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?
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.
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
