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Chain Drugstore Daily NACD April 22 2013

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C h a i n D r u g s t o r e D a i l y M o n d a y, A p r i l 2 2 , 2 0 1 3 1 4 You might know that confectionery con- sumption increases during holiday seasons, but do you realize that in the drug channel, seasonal candy represents an impressive 50 percent of confections' sales? Since seasonal candy can drive store traffic, offering the right assortment is key. To help retailers determine the opti- mal product mix per store, in 2011 Mars Chocolate North America launched Seasonal Architect™, an innovative fore- casting tool. Seasonal Architect simplifies deci- sion making by enabling superior fore- casting efforts during key promotional time frames such as Halloween, Holiday, Valentine's Day and Easter. Mars' Seasonal Architect helps retailers maximize profitability across four key areas: One, identify stores and items with out-of-stock issues; Two, determine root cause of out-of-stock issues; Three, recommend tactics to max- imize seasonal sell-through; and four, estimate the total opportunity through mix optimization. The goal is to ensure a retailer is in stock throughout the entire season. Shoppers are discouraged when they can't find the brand they are looking for, and Seasonal Architect aims to keep retailers in stock and consumers happy. This tool helps retailers by selling more confections during the season, not after the season ends. Another tactic to boost seasonal con- fectionery sales is placing secondary dis- plays in key locations, such as the phar- macy, snacks/grocery aisle and health/beauty aisle. Additional hot spots include the store perimeter, at the front end, in the cooler vault and photo area. Mars Chocolate offers unique, col- orful displays that capture a shopper's attention and ultimately converts them to a purchaser. "Effective POS helps make shopping a little easier and rewarding for the consumer, which translates into a positive experience at that retail- er," explained Larry Lupo, Vice President of Sales – Convenience & Drug Channels, Mars Chocolate North America. "When developing a seasonal merchandising program, we always lead with consumer insights. At Mars, we're constantly reviewing shopper data and consumer trends, and we share these insights with our retail partners." One trend is the increase in demand for seasonally themed singles. Mars Chocolate expanded its seasonal assort- ment last year to include singles shapes, and this year the company will add Snickers ® brand Peanut Butter Pumpkins for Halloween and Twix ® Brand Santa's for Christmas. Mars Chocolate brands have been holiday family favorites for genera- tions, including festive red and green M&M'S ® brand Milk Chocolate Candies in holiday packaging. Building on this iconic brand, this year Mars will offer M&M'S brand MINIS Milk Chocolate Candies for the Holidays. In red and green col- ors, this new item will help sat- isfy consumers' holiday baking needs. Gifting is a growing part of holiday sales, as the gifting segment increased 6.4 percent over last year. (IRI Data, 12/30/2012) To meet this trend, Mars is introducing several options to make gift- giving easy, including: M&M'S brand Candies Gift Boxes, complete with a "To:/From:" area; a collectible M&M'S brand Recipe Box Tin, with red and green candies, recipes and a cookie cutter; and a 16-ounce Snickers brand Slice n' Share Bar, ideal to share at a holiday party. By combining Mars' iconic leading brands, shopper insights and Seasonal Architect, drug retailers will enjoy sweet success in seasonal sales. For more information, visit strategic exchange space 240 at the 2013 NACDS Annual Meeting and go online to www.mars.com. SEASONAL STRATEGIES FOR THE CANDY AISLE RECALL CONFIDENCE IN AN INCREASINGLY COMPLEX ENVIRONMENT By Mark Vare, RPh, RAC, Recall Consultant Increasing regulations, use of global sourcing amid growing expectations regarding product traceability: Can a company be "recall confident" in such a fluid and complex environment? A com- pany's recall policy has never been more important to risk management efforts. With a solid policy, plan and alliances in place, a company can be confident; how- ever, this is not the time to be compla- cent. Regular evaluation of current strat- egy is critical to ensure policies and pro- cedures are comprehensive enough to protect the public as well as the firm's reputation and bottom line. Especially challenged are large retail pharmacies, distributors and global man- ufacturers that deal with diverse product types. While the recall process is inher- ently similar for all products and indus- tries, subtle differences exist, which if not addressed, can significantly affect the execution of a product recall as variants in product types, distribution models, and regulatory authorities can affect a poten- tial recall. And, all trading partners are "on the line." Assessing the current state of readi- ness is the first