Perrigo Company plc (PRGO): Business Model Canvas

Introduction

The healthcare industry is one of the largest and fastest-growing industries globally. According to Grand View Research, the global healthcare market size was valued at USD 8.45 trillion in 2020 and is expected to grow at a CAGR of 7.9% from 2021 to 2028. The increasing demand for healthcare products and services, rising healthcare expenditure, and the prevalence of chronic diseases are some of the factors driving the growth of the healthcare industry.

In this growing industry, Perrigo Company plc (PRGO) has emerged as a global healthcare supplier that offers over-the-counter (OTC) products and generic pharmaceuticals. The company's value proposition is to provide high-quality, affordable healthcare products to consumers worldwide. With a multi-channel distribution model, including retail pharmacies, online sales, and partnerships with drugstore chains, Perrigo is well-positioned to cater to the diverse needs of the consumer base. In this blog post, we will explore the business model canvas of Perrigo Company plc and understand how they have been able to create value in the healthcare industry.

Key Partnerships

Perrigo Company plc operates in a highly competitive industry, and it has developed strategic partnerships with key players to gain a competitive advantage. The company's key partnerships include:

• Suppliers: Perrigo relies on suppliers for raw materials, packaging materials, and other components required for manufacturing its products. The company seeks to establish long-term relationships with its suppliers to ensure a stable supply of high-quality materials at competitive prices.
• Distributors: Perrigo relies on distributors to reach its target markets and distribute its products efficiently. The company partners with distributors that have a broad reach and a deep understanding of the local markets to ensure that its products reach the right customers at the right time.
• R&D Partners: As an innovation-driven company, Perrigo invests heavily in R&D to develop new products and improve existing ones. The company collaborates with research institutions, universities, and other pharmaceutical companies to leverage their expertise and resources and accelerate the development process.
• Marketing Partners: Perrigo partners with marketing agencies, advertisers, and other service providers to promote its products and build brand awareness. The company seeks to work with partners that have a deep understanding of the target markets and can develop targeted marketing campaigns to increase customer engagement.

Overall, Perrigo's key partnerships play a vital role in the success of its business model. By collaborating with the right partners, the company can gain access to resources, expertise, and markets beyond its core competencies, which helps it stay competitive and achieve its growth objectives.

Key Activities

Perrigo Company plc is a leading healthcare company that primarily deals with manufacturing and distributing over-the-counter (OTC) and prescription pharmaceuticals. The following are the key activities the company engages in:

• Research and Development: Perrigo invests in research and development to create new products, improve existing ones, and maintain its position as a leading global provider of affordable healthcare products. The company invests in both in-house research and partnership with reputable research institutions and universities.
• Manufacturing: The company manufactures a wide range of pharmaceutical and healthcare products, including OTC medications, infant formulas, and animal health products.
• Distribution and Logistics: Perrigo distributes its products through multiple channels, including distribution partners, wholesalers, and directly to retailers. The company also operates multiple warehouses globally to ensure that products are delivered to customers promptly.
• Marketing and Sales: Perrigo promotes its products through various marketing and advertising campaigns to create awareness and increase sales. The sales team is responsible for building relationships with retailers, wholesalers, and distributors, providing them with adequate training and product knowledge, and ensuring that products are available in stores.
• Regulatory Compliance: Perrigo ensures compliance with applicable regulations and standards. The company follows the regulatory requirements set by the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), and other regulatory bodies in every country it operates.
• Strategic Partnerships: Perrigo enters into strategic partnerships with other healthcare companies to expand its product lines and develop new solutions. The company has partnerships with various pharmaceutical companies to manufacture and distribute branded and generic drugs.
• Supply Chain Management: The company manages the supply chain to ensure that products are available to customers on time. Perrigo also manages its suppliers to ensure that they provide quality raw materials at competitive prices.

These key activities of Perrigo enable the company to maintain its position as a global leader in the healthcare industry while providing affordable healthcare products to its customers.

Key Resources

Perrigo Company plc (PRGO) requires a variety of key resources to operate and succeed in the pharmaceutical industry. The following are the primary resources that the company relies on:

• R&D Capabilities: Perrigo has a team of scientists and researchers who are constantly working on developing new products and improving existing ones. This is a critical resource for the company, as it enables it to stay ahead of competition and meet the evolving needs of its customers.
• Manufacturing Facilities: Perrigo has several manufacturing facilities located around the world, which are used to produce and distribute its products. These facilities are equipped with state-of-the-art equipment and operated by highly skilled professionals.
• Technology: The pharmaceutical industry is highly dependent on technology, and Perrigo is no exception. The company relies on various technologies to support its operations, such as research software, manufacturing equipment, and logistics systems.
• Supply Chain: Perrigo has a complex supply chain that includes raw material suppliers, logistics partners, and distribution centers. This is a critical resource for the company, as it ensures that it has access to the materials and resources it needs to operate efficiently.
• Human Resources: Perrigo has a highly skilled and experienced workforce that is critical to its success. The company invests heavily in attracting and retaining top talent, including scientists, engineers, and executives.
• Brand Image: Finally, Perrigo's brand image is a key resource for the company. The company has built a reputation for quality, reliability, and innovation, which helps to attract and retain customers.

