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ACC News tag:s15009.gridserver.com,2010:/news//1 2010-02-16T21:15:36Z Movable Type 3.34 Strangers, Critics, Friends or Fans by Seth Godin tag:s15009.gridserver.com,2010:/news//1.29 2010-02-16T21:14:13Z 2010-02-16T21:15:36Z

The work you do when you spread the word or run an ad or invent a policy is likely aimed at one of these four groups. 1.Strangers are customers to be, but not yet 2.Critics are those that would speak ill of you, or need to be converted 3.Friends are those that might have given permission, or even buy now and then 4.Fans are members of your tribe, supporters and insiders You already know the truth: can't please all these groups at once. And you also probably realize that each of us with an idea to spread has a knee jerk default, the one we lean to without thinking. Many marketers are evangelical, focused on strangers at all costs... they'd rather convert a new customer than revisit an old one. A cubicle worker, on the other hand, might focus on no one but the boss, at the expense of broadening her platform. Before you launch anything, run down the list. How can you optimize for the group you truly care about? How much is that optimization worth? (Hint: a new true fan is worth a thousand times as much as a slightly mollified critic). Retailer Revamps Store Brand to Make It Stand Out From Competitors tag:s15009.gridserver.com,2009:/news//1.27 2009-09-08T12:58:44Z 2009-09-08T13:03:01Z

By Jeff Neff While Walmart's redesigned, repackaged and reformulated store megabrand has drawn some unflattering comparisons to those generic brands, to write it off as similar not only misses the point but underestimates its potential impact. The new Great Value is a game changer, not simply because of its size -- the brand is estimated to be larger than $10 billion -- but because its novel approach to store-brand packaging and merchandising. Great Value isn't trying to pass itself off as a clone of the brands it competes against; that bland whiteness aims to set the brand apart with a distinct look and identity. "Walmart identified an opportunity to treat our private brands more like brands," said Andrea Thomas, senior VP-private brands for the chain, noting that Great Value ultimately has to earn its place on the shelf just like the others. She said the chain made "a conscious decision to hire people who have managed big brands and apply some of the basic brand-management techniques." Ms. Thomas, who was VP-global chocolate for Hershey Foods and a veteran of Frito-Lay and Pizza Hut before coming to Walmart in 2007, said that means differentiating Great Value from other brands rather than trying to mimic them. "If you made a decision in one category [before], that equity or experience didn't transfer into any other category," she said. Great Value was "more than anything a collection of items," rather than a brand, she said. The second objective was simply to upgrade the image, she said. "We needed it to look like we cared about the quality." Publicis & Hal Riney, San Francisco, is handling advertising and marketing, but Ms. Thomas declined to disclose who was responsible for the design. Taking the lead Walmart, more often a creative follower of its retail competitors, has been a leader this time. A revamp of Target's entry-level store brand as Up & Up is hitting shelves a few months behind the new Great Value, and bears a remarkably similar plain-white resemblance. Up & Up was developed largely simultaneously rather than as an imitation of Great Value, said a person familiar with the brand's development. But the goal was similar: to make the low-price brand stand out on the shelf from its premium competitors. In Target's case, the effort also meant trying to convey more of an emotional appeal than a strictly value-based one, while simultaneously removing the cherished bulls-eye logo from cut-rate merchandise. The stark approach works for store brands with access to as much shelf space and merchandising support as they want, he said. Other marketers, which never know how much of either they'll get, have to cram as much visual impact and verbiage as possible onto their packages. The risk of Great Value is to what extent Walmart will trade consumers down from the brands that have been its bread and butter for decades, which could depress same-store sales but possibly sweeten profits and margins. Ms. Thomas declined to say whether it had that effect last quarter, when Walmart's U.S. sales came in lighter but its earnings and margins were higher than expected. The risk for Walmart suppliers is that, having taken on Great Value, Ms. Thomas will turn her attention elsewhere, such as the Equate health-and-beauty brand. "We are assessing the needs and opportunities for all the private brands," she said. How the brand stacks up If it were a stand-alone merchant, Great Value would rank as the nation's 39th-largest retailer, at an estimated $10 billion in annual sales. That's bigger than A&P, Whole Foods, Family Dollar Stores or Bed Bath & Beyond. Great Value's estimated sales are ... ■Equal to $86 from every household in the U.S. ■Nearly twice the worldwide revenue of Clorox Co. ($5.5 billion) or Hershey Co. ($5.1 billion). ■Bigger than the U.S. revenue of McDonald's Corp. ($8.1 billion) or Kellogg Co. ($7.9 billion). ■More than the U.S. sales of Amazon (about $9.6 billion). ■Close to the sales of Dollar General Corp. ($10.5 billion). ■Approaching Procter & Gamble's fiscal '09 sales to Walmart Stores (about $11.9 billion, or 15% of P&G revenue). Sources: Ad Age research, company reports, Stores magazine/Planet Retail Tips for Improving Your Retail Marketing tag:s15009.gridserver.com,2009:/news//1.26 2009-06-08T21:10:19Z 2009-06-08T21:14:36Z

