August 2006

News from the National Association of Chain Drug Stores Pharmacy and Technology Conference

GREATER USE OF DRUG-STORE BASED PROMOTIONS ANTICIPATED FROM DRUG MANUFACTURERS

Campaigns Proving to Drive Prescription Sales

SAN DIEGO, Aug. 26, 2006 – Drug-store-based promotions of pharmaceutical products are continuing to generate significant increases in prescription sales in all drug categories, with an average per-product volume increase of more than 9 percent, according to data released today by Rx EDGE, a leading pharmacy-based, direct-to-consumer marketing firm.

Gary Norman, executive vice president and general manager for Rx EDGE, said the data clearly show that targeted in-store promotions are paying off for both retail pharmacies and drug manufacturers. “The local pharmacy is proving to be a very effective outlet for reaching consumers who want to learn about various conditions and treatment options,” said Norman. “This channel offers a unique advantage for educating consumers because a pharmacist is on hand to answer questions.”

Norman noted that in-store promotions of prescription drugs are providing counseling opportunities for pharmacists, which helps create a more educated and loyal consumer and, in turn, generates ongoing revenue from new prescriptions and refills. In addition, studies show that nearly half of all pharmacy customers are loyal to one store and they spend about 60 percent more per year on front-end drug store products than non-pharmacy customers. 

“When consumers read and react to educational information in a pharmacy aisle, they usually are ready to try a prescription drug to alleviate a lingering problem, such as insomnia, allergies or heartburn,” said Norman.  He noted that most Rx EDGE displays are placed near corresponding OTC products, thereby increasing the probability the information will be read by consumers with some interest in learning about a related prescription medication.  “Targeted in-store promotions, therefore, are proving successful at generating new prescription sales by empowering patients with information they can discuss confidently with their physicians.  The net outcome often is a prescription sale.”

For many pharmaceutical brands, in-store campaigns are proving effective in extending the reach of print and broadcast advertising by providing detailed information about specific health conditions and specific medications.  “Once consumers visit the pharmacy, in-store marketing is a high-impact way to reach them with a detailed brand message,” Norman said.

Rx EDGE is a business unit of LeveragePoint Media, which provides a broad array of retail-marketing solutions.  Through a network of more than 18,000 US pharmacies, Rx EDGE promotes pharmaceutical brands with at-shelf dispensers, counter displays, counter mats and other in-store media.  The firm’s clients include several of the leading global pharmaceutical manufacturers.