Overall, these key resources enable Perrigo Company plc to develop, produce, and distribute high-quality pharmaceutical products around the world, and to maintain a strong position in a highly competitive industry.

Value Propositions

Perrigo Company plc (PRGO) is a leading global healthcare supplier that operates with a clear value proposition to provide high-quality, affordable healthcare products to its customers. The company's value proposition is centered on the following key elements:

• Affordable healthcare: Perrigo prides itself on producing affordable healthcare products that are accessible to all individuals, regardless of their financial status. The company's goal is to democratize healthcare and make it available to everyone.
• Quality products: Perrigo is committed to producing high-quality products that meet or exceed industry standards. The company's products are rigorously tested and certified to ensure customer satisfaction and safety.
• Customer-focused: Perrigo is dedicated to meeting the needs and preferences of its customers. The company is constantly listening to customer feedback and taking action to improve its products and services.
• Innovative solutions: Perrigo is always on the lookout for new and innovative ways to improve healthcare. The company invests heavily in research and development to create new products that provide better outcomes for patients.
• Global reach: Perrigo has a global presence that allows it to offer its products and services in multiple countries. The company is committed to providing the same quality products and services across all its markets.

In summary, Perrigo's value proposition revolves around affordable, high-quality healthcare products that are customer-focused and innovative. The company's global reach ensures that customers around the world have access to its products and services.

Customer Relationships

At Perrigo Company, we prioritize building lasting and meaningful relationships with our customers. Our customer relationships are centered on understanding their needs and preferences to provide tailored solutions that meet their unique requirements. Customer Segments: We serve a diverse range of customer segments across multiple industries. Our target customers include healthcare providers, retailers, distributors, and consumers. Customer Acquisition: We invest heavily in customer acquisition to expand our customer base. Through our sales and marketing efforts, we identify potential customers, engage with them, and demonstrate the value proposition of our products and services. We also collaborate with industry associations and participate in trade shows to increase our reach and visibility among target customers. Customer Retention: We focus on building long-term relationships with our customers by providing exceptional customer service, offering competitive pricing, and consistently delivering high-quality products. We have a dedicated team that provides customers with ongoing support and assistance to ensure their satisfaction. We also conduct regular customer feedback surveys to gain insight into their changing needs and preferences and to identify areas for improvement. Channels: We utilize multiple channels to reach and engage with our customers, including digital marketing, direct mail, email marketing, and telemarketing. We also have a robust e-commerce platform that allows customers to conveniently order and reorder our products online. Revenue Streams: Our revenue is generated through the sale of our products and services to our customers. We offer a range of pricing models, including subscription-based pricing, volume-based pricing, and value-based pricing, among others. Our pricing strategy is designed to provide our customers with flexible and customizable options that meet their budget and business objectives. In summary, our customer relationships are built on a foundation of trust, transparency, and exceptional service. We are committed to understanding and meeting our customers' needs and providing solutions that add value to their businesses.

Channels

Perrigo Company plc (PRGO) will utilize various channels to effectively reach out to its target market and distribute its products to customers. These channels include:

• Retail Distribution: The company will leverage existing relationships with major retailers and pharmacies to distribute its products in physical stores. This will enable the company to reach out to a wider market and benefit from the established customer base of retailers.
• E-Commerce: In addition to in-store retail distribution channels, the company will also establish its own e-commerce platform to sell directly to customers online. The online platform will be user-friendly and ensure that products are easily accessible, with a smooth checkout process and efficient delivery options.
• Healthcare Providers: The company will build strong relationships with healthcare providers such as physicians, pharmacists, and hospitals to distribute its products. This channel will be critical to promoting the company's prescription products and building credibility among these professionals.
• Distributors: The company will partner with distributors and wholesalers to reach out to small retail stores and pharmacies that are not directly served by the company. This will enable the company to increase its reach and deliver products to a larger customer base.
• Direct Sales: The company will establish a direct sales team to engage with customers who may have specific needs and require more personalized attention. This channel will be critical in driving sales of more complex products that require a higher level of customer interaction.

Perrigo Company plc (PRGO) will constantly evaluate its marketing channels to ensure that they are effective and that the company's products are always accessible to the target market. As the company expands into new markets, new channels may be added to cater to the unique needs of those markets.

