MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE
GRADUATE SCHOOL OF BUSINESS LEADERSHIP
EXECUTIVE MASTER OF BUSINESS ADMINISTRATION DEGREE

Design a marketing plan for a hypothetical company of your choice using PR Smith’s
ESOSTAC framework.
Executive summary
Situation-Where are we now
Objectives-where do we want to be
Strategy- how do we get there?
Tactics-how exactly do we get there?
Action- what is our plan
Control-how do we keep on track

Executive Summary

Vitality Pharmacy is a retail pharmacy operating in the Harare Belvedere area. It is a

registered Pharmacy with the Health Profession Authority (HPA), Pharmacist Council of
Zimbabwe (PCZ), and the Medical Councils of Zimbabwe (MCZA). Vitality Pharmacy has
been operating for 1 year 8 months on the Belvedere location and has grown a huge clientele
base in Belvedere and surrounding areas. All employees at Vitality Pharmacy have vast
experience in their respective areas of specialty. Teamwork is one of the unique
characteristics of the Vitality Pharmacy.

Just like other retail pharmacies, Vitality Pharmacy is equally faced with a multitude of
intractable macro and microeconomic conditions which include over regulations, inept policy
implementations, and governance interferer through statutory instruments. Zimbabwe's
current economic situation has not spared the Retail Pharmacy industry as huge disparities
have been noted in the cost of similar products mainly over-the-counter medications at
different retail pharmacies forcing patients and customers to compare prices before
purchasing at the lowest price offered. In as much as the new normal has seen pharmacies
becoming significant in providing prescribed medication in the health sector, Vitality
pharmacy lost two-thirds of its revenue during the lockdowns period March 2020 and January
2021 as customers preferred online purchase of medications, a service that is yet to be
provided by Vitality pharmacy. Vitality Pharmacy intends to establish two more retail
pharmacies in the next five years, diversify products portfolio by venturing into cosmetics
and adopt new technology to stay afloat

The economic situation in the country greatly affected the importation of drugs due to foreign
currency shortages in the market which has affected the operations of Pharmacies. This has
not spared Vitality pharmacy. Transportation of drugs to the patients has been a challenge
because of covid19 restrictions that have caused limitations in providing service to the
patients. Again, this has impacted the pharmacy's service delivery. Vitality pharmacy has a
SWOT analysis in place, which has seen strengths but is not limited to strong relations with
physicians. The ability to serve more customers is one of the pharmacy's opportunities while
a weak distribution network has been seen to be its major weakness. This has seen the
pharmacy facing intense competition from pharmacies such as Booties Westernd,
Greenwood, and Kensington pharmacies. The entrant of lower-cost competitors is the
pharmacy's greatest threat.

Vitality Pharmacy will have to adopt the new technology and ways of doing business to stay
afloat and expand its business. The pharmacy has adopted a 5s approach (sell, serve, sizzle,
speak and save) on objectives. Its strategies are centered on online value proposition,
integration, tools, E-pharmacy, and pharmacy delivery. The marketing mix approach has
been opted and will be adopted on the pharmacy's tactics. The actions to the set tactics will be
centered on social media marketing, influence marketing, native advertising affiliate
marketing, chatbots as well as augmented and virtual reality. The pharmacy intends to
monitor the marketing tactics used constantly, monitor consumer proactivity as comparing
actual sales to the marketing plan forecasts to identify further operation gaps, and institute
necessary measures to close the gaps.

SITUATION ANALYSIS
External Environmental analysis

Retail Pharmacies operating in most developing countries are currently facing a multitude of
intractable macro and microeconomic conditions. These include over-regulation, inept policy
implementations, and governance interference or harsh statutory instruments requirements.
(Amon Simba & Zivanayi Nyandoro,2016). Duplication of roles by governing bodies
conducting the more or less similar inspections, however, required to pay annual subscription
fees to each governing body (HPA, PCZ & MCAZ).

The current economic situation in Zimbabwe has not spared the Retail Pharmacy industry as
huge disparities has been noted in the cost of similar products mainly over the counter
medications at different retail pharmacies forcing patients and customers to compare prices
before purchasing at the lowest price offered (Paidamoyo Chipunza, Senior Health Reporter,
Herald, Jan 2020). Foreign currency shortages have led to shortages of imported drugs which
mainly include chronic conditions drugs hence leading to buying bulk orders in fear of
unforeseen economic situations or government regulations that may affect the purchasing
process exposing our customers.

