MARSH, GIANT EAGLE TARGET STORE OFFERS

MICHAEL GARRY

NOBLESVILLE, Ind. -- At a "New Lifestyle" supermarket opened here last week, Marsh Supermarkets, Indianapolis, has extended an electronic target marketing project from the point-of-sale to stand-alone kiosks and shelf-attached screens.

Marsh's move follows an announcement by Giant Eagle last month that it has installed the same technology, from Copient Technologies, West Lafayette, Ind., at checkouts in six stores, becoming the second food retailer to use the system.

According to Bret Besecker, chief executive officer, Copient, which was acquired by NCR this year, Marsh has employed the Copient technology, calling it "My Marsh," at checkouts for almost two years at its 69 stores.

The system uses a small touchscreen attached to the check-writing area to display targeted offers based on shopping history, conduct surveys, manage sweepstakes and update continuity programs, printing out information on the receipt.

Copient's system is an example of a new breed of targeting technology that enables retailers to provide targeted discounts to loyalty card shoppers via real-time electronic communications in the store, in addition to, or instead of, direct mail.

VRMS, Shelton, Conn., is another software provider offering this capability to such food distributors as Associated Wholesalers Inc., Robesonia, Pa.

Copient can also run its system at standard kiosks or smaller screens similar to the POS units that are attached to shelving or used at the front end. Marsh has used the smaller units at the front of three stores in Lafayette, Ind., for several months, said Besecker.

At the 66,000-square-foot New Lifestyle store here, the first of a new-generation format being developed by Marsh, the chain is extending the targeting concept to five standard kiosks, called Marsh Link, as well as to several of the smaller shelf units.

According to Marsh spokeswoman Jodi Marsh, Marsh Link kiosks have been installed throughout the new store, including the entrance, deli/bakery, wine, meat and pharmacy areas. In addition to the My Marsh functionality that offers targeted discounts to loyalty card shoppers who scan their cards, the kiosks provide information on nutrition, selection criteria, recipes and product location, she said. Shoppers can print out all relevant information at the kiosks.

The store also features the screen-based, point-of-purchase units on shelves to offer "additional interactive discounting," said Marsh; there are five such units located in different departments around the store, including health and beauty, said Besecker. He said the units, tailored to their store location, can be used to cross-promote products to loyalty card shoppers.

Meanwhile, Giant Eagle, Pittsburgh, has completed installation of the Copient system, which the chain is calling the Personal Shopping System, at the checkouts of five stores in the Erie, Pa., market and one in Pittsburgh, said Rebecca Kane, director of customer relationship marketing.

She said the stores plan to add the functionality to front-end "mini kiosks," and at that point the chain would promote the overall system. Giant Eagle is still in pilot, and has no current plans to roll out the system, Kane said.

The front-end kiosks, noted Kane, would enable Advantage Card loyalty shoppers to pick up targeted offers as they enter the store rather than receiving them at the checkout when they leave. These are on top of all regular promotions.

Kane said Giant Eagle so far has not observed "that big a difference" between response rates to targeted offers given in-store at the POS vs. those sent by direct mail. The Copient system, she said, "is more about speed-to-market and the additional capabilities it gives us than about response rates on offers." Those capabilities include greater flexibility to manage "clubs" and percentage-off offers.

It is also less expensive to use the in-store system to disseminate offers than to use direct mail, she noted, though the chain still does a great deal of direct mail.

Kane said Giant Eagle has used the system to present targeted discounts on seafood based on a shopper's history of seafood purchases. She declined to share results.

Giant Eagle is also using the POS system to conduct quick shopper surveys. For example, shoppers are asked whether they have pets or babies and, if so, whether they would like to receive related offers. "We see a better response rate when people opt in to receiving offers," she said. She said shoppers could also be asked about service.

"We are trying to understand how this can enhance the shopping trip, and also save on marketing costs," she said. She described the system as "a little pricey," adding that the chain is examining the ROI, including "what the consumer is interested in."