In 2018, South African retailers across the board were operating in a tough economic environment. They were feeling the impact of low growth in disposable income, little job creation and tight credit conditions. So it was a brave move for Dis-Chem, which is normally a low-frequency chain of stores, to pioneer a different approach to the usual drugstore marketing mix of promotional offers and competitive pricing leading up to Christmas.
Dis-Chem decided to disrupt the market and shock its competitors with a type of campaign never seen before in South African drugstore: a short-term spend & get loyalty programme offering attractive, non-pharmacy rewards. They focused on enhancing emotional loyalty by surprising and delighting shoppers with fun and exciting shopping experiences for the whole family. With the marketing activities around Mickey’s 90th Anniversary and Disney’s strong brand values, Disney formed the perfect license to deliver on those goals. The Disney MicroPopz! programme was comprised of 16 FREE figurines including classics and favourites such as Mickey and Minnie Mouse plus heroes from Monsters, Inc, The Incredibles, Frozen and Toy Story. They offered a collectors album for purchase, with a fun board game to be played with the Disney MicroPopz!
During the programme, shoppers gained extra in-store supplier deals. The supplier collaboration deals not only saved shoppers money but also earned them an additional FREE Disney MicroPopz! figurine. Sales of participating suppliers’ products on special offer during the promotional period increased by 23% while non-participating suppliers’ products increased by only 3%.
Dis-Chem had never run a loyalty programme before or had experience with running brand campaigns before Disney's MicroPopz!. In addition, the reason for Dis-Chem to add StorePal* to the programme was the ability to control placement of marketing materials and being able to easily instruct all stores during the programme. The StorePal online dashboard, gave Dis-Chem real-time insights on store level to re-send any missing materials and re-place POS where it wasn’t optimally located.
The programme performed well and delivered on targets. BrandLoyalty and Dis-Chem discussed the reports and opportunities on a weekly basis. Dis-Chem learned that putting the product display closer to the check-out, made its stores more effective and improved the execution for better results. StorePal enabled Dis-Chem to share pictures with suppliers, which helped them selling additional collaboration packages which were included in the later weeks of the programme. Dis-Chem discovered the value of StorePal in daily operations and continues to monitor campaigns with the use of the app.
The combination of attractive rewards, knowledgeable, motivated staff and excellent in-store execution created a hugely enjoyable customer experience. As a result, Dis-Chem significantly grew penetration, sales stretch, increased frequency, and basket size. It enhanced loyalty and new shoppers through in-store excitement and online engagement in an extremely difficult and very competitive trading period.
Dis-Chem has been South Africa’s first choice in pharmacies since 1978, introducing the concept of a discount pharmacy with product categories not previously offered in South African pharmacies. Today they are the leading specialist in beauty, health and well-being. Their 160 stores offer the widest ranges in these categories and expert advice.
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