MONTREAL (FNS) -- With most of the country gripped in the claws of winter for four months of the year, summer promotions are an integral part of the sales equation north of the border.
For many grocers, a tie-in with a major summer event is a key ingredient in their marketing plans. Last summer, a stopover in Halifax, Nova Scotia, by the Tall Ships proved to be a promotional bonanza for Sobeys stores, according to John Keizer, vice president, corporate affairs.
"We like to look at major events that speak to our three publics, namely our customers, employees and food vendors, and the Tall Ships was ideal."
More than 100 Tall Ships were anchored in Halifax harbor last summer for five days as part of a sailing race from England to Boston to Halifax and back to England.
"We took some of our promotional events to the waterfront along with our co-sponsors and brought some events into the stores as well," said Keizer. "The events included draws for sailing trips aboard the vessels and outdoor entertainment opportunities. We were very fortunate with the weather."
Sobeys set up a mock grocery store in Halifax harbor that displayed many of their products and services, including their private label program and photo-finishing service. There was also a VIP tent for its major vendors.
This summer, many of Sobeys' national promotions will be centered around the 50th anniversary celebrations of its IGA subsidiary, particularly in Quebec and Ontario.
A prime focus will be on "50-cent retails" to attract attention and traffic to stores. The program involves a selection of products selling for 50 cents.
In-store decorations, including posters, staff buttons, balloons and weekly feature window posters will highlight the anniversary. In addition, 12-packs of Coca-Cola and Kellogg's corn flakes boxes will feature an IGA 50th anniversary logo to promote the event nationally.
For Nova Scotia, Sobeys has a tie-in planned with the International Tattoo, a two-week bagpipe and drum festival where some of the musical acts will be brought into the stores and parking lots, weather permitting.
For the last few years, Metro Inc. here has held a summer barbecue contest as its major seasonal promotion. It involves a draw for prizes related to the barbecue with the grand prize of a chalet worth $70,000 (Cdn. $110,000) with the tag line: "Win a chalet for your barbecue." The contest runs from mid-June until mid-August and is promoted in-store and through Metro's weekly fliers.
"It's a co-op event with several partners where customers can win smaller prizes at individual Metro stores," explained Gilles Caron, vice president of marketing. "For example, they could win one of 50 four-man tents or a cooler. There were also $100 food vouchers for people who purchased one of our weekly specials."
Store displays featuring cutouts were located next to the meat department with storefront banners promoting the contest. Because of government regulations, contest participants are not obliged to make a purchase to qualify for prizes.
Caron said last year's contest garnered over 900,000 ballots, an impressive number for a province with a population of 7 million people (Quebec).
"Our research showed that people really appreciated the originality of the promotion," he said.
Metro is still working on this summer's promotions.
Contests don't appear to work for Mourelatos here, a five-store ethnic chain that caters primarily to the Greek community.
"We've been around since 1956 and our business is very price-driven," said owner Chris Mourelatos. "Produce is our strength, and the most successful promotion we had -- although we lost money -- was selling bananas for 7 cents a pound."
The only summer promotion Mourelatos does is an annual barbecue for charity with food and beverages donated by suppliers.
But the grocer advertises heavily on TV and through transit posters with the tag line: "The Garden of the Mediterranean."
"Advertising accounts for a very large percentage of our sales and is a big part of our success," said Mourelatos.
Loblaw Cos., Canada's largest grocer, also doesn't rely on contests to boost traffic. Instead, it will focus on a three-pronged marketing program involving the barbecue, lawn and garden products and PC (President's Choice) Financial, its electronic banking division.
"We do a huge amount of business in lawn and garden products such as plants, fertilizer and patio furniture," said Geoff Wilson, vice president, investor relations. "There are no contests, but we'll set up tents in our parking lots featuring a huge array of products. We rely on selection and price to attract shoppers."
Similarly, Loblaw will heavily promote its meat selection and accoutrements for barbecue season with banners placed near meat counters.
This summer also marks the launch of its PC Financial MasterCard loyalty program in Ontario where most of its stores are located. The card will offer the usual benefits of a platinum card such as extended warranties, roadside assistance and 10 PC points for every dollar purchased using the card that can be redeemed for free groceries at any Loblaw store.
The same strategy will apply at Loblaw's Provigo stores in Quebec, excluding the MasterCard program, which will be rolled out either in the fall or early next year.
