Progressive Grocer

AUG 2015

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Winning with promotion Another big opportunity lies in spurring unplanned or incremental purchases through promotions. Tis can be tricky–as we've seen, cereal shoppers tend to enter the store with an agenda in mind–but studies suggest that well-executed promotional eforts pay of. Scanner data show that stores enjoy a 14-point lif in RTEC sales when combining feature and display promotions. 53 Remember: Infrequency of purchase is one of the cat- egory's biggest challenges. To fully optimize the RTEC category, encourage more frequent purchases through these kinds of one-two punch promotions. But don't forget to keep things fun. Package inserts and promotions engage consumers in a playful way (think games, competitions and giveaways, seasonal items). Manufacturers who have invested in these kinds of promotions with retailers have successfully realized incremental sales, particularly in the past year. 54 RTEC promotions can also extend beyond the breakfast aisle. Retailers have a huge opportunity to boost multi- ple category sales by cross-merchandising RTEC with perimeter items, especially produce. As an example, with produce sales up 4.2 percent in 2014 and on track to keep growing in 2015, 55 retailers can piggyback on the produce aisle's success by cross-merchandising key items, such as bananas or blueberries, with cereal. Ce- real's high penetration and destination status can create an extra purchase in these categories or an impulse purchase for both categories. Yogurt, eggs, bacon, cream cheese and, of course, milk also have high penetration among buyers of several leading cereal brands. 56 7 R T E C A N D H I G H E R C E N T E R S T O R E S A L E S Total U.S. center store feature and display lift 189 193 299 57 170 110 130 157 174 264 271 275 201 405 526 284 297 381 225 Bread/ baked goods Snacks Cheese Milk Carbo- nated bever- ages Beer Pre- pared foods– frozen Wine Condi- ments/ gravies/ sauce Cereal Juice drinks– shelf stable Candy Cofee Yogurt Bottled water Granola/ yogurt bars Toaster pastries- shelf stable Break- fast bars Crackers Dollars F&D lif Source: Nielsen Store View, 52 weeks through 5/9/15

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