With the current Covid 19 pandemic, Pharmacies are an important pillar in the health sector
providing the medication required. Vitality Pharmacy lost 2 thirds of its revenue due to the
lockdowns which occurred in March 2020 and January 2021 as only a few customers
purchased medications due to the lack of digital dispense methods and delivery services that
were implemented by larger pharmacies.

Customers now prefer home delivery services as they are convenient. This can create a new
window of opportunity for Vitality Pharmacy as it plans to establish 2 more retail pharmacies
in the newly built residential areas of Sandton and Domboshava in the next 5 years to reach
customers who travel long distances to get the service in the central business area. The
introduction of a mobile pharmacy will bring the medicines to their communities for the ease
of reach of many.

To stay afloat, vitality pharmacy wants to diversify its products portfolio by venturing into
cosmetics that are fast-moving in the market. This will ensure sustainability and bring
awareness on the importance of using trusted cosmetic brands, thereby curbing the use of
cheap bleaching products which are rife currently in the market. This has then necessitated
the need for a clear strategic plan for the pharmacy to meet the growth road map. Vitality
Pharmacy believes that it can play a meaningful role in the economic turnaround of
Zimbabwe and improve the retail pharmacy sector ensuring that everyone has access to
medication.

Market Segmentation

% Contribution

Over the counter medication chronic diseases medications

dermatology medications prescription medications

Vitality Pharmacy market can be divided into 4 segments which are;

Over the counter medication (OTC)

Vitality Pharmacy's current location at a busy shopping mall near the main road has attracted
customers from Belvedere and all those en route to Warren Park, Westlea, Kambuzuma,
Kuwadzana, Dzivarasekwa, Glaudina, and other areas along the Harare – Bulawayo road. Its
convenient location has seen the great performance on OTC at 50% contribution of sales, also
aided to Flu medication, cough medication, painkillers uptake due to the Covid 19 related
illnesses. A deliberate effort to ensure the availability of all key children and adult flu/cough
medications, vitamins supplements, anti-allergy, and painkillers in this segment will ensure
the growth of this segment.

Prescription medication

Prescription medications contribute 25% of the total sales. Research into all approved
prescription medications in Zimbabwe and gaps in the sector and investment in purchasing
the most prescribed and new introduction will benefit the growth of this segment and attract
new customers.

Chronic Diseases medications

According to MFS Southern Africa,18 Sep 2020, Non-Communicable Diseases (NCD) in

Zimbabwe are estimated to account for 31% of total death, with diabetes, hypertension, and
asthma being the main killers. This segment contributes 20% of our total sales, with the
mainline of purchase being high blood pressure and asthma medications. Critical shortages
due to forex challenges affected the importation of key drugs at the beginning of the year
however a steady improvement in availability has been noted. Mobile pharmacy to
communities will improve the sector as free BP checks will be conducted and an introduction
of delivery service to ensure patients will not be exposed due to restrictions.

Dermatology medications

This segment line is mainly of Acne Preparations (Topical), Antifungal (Oral), Antifungal
Preparations(Topical), Antihistamines (Oral), Emulsifying Ointment, Isotretinoin (Oral), and
Methotrexate (Oral). With the current influx of baby care ranges through South Africa, has
seen an improvement opportunity in this sector to avail all baby care range products required
by the market. There has been a growing trend of skin bleaching products that are harmful to
people and easily accessible on informal markets. This has initiated the interest in venturing
into cosmetics so that we may curtail the growth of these products in the market by offering
skin products such as the Portia M brand that is tested and certified by authorities such as the
Standard Association of Zimbabwe (SAZ).

Competitive Environment

Vitality Pharmacy faces intense competition from Booties, Westernd, Greenwood, and
Kensington pharmacies as they are strategically situated near hospitals, 24-hour clinics, or
testing centers. Some pharmacies have introduced delivery services and accept medical aids
which pulls a large customer base due to the shortage of cash inflow generally in the
economy. Vitality Pharmacy will have to adopt the new technology and ways of doing
business to stay afloat and expand its business.

SWOT Analysis
According to Whalley (2013) SWOT analysis provides an overall overview of the strength,
weaknesses, opportunities, and threats of a firm and its environment. The SWOT analysis,
whereby leaders assess an organization's strengths, weaknesses, opportunities, and threats, is
a useful and time-tested leadership tool Ritson (2013). This entails that strengths are internal
competencies a company needs to have, and weaknesses are the competencies that the
company does not have; these should be defined from the customers' perspective. This means
that opportunities and threats are external things that are going on outside your company, in
the larger market. Organizations can take advantage of opportunities and protect against
threats, but you can't change them.

