THE TURNING WHEEL OF IDEAS: OLD CONCEPTS BECOME NEW
It seems at times there are no more than a few marketing and merchandising ideas that exist in food retailing and that they are recycled periodically in different forms for further application. Sometimes portions of ideas are bolted one to another, then trotted out for further application.Examples of this abound. Included are notions such as an everyday-low-price offer, or a service offer, or offering
July 31, 2006
David Merrefield
It seems at times there are no more than a few marketing and merchandising ideas that exist in food retailing and that they are recycled periodically in different forms for further application. Sometimes portions of ideas are bolted one to another, then trotted out for further application.
Examples of this abound. Included are notions such as an everyday-low-price offer, or a service offer, or offering more fresh prepared, or more shelf-stable product, or mimicking a competitor, or differentiating, or offering shoppers prizes, or not, and so on.
To be sure, the re-emergence of ideas that were previously tried, and then discarded after a time, doesn't mean the ideas are no good. The process can be part of the constant quest to get in front of ever-changing consumer requirements. Sometimes, though, the reuse of ideas signals an impoverishment of thought, or even the lack of institutional memory. That's the case when the memory of what has been tried in the past is lost to the point that the old looks entirely new.
As it happens, there are several news articles and features in this week's SN that show how old concepts can become new. Let's take a look at three of them.
HYBRID STORE
At A&P's beleaguered Farmer Jack operation in the Midwest, three stores are to be converted to a "hybrid" concept next month that pulls ideas from discount and fresh merchandising. The stores will feature an attenuated assortment of Center Store products set on warehouse-style shelves. Price points are to be lowered. Perimeter departments will get greater emphasis. The concept appears similar to many conversions that were attempted by conventional stores a dozen years ago or more as membership clubs presented an increasingly competitive challenge.
Meanwhile, Farmer Jacks are being backed by the resurrection of the previously used "Savings Time" advertising slogan. One executive said that when the vinyl film used for graphics on delivery trailers was peeled off, that very slogan was found underneath. A happy boost for a recycled strategy. See Page 17.
CONTINUITIES
Continuity promotions were widely used previously by supermarkets, other retailers, banks and many other commercial venues. The idea was to build repeat traffic through the ongoing weekly offer of, say, components of a set of dishware or volumes of an encyclopedia set. The concept seems outdated now, although it continues to receive some use with both hard lines and, more recently, apparel. As you'll see in the news feature on Page 18, many merchandisers view continuities as being cyclical - popular for a time, then fading for a time. Some predict that continuities will remain limited, but that a slight uptick for this recycled strategy could be in the offing.
CONVENIENCE
Supermarkets aren't the only channel of trade looking around for inspiration. Convenience stores are seeking ideas too, and in some instances adapting what works for fast food and supermarkets. One example, featured on Page 28, is convenience chain Wawa Food Markets. At that operation, slower-turning grocery items are being reduced in favor of high-volume lines such as salty snacks and drinks. Lines being augmented are quick consumables such as sandwiches and coffee.
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