Convenience has key role in marketing mix

Drug Store News, August 20, 1990 by Ted Gladson

Convenience has key role in marketing mix

Convenience is the reason cited most often for shopping a particular drug store as well as many other types of retail outlets. Thus it comes as no surprise that the majority of goods sold in drug stores are classified as |convenience' items rather than |specialties,' with one notable exception: the prescription. This unusual combination creates some interesting marketing opportunities for the drug store manager. The more traditional approach to marketing emphasized product mix in differentiating the drug store from its competitors. Today, convenience should be given more prominence in the marketing mix.

Convenience is more important in marketing today than ever before, because of changes in the American family. Two spouses working outside the home is becoming the rule rather than the exception, and there is an increase in the number of single-parent families. Both situations and many others increase the need for convenience, which almost always means these shoppers are looking for ways to save time.

Creating convenience: Traditionally, marketing convenience has been interpreted as a location close to home or work. Today, shoppers want other ways to save time. Thus, convenience is created by anything that consumers believe will save them time without an unreasonable price penalty.

Consumers expect to pay for convenience. Each person has their own internal rule-of-thumb by which they evaluate the cost of convenience. For example, consider the success of Federal Express, a very expensive way to mail a letter compared to the U.S. Postal Service. Because of the need for quick delivery, this service has enjoyed huge success. And now the FAX machine has altered this picture somewhat, because (after the initial investment) it offers a lower-priced alternative in many situations.

The typical shopper employs a similar process of weighing convenience against price. Experience in pharmacy and other forms of retailing has shown that the following conveniences are popular with consumers and are relatively low-cost methods to implement: parking (preferably free and close to the front door), one-stop shopping, no waiting, and (for drug stores) record keeping.

Many drug stores will have other methods available for creating convenience: delivery, mail and FAX services, a postal substation, and bill-paying service, to name a few possibilities.

Imagination and an understanding of your consumers' needs will suggest other approaches to creating convenience and thereby improving your competitive position. A few comments about the basic conveniences will indicate some marketing opportunities.

Parking: In suburban areas, where foot traffic is low, parking is an absolute necessity. If you do not have a parking lot, consider validating parking tickets for customers using a nearby lot. Many approaches are used, but in our experience the simplest and most appreciated by customers is to validate the parking ticket for a set amount (i.e., 1/2 or one hour of parking). By substantially removing the cost and inconvenience of parking, you can substantially increase traffic flow in the drug store. Some studies have shown a 15-percent increase in store traffic after a |free' parking program is offered. Of course, it is absolutely imperative that this service be advertised. The greatest increases in traffic came from existing customers, which emphasizes the importance of parking as a service.

One-stop shopping: This is a function of merchandise mix, but certain key products and services can enhance the basic mix. For example, a gift department creates convenience for individuals and businesses that need something at the last minute. Your location will dictate the nature of this department.

Service possibilities include postal services, drop-off service for repair shops (i.e., shoes, small appliances, etc.), event ticket sales, a copy machine, a FAX machine, and especially videotape (and electronic name) rentals. The latter is especially effective with families and children. Margins on rentals are very good, and sales of related items (snacks) will increase this even more. For mass merchandise-oriented drug stores, these suggestions represent small increments in the total business, but for small-to medium-size drug stores, there are potentially large traffic gains.

No waiting: Customers interested in convenience do not want to wait. They likely have selected the store because it was convenient, and making them wait destroys that image in their minds. Therefore, if your marketing strategy includes an emphasis on convenience, then the plan must include adequate staffing, especially during periods of peak traffic.

Anticipate customer arrival and have their prescriptions filled. Make certain the photo department has the pictures sorted for ease of location (it doesn't make sense to offer fast film developing and then have the customer spend minutes waiting for the clerk to locate the envelope). This principle should be applied across the range of convenience products and services.