Rite Aid 2016 Annual Report Download - page 13

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Marketing and Advertising
In fiscal 2016, marketing and advertising expense was approximately $307.8 million, which was
spent primarily on weekly circular, broadcast and digital advertising. Our marketing and advertising
activities centered primarily on the following:
• Product price promotions to draw customers to our stores;
• Our wellness + with Plenti loyalty program, which benefits members based on accumulating
wellness+ points for certain front end and prescription purchases that qualify for savings of up
to 20% off every day for a year, and Plenti point rewards to provide members additional savings
at Rite Aid and certain other Plenti partners like AT&T, ExxonMobil, Macy’s, Nationwide,
Direct Energy, Hulu and American Express;
• Emphasis on the value of our private brand products;
• Support of specific initiatives and stores, including competitor market intrusion and prescription
file buys and new and remodeled store grand openings; 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’’ positioning, we promote educational programs
focusing on specific health conditions and pharmacy and clinical services to drive brand preference
including our One Trip Refills, immunization and Quit For You smoking cessation programs. 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 February 27, 2016, we had
approximately 88,000 Retail Pharmacy segment associates: 11% were pharmacists, 43% were part-time
and 26% were represented by unions. Additionally, we have approximately 1,500 Pharmacy Services
segment associates. Associate satisfaction is critical to our success. Annually we survey our associates to
obtain feedback on various employment-related topics, including job satisfaction and their
understanding of our core values and mission.
The pharmacist shortage has eased significantly. The increase in the number of graduates from
U.S. Schools of Pharmacy is meeting our 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. Through our recently acquired 100% owned subsidiary Envision Rx, we hold a license to
conduct Medicare Part D business with CMS.
Collectively, these licenses are material to our operations.
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