AMERICANS HAVE become wise to the promotional ways of marketers. And now their phones are smarter too. Up to half of all mobile phone users are expected to have smart phones capable of reading QR codes by 2011. Meanwhile, phone makers are pre-loading location-based tools like Foursquare to mobile devices. Given their potential influence, in-store applications of both should be considered for 2011.
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But they're not the only Center Store projects worth exploring. Another is skirting liquor licensing laws that thwart incremental sales opportunities. Then there is room for improvement in the gluten-free space. Even as grocers delve deeper into the category, shoppers feel their needs are being neglected. Enlisting the help of corporate dietitians to combat obesity in kids should also be on your “to do” list.
Incorporate Location-Based Social Networks
FACEBOOK AND Twitter aren't the only platforms that retailers should consider adopting. Location-based applications are the next wave of digital applications that can motivate shoppers to visit the store more often.
Along with Facebook Places, Foursquare is making a name for itself in retail.
Foursquare is a mobile application that lets users “check in” from stores, parks, museums and other places to let friends know where they are. They get points and “badges,” and retailer discounts, based on how often they check in.
“Foursquare is an important new addition to the portfolio of social media options that retailers should be considering,” said Bill Bishop, chairman of Willard Bishop, Barrington, Ill. “If they're not, they're missing an important opportunity.”
While retailers like Toys “R” Us, JC Penney and Gap are involved in Foursquare, supermarkets are starting to get involved as well.
Safeway was one of the early adopters when it ran a Foursquare promotion earlier this year tied to Starbucks locations inside its stores. Those who had the most check-ins, which Foursquare designates as “mayors,” received $1 off a “However-You-Want-It” Starbucks Frappuccino.
Safeway's Vons division is even more involved. It just launched a partnership with Foursquare and Pepsi.
Shoppers can connect their VonsClub Card to their Foursquare account at Vons.com/Foursquare. When they make a purchase at Vons, and swipe their card, they automatically check in to that Vons location on Foursquare. In doing so, they are eligible to receive a checkout coupon for a PepsiCo product. The more active Vons shoppers are on Foursquare, the more savings they get.
As a reward for signing up, Foursquare users get a free four-pack of Izze 8.4-ounce cans or bottles after their first purchase. The promotion runs through Feb. 8, 2011.
The use of Foursquare joins a growing number of technology platforms that include customer interaction both prior to the shopping trip and also inside the store, said Bishop.
While some retailers are reluctant to get involved for fear their target demographic is not active in social media, they should think again.
“It's not just a young demographic,” Bishop said. “A lot of Facebook users are women in their 30s.”
— Carol Angrisani
Put QR Codes on Store Brands
RETAILERS LOOKING to build awareness of and confidence in their store brands should consider using QR codes on shelf tags and even product packaging.
QR (quick-response) codes are two-dimensional barcodes that connect cell phone users to websites, videos and other content. By using QR codes, retailers can promote their store brands in exciting ways.
That's because 2D codes hold more data than other codes, and can be used for product comparison, manufacturing and nutritional info, customer reviews and even competitive pricing. This is especially beneficial to CPG marketers, since the majority of food shoppers make most purchasing decisions inside the store.
“This can be of real value to private label because it helps them establish their product as good as, and perhaps even better than, national brands,” said Bill Bishop, chairman of Willard Bishop, Barrington, Ill.
What's more, QR codes motivate consumers to get engaged with retailers and their private brands. About 50% of all mobile phone users are projected to have smart phones capable of reading QR codes by next year, up from the current 25% to 35%.
D'Agostino Supermarkets recently launched a QR code pilot linked to the relaunch of Delverde Pasta. The codes appear on shelf talkers in 18 D'Agostino stores.
Once scanned, shoppers can access Delverde recipes and wine pairings based on their entertaining needs.
PCC Natural Markets, Seattle, is another retailer using QR codes. It currently has QR codes on in-store posters that promote the Non-GMO Project, a third-party verification program. By snapping a picture of the code, shoppers see detailed information about the GMO Project.
PCC also uses QR codes in circular ads that shoppers can scan to call up a video on how to select a melon.
— Carol Angrisani
If Traditional Alcohol Sales Are Prohibited, Think Outside the Box
EARLIER THIS MONTH Pennsylvania's Supreme Court reaffirmed Wegmans Food Markets' right to sell beer from its Market Street cafes as part of a ruling that may signal a green light for other grocers.
Though supermarket beer sales are prohibited in the state, the Rochester, N.Y.-based retailer was determined to benefit from alcohol sales in its stores. So it took the unconventional step of seeking restaurant licenses for its in-store eateries and set a precedent when they were granted.
The licenses are controversial since Market Street cafes operate within Wegmans' supermarkets but they've survived challenges by the Malt Beverage Distributors Association — first in the Commonwealth Court of Pennsylvania and now in the state's highest court.
The licenses allow Wegmans to sell up to two six-packs of beer for immediate consumption, or for off-premise enjoyment, as a traditional supermarket's license would.
But that's not the only way the retailer has gotten involved with nontraditional alcohol sales. Wegmans will soon have wine within all of its Pennsylvania supermarkets too.
The Pennsylvania Liquor Control Board oversees the retail distribution of wine and spirits through a network of hundreds of state-run Wine & Spirits stores.
But a change in the state law several years ago allowed the connection of brick-and-mortar Wine & Spirits stores to supermarkets. The PLCB operates 19 of these shops across Pennsylvania. As part of an effort to bring wine to more shoppers, it's placing wine kiosks that act as PLCB satellite stores in supermarkets. The machines are self-serve, but PLCB employees monitor transactions remotely.