Retail sector face the greatest competition in the business world. If you want to survive the competition you need to develop some marketing strategies. Good strategies are the secret behind any successful retail store. Don't get over engaged in the day-to day work to run your stores. If you don't apply new ways to improve your marketing efforts you will loose business to your competitors. So try to push forward your business on a regular basis. Think carefully about your current strategies. Are they working properly? If not, then its time for you to change your strategies. Here are a few retail marketing that will help you improve your business. Here are a few retail marketing that will help you improve your business. Go Online: Using the Internet is very important these days' as more and more people are turning online day by day. Create a website so that customers can have easy access to your products. People often don't get the time to visit a retail store physically. But if they can have access to your store from home or office off-course your chance for sell will increase. People are getting more prone to online shopping than ever. It is the most convenient way for you as well. You don't need to find new premises to expand your business. You don't need to hire more people. It will save both your time and money. Moreover Internet allows you to sell products 24x7. You can also advertise your retail store online. Do Regular Promotion: Promotion is very important for any business and retail is no exception. If you don't have a big budget, don't think of organizing a grand event. Even the smallest promotion will be of much help. Come up with innovative ideas so that you can run regular promotions. Just give a free gift with a special purchase or offer a competition entry on certain purchases. Arrange a lucky draw for your regular customers. You need to invent fresh strategies for promoting your retail store. If you can do this be sure that your customers will come back to you over and again. Make the Storefront Interesting: You may have applied thousands of strategies but no one is going come to you if your store front is not clean enough. Make it clean, simple and attractive. Change the display according to season. Keep the display up to date. Try to change the glass every 3-4 years in order to make it look new. Make the banner colorful and unique so that people can recognize it even from far away. Keeping your store bright and attractive will surely work. Ask for Customer Feed Back: This is probably one of the best marketing policies that you can follow. You may keep everything available in the market in your store. But ask your customers what they are looking for. Request their feed back on your customer service. You can ask them to give their comments in a form. Improve your customer service by helping them to select an item, teach them on new products and help them to carry heavy products. These little services will surely impress them. Experimental Marketing tag:s15009.gridserver.com,2009:/news//1.25 2009-02-11T15:19:05Z 2009-02-11T15:20:02Z

So why experiential marketing at retail? Is traditional media not sufficient for sharing experiences with customers? As media fragmentation and consumer savvy continue to rise, one element in the advertising realm that has remained intact, yet is often overlooked in terms of its communication value, is the retail store itself. The key to creating brand experiences in today's marketplace is looking at the retail store as more than a sales venue. It is an actual medium and consumer touchpoint, and must become more than just a point of distribution. This paradigm shift requires the industry to look more deeply at advertising than just exposure and reach and frequency. Marketing atretail is more than just in-store TV ads, digital signage, and POP displays. The retail venue can become the primary location for disseminating powerful branded messages. It has potential to become the brand experience venue. The goal of branding is to generate an emotional moment between a consumer and a brand. Marketing atretail can become the premier advertising opportunity to cement experiences with brands and their consumers because it is the place that consumers continue to come to and interact with. Brand experiences atretail are created by taking the essence of a brand and extending it into three-dimensional space, utilizing form and function to support the story the brand is trying to tell. This creates a custom touchpoint for a consumer experience. It is essentially creating an ad of the brand essence in 3-D form-don't call it a store, call it an ad with walls. There is one essential truth at play here: physical human beings enjoy tangible, tactile, and real experiences. Experiential marketing is about the "Sensory Experience"-communicating to the senses and allowing for the retail theater of the mind to close the deal. This closes the last loop in the brand communication chain and ensures investment in mass media is not lost at point of sale.Sponsored Link Ultimately, creating custom, brand experiences for the customer at the last and most crucial touchpoint is the goal of branding and advertising. Basically it is to generate an emotional moment between a consumer and the brand. Experiential marketing turns every touchpoint in the messaging process into a brand touchpoint, leaving an indelible impression and experience on the consumer, creating affinity, and increased likelihood for sales and customer loyalty. To get the biggest bang for out of the media budget this relationship with the customer must extended to every touchpoint. It must be planned and all Touchpoints like Mass Media, PR, marketing at-retail and even events must be integrated into the marketing mix. Shopping Decisions Made In-Store tag:s15009.gridserver.com,2008:/news//1.24 2008-10-02T15:52:22Z 2008-10-02T15:58:17Z

More than two-thirds of packaged goods shoppers make purchase decisions within the store, where they are influenced by a variety of marketing vehicles, according to a comprehensive research study conducted by OgilvyAction, New York. Based on approximately 6,800 shopper intercepts conducted across six retail channels in the U.S. in February-March 2008, the study found that 72.4% of shoppers make in-store purchase decisions at the category, brand or quantity level. And more than one-fourth of those shoppers said they noticed secondary displays before making their decisions, according to the study, which was fielded outside supermarkets, mass merchants, drugstores, warehouse clubs, convenience stores and dollar stores. The study suggests that various methods of in-store marketing have a significant impact on these purchase decisions. More importantly, the study finds that the level of in-store purchase decision varies significantly based on the product category in question and the retail channel being shopped, among other factors. That finding affirms the growing realization among marketing professionals that there is no cookie-cutter solution to effectively marketing within the retail environment. In their exit interviews, respondents were asked what types of in-store marketing "factors" they noticed before making their purchase decisions. Their responses varied significantly based on the type of decision being made: Secondary displays (identified as "off-location," meaning