With the U.S. economy stuck in neutral, Walgreens Drug Store has taken a leap onto the "value" bus by launching a national campaign to promote its private-label branded health and wellness products according to the New York Times. Walgreens believes that value is defined as "quality and affordability"; a definition most consumers would share.
However, while private label or "generic" brands have always been synonymous with affordability, they've not typically been associated with quality. So only time will tell if Walgreens is able to convince consumers that its brands are just as effective at treating health related issues as the bigger brands.
According to the Times article, "Of 1,006 adults in the United States surveyed by Walgreens and the Opinion Research Corporation in January, 84 percent said they purchased store-brand over-the-counter medications when they were available and 36 percent said they had increased their purchases of store-brand products in the last year, according to a statement provided by the company."
While the reliability of an in-house study can be dubious, if Walgreens' research holds true, the drug store stands to reap huge benefits from its new campaign.
Though Walgreens has always advertised its private label, those campaigns have typically been limited to the use of Sunday circulars or in-store signage says the New York Times. Therefore, it will be interesting to see if a much larger campaign has a negative impact on the co-op dollars Walgreens receives from the very companies it is now going toe-to-toe with.
Assuming the private label campaign is successful, Walgreens probably won't care. But if it falls flat or if major suppliers begin moving product through other retail or distribution channels, how will a lack of consumer options impact Walgreens' bottom line?
Walgreens' integrated campaign is web and social media heavy, focusing on 25-54 women and moms; a very cost-conscious crowd. Look for the Walgreen's ads on your favorite fashion blogs and parenting websites.