step to identify any gaps in current business processes so that appropriate new processes, protocols and best practices in recall management can be implemented. Once the gaps are iden- tified, and appropriate remediation has occurred, companies can enhance success by testing the plan through mock recall exercises. Finally, contin- ual improvement pro- grams including training and regular plan reviews allow firms to further leverage innova- tion and best practice to improve their process accordingly. Preparedness does not end with the plan. A company must also have access to alliances with the very best technology and operations to execute the recall―from locating affected product, to product retrieval, processing, compliant destruction and regulatory reporting. For example, the increased use of authentica- tion molecules, 2D bar codes and other similar technology enable capture of lot/date codes throughout the supply chain and can help identify recalled prod- uct. When a recall occurs, removal from the marketplace quickly and efficiently is imperative and these approaches help enable that removal. They also help inform process improvement to reduce recurrence. And, while product promotions may be the last thing that comes to mind during a recall, an appropriately structured promotion can be an important element in extending goodwill to consumers and protecting valuable brand equity. Stringent regulations are challenging all trading partnersparticularly those involved in pharmaceuticals and health- care. With proper planning, oversight, tech- nology and alliances in placethe answer is, yes, recall confidence is attainable. For more information, visit meeting space 330, email solutions@inmar.com or visit www.inmar.com. TRIUMPH PHARMACEUTICALS USES A CHOIR OF 'SMART MOUTHS' TO PREACH THE BRAND'S MESSAGE Triumph Pharmaceuticals, makers of the SmartMouth line of products, uses a choir of influencers, mostly on national talk-radio hosts, to deliver the brand's powerful message every day. And since SmartMouth started using this strategy in mid-2012, the brand's sales have climbed to more than 30 percent. "It's been amazing;" stated Andrew Burch, the President of the company. "I always had a feeling this would be effec- tive, but frankly the the momentum hap- pened with a perfect storm!" What Burch is referring to is what happened one night last July when his phone started ringing off the hook. "Did you hear what Bill O'Reilly did tonight?" asked one contact after another. Burch explained that what seemed to be out of the blue, Bill O'Reilly decided to talk about SmartMouth for his "Tip of the Day" to his 8 million viewers. Industry Business Development Consultant David Biernbaum explained the drama for his client Triumph Pharmaceuticals: "The SmartMouth web site had 75,000 hits within the first two hours after O'Reilly's broadcast. Only problem was that the web site was fit to handle only 20,000 hits at any given time!" Biernbaum continued, "We imme- diately contacted our ad agency to make sure we would fully capitalize on this exciting event." And that the ad agency did in a very big way. "Hi Everyone, Chuck Woolery here. You may know me as the host of Love Connection. After putting a few thousand couples together, I know a thing or two about dating, and nothing will kill the romance faster than bad breath." The SmartMouth brand is now regularly endorsed first hand by what the company calls a choir of influencers that currently include Chuck Woolery, Rick and Bubba, Monica Crowley, Donnie McClurkin, Michael Smerconish, Bill O'Reilly, Cristina, Dennis Miller, Ric Edelman, Rusty Humphries, and a grow- ing number of others. Biernbaum explained, "What makes this work so well is that these talk show hosts have extremely loyal listeners and followers that will take the guidance of the hosts the same as they would a fami- ly member or personal friend. However, this approach would not necessarily work for every product. SmartMouth gets the full benefit because the hosts are able to deliver a very credible and personal story about the product to his or her audience. That's what makes it work!" Andrew Burch attributes the success to the company strategy from more than a year ago. "Last year, and even before then, we started to approach and get rec- ognized by a large group of opin- ion leaders and celebrities," he said. "Our CEO Dr. Susanne Cohen and our co-founder Dr. Marvin Cohen, attended events with such national celebrities as Larry King, Dr. Drew Pinsky, Donald Trump, and even winners from American Idol and other major national shows that everyday people watch." Burch added, "So we created our own good luck. One celebrity talks to another and before we knew it, Bill O'Reilly found out about us, made us an unsolicited Tip of the Day, and then the rest was history!" For more information, please contact Andrew Burch, President, at 314-882-2610 or Aburch@smartmouth.com. The compa- ny website is www.smartmouth.com.

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