Walgreens leaps on the "value" bus! Smart or Silly?

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.

When did the US government get into the pizza consulting business?

A recent article in the New York Times revealed that the U.S. Department of Agriculture was involved in consulting and recommending to Domino's Pizza that it add 40% more cheese to its pies!

I didn't realize that the government was in the pizza consulting business, but I could spend days discussing that.

According to the article, "Dairy Management, the 'consultant' [hired by Domino's] which has made cheese its cause, is not a private business consultant at all. It is a marketing creation of the United States Department of Agriculture".  Yes, the very same Department of Agriculture responsible for leading the government's national anti-obesity campaign.  Talk about "speaking out of both sides of your mouth"!

One slice of Domino's pizza has as much as 2/3rds the recommended daily allowance of saturated fat.  So, on the one hand, the USDA is recommending to the nation's largest pizza chain that it add significantly more cheese to its pies, while on the other hand, recommending that Americans eat less saturated fat, something cheese has in abundance.  Obviously, I'm not the only one that sees some inconsistencies here that could be potentially problematic for Domino's, but highly problematic for the federal government.  Unfortunately, we're talking about a federal agency.  Traditionally, federal agencies have never seemed to be too concerned about their reputations.  They let congress worry about that.

Here's my favorite quote from the article:  "The department acknowledged that cheese is high in saturated fat, but said that lower milk consumption had made cheese an important source of calcium. 'When eaten in moderation and with attention to portion size, cheese can fit into a low-fat, healthy diet'."

I get such a kick out of health and dietary ads that use the disclaimer, "with proper diet and exercise".  The fact is that if everyone maintained a healthy diet and exercised regularly, there would be no need for dietary supplements or weight loss pills.  With "proper diet and exercise", I could probably take diet pills made of bacon fat and still lose weight.

The government is bad enough when dealing with bureaucratic legislative and regulatory issues.  I really wish they would stay out of the marketing business.  They're going to give us all a bad name.  Next thing you know, they'll be selling used cars or launching an airline.