Saturday, September 02, 2006

Why let drug retailers control a manufacturer's success in the souk?

I was doing store checks for personal care last week, and I continue to be amazed about the variability and vagaries of shelf sets, particularly in drug stores. Drugstore Headquarters demand the best deals and margins for their space and promise execution, and Manufacturers, knowing there is no other game in town for mass market distribution targeted to consumers who purchase prescriptions and their other needs at one location, pony up what is needed and then pray for success. Retail merchandising forces who go in and set the shelves help, but all too often the incremental revenues realized by using a merchandising force do not payback the expense. The answers continues to be demand, stimulating desire that, for the consumer, over-rides the hazards of navigating the drug store souk. Cut the promotional fees. Reduce line promotions. Forget the circular ad no matter how much incremental (and profitable) volume you will realize. It still comes down to simple demand generation in the best media reaching your target audience.

No comments: