Middle East Private Label Category Development and Sourcing
- Mediscape Global
- Jul 9, 2024
- 3 min read
Updated: Feb 24, 2025
Industry
Saudi Arabia Retail Pharmacy Chain
Summary
Mediscape Global led a strategic category development and sourcing initiative for a national retail pharmacy chain in Saudi Arabia. The goal was to differentiate the client’s brand by launching an innovative private label range. Our approach involved identifying high-potential products, selecting reliable suppliers who met local regulatory standards and securing competitive pricing.
The Challenge
The client, a leading Saudi retail pharmacy chain, was seeking to enhance its market presence, boost revenue, and improve customer loyalty by offering a range of unique and high-quality private label product lines.
The challenge was to find innovative product opportunities and trusted suppliers capable of delivering quality and competitive pricing, while complying with Saudi regulatory standards.
To meet these objectives, Mediscape Global was tasked with creating a strategic category development and sourcing plan to enable effective market differentiation.
Our Approach
Mediscape Global employed a systematic, data-driven approach to identify optimal product and sourcing opportunities, aligning them with the client’s goals of quality, competitiveness, and innovation.
1. Situational Analysis
We initiated a comprehensive diagnostic phase to clarify target deliverables and define critical success factors:
Product Portfolio Review: Conducted an in-depth analysis of the client’s current retail product portfolio to evaluate performance, identify high-impact categories, and focus on areas with strong growth potential.
Customer Insights & Market Behaviours: Examined customer preferences, local market shopping patterns, and competitor positioning to ensure alignment with customer demand.
Competitive Benchmarking: Performed benchmarking to identify market gaps and refine the product range, allowing the client to stand out in a competitive marketplace.
2. Strategic Sourcing
Leveraging our procurement expertise, we introduced a robust sourcing strategy to identify and secure high-quality suppliers:
Supplier Identification: We shortlisted suppliers capable of meeting Saudi regulatory requirements, delivering high-quality products, and offering competitive pricing.
Competitive Bidding and Supplier Performance: Implemented a competitive bidding process to optimise procurement costs and introduced ongoing supplier performance monitoring for quality assurance.
Supplier Collaboration for Innovation: Engaged suppliers in discussions to foster innovation, ensuring that the pharmacy’s private label products would offer unique market advantages.
3. Strategic Category Plan
We delivered a detailed, actionable category plan to guide the client’s private label launch.
Comprehensive Report: Outlined product recommendations, shortlisted suppliers, optimal procurement terms, and strategies for range selection.
High-Margin, Customer-Relevant Product Range: Recommended a range aligned with customer demand that also offered high margins, including medical and healthcare devices, OTC medicines, baby formula, dressings, nappies, female health products and beauty accessories.
The Results
Our targeted approach to category development and sourcing was forecast to deliver significant benefits and set the client’s private label range apart in a competitive market.
Cost Savings: Substantial cost savings were projected to be delivered through competitive supplier pricing and price benchmarking, resulting in improved procurement terms. The private label range tailored to the target customer’s needs would potentially generate higher profit margins and enhanced revenue growth.
Enhanced Supplier and Product Quality: Established quality-focused supplier agreements that included value-added features, such as favourable payment terms, marketing support, and opportunities for unique product design.
Comprehensive Handover and Ongoing Support: Provided a detailed handover report with strategic insights, supplier agreements, and implementation guidelines. Ongoing support was offered to ensure successful execution and alignment with the client’s vision.
Contact Us Today
Contact Mediscape Global today to learn how our consulting expertise in category development, strategic sourcing, and brand differentiation can empower your organisation to excel in a competitive market.
