives (Ostrowski et al. or price tolerance (Anderson. attitudinal and cognitive aspects. 1990). Existing customers also tend to purchase more than new customers (Rose. Certain behaviours signal that customers are forging bonds with a company. 1996. Loyalty is also cognitive. express preference for the company over others.

Page 39 . According to Singh (1988).A study on consumer perception towards the services of retail pharmacy chain Unfavourable Behavioural Intentions Customers perceiving service performance to be inferior are likely to exhibit behaviours signalling they are poised to leave the company or spend less in the company. dissatisfaction leads to consumer-complaining behaviour that is manifested in voice responses. Another indicator of eventual defection is a decrease in the amount of business a customer does with a company. private responses or third-party responses. which is viewed by many researchers as a combination of negative responses that stem from dissatisfaction and predict or accompany defection. These behaviours include complaining. Specific indicators of unfavourable behavioural intentions suggested by the preceding discussion include different types of complaining (complaining to friends or external agencies) and contemplation of switching to competitors. Complaining behaviour itself is conceptualized as multi-faceted.

A study on consumer perception towards the services of retail pharmacy chain Research Methodology Page 40 .

gathering. People are free to choose any of this retail sectors. Sample represents the population. which are professional players/ organized players. That is why consumer satisfaction surveys are so important. An instrument has validity and is measuring the desired constructs. Gender of the customer has direct relationship with their satisfaction level while purchasing from organized pharma stores. Education of the customer has direct relationship with their satisfaction level while purchasing from organized pharma stores. Problem Statement The competition in the pharmaceutical retail industry is increasing on large scale. opinions and satisfaction levels of your consumer .This research desires to find out the consumer satisfaction about the retail pharmacy chains which provides more offers than the local chemists.A study on consumer perception towards the services of retail pharmacy chain Research:“Research is a systematic. Page 41 . Research gives an idea to solve the problem of consumers and their satisfaction. Research objective The importance of consumer satisfaction cannot be underestimated. There is a conflict between small retailers that may be called the traditional players and the growing retail chains. reporting and analyzing of data about problems relating with the marketing of goods and services and implementing it to overcome the problem. consumer satisfaction can impact every aspect of your business from earnings to stock profits. Consumer satisfaction surveys measure and evaluate the attitudes. Research helps to gather information for solving problems. Respondents will answer a survey truthfully.” Business research is a systematic inquiry that gives information to take business decisions. Hypothesis:Age of the customer has direct relationship with their satisfaction level while purchasing from organized pharma stores. This research desires information about consumer perception towards the services provided by organized retail pharmacy chains and identifying the factors most affecting the customer satisfaction level of customers. Assumptions People are using both organized and unorganized retail sectors. After all.

Various factors affecting the customer satisfaction level at the time of purchase from organized retail pharma stores. test hypothesis generated by exploratory research. Research Design A research design expresses both the structure of the research problem and the plan of investigation used to obtain empirical evidence on the relations of the problem.A study on consumer perception towards the services of retail pharmacy chain Occupation of the customer has direct relationship with their satisfaction level while purchasing from organized pharma stores. Family income of the customer has direct relationship with their satisfaction level while purchasing from organized pharma stores. make predictions based on the relationship between selected variables. Descriptive Research Survey Method Descriptive Research helps to describe the characteristics/profiles of a certain group. Data Collection Primary data are collected through questionnaire fill up by respondents Secondary data are collected from published sources Sample Design Target Population: People visiting retail pharmacy chain for purchasing medicines in Surat city Parameters of Interest: o Gender o Age o Education o Occupation o Family income o Quality o Availability o Service parameters o Price o Physical evidence o Location Page 42 .

A study on consumer perception towards the services of retail pharmacy chain Sampling Method:Non probability convenience sampling method Sample Size:300 respondents Benefits of the study:Identifying the areas that needs improvement from the organized retailers perspective Improving customer loyalty and retention Identification of opportunities that can be source of sustainable competitive advantage Limitation of the study:Perception varies with customer to customer Lack of interest from the respondents Biased response from respondents may temper with the results of the study Graphical presentation of Data:Gender Gender Male Female No. of respondents 174 126 GENDER 200 180 160 140 120 100 80 60 40 20 0 Male Female GENDER Page 43 .

Graduation Post Graduation PhD Professional Courses EDUCATION Page 44 . of respondents 115 132 35 18 AGE (In Years) 140 120 100 80 60 40 20 0 18-24 25-34 35-44 45-54 AGE (In Years) Education:EDUCATION Up to 12th Std.A study on consumer perception towards the services of retail pharmacy chain Age:Age (In years) 18-24 25-34 35-44 45-54 No. Graduation Post Graduation PhD No. of respondents 62 105 47 15 EDUCATION 120 100 80 60 40 20 0 Upto 12th Std.

of respondents 124 63 72 31 10 Monthly Family Income (INR) 140 120 100 80 60 40 20 0 <15000 15000-30000 30000-45000 45000-60000 >60000 Page 45 .A study on consumer perception towards the services of retail pharmacy chain Occupation:Occupation Business Service Study Housewife No. of respondents 58 135 62 45 Occupation 150 100 50 0 Business Service Study Housewife Occupation Monthly family income:Monthly family Income ( INR) <15000 15000-30000 30000-45000 45000-60000 >60000 No.

of Respondents 45 141 78 36 No. Of Respondents 150 100 50 0 Highly Dissatisfied Dissatisfied Satisfied Highly Satisfied No. Of Respondents Page 46 .A study on consumer perception towards the services of retail pharmacy chain Satisfaction level:Satisfaction Level Highly Dissatisfied Dissatisfied Satisfied Highly Satisfied No.

A study on consumer perception towards the services of retail pharmacy chain Data Analysis Page 47 .

we can not reject the Ho.1 45 45.9 26 26. Page 48 .0 11 15.0 Highly Dissatisfied Satisfied Satisfied 64 59.9 36 36.63 & its significance value is 0. GENDER * SATISFACTION LEVEL Cross tabulation SATISFACTION LEVEL Highly Dissatisfied GENDER FEMALE Count Expected Count MALE Count Expected Count Total Count Expected Count 19 18.0 32 32.0 Total 126 126.0 300 300. (2sided) 0.452 Value Pearson Chi-Square N of Valid Cases 2.8 141 141.2 78 78. H1: There is an association between gender and satisfaction level of customers.2 77 81.452. Hence.0 Chi-Square Test Asymp.632 300 df 3 Interpretation:Here. So we can conclude that there is no association between gender of customers and their satisfaction level. Sig.8 46 45.A study on consumer perception towards the services of retail pharmacy chain Chi-square Test:Gender and satisfaction level of customer :Ho: There is no association between gender and satisfaction level of customers. the pearson chi.square at 3 degree of freedom is 2.1 25 20.0 174 174.

9 35 34.0 300 300.0 Satisfied 30 29.2 36 36.3 16 19.0 35 35.0 Highly Satisfied 5 13.5 2 8. AGE * SATISFACTION LEVEL Crosstabulation SATISFACTION LEVEL Highly Dissatisfied AGE 18-24 Count Expected Count 25-34 Count Expected Count 35-44 Count Expected Count 45-54 Count Expected Count Total Count Expected Count 22 17.5 141 141.1 3 4.8 5 5.0 18 16.0 132 132.0 Total 115 115.1 63 62.0 Page 49 .0 18 18.7 78 78.A study on consumer perception towards the services of retail pharmacy chain Age and satisfaction level of customers:Ho: There is no association between age of customers and satisfaction level of customers.8 2 4.8 18 15.0 Dissatisfied 58 54.3 2 2. H1: There is an association between age of customers and satisfaction level of customers.2 11 2.3 10 9.7 45 45.

the pearson chi. Hence. we reject the Ho.000 Value Pearson Chi-Square N of Valid Cases 51.square at 9 degree of freedom is 51.A study on consumer perception towards the services of retail pharmacy chain Chi-Square Test Asymp. (2sided) 0. Sig. Page 50 . So we can conclude that there is an association between age of customers and satisfaction level of customers.556 300 df 9 Interpretation:Here.55 & its significance value is 0.000.

8 47 47.0 67 64.0 31 29.7 15 15. H1: There is an association between education of customers and satisfaction level of customers.5 37 39.1 40 27 71 71.0 186 186 114 114 300 300.5 104 104.0 Page 51 .4 10 5. Education * SATISFACTION LEVEL Cross tabulation SATISFACTION LEVEL Dissatisfied Education Up to 12th standards Count Expected Count Graduation Count Expected Count Post graduation Count Expected Count PhD Count Expected Count Professional course Count Expected Count Total Count Expected Count 54 39.0 31 44.2 16 17.1 Satisfied 9 24 Total 63 63.0 5 9.A study on consumer perception towards the services of retail pharmacy chain Education and satisfaction level of customers:Ho: There is no association between education of customers and satisfaction level of customers.

