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60 BRANDS IN ELECTRONIC PAY-FOR-RESULTS PROJECT

NEW ORLEANS -- Sixty brands from 20 packaged goods marketers are taking part in a new pay-for-performance electronic marketing program designed for supermarkets. The Grocery Network System from InterAct Systems, Norwalk, Conn., consists of interactive multimedia terminals, located at the entrance to each store, that deliver targeted promotions and recipes based on actual purchase history. The network

NEW ORLEANS -- Sixty brands from 20 packaged goods marketers are taking part in a new pay-for-performance electronic marketing program designed for supermarkets. The Grocery Network System from Inter·Act Systems, Norwalk, Conn., consists of interactive multimedia terminals, located at the entrance to each store, that deliver targeted promotions and recipes based on actual purchase history. The network is now rolling out to all 103 stores in Grand Union's Southern division, following tests in 25 of the retailer's stores. Also, the company said it has signed a contract to install the network in 200 Acme supermarkets in the Philadelphia marketplace. These announcements were made here at the Food Marketing Institute's MarkeTechnics convention, where company officials gave Brand Marketing a demo on the exhibit floor. Interactive terminals are linked via wireless transmission to a store-based client server linked to the store's front-end point-of-sale system. Using the retailer's existing loyalty card program, the network tracks shopper purchase behavior at checkout, segmenting shoppers into loyal, switcher or competitive users by category. Retailers and the brand marketers taking part in the program then plan promotional strategies for each target segment and the system delivers differentiated offers to the target segments in the store at the beginning of each shopping visit. According to Catherine Amann, director of marketing services, the network is the food industry's first 100% pay-for-performance electronic marketing program. Participating brands pay only when incentives are redeemed at checkout. Because the system is linked to the store's POS scanner, the network first verifies that the correct purchase has been made and then delivers the electronic credit to the shopper via the POS. All incentives are electronically cleared at checkout.