J&J and Walgreens’ Health-Related Collaboration

Posted on September 17, 2015 by bermanevansretail
Johnson & Johnson (J&J) operates three main product lines: consumer products (including items “in the baby care, skin care, oral care, wound care, and women’s health care fields, as well as nutritional and over-the-counter pharmaceutical products, and wellness and prevention platforms”); medical devices (focusing on “innovative products and solutions used primarily by health care professionals in the fields of orthopedics, neurological disease, vision care, diabetes care, infection prevention, diagnostics, cardiovascular disease, and aesthetics”); and pharmaceutical products (“we develop sustainable, integrated healthcare solutions by working side-by-side with healthcare stakeholders, based on partnerships of trust and transparency.  We collaborate with the world for the health of everyone in it.”).
Recently, J&J entered into a health-related collaboration with drugstore giant Walgreens (“with more than 8,200 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The company had fiscal 2014 sales of more than $76 billion.”). Walgreens’ mission is “to be America’s most-loved pharmacy-led health, well-being and beauty retailer. Its purpose is to champion everyone’s right to be happy and healthy.”
As reported by Joe Bush for the Path to Purchase Institute:
“Johnson & Johnson became a sponsor of Walgreens’ Balance Rewards for Healthy Choices program in the spring and, among the supporting activity, linked its Official 7-Minute Workout mobile application to the program. Balance Rewards for Healthy Choices awards points to members for setting and achieving various healthy-living activities. Now members can earn points for completing a workout from the J&J app, as well as for purchasing eligible J&J brands, including Listerine, Lubriderm, Band-Aid, Neutrogena, Zyrtec and Tylenol.”
“All promotional materials direct members to the Walgreens.com Healthy Choices landing page and tout J&J’s Healthy Essentials platform website, where registered consumers can find coupons, advice and product details. The main in-store presence is a dedicated endcap promising loyalty points. The display also promotes the J&J app, which joins 12 other apps and 32 devices unrelated to J&J that members can link to the Healthy Choices program.”
Click the image to learn a lot more.

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , , , , | 1 Comment

The Challenge of Food Retailing in Developing Countries

Posted on September 16, 2015 by bermanevansretail
For a variety of reasons — including technology, road infrastructure, shopping habits, and more — food retailing in developing countries can be complicated.
Recently, Peter Child, Thomas Kilroy, and James Naylor of McKinsey addressed this topic:
“Just 20 years ago, modern grocery retail appeared poised to conquer every consumer market in the world. Ambitious European grocers, having blanketed their home countries with supermarkets and hypermarkets, began setting their sights on growth both within and beyond the continent. They held particularly high hopes for China, India, and other emerging markets, where fast-rising consumer spending seemed to presage an unprecedented demand for gleaming new stores with large assortments, wide aisles, and bright lighting.”
“In the 1990s, the term ‘modern grocery retail’ was essentially a proxy for a small group of multinational grocers including Ahold, Aldi, Auchan, Carrefour, Costco, Lidl, Metro, Tesco, and Wal-Mart. It was widely presumed that these retailers’ entry into any market would lead to the demise of the traditional trade — the family-owned grocery chains, small independent stores, and informal merchants that at the time accounted for the vast majority of grocery sales in emerging markets. The prevailing expectation was that although there would be local differences due to cultural specificities, in every country the retail landscape would eventually consist of a combination of modern formats: full-line supermarkets and hypermarkets, convenience stores, and discounters.”
“These assumptions have been proved wrong. Global grocery giants are struggling to grow profitably in many emerging markets. Traditional trade has proved remarkably resilient. And the market and channel structures taking shape in individual emerging economies are distinct from one another, following no obvious pattern. Why did this happen? What, if anything, did multinational grocers do wrong? And what does it mean for the future of modern retail in emerging markets?”
Click on the image to read recommendations from Child, Kilroy, and Naylor regarding their “Seven strategic levers for success.”

 
McKinsey

 

Posted in Global Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together, Technology in Retailing | Tagged , , , , , , , , , | 1 Comment

Wal-Mart Again Presses Its Suppliers

Posted on September 15, 2015 by bermanevansretail
As by far the world’s largest retailer, Wal-Mart is a key reseller for many suppliers around the globe. However, many potential suppliers have a tough time meeting Wal-Mart’s requirements and the reduced profit margins requested of the suppliers.
The retailer has many sections of its Web site devoted to suppliers:
Recently, Wal-Mart added additional supplier rules. Here is a synopsis as reported by Jacqueline Renfrow for FierceRetail:
“Three months ago, Wal-Mart modified supplier contracts, requesting warehousing fees or shared supply-chain costs for items that did not sell quickly. Today, the new contracts are still a challenge for those who work with suppliers. Back in June, Wal-Mart said that the letters mailed to suppliers were part of a renewed focus on everyday low cost and price. In the letter, suppliers were asked to comply by July 1.”
“Although the added costs are an issue for some suppliers, smaller operations may not feel secure enough to push back on Wal-Mart, according to a supplier consultant. One of the biggest changes was the 1 percent handling charge Wal-Mart required for products to enter the distribution center.”
Click the image to read more.

Posted in Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing | Tagged , , , , , , , | 1 Comment