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ResearchArticle

ISSN2229 3795

StudyonCustomerPerceptionofPlanetHealthRetailPharmacyChainStore
atAhmedabadCity
SunilPatel,HimanshuBarot, KeyurDarji
AssistantProfessor,K.J.InstituteofManagement,Vadasma,Gujarat
sunilpateldrl@yahoo.co.uk

ABSTRACT
Retailing,itisanemergingtrendintheIndia.ItisaprovenfactthatinIndiatheretailindustry
hasbecomethe2nd largestemployerafteragriculture.TheIndianretail marketisthe5th largest
retaildestinationglobally.ItisestimatedtogrowfromtheUS$266billionin2005toUS$435
billion by 2010 and US $ 587 billion by 2015. The entry of organized players is changing the
face of the pharmacy business, which today is highly fragmented. The retail side too has been
postinghighgrowthrates.Thetotalretailpharmacymarketwillbegrowingatarateofaround
15 per cent, while organized retail pharmacy will be seeing a growthof anywhere between 35
and40percent,accordingtoTechnopakAdvisors.Besides,thehighmarginsbetween25and
35 %. This study was conducted to understand the functions of planet health & customer
perception towards planet health. The study was carried out at Planet Health Retail Store
(Ahmedabad)wherethesurvey has beenconductedthroughquestioner. Theconclusionofthe
studyshowsthatasfarasCRMandstoreambienceisconcern,theyaremanagedproperly,while
theproductrangeshouldextendverticallyandhorizontally.Whiletestingthehypothesis,itwas
found that the customer perception towards planet health was on the positive side. Thus the
managementismakingtherightmovestowardsbettercustomersatisfaction.
Keywords:Retailing,Organised,CRMCustomerRelationshipManagement
1. Introduction
The word retail has its origin in French word retailer and means to cut a piece off or to
break bulk. The term Retailing is defined as All activities involved in selling goods and
servicesdirectlytofinalconsumersfortheirpersonalandnonbusinessuse.Insimpleterms,it
implies a firsthand transaction with customer. Retailing involves a direct interface with the
customerandthecoordinationof businessactivities fromendtoendright,fromtheconceptor
design stageof a productoroffering, to its delivery and post delivery service tothe customer.
Theindustryhascontributedtothefastestchanginganddynamicindustriesintheworldtoday.
Planet health which is a chain pharmaceutical store situated at Gujarat is very much concern
about their customers and trying to provide them maximum services through membership
programandthroughotherwayalso.Planethealthregularly&consistentlytriestoimprovetheir

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basicfunctionsbymodifyingthemandtrytomaketheircustomersperceptionpositivetowards
theirorganisation.
2.LiteratureReview
2.1StudyofPharmacyRetailChainsinIndia
2.2ApolloHospitalPharmacyChain
ApolloHospital,Chennaihassetupachainof60pharmaciesunderthefollowingcategories:
2.2.1. Hospital pharmacies: These are pharmacy stores attachedtothe Apollo Hospital. They
arepresentlyoperatingatChennai,Hyderabad,andDelhi.Thepharmacystocksaround6,000Rx
brands/presentations. Almost the entire business comes from Rx products. During the current
year, additional hospital pharmacies were planned to be set up at Apollos upcoming and new
hospitalprojectsatCoimbatore,Madurai,andChennai.
2.2.2. Clinic pharmacies: These are pharmacy stores attachedto an Apollo Clinic. The Clinic
pharmacies are attached to Apollo Clinics at Chennai, Hyderabad, and Vishakapatnam. The
pharmacy attached to Apollo Clinic, T. Nagar, Chennai has a daily sale of Rs. 60,000. The
interior of each pharmacy changes from place to place depending on the availability of space
althoughonecommonfeatureisthatthefurnitureismadeofwhitecedarwoodfinish.Allclinic
pharmaciesareopenroundtheclock,sevendaysaweek.
2.2.3. IOC pharmacies: Apollo has entered intoan agreement with IOC,the countrys largest
petroleumretailcompany,tosetuparound100pharmacystoresattheirpetrolpumps.About20
such stores have been set up in Chennai, Delhi, Hyderabad, Ahmedabad, and Gandhinagar.
Under the present arrangement, the Apollo Hospital is required to pay to the IOC a lumpsum
amountofannual leaserentbasedonthe locationoftherespectivepetrolpumpand4percent
royaltyonthesaleofitsproducts.
2.2.4. Standalone Day and Night Pharmacies: Apollo operates around 45 standalone day
andnightpharmacystores.Thesizeofthese standalonestores,dependingonthe locationand
itsresidential/commercialpotential,couldvaryfrom150to350sq.ft.Mostofthestoresinthis
category, however, are close to 150 sq. ft in size. The standalone locations could include high
trafficareasliketheairport.Allthesestoresoperateon24x7format.
2.3. MuthuPharmacy
MuthuPharmacyoperatesachainof14pharmacystoresinChennai.Themainpharmacylocated
inPursawalkamareaofChennaihasadailyturnoverofRs.65,000(70%Rxproductsand30%
NonRx products). This outlet is considered to be the largestsized pharmacy outlet in South
India. The company stocks approximately 8,000 pharmaceutical (Rx plus OTC) products. The
pharmacy offers counselling and door delivery facilities to its customers. It proposes to start
quickdeliveryservicewithtwoindependenttelephone linestobooktelephonicorders from its
customers.Itdoesnotbelieveinofferingdiscountstoitscustomersasitfeelsthatthecustomers
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are most interested in timely availability of genuine products and quick delivery of required
itemsatthecustomersdoorstep.
2.3. TruValue
Tru Value was a pharmacy chain promoted by TDPL (Tamil Nadu Dadha Products Ltd., a
company taken over by Sun Pharma Ltd., Mumbai). The chain operated around 15 pharmacy
outlets inChennai.TheoutletsusedtoofferRxproductsatanacrosstheboarddiscountof10
per cent and hence ran into trouble with the local trade (distributors + retailers). The trade
association stopped supplies through its members and the chain was forced to close down its
business.
2.4.Otherplayerssettoenter

