OTC Distribution in Europe, Exploring the Processes of Change – 2005

The processes of change presently running through the length of the OTC medicine supply chain will have a major impact across the whole European OTC industry. This important and in-depth, strategic report is written by James Dudley, one of Europe's leading OTC experts. It not only examines present structures of the OTC supply chain, it fully explores the processes of change.

Markets covered: Austria, Belgium, Czech, Denmark, Finland, France, Germany, Hungary, Italy, Netherlands, Poland, Sweden, Spain, Switzerland and the UK.

Published: June 2000
Ref: BS1049E
Pages: 380
Price: £1,495/$3,140/¥ 359,000

TABLE OF CONTENTS

Chapter 1
OTC Distribution in Europe
Exploring the Processes of Change

1. Introduction
2. European Monetary Union
3. The EMU and the Pharmaceutical Industry
4. The Impact of EMU on the OTC Industry
5. Monetary Union Influence on Industry Structures
6. The European Self-Medication Market – Towards a Definition
7. Estimates of the Market Size of the 15 Major European Markets in this Study
8. Share of Sales by Market 1998
9. Major Categories – 15 European Markets
10. European Category Growth – 1998 to 1999
11. European Country Market Growth 1998 to 1999
12. Growth Drivers in the European Non-Prescription Market
13. Market Place Efficiency
14. Brand Proliferation
15. The Structure of OTC Distribution Channel Environments in Europe
15.1. Impact of the Proposed European Directive on Dietary Supplements
16. Pharmacies in Europe
17. Growth of Retail Pharmacies
18. Restraints on Pharmacy Growth
19. Restrictions on Pharmacy Numbers
20. Ownership of Pharmacies
21. The Role of the Retail Pharmacy in Europe
22. The Importance of OTC Products to Pharmacies
23. Pharmacy Income from Dispensing Prescriptions
24. Pressures on Pharmacies
25. Pressures from Social Healthcare System
26. Restrictions on Merchandising of OTC Medicines
27. Prices and Margins – Self Medication
28. Price Protection
29. Evolving Competitive Advantage of Pharmacy Groupings
30. Organisation Marketing Cohesiveness
31. Structured Buyer Power
32. Co-operative Ownership of Wholesalers by Pharmacists
33. Virtual Pharmacy Chains
34. Voluntary Trading Organisations (VTOs)
35. Small Multiples
36. The Growth of Pharmacy Chains
37. Retail Co-Operatives
38 Supermarket Chains – A New Force in Pharmacy Retailing
39. Non-Pharmacy Distribution
39.1 Drugstore Chains
39.2 Independent Druggists – VTO a Key Element in Survival
39.3 Hungary Herbalists/Filoteka
39.4 Supermarkets
39.5 Druggists and Healthcentres within Supermarkets
40. Lobbying by Supermarket Chains
41. Marketing Formula Retail Chains
42. Private Label
42.1 Brands Marketed by Retail Groupings
42.2 Brands Owned by or Exclusively Marketed through Specific Retail Chains
42.3 Brands Owned by Pharmacists' Co-operatives
43. The USA as a Model for the Future
44. The Effects of Private Label on Proprietary Manufacturers' Brands

List of Tables

Table 1
VAT Rates Affecting Pharmaceuticals and OTC Products – Euro-zone States 2000

Table 2
Pharmaceutical Prices Euro-zone 1999 % Difference Between European Average Price

Table 3
Europe's 15 Major Markets, Rx:OTC Ratios 1990-1998

Table 4
Non-Prescription Medicines Category Growth 1998 to 1999

Table 5
Non-Prescription Medicines Country Market Growth 1998 to 1999

Table 6
Number of Brands – Europe's Major Markets

Table 7
Retail Pharmacy Share of the OTC Market by Category % Share by Value

Table 8
Retail Pharmacy Growth 1986-1998/9

Table 9
Methods of Control on Pharmacy Numbers

Table 10
Regulated Ownership of Pharmacies in Europe

Table 11
Retail Pharmacies - % Sources of Business Turnover

Table 12
Pharmacist Remuneration for Dispensing Social Healthcare Prescriptions

Table 13
Healthcare Reforms Impacting on Pharmacy Business

Table 14
Pharmacies – Average Percentage Growth in Prescription Medicines (Value) 1989-1991 Compared to 1991-1993, 1993-1996, and 1996 - 1998

Table 15
Average Pharmacy Margins on Dispensing 1994 - 1998

Table 16
Constraints on Merchandising in Pharmacies OTC Medicines

Table 17
Estimated Mark Up Structure OTC Medicines

Table 18
OTC – Retail Price Maintenance Europe

Table 19
Pharmacist Co-operative Owned Wholesalers 1999

Table 20
Emerging Virtual Pharmacy Chains in Europe 1999

Table 21
Europe's Leading Retail Pharmacy Chains 1999

Table 22
Retail Co-Operatives – Number of Pharmacies and Estimates of Market Share

Table 23
Belgium Leading Retail Co-Operatives 1999

Table 24
Druggist and Drugstore share of National OTC Turnover and Permitted Product Classification 1999