So we can conclude that there is an association between education of customers and satisfaction level of customers.79 & its significance value is 0. Sig.A study on consumer perception towards the services of retail pharmacy chain Chi-Square Tests Asymp. Page 52 . the pearson chi.794 300 df 4 Interpretation:Here. (2sided) 0. Hence. we reject the Ho.000.000 Value Pearson Chi-Square N of Valid Cases 82.square at 9 degree of freedom is 82.

0 300 300.4 0 5.A study on consumer perception towards the services of retail pharmacy chain Occupation and Satisfaction level of customers :Ho: There is no association between occupation of customers and satisfaction level of customers.0 78 78.5 36 36.0 Total 58 58.0 134 134.1 12 12.0 Satisfied 6 15. H1: There is an association between occupation of customers and satisfaction level of customers.1 43 34.1 6 7.0 62 62.0 13 16.1 12 9.1 22 21. Occupation * SATISFACTION LEVEL Crosstabulation SATISFACTION LEVEL Highly Dissatisfied Occupation Business Count Expected Count Service Count Expected Count Study Count Expected Count Housewife Count Expected Count Total Count Expected Count 4 8.0 Dissatisfied 31 27.0 Highly Satisfied 17 7.7 17 20.8 17 16.0 Page 53 .3 61 63.0 27 29.3 12 6.6 141 141.0 46 46.9 45 45.

60 & its significance value is 0.000 Value Pearson Chi-Square N of Valid Cases 36.608 300 df 9 Interpretation:Here. So we can conclude that there is an association between occupation of customers and satisfaction level of customers. the pearson chi. Sig.000. Hence. (2sided) 0.A study on consumer perception towards the services of retail pharmacy chain Chi-Square Tests Asymp.square at 9 degree of freedom is 36. we reject the Ho. Page 54 .

2 22 15.7 0 1.9 2 7.9 36 18.7 4 8.8 45 45. INCOME * SATISFACTION LEVEL Cross tabulation SATISFACTION LEVEL Highly Dissatisfied INCOME <15000 Count Expected Count 15000-30000 Count Expected Count 30000-45000 Count Expected Count 45000-60000 Count Expected Count >60000 Count Expected Count Total Count Expected Count 23 18.8 1 4.7 17 33.6 1 5.0 Highly Satisfied 0 14.0 72 72.0 61 61.6 10 9.0 Dissatisfied 86 58.8 10 14.0 300 300.4 36 36.0 Page 55 .1 78 78.6 16 3.7 10 1.3 8 8.A study on consumer perception towards the services of retail pharmacy chain Income and Satisfaction level of customers :Ho: There is no association between monthly family income of customers and satisfaction level of customers. H1: There is an association between monthly family income of customers and satisfaction level of customers.0 12 12.0 31 31.3 27 28.0 Satisfied 15 32.0 Total 124 124.1 1 3.2 11 10.6 141 141.

the pearson chi.94 & its significance value is 0. So we can conclude that there is an association between monthly family income of customers and satisfaction level of customers.000 Value Pearson Chi-Square N of Valid Cases 173. we reject the Ho.A study on consumer perception towards the services of retail pharmacy chain Chi-Square Tests Asymp. (2sided) 0. Sig.square at 12 degree of freedom is 173.000.949 300 df 12 Interpretation:Here. Hence. Page 56 .

A study on consumer perception towards the services of retail pharmacy chain Factor Analysis Page 57 .

000 Page 58 .There were eight factors extracted by using the method of principle component analysis and rotation method of varimax with Kaiser normalization with criteria Eigen value more than one . Bartlett's Test of Sphericity Approx. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.188 and significance – 0.188 120 .615) and Bartlett’s test of Sphericity ( Chi square .598.A study on consumer perception towards the services of retail pharmacy chain Factor Analysis The results of KMO ( 0. The result of factor analysis is shown below.000 ) indicate that factor analysis done with 16 variables is effective .615 598. . Chi-Square df Sig.

hour service 24.550 .814 .855 .606 Extraction Method: Principal Component Analysis Page 59 .A study on consumer perception towards the services of retail pharmacy chain Component Matrix Component 1 Good availability of medicine genuine/ Good quality of medicine Medicines available at discount Quick Services Proximity of Location Convenient Parking Friendly Pharmacist Competent Staff Computerized Quick Billing System 24.543 -.522 .710 .513 .hour customer support through helpline Medicines stored under good storage conditions Home delivery on request Free regular reminder service Free health camps Properly planned store layout & attractive frontage 2 3 4 5 6 7 8 .523 .635 .664 .559 .600 -.601 .522 .

