FLEMING DIVISION USING ATM RECEIPTS TO DELIVER COUPONS

ADAM BLAIR

OKLAHOMA CITY -- A marketing program pilot by the New York retail division of Fleming Cos. here will distribute as many as one million store-specific coupons attached to automated teller machine receipts by the end of the year.

The program, which kicked off earlier this month, distributes the coupons via 40 ATMs in the Buffalo, N.Y., area. Coupons are redeemable at seven area stores operating under the Jubilee Foods banner, according to David Elchynski, marketing director of Fleming's New York retail division, Buffalo.

"We're always looking for an additional program to make our stores a destination point," said Elchynski. "This gives us an opportunity to reach customers who aren't part of our regular customer base, via a different point of marketing."

The test program is scheduled to run through the fourth quarter of 1997. "If it produces results, it could become part of our marketing strategy," said Elchynski.

"I'm optimistic that the redemption rate for these coupons will exceed the normal coupon-redemption rate," said Elchynski, adding that the program is also a cost-effective way both to distribute coupons and advertise stores.

The coupons take up the bottom third of the ATM receipt, and are separated from the banking information by a perforated line. Eight coupon offers will be distributed on a rotating basis, including discounts at in-store bakeries and on regional and national brand products, said Elchynski.

"The fact that there are eight different offers will get the customer excited, wondering 'what will I get next?"' said Elchynski, noting that many people use ATMs as often as three times per week.

The retailer is partnering with M&T Bank, Buffalo, N.Y., and ATM Couponing, Dunwoody, Ga., which supplies the ATM coupons and negotiates some of the vendor agreements.