Table 25
Sales of OTC Products through Supermarkets 1999

Table 26
Registered Medicinal Products Permitted for Sale in Supermarkets

List of Graphs

Graph 1
Split of the Self-Medication Market (15 European Markets) 1998

Graph 2
Development of Sales of the Total Non-Prescription Bound Market 1990-1998 (Est)

Graph 3
Split of European Non-Prescription Bound Market 15 European Markets by Percent of Value 1998

Graph 4
The Split of OTC (Self-Medication) Purchases 15 European Markets by Value 1998

Graph 5
The Split of OTC Turnover by Category – European Markets 1999

Graph 6
Gains and Losses in the European Non-Prescription Market

Graph 7
Key Markets – Europe 1999 SOM of Self-Medication Turnover through Pharmacies

Graph 8
Pharmacy Numbers Per Market 1999

Graph 9
Population per Pharmacy 1999

Graph 10
Private Label Market % Share by Category

List of Figures

Figure 1
Composition of the Self-Medication Market

Figure 2
Growth Clusters European OTC Markets 1998 - 1999

Figure 3
Marketing and Procurement Competitiveness

Chapter 2
Pharmaceutical Wholesaler Strategies

1. Introduction
2. Consolidation of the Pharmaceutical Wholesaling Industry
3. De-mutualisation of Pharmacist Owned Wholesale Co-operatives
4. European Regional Expansion of Pharmaceutical Wholesalers
5. Conclusions
6. Vertical Integration within the Supply Chain
6.1 Services
6.2 Manufacturing
6.3 Pre-Wholesaling
7. Forward Integration into Retailing
8. European Pharmaceutical Wholesaler Alliances
9. International Pharmaceutical Service Organisation (IPSO)
9.1 Europharm Logistics
9.2 Organisation des Rιpartiteurs Pharmaceutiques Europιens (ORPHE)
10. Conclusions

List of Tables

Table 1
% Wholesale Market Share – Top 3 Wholesalers by Market 1999

Table 2
Leading Regional Pharmaceutical Wholesalers Rank Position by Country Market 1999

Table 3
European Wholesalers – Pre-wholesaling Activities 1999

List of Graphs

Graph 1
Reduction in Wholesalers 1980 - 2000

Graph 2
Europe's Leading Wholesalers % Share of Pharmaceutical Wholesaling 1999

List of Figures

Figure 1
Pharmaceutical Wholesaler Strategies in Europe

Figure 2
Regional Wholesaler Activities along the Supply Chain 1999

Chapter 3
The Developing Rτle for E-Commerce in OTC Distribution

1. Introduction
1.1. Internet and Intranet Connectors and Loops along the Supply Chain
1.2. Business to Business E-Commerce Applications
1.3. Business to Consumer(B2C) E-Commerce Applications
1.4. Consumer Based Wholesaler Sites
2. Opportunities for Business to Consumer E-Commerce in Europe
3. On-Line Retailing Models
3.1. Independent Pharmacy Home Pages
3.2. "Clicks and Mortar' Business
3.3 On-Line 'Pure Play' Retailers
4. Advantages and Disadvantages of the Different On-Line Models
4.1. Independent Pharmacy Model
4.2. "Clicks and Mortar' Business
5. Manufacturer On-Line Strategies
6. Development of On-Line Commerce in Pharmaceuticals - Europe
6.1 E-Commerce in Denmark
6.2. E-Commerce in France
6.3. E-Commerce in Germany
6.4 E-Commerce in Italy
6.5. E-Commerce in the Netherlands
6.6. E-Commerce in Sweden
6.7. E-Commerce in Switzerland
6.8. E-Commerce in the United Kingdom
7. Conclusions
8. Legality of E-Commerce for Medicines in Europe
9. The E-commerce Directive – European Union
9.1. Restrictions on E-Commerce for Medicines
9.2 The Future Regulatory Environment for E-commerce in Medicine
10. Consumers Purchasing Medicines on the Internet
11. Attitudes to On-Line Medicines by Pharmacists
12. Conclusions – E-Commerce in OTC Medicines in Europe

List of Tables

Table 1
Top Internet Countries

Table 2
Top E-Commerce Countries 1998 – 2002

Table 3
Top E-Commerce Categories 1999

Table 4
Main Reasons Consumers Give for Using the On-line Health Web

Table 5
On-Line Commerce in Pharmaceuticals – Regulatory Status in Europe - 2000

List of Figures

Figure 1
Integrating On-line and Off-line Retail Business Models

Figure 2
Manufacturers' Integrated On-Line and Off-Line Demand and Fulfilment Models

Chapter 4
Belgium

1. Introduction – The Belgian OTC Market
2. Structure of the Belgian Market
3. Professional or Semi-ethical Brands
4. Consumer OTC Brands
5. Classification of Medicines
6. Prescription Sector
7. Price Control
8. The Changing Business Environment
9. Regulatory Environment for Pharmaceutical Distribution in Belgium
10. Structure of Distribution for Self-Medication in Belgium
11. The Retail Pharmacy Sector Belgium
12. Retail Pharmacy Types in Belgium
13. Co-operatives
14. Co-operative Strategies
15. Independents
16. Pharmacy Economies Belgium
17. Trade Margins and VAT
18. Pharmaceutical Wholesalers
19. OTC Distribution in Belgium – Change Drivers for The Future
20. Expansion of Leading Retail Co-operatives into Well Structured Pharmacy Chains
21. Consolidation of the Wholesaler Sector
22. Incursions of German, French and Dutch Wholesalers into the Belgian Market

