Summit Preview: Seeking Global Partners

When Walgreens executive Alex Gourlay and WSL Strategic Retail CEO Wendy Liebmann take the stage later this month at the Shopper Marketing Summit, they will stress how manufacturers need to adopt a more global perspective in their shopper marketing. According to their thesis, retailers (including Walgreens through its stake in European pharmacy retailer Alliance Boots) are expanding their worldwide footprint, and they expect brands to become global marketing partners.That means being able to adapt programs to vastly different retailer models, including in the U.S., where retailers are using flexible store formats and tailored product assortment to win over different segments of the market.Shoppers in today’s global economy are plugged into the latest trends and expect “newness” – whether in product selection or a promotional offer – every time they shop online or walk into a store.“Marketers have an opportunity to reach customers much more directly by thinking as global brands,” says Gourlay, who joined Walgreens from Boots in October 2013 and is EVP, president of customer experience and daily living. “We’re operating in an omnichannel retail environment. The growth of mobile, the Internet and social media allows consumers to be far more connected to what’s happening around the world. That informs our entire approach to building better products, marketing, merchandising and customer service.”Gourlay and Liebmann have recognized key distinctions in shopper marketing programs across the world. In markets such as the UK, Canada and Australia, for example, there is far less promotional activity around price because those shoppers don’t necessarily equate value with the best deal. In the U.S., factors such as competition from online retailers and a maturing of growth in traditional bricks-and-mortar businesses are making it increasingly difficult for almost any retailer to compete primarily on price.Thus, marketers everywhere are obliged to produce other incentives for shoppers that go beyond digital coupons or price promotions in the weekly circular. “Brands should ask themselves: How do I add value in terms of innovation or customization or social marketing?” Liebmann says. “It’s not a matter of eliminating your discount strategy. It’s about how to not think about the lowest price all the time.”Even luxury brands must constantly re-evaluate their value proposition to meet customers’ growing expectations. At its recently built flagship store in London, for example, fashion retailer Burberry now brings seasonal product to market faster and offers a selection of good/better/best merchandise (including its iconic Burberry trench coat) in custom finishes, Liebmann says. “These are lessons that can be applied to all companies.”Walgreens tries to provide value by building better experiences for shoppers through customized product selection and enhanced customer service. The company is also closely studying opportunities from its strategic partnership with Boots. Last March, Walgreens and Boots entered into a long-term partnership with the pharmaceutical company AmerisourceBergen in order to bring global scale to Walgreens healthcare programs, reduce the cost of prescription drugs and improve patient access to services. “We’re soaking up as much as we can, and we’ll share global insights and applications across the company,” says Gourlay.In general, Gourlay says that brands should align more closely with retailers as they continue to create points of differentiation through new formats, product selection and services. “Shoppers are looking for a relationship, not necessarily the lowest price,” he says.

Summit Preview: Seeking Global Partners

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