away from the shelf) were cited by 24% of shoppers who made impulsive category purchases, giving the tactic a higher recall level than product demonstration (18%), price promotion (17%), retailer recommendation (12%) or consumer promotion (11%). Displays were recalled by a similar 25% of shoppers deciding which brand to buy. Among these shoppers, however, all other tactics were cited more often: demonstrations were highest at 31%, followed by price (28%), recommendation (26%) and consumer promotion (27%). When determining quantity, shoppers most often remembered consumer promotion (59%), followed by retailer recommendation (58%), price (48%), demonstrations (46%) and secondary displays (36%). The results suggest that off-shelf merchandising plays a lead role in influencing true impulse purchases -- getting shoppers to buy products for which they had not planned -- while also having a major impact on brand and quantity choice. Shopper Attitudes About Displays and Signs tag:s15009.gridserver.com,2008:/news//1.23 2008-05-06T15:52:15Z 2008-05-06T16:04:34Z

Nearly two-thirds of shoppers polled in recent surveys by Mass Connections say their decision to buy products is influenced by signs and displays at least some of the time and that they are most likely to notice endcap displays. When asked how often product signs or displays attract their attention in stores, 40% of Wave 1 respondents and 27% of Wave 2 respondents said "always or almost always." Another 29% from Wave 1 and 41% from Wave 2 said "most of the time." (See chart 1.) Among Wave 2 respondents, women were much more likely than men to say they notice signs at least most of the time (73% versus 52%). Shoppers over 55 were also more apt to notice signs than younger shoppers. The most noticeable displays were located in endcap locations or in event sampling areas. (Note: the fact that sampling events were being conducted may have enhanced the prominence of related signs and displays.) Results for the remaining display locations varied across the two different survey waves, perhaps in part due to differences in how the questions were worded and tallied. (See chart 2.) Wave 2 respondents ranked the visibility of shelf displays second after endcaps, followed by P-O-P at the store's entrance, event/sampling areas, floor displays and checkout displays. Both waves ranked ceiling displays the least likely to be noticed. More than 65% of respondents purchase products because they've seen them on displays, with 29% of Wave 1 respondents saying they buy featured products "on a regular basis," compared with 15% in Wave 2. (See chart 3.) Another 50% of Wave 1 and 53% of Wave 2 respondents said they purchase products "sometimes" after seeing a product on display. The earlier nationwide survey of 802 adults ranked endcaps the most effective marketing tactic at spurring purchases among a list that also included coupons, sampling and messages on an in-store media network. (See chart 7.) Coupons, however, were rated the most effective at influencing purchases according to the three station-in-life surveys of 400 women aged 35-54, members of Generations X and Y, and parents with two or more school-age children at home. Price and whether or not the product is on sale were the most requested types of information respondents wanted to see on displays and signs, according to the Wave 2 survey. (See chart 4.) Nutritional information and recipes incorporating the product came in a distant second and third, respectively. The presence of "new and different" types of product signs and displays made the shopping experience "more enjoyable" for more than half of the respondents in both waves. (See chart 5.) Likewise, more than 40% of respondents from the surveys said they would be more likely to shop at stores that feature "fun and exciting" product signs and displays. (See chart 6.) Published: July 2006 Source: Mass Connections Trendwatch: Sustainable Packaging tag:s15009.gridserver.com,2008:/news//1.22 2008-01-18T14:48:04Z 2008-01-23T16:09:51Z

By James Peters, CPP "How can I certify that my package or P-O-P display is sustainable?" I've already heard that question in several forms as sustainability gains more importance in the packaging industry. However, the immediate answer is: "You can't certify anything as 'sustainable.'" Why not? Because, right now, no uniform definition of sustainability exists. At least two definitions have emerged so far, and that number should grow before true standards are established. One definition from the Sustainable Packaging Coalition sets the broad-brush definition of sustainability. Another is from Wal-Mart, which has developed its Sustainability Scorecard. Wal-Mart isn't touting its Scorecard as a definition, but the evaluation process it outlines goes a long way toward defining -- in practice -- what sustainable packaging is. While "sustainability" is the current buzzword, it is not a new concept for packaging. Today, however, the bar is a lot higher than it has been in the past. What is new is the emphasis that major retailers are putting on it -- as well as a small but growing number of consumers who value sustainability. From a marketer's perspective, the key point is that you can't address this issue by yourself. You need to involve the entire packaging value chain: your suppliers, your customers, your consumers. And you need to seek input from government, academic and environmental organizations that are focused on this opportunity. Sustained Momentum tag:s15009.gridserver.com,2007:/news//1.18 2007-11-02T15:11:40Z 2008-01-18T14:57:06Z

Remember when "sustainability" used to be called "recycling"? The first time the word "sustainability" shows up in the Institute's archives comes in a November 2005 cosmetics category report, which discusses the trend toward natural beauty products. The first mention of a recyclable P-O-P display dates back to July 1990, when an article about fitness brand Weider notes that the company's temporary displays were often made from recycled die-cut cardboard "despite the slightly higher cost" involved. In the first half of the 1990s, P-O-P Times covered the occasional recycling effort, mostly from environmentally friendly brands such as Patagonia and Earth Station. Activity picked up in the mid- to late '90s, with more mainstream products getting involved. (Our favorite is a 1996 display from Freestyle watches manufactured from old aluminum cans.) But the trend seems to have waned in the early part of this decade, most likely because the more pressing trend in display manufacturing was the reduction of overall costs -- and probably in part because "recycling" had no single influential champion to lead the charge: For all its noble goals about protecting the environment, the current "sustainability" drive wouldn't be happening right now if Wal-Mart hadn't made it an imperative. (Three cheers for the conversion of business profitability, public image enhancement and environmental best practices!) Of course, the corporate commitment for sustainability goes a whole lot deeper than it ever did with recycling. To address the recycling issue, P-O-P producers didn't have to investigate the feasibility of converting methane gas from nearby landfills into the energy needed to run their plants. Brand marketers never had to verify that the suppliers to their P-O-P vendors' suppliers were practicing green harvesting methods. Basically, all anyone had to do was provide materials that could go straight into the appropriate dumpster. "Marketers don't usually think in terms of utilizing the cubic space in a semi-trailer. Nor do they care about the amount of plastic resin that goes into a package. But this math is going to become fundamental to product and package development," said James Peters, education director for the Institute of Packaging Professionals, in an article we posted in January. Assuming that sustainability is not a short-term trend but the business model for the future, there is a lot of work needed in the years ahead to meet the demands of Wal-Mart and other forward-thinking companies. Some organizations are farther down the path than others (see recent activity from Gerber and Coppertone among the case studies highlighted in the sustainability gallery), but all will be learning through a gradual process of trial and error. "Can I make things 100% recycled, sustainable, reusable? Absolutely, but that comes at a price -- a price we can't afford because the materials have not come down to the level where they can be widely used," said David Curtis of The Timberland Co. in a "People to Watch" feature from the November 2006 edition of P-O-P Times. "Can I make it 30%, 40%, even 20% eco-friendly? Every little bit helps, and we do the best we can." That will be our goal here at the Institute as well. We'll track the ongoing evolution of sustainability as comprehensively as possible, and present innovative case studies and best practices whenever we can find them. As always, our efforts will be greatly enhanced by contributions from you, our members. Every little bit will help. Peter Breen Managing Director, Content In-Store Marketing Institute Working with Retailers tag:s15009.gridserver.com,2007:/news//1.16 2007-08-16T15:46:50Z 2007-08-16T15:48:30Z

To some consumer product marketers, retailers are the enemy. Rarely a day goes by when we don't hear a complaint about the process of getting P-O-P into stores. Some marketers see the whole process as adversarial and can be quite bitter about the experience; others are wistful, longing for a time when retailers were more passive and the world was a simpler place. But the world has changed. Retailers aren't the enemy, but they really aren't interested in being your buddy, either. Good marketers are realists, and they understand that by working closely with retailers, they can (dare I use the phrase?) create a "successful partnership." If that word bothers you, aim for something else: mutual respect. To gain that, you must bring your core competencies to the table: marketers must truly understand their brand, their products, and the product category; retailers must know their shoppers intimately. But simply wanting a P-O-P-focused relationship to happen doesn't make it so. Even under the best of circumstances, they require constant work. But as markets consolidate and consumers become more demanding, truly understanding customer needs and reacting quickly will mean the difference between success and failure. This special supplement examines key trends in the marketer/retailer relationship as it relates to P-O-P advertising. It looks at such issues as: Who is the key retail person to talk about displays and merchandising issues with these days? How can a marketer ensure that he or she has gotten the proper approvals from the proper people? How can a marketer work more closely with national chains and what impact do "category-killer" stores have on the design and message of the final piece? Are local and independent stores being aced out of the equation? Is there room for meeting their needs? How does "category management" affect P-O-P development, and is it the future of the marketer/retailer partnership? Special Report: Impact Packaging tag:s15009.gridserver.com,2007:/news//1.14 2007-07-03T21:14:07Z 2007-07-03T21:17:57Z

Bold colors, function, unusual shapes help packaging work where P-O-P can't It's evident there's a growing focus at retail. Brands are ramping up what they do in-store to be competitive, and with less in-store marketing at their disposal, due to clean floor policies, packaging has become a major asset. Call it "impact packaging," or anything else you like, but the bottom line is, brands have recently stepped up their shelf presentations. ]]> For some brands, that means adding bolder colors, function or unusual shapes. For others, it means creating more white space or stripping away the exterior entirely and letting the product itself do the talking. For all brands, it's the idea that packaging now has to work like P-O-P. "If somebody said to me, 'What's your best advice to somebody regarding P-O-P at Wal-Mart and Target, I'd say, 'Get your package right.' At the end of the day, that's the only thing you can really count on," says Jim Bremer, assistant vice president of graphic arts for Hasbro, Pawtucket, RI. "If you're going to be in Target, and your package isn't right, I don't know that there's a lot that can make up for that." Rest assured, packaging is not replacing P-O-P. In fact, the marketers interviewed here agreed that packaging needs to work alongside P-O-P. And the first step is getting everyone involved. Jim Peters, director of education at the Institute of Packaging Professionals and a columnist for P-O-P Times, says that to maximize shelf impact, brands need to know their shopper and their retail environment, look at the range of available tools, and manage the process internally across departments. "You need the graphic designers to be talking to the structural designers, and both of them need to be talking to the marketing people," he says. "What's going to catch the eye, and what