VITALITY PHARMACY SWOT ANALYSIS

STRENGTHS WEAKNESSES
❖ A Digital Native Pharmacy offering ❖ Obsolete facilities
superior convenience, ease to access, ❖ Weak market image
and unique functions not offered by ❖ Weak distribution network
Zimbabwean Pharmacy's ❖ Higher overall services cost relative
❖ Special expertise, reputation, and to key competitors
cost advantage technology advantage ❖ Limited administration and
❖ An acknowledged market leader dispensary staff members.
❖ Strong relations with local ❖ Branch not visible from the main
community physicians, hence high road- obstructed by a supermarket.
referral rates
 ❖ Loyal customer base

OPPORTUNITIES THREATS
❖ The country has an increasing share ❖ Entry of lower-cost competitors
of technology customers interested ❖ Slower market growth
in full going digital with their ❖ The adverse shift in foreign
pharmaceutical, operations exchange rates
❖ Ability to serve additional customers ❖ Gazetted Statutory Instruments on
❖ Ability to grow rapidly because of foreign currency
strong increase and market demand. ❖ Volatile economic situation
❖ Ways to expand service lines to meet
a broader range of customer needs.

Critical Issues

The economic situation in the country greatly affected the importation of drugs due to foreign
currency shortages in the market which has affected the operations of Pharmacies.

Pharmacies have experienced shortages during the Covid-19 era including acquiring
medication because of regulatory issues, and business decisions, as well as many other
disturbances within the supply chain.

Transportation of drugs to the patients has been a challenge because of covid19 restrictions
that have caused limitations in providing service to the patients.

OBJECTIVES

Sell

The scope of the initial expansion should be set to Scale-up and embark on business activities
that guarantee at least 20% annual growth rate to Vitality Pharmacy's revenue in 2021 and
over the next 5years, scale-up and embark on business activities that guarantee at least 20%
annual growth rate to Vitality Pharmacy's revenue over the next 5years.

Serve
In terms of quality, Vitality Pharmacy seeks to provide 100% quality research and education
that adds to the quality of life of the members of the community and delivers research
findings that translate to cost savings to the community. Vitality Pharmacy also seeks to get
95% positive reviews from satisfied customers with the promptness and convenience of the
rendered services within the first 6 months following the introduction of new technology.

Sizzle

Vitality Pharmacy should get 5,000 new followers from its Facebook page and 5,000 from its
Instagram page. The company should introduce and scale up awareness programs that
educate and increase knowledge on current and topical issues that promote health and
wellness within 6 months.

Speak
Publications posted on the aforementioned social media pages should be liked, shared, and
reposted by 500 individuals in the community within the first 6 months following technology
enhancement.
Save
Going forward, Vitality Pharmacy prefers online promotion to produce substantial savings in
‘terms of advertising and costs.

STRATEGIES

The strategy essentially involves the need to answer the question of how the firm will be able
to arrive at the intended targets or to achieve the results required from the digital marketing
plan. Deepak, & Jeyakumar, (2019). As any other business firm that offers either goods or
services, the marketing strategy defines the nature of a firm's communication with its
customers to create awareness and finally sell pharmaceutical products. Strategy means how
an organization plans to get there in terms of fulfilling the objectives set. The strategy section
should also identify which segments of the market you aim to target with the plan.in this
discussion, we are going to state and explain each strategy used for Vitality Pharmacy.

Segmentation, Targeting, Positioning

According to Cortez, Clarke, & Freytag, (2021), market segmentation can be grouped into
two broad categories is Business to Customer and Business to Business, For Vitality
Pharmacy, the market will be segmented according to two broad categories, certain medicines
will be for the Business to Customer (B2C) segment aimed at patients based on their age,
while certain Business to Business (B2B) services will be for executives based on their
occupation. This will also be the case for the targeting exercise, which will be done first from
a B2B standpoint and subsequently from a B2C standpoint. Because both of these segments
regularly use online platforms to look for new information and track fascinating technological
and financial trends, these criteria suggest that online targeting may be more effective for
reaching them. Vitality Pharmacy will position its products and services based on four
characteristics to gain a competitive advantage: service quality and transparency, product
quality, price, and fulfillment time.

