Drug stores, TV marketers form dynamic duo

Drug Store News, Jan 17, 1994 by Leslie Gilbert Elman

Television products offer great opportunities for drug stores to experiment with new product categories. The tricky thing about working with telemarketers is finding the right sources for information and products.

The industry, still in its infancy, is highly segmented, with a number of players handling mere splinters of the business. For example, one company might manufacture a product, which a second company would bring to television and a third company would take to retail.

Although each marketing company has its own philosophy and methodology, all agree that retail sales are absolutely crucial to the long-term success of their business. Following are encapsulated versions of the stories they have for drug store retailers.

As Seen on TV

Hot products: Stainarator liquid stain remover, Citrate household cleaner, Beer Machine home brewery.

As Seen on TV (Palm Springs, Calif.) is a sales and marketing management company that handles retail marketing of informercial products.

Retail distribution may begin after a product has been introduced on television, or it may be concurrent with a TV launch. Networks of independent reps handle retail sales and distribution. In some cases, reps may show new products to retail buyers to gauge potential interest before the products are advertised on television.

Advertising and point-of-sale support is usually the responsibility of the manufacturer, and so it varies from product to product.

As Seen on TV has had success in merchandising its products--along with those of other TV marketers--within "As Seen on TV" sections. The company usually markets in-and-out products; however, it is attempting to build a brand franchise for Stainarator, Citrimate and other products manufactured by Dev Tec. Stainarator, which has been sold via infomercial for about four years, is ultimately expected to spawn a family of related products.

Says Ellis Axelrod, chief operating officer: "Because so many consumers prefer to buy at retail [vs. from television], it's important for a store to gain a reputation as the source for these products. Drug stores that carry [television-related] items let the customer know that she can find these types of items in their stores. If she sees an interesting item on television, she'll immediately think of your store as the place to buy it."

Direct to Retail

Hot products: Triple Edge wiper blades, Ginsu knives, Better Blocks, Durashears.

Direct to Retail (Natick, Mass.) markets and distributes infomercial products, while the company seeks to create viable retail brands that may be perpetuated without infomercial support.

Triple Edge wiper blades, for example, are now sold extensively at retail, and refill blades were recently introduced to perpetuate the brand.

Direct to Retail services stores through a network of independent sales reps. Point-of-purchase displays and materials, including video loops of the TV commercials, are available to retailers.

National Media

Hot products: Blue Coral car waxes, Regal cookware, Natural White tooth whitener, Jet Aire hair setter.

National Media (Philadelphia) provides advertising support for product manufacturers and/or distributors, and it prefers to work with established brands. "When we come out with something from scratch, it's a harder sell," says Peter Cohen, vice president, non-infomercial sales.

National Media says a successful informercial product may be supported by between $5 million and $10 million in advertising in a year.

Generally, products are marketed exclusively on infomercials for three to six months, then offered to the retail trade. When infomercial sales begin to slow, a decision is made whether to produce a second infomercial, to accept that the product has run its course or to keep the product at retail without info-mercial support.

In order to lengthen product life span, National Media looks for basic lines (like cookware or car wax) that offer a special advantage.

The infomercial campaign is intended to explain product features and generate interest, but the ultimate goal is to make the brands enduring stock items that will perpetuate themselves without the continuation of intense infomercial advertising support.

Distribution is usually handled by the manufacturer's established system--sometimes through wholesalers or distributors, sometimes through rack jobbers, sometimes directly to retailers. National Media provides POS materials.

Says Cohen, "Do we know when a product will die? We can see trends in infomercial sales, but life span varies from product to product. Most informercial products have a span of one year when they are very hot, but we've been advertising Jet Aire for four years and it's still selling well.

Regal Advantage

Hot products: Lasting Kiss long-wearing lip color, Citrus Miracle super-concentrated cleaner, Incredible Sweater Machine knitting machine.

Regal Advantage (New York) uses infomercials to build brand-name awareness for its products.

Generally, the products are advertised on half-hour infomercials for about six months before they are brought to retail. Infomercial support, with retail tags, usually continues for another six months until the "point of diminishing returns" is reached on infomercial sales. Then the advertising segues into "traditional media"--one- and two-minute spots--to build retail sell-through.