List of Tables

Table 1
Retail Pharmacies by Type, Belgium 1999

Table 2
Regional Indexation of Average Pharmacy Turnover 1999

Table 3
Major Wholesalers Belgium Share of Pharmaceutical Wholesale Business

List of Tables

Graph 1
Total Market 1989-1999

Graph 2
Pharmacy Development Belgium 1987 to 1999

Graph 3
Average Pharmacy Turnover – Sales by Product Type 1999

List of Figures

Figure 1
Outline Structure of OTC Pharmaceutical Distribution in Belgium

Chapter 5
France

1. Introduction – The French OTC Market
2. Sales Split of the Total Non-Prescription Bound Market
3. Sales Split of the Total OTC Market in France
4. Medicine Classification and the Structure of the French OTC Market
4.1 Directive 92/26/EEC – Classification of Medicines
4.2 Legal Definition of Non-Prescription in France
5. Advertising Regulations
6. Use of Trademarks for Medicinal Products
7. The Prescription Sector
7.1 Government Price Controls and Reimbursement Systems
7.2 Price Control
7.3 Reimbursement Bands
7.4 Positive List of Products for Reimbursement
8. Controls on Healthcare Expenditure
8.1 Controls on Pharmaceutical Expenditure
8.2 Supply Side Controls
8.2.1 Pricing
8.2.2 Reimbursement
8.2.3 Promotion
8.3 Consumption Controls
8.3.1 Doctors
8.3.2 Patients
8.3.3 Distributors
9. Healthcare Reforms 1993-1998
10. New Reforms Announced in 1999
11. Structure of Distribution for Self-Medication in France
11.1 Structure of the French Non-Prescription Bound Market
11.2 Types of Non-Prescription Product
12. The Retail Pharmacy Sector
13. Pharmacy Density by Region
13.1 Structure of Retail Pharmacy Economics
14. Prices and Margins
14.1 Cash Flow
15. Consumer Attitudes Towards Pharmacists
16. Presentation of Non-Prescription Bound Brands
17. Non-Pharmacy Channels
17.1 Health Centres
18. Non-Pharmacy Distribution in France
19. Grocery Market for Multivitamins
19.1 Movement to Non-Pharmacy
20. Pharmaceutical Wholesalers
21. Manufacturer Strategies in the Pharmacy Sector
22. Pharmacy and Non-Pharmacy Strategies
22.1 E-Commerce
23. Distribution in France: Change Drivers for the Future

List of Tables

Table 1
Pharmacy Demographics According to Population 1996

Table 2
Distribution of Retail Pharmacies by Region in France

Table 3
Pharmaceutical Wholesaler's Share of Market and Distribution 1998

Table 4
Manufacturers % Sales Direct to Retail Pharmacies

List of Graphs

Graph 1
Development of the Total Non-Prescription Bound Market, 1987 -1999

Graph 2
Total Non-Prescription Bound Sales in France Split by Major Category(Value) 1999.

Graph 3
Total OTC Sales in France Split by Category (Value) 1999

Graph 4
% of Pharmacy Wholesale Purchases compared to Pharmatrend

Graph 5
Number of Retail Pharmacies in France 1962 - 1998

Graph 6
Pharmacy Sales by Source

Graph 7
% Consumers Seeking Pharmacist's Advice, 1994

Graph 8
Consumer Beliefs in Pharmacist Knowledge about Medicines Compared to Doctors

Graph 9
Presentation Preferences: Non-Prescription Bound Medicines

Graph 10
Presentation Preferences: Non-Prescription Bound Medicines by Age of Consumer

