C&K Expands Coupon Promotion

CAROL ANGRISANI

BROOKINGS, Ore. — C&K Market experienced such positive results from a pilot coupon promotion that it's running it again for another eight weeks.

On May 26, the retailer mailed a two-page 11-by-5½-inch booklet packed with 32 coupons. Four coupons can be used for each of the next eight weeks.

The “Refrigerator Savings” mailer, named as such because it has a magnet on the back so that it can be placed on a refrigerator, is a patented program from Refrigerator Media Advertising, Spring Park, Minn.

Other retailers have run their own customized Refrigerator Savings program, including Coborn's, various Supervalu retailers as well as Nash Finch's Bag N' Save banners.

C&K first distributed the coupons to households surrounding six of its Ray's Food Place stores for eight weeks ending April 28. C&K did not say how many households received it.

Savings for both national and private-label brands were included. Among the offers: Swanson frozen dinners, 59 cents each; a 32-ounce bottle of Gatorade, 49 cents; and a 12-pack of 12-ounce cans of Western Family private-label cola for 99 cents. Many offers had a one- or two-purchase limit.

The coupons were credited for generating double-digit increases in total-store sales vs. the same day last year at participating stores. One store even experienced a 44% lift.

The new program that kicked off May 26 targets households shopping four different stores.

“We'd like to compare the results of the original flight vs. this flight,” Grant Lunde, C&K's marketing manager, told SN.

The current program features coupons for the same products included in the first event, although face values are slightly higher.

“We decided to use the same products as a test control,” said Lunde.

The mailer helps traditional retailers fight back against discount stores and mass merchandisers, which can erode up to 25% to 28% of their business, said Vickie Johnson, vice president of sales and marketing, Refrigerator Media Advertising.

That's because the average four-person household opens the refrigerator 20-30 times per day, so the magnet continuously reminds shoppers about the featured store.

“This is visible on the refrigerator 24/7,” she said. “It's noticeable and obvious every day.”

Since different coupons are valid for each of eight weeks, the program builds repeat business for supermarkets, said Johnson.

“This gives people a reason to go into the store time and time again,” she said.

Houston-based Gerland Corp., which operates stores under the Food Town and Food Fair banners, kicked off an eight-week test of the coupon mailer about one week ago. The mailer was sent to homeowners located within a four-mile radius of one of its Houston-area stores.

The store was chosen because it opened in August 2009, and is the chain's newest unit.

Kevin Doris, Gerland's president and chief executive officer, liked the idea of using a direct-mail piece to build awareness of and interest in the new store.

“We thought we could enhance the growth of the store,” said Doris.

He declined to say how many people received the mailer, but did mention that the coupons provide a simple way for shoppers to save money at the store each week.

“This is very straightforward and easy for consumers to understand and use,” Doris said.