SAMPLING WITH SIZZLE

John Karolefski

Sampling continues to be an effective way for retail marketers to add excitement to their stores. But when mulling over their next promotion, more retailers nowadays are critically asking themselves: Where's the sizzle?

In other words, they're no longer satisfied with just giving away cheese on a cracker. Plus, their shoppers are looking for something extra.

Experts say the sizzle comes from adding "retailtainment" to the sampling and turning it into an event. This could be as simple as providing live music during the sampling. More elaborate promotions give shoppers the chance to interact with the demo. For example, allowing them to push the mop for a new floor cleaning system, or giving them a chance to win an Oreos' stacking contest.

More in-store sampling is now moving up to this next level, according to retailers and promotion executives interviewed by SN.

"Customers want shopping to be fun. They're looking for something more than to be handed something free in the store. Having more interesting samplings and product demonstrations gets them involved in the process of shopping and makes it more enjoyable," said Joe Ramirez, spokesman for Penn Traffic, Syracuse, N.Y.

Penn Traffic staged a three-month sampling in all of its stores last summer that involved Starbucks coffee. A different flavor was featured each month. Shoppers got more than a free cup of java. When they purchased two 12-oz. bags of the coffee of the month, they received a free Starbucks music CD.

The retailer also routinely conducts samplings during a store's grand opening, such as one last year for P&C Foods. "At one point, there were 25 different demonstrations going on in the store," said Ramirez. "Everything was lively. It was a celebration of the store's opening with a carnival atmosphere. It was really fun for the customers who not only came to a new store, but got to sample lots of different products available in the store." Retailers who stage samplings with sizzle are focused on engaging the shopper, explained Bill Bishop, president of Willard Bishop Consulting, Barrington, Ill.

"They are looking for that opportunity for conversation and interaction that personalizes a self-service shopping experience," he said. "That is the largest, overall value to the retailer. Obviously, they sell products and add excitement in the store. But the personal engagement is the thing. As retailers look for ways to strengthen their relationship with individual consumers, this is a perfect way to do it. This is a very powerful and precise tactic of customer relationship management."

Bishop gave the example of a simple, but effective, way to connect with consumers at a Trader Joe's that he visited in December in Lake Zurich, Ill. There was a cookie jar full of free store-brand coconut macaroons next to each checkout lane. A small display of packaged product was also set up nearby for sale.

"It was a lot of fun and engagement and no obligation to buy," he said. "It finished the shopping trip off on a very positive basis. Also, it was an incremental sale. But it didn't look or feel like an incremental sale. It was part of the shopper engagement process. As a consumer, I was pleasantly touched by it. Frankly, as a retail observer, I thought it was smart."

More retailers around the country are becoming smarter when it comes to enlivening their in-store promotions. Last November, for example, St. Louis-based Schnuck Markets hired the services of a national event management company to inject more excitement into the shopping experience. The retailer is using Mass Connections, Cerritos, Calif., to deliver a high level of consumer engagement at its retail locations.

"[They] will help energize our in-house events and add excitement to every shopping experience," said Scott Schnuck, president and chief operating officer, Schnuck Markets. "We encourage manufacturers to offer sampling as a way to introduce new products and promote old favorites."

St. Louis resident Sara Owens, president of Promo Pros, applauded Schnuck's move, adding that it isn't the retailer's job to take charge of staging elaborate events in the store. "Retailers don't have the time to get that done," she said. "It's a combination of the manufacturer in making sure that the in-house marketing has what it needs and the in-store marketing management company understands what needs to be done. So it's a joint effort between the manufacturer and the executor."

Experts say expanding from a simple sampling to an event with sizzle calls for experience to coordinate and manage a lot of detail.

"When you go to the next level, there are a lot more components involved," said Caroline Nakken, principal of Mass Connections. "There's a lot more on the checklist up front to make it successful. I'm talking about everything from liability to making the event easier to execute."

Last November, Mass Connections was chosen to lead the in-store event management effort at Wal-Mart, which coined the term "retailtainment" and is arguably the country's leading practitioner. The company will also continue to be an authorized demonstration provider for the world's largest retailer.

The enhanced role builds on the development and execution of retail-level promotion activities, and it places the coordination of Wal-Mart in-store events under the direction of Mass Connections. Nakken said the goal is "to have a long-term, positive impact on Wal-Mart's operations by helping to direct all in-store events. Proper management will ensure that these activities will continue to ignite shopper excitement."

In 2002, Penn Traffic doubled the number of demonstrations in all of its stores, compared to the previous year. Ramirez said part of the reason for the increase was that the company turned to outside agencies to handle the logistics.

"It works better if the organization and the brainstorming part are done in-house," he said. "The logistics are handled by an agency. They are responsible for carrying out the orders they are given by the marketing people in Penn Traffic."

One of these agencies, All-Ways/Demoworks, based in Wayne, N.J., segments its demonstration force into categories such as high-profile sampler. "If it's a high-profile event, which means retailtainment, we put that person in -- not whoever is available," explained David Rich, president.

"So we've targeted our demonstrators for specific events."

Whenever Weis Markets, Sudbury, Pa., has a store opening, All-Ways stages a milk mustache contest. The demo team orchestrates the event and gives shoppers an instant photo of themselves.

"New product success is an important part of our overall marketing and merchandising efforts. Demos allow us to introduce our customers to new products they might not otherwise try and generate increased exposure and sales," said Dennis Curtin, spokesman for Weis, which operates 162 stores in six states under the Weis, Mr. Z's and Weis/King's banners.

Goals, communication and timing are critical to elaborate samplings, according to All/Ways' Rich and other executives familiar with staging such events. All it takes is a little collaboration.

"The most successful events happen when sufficient time, information, preparation and training are implemented," said Lloyd Wickett, merchandise manager, Kmart, Troy, Mich. "Collaboration is key. It is imperative that you allow each entity -- retailer, manufacturer and the in-store marketing company -- to be included in the inception of any large-scale or high-profile event," he said.

The hard benefit of sampling with sizzle is moving more volume, said Owens of Promo Pros. The soft benefits are building awareness and enhancing the image of the store and the brand. She pointed out a classic example: the Oscar Mayer Weinermobile that rolls into supermarket parking lots around the country.

Bishop, the consultant, said these promotions are a way to differentiate the store and also a way to sell incremental items.

"So you've got the engagement and the discovery of something you didn't know about or hadn't experienced before," he said. "At the end of the day, it's probably the best and most practical way to personalize shopping in a self-service environment."