Wegmans was one of two retailers (Giant Food Stores was the other) involved in a pilot of the machines that began last June.
The 18-foot-wide and 10-foot-tall kiosks feature wines priced from $5.99 to $15.99. The PLCB controls the selection and collects all sales proceeds, but Wegmans benefits in other ways.
“The most common comment we receive is that it's convenient to be able to purchase wine in the grocery store while they are planning their meals,” Wegmans' Mechanicsburg store manager Bob Finn told SN.
Today the machines are in about 30 Pennsylvania stores, including 10 Wegmans locations, and Giant Eagle, Shop ‘n Save, the Fresh Grocer and Giant Food Stores. Four more kiosks will be rolled out to Wegmans stores in the coming months, meaning all 14 of its Pennsylvania locations will feature wine.
— Julie Gallagher
Seek Gluten-Free Endorsement
AS IF AVOIDING FOODS with wheat, rye and barley wasn't enough, gluten-intolerant shoppers report having to dodge misinformed store associates.
That's according to a survey conducted by the non-profit Gluten Intolerance Group of North America, whose mission is to support and educate persons living a gluten-free lifestyle. Though gluten-free sets continue to proliferate, retailers' understanding of gluten-intolerance and foods that are safe for such diets leave a lot to be desired. “
We asked consumers if they wanted to know that retailers had a better understanding of gluten intolerance and if some type of recognition program would be beneficial to them. The answer was overwhelmingly ‘yes,’” said Cynthia Kupper, executive director of the GIG.
After working with the GIG for 18 months, PCC Natural Markets, Seattle, became the first retailer to gain its official endorsement last May. Now the organization is guiding its second major chain — Lunds and Byerly's — so it can attest to its efforts too. It's in preliminary talks with Whole Foods Market.
7-Eleven hoped to gain endorsement, but Kupper decided it wasn't the right fit.
“They see it as a way of driving business, but they're not carrying a bunch of gluten-free products,” she said.
PCC, on the other hand, was already catering to gluten-free shoppers when it began work with the GIG.
“Offering shoppers and staff resources and information about gluten intolerance and gluten-free products wasn't something new for PCC, but the depth, breadth and the accessibility of information has increased significantly,” said PCC spokeswoman Diana Crane.
Endorsement guidelines are based on the frustrations of gluten-free consumers. That's why all levels of employee are required to undergo training. Written tests are one way the GIG evaluates knowledge, real-life situations are another.
“We sent someone in unannounced and they picked out the lowest person they could find, whether they were stocking the shelf, mopping the floors, the butcher, the baker, whomever, and they asked specific questions,” Kupper said.
One was, “Does spelt fit in with a gluten-free diet?” Although health retailers have for years promoted spelt as a gluten-free wheat alternative, the answer is “no.” Get that wrong and you're sure to infuriate shoppers, Kupper said.
“It was one of the things that we really had to work with PCC on,” she noted.
A consistent way to identify gluten-free foods across stores is another requirement. PCC uses a database featuring all products. It identifies whether each is gluten-free, and whether they'll be highlighted as such with a shelf-talker. To avoid confusion, foods that are naturally gluten-free aren't highlighted.
The GIG also asks that endorsed retailers engage in consumer outreach, like hosting a gluten-free health fair. GIG in turn promotes its relationship with PCC in the gluten-free community.
— Julie Gallagher
Enlist Dietitians in Childhood Obesity Fight
STUDIES DOCUMENT a significant correlation between a child's physical fitness and academic achievement. Weis Markets is improving its standing in the community by making this lesson fun for kids during its Weis Mystery Tours.
Despite limited resources, the chain's three dietitians developed the 90-minute tour and tested it with 500 kids before rolling it out to 50 of its 126 locations.
At a time when the foods adults put in front of children are being examined like never before, it behooves retailers to empower kids to make their own healthy choices.
Weis does this by including each of the four food groups in its free tour that's based on Department of Education health and wellness curricula.
Since its September launch, 2,000 third- and fourth-graders have either completed the tour or are scheduled to, Karen Buch, director of lifestyle initiatives at Weis Markets, Sunbury, Pa., told SN.
“We see statistically significant learnings pre- and post-tour,” she said.
The mystery surrounds N.R. Getic George, a child who is weak, falling asleep in class and using his lunch money to buy cookies and snacks. Little ones don a detective hat and badge, and use clue pads and a magnify glass to help find nutritious foods and get George back on track.
“We're hoping kids can relate to this in their own lives. That's why we shaped the story line the way we did,” said Buch.
Store associates who've been specially selected for the role play the part of inspector, dispensing clues such as calcium in dairy products helps to build strong teeth and bones, but in order to be counted as a serving the food should have at least 20% of the daily allowance of calcium.
Kids then inspect labels and bring back appropriate items.
Weis avoided national-brand sponsorship of the program since it didn't want to market name-brand products to children. That means it pays for everything, including labor, the private-label snacks kids sample, goody bags and other materials such as the detective gear. Kids get to take the costumes home since they help reinforce what they've learned.
“We know that some kids are reenacting the tour program at home,” Buch said.
Also helping to commit lessons to memory are free support materials designed for use by teachers either before or after the tour. A home activity booklet for kids and parents is included in the goody bag.
“Hopefully it's helping to shape what's happening thereafter for the child,” noted Buch.
If “detective” Jenna's experience is any indication, it is.
“I had a fun time with you at Weis Markets,” she said. “I got to learn about things that I didn't even know about. My mom didn't even know half of the things I learned about.”
— Julie Gallagher