Under the guidance of 3M’s Strategic Marketing Planner, we conducted a brand perception study and competitive analysis of 3M within the pharmacy channel. Through observational research, in-depth interviews, and our own survey design and analysis we were able to analyse how the brand is perceived by pharmacists in relation to their key competitors. Additionally, we identified key purchasing drivers and barriers. We leveraged our insights to offer recommendations regarding how 3M can be more impactful in this channel and where they can fill gaps in the market.

1. A COMPETITIVE JOURNEY THROUGH
THE PHARMACY CHANNEL
TERRI MORTRUD | DAWN SLEDGE | SVETLANA ARISTARKHOVA | CASSIE HOZ | JULIJA SEMIONOVA | DARIA SAVCHENKO
July 2014
www.3m.com

2. STEPS TO RX SUCCESS
METHODOLOGY
SECONDARY
RESEARCH
Develop a firm
foundation and
understanding of the
company and the
market
OBSERVE SURVEY ANALYZE
Thorough observation
of product line and
consumer purchase
behavior at 15
pharmacies
IN-DEPTH
INTERVIEWS
In-depth interviews
with five pharmacists
and industry expert to
understand dynamics
of the channel
Built a survey based
on secondary research
and key findings from
observational to
address gap areas
Sort through data to
draw conclusions and
insights to improve
business proposition
of 3M pharmacy
channel

3. KEY FINDINGS
PHARMACIES
CONCLUSION
Through the analysis of our secondary research, we were able to narrow our scope and focus specifically on the
pharmaceutical channel, as its importance in the Spanish healthcare system will begin to increase.
SECONDARY RESEARCH
AGING OF EUROPE
• Predicted life expectancy of 77.7 for males and 83.8 for females by 2020
in Spain
• Aging populations will lead to increases in the number of people suffering
from chronic, expensive-to-treat diseases and disabilities
• Changing consumption patterns
HEAVY RELIANCE ON PHARMACIES IN THE FUTURE
• NHS will begin to reduce it’s resources, this means 10% reduction in
hospital charts and less beds
• Consumers will begin to rely on alternatives such as pharmacies and
other channels

4. KEY FINDINGS
PHARMACIES
CONCLUSION
This means that there is still opportunity for 3M to expand, especially with their product lines: Futuro, NexCare and ColdHot.
OBSERVATIONAL
• Pharmacist can easily influence customers who do not know a specific
brand name
• Increasing aging population in addition to increasing life expectancy
means there’s a need for more products for pain and chronic diseases
• Supply is based on preferences of the fixed audience of pharmacy
consumers
• Pharmacists can forecast what the customer wants and order these
products for them
IN-DEPTH INTERVIEWS
• Out of the 10 pharmacies observed, 7 did not have 3M products
• Some providers showed a preference for private label brands
• Brands offered by observed pharmacies: Hansaplast, Compeed, Urgo,
Leukosan, Lainco, Salvat, Meda, Smith & Nephew, Hatmann, Dr
Scholl, VIADOL
• Waiting times during peak hours

5. AUDIENCE AND SEGMENTATION
SURVEYING
Segment by areas with highest
percentage of people over the
age of 65
2 weeks to complete
surveying
Chamberi 32.75%
Salamanca 32.05%
Moratalaz 31.65%
Retiro 31.38%
La Latina 32.05%
1
2
3
4
5Target audience of
pharmacists, not the
end consumer

6. RESPONDENT PROFILE
PHARMACISTS
37% male vs. 63% female 60% of respondents with 5-15
years of industry experience
41.8% of respondents aged 31 - 40

7. COMPARISON OF OVERLAPPING PRODUCTS
SECONDARY DATA
PRODUCT 3M HARTMANN MÖLNLYCKE SMITH & NEPHEW
Skin Care
Orthopedics
Medical Diagnosis
Adhesive Bandages
Personal Safety/Thermotherapy
Personal Care

8. OUR KEY COMPETITOR
ANALYSIS
VS
FAMILIARITY SMITH & NEPHEW MÖLNLYCKE HARTMANN 3M
LOW 89% 88% 3% 6%
MEDIUM 8% 12% 24% 52%
HIGH 3% 0% 73% 42%
Pharmacists surveyed said 3M and Hartmann are the top two choices in brands that they order, with 3M at 86% frequency and
Hartmann right behind with 82%.
CONCLUSION

9. OUR KEY COMPETITOR
ANALYSIS
ASSOCIATIONS SMITH & NEPHEW MÖLNLYCKE HARTMANN 3M
QUALITY 8% 4% 84% 90%
PRICE-QUALITY
RATIO
0% 2% 78% 83%
TRUST 6% 0% 87% 79%
INNOVATION 0% 0% 60% 76%
DURABILITY 6% 0% 61% 67%
3M is winning in almost every category except for trust. This could be because of their business mission. 3M prides themselves on
their innovation, while Hartmann focuses more on the client relationship with the brand.
CONCLUSION

10. OUR KEY COMPETITOR
ANALYSIS
3M and Hartmann are neck and neck: 2 for 2. There is one problem: 3M considers wound care one of their winning product
categories. However, according to pharmacists, Hartmann is addressing this better.
CONCLUSION
PRODUCT SMITH & NEPHEW MÖLNLYCKE HARTMANN 3M
WOUND CARE 8% 5% 70% 59%
CREAMS 15% 0% 35% 60%
BANDAGES 4% 4% 74% 67%
PAIN RELIEF 29% 5% 29% 43%

