J&J, Wakefern program takes new approach

A new, dynamic diabetes-centric set co-created by Johnson & Johnson and Wakefern has the potential to generate $1,000 in incremental dollars for every new diabetes customer captured by Wakerfern’s ShopRite stores, the companies revealed recently at the GMDC Health Beauty Wellness 2015 conference in Phoenix. And that growing niche consumer base represents a market basket five times larger than their nondiabetic peers.

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That’s real opportunity that goes well beyond the simple blocking and tackling of slotting inches into a planogram and clearing turn hurdles. “We used to think very different,” noted Chris Skyers, VP health and beauty care at Wakefern Food. “We looked at the portfolio, we had 700 items and we went year to year [determining] how to recycle events,” he said.



And the opportunity is in creating a bridge between those 700 items and the pharmacist.



“As we start to look at all these [health] trends and what they’re doing, and how it’s pushing people into new spaces, that’s where we all have a new opportunity to start to deliver differently,” added Chris Jobes, director of health and wellness at J&J. “Enter the era that’s being called the ‘consumerism of health care.’ So many changes are happening, we’re thinking about it differently.”



There’s a lot of benefit linking the pharmacist to the front end, Jobes said. “[As many as] 29% of people who engage with an in-store professional add an OTC to their basket. That’s step one,” he said. “But it also translates to the entire store — 59% have an incremental item in the basket.”



There are 29.1 million people with diabetes, and it’s a niche that’s growing fast. Currently, at least 1-out-of-3 people will develop diabetes in their lifetime. The cost associated with managing diabetes represents 7% of total U.S. healthcare costs, with $176 billion in direct costs.



“This work is helping us increase adherence, improve conversion, expand the market basket and set the stage for that engagement. Huge opportunity,” Jobes said.

“The healthcare landscape is drastically changing, with skyrocketing costs, and all of us have a great opportunity to drive the market differently, to change patient behavior for better health-and-wellness choices,” Jobes added. “The consumer patient is helping swing the pendulum. We can help them change behavior, change mentality and stimulate a better healthcare culture.”



“We must look at this new era holistically, in an environment that puts the patient and consumer first,” Skyers said. “We must find better ways to take care of our communities and rethink how retailers and wholesalers work in this new culture, and we must pull healthcare providers further into the loop.”