Page 262 - DMGT552_VISUAL_MERCHANDISING

Unit 13: Quality and Process in Visual Merchandising

The Category manager and IT director cosponsored a pilot project to test the effectiveness Notes
of in-store marketing right at the point of a customer’s decision by putting a digital
promotions solution on the meat/seafood service counters in three of their stores.
The retailer selected METTLER TOLEDO as a technology partner to provide the Fresh
Look Content Management Solution and PC-based, UC Professional service counter scales
with large promotional displays.
Marketing Objectives
Category management intended to test effectiveness of in-store digital promotions to
enhance the traditional use of an in-store, printed, weekly shopper. The category
merchandising team duplicated promotions from the weekly shopper to the
promotional screens on the service counter scales. Each week, Fresh Look CMS broadcast
3 to 5 promotions per week based on items chosen from the retailer’s printed weekly
shopper.
Promotions for meat & seafood category items and cross-selling items were included in
the test. Pilot target measures for sales lift of 10% or greater would be considered an
excellent result.
Marketing Process

Category Merchandising selected 3 to 5 promotions per week from the weekly shopper ad
schedule. Artwork for promotion spots were provided by the retailer’s marketing
department in order to meet branding guidelines. Sign-off and approval of promotion
spots were received prior to automated distribution out to individual stores and scale
devices.
Using common graphic design elements, the additional in-store promotions added
approximately 1–2 hours per week in additional work for the marketing department

Test Methodology
The performance measure for the pilot program was to compare items promoted only in
the weekly shopper to items also promoted on the service counter scales. Sales growth of
promoted items in the 3 test stores was compared to sales growth of the same items in the
22 control stores.

The pilot involved a total of 9 service counter scales, 3 in each Meat/Seafood department.
The pilot program began in late 2009, with the weeks leading up to and including both
Thanksgiving and Christmas excluded from the test results. Also excluded were results
from the top two performing control stores and bottom two performing control stores for
each promoted item.
Results
Same item weekly sales were compared between the test stores and control stores. Based
on 13 weeks of data, the In-store promotion was shown to have delivered +11.5% sales
growths above controls stores with only weekly shopper promotions. After the pilot test
and over an additional 33 week period, sales growth performance continued to average
+13.2%.
Subjective results were positive, as well. Department managers confirmed that the service
counter solution was creating sales lift. One noted, “[Customers] are asking our associates
about promoted items all the time.”
Contd...

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