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July 2006 - Strategy Magazine
Where next

Retail hook-ups heat up
As big box promo options narrow, brands team up to extend their reach

by Lisa D'Innocenzo
page 29

Time-pressed grocery shoppers aren't going to venture down the cereal aisle in Loblaws unless they need cereal. Nor are they going to seek out the music section of Wal-Mart unless they really want that new Pearl Jam CD.

Accepting this harsh reality, marketers realize that getting outside of their traditional position inside retail environments is key to gaining trial and awareness and that teaming up with bigger brands - particularly those that have more influence at retail - is a surefire way to achieve these goals.

James Fraser, MD/channel marketing at Toronto-based promo agency Capital C, calls it the "horse-and-rider" strategy and says it makes a lot of sense, particularly for smaller packaged goods companies who can leverage mass awareness of larger brands. Not only does the "rider" brand get exposure outside its typical aisle, it can also benefit from POS and flyer support and the opportunity to drive trial, he says.

As an example, Fraser points to a co-promo he stumbled across in early May - a chance to pick up a free loaf of Country Harvest bread with the purchase of a large tub of Becel margarine. "For Becel, the benefit is getting that name out there with a great offer, but they aren't eroding the brand at all," he says. "For Country Harvest Bread, they get sampling out of it - and new customers."

For Blaine Schwingenschlegel, manager of national accounts at Toronto-based Sony BMG Music Canada, it's all about getting outside of what he calls the "music bullpen" of big box retailers. "Not every shopper goes into [the department] obviously, so I try to develop ideas that get me exposure out of the department."

He adds: "The retail space is now more important than ever, because everyone knows physical CD sales are down, and we're now competing for space with DVD companies and all the other labels. Yet we have just as many titles as we've ever had, and we need to be positioned at the right place. The more people see the CDs we have, the more they'll buy them."

Fortunately, Schwingenschlegel has several nifty promos up his sleeve that should help him overcome the challenge of shrinking shelf space by carving out a presence elsewhere. One is Sony BMG's involvement with the Dairy Farmers of Canada's current "Moo You Win" promotion. Consumers buy a carton of milk and if it moos when they open it, they win. The grand prize is a trip for two to see Sony BMG operatic quartet Il Divo in Scotland. As a result of the deal, the band gets exposure from collateral hung on clipstrips in the refrigerator aisle, right next to the milk, as well as mention in a TV spot, by Toronto agency Due North Communications, highlighting the promo.

The record label has also connected with Hershey for its Country Kisses campaign, which will begin at Zellers stores this month. Featuring several of Sony BMG's country artists, the promo involves a free bag of Kissables with a purchase of any one of the CDs. Says Schwingenschlegel: "From Hershey's perspective, they're aligning themselves with music inside Zellers in an out-of-department area for them, and they get to give their potential customer a chance to taste their product. For us, we add value to the purchase of a CD, we get in-store signage, we get better placement in the store and we get block racking for multiple titles that fit a certain demographic."

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