11. SWOT ANALYSIS
HARTMANN
S
TO
W
STRENGTHS
Focus on customer with total solution
Business strategy is adapted to demographic changes
OPPORTUNITIES
Expansion to emerging markets
Accommodating the needs of consumers in Iberia
THREATS
Might have difficulty gaining share of markets
outside of Europe since production is located in
Europe
WEAKNESSES
34% sales in Germany – need to adjust
production for other European regions
89% of sales in Europe – little expansion outside of EU
Most research conducted on European consumers
Europe is their primary market, so they are
knowledgeable of core issues and demand
Solutions for infection for quick healing results
Relationships with physicians/nurses to reduce
strain of daily treatment
Due to European economic instability, may lose
business due to dependence on this market

12. KEY PURCHASING DRIVERS
PHARMACISTS
RATIO OF PRICE TO QUALITY
SUPPLIER AGREEMENTS
79%
78%
CUSTOMER DEMAND
88%
TOP
THREE

13. KEY PURCHASING DRIVERS
CONSUMERS
85% Price
37% Trust
58% Quality
73% Pharmacist recommendation
61% Doctor recommendation
55% Ask directly for product
9% Browse displayed products
75% Ask for advice
39% Ask for a specific brand
22% No influence
72% Purchase what’s prescribed
19% Purchase least expensive
PURCHASE
INFLUENCERS
PURCHASE
PROCESS
DECISION
INFLUENCERS

14. BARRIERS TO PURCHASING
PHARMACISTS
QUALITY 72%
PRICE-QUALITY
RATIO
58%
TRUST 43%
DURABILITY 15%
INNOVATION 6%
SUSTAINABILITY 1%
3M is most highly associated with Quality and Price-Quality Ratio. These are the two main points that they communicate in their
messages, so this is successful. They are least associated with innovation in the eyes of pharmacists.
CONCLUSION
CLIENT DEMAND
REASONS FOR
SWITCHING
BRANDS
POOR SALES
PRICE-QUALITY RATIO
OVERALL QUALITY

15. POWER OF THE PHARMACIST
RECOMMENDATIONS
NEVER SOMETIMES FREQUENTLY ALWAYS
HARTMANN 7% 18% 66% 9%
3M 5% 45% 42% 8%
VS
Pharmacists are more likely to recommend Hartmann products. This may be related to their core business mission of establishing
strong relationships with key decision makers, building a bond of trust between Hartmann and the pharmacists.
CONCLUSION

16. POWER OF PHARMACISTS
CONSUMERS
0%94%
OF CONSUMERS FREQUENTLY BUY
RECOMMENDED PRODUCTS
There is a very slim likelihood of consumers not purchasing recommended products. 94% of pharmacists frequently recommend
brands and products to consumers but only half the time are referring 3M.
CONCLUSION
OF CONSUMERS NEVER BUY
RECOMMENDED PRODUCTS

17. LIMITATIONS OF STUDY
4 KEY NOTIONS
Sample size (n=70)
Did not survey end consumer
Key decision makers are hard to
contact
Time limitation

18. IDEAS ARE THE BEGINNING
points of all fortunes

19. BUSINESS CONCEPT
RECOMMENDATIONS
UPDATES IN STRATEGY
Establishing mutual communication with pharmacists
Driving sales in wound care
Reaching the end-consumer through targeted communication strategy

20. RECOMMENDATIONS
RELATIONSHIPS
RELATIONSHIPS
Despite the fact the 3M is considered to be high quality and well priced,
pharmacists have a strong sense of trust in the Hartmann Brand.
Hartmann is winning with pharmacists in the sense that they’re more willing
to recommend Hartmann products.
3M must invest more resources in relationship building with key decision
makers.
• Utilize 3M innovation center for yearly pharmacy conference highlighting
new innovations and product specialties
• Use this as a space to educate industry on key products related to
emerging trends in healthcare, such as the aging population
• Constant communication with pharmacists to understand their needs and
those of their clients
ACTION PLAN
BACKGROUND

21. RECOMMENDATIONS
ASSOCIATIONS
WOUND CARE
BACKGROUND
3M is highly associated with wound care, but Hartmann’s products are
recommended at a much higher rate.
Hartmann is also considered to be addressing wound care issues better
than 3M.
ACTION PLAN
3M needs to drive customers to the pharmacist requesting their products.
• Complementary product bundles such as brand-aids with creams in order
to drive cross-sales

22. RECOMMENDATIONS
COMMUNICATION
COMMUNICATION
BACKGROUND
3M is considered by pharmacists to communicate best with end-users when
compared to other brands (85%)
ACTION PLAN
Leverage this strength to become top of mind and drive consumers to the
pharmacy with the intention of purchasing 3M products.
• Develop a communication plan expressing the unique benefits 3M
provides to elderly consumers, i.e. creams developed for their specific
needs, etc.

23. THE APPENDIX

24. COMPETITIVE ANALYSIS
• Multinational medical technology company that is one of the
leading producers of advanced wound management
products
• Main areas of focus: orthopedic reconstruction (join
replacement systems), advanced wound management,
sports medicine, trauma
• Strategic priorities:
• Gain market share in established markets through
innovation and efficiency
• Build strong direct customer in emerging and international
markets and use to develop tailored products
• Invest more in R&D in support of innovation that will
maximize value
• Streamline operation and manufacturing in order to
maximize efficiency
• Growth through the acquisition of technologies,
manufacturing and distribution

25. COMPETITIVE ANALYSIS
• Global professional healthcare brand known for unique, high
quality product and innovative technologies that allow
patients to live better lives and help healthcare professionals
efficiently treat more patients to better care
• Main areas of focus: wound care, surgical products and
service provider to healthcare sector
• Strategic priorities:
• Innovation is a core part of Molnlycke’s DNA by helping them
offer new products that better suit their patients needs
• Drive expansion through innovation which allows company
to reinvest in the business