PHARMACY BUSINESS ANALYTICS: CASE STUDY
PHARMACY BUSINESS ANALYTICS: CASE STUDY
As an analyst on the Pharmacy Analytics team, you conduct analyses on impact of various marketing campaigns related to Patient Care Services. The objective of marketing campaigns for patient services is to increase consumer awareness on various health services offered at their pharmacy and drive incremental script volumes and gross margin for the business. Examples of services are medical reviews, vaccinations and prescribing and their availability varies by Province depending on regulations.
You have been asked to conduct the analysis on Shingles Vaccine Campaigns:
1. Alberta Provincial Campaign conducted in P4-P5 (weeks 13-20) of 2016
2. Rest of Canada (excluding Ontario Note 1) conducted in P6-P7 (weeks 21-28) of 2016
Note 1 Based on current provincial regulations, pharmacists in Ontario are not able to prescribe or administer (inject) shingles vaccines. There was no marketing campaign conducted in Ontario.
During your initial conversation with the business manager leading the campaign you have learned the following facts:
· In 2015 Alberta had similar campaign in P4 and P5 (weeks 13-20)
· In 2015 Merck, the manufacturer of the vaccine, also had consumer campaign in all provinces except Ontario (weeks 13-20)
Information available to you:
· Total Scripts, $ Revenue and $GM by Province, Fiscal Week, and Fiscal Year: see excel file Tab “Raw Data”.
· Market share information specific to Shingles Vaccine: see excel tab “Market Share”
· Direct Marketing Costs incurred as a result of the campaigns: see excel tab “Marketing Costs”
· Fiscal calendars for 2014, 2015 and 2016.
Case Study Instructions:
1) Outline the approach and your rationale to evaluate each campaign in terms of its effectiveness and efficiency.
competitive/comparative analysis, cost/profit analysis, (Market share comparison)
2) Prepare quantitative and qualitative assessment of each campaign results addressing the following questions:
a. What was campaign incremental contribution in terms of annual YOY growth, script volume, $ Revenue and $GM?
b. What was the ROI?
c. Which campaign had a greater impact? Justify your answer.
3) Please provide a forecast for 2017 and 2018 (assume that the campaign will take place year after year and with the same length)
4) Based on the information and data available to you, what additional insights are you able to provide to the business? Outline 2 key considerations for the patient care services team as they plan next year campaign.
Insights: market share: growth ↑market share↓
5) If you were to prepare this case study, how would you have done it differently? What other information would you request?
Submit your evaluation and analysis in the power point format along with the excel model supporting the quantitative assessment.
Feel free to use graphs, diagrams and other visual techniques as part of your presentation.
Glossary:
Scripts: # of prescriptions for Shingles Vaccine filled (Also referred to as “Rx volume”)
$ Revenue: Total sales amount = Unit Price x Scripts (Rx)
$ GM: Total Gross Margin = (Unit Price – Unit Acquisition cost) x Scripts (Rx)
