SEED MONEY

AMY I. STICKEL

ORLANDO, Fla. -- While watermelons may seem to sell themselves in the summertime, a study done for the National Watermelon Promotional Board here suggests targetted promotions can boost sales by almost 400%.

The study, conducted by U.S. Marketing Services in Sonoma, Calif., tracked watermelon sales at three different supermarket chains in Detroit, Chicago and Los Angeles in 1994 and 1995.

The study found that consumers respond to watermelon promotions. During the study period, 12 watermelon ads were recorded, and the average increase in unit sales per ad was 388%. From that research study, the board identified four "customer styles" for whom retailers can tailor their watermelon mix and promotions. "Through our research, we found this is one of the best ways to merchandise," said Heidi McIntyre, marketing director for the board. "There are differences between demographic groups."

The first group consists of "melon-aires," who represent less than 50% of watermelon users, he said. This group tends to shop high-end stores, and is often composed of urban or suburban dwellers. Their incomes exceed $50,000, they are trendy, with no more than two children. Their ages range from 35 to 54. "Melon-aires" purchase a wide range of melons. Merchandising tactics to reach this group include expanding precut sections, introducing new varieties, featuring cross-couponing, offering recipes and nutrition information and demonstrating melons on a low to medium schedule, according to the board. The second group, "melon maniacs," tends to shop middle-income, suburban stores. This group consists of traditionally high melon users, with large, young families where children make shopping decisions. Melon maniacs' income ranges from $30,000 to $50,000, and they are price conscious.

To reach this group, the board recommends expanding bin displays, planning summer themed events, advertising heavily, planning kids' club promotions, featuring cents-off coupons and scheduling frequent demonstrations. "Melon minders," the third group, tends to shop ethnic stores in urban and rural areas. In this group, Hispanics make up the highest watermelon users, and Asians represent the fastest- growing ethnic group. The families tend to be large, with the women making the buying decisions. Melon minders are also price conscious, but the incomes within this group vary.

Retailers merchandising toward melon minders should increase all melon displays, feature ethnic language point-of-purchase material, plan in-store weekend events, offer nutrition tips and usage hints, feature heavy in-store specials and plan a medium demonstration schedule, the board suggested. The fourth group is "melon minimalists." This group shops urban stores and tends to be older or retired. Melon minimalists generally live in small households and tend not to purchase much fruit. This group is also price sensitive.

To reach this group, retailers should expand their emphasis on the 5 a Day message. Retailers should also boost their offerings of sliced and wrapped watermelons, while featuring cross-promotions and coupons. A medium to heavy demo schedule is best for reaching this group, according to the board.