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Non-Tech : Rite-AID (RAD) Overdone or Done In?
RAD 0.6480.0%Oct 16 5:00 PM EST

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To: Marty Rubin who wrote (647)2/3/2002 12:56:47 PM
From: Marty Rubin   of 700
 
Marketing on West Coast (Patrolcar and MartyLA), why I believe west was neglected:

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Re: PC4:
by: patrolcar4 01/29/02 01:20 am
Msg: 109458 of 109816

Regarding you comment, "They tried with tv ads and a 20 dollar coupon. So far that does not work."<br><br>I believe it worked in advertsed locations. company said that sales on east coast was strong while west weak.>>>>

Just because historically the west coast has under-performed the east does not mean the coupon program worked in the east. The coupon program was proped up by radio and print ads throughout the chain. Including the west coast.
But my supposition that the coupon program would fail was validated by the chief financial officer at the q-2 conference. He was asked about the results and he answered that the results were negligible.
Historically these type of coupons have not worked.
rAD IN THE Q-2 CONFERNCE VALIDATED THIS OBSERVATION.

Not making a significant dent in the 4 bil debt I do not feel is a non issue. IF RAD maintains 8 percent sss they will be losing market share to others. 8 percent is nothing to be happy about if you also have 4 bil debt weighing you down. Treading water with that 4 bil weight around your leg will eventually lead to drowning. To get to EBITDA approaching others in the industry rad will need to get alot more sales. 8 percent sss with 62 percent of their sales having an inflation rate of 8 percent built in.....is not impressive at all.

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______________Reply to above Post:

Re: PC4:
by: MartyLA (M/Los Angeles) 01/29/02 09:31 am
Msg: 109461 of 109816

I didn't see these coupons, but have seen a ralphs' supermarket (biggest in ca)' $10 coupon. I haven't seen a RAD TV ad in CA, but have seen plenty by Sav-On, which was bought by Albertson's not long ago. I haven't seen RAD's weekly flyer, but I have seen plenty by its competitors.

bottomline: I don't belive in coupons nor heavy TV adverising, but do believe that marketing is at issue and it could be fixed if they paid more attention to the west coast. i gave them my opinion on this issue and if they take care of it then walla.

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