List of Figures

Figure 1
Outline Structure of OTC Pharmaceutical Distribution in France

Chapter 6
Germany

1. Introduction – The German OTC Market
2. Sales Split of Total Non-Prescription Bound Market in Germany
3. The Structure of the German Non-Prescription Bound Market
4. The Regulatory Environment in Germany
4.1 Directive 92/26/EEC – Classification of Medicines
5. Healthcare Reform 1992 to 1999
5.1 Price Reductions
5.2 Price Freezes
5.3 Limited Budget for Pharmaceuticals
5.4 Patient Co-Payments
5.5 Positive Lists
6. Self-Medication Definition
7. The Regulatory Environment for Pharmaceutical Distribution in Germany
8. Structure of Distribution for Self-Medication in Germany
9. Distribution Channel Systems for Pharmacy only OTC Medicines
10. The Retail Pharmacy Sector Germany
11. Density of Pharmacies by State
12. Structure of retail Pharmacy Economics Germany
12.1 Profitability
12.2 Pharmacy Growth in the Old Western States
12.3 Shakeout Prospects in the Western States
13. Pharmacy Development in the Eastern States
14. Threats to Uniform Pricing of Pharmacy Only OTC's and Pharmacy Independence
15. Pharmacy Turnover Analysis
16. Attitudes of German Pharmacists to Manufacturer Promotional Communication
16.1 German Pharmacist Attitudes to Manufacturers' Websites
16.2 German Pharmacist Attitudes to Product Recommendation
17. The Impact of Healthcare Reforms on Pharmacy Turnover
18. Prices and Margins
19. Free Sale Products in Non-Pharmacy Channels
19.1 Share of Category Sales in Non-Pharmacy Outlets
20. Growth of Pharmacy Compared to Non-Pharmacy Sales
21. Drug Stores
21.1 Druggists
21.2 Druggist-Markets
22. Health Food Shops (Reformhauser)
23. Mass Market Trends
24. Filling Station Forecourt Stores
25. Distance and On-Line Shopping
26. German Consumer Usage Attitudes and Sources of Information
27. GP Attitudes to OTC Self-Medication
28. Pharmacy Customers' Perceptions of Service Quality
29. Conclusion
30. Pharmaceutical Wholesalers Germany
31. Business Environment Factors
32. Margins and Net Earnings
33. Wholesaler Strategies Germany
34. Wholesaler Customer Services
35. Logistics
35.1 Gehe
35.2 Sanacorp
36. Pharmacy Marketing and Education Packages – A Key Service
37. Wholesaler Strategies for the Future
37.1 Vertical Integration and International Strategies
37.2 Pan European Channel Management
37.3 Acquisition – A Key Strategy
37.4 European Expansion
37.5 Conclusion – Wholesaler Strategies
38. Retailer Co-operatives
38.1 Sanacorp
38.2 Restructuring of Sanacorp
38.3 Prognosis for Retailer Co-operatives
39. German OTC Distribution the Future to 2005
40. E-Commerce

List of Tables

Table 1
Growth in Total Health Insurance Expenses 1994 – 1998 Western States Germany

Table 2
Regional Share of Pharmacies Compared to Percentage Population, Germany

Table 3
Germany – The Number of New Pharmacy Start-Ups Net of Closures Western States 1986-1997

Table 4
Pharmacist Perceptions about Manufacturer Promotional Information

Table 5
Pharmacist Claimed Criteria for OTC Brand Recommendation

Table 6
Average Wholesaler and Pharmacy Margins in Germany

Table 7
OTC Products Germany 1998 Share of Category Sales in Non Pharmacy Outlets

Table 8
Growth of OTC Product Sales (excl. Prescription Business) by Channel Type $ Growth 1995 = 100

Table 9
Movements in Channel Market % Share for OTC Products 1995 –1999

Table 10
German Wholesaler Manufacturing Retailing Linkages

List of Graphs

Graph 1
Development of Total Non-Prescription Bound Market 1987 – 1999 (Est)

Graph 2
Total Non-Prescription Bound Sales in Germany – Split by Major Category (Value) 2000 (Est)

Graph 3
Growth in German Pharmacy Numbers

Graph 4
Number of Inhabitants per Private Pharmacy 1961-1999

Graph 5
New Eastern States Number of Inhabitants per Pharmacy 1991 to 1997

Graph 6
Prescriptions as a Share of Average Pharmacy Sales

Graph 7
Sales Development – Gross Turnover Typical Pharmacy 1980-1998

Graph 8
OTC Products Share of Non-Pharmacy Channels Sales by Category 1999

Graph 9
Concentration of Wholesalers Germany 1982 to 1999

Graph 10
Germany Pharmaceutical Wholesalers' Market Share 1995 - 1999

Graph 11
Wholesaler Turnover West Germany 1992 to 1998

Graph 12
Income as % of Turnover Anzag, Gehe and Sanacorp 1995 - 1998

Graph 13
Sanacorp 1982 to 1998 Market Share Development

List of Figures

Figure 1
Structure of the German Non-Prescription Bound Market - 1999

Figure 2
Outline Structure of Pharmaceutical Distribution in Germany

Figure 3
Wholesaler Customer Services

Figure 4
German Pharmaceutical Wholesaler Strategies

Figure 5
Outline Strategic Direction of Major German Pharmaceutical Wholesalers - 2000

Chapter 7 - Italy
1. Introduction – The Italian OTC Market
2. Sales Split of Total Non-Prescription Bound Market in Italy
3. Medicine Classification and the Structure of the Italian OTC Market
4. Price Controls
5. The Regulatory Environment for Pharmaceutical Distribution Italy
6. Structure of Distribution for Self-Medication in Italy
7. Pharmacies
7.1 Structure of Pharmacy Economics
7.2 Prices and Margins
7.3. Retail Pharmacy Chains in Italy
7.4. Italian Pharmacist Attitudes to Self-Medication
8. Pharmaceutical Wholesalers Italy
8.1. Alleanza Salute Italia (Alliance UniChem)
8.1.1. Customer Services
8.1.2 Private Label OTC Products
8.1.3. Automation
8.2 Phoenix
8.3 Pharmacists/Wholesaler Co-operatives
8.4 Gehe
8.5 Municipal Pharmaceutical Wholesalers
9. Manufacturer Strategies
10. E-Commerce
11. Italian OTC Distribution – Change Drivers for the Future

List of Tables

Table 1
Pharmacy Density by Region Italy

List of Graphs

Graph 1
Development of Total Non-Prescription Market

Graph 2
Total Non-Prescription Bound Sales in Italy – Split by Major Category (Value) 1999 (Est)

Graph 3
Division of Pharmacy Sales Italy 2000 (est)

