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BRANDING BEEF

PORTLAND, Ore. -- The surging popularity of creating identities for items like produce and dairy has had an effect on the meat case as well, where steaks and chops have been given names that bolster the retailer's profile -- and boost profits as well.Meats sold by Sentry Supermarkets, a 37-unit independent chain based here, found their identity following the integration of the retailer's Sentry Signature

PORTLAND, Ore. -- The surging popularity of creating identities for items like produce and dairy has had an effect on the meat case as well, where steaks and chops have been given names that bolster the retailer's profile -- and boost profits as well.

Meats sold by Sentry Supermarkets, a 37-unit independent chain based here, found their identity following the integration of the retailer's Sentry Signature Beef line last April.

"Coining an identity is crucial, because you're after the remaining meat sales in your marketplace," said Doug Walter, meat director for Sentry. "[Consumers] are looking for that value-added identity that goes with the product."

Branding a meat case doesn't necessarily mean an automatic increase in sales, but it is a valuable tool in fighting off competition from the large chains, who have their own labels.

In this case, there is heightened competition posed by Boise, Idaho-based Albertson's and Bellevue, Wash.-based Quality Food Centers. Against these heavyweights, Sentry views its brand program as the necessary tool for maintaining its slice of the retail pie.

"There are more grocery stores coming in here than there is population," said Walter. "We ran as a chain about 2% over sales for the prior year, which I think is pretty good considering how many new players entered our marketplace.

"What's happening is that the chains are just there to squeeze independents completely out. It's been a real trying year. Our survival depends on doing some of the things that we're currently doing with produce and meat," he added.

Prior to the establishment of the meat program, the chain carried basic cuts of beef. Now, under a co-op agreement with its supplier, Portland, Ore.-based United Grocers, the chain exclusively merchandises its Sentry Signature Beef line.

According to Walter, Sentry worked with a local advertising agency to assist in developing point-of-purchase materials. Together, they designed a logo, a program-descriptive brochure, case dividers and danglers to hang over the meat case. Other signage included customer-oriented posters that reinforced the quality message.

"It's a program that has been pretty successful for us," he said. "When you get behind something that in-depth, it works."

In addition to a point-of-purchase blitz, Sentry also heavily advertised the new line in its weekly fliers, he said.

"We went from an eight-page tab to a 12-page tab full-color," he said. "We put [the Sentry line] exclusively on the front page, with a theme that tied with bag stuffers at the front end."

Since the intensive, eight-week inaugural campaign, the retailer has continued to run block ads in its weekly fliers, further building upon the brand's identity, he said. He noted that all the ads contain a common element -- a star burst signed with the phrase, "Mid-West Grain-Fed Beef," referring to the cattle's finishing diet of corn-rich grain.

"Basically, that's how we are going to market it at this point in time," he said.

After the introduction, Sentry experimented with a buy-one, get- one-free offer centered around its New York steaks. Walter said the offer was presented to customers through 5-inch by 7-inch cards distributed through a targeted mailing. He said the offer became a hit among customers and allowed the value of the signature line to shine through.

"The customer had to bring the coupon in and sign it, which really reinforced the signature part of the signature beef program," said Walter, who may consider running a similar offer in the future.

Walter also said that this continued reinforcement of the brand program has already had a positive effect on consumers. He cited one example where a customer refused to purchase a package of meat due to the missing Sentry-brand label.

"The customer told the butcher they couldn't take [the package of meat] because it wasn't grain-fed or signature beef," he recalled.

According to Don Sheeley, marketing director of perishables for United Grocers, retailers like Sentry have gone into the branding business hoping it will significantly set them apart from their competition.

"The reason [retailers] went into this branded program is because they're trying to get themselves out of the commodity business," said Sheeley. "If you see T-bones advertised, a T-bone is a T-bone unless you put a brand on it, like grocery products."

Traditionally, the suppliers' role was limited to finding "commodity" items with a sharp focus on price. Now, retailers are also turning to suppliers for help in building promotional and marketing strategies around the products, he said.

Currently, United Grocers supplies branded beef products to a number of chains in its cooperative, including 38-unit Thiftway and the 65-unit Select Stores chain, both based in Portland, Ore. He said that retailers like Sentry have found branding to be a viable way to increase the profile of the chain.

"A customer buys a can of beans because they want that brand, but they can buy the same brand at another store down the road," he said. "They can't get Sentry Signature Beef at any store down the road."

Sheeley said that any retailer looking to brand the meat department must first find reliable suppliers that can guarantee a certain level of quality and uniformity. The cattle for Sentry's beef are finished on grain, primarily corn.

"Some plants in the United States we won't go to, because they can't meet the strict feed standards that we want," he said, regarding United's responsibility as the supplier of branded meat items.

Because of the need for close supplier-retailer relationships, Sheeley said, such programs are best suited to smaller retailers, since they are able to control consistency.

"If they're too big a chain, then they can't guarantee where their beef comes from because of supply restrictions," he explained. "Obviously, you can't buy and supply a big conglomerate like an Albertson's because you have to pull from all over the U.S. With us, we can control which plants we buy from."

By retaining control over its product, Sentry can leverage its selling strategy to the maximum benefit, said Sheeley.

"They have a trademark and they have a story to tell about their beef," he said. "Here's what it is, here's who we buy from, here's why we do it."

Beef is not the only meat to be branded under the Sentry label. A signature pork line developed by Dakota City, Neb.-based IBP Inc. and trademarked by United Grocers has been dubbed Perfect Pork.

"There are a lot of enhancements coming that [promise] to drive some sales in the meat department," said Walter.

Further boosting the Sentry brand name, the retailer is also in the process of branding its produce department. That is expected to kick off in May, said Walter.

Sentry is also working on a signature service program in which the retailer plans to develop a trademark for some of the services it offers, he explained.

"It's still in its infancy, but we would be doing something that chains are not doing," he said. "We're going that extra mile."