Customer Segments

Perrigo Company plc (PRGO) caters to a diverse customer base across different regions and market segments. The following are the customer segments that we serve: 1. Consumer – We cater to the healthcare needs of consumers by providing high-quality, affordable, and over-the-counter (OTC) healthcare products. Our products include generic medicines, vitamins, supplements, and personal care products. We serve the needs of a wide range of customers from infants to seniors. 2. Private Label Brands – We work with major retailers and pharmacy chains to provide private label products that include prescription and OTC medicines, vitamins, and supplements. Our private label products help our customers to enhance their brand image and increase customer loyalty. 3. Prescription Pharmaceuticals – We cater to the needs of healthcare professionals through our prescription pharmaceuticals segment. We offer a wide range of prescription products across several therapeutic areas like dermatology, women’s health, gastroenterology, and more. 4. Contract Manufacturing – We work with companies across various industries to provide customized contract manufacturing services. Our contract manufacturing services include research and development, formulation, packaging, and supply chain management. 5. International – We cater to the healthcare needs of consumers across the globe through our international operations. We offer high-quality, affordable, and OTC products across various international markets. 6. E-commerce – We serve tech-savvy customers who prefer to shop online. Our e-commerce platform allows customers to purchase our products conveniently from the comfort of their homes. In conclusion, by serving diverse customer segments, Perrigo Company plc (PRGO) has established itself as a leading healthcare company in the world. We will continue to innovate and deliver high-quality healthcare products and services to meet the evolving needs of our customers.

Cost Structure

The cost structure for Perrigo Company plc (PRGO) is primarily focused on achieving the lowest possible production costs in order to remain competitive in the market. This is achieved through strategic partnerships with suppliers, maximizing production efficiency, and minimizing waste. The following are the main components of PRGO's cost structure:

• Cost of goods sold: This includes the cost of raw materials, labor, and other expenses related to manufacturing products. PRGO aims to keep these costs low by sourcing materials from low-cost suppliers and implementing efficient production processes.
• R&D expenses: As a pharmaceutical and healthcare company, R&D is a critical component of PRGO's cost structure. This includes the costs associated with research, clinical trials, and regulatory compliance. While these expenses are necessary, PRGO strives to keep them under control by focusing on key product areas and leveraging existing technologies and partnerships.
• Sales & Marketing expenses: In order to effectively market and promote products, PRGO incurs significant expenses on activities such as advertising, promotional events, and sales commissions. The company manages these costs by targeting key customer segments, investing in digital marketing, and optimizing its salesforce.
• General & Administrative expenses: These include all other operating costs necessary to run the business, including salaries, rent, utilities, and other overhead expenses. PRGO aims to keep these expenses low by implementing efficient processes, utilizing technology, and leveraging economies of scale.

Overall, PRGO's cost structure is focused on achieving efficiencies and cost savings at every stage of the value chain, from R&D to manufacturing to distribution. By doing so, the company can remain competitive and deliver value to its customers and shareholders.

Revenue Streams

Perrigo Company plc generates revenue through various streams:

• Sales of Consumer Healthcare Products: The primary source of revenue for Perrigo comes from the production and sale of over-the-counter (OTC) healthcare products including cold, cough, and allergy medications, gastrointestinal products, and more. These products are distributed globally through various channels including retail stores, online platforms, and pharmacies.
• Prescription Pharmaceuticals: Perrigo also generates revenue by manufacturing prescription drugs, which are either sold under its own label or in partnership with other pharmaceutical companies. These products are mostly sold to hospitals, clinics, and pharmacies.
• Animal Health Products: The company also sells animal health products, including flea and tick treatments, vitamins, and supplements for dogs, cats, horses, and other animals. These products are sold through retail stores and online platforms.
• Contract Manufacturing: Perrigo offers contract manufacturing services to various pharmaceutical companies. This includes everything from product development to manufacturing, packaging, and distribution. This is a significant revenue stream for Perrigo.
• Royalties and Licensing Fees: Perrigo generates revenue through licensing and distribution agreements for some of its proprietary products. This includes partnerships with other pharmaceutical companies who sell Perrigo products under their own brand name(s). Perrigo receives royalties and licensing fees for the use of its patents and proprietary products.
• Other Revenue: Finally, Perrigo generates revenue through various other means, such as the sale of intellectual property, technology and services, and other miscellaneous items.

Perrigo Company plc's diverse revenue streams enable the company to remain profitable even in challenging market conditions, making it a strong player in the healthcare and pharmaceutical industries.

Conclusion

After conducting an analysis of Perrigo Company plc's business model using the Business Model Canvas, it is evident that the company has a strong foundation for growth and sustainability in the pharmaceutical industry.

Perrigo's customer segments include large retailers, distributors, hospitals, and consumers. Their value proposition is offering high-quality, affordable healthcare products and solutions. They achieve this by having an extensive global supply chain, strong research and development capabilities, and a focus on cost-effectiveness.

• Key activities for the company include manufacturing, distribution, and research and development.
• The company has a diverse revenue stream from multiple product categories and geographic regions.
• Perrigo's partnerships and collaborations with other companies, such as Teva and GlaxoSmithKline, enable them to expand their product offerings and reach new markets.
• Cost structure includes research and development, manufacturing, marketing, and distribution expenses.

Overall, Perrigo Company plc has a solid business model that emphasizes accessibility and affordability for healthcare products. The company's focus on cost-effectiveness and partnerships allow for growth and innovation in the industry, making them a strong competitor in the market.