DAIRY PROMOTION DRIVES SHOPPERS TO FRESH PRODUCE

ROSEANNE HARPER

SYRACUSE, N.Y. - For the first time, Penn Traffic Co. ran a dairy promotion that drove shoppers into its produce departments.

The company, which owns and operates 110 supermarkets in four states under the banners of P&C Markets, Quality Markets, Bi-Lo and Riverside, focused on salads with the promotion to tap into consumers' annual resolutions to lose weight or at least cut their calorie intake.

Launched early last month in all stores, the dairy-case promo aimed to increase sales of private-label milk in gallons by offering customers savings in other parts of the store via instant coupons.

"We felt the timing was ideal for this promotion because it started just as people start their New Year's resolutions," a Penn Traffic spokesman told SN.

"Fresh Express had approached us, saying they wanted to be involved in one of our bottletopper promotions. Then, once Fresh Express was on board, Kraft and Hidden Valley jumped right in."

The colorful "necker," placed around the top of each gallon of private-label milk, was divided into three coupons, offering $1 off Fresh Express bagged salads, $1 off Kraft All-Natural Cheese Crumbles, and $1 off Hidden Valley salad dressings. With the purchase of one gallon of private-label milk, customers had the opportunity to save a total of $3 on packaged salad and related fixings.

The three-week campaign was Penn Traffic's fourth in a round of bottletopper promotions organized by Promopoint Marketing, Tampa, Fla., and ConnectCommunications, Minneapolis.

To create a successful program, the marketing companies negotiate with top brands for cents-off or dollar-off coupons. Then they sell the idea to retailers, who for the most part have been receptive to the promotions, said Mike Klabunde, principal with ConnectCommunications.

"Private-label milk's sheer velocity of turns has made it the perfect vehicle for cross merchandising with instant coupons," Klabunde said. The idea is to get the milk shopper into other parts of the store during the same shopping trip. The lift in milk sales, too, usually ranges from 1% to 2%.

Penn Traffic, which ran its first bottletopper promo last September, has already committed to doing several more this year.

In fact, one it launched last month offers $1 off on any one Banquet Dessert Bakes, $1 off on any two Swiss Miss puddings and $1 off any two Reddi-Whips, with the purchase of a gallon of private-label milk.

Signs in Penn Traffic's stores, including some in the front windows, encourage customers to look for savings in the dairy case.

ConnectCommunications and Promopoint Marketing are working with Albertsons in its Southern California division on a bottletopper promotion, which will be expanded to other divisions within the company.