Mind the gender price gap

PRICING: SAME FOR MEN AND WOMEN?

 

Last year, price policies made headlines with disclosures that functionally equivalent products like razors and blades were priced higher for women than for men. Boots took action within weeks, reviewing its pricing with and making changes, with the statement:

This review has reassured us that for Boots own brands the two reported examples, Boots disposable razors and Botanics eye roll-on, are indeed exceptional cases which do not completely meet our principles and we are taking action to correct these prices.

Now Tesco has also changed its pricing so razors cost the same for men as for women. It said: '...following an internal review and discussions with our suppliers, we have acted on concerns about the difference in price of our female and male disposable twin-blade razors, in line with our commitment to ensure consistently low, simple and affordable pricing.'

In 2017, more retailers are likely to follow this model and eliminate the gender price gap (sometimes known as the pink tax) so that functionally equivalent products are priced the same, regardless of whether the target market is male or female. But this same pricing trend is not as widespread among hair stylists. How many other product categories will move toward gender-neutral pricing in 2017?

Product lifecycle sustainability

Simply put, product lifecycle sustainability refers to having sustainability 'built into' every phase of the product lifecycle, from the original product concept to raw materials to production, distribution, consumption and eventual disposal. Above is the award-winning Boots product sustainability cycle, showing how the company takes ecological factors into consideration throughout the lifecycle of the product.

Tech products represent a special sustainability challenge because of concerns over rare earth metals used in their manufacture. Europe and individual countries have regulations requiring special recycling for electronics products. Apple has its own recycling programme; some PC makers participate in group recycling efforts that comply with EU regulations.

Another issue is understanding the ecological impact of a product. Stonyfield Farm, which markets yoghurts, is taking a high-tech approach here by using software to measure the carbon footprint across every phase of the lifecycle. This becomes the basis for goals to reduce carbon emissions.

Walmart, along with other consumer products companies, has been working on a sustainability index that will show the ecological impact of products. The retailer is also urging PC manufacturers to set their systems to 'sleep' more quickly, which will save energy.

As more stakeholders inquire about product lifecycle sustainability, more marketers are likely to invest time and money in this issue.

What about Walgreens buying into Boots?

Walgreens, a US-based retailer, has invested heavily in Boots, with an option to merge the two chemist chains by 2015. Walgreens operates 8,200 stores and enjoys a 20% share of the US retail pharmaceutical prescription market, filling 819 million prescriptions every year. (Compare that market share to 2003, when Walgreens had just 13% of the US market.)

Its roots date back to 1901, and it wants to continue its financial growth through expansion outside the 50 states.

By spending £4.3bn for a 45% ownership position in Boots, Walgreens hopes to not only increase turnover but also move more decisively into the European market via Boots' operations.

Both businesses have strong store-label brands and good store locations. What changes will occur if Walgreens and Boots merge in 2015? How will customers react to the combined company?

Boots vs Superdrug

The Guardian has started a new series, looking at two rival retailers along the same street or in the same shopping center. The point is to see how they're differentiated and what each does best for its customers.

The first matchup in this series is Boots versus Superdrug, high street merchants that sell health products, beauty products and pharmaceuticals.

The Guardian points out that Boots has a loyalty card (very good for rewarding repeat purchases) and convenient in-store kiosks for instant ordering of digital photos. The chain's private brand products were another plus.

Superdrug, as the Guardian notes, also has a loyalty card (with a mirror on it), a fresh decor and plenty of employees to assist customers. In this first matchup, the paper puts Boots slightly ahead of Superdrug, in part because Boots appears to have a wider range of merchandise.

Now for a brief bit of marketing background on these two chains.

The first Superdrug opened in 1966, and today the chain has more than 900 stores, although most have no pharmacy. Want to interact with Superdrug? Try Facebook, YouTube, Twitter and the company's own blog.

Boots has a long history, starting in the late 19th century. These days, it has nearly 2,500 stores and a thriving private-brand business for beauty products. You can keep up-to-date with Boots on Facebook or visit its YouTube channel.