Drug stores must find niche for cash-rich, value-savvy teens

Drug Store News,  March 1, 2004  by Michelle L. Kirsche

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"Find out what you mean to teens and what teens expect from you, and deliver on that. Don't try to be something you're not," is the advice Michael Wood, vice president of Teenage Research Unlimited, has for drug store retailers looking to maximize sales among today's teen consumers.

Just like with so many other customer segments, drug chains increasingly are competing with the likes of Wal-Mart and Target for a share of teens' wallets. While mass may not have been very appealing to previous generations,, times, have changed--Target has brought cachet to the discount channel, and the average perception of the Wal-Mart experience has been elevated from "cheap" to "value-enhanced."

"Today's teens are growing up with a different idea and perception about mass merchandisers," Wood said. "The Targets and Wal-Marts of the world are really creating a strong bond with this age group. The challenge is on drug stores to carve out their niche before it's too late."

One common mistake retailers make is assuming they have to sell a lot of fad products or create a teen atmosphere. That in itself is a dead giveaway they're trying too hard to be accepted by this market, Wood added.

Drug stores need to concentrate on their core strengths as health care providers--a quality that already resonates with teens. Wood suggests parlaying that reputation of authority and credibility into loyalty and future sales among today's teens. And that means a more out-of-the-box, less traditional marketing approach. "Get involved in schools, he said. Engage speakers to talk about important topics. Get in [physical education] classes and talk about how nutrition helps in sports, performance. Teens will walk away and say, That's cool.' At the end of the day, that is really the mark of acceptance."

There also are ways to tie in to events and milestones in a teen's--life for instance, homecoming or spring break survival kits long on beauty care items or exam survival kits filled with nutrition bars, energy drinks and school supplies. "Understand what their lives are all about and connect with them, Wood said.

"Teens are super busy," said Tristan Coopersmith, Trendspotter manager for Teen People magazine. (The Trendspotters are an online community of 12,000 teens with whom Teen People editors communicate on an ongoing basis to assess trends and target hot products.) "They are extremely price-conscious, and they know that they have options. They know everyone wants a piece of their bank account and that they hold a lot of power. They are looking for brands and retailers who respect them as customers."

Today's teens have been marketed heavily to since birth. They are exposed to about 1,00Oadvertising messages daily, from traditional media to T-shirt logos. And they don't mind.

"Teens want to be marketed to. They want to be paid attention to. [But] they don't want to be talked down to, Coopersmith said.

"[Teens] expect to be approached as adult-thinking, but teen-feeling consumers," added David Wolfe, creative director of the Doneger Group. Wolfe suggested conducting teen focus groups and using teen consultants to better understand the powerful consumer group.

Tremor, a marketing service that Procter & Gamble Co. powers, does just that by recruiting influential teens to help create products teens want and marketing programs to which they will respond. The service picks the creme de la creme: About 1 percent of U.S. teens make the cut. Those who do not qualify are invited to become a member of the online Harris Poll. "You may have noticed that corporate America is trying to sell you on just about anything and everything. We help businesses and key decision makers listen to you, so they make stuff you want, the Harris Poll application reads.

Certainly, more suppliers-are pursuing this market than ever before. Within each category, there are more product choices, as well as newly emerging categories, such as technology devices. Technology is diverting teen monies from clothing and footwear to electronic devices like MP3 players, CDs and DVDs, Wood said. For instance, the 2003 TRU survey found 47 percent of teens ages 12 to 19 have a cell phone, compared with just 16 percent in 1998.

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