USPB Best Practices In-Store Communication. February 2013

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1 USPB Best Practices In-Store Communication February 2013

2 Best Practices Best Practices can be defined as a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark. The USPB is committed to the adoption of best practices in the sales and marketing of fresh potatoes at retail, and continues to invest in the identification and validation of promising new approaches for increasing category volume and profitability. The USPB s toolkit of proven Best Practices are focused around 7 areas: Assortment Merchandising In-Store Communication Pricing Promotion Packaging Training 2

3 Best Practices in In-Store Communication

4 Best Practices in Communication In-Store Communication Objectives Provide the right information to shoppers for making their purchase decisions Increase potato category sales by educating shoppers on potato preparation ideas and nutritional benefits Create excitement and motivate incremental consumption through suggesting new recipes and preparation ideas In-Store Communication Considerations Existing shelf signage system Store policies & philosophies regarding shopper communication Availability of additional communication vehicles (e.g. iron man signs, electronic monitors) 4

5 Best Practices in Communication 1. At the absolute minimum, always clearly communicate potato type, package size and unit pricing to shoppers at the potato table. 2. Use shelf signage, packaging and displays to: a. provide suggestions for meal solutions, innovative preparation methods as well as specific recipes. b. communicate the nutritional benefits of potatoes. c. educate shoppers on the differing qualities of potato types, celebrating their uniqueness and encouraging the trial of new/additional types. 3. Merchandise potato displays outside the produce department to create additional awareness with shoppers, especially when located adjacent to complementary meal elements such as fresh meat, dairy and deli. 4. Provide take-one potato recipe cards or tearpads merchandised adjacent to complementary products like dairy, meat or spices & seasonings. Tests have shown that this simple tactic can increase potato category sales nearly 7% while increasing complementary product sales more than 5%. 5

6 Best Practices in Communication In priority order, these are the most effective messages to utilize for in-store communications: 1. Here is a new, delicious (and somewhat unexpected) way to enjoy potatoes 2. Potatoes are a nutritious, natural and wholesome food 3. Your family loves potatoes, and loves when you serve them 4. There are many types of potatoes with qualities that excel in different dishes try something new! 5. Potatoes are a terrific value that makes your family s food dollars go further 6

7 Communication Delivers Big Results! Secondary displays of potatoes were tested in the fresh meat sections of selected stores of an East-coast chain during a 90-day period 6 different 1.5lb packages were featured in rotation on the display unit, supported with themed header signs and take-one recipe cards Sales were monitored & analyzed vs. a matched panel of control stores Test stores averaged $425/week higher overall category sales, outperforming control stores in: Overall Category $ Sales +15.8% $ Sales of Featured Items up to +78% Fresh Meat Sales* +2.0% Total Basket Ring* +2.0% (Test Period (5/7/11-7/30/11) 7 * For purchases that included one or more of the featured potato items Source: Nielsen Perishables Group FreshFacts and Retailer Loyalty Card Data

8 Simple Tactics Drive Added Sales Potato breakfast recipe cards were featured in 24 test stores over an 8 week period, placed adjacent to eggs, bacon and breakfast sausage 4 different recipes were featured each cycle, and new recipe cards were rotated in every 2 weeks Analysis of sales at test and control stores proved recipe cards were successful at driving shoppers to purchase more potatoes! Total potato category dollar sales were 5.6% greater in test locations vs. the matched panel of control stores over the 8-week program, averaging $133 per store/per week in added sales Test stores continued to outpace control stores after the test period ended, widening the sales gap with dollar sales running 6.9% higher Complementary breakfast categories benefitted as well, with test stores averaging $346 per store/week higher in total complementary product sales during the post-test period, or 5.7% of their total sales 8

9 5 Key Reco s for Industry Members Improve the messaging elements that you can control directly (i.e. packaging, cartons) to maximize their communication effectiveness Influence those messaging elements controlled by the retailer, showing them information on the opportunity for increased shopper communication and providing recommendations for effective messaging (i.e. retailer s packaging, retailer s website, in-store signage and retailer circular) Offer to invest in additional merchandising elements that can assist retailers in providing information and ideas to their potato shoppers (e.g. point-of-sale, kwik loks, on-pack stickers, display units) When providing recipes, emphasize the innovative and unexpected (e.g. potato tacos) over the usual (e.g. baked or mashed) Be current, relevant and newsworthy leverage recent PR or media mentions that support the communication goals 9

10 USPB Tools and Resources The USPB provides valuable resources for assisting you with implementing Best Practices in In-Store Communication. A wide range of compelling point-of-sale materials are posted on the USPB s Resource Center for the industry to use. These materials can be downloaded and printed to provide an instant boost to retail sales. The USPB s consumer website, also offers a wealth of recipes and high-resolution photography that is available for use by industry members and the retail trade free of charge. The USPB maintains a library of case studies recapping our Test & Learn programs that have involved in-store communications, including the use of shelf signs/iron man posters, recipe card cross-merchandising, and out-of-department displays. Utilize these case studies with retail customers to illustrate the additional category volume that can be realized through increased in-store communication. The USPB has conducted extensive research into the beliefs and behaviors of potato shoppers, yielding valuable insights into the most effective methods of influencing shoppers to increase potato sales. Check out the research reports and video summaries that you ll find posted on the USPB s Resource Center. 10