COUPON VEHICLES SET FOR PHARMACIES

PAT NATSCHKE LENIUS

A new way to reach consumers with coupons for health care products will be picking up steam this year. Health Resource Publishing Co., St. Louis, and HealthCare Data Corp., North Kingstown, R.I., are now expanding distribution in retail pharmacies for their newsletters that contain coupons. When consumers fill a prescription, they trigger a targeted newsletter at checkout. HealthCare Data offers Medi-Link, a single-page "patient education" sheet containing pre-programmed manufacturer-sponsored coupons printed on a laser-imaged document that works with the pharmacy computer. The Point-Of-Care coupons generated are for companion over-the-counter products targeted to the specific prescription dispensed, based on the national drug code. Laser-printed receipts, prescription and warning labels can be included on the document.

Health Resource Publishing, a subsidiary of Catalina Marketing, St. Petersburg, Fla., offers pharmacies a newsletter with relevant editorial content and advertising based on the national drug code of the prescription dispensed.

The newsletter may include a compliance message from the product manufacturer, a switching message from the manufacturer of a competitive product or an article regarding disease state therapy or condition. It can include two to four coupons also targeted to the prescription, said Michael McClorey, president of Health Resource Publishing. For example, a prescription related to the treatment of diabetes may trigger coupons for test strips, blood glucose monitoring kits and sugar-free candies, he said.

The Medi-Link program has been tested in selected stores operated by Wakefern Food Corp., Elizabeth, N.J. Expansion of the program to additional units has not yet been decided.

Tests of the program in Drug Emporium outlets have been completed, and a national rollout is expected this month, said Robin Foote, president of HealthCare Data. He said tests are under way with Edwards Super Food Stores, Windsor Locks, Conn., and Vons Cos., Arcadia, Calif., as well as in the following drug chains: Brook's Maxi Drug, the Florida division of Eckerd Drug, Snyder Drug in Minneapolis and May's Drug in Oklahoma. "About 100 stores currently have our system installed. We hope to have in excess of 1,500 stores installed by the end of 1996. This program is available nationally," said Foote.

Health Resource Publishing is working with more than 15 chains across the United States. Among the retailers it has signed contracts with are Kroger in Cincinnati and Columbus, Ohio; Vons, Arcadia, Calif.; A&P, Montvale, N.J.; Pathmark Stores, Woodbridge, N.J.; and drug chains such as Genovese, Harco, Phar-Mor, Rite Aid and Super D.

"We are currently live in about 60 stores. We want to install our program in 1,000 stores nationally this year. We have contracts covering about 1,300 installations," he said.

Among the major manufacturers who have contracted for coupons with HealthCare Data's Medi-Link program are McNeil Consumer Products, Johnson & Johnson Personal Care and Consumer Products, LifeScan, Allergan, Neutrogena and SmithKline Beecham. A test is also under way with Johnson & Johnson/Merck Consumer Products, according to Foote.

Currently, more than 60 major brands and categories are covered in the coupon program, but it could accommodate at least 100 brands, he said.

McClorey of Health Resource Publishing said, "Our initial test program included twice as many product categories as originally projected and was supported by packaged goods manufacturers such as Johnson & Johnson, Marion Merrell Dow, Andrew Jergens Co. and Mead Johnson. At this time we have about 30 different manufacturers participating."

Both companies are planning to enhance their programs this year.

HealthCare Data expects to begin testing Compliance-Link, a new promotional module for Medi-Link users, this month, Foote said. It focuses primarily on prescription drug compliance, market share and patient education promotions. Manufacturer-sponsored compliance promotions would provide incentives to patients to take their medications properly and continue with their prescribed regimen. The incentives might include dollar-off savings on the next refill, offers of free enrollment in a patient care/education newsletter service, or dollar-off savings for conversion within the same brand to new dose forms. Other possible applications of Compliance-Link are manufacturer-sponsored compliance promotions that provide incentives to switch brands, and manufacturer-sponsored educational newsletters that focus on disease state and condition management.

"As opposed to a newsletter, this produces a companion full-page ad, with completely customized text and graphics for patient information. It is virtually unlimited in format and content," Foote said. It can motivate the patient to consult with his doctor or the pharmacist about treatment or prescription options, he added.

Health Resource Publishing plans to enhance the "trigger opportunity" available to advertisers sometime this year, according to McClorey.

"We currently trigger off the national drug code, but within the next year we plan to trigger off the gender and age of the payer, whoever is paying the bill for the prescription. The message can be altered depending on that information. A cash payer may get a different message, compared with a member of a particular health plan or organization," he said.