John Szustaczek, The DivaCup
Drug Store News recently had the opportunity to speak with John Szustaczek, The DivaCup’s director of sales and marketing, about the company’s double-digit annual growth rates, why consumers are drawn to the product and The DivaCup’s geo-targeted advertising strategy.
DSN: How popular is The DivaCup?
John Szustaczek: The DivaCup SKUs are extremely popular with all women, especially those in the 19- to 40-year-old demographic. Our year-over-year, same-store sales are growing at double-digit rates. Recent IRI data shows that our SKUs now rank in the top 70 SKUs in the feminine hygiene category for overall sales, as well as in the top 10 SKUs on sales per point of distribution.
DSN: What draws consumers to The DivaCup — sustainability? Safety? Convenience?
Szustaczek: The DivaCup is targeted to all women who menstruate. Consumers are drawn to The DivaCup SKUs for the leak-free protection that they enjoy for up to 12 hours at a time. This convenience allows women to participate in activities that may have been more difficult to engage in while wearing other forms of protection like tampons and pads, which do not offer the same level of freedom or protection. The DivaCup SKUs are cleaner and far more convenient, which is very attractive to consumers.
DSN: Your website uses the word “empowerment” with respect to consumers learning about menstruation. How does your product empower customers?
Szustaczek: Our product helps women learn more about their cycles, their menstruation and their bodies far more than traditional products. Women can accurately measure their flow for their own knowledge and also when conferring with their healthcare provider. Our SKUs also allow women more freedom to participate in a variety of activities for longer periods of time, with the confidence that their menstrual care won’t fail.
DSN: What sort of alternative options are consumers seeking in the personal care aisle? What sort of growth opportunity do you see with that type of consumer?
Szustaczek: Consumers are consistently looking for new and improved products and solutions in personal care. They are very interested in innovative products, and products that are better for their health and their bodies.
DSN: Can you describe your retailer-specific geo-targeted advertising strategy?
Szustaczek: Our geo-targeted, retailer-specific advertising strategy is focused on driving consumers to retailers that sell our SKUs. We work to grow off-take, creating demand that results in consumers buying the SKUs thereby benefiting our retail partners. Unlike our competitors, we do not sell our SKUs ourselves, therefore, we do not compete directly with our retail partners. We use a combination of in-store promotion, geo-targeted digital ads and social media to promote our retail partners. We also tag specific partners in print, TV and digital ads to drive sales. All of our efforts are geared at driving demand and sales to our retail partners.
Health systems acquiring non-acute care clinics for growth
McKesson’s corporate wellness program saves money, gains accolades
- Over the three years of this analysis, engaged adult participants increased activity levels by 92%;
- Since April 2012, 4,892 McKesson employees and 493 spouses reported attending 159,994 Weight Watchers meetings and reported a net weight loss of 24,759 pounds;
- Pedometers are the most frequently used fitness device, with nearly 23,000 employee and spouse members, and more than 6.3 million recorded activities between 2011 and 2014;
- Between 2011 and 2014, McKesson members took over 51 billion steps covering 25.6 million miles;
- Company-sponsored events such as philanthropy fundraising walks encourage and reward employees;
- In 2014, 44% of employees averaged 80.7 workouts per year. Spouses also demonstrated a robust commitment to physical activity as 29% of spouses averaged 82.6 workouts per year;
- Employees that were “medium engaged” or “highly engaged” in the program spent between $916 to $1,238 less on medical expenses per employee in 2014 compared to “low engaged” employees in 2012 and 2013. This led to an overall saving of $4.7 million in medical costs for McKesson;
- Between 2012 and 2014, a majority of members transitioned from the low engagers group to the medium or high engager groups. In 2012, there were 8,741 members in the low engager group. By 2014, this had decreased to 2,531. The high engager group doubled in size from 2,091 to 5,167; and
- Employees self-reported that their on-the-job performance increased from 81.69% in 2012 to 85.34% in 2014. When this increase is converted into dollars using a conservative salary conversion method, total savings was nearly $7 million across both 2013 and 2014.