AU2009100216A4 - Improved cooperative business method - Google Patents

Description

598341P DIA:JO P/00/011 Regulation 3.2 AUSTRALIA Patents Act 1990 INNOVATION PATENT SPECIFICATION FOR AN INVENTION ORIGINAL Name of Applicant EMMANUEL MAHLIS Actual Inventor: EMMANUEL MAHLIS Address for Service: COLLISON & CO.,117 King William Street, Adelaide, S.A. 5000 Invention Title: IMPROVED COOPERATIVE BUSINESS METHOD The following statement is a full description of this invention, including the best method of performing it known to us: 2 IMPROVED COOPERATIVE BUSINESS METHOD FIELD OF THE INVENTION The present invention relates to improved marketing schemes and plans, streamlining of all processes relating to producing a final marketing plan and 5 marketing methods for use in supplying a co-operative group whilst utilising the compliance model requirements of companies financially supporting the co-operative group. DESCRIPTION OF THE PRIOR ART 10 A cooperative is an association of companies that are united voluntarily to meet common goals via a jointly owned and democratically organised and controlled enterprise In a cooperative retailers group, such as for example a cooperative pharmacy 15 group, the group benefits from being able to take advantage of certain economies of scale in that by placing a jointer order for certain goods with supplier company they are able to benefit from potential discounts offered by the supplier company. In this manner the cooperative group has the potential to purchase products on price parity with larger retail outlet and thus be able 20 to offer those goods at prices attractive to the consumer at similar prices to those offered to the public by larger retail companies So, cooperative members place periodic orders from companies with the cooperative, in order to get some discount on the purchases with additional 25 marketing co-op monies paid direct to co-operative members. Cooperative members then order catalogues from a catalogue printer designated by the cooperative as being suitable. However, there is at present no efficient and ordered manner in how this is 30 controlled by the cooperative for the benefit of the cooperative as a whole.

3 Marketing money is typically held by the cooperative without any communication between the members of the cooperative. Information concerning which members ordered which goods and how many catalogues that are ordered by each member is considered confidential information that is 5 not shared amongst members. OBJECT OF THE INVENTION It is an object of the present invention to provide a method of a cooperative retailers group sharing marketing information and with supplier companies. To provide an easier method to adhere to company compliance requirements. To 10 enhance and develop marketing strategies and better marketing plans in store with high volume and frequent local area marketing catalogues paid for by the supplier companies as yet not enjoyed by other marketing co-operative groups. To enable independent pharmacy owners to develop their own stores as part of a certifiable trade mark co-operative brand in the market place 15 maintaining profitability whilst discounting and marketing products for each supplier company involved with the marketing strategies. It is a further object on the invention to provide a method of distributing marketing funds to members of the cooperative retailers group. It is an object of the present invention to overcome, or at least substantially 20 ameliorate, the disadvantages and shortcomings of the prior art. Other objects and advantages of the present invention will become apparent from the following description, taking in connection with the accompanying drawings, wherein, by way of illustration and example, an embodiment of the present invention is disclosed. 25 SUMMARY OF THE INVENTION According to the present invention, although this should not be seen as limiting the invention in any way, there is provided a method of improved marketing information communication between members of a co-operative (independent pharmacists group) and supplier companies to the co-operative 4 (for example pharmaceutical companies), wherein the supplier companies provide marketing monies to the co-operative, the method including: members of the co-operative placing supply orders (amount of goods ordered, suppy data) for goods via an on-line computer interface to a central co-operative 5 ordering system (thus getting the group discounts or volume rebates); the central co-operative ordering system then placing supply orders with supplier companies; members of the co-operative then ordering quantities of catalogues cataloguee data) containing supplier company advertisements via the on-line computer interface to a central co-operative ordering system; 10 characterized in that the central co-operative forwards an amount of the marketing money to members of the co-operative based on a percentage of the sum of quantities of catalogues ordered (catalogue data) and the amount of goods ordered (supply data). Cooperative members will then be given further co-op monies paid directly to 15 each member by the supplier companies participating to assist in maintaining profitability not normally enjoyed at present in other co-op groups whilst discounting individual products in marketing catalogues often selling at cost price during marketing campaigns. Co-operative members often also share marketing expenses but these expenses should be paid for by the supplier 20 companies once co-op members meet compliance model requirements per company. DETAILED DESCRIPTION OF THE INVENTION Once product order volumes of each monthly order cycle are placed by 25 member, group volume discounts will apply as is usual for marketing group operations. But the difference will be that members will order their marketing catalogues on line triggering the co-op monies to be paid directly to members by each 3'o company involved in the marketing program. The monies issued will be proportional to the quantity of catalogues requested by each member and/or proportional to individual members order volumes say 5% of total volume 5 ordered unless the marketing group can negotiate better deals or terms with individual supplier companies. This is a unique operating system that will link the company/supplier compliance model and marketing information requirements to obtaining marketing cooperative monies from each company 5 paid direct to each pharmacy member. The information gathered by the pharmacy member relating to the supplier products will improve marketing of the products in store and in circulated local area marketing catalogues, better category management and will satisfy 10 easier interaction on line as part of supplier/company compliance model requirements with efficient monitoring of performance and growth in sales. The information gathered whilst company reps are in the pharmacy or not will allow better deal structures, better marketing plans and business decisions to be made by all concerned. The information transmitted to the 15 suppliers/company and marketing group head office is useful in the assessment of pharmacy member ongoing support to secure marketing co operative monies issued to members by companies. This method and system will assist developing better strategies to improve the 20 current and future compliance model(s) with marketing plans/strategies between the company, marketing group head office and individual pharmacy members also allowing for various demographic locations with differing needs. Applicants propose sharing of the marketing information assists developing 25 compliance requirements between the pharmacy member and company. Significant advantages for supplier/company, pharmacy member and the marketing group working together sharing information to establish efficient streamlining processes in ordering of company products, volumes of each product necessary to achieve monetary and marketing support from 30 companies. Obtaining marketing co-op monies must benefit all concerned, this model system will allow for a re-development of pharmacy business operations in a mature market where discounting of products is used to obtain market share.

