4 Strategies to Increase OTC Sales in Your Pharmacy
In Malaysia, approximately 60% of customers visit pharmacies with the intention of purchasing OTC or non-prescription products. While specific statistics on daily pharmacy visits are less frequently reported, studies indicate that outpatient pharmacies can see around 100 patients per day. For instance, a study at Hospital Tangkak found that many respondents visited the pharmacy multiple times over 6 months, with 37.4% visiting two to three times and 32.9% visiting once during that period. This means there is a consistent flow of customers seeking OTC products and pharmacies need to be aware of your consumer needs.
Despite having customers walk through your pharmacy stores, some may find it still challenging to convert that foot traffic into actual sales. The challenge lies not just in having a wide range of products but also in how those products are presented and marketed. To thrive in this environment, pharmacies must adopt strategic approaches that not only increase visibility and accessibility of OTC products and also connect your customers in the right way.
Why Good Relationships with Pharmaceuticals Wholesaler and Distributors Important
Before working a marketing strategy for your non-prescription products in the store, your pharmacy needs to work with the right pharmaceutical wholesalers and distributors. The success of your OTC sales strategies depends on the availability of reliable suppliers who are capable of constantly delivering the right stocks of the high-demand products.
When pharmacies work with trusted wholesalers like PharmaRise, they gain access to a wide variety of quality OTC products that can meet customer needs. This allows pharmacies to implement the strategies mentioned above confidently, knowing they have the right products in stock to support promotional efforts and meet consumer demand.
Furthermore, building strong relationships with your distributors is also important because it helps you get best-selling or high demand SKU products restocked on time. This prevents running out of stock during busy shopping times, making sure your shelves stay full and your customers happy. When customers can easily find what they want, it improves their satisfaction and makes your pharmacy stand out from competitors.
Did you know? PharmaRise has reliable supply chain solutions to help all types of pharmacies streamline their inventory management.
Strategies to Increase OTC Sales
1. Planograms Layout
A planogram is a visual guide that shows you how to arrange products on your shelves to increase visibility and sales. By placing high-demand items at eye level and logically arranging products, your pharmacy can create a welcoming shopping experience that encourages customers to make impulse purchases. Studies show that a well-organized planogram can increase your front-end sales more easily by making it easier for shoppers to find what they need and find complementary products.
Let use pain relief section as an example:
- Top Shelf (Eye Level) – Brand-name pain relievers (e.g., Advil, Tylenol)
- Middle Shelf – Generic alternatives (e.g., Ibuprofen, Acetaminophen)
- Bottom Shelf – Specialty pain relief (e.g., topical creams, patches)
2. Cross-merchandising
Cross-merchandising is when you place related items from different categories together on your shelves. This can lead to impulsive buying, where customers end up buying more than they originally planned. For example, if you put cough syrup next to tissues and throat lozenges, customers are more likely to buy all three instead of just one.
It is also a great way to introduce new products over the counter. If you start selling a new pain reliever, placing it next to a popular brand can help customers notice it and consider trying it.
3. Promotions and discounts
Discounts and promotions are popular tactics that are important for increasing sales in Malaysia’s competitive pharmacy market. A lot of customers are very focused on prices, so they are more likely to buy things when discounts or special deals are offered. Using these pricing strategies can help increase sales and bring in customers who want to get good value for their money.
Here are some strategies to boost sales of non-prescription products in your pharmacy:
- Run flash sales to motivate customers to buy quickly.
- Use attractive displays to make your deals stand out.
- Focus on higher-margin items for discounts to protect your profits.
- Limit discounts to maintain the value of your brand and products.
4. Introduce Loyalty Program
Implementing a rewards program can motivate customers to come to your pharmacy more often and spend more money each time they visit. Members of loyalty programs typically spend 30-40% more money than those who are not members.
Pharmacies can encourage customers to purchase more OTC products by giving rewards for their purchases. Simplify the process for customers to keep track of their points and see how close they are to earning their next reward. This can encourage them to buy more in order to reach the next reward level.
