Rite Aid 2012 Annual Report Download - page 9
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Marketing and Advertising
In fiscal 2012, marketing and advertising expense was approximately $369.4 million, which was
spent primarily on weekly circular advertising. Our marketing and advertising activities centered
primarily on the following:
• Product price promotions to draw customers to our stores;
• Our wellness + loyalty program, which benefits members based on accumulating points for
certain front end and prescription purchases, and offers + UP rewards to provide members
additional savings;
• Our value plus concept pilot stores offer our customers specific shopping experiences and high
value products in addition to those found in a traditional drug store;
• Emphasis on the value of our private brand products;
• Support of specific initiatives and stores, including competitor market intrusion and prescription
file buys; and
• Our vision to be the customer’s first choice for health and wellness products, services and
information.
Under the umbrella of our ‘‘With Us It’s Personal’’ brand positioning, we promote educational
programs focusing on specific health conditions and incentives for patients to transfer their
prescriptions to Rite Aid. We are also emphasizing our automated courtesy refill service. We believe all
of these programs will help us improve customer satisfaction and grow profitable sales.
Associates
We believe that our relationships with our associates are good. As of March 3, 2012, we had
approximately 90,000 associates: 12% were pharmacists, 43% were part-time and 26% were represented
by unions. Associate satisfaction is critical to the success of our strategy. We have surveyed our
associates to obtain feedback on various employment-related topics, including job satisfaction and their
understanding of our core values and mission. We have also instituted an internal group, consisting of
managers and staff from all components of our business that is responsible for using feedback from
associates throughout the Company to create a better work environment.
The pharmacist shortage has eased significantly. The increase in the number of graduates from
U.S. Schools of Pharmacy is starting to meet the workforce demand. However, pharmacist employment
opportunities still exist in certain areas.
Research and Development
We do not make significant expenditures for research and development.
Licenses, Trademarks and Patents
The Rite Aid name is our most significant trademark and the most important factor in marketing
our stores and private brand products. We hold licenses to sell beer, wine and liquor, cigarettes and
lottery tickets. As part of our strategic alliance with GNC, we have a license to operate GNC ‘‘stores-
within-Rite Aid-stores.’’ We also hold licenses to operate our pharmacies and our distribution facilities.
Collectively, these licenses are material to our operations.
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