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SHOPPING CART STIMULUS PLAN
LAST MEETING WE…
•   DISCUSSED SPECIFIC CHALLENGES
    FOODMAXX IS FACING
•   RE-EXAMINED OUR LOW PRICE + POSITION
•   CONFIRMED THAT WE WILL CONTINUE WITH
    “LOW PRICE+ ” AS OUR POINT OF
    DIFFERENCE
CHALLENGES
•   DECREASE IN AVERAGE TICKET
•   DECREASE IN WEEKEND TRAFFIC
•   INCREASE IN COMPETITIVE ACTIVITY
    PROMOTING “LOW PRICE”
    MESSAGING
•   ANTICIPATED SHOPPER “TRADE-
    DOWN” FROM CONVENTIONAL
    MARKETS DID NOT OCCUR
WHAT’S HURTING FOODMAXX?
  •   SURVIVALIST SHOPPERS ARE FORCED TO
      TIGHTEN THEIR BELTS EVEN MORE.
       – Spending less on groceries
          • Trading down in-store
          • Cutting out impulse purchases
       – Decrease in shopping occasions
          • Shopping closer to pay day
HOW CAN YOU COMBAT
       THESE CHALLENGES?
•   ONE OPPORTUNITY IS WITH THE EXISTING
    FOODMAXX SHOPPER…
    – MOTIVATE THEM TO SPEND MORE
    – STRENGTHEN YOUR VALUE PERCEPTION BY MAKING
      THEM FEEL THAT THEY CAN AFFORD THE THINGS
      THEY “NEED” AND SOMETIME EVEN THE LITTLE
      EXTRAS THEY “WANT”
THE PROBLEM
IF THE SURVIVALIST SHOPPER IS
SCALING BACK BECAUSE OF THE
RECESSION, HOW DOES FOODMAXX
MOTIVATE THEM TO SPEND MORE?
THE SOLUTION:
CREATE A PERCEPTION OF
   IN-STORE SAVINGS.
INTRODUCING:




YOUR FAVORITE PRODUCTS ARE JUST PENNIES.
THE “common ¢ents” OBJECTIVE:
     – INCREASE CART SIZE AND STIMULATE
       IMPULSE PURCHASES
     – CREATE AN ENVIRONMENT THAT CELEBRATES
       YOUR LOW PRICES
     – REINFORCE THE FOODMAXX LOW PRICE
       PROMISE
IMPLEMENTATION:
DRAW ATTENTION TO ITEMS THAT ARE
FAR BELOW ONE DOLLAR USING:
In-store signs, the wall of values, end caps,
tables and on-shelf stickers.
FOR STARTERS:
UPON ENTRY INTO THE STORE, CUSTOMERS ARE
      MADE AWARE OF THIS PROGRAM.
THE WALL OF VALUES
COULD FEATURE ALL “C¢” ITEMS
(DO THIS TEMPORARILY OR PERMANENTLY.)
AFTER THAT
THE TREASURE HUNT BEGINS…

   PEPPER “c¢” SIGNAGE
 THROUGHOUT THE STORE.
DESIGN NEW SHELF TAGS OR SIMPLY APPLY
A “c¢” STICKER NEXT TO AN EXISTING TAG.
ANOTHER EXAMPLE OF STICKERS VS. SHELF TAGS
 (INSTEAD OF WRITING 4/100 WRITE .25 CENTS)
DRAW
  ATTENTION
TO FEATURED
   END CAPS
HAVE “C¢”
SIMPLE MEAL
SOLUTIONS
WHERE EVERY
ITEM FOR A
COMPLETE MEAL
IS UNDER A
DOLLAR
(INCLUDING
DESSERT)
DROP
STAND-ALONE
PALETTES
IN UNIQUE
LOCATIONS
USE SIGNAGE IN PRODUCE…   ON STAPLES…
UNPLANNED INDULGENCES…
MAKE IT A TREASURE HUNT
AND AT THE END
OF THEIR SHOPPING TRIP,
 GIVE THEM SOMETHING
       TO GAZE AT
WHILE THEY STAND IN LINE.
A SIMPLE REMINDER OF IN-STORE SAVINGS
   THEY MAY HAVE MISSED THIS WEEK…
    THAT MIGHT NOT BE HERE… NEXT WEEK.
SO, HOW DO WE MAKE THIS
WORK AT THE STORE LEVEL?

FIRST, WE SET SOME GUIDELINES
IN PLACE TO SUSTAIN CREDIBILITY
AND SHOPPER INTEREST.
NEXT, THIS PROGRAM MUST BE
UNDERSTOOD BY YOUR EMPLOYEES
    AND EXPLAINED TO YOUR
          CUSTOMERS.
START BY CLEARLY DEFINING
      THE PROGRAM:
com⋅mon cents [kom-uhn sents]   
•   customer definition:
    constantly changing items, marked at the lowest
    prices in town and all priced well under $1.

