Amplifying theR l f S k tRole of Supermarketsin Wellness Marketing

Sharon GlassSharon GlassGroup Vice PresidentHealth & Wellness Marketing

September 13, 2009

The Forecast is Dire

Our Potential is Powerful

Oppo t nit KnocksOpportunity Knocks

The Forecast is Dire

Our Potential is Powerful

Oppo t nit KnocksOpportunity Knocks

Stronger Engagement through d ti t t d i tieducation & targeted incentives

Supermarkets have tremendousSupermarkets have tremendous opportunity to help customers:

1. Adhere to treatment regimens

2. Choose and prepare healthful foods

3. Lower risk of adverse conditions

Americans are modifying evenminor habits to sa e moneminor habits to save money

22% say economy is causing them toth d t lsee the doctor less.

11% scaled back or reduceddosageon Rx Medications to make them last longeron Rx Medications to make them last longer.

Source: National Association of Insurance Commissioners

Persistence Curves show Concerning Rates of ComplianceConcerning Rates of Compliance

Cholesterol100% Cholesterol Type-2 Diabetes

Hypertension%64%

40%

% of new patients refilling Rx in same chain within 30 days of refill due

1 2 3 4 5 6Refill #

y

1 2 3 4 5 6

Source: Catalina PatientLink™Sample sizes within conditions >190K

Refill #

Pharmacy has Great Potential I Adhto Improve Adherence

Reasons Patients do not take Rx as Instructed

Affordability of medication 20%Patient feels they do not need medication 20%

Sid ff t f di ti 17% 68%Side effects of medication 17%Forgetfulness 16%

Lack of concern for their condition 5%

68%can be

influenced Lack of concern for their condition 5%Lack of information on disease 5%

Lack of information on Rx prescribed 5%

by Pharmacy

Lack of information on Rx prescribed 5%Lack of family/social support 5%

Low satisfaction with Rx prescribed 3%Poor relationship w/ pharmacist or physician 2%

Source: AstraZeneca Physician Survey October 2008

take more than one Rx di ti f single condition

58%medication for a single condition

t t lti l diti69% treat multiple conditionswith Rx medications

69%

Source: Catalina PatientLink™ Readership Study G&S Research

Concurrent Conditions t Complexitycreate Complexity

% of Patients Also Filling RxTherapeutic

Category

% of Patients Also Filling Rx for Other Categories

Type-2Category Type-2 Diabetes Cholesterol Hypertension

Type-2 100% 21% 15%Diabetes 100% 21% 15%

Cholesterol 43% 100% 30%

Hypertension 57% 57% 100%

Source: Catalina Health Resources PatientLink ™ Patient cohort: all new patients filling in each category 7/08. Look back of 180 days, analysis span 365 days. Sample size within conditions >190K to 676K.

How, When, Why to take Rxli it High Interestelicit High Interest

Consumer Receptiveness toConsumer Receptiveness toReceiving Info at Pharmacy

How to take Rx with other medicationsHighest InterestWhen to take medication

Why it is important not to stop taking RxWhy to take Rx exactly as directed High

InterestWays to treat in addition to medicationWebsite for Rx medication

ModerateInterestWebsite for condition

Toll free # to get more info about condition

Source: Catalina PatientLink™ Readership Study conducted by G&S Research

Simple Print Communication Helps Patients Recall Important InfoPatients Recall Important Info

% Recall on Aspects of High Recall pPatient Communication

Side effects 83%

High RecallFor Side Effects & Usage Directions How to use Rx 79%

Cautionary 76%

Usage Directions

messages 76%

Information 32%about condition 32%

Website 18%reference 18%

Source: Catalina PatientLink™ Readership Study conducted by G&S Research

Patients React to P i t C i ti t Ph

Top Actions

Print Communication at Pharmacy

Top ActionsLook at websiteto get more information

Call DoctorCall Doctorto discuss what I read

Speak with Pharmacist about what I readabout what I read

Source: Catalina PatientLink™ Breakthrough Study 2009

By properly deployingBy properly deployingBy properly deploying By properly deploying incentivesincentives and and nudgesnudges, , we canwe can improve livesimprove liveswe can we can improve lives improve lives and help solve many of and help solve many of society’s problems.society’s problems.