techniques do you need to know to do it?" Dan Abramowicz, president of technology at Crown Holdings Inc., Philadelphia, which focuses on innovative metal packaging, echoes Peters' words. "In the past, it's been a more fragmented, sequential approach. We might design a package working with the package engineers, who then turn it over to marketing, who say, 'It shouldn't be this way; it should be this way,' '' he says. "What's needed and is beginning to happen is a more collaborative approach, working with marketing and design folks together." With private-label packages at times aping a brand's identity and package design, and as categories line up shelf sets with matching package shapes and looks, brands have all the more reason to break the mold. Examples of how some brands have done so follow below. Color Me Sold Rob Wallace, managing partner with Wallace Church Associates, New York, says he starts with color. "If you're trying to drive impact, if you can own a color in your category that's relevant to your brand experience, it's by far and away the best thing to do," he says. Secondly, bring your message home in one "visual unit" rather than in multiple points scattered around the package. "Take the words off and communicate through graphics and icons." In designing packaging for Lean Cuisine, Wallace Church boosted the amount of white space to create a "cleaner, more natural, more organic, more wellness-oriented" look, and the brand has grown 30% since. Lean Cuisine stands out among the sea of green boxes stacked behind the freezer door. With Apple's iPod -- simplicity as inspiration -- a clean look creates a "visual shorthand for consumers, so they can very quickly scan a shelf and find the product," Wallace says. The loudest, brightest package isn't necessarily the one that attracts the most attention, says Jerry Kathman, president and CEO of LPK, Cincinnati. "You can almost argue that in the '50s, '60s, '70s, '80s, '90s, we've played out the 'how loud is loud' game, to where that's not the way to win anymore," he says. "It might be a window box, clear carton -- [a package] that presents the brand in a way that's unexpected. Sometimes, we use the term 'shelf presence' rather than 'shelf impact' as a way of defining that sweet spot." The best way to find that sweet spot will vary by category, Kathman says. "Rest assured, the need to be noticed is in play in every aisle. But the way to be noticed changes per category. So, yes, indeed, lenticular this, and fluorescent that, and all the scream-louder-than-the-next-guy principles matter. But, increasingly, you can see that counterintuitive thinking works -- simpler, with a sense of restraint." Bringing emotion to your presentation helps to win over customers during that first moment of truth, says Kathman, who cites his company's role in restaging the Herbal Essences hair products. "You really need to understand that customer and speak to her," he says. "It's much more in tune with this young, extroverted, self-confident woman. It speaks her vernacular. The word choice, instead of 'For Curly Hair,' is 'Totally Twisted;' 'Drama Queen' instead of 'For Clean Hair.' " Simple, emotionally charged messages have been Hasbro's cue in marketing its SpongeBob SquarePants version of Monopoly as well as a game called "Mall Madness," which is aimed principally at pre-teen girls who fantasize about the day they'll be allowed to shop at the mall with their friends, Bremer says. The SpongeBob package features two lenticular eyeballs on a yellow box that resembles the character. "It has nothing to do with the product," Bremer says. "It's one of those things you can't pass without looking at it. ... Something eye-catching, pun intended. It's something that's so simple, so graphic, you don't need words to tell a story." The "Mall Madness" box works because it features a picture of three girls at the mall, which doesn't directly reflect the game, but "it captures the aspirations of girls who are 9 to 11 years old. Your parents won't let you go to the mall and hang out with your friends. ... This game lets you do that in a fantasy way. The package captures that. It's not telling you about the game. The message is visual: 'That's what I want to do some day.'" As with Wallace, Bremer takes a lesson in simplicity from iPod: Keeping white space on the box helps the product sell, he says. "When we review packaging, we tend to put it on a table and look at it in isolation," he says. "But that's not the way the retail environment works. There's usually somebody else's package touching yours on two sides. ... Keep a little breathing room on your package, and it stands out more." That negative space seemed like a positive idea to Caboodle! Toys LLC, New York, when it launched its Noah's Pals line of built-to-scale pairs of animals out of the biblical Noah's Ark story. Drawing from the minimalist look of iPod, the company used a simple color image of the product inside, says Steve King, co-founder. "Each of our boxes contains two animals," he says. "We had observed, in looking at other product packaging, that a lot of times there would be a lot of noise on the face of the product. ... We realized that to stand out, the more simplistic image might be better." The boxes convey the size of the animals and the tie to the Noah's Ark story, King says. "We toured a lot of toy stores and took pictures and tried to get a sense of what would stand out. ... A lot of the other boxed packaging, the colors tended to interfere with one another, and the product itself tended not to stand out." Frito-Lay, Plano, TX, used a simple image of a sunflower on its package to convey its switch to NuSun sunflower oil in Lay's potato chips, which reduces saturated fat by more than 50%, says Jared Dougherty, spokesman. "The new packaging not only catches the eye on store shelves, it communicates the formula change and reduction in saturated fat," he says. Shape and Function Chicago-based Wrigley's Eclipse Big-E-Pak provides gum-chewers with a 60-pellet durable container with two reclosable openings, one to pour and share and the other to serve yourself, whether at your desk, in the car, or on the move, says Brian Wright, director of communications. This idea of adding function to packaging is one way to jump off the shelf. A function acts as a purchase incentive, and so can be a licensed tie-in. Unilever, Englewood Cliffs, NJ, leverages a sponsorship tie-in with NASCAR for products that include Hellmann's Mayonnaise, Klondike ice cream bars, Country Crock spreads, Lawry's marinades and Wisk