Graph 4
Growth of Pharmaceutical Wholesalers Italy 1989 - 1999

Graph 5
Estimated Pharmaceutical Wholesaler Market Share Italy 1999

List of Figures

Figure 1
Structure of the Italian Non-Prescription Bound Market

Figure 2
Outline Structure of OTC Pharmaceutical Distribution in Italy

Chapter 8
The Netherlands

1. Introduction – The Dutch OTC Market
1.1 Retail Sales
2. Sales Split of Key Categories
3. Classification of Medicines
4. The Prescription Sector
5. Pharmacy Regulations
6. Structure of Distribution for Self-Medication in the Netherlands
7. Druggists
8. Leading Druggists Chains and Voluntary Trading Groups
9. D A Druggists – Dyna Retail
10. The Marketing Formula
11. Membership Participation
11.1 Kruidvat
11.2 Trekpleister
11.3 Etos
11.4 Boots the Chemist
11.5 Schlecker
12. Private Label – The Netherlands
12.1 Private Label Druggists
12.2. Pharmacy – Private Label
13. OTC Retail Prices – The Netherlands
14. Pharmacies – The Netherlands
15. Dutch Pharmacists' Influence on Doctors' Prescribing Behaviour
16. Pharmacy Groupings – The Netherlands
17. Retail Pharmacy Chains
17.1 Samen W. Apothekers (SAN)
18. Distance Selling – The Netherlands
18.1 E-Commerce
19. Manufacturers' Strategies
20. Pharmacy Only Suppliers
21. Major Account Management – Druggist Chains
22. Channel Influences on Purchase Source & Choice of Brand
23. Wholesalers – The Netherlands
24. Full Line Wholesalers
25. Short Line Wholesalers
25.1 OPG
25.2 Brocacef
25.3 Multipharma (Novartis)
25.4 Regional Short Line – Wholesalers
26. Wholesaler Strategies – The Netherlands
27. The Netherlands OTC Distribution – Factors Driving Change
27.1 Changes to the Pharmacy Monopoly
27.2 Growth of Druggist Multiples
27.3. Abolition of Fixed Prices
27.4 Further Vertical Integration of the Wholesale Sector
28. Conclusion

List of Tables

Table 1
% Share of Value Sales per Category in Druggists, Netherlands

Table 2
% Share of OTC Sales(value) of Private Label Brands

Table 3
Private Label % Share of Key Categories in Druggists 1999 – 2000

List of Graphs

Graph 1
Development of Total Market 1990-1999 (Est)

Graph 2
Total Self Medication Market – Split by Major Category (Value) 1999 (Est)

Graph 3
Change in the Number of Druggists 1984 to 1999

Graph 4
Leading Druggist Chains & Voluntary Trading Groups Share of the OTC Market through Druggists

Graph 5
Independent Druggist Membership of Dyna Retail by Marketing Formula 1998

Graph 6
Netherlands – Change in the Number of Pharmacies 1984 - 1999

Graph 7
Leading Wholesalers – Share of the Retail Pharmacy Market – The Netherlands

List of Figures

Figure 1
Outline Structure OTC Pharmaceutical Distribution in the Netherlands

Chapter 9
Poland

1. Introduction – The Polish OTC Market
2. Sales Split of Key Categories
3. The Regulatory Environment in Poland
3.1 Classification of Medicines
3.2 Registration
3.3 Distribution
3.4 Pricing
3.5 Advertising
3.6 VAT
4. Distribution Environment
4.1 The Retail Environment
4.2 Wholesalers
4.3 Role of Pharmaceutical Wholesalers in Poland
4.4 Pharmacies
4.5 Non Pharmacy
5. Poland, The Future

List of Graphs

Graph 1
Development of the Total Self-Medication Market, Poland, 1990-1999

Graph 2
Total Self-Medication Sales – Split by Major Category (Value) 1999 (est)

Graph 3
Poland Pharmaceutical Wholesalers' Share of Market 1999

Chapter 10
Spain

1. Introduction – The Spanish OTC Market
2. Sales Split of Total Non-Prescription Bound Market in Spain
3. Structure of the Market
4. The Regulatory Environment in Spain
4.1 Directive 92/26/EEC – Classification of Medicines
4.2 Registration
4.3 Legal Definition of Self-Medication in Spain
5. The Prescription Sector
5.1 Reimbursement
5.2 Pricing/Price Controls
6. Advertising
6.1 Use of Brand Names
7. The Changing Business Environment
7.1 Healthcare Reforms
8. The Regulatory Environment for Pharmaceutical Distribution in Spain
9. Structure of Distribution for Self-Medication in Spain
10. Pharmacies
11. Pharmacy Number Controls
12. Pharmacy Density by Region
12.1 Pharmacy Economics
12.2 Pricing and Margins
13. Spanish Supermarkets' Challenge to the Pharmacy Monopoly
14. Consumer Attitudes to Self-Medication
15. Pharmaceutical Wholesalers
16. Wholesaler Strategies
16.1 Cofares
16.2 Safa Galenica
17. The Future for Wholesalers in Spain
18. Spanish OTC Distribution – Change Drivers for the Future

