Catalina delivers consumer insights, access

Chain Drug Review, June 25, 2007

ST. PETERSBURG, Fla. -- Founded almost 25 years ago on the premise that targeted marketing based on demonstrated consumer purchasing behavior would result in a more effective consumer response, Catalina Marketing Corp. has been on the cutting edge of its industry from the very beginning.

Time and results have proved the efficacy of Catalina's then-revolutionary proposition, and today the company combines unparalleled insight into consumer behavior with dynamic consumer access. That combination of insight and access provides marketers with the ability to execute behavior-based marketing programs, ensuring that the right consumer receives the right message at exactly the right time.

Despite its history of success Catalina has never lost its commitment to innovation, notes Ed Kuehnle, president of Catalina Marketing Services.

"Catalina is flourishing with innovation today," he says. "That's very apparent in the chain drug-specific initiatives we currently have under way."

Most closely associated with the retail grocery trade class, Catalina has point-of-sale printers in more than 22,000 retailers throughout the United States. Over the last two years the company has expanded its reach into chain drug retailing, aiming to follow consumers exactly where they shop.

Catalina also has become active in the discount store trade class with a recent printer installation in Sears Holdings Corp. stores operating under the Kmart banner.

"We launched our Catalina Marketing Network printers in Walgreens a few years ago and are now fully installed," Kuehnle relates. "We have active initiatives under way with other chain drug partners. This is definitely an area in which we want to expand.

"We are proud of our great relationship with Walgreens and the chain drug vendor community."

The experience with Walgreen Co. has strengthened Catalina's conviction that health and wellness presents opportunities for "a lot of interesting applications, not just in the drug channel but throughout our entire 22,000-store network," Kuehnle says.

The company's continued commitment to innovation is also demonstrated in the ongoing transformation from black-and-white thermal printers to full-color, full-graphics printing capabilities in much of its network.

Catalina comprises three divisions and offices in five countries around the world, and one thing that has fueled its growth over the years has been the demonstrated effectiveness of its unique approach.

In the retail industry Catalina records about 330 million transactions per week and manages one of the largest databases in the world, containing the purchase histories of more than 130 million households. (None of the data includes any personally identifiable information.)

"As a result of some extensive testing we have found that our network is extremely effective as an advertising medium, in addition to being a pure couponing medium," Kuehnle explains. "We have empirical data demonstrating that we can move the needle in much the same manner as traditional media. That's a relatively new application for us."

As part of its efforts to continue expanding its reach beyond the printer and into the interactive arena, Catalina has undertaken a new strategic relationship with a global interactive promotions developer.

This partnership is part of a new Catalina Interactive initiative, which will allow brands to distribute individually targeted promotional codes to shoppers via Catalina printers. Shoppers will then use the codes to participate in online interactive promotions for the chance to win prizes and the opportunity to learn more about the brand.

Catalina is currently working on a program to search for ways to market to disease-state sufferers, and to market and communicate appropriately to selected targets in that segment. According to Catalina research, the best approach to treating chronic health conditions is to pair prescribed medications with adjunctive nonprescription products, nutritional products and dietary changes.

Many patients do not have the proper knowledge to manage their condition in a way that results in the greatest possible improvement to quality of life. Using Catalina's technology and powerful database, retailers can target those consumers at the pharmacy and drive them directly to other corresponding items in the store.

"This is huge news for the industry," Kuehnle says. "It leverages a very linear relationship and can help close the loop on the chain drug industry' s efforts to have shoppers make one more purchase before they leave the store."

As exciting as recent developments at Catalina have been, Kuehnle assures that they are just the latest iterations in a history of innovation that will continue well into the future.

"After one of our presentations at the NACDS Annual Meeting one chain drug executive made the observation that we've been very busy lately," he recalls. "We plan to stay busy, pursuing innovation that helps our partners achieve their marketing goals."

Catalina Marketing Corp. 200 Carillon Parkway St. Petersburg, Fla. 33716