laundry soap, says Nancy Davis, shopper marketing manager. She acknowledges being "a little leery" of putting such a tie-in front and center on the package, but "we've certainly seen very positive results." "It's got to be the right packaging and, obviously, resonate with the consumer," Davis says. "You've got to make sure that the property's right. It's got to pop at the shelf. ... That doesn't mean it takes over the presence. People still know it's a jar of Hellmann's mayonnaise. You don't lose your brand equity there." The triangular shape of the Platinum 7 vodka bottle makes it "unforgettable" to anyone who's held it, says Elizabeth Cawood, brand manager for the Louisville, KY-based brand. "Don't be afraid to do something different," she says. "It takes a lot of nerve. This is a difficult package for our production team to run. You have to have the wherewithal to do something a little bit different." Pacific Wine Partners hopes to create a similarly memorable experience with its "shuttle" package that features a wine glass screwed onto the bottle. It's been introduced "in a fairly limited way" in Australia and the United Kingdom and should blast off into the U.S. later this year, says Nick Withers, marketing director. "You unscrew [the glass] and turn it upside down," he says, adding that it's intended for parties, particularly outdoor events like picnics and tailgates. Using blow-formed metal, Waistline brand soups and sauces have used a shapely, hourglass package to communicate its brand message, says Crown's Abramowicz. The blow-forming technology can expand a container up to 25 or 30%, he says, comparing it to glass blowing except that it happens at room temperature. "You always talk about the package being consistent with the brand image," he says, referring to the Waistline cans. "Here, the shape of the package really does connote low-calorie, or healthful. Imagine a bank of those cans on a shelf. It would look very different from the traditional cylinders." Graphic Packaging International Inc., Marietta, GA, has created different shapes to help a package stand out, says Charlie Brignac, marketing manager, innovation services. He cites a new package for the Hormel line of lunch meat called Natural Choices, which stands on the shelf rather than hanging on a peg. "We've seen customers moving into new shapes to create impact on the shelf," he says. "Our customers are trying to break out of that wallpaper." Zip-Pak, Manteno, IL, has created stand-up, resealable pouches for products from French's potato sticks, to Hartz birdseed, to Arm & Hammer baking soda, says Elizabeth Sheaffer, marketing manager. "Many of our consumer product companies have been going from rigid to flexible packaging," she says. "Resealable packaging does help brands stand out on store shelves." And when consumers get home, they're "then keeping that brand message in front of them. They're not putting it into another type of container." Hanover Packaging, Hanover, PA, has created transparent packaging with a formed insert for products like cosmetics that allow the product to sell itself, says Larry Chatzkel, president. "That's how we get things to market and have the carton be its own sales tool," he says. "We do a lot of graphics on our clear packaging, to have that item be very, very visible and draw attention to that item. ... The product itself is visible, rather than a secondary package having to tell the story." Impact the Shelf, not the Budget Creating impact -- or, if you prefer, presence -- on-shelf does not necessarily mean spending more. And when it does, return-on-investment generally justifies it, say brand marketers and packaging companies. With the extra budget flowing toward in-store marketing as mass advertising wanes, sometimes packaging is the best investment. "There usually is cost associated with change," says Kathman of LPK. "If your suppliers are tried-and-true, and everything's running lean, you can recommend a change. Just because there's a change, there's going to be an upcharge in total packaging costs. Sometimes, that's temporary." Bremer of Hasbro says the lenticular eyeballs on the SpongeBob box cost about an extra $1 per unit. "We made a decision here to put some of the money into the package," he says. "The reality is, how many million people walk into a Wal-Mart every week? ... There's tradeoffs. Right now, a lot of people are looking at P-O-P, and what can they do to drive product there?" Abramowicz of Crown Holdings says creating an impact often does increase costs, but his customers are increasingly willing to pay for it. "Our customers are more receptive to that than they've ever been," he says. "We're seeing brand owners ratcheting up their need for innovative packaging, their ability to stand out on-shelf." The reasons for that range from reduced effectiveness of television advertising to added pressure from private-label products, Abramowicz says. "More and more, our customers are recognizing that the right innovation will help them to achieve a larger margin, even if the cost of the package has increased slightly," he says. Graphic Packaging International produces high-end, foil-stamped or holographic packages for products like Kraft's Gourmet Favorites that cost more, Brignac says. But, for example, the Gillette Edge shaving gel with a holographic label on a tin can saw a 3 to 7% share lift this past year, he says. "The marketing department is looking at, 'If I add holographics to my package, how much lift can I expect?'" The added costs of packaging are still "a fraction of the cost" of print or TV advertising, says Keith Sachs, chairman of Sax Co. International, Horsham, PA. "It's the last opportunity you have to reach the consumer, and it's the least expensive," he says. "The unit cost for this kind of [bolder] packaging is more expensive. ... It's likely to involve a design component coupled with incremental tooling costs. But at this point, the people we're dealing with have concluded that it's well worth it." The Big-E-Pak "naturally increases cost in product, but we are seeing a strong return on investment," says Wrigley's Wright. "The overall intense breath-freshening pellet category has seen soft numbers since June of 2005; however, Eclipse, the first brand to use Big-E-Pak, has gone against the category trend and generated positive sales growth," with 4.3% lift over the year ending Jan. 27, according to A.C. Nielsen. Impact packaging can stand on its own, but it's smart to tie-in with complementary display pieces whenever possible, say brand marketers