List of Tables

Table 1
Spain Wholesalers' Share of Pharmaceuticals Turnover 1999

Table 2
Cofares Group Regional Companies

List of Graphs

Graph 1
Development of Total Non-Prescription Bound Market 1988 – 1998

Graph 2
Total Non-Prescription Bound Sales in Spain – Split by Major Category (Value) 1999

Graph 3
Structure of the Spanish Pharmaceutical Market 1996-1998 - %$ Share

Graph 4
Spain Retail Pharmacy Numbers – 1989 - 1999

Graph 5
Distribution of Pharmacies by Region 1999 Estimates

Graph 6
Pharmacy Sales % by Value 1999

List of Figures

Figure 1
Outline Structure of OTC Pharmaceutical Distribution in Spain

Chapter 11
The UK

1. Introduction – The UK OTC Market
2. Sales Split of Total Non-Prescription Bound Market in the UK
3. Structure of the Market Demand
3.1 Semi Ethical or Professional Brands
3.2 Consumer Professional Brands
3.3 OTC Brands
4. The Regulatory Environment in the UK
4.1 Directive 92/26/EEC – Classifications of Medicines
4.2 Legal Definition of Self-Medication in the UK
5. Structure of OTC Medicine Distribution in the UK
5.1 Sales of Non-Prescription Pharmaceuticals: Pharmacies compared to Grocers
5.2 Ratios of OTC Consumer Sales: Pharmacy compared to Grocery Sales
6. Structure of Distribution Channel Systems for Self-Medication in UK
7. Share of UK OTC Market by Outlet Type
8. The Retail Pharmacy Sector UK
8.1 Pharmacy Density in the UK
8.2 Pharmacy Types UK
8.3 Independent Pharmacies in the UK
8.4 Major Pharmacy Chains
8.4.1 Boots the Chemist
8.4.2 Gehe
8.4.3 UniChem in Retail Pharmacies – Moss Chemists
8.5 Grocery
8.5.1 Grocery Chains
8.5.2 Pharmacies Based within Supermarkets
8.5.3 Tesco
8.5.4 J. Sainsbury
8.5.5 Safeway
8.5.6 ASDA (Wal-Mart)
8.5.7 The Future for Supermarket Stores
9. Drug Stores
9.1 Superdrug
9.2 Supersave
10. Potential Abolition of Resale Price Maintenance for Non-Prescription Pharmaceuticals in the UK
11. Consumer Source of Purchase OTC Medicines UK
11.1 Consumer Attitudes to Pharmacies: Estimated Number of Visits to a Pharmacy a Year 1996
11.2 Consumer Loyalty to Pharmacies UK
11.3 Consumer Pharmacy Choice UK
11.4 Reasons for Consumer Pharmacy Choice UK
11.5 Reasons for Consumers Visiting a Pharmacy
12. Pharmaceutical Wholesaling in the UK
12.1 Pharmaceutical Wholesaler Strategies
12.1.1 AAH (Gehe)
12.1.2 Alliance UniChem
12.2 Conclusion Wholesaler Strategies
13. Change Drivers in OTC Distribution 1999 to 2004
13.1 Independent Sector
13.2 The Abolition of Resale Price Maintenance
13.3 Growth of Supermarket Share of the OTC Market
13.4 E-commerce in the UK
14. Manufacturer Strategies
14.1 Key Account Management
14.2 Category Management
14.3 Managing the Independent Pharmacy Sector
15. Conclusions

List of Tables

Table 1
Share of the OTC Market by Outlet Type UK 1999

Table 2
Structure of Retail Pharmacies in the UK 1999

Table 3
Grocery Outlets - % share of the Personal Care Market by Category

Table 4
Consumers-Shopping Non-Pharmacy Outlets for Medicines % Adults

Table 5
Where Consumers Claim to Shop for Medicines - % Adults

Table 6
Reasons Why Consumers Visit Pharmacies in the UK

Table 7
Gehe Turnover

Table 8
UniChem Turnover and Operating Profit in the UK 1998

List of Graphs

Graph 1
Introduction – The UK OTC Market

Graph 2
Total Non-Prescription Bound Sales in the UK – Split by Major Category (Value) 2000 (Est)

Graph 3
Structure of OTC Distribution in the UK % of Channel Sales 1999

Graph 4
Share of the UK Pharmacy Market for Non-Prescription Pharmaceuticals 1999

Graph 5
% Share of the UK Grocery Market for Non-Prescription Pharmaceuticals by Category, 1999

Graph 6
Ratio of OTC Sales Pharmacies Compared to Grocery 1999

Graph 7
Share of Pharmacy Numbers by Region 2000

Graph 8
Viability Status of Independent Pharmacies in the UK

Graph 9
Composition of Boots the Chemist Retail Business

Graph 10
Growth in the Number of Retail Pharmacies 1993 - 2000

Graph 11
Development in the Number of Moss Chemists 1990 - 1999

Graph 12
Number of Pharmacies in Leading Supermarket Chains UK 2000

Graph 13
Major Grocery Chains Retail Estates % of Outlets with a Pharmacy Service 2000

Graph 14
Tesco – Number of In-Store Pharmacies and Concessions 1981 - 1999

Graph 15
Pharmaceutical Wholesaler Market Shares 1999

List of Figures

Figure 1
Structure of the UK Non-Prescription Bound Market

Figure 2
Outline Structure – OTC Pharmaceutical Distribution Channels in the UK % Share of Market 1999

