Realigning Incentives to Achieve Desired Product Stocking Results

IndustryPharmaceutical Manufacturer
ProblemA manufacturer had two product launches upcoming and senior management was concerned about whether the proposed stocking incentives for retail pharmacy would achieve the budgeted results. The client sought to evaluate the factors used by retail pharmacies to determine whether or not to stock a new product.
PHSI SolutionPHSI developed and conducted a telephone/ fax survey of fifty retail pharmacy chains and over thirty independent pharmacies. The survey evaluated the factors influencing the stocking decision including discounts, dating, guaranteed sale, unmet therapeutic need, and cost per bottle. Survey results were analyzed by market segment to determine the specific factors that influence the decision to stock a product. PHSI provided recommendations to management suggesting a targeted strategy to achieve optimal results for upcoming product launches.
ResultsPHSI recommendations were implemented and the desired stocking objectives were achieved.