Source: Nudge, Improving Decisions about Health, Wealth and HappinessRichard Thale and Cass Sunstein

just 12%12%just 12%12%floss dailyy

Drive Compliance for Products throughout the Store

C i t b fit f i

throughout the Store

Communicate benefits of regimen use

Optimal timing for each shopperOptimal timing for each shopper

Compress purchase cycle up to 50%

Stronger Engagement through d ti t t d i tieducation & targeted incentives

Supermarkets have tremendousSupermarkets have tremendous opportunity to help customers:

1. Adhere to treatment regimens

2. Choose and prepare healthful foods

3. Lower risk of adverse conditions

Most Agree…Yet Man Igno eYet Many Ignore

Eating breakfast can help you lose

82%Agree

Less than half eat breakfastcan help you lose

weightAgree eat breakfast

every day

Tracking what you eat makes

59%Agree J t 20%you eat makes

it easier to lose weight

Agree Just 20%often track

what they eatg

Source: Catalina Weight Management Survey 2009

what they eat

Just 1/3 Agree Most Low Fat or L C l i F d Taste GoodLow Calorie Foods Taste Good

d G dMost Low Fat Foods Taste Good27% Disagree 43% Unsure 30% Agree

Most Low Calorie Foods Taste Good24% Disagree 45% Unsure 31% Agree24% Disagree 45% Unsure 31% Agree

Source: Catalina Marketing Weight Management Study 2009

Taste Trumps CostB i t Ch i H lth O tias Barrier to Choosing Healthy Options

TASTE has 3 to 7 times the impact of COSTpas reason shoppers prefer a

‘regular’ vs. ‘healthy’ productegu a s ea t y p oductacross 15 categories

Taste : Cost RatioTaste : Cost Ratio

3:1 4:1 5:1 6:1 7:1BreadCerealPasta

CrackersSoupMilk

ChipsCheese

Ice CreamCookies

Soda

SaladDressing

Pasta Mayonnaise

MilkDeli Meats

SodaSoy Sauce

Source: FMI Shopping for Health 2009

Helping Shoppers Overcome Barriers t H lthf l Ch iBarriers to Healthful Choices

Challenges SolutionsTaste…or taste perceptions

» Drive trial with coupons, sampling & targeted messaging

Helping Shoppers Overcome Barriers t H lthf l Ch iBarriers to Healthful Choices

Challenges SolutionsKnowing what options are best

» Clear, simple labels on pack and at shelf» Nutritional guidance in-store and on the web

Helping Shoppers Overcome Barriers t H lthf l Ch iBarriers to Healthful Choices

Challenges SolutionsMeal Planning & Preparation

» Provide recipes in-store, in-ad and on the web » Healthy ready-to-eat and heat-and-eat meals» Cooking classes and demonstrations» Cooking classes and demonstrations

Helping Shoppers Overcome Barriers t H lthf l Ch iBarriers to Healthful Choices

Challenges SolutionsCost…or cost perceptions

» Coupons, value messaging, shelf signs» Ad placement and promotional pricing

Helping Shoppers Overcome Barriers t H lthf l Ch iBarriers to Healthful Choices

Challenges SolutionsMaking a plan… and sticking with it

» Provide counseling, motivation and simple tracking systems» Help shoppers plan and make shopping listswith it » Help shoppers plan and make shopping lists

Helping Shoppers Overcome Barriers t H lthf l Ch iBarriers to Healthful Choices

Challenges SolutionsTaste…or taste perceptions

» Drive trial with coupons, sampling & targeted messaging

Knowing what Clear simple labels on pack and at shelfKnowing what options are best

» Clear, simple labels on pack and at shelf» Nutritional guidance in-store and on the web

Meal Planning & » Provide recipes in-store, in-ad and on the web Preparation » Healthy ready-to-eat and heat-and-eat meals

» Cooking classes and demonstrationsCost or cost » Coupons value messaging shelf signsCost…or cost perceptions

