CPGmatters: Dannon Expands Dairy Space With Mobile Display Cooler
By Dale Buss
a special arrangement, presented here for discussion is an excerpt of a
current article from the monthly e-zine, CPGmatters.
To find shelf space for retailers
to sell its fast-selling DanActive and Activia brands, Dannon USA recently
formed what it calls a “Shelf Obsession Team” that came up with
a mobile cooler that organizes and promotes the health benefits of yogurt
products. The Proactive Health kiosk has already been rolled out to more
than 2,500 participating stores.
the probiotic yogurt-based “daily-shot” beverage, and Activia,
a probiotic yogurt, have been so strong, Michael Neuwirth, marketing communications
manager for Dannon USA, recalled, “that it was growing faster than
the linear footage of the shelves. So we were leaving uncaptured growth
in the stores – both us and the stores themselves.”
constructed a shopper decision tree to identify the No. 1 drivers when
people shop, as well as what are the second-level decision-makers and the
yogurt,” Marc Jove, senior vice president of marketing for Dannon
USA, said, “consumers typically enter by benefit, sort of, ‘Help me
with my issues.’ Once you’re in the category, the next decision level is
brand, then flavor, then format.”
the capital involved in establishing and maintaining refrigerator space
in stores, the dairy sector tends to be one of the most fixed spaces in
we had to get some reallocation of space to faster-growing areas – yogurt – so
what loses?” Mr. Neuwirth said. “We helped stores to understand
that it didn’t have to be a single section as much as some from a combination
of categories, butter among them.”
agreed with their objective, however, Dannon USA still had to take maximum
advantage of the opportunity both for sales of their products and for their
retailer partners. The solution devised by the Shelf Obsession Team was
a dedicated, refrigerated display unit that it calls a Proactive Health
go in or around the dairy section,” Mr. Neuwirth said. “They
help shoppers and become disruptive in the store from a traffic perspective.
They invite shoppers to stop and look inside.” And, he added, the
kiosks don’t necessarily have to take space away from other dairy categories;
they can be
“incremental” for the overall dairy segment.
But the kiosks
are reserved for dairy products that have promoted and acknowledged “functional
benefits.” Sections of the cooler are color-coded to help consumers
quickly identify the benefits provided by a given product: green for digestive
benefits, yellow for immunity benefits. “It helps the shopper understand
what’s in there,” Mr. Jove said.
been renting the coolers to retailers for “a limited period of time,” Mr.
Jove said, and the company moves some of them from one store to another. “If
the retailer decides that we’re there to stay, we end up reaching an agreement
with them,” he said. “It depends on the partnership you have
with your customer.”
What do you think of Dannon’s Proactive Health kiosks?
How open do you think grocers will be to such kiosks? Can many
other categories benefit from educational/promotional kiosks in grocers?