Figure 3
Distribution Channel Management in the UK

Chapter 12
Austria, Sweden, Denmark, Finland, Switzerland, Hungary and the Czech Republic

1. Introduction – The Austrian OTC Market
2. The Regulatory Environment in Austria
2.1 Classification of Medicines
2.3 The Rx to Non-Rx Switch Situation
2.4 Registration
2.5 Distribution
2.6 Pricing
2.7 Advertising
2.8 Reimbursement
3. The Distribution Environment in Austria
3.1 Pharmacy
3.2 Pharmacy Economics
3.3 Prices and Margins
3.4 Wholesalers
3.5 Ownership
4. Introduction -The Swedish OTC Market
5. The Regulatory Environment in Sweden
5.1 Classification of Medicines
5.2 Registration
5.3 Distribution
5.4 Pricing
5.5 Advertising
5.6 Prescription Charges
5.7 Use of Trademarks
5.8 Switching
6. Distribution Environment in Sweden
6.1 Pharmacy Distribution
6.2 Wholesalers
6.3 Retail Pharmacies
6.4 The Retail Environment
7. Manufacturers
7.1 Prices and Margins
8. E-Commerce and Distance Selling
9. Introduction -The Danish OTC Market
10. Sales Split of Key Categories
11. The Regulatory Environment in Denmark
11.1 Medicines Classification
11.2 Distribution
11.3 Pricing
11.4 Advertising
11.5 Trade Margins / VAT
12. Healthcare Reforms
13. The Distribution Environment in Denmark
13.1 Pharmacies
13.2 E-Commerce
13.3 Wholesalers
13.4 Manufacturers
14. Introduction -The Finnish OTC Market
15. Sales Split of Key Categories
16. The Regulatory Environment in Finland
16.1 Classification of Medicines
16.2 Distribution
16.3 Pricing
16.4 Advertising
16.5 Trade Margins / VAT
16.6 Use of Trademarks
17. Customer Information Channels
18. Rx to OTC
19. The Distribution Environment in Finland
19.1 Pharmacies
20. Sources of Pharmacy Turnover Finland
20.1 Wholesalers
21. Introduction – The Swiss OTC Market
22. Sales Split of Key Categories
23. The Regulatory Environment in Switzerland
23.1 Classification of Medicines
23.2 Medical Classification
23.3 Distribution
23.4 Pricing
23.5 Advertising
23.6 Trade Margins / VAT
23.7 Use of Trademarks
24. Healthcare Reforms
25. The Distribution Environment in Switzerland
25.1 Retail Pharmacies
26. Sources of Pharmacy Turnover Switzerland
26.1 Prices and Margins
26.2 Wholesalers
26.3 Distance Selling
27. Introduction – The Hungarian OTC Market
28. Sales Split of Key Categories
29. Two Markets – Registered Medicines and Herbal Products
30. Herbal Market – Split by Category
31 The Regulatory Environment in Hungary
31.1 Directives
31.2 Medicines Classification
31.3 Registration
31.4 Distribution
31.5 Pricing
31.6 Advertising
31.7 Trade Margins/VAT
31.8 Use of Trademarks
31.9 Reimbursement
32. The Distribution Environment in Hungary
32.1 Wholesalers
32.2 Distributors/Wholesalers
32.3 Pharmacy Co-operatives
32.4 Herbal Shops
32.5 Non Pharmacy Distribution
32.6 Distance Selling
33. Introduction – The Czech Republic OTC Market
33.1 Retail Sales Value
34. Sales Split of Key Categories
35. The Regulatory Environment Czech Republic
35.1 Directives
35.2 Medicinal Classifications
35.3 Registration
35.4 Distribution
35.5 Pricing
35.6 Reference Pricing System – Reimbursed medicines
35.7 Advertising
36. Advertising Controls in the Czech Republic
36.1 Patient Information
36.2 Trade Margins/VAT
36.3 Use of Trade Marks
36.4 Healthcare Reforms
37. The Distribution Environment – Czech Republic
37.1 Wholesalers
37.2 Pharmacies
37.3 Leading Pharmacy Chains in the Czech Republic
38. Non-Pharmacy Distribution
38.1 Distance Selling

List of Tables

Table 1
% Split of Prescriptions Dispensed at Four Reimbursement Levels

Table 2
Pharmacies Share of Self Medication in Switzerland, Key Categories

Table 3
Czech Republic Growth in Pharmacy Numbers 1990 - 1999

Table 4
Pharmacy Turnover by Type of Product

List of Graphs

Graph 1
The Austrian Total Non-Prescription Bound Market 1994 - 1998

Graph 2
Austria – Split of Self-Medication Market By Category(Value) 1998

Graph 3
% Pharmacy Sales – Prescription and Non-Prescription

Graph 4
Austrian Pharmaceutical Wholesalers Estimated Share of Market by Value 1999

Graph 5
Total Non-Prescription Market 1990 – 1998, Sweden

Graph 6
Development of Total Market, Denmark

Graph 7
Total Non-Prescription Sales – Split by Major Category (Value) 1998, Denmark

Graph 8
Development of Total Non-Prescription Bound Market 1990 – 1998, Finland

Graph 9
Total Non-Prescription Bound Market – Split by Major Category(Value) 1999