6 The marketing groups able to assist their members develop a uniform compliance model will then assist develop a brand for independent pharmacy owners that will create a more potent presence in the market place. This strategy has seen large marketing groups emerge following purchases of 5 large volumes followed by massive increased sales growth rewarded by supplier companies with further volume rebates and discounts to members of these marketing groups with co-operative monies to finance their own local area marketing and possibly developing into a marketable brand and retail model. The co-operative members will be able to follow this path in its 10 development by participating and adhering to our methods and system described above. This new economic model for marketing will assist in developing a new brand for co-operative members if desired with further potential in developing community pharmacy services. The advantages of establishing a viable profitable growing retail pharmacy offer (front of shop) 15 will give extra funds to community pharmacies to maintain, develop and strengthen their ability to operate primary health care services. Applicants propose that Independent pharmacy owners are an extremely important component of primary healthcare requiring a new economic model 20 for re-developing their own pharmacy businesses with improved profitability. Sharing information between suppliers, pharmacy member and marketing group head office will lead to significant changes and advantages for the pharmacy owner, supplier, companies and marketing group. EXAMPLE 25 A group of 4 member stores (A, B, C, D) in a retail cooperative place orders online to the central cooperative ordering system or directly to their own supplier (wholesaler) via a web interface for certain goods they require. The central cooperative ordering system then receives and collates data information monitoring each member. This information is used to negotiate 30 better volume rebates and marketing co-operative monies with the various supplier companies assuming the quantity of ordered goods is greater than the minimum and each of the different goods is supplied by companies L, M 7 and N either direct to the individual member stores or alternatively to the co operative distribution store or to the wholesaler distribution network which then supplies the member. Individual member stores (once fully compliant with each company 5 compliance requirements) are then able to place orders for different quantities of cooperative catalogues, each of which feature products that are sold by the suppliers L, M and N. Each member is then able to determine their own specific requirements for member catalogues in terms of absolute numbers, which depends on their local area marketing plan. 10 As each member requests the number of catalogues via the online cooperative ordering system, this data is collated and stored within the cooperative itself. The cooperative then places the collective catalogue order with a designated printer and catalogues are forwarded to members as per their request. 15 The cooperative then has valuable date in relation to orders of specific goods from the pool of supplier companies as well as the amount of marketing material, such as catalogues as requested from each of the individual cooperative members in any given period. The company supplier will set certain compliance requirements such as range 20 of products to be kept, market share with planograms, floor space/shelf space requirements ie so that the supplier with the greatest market share has a compliance requirement with a greater shelf space via a planogram model or similar. In this way the company supplier with greatest market share will have access to the greater amount of shelf space, for example, in any given store 25 depending on the suppliers market share. The cooperative then will be able to set as a requirement that each member will have to comply with the compliance model or requirements as set by the company supplier. This then promotes the suppliers products in a way that is acceptable to them as, thus fostering the working relationship between the 30 company supplier and the cooperative, and maximizing the leverage of the company supplier market share and marketing strategy. For example, a 8 supplier who has a market share of 30% in particular range of goods would then have 30% of the shelf space in the designated area for those goods. By meeting company supplier compliance requirements, supplier are more inclined to offer discounts to the cooperative as well as to providing marketing 5 funds to the cooperative. Failure for the cooperative members to meet such requirements will result in the cooperative member having to undergo a re-habilitation process in order to meet the minimum requirements so that they can contribute to the cooperative in a meaningful way. 10 Pooled marketing funds within the cooperative are then passed to the cooperative members based on their supply ordering and their ordering of marketing materials, such as catalogues. For example, cooperative member A's percentage of the order from the suppliers is 17.33% and cooperative member U's order is 12, and A orders 11% of the catalogues, while B orders 15 33%, then A gets 13.9% of the marketing money and B gets 25.45% as seen in Table 1. What is evident from the table is that in any given cycle of ordering (placing orders for product from company supplier and ordering of marketing materials) the cooperative will gain an insight as to those stores that are being 20 more successful than other with respect to the marketing and selling of their products, such as in-tore promotion, planograms, etc not simply based on the actual amount of products sold but also the effect of the marketing material over a given period of time. The cooperative will then be able provide that information to other members of 25 the cooperative taking into account factors such as store size, local demographics and other variables. This will then benefit the cooperative as a whole by increasing the benefit to all members of the cooperative not only just on the bulk purchasing of goods but on the manner in which those goods are marketed and sold to the consuming public.