Pantaloons:Formerlyintogarments,tiedupwithManipalCure&Care.
RelianceRetail:Diversifyingfromotherfields,tiedupwith HimalayaDrugs
CiplaPharmaceuticals
RanbaxyLaboratoriesLimited
FortisHealthcareand
WockhardtGroup
ModelPharmacy

3.ResearchMethodology
3.1Objective
TostudythecustomerperceptionforPlanetHealthretailpharmacychainstoreatAhmedabad.
3.11Sub objectives
Tostudystorelayoutandproductcategoriescomparedtoconventionalstore
To study promotion of OTC products like medical devices, pet range, health and diet
supplementsandbabycarecomparedtoconventionalstore
To study the impact of 3P membership (Planet Health Privilege Program) concept to
nonmembercustomers.
3.1.2 ResearchDesign& Methods
TypeofResearch:Exploratory Research
Population/Universe:MembersaswellasnonmemberscustomersofPlanetHealth.
SampleSize:100individualcustomers
MethodofSampling:NonprobabilityandConvenientSampling
Researchinstrument
PrimarySources:Feedbackform(Questionnaire)
Secondarysources:Websites,booksandmagazines

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3.2CompanyScenario
Forget kapda aur makaan. After food and groceries, Indians are said to be spending the
maximumamountonhealthcareandbeauty.Accordingtohealthcareindustryestimates,thetotal
privateexpenditureonhealthisincreasingby27percentperannum.
Planet Health, a chain of Retail Pharmaceutical store was set up in 2001 by Mr. Rohit Patel
(father of Mr. Ankur Patel), Managing director,Sagar Groupof Industries (SGI), Ahmedabad,
Gujarat,India.Theoperatingphilosophyofthebusinesswastoprovidebestservice,worldclass
ambience and shopping. Planet Health is providing genuine products to their customers. Its
taglineisPlanetHealth BecauseLifeisPrecious.
3.3CorporatePhilosophy
The cornerstone of corporate philosophy of SGI was that the law of the land, even though it
meantmuchhigherinvestmentsinmenandmaterials,mustbefollowedinletterandspirit.This
wouldimplythat,foritsnewventure,amongotherthings,SGIwouldalsohavetohirequalified
pharmacists, provide airconditioning and refrigeration facilities, arrange standby storage and
power supply equipment, and sell all merchandise on bills. This would definitely increase the
costsofrunningthestorescomparedtotheexistingdrugstoreformat.
3.3OperatingPhilosophy
The operating philosophy of the business would be to provide best service and worldclass
ambienceandshoppingexperienceofpharmaproductstothecustomer.Thiswastranslatedinto:
Genuineandproperlystoredproducts.
Healthrelatedmerchandiseincludingmonitoringdevices.
MultipleproductsandbrandsincludingAyurvedicproducts.
Counsellingforproperadministrationofproductsespeciallymedicines&forshopping
Homedelivery
24x7services
Tieupwithdoctorsandotherparamedicalservices
Loyaltyprogrammeforalongtermrelationship.
3.4Promotion
Promotionisdonebygivingdiscounts,membershipschemesmakepeopleawareaboutspurious
drug, by holding different health campaigns. Through promotion planet health clearly
differentiateitselfwithothermedicalstores.Planethealthalwaystriestomakepeopleawareof
planethealth,theirservices,medicines,differentschemesetc.
Followingarethedifferentwaysinwhichplanethealthmakespromotion.

