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

• 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”

HOW CAN YOU COMBAT THESE CHALLENGES?

IF THE SURVIVALIST SHOPPER IS SCALING BACK BECAUSE OF THE RECESSION, HOW DOES FOODMAXX MOTIVATE THEM TO SPEND MORE?

THE PROBLEM

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

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.

IMPLEMENTATION:

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 FEATUREDEND 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.

FIRST, WE SET SOME GUIDELINES IN PLACE TO SUSTAIN CREDIBILITY AND SHOPPER INTEREST.

SO, HOW DO WE MAKE THIS WORK AT THE STORE LEVEL?

NEXT, THIS PROGRAM MUST BE UNDERSTOOD BY YOUR EMPLOYEES

AND EXPLAINED TO YOUR CUSTOMERS.

com⋅mon cents [kom-uhn sents]   

1. customer definition: constantly changing items, marked at the lowest prices in town and all priced well under $1.

2. 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.

START BY CLEARLY DEFINING THE PROGRAM:

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

SO WHERE DO YOU START?

THE “c¢” PROGRAM HAS THE POTENTIAL TO BE WIDLEY ACCEPTED BY YOUR SHOPPERS AND IMPLEMENTED IN MANY AREAS OF YOUR STORE.

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.)