Duane Reade debuts radio ads using a pharmacy message

Drug Store News, April 28, 1997

NEW YORK -- For the first time, Duane Reade is airing a series of experimental radio ads that broke in March and will run through early May.

Duane Reade is operating in a competitive atmosphere that is intensifying. In the last year and a half, CVS and Rite Aid, high volume chains with substantial economies of scale and mega advertising clout, have opened stores in Duane Reade's trading area. Genovese, also, has been active.

Pharmacy is at the heart of each of Duane Reade's commercials. In one spot, Duane Reade introduces its first game card promotion, urging consumers to go to a Duane Reade pharmacy, pick up a scratch-off game card and try their luck at winning up to $5,000.

"The purpose of the ads., said Gary Charboneau, senior vice president of sales and marketing for Duane Reade, "is to increase the presence of our pharmacists and to make the public more aware of the services we offer in pharmacy."

Three spots focus on the advantages of using the Duane Reade pharmacies. They, along with 17 others, also talk about the benefits and/or low prices of a broad range of over-the-counter and prescription products available at Duane Reade.

Charboneau said Duane Reade, which currently generates less than 25 percent of its total sales from pharmacy, has an enormous opportunity to grow its prescription business.

The chain, he said, averages approximately 800 scripts per store on a weekly basis while the industry averages over 1,200 per store a week.

"Our average store volume is much higher than the average drug chain, so we have a tremendous opportunity to grow the pharmacy business." said Charboneau.

Although Duane Reade in the past has done very little advertising, Charboneau said the chain is testing radio as a vehicle for "carrying our message to customers way beyond whatever is happening in our stores. This is our first foray into electronic media, but we're doing more advertising today than years ago."

Charboneau said that management will evaluate product movement, and based on performance, may launch another radio campaign, possibly as early as the fall.

The commercials emphasize the convenience of shopping Duane Reade with the tag line: "Everywhere you go....Duane Reade." The narrator of the ads also notes that with locations all over Manhattan, Duane Reade "makes keeping healthy about as convenient as it gets."

In the scratch card promotion, the grand prize winner is entitled to $5,000, which Charboneau said equates to "free commuting for a year." In addition, there will be 10 first prize winners who will each get a month's worth of free commuting, the equivalent of about $500 each, plus there will be 100 second prize winners who will get a free 500 minutes of long distance phone time, and 500 third party winners who will all get $10 Duane Reade coupons. Players can also win a $2 Duane Reade coupon.

All customers have to do to play is to go to a Duane Reade pharmacy and ask for a game card.

Charboneau said that two weeks into the campaign, he was very encouraged by the results. "Store sales are at an all time high," he noted.

He also said the chain has gotten good feedback on the ads from their customers as well as from their own pharmacists and other industry executives.