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Cool&dryconcept(knowyourmedicines):customersaremadeawareoftheirmedicines,at
what temperature drug should be kept and in what condition. Most medicines should be kept
below25degree but mostofpeople &even medical storesarenotawareaboutthat.Improper
storageofanyproductmayreduceitspotencyoraffectivity.
Planet health Privilege Programme (3p):Thisis membershipprogramme forcustomer. The
morethecustomersspendmorediscountstheyget.Notonlycustomerearnsmorediscountson
increasing purchase but as 3P member also become entitled to a lot of other privileges and
benefits.Followingaretheexamples.
Healthcard:Thehealthcardbesidescarryingmembershipparticulars,displayhealthand
emergencyrelatedinformationtohelpyouobtainemergencyhelp,ifsorequired.
3P privilege partner discount: customers can avail discounts of up to 50% on medical
services charges levied by some of the well known hospitals, nursing home, consultant
doctors,pathologylabs,health&fitnessclub,etc.ofthecity.
Freehealthcheckupsandcounsellingcamps:Planethealthorganizessuchcamps from
timetotime.3Pmemberscanattendmostofthemfreeofcharge.
Specialoffers,surprisegifts,luckydraws.
Freehomedelivery&maintenanceofprescriptionhistory.
Followingaretheotherdifferentwaysofpromotionstyle.
Planet health put posters to promote their products. They also distribute pamphlets of
product awareness, their storage, and genuine medicines. There are posters of devices,
sugarlessicecreamsandmanywellnessproducts.
Theyheldcampstopromotetheirstore,theirproductandmainpurposeistogivecustomers
betterservicesincheaperway.
Storelayoutalsoplaymajorroletopromoteproducts.
Special discounts for medicines given to customer to regular customer considering as
preferredcustomer.Discoverycoupongiventonew3Pmemberstoattractthem.
4.Data Interpretation
Table1:AboutStoredecororambience
Excellent(1)

Good(2)

Average(3)

Bad(4)

Poor(5)

43

56

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Figure1:Storedecor/ambience
Interpretation: Almost customers are satisfied with the store decor and ambience. 56% of
customers arrive at store feel good & 43% feelexcellent regarding store decor and ambience.
Majority of the customers feel good but not excellent. Still there is an opportunity for the
managementtoimproveinstoredecororambience.
Table2:AboutStoreLayout
Excellent(1)
37

Good(2)

Average(3)

Bad(4)

Poor(5)

62

Figure2:StoreLayout
Interpretation:Herealmostallcustomersfeelgoodorexcellentaboutstorelayout.Theycan
easilyfindthedisplayedproductsthattheyneed.Mostofthemfeelgoodaboutstorelayoutand
notexcellent.So,managementshouldfocusonthelayoutaswell.

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Table3:Abouttheproductrangeavailableinthestore
Excellent(1)

Good(2)

Average(3)

Bad(4)

Poor(5)

26

40

31

Figure3: ProductRange
Interpretation:40%ofcustomersaresatisfied withproductrangeavailable inplanethealth.
But many customer feel average or below average regarding product range. So, planet health
should increase product range, new products should be made available in every planet health
store as soon as possible. Company should satisfied maximum customer to stay in this
competitivemarket.
Table4:AboutProductavailabilityinthestore
Excellent(1)
3

Good(2)

Average(3)

Bad(4)

Poor(5)

26

45

23

Figure4:ProductAvailability

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Interpretation: Customers perception towards product availability in planet health store is

poor.45%ofcustomersfeelaverageandabout26%feelsbadorpooraboutproductavailability.
Managementhastotakesomeactiontoreducethislevelbymakingthenewproductsavailable
assoonaspossible.
Table5:Aboutattitudeofthestaffworkinginthestore
Excellent(1)

Good(2)

Average(3)

Bad(4)

Poor(5)

53

46

Figure5:StaffAttitude
Interpretation: Customerperceptiontowardsstaffwaspositive.Thecustomerslikethe
way the staff interacted and helped them. Some customers were not satisfied with staff
attitude.Lackofknowledgeabouttheproductmaybethereasonforthat.
Table6:Aboutproductknowledgeofthestaffworkinginthestore
Excellent(1)

Good(2)

