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SITUATION Pfizer CHC, the consumer health division of one of the world's largest pharmaceutical companies, wanted to capitalize on the e-commerce and marketing potential of the Internet. Both initiatives, however, would require the right strategy and implementation. Specifically, Pfizer executives were worried about competing with their own distributors and retailers. And rightly so. Was it worth establishing a direct online shopping channel at the expense of hard-won and vitally important distributor/retailer relationships and the coveted shelf-space they bring?
Web Zeit was asked to complete a strategy engagement to help senior management understand the opportunities and risks in e-commerce and decide how to leverage the Pfizer brand, consumer health brands and Web site to exploit the potential of online commerce. We were asked to consider the e-commerce market for Visine, Bengay, Plax and other Pfizer CHC products and to look at the implications to both online retail channels (e.g. Drugstore.com, NetGrocer.com, CVS.com) and traditional sales channels (i.e. retailers, distributors, wholesalers). Our analysis of the market indicated that there was enormous potential for e-commerce for most of the Pfizer CHC brands.
While the profit margins associated with online commerce were great, the risks were also significant, namely alienating the traditional sales channels vital to the profitability of Pfizer CHC. Pfizer marketing and sales teams were adamant that online sales channels not impact their relationships with offline sales channels, namely drugstores, supermarkets and large retailers. We worked with Pfizer management on a two-tiered approach:
PFIZER.COM/CHC, PHASE TWO Pfizer CHC then asked Web Zeit to initiate an ongoing marketing and visibility project to:
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