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What happens in Vegas … better NOT stay in Vegas

BY Rob Eder

Man, am I sick of that cornball phrase; as if everybody who ever goes to Las Vegas has some kind of rock star night, like lost footage from one of the "Hangover" trilogy movies. The truth is, if you’re reading this now — or in my case, writing this now — your life just is not that glamorous. You’re not going to be hanging out with Mike Tyson all night, and if you wake up one morning and can’t remember the night before, you’re going to have much bigger problems than just a splitting headache.

Let’s face it — if you’re heading to NACDS Total Store Expo, what happens in Vegas BETTER NOT stay in Vegas. You need to make the most out of your meetings, and you’re going to need to show a return for the time and money you invested in the trip, perhaps more so than any other trade event you attend all year. In show business vernacular — TSE IS your Vegas.

That’s the idea behind our cover — your VIP pass, loaded with trends, ideas and products to help you optimize this game-changing show.

Enjoy the issue and if you’re going to TSE, have a great meeting.

And for Pete’s sake, if you see me out there, don’t hit me with, "What happens in Vegas …"

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Trade promotion and performance in cough-cold

BY DSN STAFF

DSN has partnered with Competitive Promotion Report and IRI to create a new series of exclusive reports that analyzes the impact of trade promotion activity on various front-end merchandising categories — DSN Promo Watch.

In this premiere edition, DSN examines the cough-cold business. Following are key findings from the analysis:

  • Average trade spending — defined as all off-invoice allowances and bill backs — is very seasonal in cough-cold, ranging from less than 1% to almost 5.5%;
  • Trade spending was highest in cold-allergy-sinus liquids, averaging 5.4% in November 2012. Yet, it is No. 2 in market share, trailing by an average of 51 points;
  • There is greater proportional trade spending on liquid products and cough syrup than on tablets and cough drops, yet the latter generate greater retailer margin;
  • Increases/decreases in trade spending in tablets have less impact on market share than any other category;
  • There is a direct correlation between trade spending and market share in liquids, cough syrup and cough drops. However, only slight increases in cough drop trade spending leads to sharper market share increases;
  • Cough syrup had the lowest average retailer margin of any cough-cold category over the past two years at 22.6%, 30.5% and 37.8% in the mass, grocery and drug channels, respectively;
  • Cough drops had average market share of less than 10% over the past two years, but the category had the highest margins at 31.0%, 40.9% and 48.3% in mass, grocery and drug, respectively;
  • Tablets captured two-thirds of market share with the second-highest margin on the lowest trade spending;
  • Cough syrup had the lowest average market share at 7.8% and the second-highest average trade spending at an average of 2.4%;
  • Market share increases/decreases perform in inverse relation and lag retailer margin increases/decreases in liquids;
  • In tablets, increases/decreases in retailer margin had less impact on market share;
  • In cough syrup, significant reductions in average retailer margin most often were followed by increases in market share;
  • Margin decreased when trade spending increased in all categories.
  • When average margin reached its highest peak over the last two years at 46% in May 2011, unit sales decreased 36% within 3 months);
  • Unit sales and spending moved in sync in all four categories;
  • When promoted, the average net invoice for liquids, tablets and cough syrup was within a narrow range at $4.78, $4.67 and $4.91, respectively, while the net invoice for cough drops on promotion was $0.75; and
  • In June 2013, tablets saw an increase in average list price from $5.10 to $5.29 (+3.6%); however, average retail price increased less than 1% in July from $9.67 to $9.75.

Sources: IRI, a Chicago-based market research firm (@iriworldwide), Cough & Cold, 116 weeks ended May 19, 2013, total U.S. multi-outlet and CPR Detail Report and Retail Price Report, 116 weeks ended May 19, 2013.

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DSN lands ‘big one’ for upcoming Industry Issues Conference

BY DSN STAFF

NEW YORK — The Drug Store News Group is going to need a bigger boat.

With an all-star lineup of leading retailers and a capacity crowd once again expected for the annual Drug Store News Industry Issues Conference, DSN has added Daymond "The Shark" John as the special guest speaker at this year’s event, which is scheduled for Tuesday, Dec. 3, here, at Manhattan’s New York Athletic Club. An annual event, now in its 15th year, DSN Industry Issues Conference offers a full day of thought leadership and important networking opportunities with many of the industry’s leading merchandising and marketing executives.

Young entrepreneur, industry pioneer and highly regarded marketing whiz, John, who is perhaps best known for his role as one of the original investor-judges on ABC television’s critically acclaimed "Shark Tank," will talk to Issues Summit attendees about his philosophy and theories on brand building, promotion and what it takes to break through in today’s marketplace. The show features rising, upstart entrepreneurs who present their business models to the panel of expert judges in hopes of securing investment dollars from John and other celebrity judges, who also include Canadian business magnate Kevin O’Leary, National Basketball Association Dallas Mavericks owner Mark Cuban and others.

John got his start as the founder of the apparel company FUBU (For Us By Us), which he started in 1992 with a $100,000 mortgage on his Queens, N.Y., home, and at its height, reached worldwide sales of more than $350 million.

Participating retailers confirmed for this year’s event include Ahold USA, AmerisourceBergen, CVS, Costco, H-E-B, Health Mart, Kerr Drug, Rite Aid, Sam’s Club, Thrifty White, Walgreens, Walmart, Winn-Dixie and more.

In all, the DSN Industry Issues Conference features three separate panel discussions, including Issues Summit, which focuses on opportunities for retailers to grow the front-end business; Diabetes Chronic Care Leadership, which explores innovative approaches to disease management; and Health, Wellness and Technology Summit, which examines new and emerging solutions to drive improved patient care.

To learn more, contact Wayne Bennett at [email protected].

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