Vendors develop strategies for evolving photo category

Drug Store News, Sept 22, 1997 by Allene Symons

New film technology, user-friendly packaging and on-site digital imaging systems are just some of the ways photo category vendors are helping drug chains grow the photo category and build front-end business.

It is also a time of changing photo technology. This adds to the challenge for drug chains of how to expand a photo department with hightech equipment when faced with limited space, compared to mass and food/drug competitors. All of this is occurring in the wake of the past two years, when drug chains have had to weigh how much space and promotional emphasis to devote to new products, such as the Advanced Photo System

As Garry Briddon, senior vice president of sales and marketing for Kodak's Qualex division, noted, "While the photo category has long been a key part of a successful front-store strategy, it is now taking on an even more strategic role as the scope of products and services continues to evolve."

Drug Store News recently talked to photo category vendors most often found in drug chains to find out more about their current strategies. Some offer products to fit a price niche or to help a drug chain create differentiation, while others have an array of products and services. Here's a sampling:

* Ansco's current strategy for drug chains, in addition to its regular line of cameras, includes supporting the Advanced Photo System with affordable product. For fourth quarter 1997, for example, it offers three new APS models priced at retail for less than $100.

These are the APSilson M-30 focus free, the APSilon M-30 AF auto focus and the 250 APSilon zoom. The 250 zoom model recently won the Innovations '97 award for design and engineering at the recent Consumer Electronics Show.

Ansco is also offering a photos-on-PC-disk promotion through the end of this year. On certain designated models of Ansco cameras, an on-pack tag offers the consumer a photo PC disk; inside is a mailer for the customer to send a roll of film to Mystic photo labs for the price of $6.95, for which the consumer gets back finished prints, photos digitized on a floppy disk and an index print. Although this promotion is with Mystic labs, Ansco is willing to work with other photo finishers to offer similar promotions.

* Argus president William Pearson explained, "We target the product the drug store consumer is looking for, predominantly convenience items and lower-cost items," such as one-time-use cameras, Argus brand cameras and private label, priced from $9.95 to $39.95.

"We also feel attractive packaging is extremely important for the drug store consumer. Our one-time-use Argus camera is designed to fit well visually with the Kodak and Fuji packaging," said Pearson. He noted that typically a drug chain would want to carry one or both of those brands, but, he added, "There are certain consumers who will always buy Kodak because of brand, but there is a large and growing consumer group who are shopping for price and recognize the Argus brand name," a name which has been in the market for 61 years.

* Concord offers a diverse line of affordably priced cameras, including 35mm, 110 film cartridge, one-time-use and Crayola licensed cameras and APS cameras, marketed under the APEX line.

Concord has also created new product packaging to help the consumer make a camera buying decision, which is often made from 4 feet to 6 feet away with an intervening counter. Concord's new easy-to-read packaging explains each camera's features so the consumer can make an informed decision.

A part of Concord's new packaging is a lifestyles concept in its "All-season, All-occasion" program for its Keystone brand of one-time-use cameras, which includes 15 theme packages for holidays and events from Christmas to prom night and Valentine's Day, available in singles or three-packs. This program can help a retailer create differentiation in the one-time-use camera segment.

Concord's Crayola license, which comes in a line of 35mm and 110 film cartridge cameras, is especially targeted for fourth quarter and year-round gift giving for children. Concord's newest camera is the unusual SL-68, a low-priced traditional camera with flash and a compact design, which comes pre-loaded with Kodak film and a Kodak battery and is ready to shoot right out of the box. After its initial roll, it can be reloaded and used again.

* Eastman Kodak's Jim Gordon, general manager and vice president of drug channel consumer imaging, explained that Kodak's approach is threefold: "Kodak's strategy is aimed at enhancing photo as a destination category for our customers and in the process growing top-line revenue," he said. This means, he added, "building the drug store's share of the photo market, and ultimately enhancing our customer's bottom lines."

Kodak tailors products and services to fit customer profiles and shopping patterns, using tools such as Spectra, Nielsen and customer POS data. "Our Efficient Consumer Response initiatives are generating new efficiencies," said Gordon, citing examples such as VMI, EAS source tagging, EDI and space management with customers who are sharing their POS data and marketing plans.