KROGER'S DETROIT STORES PUSH GM CREDIT CARD PROGRAM

CHRIS O'LEARY

CINCINNATI -- Kroger Co. here launched a credit card marketing program last week at 66 Detroit-area stores, where shoppers' purchases earn points toward a new car.

The retailer is promoting the card, sponsored by General Motors, Detroit, with a sweepstakes to win a one-year car lease. GM MasterCard users are automatically entered each time they make a purchase, while other shoppers can enter by completing an entry form or filling out a card application. Kroger and GM also will develop print and radio advertisements, in-store merchandising materials and a direct mail campaign to GM card members.

For Kroger, the program is designed to build customer excitement and sales. "This is another example of Kroger's efforts to provide everyday value to our customers," said Michael Heintzman, Kroger's vice president of merchandising, Michigan Marketing Area. The success of the pilot initiative, which will run until November 1995, will determine whether Kroger and GM will roll out any further campaigns.

Under the GM MasterCard program, users earn 5% of their credit card purchases toward the purchase or lease of a GM vehicle. In the Kroger pilot, consumers receive an additional 1% in earnings that can be applied toward a car.