KASH N' KARRY RUNS TEST OF COUPONS FOR ITS LABEL

RICHARD TURCSIK

TAMPA, Fla. -- Kash n' Karry Food Stores here tested an in-store coupon machine program in an effort to build sales of its private-label diapers.

The four-week test began March 28 as part of a joint effort of Kash n' Karry; ActMedia, the in-store marketing firm; Paragon Trade Brands, which manufactures the diapers for Kash n' Karry, and Damon Associates food brokers. The project is completed, and the participants are evaluating the results.

The test involved in-store coupon machines that distributed 55-cents-off coupons for Kash n' Karry brand diapers and were placed in the diaper aisle in each of the chain's 101 stores in central and southern Florida.

"Diapers are one of the most heavily promoted categories and one in which private label is very active," Paul Kessinger, vice president of marketing at ActMedia, Norwalk, Conn., told SN.

"Kash n' Karry was using the in-store coupon machine over and above all of the other things they do to promote their private label. The machine was in front of the diapers in the store, and the in-store test was exclusively for diapers," Kessinger said.

Tom Whipple, executive vice president of marketing at Kash n' Karry, told SN that the chain is currently analyzing the data from the test to gauge the coupon distribution device's effectiveness on sales and profits.

"We are trying to decide whether the coupons vs. a sale actually gave us more penny profit," he said.

"No matter how you look at it, we gave away 55 cents. Are we glad we did that? Did we put more pennies in the bank? Or didn't we? Vs. leaving it at regular price, or a lower price, or other options. We don't have that answer yet. We are still tabulating the results," Whipple said.

Whipple said that the coupon program included all of Kash n' Karry's private-label diapers.

"We have a 48-foot run and we match up just about one on one with each size and style of diaper that the national brands have," he said.

Whipple said that Kash n' Karry is always looking for different tools to increase sales.

"We're always open to testing most anything within reason," he said.