 Online Value Proposition 

The online value proposition for Vitality Pharmacy will emphasize convenience,
functionality, cost advantages, security, as well as overall transparency. As opposed to other
pharmacies, Vitality Pharmacy will prioritize customer experience and convenient delivery to
ensure customers achieve their health goals.

Integration 

By showing both the brand and its ideal consumer image, the marketing team will guarantee
that segmentation, targeting, and positioning, as well as the online value proposition, are
integrated into all communications, promotional material, and website blogs.

Tools

Influencer marketing, social media marketing, native advertising, and live events are
examples of specific strategies for promoting Vitality Pharmacy (Ryan, 2016). Facebook and
Instagram sites, as well as the corporate website, should be the three key communication
tools. Official YouTube videos or traditional advertising may be less effective during the first
months of the campaign, given the focus on direct customer contact (Kennada, 2019).
E-Pharmacy

Vitality Pharmacy will open an online eCommerce store, which will be built using
WordPress. This will make it easier to get about. Customers may not always have access to
needed pharmaceuticals since brick-and-mortar pharmacies have a restricted inventory.
Miller et.al. (2021). Customers will have easier access to some hard-to-find pharmaceuticals
since the pharmacy would pool its supply. E-pharmacies give prescriptions that some patients
may be hesitant to obtain, such as the morning-after pill, in addition to anything from general
headache treatment to cholesterol and diabetic medication. With inconspicuous packaging,
the script can be filled and sent in as little as 24 hours.

Pharmacy Delivery 
The procedure of having medicines mailed to the customer directly from the pharmacy where
the customer fills them is known as pharmacy delivery. Jain, Tadv & Pawar (2017).
Prescription delivery eliminates the need to physically drive to a pharmacy, allowing the
customers to collect their medications without having to stand in line or drive out of their
way.

TACTICS

Tactics are the strategic acts that drive the promotion of a product or service to affect certain
marketing goals (Chaffey and Smith,2017). In other words, the tactics comprise the
marketing mix. The marketing mix is made up of the four Ps: product, promotion, place, and
pricing.
Product

Over the counter, prescription, dermatology, and chronic disease medication will be supplied.
Vitality Pharmacy will adopt the market penetration strategy for these four product lines. The
pharmacy will do this to grow sales of our current products. The business will also be
introducing the cosmetics and beauty products line. Meetings with Ruby Lynn of Rubie Lynn
Cosmetics so that Vitality pharmacy will be the main distributor of her makeup range. 

Price

The business will maintain its affordable pricing strategy. Margins will be attained through
selling more products as a result of the great marketing and customer service efforts that the
business will undertake. There will be no additional fees for online purchases, and only minor
charges will be added for clients who live further than 4kms from our main branch.

Place 
The physical shop in Belvedere will continue to be operational for walk-in clients. However,
the business will also open an online store and customers will be able to view the product
range online as well as make purchases online. The e-pharmacy plan to be put in place will
ensure clients submit their prescriptions online, orders processed and delivered within 24
hours. This will ensure convenience and privacy for the clients.

Promotion

Vitality Pharmacy will use its official Instagram and Facebook pages to make posts, share
product details, and make health-promoting posts regularly. A monthly budget will be put in
place for boosting Facebook adverts and promoting Instagram posts. The business will also
make use of affiliate marketing as well as influencer marketing to create an online brand
presence and encourage online sales as advocated by Gretzel, (2018). The business will also
make use of virtual reality as well and augmented reality to encourage in-store visits as well
as a unique in-store experience.

Customer Service

Obsessive customer service will be the norm. To ensure that all the clients' expectations are
satisfied, all employees will attend training. This will occur at any cost in the short term,
understanding that it is necessary to build a successful company.

ACTIONS

For the different segmentation groups that Vitality Pharmacy wishes to attract, they will use
various marketing methods.

Social Media Marketing 

As part of the social media marketing initiatives, the business will engage with its customers
on Facebook and Instagram. To begin, there will be a need to market the pages to get a large
number of followers. Following that, the marketing team will use the platforms to convey the
pharmacy's narrative, create trust, give prompt customer support, and leverage social media
as a potent distribution channel for sharing the latest discounts, sales, and product lines.
Influencer Marketing

To boost social media brand presence, Vitality Pharmacy will use Influencer Marketing.
Influencers are the "everyday people" that have a large social media following to
communicate with their audiences (Tapinfluence, 2017). A fashion blogger on Instagram, a
wedding photographer on Pinterest, or a travel and tourism specialist on Twitter are all
examples of influencers. For example, if the pharmacy is to target patients with sugar
diabetes, there will be the use of an influencer who once suffered from the disease and
overcame it. The business will feature on the official social media sites such as testimonies.
The influencer will use video and image testimonies to communicate about the pharmacy's
brand. Some of the influencers the pharmacy will use will be Madam Boss as well as Miss
Chindiya to target the young and active.

