News

On ‘Target’ with the New General Market

BY Rob Eder

As we closed this issue of Drug Store News, with our massive special report on the New General Market consumer, major news broke that once again underscored how much the world has changed, and how the best brands change with it.

By now, no doubt you’ve seen this picture. Some might call it the tweet heard around the world. One thing is for sure: The executives in Minneapolis heard it loud and clear.

“Over the past year, guests have raised important questions about a handful of signs in our stores that offer product suggestions based on gender,” Target noted on its Bullseye blog earlier this month. “We heard you and we agree.”

News that Target would axe “Boy’s” and “Girl’s” signs in the toy, bedding and entertainment aisles fed a firestorm of both applause and criticism for the retailer, and “blew up” Ohio mom Abi Bechtel’s twitter account, as the hip kids say these days.

“If you’re offended by a gender-based sign at a retail store, you’re probably a miserable tool with too much time on your hands,” tweeted one hater.

The reality is, Target made a decision, if you’re offended by it: Tough.

When you read this issue of DSN, you will understand that the New General Market is ALL ABOUT inclusion; not exclusion. They are not big on labels. They are a psychographic, not a demographic. And they want to be “talked with,” not “talked at.”

And regardless of where your politics lie, you have to see it as a masterful piece of brand-building in this age of the New General Market consumer.

“This isn’t about political correctness,” noted Rob Gregory, chief revenue officer for the social media site WhoSay, in an article for AdWeek. “What it’s really about is the illumination that social media brings to a brand’s true intentions.”

Boys will still be boys. Girls will still be girls. And the kids who want to play with Legos, Barbie or G.I. Joe — and the parents who want to buy them for their kids — should still be able to spot them in the store without the signs.

Target used the power of social media to become illuminated about the New General Market.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

IRI offers strategies, solutions for upselling

BY Michael Johnsen

One more thing. At the end of the day, that’s really what it’s all about — convincing the consumer to put one more thing in their shopping cart. For retailers, it’s about optimizing price, merchandising and marketing in an effort to capture more than their fair share of the market in any particular category. IRI has recently enhanced its category management tools, including its Leakage Tree analytics, to help suppliers and retailers capture greater share of wallet.

Applying a leakage tree breakdown can help inform a category manager’s strategy for how to convert shoppers who are shopping a particular retailer, but not buying a particular product from that retailer. Part of the appeal to leakage tree analysis is its flexibility. It can provide a 30,000-ft. view on category performance, or it can be broken down to the SKU level for a brand analysis. Other variables that can be manipulated include the geography and the demographics. A leakage tree can help determine how a particular category is indexing across low-income purchasers in the Southeast, for example, or Hispanic shoppers in Texas.

IRI walked Drug Store News through a typical Leakage Tree category analysis.

“Leakage tree provides rich macro-level diagnostics for the retailer and the manufacturer,” said Amruta Gupta, IRI’s principal, consumer and shopper marketing, healthcare practice. “These metrics really provide a status on the health of a brand. And because you trend or do them on a regular basis, it provides an early flag if you need to go deeper.”

“It’s really fine-tuning a strategy in order to help our manufacturer/retail partners figure out how to bring potential new buyers in and convert them to their particular chain and/ or their particular product within that chain,” said Kristin Hornberger, principal and team leader, client insights healthcare at IRI.

First, a leakage tree analysis gives a category manager insight into a consumer’s interest in a particular category or product. In the example chart (see page 8), of the 68 million households who shop in Retailer X, only 40.6% buy a product from Category A anywhere.

Second, it defines shopper penetration — how many shoppers are actually buying that category in Retailer X? In the example chart, 16.8% of shoppers who shop Category A are buying that product in Retailer X. And the trend is moving in the wrong direction — Retailer X lost 1.2 percentage points in this category for the 52 weeks ended July 12.

The next two metrics are associated with leakage, Gupta said. “It’s like a share of wallet,” she said, where a retailer can determine not only how many dollars they are capturing in a category, but also can track which channels or competitors the dollars they are not capturing are “leaking” into.

For example, for the 83.2% of Retailer X shoppers who are not buying Category A from that retailer, most of them are turning to retail pharmacy or Walmart — Walmart Supercenter is capturing 22.9% of the dollar volume, CVS 13.7% and Walgreens 9.8%.

Of those 4.6 million households who have shopped Category A and made that purchase through Retailer X in the past, 60% of that customer’s annual spend went to a competing retailer — 12.4% of that spend was captured by Walmart Supercenter, 8.2% by CVS and 7% by Walgreens.

The opportunity is in preventing that leakage and convincing the shopper to take that “one more thing” to the check stand instead of buying it at a competitor. Moving the metric just one percentage point to the positive equates to a $4.5 million opportunity.

Click here to view the full Leakage Tree example.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Throwback Thursday: NACDS Total Store Expo edition

BY DSN STAFF

Here at Drug Store News, we’re gearing up for the 2015 National Association of Chain Drug Stores Total Store Expo, which will take place at the Colorado Convention Center in Denver from Aug. 21 to 25.

Take a look at an editor’s note from one of last year's show dailies and check out DSN's 10 tips on how to make the most of this year’s NACDS TSE.

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?