117 1.835 6.038 1.278 1.148 1.139 77.861 87.636 39.299 59.785 66.345 23.463 53.098 72.079 7.098 Initial Eigenvalues Com pone % of Cumulative nt Total Variance % Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 2.313 6.345 9.257 98.947 4.175 6.760 52.323 45.742 .082 1.835 6.636 39.850 38.744 59.990 22.293 1.079 7.09% of variance.166 14.851 .224 1.055 Interpretation:-It can be concluded that these eight factors are extracted from the 16 variables explaining about 66.288 46.591 12.708 1.791 .557 31.983 6.A study on consumer perception towards the services of retail pharmacy chain Total varience explained:Extraction Sums of Squared Loadings % of Cumulative Variance % 14.345 23.293 1.148 1.990 9.871 7.433 .094 1.196 1.010 Total 2.967 .785 66.474 1.313 14.041 5.463 53.345 9.288 46.989 7.212 8.295 1.610 .861 30.038 1.486 6.652 7.212 8.295 1.473 7.486 6.094 1.635 3.299 59.507 66.763 6.540 82.000 2.438 6.864 .965 100.010 .443 96.175 6.321 4.579 1.224 1.652 7.815 2.474 1. Page 60 .557 31.098 Rotation Sums of Squared Loadings % of Cumulativ Variance e% 12.078 1.807 92.190 1.035 14.401 5.

919 .hour service 24.517 .770 .907 .679 .706 .724 .704 .730 .807 .515 .A study on consumer perception towards the services of retail pharmacy chain Rotated Component Matrix Component 1 Good availability of medicine Genuine/ Good quality of medicine Medicines available at discount Quick Services Proximity of Location Convenient Parking Friendly Pharmacist Competent Staff Computerized Quick Billing System 24.hour customer support through helpline Medicines stored under good storage conditions Home delivery on request Free regular reminder service Free health camps .813 Page 61 .504 -.906 2 3 4 5 6 7 8 .

Page 62 . a. Rotation Method: Varimax with Kaiser Normalization.A study on consumer perception towards the services of retail pharmacy chain Properly planned store layout & attractive frontage . Rotation converged in 12 iterations.672 Extraction Method: Principal Component Analysis.

A study on consumer perception towards the services of retail pharmacy chain Labeling of factors :Quality Services Friendly Staff Friendly Pharmacist Location Storage Value Added Services 24.hour service Competent Staff Competent Staff Good Medicines availability available of medicine at discount Genuine / Good quality of medicines Quick Services Free health camps Proximity Medicines of Location stored under good storage conditions Convenient Parking Free regular reminder service Computeri zed Quick Billing System Page 63 .

A study on consumer perception towards the services of retail pharmacy chain Reliability Analysis Page 64 .

376 0.385 0.5 indicating that the factors are consistent and reliable. For 2 factors cronbach alpha’s value is less than 0. of items 2 3 2 2 2 2 Page 65 .559 0. cronbach’s Alpha were calculated and the result is shown below. For 4 factors.A study on consumer perception towards the services of retail pharmacy chain To measure the reliability of items loading into one factor.885 0.5 indicating these factors are not so reliable. the cronbach’s Alpha value is more than 0. Reliability Analysis Factors Quality Services Friendly Staff Location Storage Value Added Services Cronbach’s Alpha 0.521 -0.671 No.

A study on consumer perception towards the services of retail pharmacy chain Conclusion Page 66 .

There is an association between monthly family income of customers and their satisfaction level.hour service Free regular reminder service Competent Staff Friendly Staff Location Storage Value Added Services Competent Staff Reliability test yields that out of 8 factors quality. There is an association between occupation of customers and their satisfaction level. There is an association between education of customers and their satisfaction level. storage and value added services are more reliable as compared to other factors for measuring the perception of customers towards the services provided by organized retail pharmacy chains. Page 67 . services.A study on consumer perception towards the services of retail pharmacy chain From the analysis of data collected through questionnaire fill up it can be concluded that:62% of people have negative perception towards the services of retail pharmacy chains 38% of people have positive perception towards the services of retail pharmacy chains There is no association between gender of customers and their satisfaction level. All the variables used for the measurement of customer satisfaction level can be reduced into 8 factors which are labeled as follows:- Factor Quality Services Variables Good availability of medicine Genuine / Good quality of medicines Medicines available at discount Quick Services Computerized Quick Billing System Friendly Pharmacist Free health camps Proximity of Location Convenient Parking Medicines stored under good storage conditions 24. There is an association between age of customers and their satisfaction level.

A study on consumer perception towards the services of retail pharmacy chain Bibliography Page 68 .

New Delhi.de/mathe/scripts/engl_eigenwert.scribd.bharatbook.asp http://shopping.medicineshoppe.com/ http://www.com/services/us/gbs/bus/pdf/gbe03047-usen-advocacydrugstore.wikipedia.wikipedia. 12th edition. Philip.net/default.org/download/PHARMA_RETAILING.com/doc/7685243/Retailing http://search.dogreatgood. (2003).pdf http://en.pdf http://www. (2007).ibef.tsmg.arndt-bruenner.asp?loc=home. Kevin lane Keller. Marketing Management.es/empresa/uploads/dt_01_08.org/wiki/Retailing_in_India http://www.pdf http://www3. Abraham Koshy & Mithileshwar Jha.pdf http://www.htm(calculator) Page 69 . Pearson education. Donald R & Pamela S. WEBSITES http://www.A study on consumer perception towards the services of retail pharmacy chain BOOKS • Cooper. • Kotler.com/upload/Pharmacy-Retail-Market-India-Sample.uva.com/dgg_sm_addsearch/ws/results/Web/Problems%20Faced%20B y%20Subhiksha/1/302364/RightNav/Relevance/iq=true/zoom=off/_iceUrlFlag=7?_IceUrl=tr ue http://en.org/wiki/Subhiksha http://www. Schindler. Tata McGraw.com/download/article/TSMG_Tata_Review-June_2006.pdf http://www..ibm.Hill Publishing Company Limited.guardianlifecare.com/ http://www-935. 8th edition. Business Research Methods.dialforhealth.

A study on consumer perception towards the services of retail pharmacy chain Annexure Page 70 .

Name: ………………………………………………………………………………………………… ….. honest and unbiased answers. Monthly family income (In Rs.. …………. ………….…………… 5. 2. The information provided by you will be treated confidentially... Female: ……………... Age (In years):18-24:35-44:Above 55:4. ………… 15000-30000:45000-60000:………… ………… 7.. of family members: - ………….. Education:Up to 12th standard: Post graduation: …………….A study on consumer perception towards the services of retail pharmacy chain Survey on Consumer Attitude towards Organized Retail Pharma Sector Dear respondents. Occupation:Business: Study: …………. …………… Graduation: PhDAny other (specify):…………… …………… …………… ………….. No.):Below 15000:30000-45000:>60000:………… ………. 3. Gender: Male: ……………. Page 71 ... …………. 25-34:45-54:…………… …………. Your contribution will provide useful information in carrying out my research project. 1. Service: Housewife: - …………. You are requested to provide frank. This research is carried out for the academic purpose. 6. Professional courses: . ………….

11. Usually from where do you buy medicines? Organized retail store: ………. Emergency: Doctor’s influence: Any other (specify): ………. 2= Less important. Rank the following in order which they affect your purchase decision while buying from traditional/ kirana drug store.A study on consumer perception towards the services of retail pharmacy chain 8...2= Bad. No. ………. 3= Can’t say. Please rate the following parameters on the bases of expectation &performance (according to their importance for you) while purchasing medicines from organized drug store. Convenience: Proximity: ………. 5= Very good Sr. 9. Average monthly spending on medicine: - …………….. 3= Neutral. Traditional store: ……….. 4= Important. Expectation important Performance 1= Unimportant. 5= Very 1= Very bad.. 10.. 4= Good. ………… ……….. 1 1 2 3 4 5 6 7 8 9 Good availability of medicine Genuine/ Good quality of medicine Medicines available at discount Quick services Proximity of location Convenient parking Friendly pharmacist Competent staff Computerized Quick billing system Expectation Performance 2 3 4 5 1 2 3 4 5 Page 72 .

A study on consumer perception towards the services of retail pharmacy chain 10 11 12 24.hour customer support through helpline Medicines stored under good storage condition Home delivery on request Free regular reminder service Free health camps Properly planned store layout & attractive frontage 13 14 15 16 Page 73 .hour service 24.

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