FoxMeyer's franchise program adds VISA

Drug Store News,  Feb 20, 1989  by David Vaczek

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FoxMeyer's franchise program adds VISA

FoxMeyer's Health Mart franchise division has launched what seems to be a no-lose program for its expanding network of stores. It's introduced the Health Mart-Visa credit card, an affinity card program which links the franchises with the national credit card company.

One of the program's key benefits to the franchisee, in fact, is the "halo effect" derived from having a joint card with the big credit company, notes Bruce Kneeland, vp-franchise sales.

Issued through the American Federal Savings Bank of Buffalo, N.Y., the card lets the customer know their Health Mart store is big enough to work with VISA. That link is reinforced each time the card is advertised, as it was when VISA first direct-mailed membership offers to stores' customers in October. And the Health Mart program (now with 511 stores in 26 states) is promoted every time the card is used.

So far, 3,200 cards are being used, against a goal of 10,000 cards in 18 months. Once that is reached, Health Mart may opt to insert stuffers, such as private label coupons, into the VISA billing statements and direct mail pieces.

Consumers are courted with a 13.9-percent annual rate. Many customers are expected to transfer credit balances from the store's own credit program, which would relieve the accounts receivable burden. Stores can receive payment on charges from the bank in less than a week.

Franchisees incur a 1.5- to 3.5-percent transaction fee, which is expected to be offset by reduced receivables and protection from customer default.

The banner, button, and brochure-advertised card draws consumers into the store and helps them buy more, "a classic pull rather than push" marketing program, says Kneeland.

Giant pledges RX safety Giant Foods, one of the grocery industry's most aggressive pharmacy marketers, is emphasizing its Profile prescription safety service.

Since September, the East Coast chain has advertised Profile and its Giant Discount Drug pharmacies in a campaign that quotes Giant pharmacists on how they handle drug interaction issues. It has run on television and radio and in newspapers covering the Washington, D.C. and Baltimore markets, a company spokesman said.

Pharmacists are quoted about how they've handled specific drug interaction cases in the program, which advertises Profile as a free service that uses the APhA-endorsed drug interaction database.

PHOTO : FoxMeyer's Health Mart-Visa card helps advertise the Health Mart franchise program

COPYRIGHT 1989 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning