Duane Reade Hearts New York

New York -- Duane Reade's recent expansion of its private-label products, as well as a new loyalty program, are two vehicles the drugstore chain is using to build a stronger relationship with its New York shoppers. The company (now owned by Deerfield, Ill.-based Walgreens and operating more than 250 stores in New York City) began revamping its brand about two years ago. A variety of techniques -- from informally talking to customers in stores to a 1,200-person quantitative program -- were employed to gather shopper data. Findings showed that while Duane Reade was very much a part of life in NYC, it was mostly functional, not so much emotional. "And the emotion that was there," explains Joe Jackman, acting chief marketing officer, "wasn't always positive."Consumers, he says, are looking for value, but that isn't only price. "Value [to consumers] meant things I can't find elsewhere: promotional events, celebrations within the store, and ways to delight my friends and family." As one focus group participant said of the store, according to Jackman, "You are my daily living partner and you can be so much more in that regard. It's about how I look, how I feel and what I need now." Today, everything the brand does -- be it stores, products or communications -- must fall under the strategies of "easy, value, rewarding and uniquely New York."Duane Reade is attempting to reach out to New Yorkers through multiple initiatives, beginning with an expanded store-brand offering, new loyalty card program, the Duane Reader (a twice-a-year publication), designing new stores and remodeling old ones. New York-based CBX Strategic Branding designed the private-label brand imagery and packaging and helped with the loyalty card collateral material as well as the Duane Reader.A line of premium foods, DR Delish, launched in September 2009 with juices, teas, trail mix, cookies and other snacks. Premium coffees and more were added in late 2009. In February, DR Delish fresh food, ready-to-eat and frozen food offerings debuted at the company's new Chelsea location. Based on demographics and demand, these offerings may become available at other stores. Natural and organic items -- organic lollipops, maple-leaf crËme cookies, gluten-free ginger snaps and more -- were added to the line in April.The black-and-white DR Delish packaging features New York-themed photography, such as a theatrical spotlight shining on chocolate chip cookies and cashews sitting on bar stools and park benches.The Apt. 5 private brand (formerly used for cosmetics accessories) was repositioned as a household line since the name was found to have high brand awareness and resonated with shoppers. Products, in fashionable colors and patterns (think leopard print broom handles), are designed with small apartments and minimal closet space in mind. In April, sub-brand Apt. 5 Goes Green launched with eco-friendly products.Cosmetics line Prevail debuted in May and includes nail polish, lotions and exfoliators. Other private brand changes include DR, a line of health and beauty products, formerly under the Duane Reade label; and a value line with such items as bottled water, milk and toilet paper. On the value line, UPC-style illustrations include such New York landmarks as the Statue of Liberty and Brooklyn Bridge.Jackman says no testing was done with packaging prior to the rollout. While there is in-store support for the private-brand lines, the big push comes from the Duane Reader. A 20-page "magalogue," it debuted in November and includes product news plus tips, hints and historical notes about New York City.In January, the new loyalty card program, Duane Reade FlexRewards, launched replacing the old program. The company is also active on Facebook and Twitter and has teamed up with Princeton, N.J.-based JagTag for a digital campaign. Ads are placed throughout the city on phone kiosks, bar napkins and street decals. Interested consumers can take a picture of the ad and e-mail or text it to receive a message and the Duane Reader.

Duane Reade Hearts New York

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