•   marketing department definition:
    FoodMaxx Supermarket’s proprietary in-store
    communications and merchandising program
    designed to increase cart size through impulse
    purchase and to strengthen our value perception
    via emphasis on our lowest priced merchandise.
THEN SPREAD
    THE WORD
•   Poster stands will greet shoppers
    at the store entrance introducing
    them to common cents

•   Employees will be armed with the
    customer definition of common
    cents

•   Flyers will be distributed
    to shoppers at the
    checkout
FINALLY, ONCE ALL
  COMPONENTS ARE UP AND
RUNNING IN-STORE, IT’S TIME
 TO STIMULATE EXCITEMENT
  AMONG YOUR SHOPPERS.
CREATING EXCITEMENT
                          •   OFFER SHOPPERS A BOUNCE-
                              BACK COUPON THROUGH
                              CATALINA
                               – Buy xx common cents items and
                                 get x free on your next visit


•   ADDED VALUE SUPPORT
     ●
       Radio partners will feature promotions and remotes
       highlighting the program
•   RADIO TAG SUPPORT
     ●
       Promotional radio tags will push common cents and
       feature key items
THE “c¢” PROGRAM HAS THE
POTENTIAL TO BE WIDLEY
ACCEPTED BY YOUR SHOPPERS
AND IMPLEMENTED IN MANY
AREAS OF YOUR STORE.

SO WHERE DO YOU START?
WE’VE SCALED IT DOWN TO ROLL OUT
    IN PHASES, ALLOWING TIME
        TO GAIN MOMENTUM.

 – PHASE ONE: THE OBJECTIVE OF THE FIRST PHASE IS
   GETTING THE IN-STORE COMMUNICATIONS UP AND
   RUNNING IN A SINGLE TEST MARKET.
PHASE TWO AND BEYOND:

 AFTER 8 WEEKS, WE WILL EVALUATE THE
 SUCCESS OF THE PROGRAM, GAUGE
 CUSTOMER RESPONSE, SALES AND
 DETERMINE POTENTIAL OPPORTUNITIES
 FOR EXPANSION.

 FUTURE IMPLEMENTATION MAY INCLUDE:
 • EXTENDING THE PROGRAM INTO
 ADDITIONAL MARKETS
 • PERMANENT SIGNAGE
 • PERMANENT WALL OF VALUES PROGRAM
 • MEAT AND PRODUCE IMPLEMENTATION
 • HOLIDAY “C¢” END CAPS, ADS PACKAGES…
 • DEDICATED RADIO SPOTS
THANK YOU
(We hope this makes ¢ents.)

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FoodMaxx Shopping Cart Stimulus