Average(3)

Bad(4)

Poor(5)

30

56

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Figure6:ProductKnowledgeofStaff
Interpretation:customer felt that product knowledge of staff was average or below
average.Manytimesstaffwasnotabletoanswercustomerquestionsregardingtheusage
oftheproduct.Managementhavetoprovidesomesortoftrainingprogrammetoimprove
staffknowledge.
Table7:Aboutthebilling&paymentsystemofthestore
Excellent(1)

Good(2)

Average(3)

Bad(4)

Poor(5)

53

40

Figure7:BillingandPayment
Interpretation:Billingandpaymentsystemofplanethealth isexcellent.Accordingtostudy,
53% of customers felt excellent about billing and payment system. Few customers were not
satisfiedwithbillingandpaymentsystemastheyneedtowaitduringtherushhours.
4.1HypothesisTesting
NullHypothesisH0:<3positiveperceptiontowardsplanethealth.
AlternateHypothesis:H:3negativeperceptiontowardsplanethealth
4.1.1 Interpretation
Theobservedvalueismorethanthecriticaltabulatedvalue.Sowefailtorejectthenull
hypothesis.So,overallperceptionofcustomertowardsplanethealthispositive.
4.2Findings
Theambienceofthestoreisgoodasperthesurvey.
Thestorelayoutisveryconvenientandthecustomer findsthedisplayattractivetofind
theproductstheyneed.

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 Theproductrangeisconsideredtobeaveragebythecustomerandisatparwith theother
retailpharmacystores.
Productavailabilityisaissueofconcernforthestoreandthecustomershavetoleavethe
storewithoutbuyingtheproductduetononavailability.
The training provided to the staff, in terms of handling customers, is adequate as the
customersarefoundtobesatisfiedwiththeserviceofstaff.
Product knowledge of the staff is inadequate to make the customers understand about
usageofproduct.

The billing system is good butthere need to be two billing counters so that
duringtherushitreducesthewaitingtimeofthepeople.

5.Conclusion
The customers feel that the store ambience and decor are uptothe mark and does not require
changesinit.Thestorelayoutissuchthatthecustomerfindeasytosearchfortheproductsand
also is their way through it. The product range should be expanded both horizontally and
vertically to cater the needs of customers. The staffs are adequately trained in handling
customers and customer relationship which provides an edge to planet health over other retail
store.Butthestaffneedstobetrained inthetechnicalpartthatiscreatingunderstandingabout
variousproductsanditsusage.Thebillingandpaymentsystemisoptimisedforreducewaiting
time. While testing the hypothesis, it was found that the customer perception towards planet
healthwasonthepositiveside.Thusthemanagementismakingtherightmovestowardsbetter
customersatisfaction.
6.References
1. M.Rameshkanna&Dr.B.SenthilArasu (2010)AstudyonchangingConsumers Behaviour
towards online marketing with special reference to pharmaceutical products Consumer
Protection&Globalisation,pp812
2. AbhinandanKJain,PiyushKumarSinha,PreshthBhardwaj(Oct.Dec.2006)Planet Health,
Volume 31,Viklpa(IIMA),pp93 97
3. Kotler Philip Keller Kevin Lane, Koshy Abraham, Zha Mithileshwar (2008),Marketing
Management:ASouthAsianPerspective,13/e,PearsonEducationLtd.,NewDelhi
4. Ken Black (2008),Business Statistics, 4/e, Chapter no. 9,Wiley India Pvt. Ltd., New

Delhi
Biographical Notes
1. Mr. Sunil Patel had received M.B.A. degree from HNGU, Gujarat. Presently he is
working as Asst. Professor at K.J. Instituteof Management, Vadasma, Gujarat382708.

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He has 5 years of industrial and 2.5 years of academic experience. His area of interest
includesRM,QTA,MRandSDM,Email:sunilpateldrl@yahoo.co.uk
2. Mr.HimanshuBarothadreceived M.B.A.degreefromHNGU,Gujarat.Presently he is
working as Asst. Professor at K.J. Instituteof Management, Vadasma, Gujarat382708.
He has 2 years of industrial and 2.5 years of academic experience. His area of interest
includesFM,SAPM,CMAandRM,Email: himanshubarot_82@yahoo.com
3. Mr. Keyur Darji had received M.B.A. degree from HNGU, Gujarat. Presently he is
working as Asst. Professor at K.J. Instituteof Management, Vadasma, Gujarat382708.
He has 4 years of industrial and 1.5 years of academic experience. His area of interest
includesSM,IMCandMM,Email: darjikeyur@rediffmail.com
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