Reuters reports that drug chain Walgreen plans to spend $360 million on advertising this year, a 12-13 percent increase over 2002, to bolster sales in the general merchandise segment.
According to the report, Walgreen will focus its energies on advertising instead of price promotions as a way of maintaining its margins; CVS and Rite Aid have both taken the discounting approach to shore up sales.
According to the report, Walgreen will focus its energies on advertising instead of price promotions as a way of maintaining its margins; CVS and Rite Aid have both taken the discounting approach to shore up sales.
- KC's View:
- On the face of it, you have to admire the Walgreen approach simply because it doesn’t look to further commoditize the experience. If it does it right, the company will be trying to focus the consumer’s attention on the items that differentiate it from the competition. Which just seems smart.
