CPGmatters: Coke Activates Brands at Retail With Tests of Video Media
Through a special arrangement, presented here for discussion is an excerpt of a current article from the monthly e-zine, CPGmatters.
Coca-Cola and Meijer learned tons about harnessing in-store video media for shopper marketing from a test they ran a couple of years ago with Coca-Cola Classic. Now both are expanding their respective in-store initiatives with different partners.
Coke has been testing in-store video with Wal-Mart Stores since last fall. Meijer is finishing up an entire new in-store video network that will allow it to target areas throughout its stores.
Specifically, Coke and Meijer set up video screens at checkout, grocery, pet-care and pharmacy during the holiday promotion. A primary clip involved the animatronic polar-bear "mascots" that Coke is famous for bringing out for winter-holiday promotions. Another motif simply featured ice-cold bottles of Coca-Cola Classic.
In a recent presentation, Rob Fleener, Meijer's vice president of marketing, called the results "dramatic." High-single digit percentage gains were directly tied to when and where the in-store network played the 15- and 30-second clips. "Not only did it drive specific Coke sales, but also the whole soft-drink category, although Coke benefited most," he said.
And Coke, Mr. Fleener added, considered the initiative "a very successful program for them because the cost is relatively minimal even with a store-specific program like that."
To Meijer, the test showed the importance of using in-store video mainly to offer customers "immediate gratification."
"A lot of other things [in shopper marketing] are next-shopping-trip kinds of stuff," he explained. "This program also didn't ask people to buy more than they were used to, or to try something unknown to them, or to switch brands. This said to them, 'It's here; this is Coke; you know the taste; try it now.'"
Meijer and the Coca-Cola representatives had also assumed that the video clip depicting the cuddly polar bears having fun with Cokes would be more popular with shoppers.
"But the images of the drink itself, with water glistening on the outside of the cold glass, proved to be a much better driver," Mr. Fleener said. "That was especially true as we continued the program after the holidays. At that point, people were done with the polar bears and ready to move on."
Meijer is now attempting to figure out the best departments for using in-store video and determining the paths of least resistance to repeat success.
For example, fresh seafood may be an area to get some in-store video treatment at Meijer. "Everyone likes it and knows that it's relatively good for you, prepared the right way," Mr. Fleener explained. "But a lot of people are just intimidated; 'What do I do with a fish fillet? How do I cook and prepare it?'
"If we can do things [with in-store video] to help people overcome their apprehension of preparing things that are good for them, then maybe we can get people to do things they haven't tried before."
Discussion Questions: Will in-store video eventually become a primary consumer marketing tool at retail? In what ways do you suspect the technology will prove to be most useful and where will it prove to be more limited?