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B.C.'s m o s t l o v e d B r a n d s May 2014 BCBusiness 33 London Drugs, which turns 70 next year, thrives by breaking the rules. Since its early days as a lone Vancouver phar- macy, the company has branched out into products and services that were previously unthinkable for a drugstore chain. From laptops to lipstick, it packs a dizzying array of goods into its rela- tively small locations, bucking the trend toward specialty retail. The chain has held its own against bigger rivals such as Shoppers Drug Mart Corp. and Wal- Mart Stores Inc. by winning customers' confidence with a long-term strategy based on good selection, fair prices and strong service. London Drugs has an advantage because as a health-care provider, it can build lifelong trust with people, says Clint Mahlman, the company's executive vice-presi- dent and COO. But the same goes for some- one buying a $1.99 pencil, he stresses at a coffee shop in Van- couver's f i na ncia l district. "It's not about the pencil when you're dealing with the cus- tomer; it's about the lifetime value of that customer to us," says the soft-spoken Mahl- man, who started at London Drugs as a part-time stockperson in 1984 and recently took over from for- mer president and CEO Wynne Powell. (Brandt Louie is now chair, president and CEO of London Drugs and its pri- vately held owner, H.Y. Louie Co. Ltd.) "If someone's upset or needs some TLC that is disproportionate to the purchase, that's okay." Mahlman says he often hears about staff making home deliveries, "not because we have a delivery service, but because of that 80-plus-year-old senior who is sick and someone at the store decides that after work, they will per- sonally drop off the products the cus- tomer needs." London Drugs reminds staff that there's a bit of theatre to retail, says Mahlman. "Internally, we call it 'shop- ping upgraded.' We have to do every- thing we can to try and make customers' experience when they come in feel different or upgraded relative to our competition." Describing the company's stores as a collection of specialty services under one roof, Mahlman points to London Drugs' Photolab, where technicians work with customers to create gifts and other customized products. He also highlights the "learning labs" that have been introduced at some new locations: "Given we do so much customer edu- cation and free seminars, [on subjects ranging] from health to computers, we created a classroom environment." London Drugs must be unique and authentic in a sea of sameness, says Mahlman: "If it's a product that requires knowledge, the chances are very high that the product knowledge is going to be there with our team." The company host s a n a n nua l education confer- ence for vendors and management, he notes, where staff learn firsthand about product details so they can fully under- stand how those goods will work for the customer. For Ma h l m a n, being the first to offer new products is another part of the trust equation. London Drugs' buyers travel the world to find unique goods that offer the best value, he says. "They are not looking for what's hot; they are looking for what's going to be hot. In many cases, a product will be on London Drugs' shelves four to five months before our competition." The company also constantly listens, he says, citing London Drugs' use of social media (especially on Facebook and its Nerd blog) as an example. "We don't think of social media as a way of pushing offers to customers," he says. "We con- tinue to let them tell us what they want and do our best to grow our social media presence around their needs." BCBusIness.Ca Software: InDesign Version: CS5.0 K Y M C Prod Mgr.: Acct Exec.: Art Director: Copywriter: Operator: P151C Cool Gray 11U DIELINE DIELINE CREATION DATE: 11/29/13 MODIFICATION DATE: January 20, 2014 1:40 PM OUTPUT DATE: 01/20/14 CLIENT: CMABC DESCRIPTION: BC Business Ad FILE NAME: CPU346_BCBusinessAd_7.1875x10.0625_V2.indd TRIM: 8.125˝ x 10.8125˝ SAFTY: .5˝ in from Trim BLEED: .25˝ IMAGE INFO: 300 dpi NOTES: Watershed Communications Group Suit 203-1226 Hamilton Street Vancouver, BC V6B 2 S8 Time to release your potential. goCPAbc.ca Put the fire back into your career with CPA. Incorporating the very best of CA, CMA, and CGA, there's never been a program so complete and so respected. If you have an undergraduate degree in any discipline, and are ready to take things to the next level, then you're ready for CPA. Learn about the ultimate in career advancement today by signing up for an info session near you. YOU PUT YOUR CAREER ON HOLD. Love is in the Air We see them, use them, shop with them every day. But what makes B.C.'s most loved brands tick? W ho's got the love? Well, according to a recent survey conducted by Ipsos in partnership with BCBusiness, iconic retailer London Drugs comes out on top as B.C.'s most loved brand for 2014—not for doing any one thing brilliantly, but by being very good at a slew of things. "On the surface, the London Drugs business model defies all logic and business reasoning," says Michael Rodenburgh, executive vice-president with Ipsos in West- ern Canada. "But all businesses can succeed if you are good at what you do and engender a strong, trusted relationship with consumers." B.C.'s Most Loved Brands (rank and score) 1. London Drugs (182) 2. WestJet (166) 3. save-on-Foods (165) 4. White spot (149) 5. sun-Rype (143) 6. Vancouver Canucks (141) 7. BC Hydro (140) 8. The Keg (138) 9. BCaa (134) 10. Chevron (131) Just shy of 1,600 British Columbia adults were surveyed between January 7 and January 19 this year. Ipsos asked respondents a series of questions about 65 "consumer-facing" brands that fell into at least one of the following categories: (continued on page 36) Mahlman says the company constantly listens, citing London Drugs' use of social media (especially on Facebook and its nerd blog) as an example. "We don't think of social media as a way of pushing offers to customers," he says (continued on page 34) p30-37_BestBrands_may.indd 33 2014-04-09 3:13 PM