Graph 10
Development of Total Non-Prescription Bound Market, 1992 – 1998, Switzerland

Graph 11
Total Self-Medication Sales – Split by Major Category (Value) 1999

Graph 12
Market Shares Pharmaceutical Wholesalers, Switzerland, 1999

Graph 13
Development of Total Market 1990-1998 (Est) Hungary

Graph 14
Total Self-Medication Sales – Split by Major Category (Value) 1999 (Est) Hungary

Graph 15
Total Herbal Sales – Split by Major Category (Value) 1999 (Est) Hungary

Graph 16
Development of the Total Self-Medication Market – The Czech Republic 1990 – 1998

Graph 17
Total Self-Medication Sales – Split by Major Category (Value) 1999

Graph 18
$ Share Pharmaceutical Wholesalers in the Czech Republic 1999

Chapter 13
Company Profiles

1. Ahold, Summary
1.1 Etos – The Future
2. Gehe, Summary
2.1 Gehe's Sources of Business
2.2 Gehe's Wholesaling Market Share by Market
2.3 Gehe – The Future
3. Alliance UniChem, Summary
3.1 Alliance UniChem – Sources of Business, Europe
3.2 Wholesale Market Shares by Principal Market
3.3 Alliance UniChem Pharmaceutical Retailing
4. Pre-wholesaling Galenica and Alliance UniChem Joint Venture
4.1 Pharmacia UpJohn Agreement – Italy
5. Conclusion
6. Phoenix/Tamro, Summary
7.. Boots PLC, Summary
7.1 Boots Business Activities
7.2 Boots the Chemist
7.3 Boots the Chemist Strategy
7.4 New Store Investment
7.5 Acquisition of Irish Pharmacy Chain
7.6 Direct Marketing initiatives
7.7 Boots Retail International
7.8 Boots Retail International Strategy
7.9 The Netherlands
7.10 The Future for Boots
8. Galenica Holdings, Summary
8.1 Galenica Business by Activity
8.2 The Distribution Division
8.3 Retail Pharmacy Development
8.4 Pharmaceutical Manufacture
8.5 Generics
8.6 Restructuring for the Future
9. OPG Netherlands, Summary
9.1 OPG Sources of Business
9.2 OPG Pharmaceutical Wholesaling
9.3 Private Label OTC Brand, SAN
9.4 OPG Retail Chain
9.5 OPG International Linkages
9.6 The Future for OPG

List of Tables

Table 1
Ahold Turnover and Profitability 1998-1999

Table 2
Ahold Source of Business by Market

Table 3
Gehe Consolidated Sales & Profits 1999

Table 4
Gehe Group Turnover by Main Activity 1999

Table 5
Gehe Wholesaling and Retailing Activities - Europe

Table 6
Gehe's Wholesaling Market Share by European Market % 1999

Table 7
Alliance UniChem Turnover and Profitability 1998-1999 £ m Sterling

Table 8
Alliance UniChem Source of Business 1998-1999

Table 9
Alliance UniChem Subsidiary Companies

Table 10
Alliance UniChem Market Share by Principal Country

Table 11
Phoenix Wholesaling Market Share, Europe, % S Share

Table 12
Tamro Sales and Market Share in Europe by Country Market 1999

Table 13
Boots Turnover and Profitability 1997-1999 £ Sterling (Million)

Table 14
Boots the Chemist Retail Estate 1999

Table 15
Galenica Holdings Turnover and Profitability

List of Graphs

Graph 1
Boots plc Source of Business 1999

Graph 2
Galenica Source of Business

Graph 3
OPG Sources of Business by Activity, 1999

Graph 4
OPG Sources of Business by Geography 1999

Chapter 14 Conclusions of the Report – The Future for OTC Distribution in Europe
1. Conclusions
1.1. Socio Economic and Regulatory Factors
1.2. Competitor Factors
1.3. Innovatory Factors
1.4. Customer Factors
2. The Key Challenges to OTC Manufacturers
3. OTC Manufacturer Strategies
3.1. Organising for & Creating Strategies to Manage Multi-State or Pan-European Key Accounts
3.2. Efficient Consumer Response (ECR) – The Concept
3.2.1. How ECR Works
3.2.2. Management Culture and Organisation – Category Management
3.2.3. Enabling Technologies
3.2.4. Efficient Consumer Response – its Impact on the UK OTC Industry
3.2.5 Spread of ECR in Europe
3.2.6. European Wholesalers – Customer Response
3.2.7 Conclusions ECR
4. Consumer Access Management
4.1 End Customer Definitions in OTC Marketing
4.2. The Consumer Trial & Adoption Pathway as a Basis for Formulating Distribution Management into the Marketing Mix
4.3. Conclusion
5. Single Channel or Multi-channel Management Strategies
6. Multi-channel Strategies

List of Tables

Table 1
Brand Strategies in Trade Marketing Major European Markets (Pharmacy & Non-Pharmacy)

List of Figures

Figure 1
Change Factors in the European OTC Supply Chain

Figure 2
Efficient Consumer Response Linking Supplier & Retailer Key Functions

Figure 3
Consumer Trial & Adoption Pathway

Figure 4
Consumer Trial Adoption Pathway – Case Study Channel Management


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