9 Although the invention has been herein shown and described in what is conceived to be the most practical and preferred embodiment, it is recognized that departures can be made within the scope of the invention, which is not to be limited to the details described herein but it is to be accorded the full scope s of the appended claims so as to embrace any and all equivalent devices and apparatus.

Claims (5)

1. A method of improved marketing information communication between members of a co-operative (independent pharmacists group) and company suppliers to the co-operative (for example drug companies) 5 having set compliance requirements, wherein the suppliers provide marketing monies to the co-operative, the method including: a. members of the co-operative placing supply orders (amount of goods ordered, supolv data) for goods with a company supplier; b. members of the cooperative then meeting with compliance 10 requirements in accordance with compliance rules set by the company suppliers; c. members of the co-operative then ordering quantities of catalogues (catalogue data) containing suppliers advertisements via the on-line computer interface to a central co-operative 15 ordering system; d. characterized in that the central co-operative forwards an amount of the marketing money to members of the co-operative based on a percentage of the sum of quantities of catalogues ordered (catalogue data) and the amount of goods ordered 20 (supply data).

2. The method of claim 1, wherein the supply order information and quantities of catalogues ordered information by the members of the co operative is stored with the co-operative and made available to each member of the co-operative via an online system. 25

3. The method of claim 2, wherein the members of the co-operative are then ranked according to the percentage of the sum of quantities of catalogues ordered (catalogue data) and the amount of goods ordered (supply data). 11

4. The method of claim 3, wherein the members of the co-operative provide data to the cooperative, either alone or in combination, regarding store size, layout, and client demographic.

5. The method of claim 1 wherein the compliance data is selected from s the group including planogram as set by the company supplier, minimum stock levels, range of goods.