WHAT: Drive Success by Creating Consumer Dependency
WHEN: Friday, Oct. 12, 2:45-4 p.m.
WHERE: Room 351
Produce suppliers are getting savvy.
Simple price reductions aren't enough to win over retailers anymore. So, suppliers are suggesting produce promotions that incorporate multiple products and eye-catching displays.
Events centered on locally grown foods are highly effective. So are mix-and-match sales that lump like items together.
Regardless of the theme, promotions are getting better, thanks in large part to increased communication between the two parties, retailers told SN.
Highland Park Markets, Glastonbury, Conn., recently ran a produce event proposed by local growers. The concept was simple yet successful, according to Tim Cummiskey, grocery manager for the retailer.
“A group of farmers that supply our stores got together and asked if we would consider putting up a farmers' market-style display in our stores,” he said.
“The idea was to support local growers, which we are realizing more and more is very important to our customers.”
The display consisted of rows of apple bins stuffed with corn, green beans, cucumbers, tomatoes, apples and other locally grown produce. Bag dispensers flanked the produce for convenience, and special signage highlighted the local connection.
“We got a lot of ‘oohs’ and ‘aahs’ from customers, sales were up, and the local farmers were very happy with the results, too,” Cummiskey told SN.
Dahl's Food Markets, Des Moines, Iowa, has experienced similar success with grower-focused promotions. This year, the chain ran a summer-long sale highlighting Iowa sweet corn — 12 ears for $3.50.
“We hung banners in our stores and along the roadside, and we ended up moving a lot of corn as a result,” said Dick Rissman, produce manager for Dahl's.
“During the fall, we usually promote Colorado peaches. They tend to be a little sweeter than other peaches, and because they are grown in Colorado, they don't need to be transported as far, so they are picked later and stay fresh longer in our stores.”
Such promotions are ideal, as they require little effort on the retailer's part while addressing consumers' interest in fresh, locally grown produce, said Rissman.
Events that tie in several varieties of produce are also effective, said Ron Pelger, president, RonProCon, a produce consulting firm based in Reno, Nev.
Pelger recalled a creative concept from his retail days in Rhode Island.
“There were a lot of Italians who shopped at the store where I worked in Providence, so we worked with suppliers to create an ‘Isle of Capri’ promotion,” he said.
A large sign was hung over the display, and Italian produce such as artichokes and broccoli rabe was merchandised together to create a scene reminiscent of the Mediterranean island.
The promotion went over well with shoppers, a feat Pelger attributes to the cooperative effort between the store and its suppliers.
“The key is for suppliers and retailers to act as partners when pushing produce,” he said. “They should meet halfway on promotions, communicating each of their needs along the way so it's a win-win for them both.”
Ela Farms, Hotchkiss, Colo., is committed to communication, said Steve Ela, partner and manager at the organic farm, which supplies organic apples, peaches, pears and cherries to Whole Foods and independent retailers.
The company provides literature about the farm, offers to demo its fruit in local stores and routinely asks a list of detailed questions to ensure that stores' needs are being met.
“We give our retail customers signs with information about each type of fruit, information about our fourth-generation organic farm and verbiage stating that [the fruit] was grown in Colorado,” said Ela.
“We're also constantly talking with retailers, letting them know what fruit we will have ready soon so they can make room for it, and feeding them facts that they can pass along to the consumer.”
Duda Farm Fresh Foods, Salinas, Calif., has convinced retailers to try a unique celery-only promotion in recent years, which has not included a price reduction, just six different types of celery.
“The promotion achieved great results, driving the category to increased sales and margins,” said Rick Alcocer, vice president of vegetable sales for the company.
Alcocer prods Duda Farm's retailer clients to offer as much information as possible on new produce, especially products that have new packaging, are portion-controlled or are unique varieties imported into the U.S. Produce managers could also take a cue from other departments and stack recipe cards next to their fruits and vegetables, he said.
Fresh Encounter, Findlay, Ohio, works closely with suppliers each year to offer an all-berry promotion. According to Dick Hastings, director of produce for the chain, there's something about grouping produce that is not only visually appealing, but boosts sales as well.
“We run a ‘Berry Patch’ promotion that always does well. We merchandise fresh blueberries, blackberries, strawberries and raspberries together and let shoppers mix and match,” he told SN. “We usually run the promotion at three for $3.”
Fresh Encounter has also been promoting an “Eat Local Food” campaign throughout its stores in recent years. The program is very popular with shoppers, particularly when it comes to produce, said Eric Anderson, vice president of sales and marketing for the retailer.
“We have entire displays of nothing but local produce, set up like a small farmers' market, and we frequently put pictures of the local farmers that grow the food in our ads,” said Anderson.
“It's been a very effective strategy for us, but now we're seeing some of our big competitors' ads starting to look exactly like ours.”
The program has also attracted suppliers. One grower liked the “Eat Local Food” concept so much that he offered to commit a portion of his acreage to cultivating produce exclusively for Fresh Encounter, Anderson noted.
Promotions are important, but if suppliers want to truly create customer dependency, their emphasis should be on all-encompassing marketing strategies, said Lorna Christie, senior vice president of industry products and services for Produce Marketing Association, Newark, Del.
“A promotion is one tool in the marketing kit, but other tools, like merchandising and packaging, are also important and should be considered,” said Christie.
Suppliers and retailers have to work together, though, or consumer needs won't be adequately addressed, she said.
In order to work as a team, there has to be communication between the two parties, said Robyn Pekowski, associate partner, DMA Solutions, Dallas.
Pekowski will be speaking about the importance of communication at the PMA Fresh Summit in October during the session “Drive Success by Creating Customer Dependency.”
“Suppliers can create customer dependency by understanding the needs of their customers — and the needs of their customers' customers,” she said.
“The whole premise of the session will be to help suppliers learn how to ask better questions and how to communicate more thoroughly with retailers so they can meet their exact needs.”
According to Pekowski, her presentation will center on value-based selling. In the case of produce, value-based selling means emphasizing features like flavor and quality instead of price and poundage, she said.
The session will also have an interactive component. Attendees will be given wireless response devices and asked questions about the challenges of selling produce in a commodity-driven sales environment.
The session itself is the result of input from suppliers and retailers. PMA surveyed its members, asking about challenges they face. Connecting with customers was one of the most common responses. “Members wanted to learn more about building relationships with their retail customers,” Christie said.