and packaging companies. "The more holistic your design franchise, the more effective," Kathman says. "Each of those pieces has its own mission. P-O-P has to be increasingly deferential to the channel and the specific retailer." Abramowicz recalls designing a new pet food can for Mars Inc.'s Sheba product that was displayed on trays featuring the same graphics and colors as the lid of the can. "We see that often, the point-of-purchase display and the package are effective when used together," he says. "We view this as a very complementary relationship." But working alongside a display piece is a luxury that not all packages have, Bremer says. "I, personally, look at it as one and the same," he says. "So often, it's so hard to get that stuff into Wal-Mart, Target and your mass merchandisers. ... It's great when you can get certain promotions going, and it's supported by a pallet or something else, but it's just the way retailing has moved in recent years." Hanover's clear packages are designed in particular for large club stores that have few displays -- but plenty of visibility, Chatzkel says. "It can work well when they're marketed together, when our clear package is in a display piece," he says. "But they're often on-shelf, on their own, in a department store, Wal-Mart or Sam's [Club]. They work really well on pallet displays. It shops itself. It allows visibility from multiple sides." Most packages that Graphic Packaging designs tie into larger marketing campaigns, Brignac says, but his company always thinks about that first moment of truth. "The general data is that the customer will take less than a second to decide if they're even going to look at a particular category," he says. "You have to get them there and get them into the information on the package. If you get them to touch the package, there's about an 80% probability that they're actually going to purchase." Published: April 2007 Source: In-Store Marketing Institute/P-O-P Times Research: Cross-Channel Shopping Study 2007 tag:s15009.gridserver.com,2007:/news//1.13 2007-06-22T16:23:31Z 2007-07-03T21:17:38Z

By Meyers Research Center Supermarkets are struggling to keep their share of shoppers as mass merchant hypermarkets, drugstores and other rivals gain in popularity for items once only purchased in more traditional trade channels, according to a new study by Meyers Research Center. The findings are part of Cross-Channel Shopping 2007, which examines the behavior, attitudes and decision-making patterns of shoppers in North America. The research was conducted as an online survey of more than 1,400 subjects, both male and female, who shop in three or more retail channels (out of 17 pre-listed choices). The survey covered background information, attitudinal measures, general shopping behaviors and changes as well as perceptions of various retail formats and retail brands. The sample was managed to reflect geography, ethnicity and affluence proportional to the U.S. population as reported by the U.S. Census Bureau, and to somewhat oversample females. "We've found that, overall, the concept of channel blurring is not a consumer issue -- it is a trade issue," explained Lois Seidl, vice president, Meyers Research Center. "Shoppers are clear on the benefits and drawbacks of the different channels and, depending on their trip mission, one or another format is preferable," she added. "It's the retailers who are waging war to attract and retain shoppers." Key findings of the study reveal how consumer behavior is shifting, particularly with respect to supermarket, supercenter, drugstore and c-store shopping. Highlights include: Drugstores are now the retail format with the highest overall penetration of the population. (See Chart A.) Supermarkets have lost some shoppers to superstores/hypermarkets, but they have also managed to increase relevance and utility among retained shoppers, who claimed to make more frequent trips. (See Chart B.) One quarter of female shoppers have not been inside a supermarket in the past 12 months. While the reach of convenience stores has declined, loyal customers visit them more frequently than those of any other channel, on average. (See Chart B.) This is partially explained by the type of products people purchase at the c-store, which include cigarettes, coffee, and other routine personal items to transition from one state to another. The purchases also tend to be single sizes. At the other extreme of the spectrum are warehouse clubs, where shoppers buying products in warehouse quantities visit with diminished frequency. (See Chart B.) Dollar stores are now in a good position to compete more vigorously against mass merchants and superstores/hypermarkets. Some consumers are learning to concentrate shopping in a smaller number of channels. In 2004, consumers utilized 5.2 out of seven general shopping formats in a 12-month period, on average. In 2006, they report making use of only 5.1 of these formats within a 12-month period. Ever so slightly, they are learning to concentrate their shopping in a smaller number of channels, opting for one-stop shopping where possible. Supermarkets, traditional mass merchants, c-stores and warehouse clubs have experience diminished penetration; drugstores, supercenters/hypermarkets and dollar stores have increased. More prevalent among exclusive supermarket shoppers is a sense that time is valuable, whereas exclusive superstore shoppers would sooner spare the time and save their coin. Cherry-picking, shopper maven and high-achiever type attitudes are found in heavier concentration among cross-channel shoppers. Just over half of all shoppers are using both supermarkets and superstores. Among those shoppers using one format exclusively, supermarkets still prevail. With lower household income than men (on average) and greater responsibility for the groceries -- not to mention busy working schedules -- women have been most attracted to the superstore's every day low pricing and one-stop shopping. Among consumers who shop at both supermarkets and superstores, visits to the supermarket are more frequent than visits to the superstore and no less frequent than those made by exclusive supermarket shoppers. This suggests that the supermarket is not invalidated or made obsolete by superstores after all. (See Chart E.) The retail amenities most shoppers prize are basic civil and social conditions rather than fancy food and upscale service. This sends a powerful message to make sure that store fundamentals do not decline as retailers pursue fleeting trends. (See Chart F.) Published: May 2007 Source: Meyers Research Center 'Recency and Relevancy' tag:s15009.gridserver.com,2007:/news//1.11 2007-05-04T13:44:24Z 2007-05-04T13:57:20Z