Native Advertising

Pharmaceutical advertising and marketing, like the rest of the industry, is heavily regulated
therefore we will have to approach digital advertising with extra caution. Native advertising
is a broad term used to describe a variety of new online advertising formats that aim to
minimize disruption to a consumer's online experience by appearing in-stream, Tapinfluence.
(2017b). The pharmacy will run advertisements in the form of articles, with the substance of
these pieces clearly labeled as "sponsored" or "advertisement." That way the pharmacy will
be able to attract the attention of both medical doctors and patients in this manner, resulting
in increased brand awareness.

Affiliate Marketing

Vitality Pharmacy will engage in Affiliate marketing because the business already has a
website that is up and running, and with the eCommerce feature included, the business will
be able to engage affiliates to encourage purchases. This is a type of performance-based
marketing in which a company pays one or more affiliates for each visitor or customer that
they bring in through their marketing efforts. Because affiliates are paid on a per-sale basis,
this will assist the marketing team in achieving its goal of saving. An affiliate program's main
function is to sell products with minimal marketing spend waste.

Chatbots 
To provide excellent customer service, the business will deploy chatbots to directly
communicate with customers, which will replicate the response and behavior of a human
being. Chatbots are one of the most exciting marketing tactics that firms are using to interact
and communicate with customers, and Vitality Pharmacy will be the first pharmacy in the
area to implement this service. These bots will be able to handle requests such as
questionnaires, FAQs, and surveys, allowing for the automation of numerous time-consuming
operations and the provision of more personalized services

Augmented & Virtual Reality

Pharmaceutical companies can use VR and AR to break down walls between their business
and clients, partners, patients, or consumers, according to the Digital Marketing Institute. As
VR and AR technology becomes more integrated into our daily lives, Vitality Pharmacy will
use this immersive technology to break down walls between their business and clients,
partners, patients, or consumers. The pharmacy will have virtual reality headsets in the
branch to enable individuals to empathize with friends or loved ones who are suffering from a
variety of ailments by allowing them to experience what the victims are going through and
the anguish they are experiencing.

CONTROL

According to Deepak and Jeyakumar (2019,) strategic, annual plan, marketing profitability,
and effective controls are the four types of marketing controls that will be introduced.
Controlling marketing plans entails establishing criteria based on the plan, evaluating
performance against the plan, and correcting discrepancies. For budgeting and monitoring the
performance of a marketing plan, effective marketing controls are always essential.

In terms of intermediate and outcomes, the six marketing tactics used must be constantly
monitored. Vitality Pharmacy must track numerous performance indicators in social media
marketing, including the number of likes and reposts, the number of comments, the number
of brand references, and the number of leads generated by individual campaign activities
(Ryan, 2016). An effective agency will be engaged for content creation and monitoring of the
same social media pages. They will be providing monthly reports on performance which the
marketing team will assess.
Additionally, the company should monitor consumer proactivity, namely the intention to
proactively establish communication on social media to learn more about the offered products
and services. Influencer marketing performance will be monitored by analyzing traffic from
influencer marketing efforts and unique codes will be created and monitored to track sales.
To optimize the native advertising campaigns for better results its performance will be
monitored. In addition to the above-mentioned measures, Vitality Pharmacy will need to
control the signs of consumer dissatisfaction and also keep an eye on consumer proactivity,
such as the desire to initiate dialogue on social media to learn more about the products and
services on offer.

In addition to the aforementioned steps, polls and surveys will be used to keep track of client
input. Customers will be reached indirectly through online polls on the pharmacy's website,
which will pose specific questions about their experiences following the adoption of the
marketing plan. The marketing strategy will then be tweaked in light of the research findings.
Furthermore, actual sales in the target market are to be compared to the marketing plan
forecasts to determine whether any changes are required. If sales targets aren't fulfilled, extra
market research will be carried out to determine why the target market isn't responding to the
marketing efforts.

Various indicators will be utilized to gauge success and monitor the marketing plan's
performance for the online sales initiatives. Return on Investments (ROI), conversion rate,
cart abandonment rate, revenue, and ad spend, among other measures, will be continuously
watched to increase the eCommerce shop, online sales, and income.

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