NEW YORK -- In-store marketing is paying off for Campbell's Soup.
"In-store marketing delivers nearly a 100% increase in sales. Tying in in-store displays and feature ads gives us a 430% lift," said George Loesch, director of trade marketing for U.S. soup at Campbell Soup Co., Camden, N.J. "We see the medium as invaluable and an essential part of our marketing mix. It helps to build retail relationships. We also view in-store as the one place where we can truly reach, impact and develop relations with consumers," he said.
Loesch described Campbell's experiences with in-store marketing here at the annual Point-of-Purchase Advertising Institute's convention and exhibition. He gave an example of how in-store marketing fits into a new product launch where the objective is building awareness and trial. The key for Campbell, he said, is reducing the time frame involved with volume sales in relation to distribution. "A product took 18 weeks to hit 80% or 90% distribution, which is when we began to aggressively use in-store vehicles that promote trial, such as sampling and couponing. This creates a lag time, with sales being lost because we can't promote. "Our goal was to break this 18-week paradigm at Campbell's Soup -- which we've done -- and hit 90% distribution in eight to 10 weeks, which allows us to move the in-store promotion and subsequent sales forward." According to a study released at the convention, 70% of purchase decisions are made in supermarkets, and 74% in mass merchants. Such numbers increase the importance of in-store marketing as a tool. "In-store marketing helps us to meet brand objectives," said Loesch, "including awareness-building, trial, store displays and merchandising, converting competitive users and building brand share." He gave some results from an in-store tie-in program in September that involved Campbell's soup and bread at a major East Coast supermarket chain he declined to name. "Typical movement is 6,000 units a week," he said. "But during the promotion tying into soup, we moved 25 times more product, averaging 150,000 units in this two-week period. Results like these are a true testimonial to the effectiveness of in-store marketing." With a product such as soup, seasonality becomes critical. The company is now in the middle of the annual "soup season," he said. "The critical time to establish in-store sales is September through April. One of our largest promotions -- Soup and Sandwich -- runs at this time. It encourages store loading, which leads to pantry loading and gives us a jump on the supply side dynamics of the business. When the season starts, we are already in-store," he said. Campbell's program includes a display contest for grocery managers, national TV advertising and secondary displays in the bakery and deli departments. "It serves to establish Campbell's at a key time in the selling season and boost consumer awareness as kids and families have finished summer vacation and are heading back to school. "We also support Soup and Sandwich with additional in-store programs," he said. "Banners and signs, recipe books, coupon offers advertised on the shelf -- 'Buy 5 cans of soup and get a free loaf of bread!' -- in this case, Pepperidge Farm bread, our sister company." Loesch described another in-store event called Souper Toppers that takes place in March and April. The goal is to extend the soup buying season. Campbell typically works with the produce department for secondary, joint displays of broccoli and potatoes. A display contest, related in-store support and TV advertising are also part of the campaign. Campbell stages a Soup and Salad promotion in the summer. It ties in the produce department and prepackaged salads. In-store merchandising includes take-one pads offering discounts on produce. The goal of all these events in to "increase traffic and win the consumer," Loesch said.
According to Loesch, Campbell Soup is on the leading edge of the "Best Practices" of trade promotion, and continues to rethink its own efforts and focus in on "winning the consumer."
At the company, he is responsible for the tactical and strategic management of all soup products with regard to trade promotion planning and execution, trade spending optimization, merchandising strategies, shelving, in-store activities, customer co-marketing and economic analysis. He has been with the company for 11 years.
