Is it possible for Apoteket AB to retain its customers after de-regulation? : A Case Study

Abstract: Purpose of the Study To study how Apoteket AB can retain its customers after the government decision to implement de-regulation in Swedish pharmaceutical market. Apoteket AB was the only state-owned pharmacy for more than 38 years but now they are in competition with other pharmacy operators including supermarkets and gas stations. The main purpose of this study is to find out those vital factors which are important to customers in selecting pharmacy operators for buying prescription and non-prescription products. Approach The study begins by reviewing the Swedish pharmaceutical market and parliament decision of de-regulation about Apoteket AB monopoly. The literature then reviews the PESTEL framework, Porter model, customer relationship management and 7 P’s of marketing mix. We use Umeå university library for gathering material for our literature review. After that the authors reviewed different pharmacy operators and potential entrants in the Swedish pharmacy market. For this case study the authors have gathered the data through customer survey and semi-structured interview. The data was collected in Umeå (Sweden) with the help of questionnaire. We have collected the data with the help of convenience sampling technique at different locations in Umeå. Interview was conducted with Apoteket AB brand manager to understand their point of view about our research question. SPSS was used for analyzing the quantitative data, mainly descriptive statistic and Mann-Whitney U test were used for this purpose. Finally all the information’s were carefully analyzed by comparing with theories before drawing the final conclusion. Findings Four important aspects of customer’s retention were found; which are more community pharmacies, extended opening hours, low prices of over the counter products and added value to individual customers. Our respondents also show great confidence over the Apoteket AB personnel (Pharmacists). On the other hand we have also found that people appreciate the removal of Apoteket AB monopoly. Furthermore, we have found that after the implementation of de-regulation in Swedish pharmacy market over the counter (OTC) products have shown a 20% growth. The reason behind this growth may be the easy excess to such products and extended opening hours of supermarkets. The authors have also observed that people are willing to buy prescription products from other operators.