Our challenge as marketers has always been to develop communications that reach our target audiences with sufficient frequency to stick our messages in their heads. Unfortunately, gone are the days when we had three networks that could reach 97 percent of the population. If we used the three networks (reach) to run 12 commercials (frequency) we were all set. To be successful, both need to think in terms of a new evaluative criteria -- the "three Rs" of reach, recency and relevancy. Today, the complexity of achieving that goal is significantly more difficult. With few exceptions -- like American Idol and the Super Bowl -- it's just no longer possible to use mass media to reach consumers the way we used to. In addition, because most consumers are scattered across so many media channels, we can't expect to hit them with the kind of frequency that's needed to communicate with them effectively, either. So, the traditional media model based merely on reach and frequency is not as relevant as it was in the past. Granted, reach still matters because ultimately we need our messages to hit home with as many consumers as possible. But it's a significantly different challenge to generate reach -- not through a handful of mass media but through literally hundreds of media alternatives. Frequency, meanwhile, has been replaced by the one-two punch of recency and relevancy. Effective communications is no longer a simple matter of repetition but rather a more sophisticated approach that's designed to ensure that your message reaches consumers when and where it is most helpful to them, with a message that is relevant to their decision-making process in a specific shopping venue. In today's hypercompetitive environment, that means providing the most relevant message when and where the consumer is ready to buy. The same principle applies whether the consumer is shopping for a highly considered product like a plasmascreen television or a lower-consideration product like a bottle of detergent. In both cases, you've got to understand your targets and what kind of messaging about your brand is most relevant at the closest point to their purchasing decisions. The point, under these circumstances, is that media effectiveness is no longer about "consumer reach" away from the point of decision. It is success with shoppers that will make-or-break your brands. If getting a measurable return on marketing investments is truly as important as we say it is, it's only logical that we bring more marketing horsepower to bear where decisions and transactions happen. For marketing communication planning today and in the future, both a new approach and evaluative criteria are needed. That's why more and more marketers are trying to understand how to close the loop in-store, to translate the brand relevancy message they are communicating with traditional media to the place where most brand decisions are made. The good news is, you can still achieve reach at retail. While only a segment of the population watches any given television program, everybody goes to the store. The even better news is that technology is helping marketers make the most of those shopping trips, with new and increasingly compelling communication innovations being delivered in stores. In particular, RFID technology is being applied to deliver a brand message at the exact right time and place to engage the shopper with your message. Merely re-purposing out-of-store media is not the answer. The new in-store media instead provides an opportunity to communicate relevancy as never before. In-store television is striving to deliver relevant content. Interactive shopping carts are being developed so that the shopper can now download shopping lists, and scan and bag right at the cart and avoid long checkout lines. The goal is to provide a new medium that provides a true value-add to the shopping experience, and tools that help engage the shopper. Once engaged, messaging relevance is a side benefit. The key is to take the time to understand which messages drive the greatest results, and where. For example, is it more relevant to deliver a soft drink message in the CSD aisle, or in the salty snack aisle? Nabisco tell us they are stymied by cookie "aisle avoidance." Well, why not deliver the message for Oreos, "Milk's Favorite Cookie," in the dairy department in front of the milk? It's standard operating procedure to introduce new products with in-store and out-of-store price promotions. If the new product has a legitimate reason for being, why not kill the price offer, and instead deliver a relevant message in store right at the shelf? Why not remind them of why they need to buy, make them aware of interesting new items and make special offers? Let's do it at the exact right location that drives the greatest return-on-investment. The opportunities at retail also promise to finally put retailers and manufacturers on the same page as never before. Just as manufacturers care about connecting with their consumers, retailers care about connecting with their shoppers. As the population ages, for example, people are more concerned about healthier products. Or, they've got disease states -- like diabetes -- where shoppers need information to make smarter purchasing decisions. The bottom line is the retail environment, which is closest to the purchase decision, is critical to brand success today. That's true no matter what your brand is. In-store has become a dynamic medium that enables marketers to deliver against the new evaluative criteria of delivering reach, recency and relevancy. Both brand marketers and retailers need to evaluate their marketing communications plans very differently than in the past. We hear about integration, about multiple touch-points and we hear about "one voice." Everybody's talking about that. But that's basically missing the point because that conversation is really only about reach. To be successful, both need to think in terms of a new evaluative criteria -- the "three Rs" of reach, recency and relevancy. Jon Kramer is chief marketing officer of MediaCart Holdings, a retail-marketing media company. Previously, Jon was president of integrated marketing services for EMAK Worldwide and ceo of J. Brown Agency. Published: April 2007 Source: The Hub Quality tag:s15009.gridserver.com,2007:/news//1.10 2007-05-01T14:17:37Z 2007-05-04T13:58:27Z

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