STAUFFERS' PLANOGRAM SATES DIET DRINKERS 2004-09-06 (2)

CAROL ANGRISANI

LITITZ, Pa. -- Stauffers of Kissel Hill recently completed a new beverage aisle planogram that emphasizes diet drinks and refrigerated New Age selections.

As part of the project, the four-store retailer reset the Coca-Cola carbonated soft-drink section so that the manufacturer's diet drinks are grouped together instead of next to their non-diet brand counterparts. This means Diet Coke flanks beverages like Fresca and Diet Sprite, not regular Coke. The same has been done with the Pepsi-Cola set.

"We don't want diet consumers to have to bounce all over the place and shop the whole category," Warren Crills, grocery buyer, told SN. "We want everything to be right there where they need it."

The reset was implemented this summer after Coca-Cola Enterprises analyzed Stauffers' sales data and discovered strong performance of reduced-calorie carbonated soft drinks. Coca-Cola Enterprises, which sells about 80% of Coca-Cola Co.'s bottle and can volume in North America, is Stauffers' CSD category captain.

"Our sales numbers show that our customers prefer diet drinks," Crills noted.

The revamped department will make it much easier for shoppers to find -- and buy -- low-calorie brands, said Jeff Schmeck, division retail space manager, Coca-Cola Enterprises, Atlanta.

"This gives the consumer a distinct diet section," Schmeck pointed out.

Stauffers is emphasizing better-for-you items in another way. It has changed its circular advertising with Coca-Cola to focus on diet CSDs and no-calorie items like Dasani bottled water, rather than Coca-Cola's entire brand portfolio. Stauffers plans to do the same with Pepsi-Cola's ads.

Along with highlighting low-calorie drinks, Stauffers has enhanced the beverage aisle by adding four in-aisle coolers: three two-door units, and one one-door. The coolers hold single-serve New Age selections, such as Frappuccino and Snapple. Each two-door unit contains brand- and distributor-specific labels. The one-door is reserved for Stauffers' private label.

The coolers are strategically placed near the retailer's prepared-foods department to target shoppers who may want a cold drink with their meals. Due to space restrictions, Stauffers has only installed them in its flagship store here.

Paul Ramsey, key account manager, Coca-Cola Enterprises, said Stauffers is on the "cutting edge" of marketing and customer service by installing the coolers.

"Stauffers can fulfill the immediate-consumption need, as the single drink is available cold, and can satisfy the quick-meal customer, as the coolers are located by the hot-food area," he stated.

Most of the store's immediate-consumption brands are also available in warm multi-packs located directly to the right of the coolers "to stimulate take-home sales and fulfill the home-consumption consumer as well," said Ramsey.

Meanwhile, Stauffers plans to reorganize its bottled water department by using Coca-Cola's "Oasis" bottled water program. Coca-Cola's first non-branded fixture kit, Oasis categorizes water into six segments -- spring, purified, imported, enhanced, sparkling and gallons -- through the use of header systems, blade signs, segment graphics, color-coded shelf strips and customizable floor graphics.

"Right now, there's no rhyme or reason to how our water is organized," admitted Crills. "We're going to change that."

Stauffers is also highlighting beverages through occasion-based marketing. The retailer is offering 50-cent coupons for Coca-Cola two-liter beverages directly on packages of its ready-to-eat rotisserie chickens, sold in the prepared-foods department. The coupons are offered every Monday through Wednesday.

During the three-day promotional period, various Coca-Cola two-liter bottles are merchandised in a portable rack adjacent to the food items. The coupons have been a success, according to Crills. About 30 are redeemed each week, per store. Stauffers has also noticed that sales of rotisserie chicken increase when the coupons are offered.