  • 2. LAST MEETING WE… • DISCUSSED SPECIFIC CHALLENGES FOODMAXX IS FACING • RE-EXAMINED OUR LOW PRICE + POSITION • CONFIRMED THAT WE WILL CONTINUE WITH “LOW PRICE+ ” AS OUR POINT OF DIFFERENCE
  • 3. CHALLENGES • DECREASE IN AVERAGE TICKET • DECREASE IN WEEKEND TRAFFIC • INCREASE IN COMPETITIVE ACTIVITY PROMOTING “LOW PRICE” MESSAGING • ANTICIPATED SHOPPER “TRADE- DOWN” FROM CONVENTIONAL MARKETS DID NOT OCCUR
  • 4. WHAT’S HURTING FOODMAXX? • SURVIVALIST SHOPPERS ARE FORCED TO TIGHTEN THEIR BELTS EVEN MORE. – Spending less on groceries • Trading down in-store • Cutting out impulse purchases – Decrease in shopping occasions • Shopping closer to pay day
  • 5. HOW CAN YOU COMBAT THESE CHALLENGES? • ONE OPPORTUNITY IS WITH THE EXISTING FOODMAXX SHOPPER… – MOTIVATE THEM TO SPEND MORE – STRENGTHEN YOUR VALUE PERCEPTION BY MAKING THEM FEEL THAT THEY CAN AFFORD THE THINGS THEY “NEED” AND SOMETIME EVEN THE LITTLE EXTRAS THEY “WANT”
  • 6. THE PROBLEM IF THE SURVIVALIST SHOPPER IS SCALING BACK BECAUSE OF THE RECESSION, HOW DOES FOODMAXX MOTIVATE THEM TO SPEND MORE?
  • 7. THE SOLUTION: CREATE A PERCEPTION OF IN-STORE SAVINGS.
  • 9. THE “common ¢ents” OBJECTIVE: – INCREASE CART SIZE AND STIMULATE IMPULSE PURCHASES – CREATE AN ENVIRONMENT THAT CELEBRATES YOUR LOW PRICES – REINFORCE THE FOODMAXX LOW PRICE PROMISE
  • 10. IMPLEMENTATION: DRAW ATTENTION TO ITEMS THAT ARE FAR BELOW ONE DOLLAR USING: In-store signs, the wall of values, end caps, tables and on-shelf stickers.
  • 11. FOR STARTERS: UPON ENTRY INTO THE STORE, CUSTOMERS ARE MADE AWARE OF THIS PROGRAM.
  • 12. THE WALL OF VALUES COULD FEATURE ALL “C¢” ITEMS (DO THIS TEMPORARILY OR PERMANENTLY.)
  • 13.
  • 14. AFTER THAT THE TREASURE HUNT BEGINS… PEPPER “c¢” SIGNAGE THROUGHOUT THE STORE.
  • 15. DESIGN NEW SHELF TAGS OR SIMPLY APPLY A “c¢” STICKER NEXT TO AN EXISTING TAG.
  • 16. ANOTHER EXAMPLE OF STICKERS VS. SHELF TAGS (INSTEAD OF WRITING 4/100 WRITE .25 CENTS)
  • 17. DRAW ATTENTION TO FEATURED END CAPS
  • 18. HAVE “C¢” SIMPLE MEAL SOLUTIONS WHERE EVERY ITEM FOR A COMPLETE MEAL IS UNDER A DOLLAR (INCLUDING DESSERT)
  • 20. USE SIGNAGE IN PRODUCE… ON STAPLES…
  • 22. MAKE IT A TREASURE HUNT
  • 23. AND AT THE END OF THEIR SHOPPING TRIP, GIVE THEM SOMETHING TO GAZE AT WHILE THEY STAND IN LINE.
  • 24. A SIMPLE REMINDER OF IN-STORE SAVINGS THEY MAY HAVE MISSED THIS WEEK… THAT MIGHT NOT BE HERE… NEXT WEEK.
  • 25. SO, HOW DO WE MAKE THIS WORK AT THE STORE LEVEL? FIRST, WE SET SOME GUIDELINES IN PLACE TO SUSTAIN CREDIBILITY AND SHOPPER INTEREST.
  • 26.
  • 27. NEXT, THIS PROGRAM MUST BE UNDERSTOOD BY YOUR EMPLOYEES AND EXPLAINED TO YOUR CUSTOMERS.
  • 28. START BY CLEARLY DEFINING THE PROGRAM: com⋅mon cents [kom-uhn sents]    • customer definition: constantly changing items, marked at the lowest prices in town and all priced well under $1. • marketing department definition: FoodMaxx Supermarket’s proprietary in-store communications and merchandising program designed to increase cart size through impulse purchase and to strengthen our value perception via emphasis on our lowest priced merchandise.
  • 29. THEN SPREAD THE WORD • Poster stands will greet shoppers at the store entrance introducing them to common cents • Employees will be armed with the customer definition of common cents • Flyers will be distributed to shoppers at the checkout
  • 30. FINALLY, ONCE ALL COMPONENTS ARE UP AND RUNNING IN-STORE, IT’S TIME TO STIMULATE EXCITEMENT AMONG YOUR SHOPPERS.
  • 31. CREATING EXCITEMENT • OFFER SHOPPERS A BOUNCE- BACK COUPON THROUGH CATALINA – Buy xx common cents items and get x free on your next visit • ADDED VALUE SUPPORT ● Radio partners will feature promotions and remotes highlighting the program • RADIO TAG SUPPORT ● Promotional radio tags will push common cents and feature key items
  • 32. THE “c¢” PROGRAM HAS THE POTENTIAL TO BE WIDLEY ACCEPTED BY YOUR SHOPPERS AND IMPLEMENTED IN MANY AREAS OF YOUR STORE. SO WHERE DO YOU START?
  • 33. WE’VE SCALED IT DOWN TO ROLL OUT IN PHASES, ALLOWING TIME TO GAIN MOMENTUM. – PHASE ONE: THE OBJECTIVE OF THE FIRST PHASE IS GETTING THE IN-STORE COMMUNICATIONS UP AND RUNNING IN A SINGLE TEST MARKET.
  • 34. PHASE TWO AND BEYOND: AFTER 8 WEEKS, WE WILL EVALUATE THE SUCCESS OF THE PROGRAM, GAUGE CUSTOMER RESPONSE, SALES AND DETERMINE POTENTIAL OPPORTUNITIES FOR EXPANSION. FUTURE IMPLEMENTATION MAY INCLUDE: • EXTENDING THE PROGRAM INTO ADDITIONAL MARKETS • PERMANENT SIGNAGE • PERMANENT WALL OF VALUES PROGRAM • MEAT AND PRODUCE IMPLEMENTATION • HOLIDAY “C¢” END CAPS, ADS PACKAGES… • DEDICATED RADIO SPOTS
  • 35. THANK YOU (We hope this makes ¢ents.)