How New Developments Will Transform In-Store Marketing

Oct 1, 2007 12:00 PM,
By David Orgel
Editor-in-Chief
david.orgel@penton.com


         Subscribe in NewsGator Online   Subscribe in Bloglines

The “modern” supermarket is some 70 years old and has played host to countless in-store marketing campaigns of all kinds over the years. One would assume that by now marketers have completely learned the supermarket's potential as a promotions vehicle.

That assumption would be wrong.

David Orgel

There's a new surge of interest in the store as a medium, which comes at a time of fast-changing consumer shopping behaviors. An SN survey of manufacturers published last month found more than two-thirds of respondents were planning retail-specific consumer campaigns, an increase in activity from the prior year. A study to be released at this week's GMA/FPA Merchandising, Sales and Marketing Conference in Colorado Springs reports a growing manufacturer focus on in-store and related “shopper marketing” efforts compared to the use of TV, radio, print and other traditional media, which are becoming increasingly fragmented, said Brian Lynch, director, sales and sales promotion, GMA/FPA.

The most far-reaching initiative in this renewed attention to in-store marketing is a program to bring better tools to marketers. The idea is to measure the retail environment for consumer reach, just as you would measure TV or radio. That is the focus of the industry's PRISM effort, which stands for Pioneering Research for an In-Store Metric. The goal is to predict consumer reach by category, area of the store and retail format. This campaign has attracted a highly impressive roster of trading partners, which include Wal-Mart, Kroger, Albertsons, Safeway, Meijer, Stop & Shop, Procter & Gamble, Coca-Cola, Miller, Kraft, Unilever, ConAgra and General Mills. (A story on PRISM appeared in SN in late August.) Current research, which includes analyzing store traffic patterns, would lead to the creation of a new syndicated in-store measurement service from the Nielsen Co. by 2008.

Peter Hoyt, executive director of the In-Store Marketing Institute, Skokie, Ill., which is spearheading PRISM, cited strong progress and told me why marketers will benefit. “We know how many consumers bought a product, but how many passed by and didn't buy? We'll be able to compare one chain against another in traffic and close rates in stores. Then marketers can make decisions on how to invest to improve results, whether through POP displays, floor graphics or some other method.”

If successful, PRISM will be a boon to marketers and retailers, who have long had to live with the inexact science of in-store marketing.

No set of metrics can give marketers complete control, especially in the face of retail programs that aim to rationalize the in-store experience for shoppers. The best example is Hannaford's Guiding Stars campaign, which developed a star system for products based on predetermined nutritional criteria. Hannaford recently said products assigned stars were experiencing up to four times the movement of those without.

So, even as marketers gain new tools for in-store battle, they are up against new powers that be. A Guiding Stars-type endorsement from a retailer will carry far more weight with consumers than virtually any manufacturer campaign.

Suffice it to say that the store will become a more contested battleground in coming years, and this is the time for all parties to prepare their ammunition.

Subscribe / Renew to Supermarket News

Supermarket News

The most reliable source of industry news and insight...in print and online.

Most Viewed News

Read More News

Upcoming Events

Pharmacy & Technology Conference: Aug. 23-27, National Association of Chain Drug Stores, San Diego Convention Center; 703.549.3001.

HBW (Health, Beauty, Wellness) Marketing Conference: Sept. 5-8, Global Market Development Center (GMDC), JW Marriott Desert Ridge Resort & Spa, Phoenix; 719.576.4260.

View All Upcoming Events

Retail Analytics
Brian Ross

View All Questions

Refresh: A Whole Health Blog

Bob Vosburgh

Bob Vosburgh:

Read More Refresh

Articles by Market
Retail/Financial
Executive Changes
Grocery/Center Store/
Brands
Health & Wellness
In-Store Bakery/Deli/Meals
Logistics
Marketing
Meat/Seafood/Dairy
Nonfoods/Pharmacy/HBC
Produce/Floral
Specialty/Ethnic
Technology
Key Issues
Food Safety/Recalls
Legislation/Regulations
Sustainability/Green
Resources
Profiles & Rankings
Webinars
White Papers/Studies
Whole Health Blog

Back to Top

Subscribe to SN

Latest Cover

IRI Fast Trends

Not much remains the same in the food-distribution industry, whether it's the marketing of supermarket departments, the advent of new formats or rapidly changing consumer preferences. See what's changing now in the latest IRI Time and Trends report.

SN Daily Update

newsletter image

The food trade’s leading daily news service. Register Here

Upcoming Events

American Bakery Expo:
Sept. 21-23, 2008,
Retail Bakers of America,
(N.J.) Convention Center,
Atlantic City; 703.610.9035.

View All Upcoming Events

Jobs/Classifieds

View All Classifieds

Premium Content

Upper Crust

Upper Crust

Higher ingredient and fuel costs have led to increased prices in the bread category, but consumer interest in artisan and whole grain breads has held steady.

Supermarket News Secret's Out

The Secret's Out

Discounter Aldi is well-positioned and growing, and doesn’t mind telling you so.

Supermarket News Sharper Image

Asia Major

Wal-Mart delivered a strong message about ethnic retailing when it launched its first-ever Asian American ad campaign three years ago

Supermarket News Show Stoppers

Let the Games Begin

For years China has held the gold medal for nonfood exports sold in U.S. supermarkets

Supermarket News 
Local Flavor

Local Flavor

As food trends go, produce departments are often among the last in line to receive a boost from the latest new craze. Usually, independent chefs take.