» Coupons, value messaging, shelf signs» Ad placement and promotional pricing

Making a plan… d ti ki

» Provide counseling, motivation and simple t ki tand sticking

with ittracking systems» Help shoppers plan and make shopping lists

Leverage Websites & Build Influenceof Counseling & Merchandising

% Using for Nutrition InfoBuild

of Counseling & Merchandising

Build awareness of

meal planning,

Internet 49%Magazines 34% meal planning,

time saving and nutritional

Television 29%Doctor 28% nutritional

guidance available online

Grocery Store 22%Newspaper 20%

and in the store.

p pNutritionist/Dietician 10%

Radio 7%Pharmacist 5%

Source: FMI Shopping for Health 2008

Simple SubstitutesS i hi Li h BSwitching to Light Butter

Annual Switching Nutrients Per Pound Weight Consumption

Analysis

S tc gcuts

calories, fat &

gLoss

Impact of Switching

Calories CholesterolButter 3 200 960 mg&

cholesterol in half

Switching(Pounds)

Butter 3,200 960 mgLight Butter w/

Canola 1,600 160 mg

Diff 1 600 800Difference -1,600 -800Average Annual Consumption & Benefit by Switching

Overweight 9 lbs -14,400 -7,200 mg 4.1g , , g 4.1Diabetics

8 lbs -12,800 -6,400 mg 3.7Heart Concerned

5 9High Blood Pressure 13 lbs -20,800 -10,400 mg 5.9Source: Catalina Weight Management Study 2009

Strongest Influence by N t iti L b li C & St AdNutrition Labeling, Coupons & Store Ads

% Stating Strong Influence on Grocery Purchases

Nutrition LabelsCoupons

Labels, Coupons & Coupons

Store Ads/CircularsShelf Signs

Coupons &Circulars

have Shelf SignsProduct Displays

strongest influence

News, Talk ShowsPharmacists

on grocery products

h d Websites, TV Ads, Magazine Adspurchased

Source: Catalina Weight Management Study 2009

Healthy Choices In the Sto eIn the Store

and So Much More

Stronger Engagement through d ti t t d i tieducation & targeted incentives

Supermarkets have tremendousSupermarkets have tremendous opportunity to help customers:

1. Adhere to treatment regimens

2. Choose and prepare healthful foods

3. Lower risk of adverse conditions

Taking Healthy Living ServicesAll The Way to BrightAll The Way to Bright

RefillMedication Condition

Refill Notification

Health

Therapy Management

Screening

Health-

Rx Persistence

SeminarsNutritionCounseling

In-store Healthy HealthFocused

Shelf Labels

CustomMeal Planning Prepared

Counselingy

Recipes

LabelsMeal Planning epa edMeals

Discounts for WebsiteCommunitylocal health & fitness centers

NutritionistInteractive Q&A

CommunityOutreach

Health & Wellness MarketingTop Challenges for RetailersTop Challenges for Retailers

Reimbursement of Pharmacist time for counselingReimbursement of Pharmacist time for counseling

Teaching people how to cook…they would get healthier & it would drive sales

B ildi dibilit i llBuilding credibility in wellness…while selling cigarettes, alcohol & high calorie foods

Promoting wellness…while not negatively impacting sales and profitwhile not negatively impacting sales and profit

Health & Wellness MarketingTop Challenges for CPG MarketersTop Challenges for CPG Marketers

C ti dCompeting agendas

Managing variation across retailersManaging variation across retailers

Requirements for functional claims

Good for you vs. great taste

Consumer confusion

Aligning message with consumerAligning message with consumer

Make it RelevantMake it Relevant

Make the Right Connections for each Customereach Customer

Supermarkets areUniquely Positioned i W llUniquely Positioned in Wellness

»Pharmacist Trust Satisfaction Relationship»Pharmacist Trust, Satisfaction, Relationship» Breadth of Pharmacy & Wellness Services

Sh l ti & bilit t t i» Shopper analytics & ability to customize s messages, recipes, coupons at checkout» Trip frequency» Trip frequency

» Displays & circulars impact product choice» Nutritionists, store tours, cooking lessons

Websites provide lifestyle advice access» Websites provide lifestyle advice, access a to nutritional counseling and recipes

The Forecast is Dire

Our Potential is Powerful

O t it K kOpportunity Knocks

Join us to more effectivelyAmplify theAmplify the

Role of Supermarketsin Wellness Marketingin Wellness Marketing