The Dollar General chain may not be going Hollywood but it is definitely going a bit Madison Avenue with a new in-store television network that will broadcast vendor- and retailer-supplied programming to customers in 500 of the chain's stores in 13 markets. Dollar General plans to have the in-store network in 4,200 locations by September.
The programming on DGTV, as it is known, will be broadcast into stores on 37-inch plasma screens located above an end-cap near the checkout area. The section will also contain Dollar General circulars, coupons and promotional materials.
"We have a large number of customers coming through our door, which provides an attractive option for product vendors," Colby Swann, senior marketing manager for Dollar General, told the In-Store Marketing Institute. "We always want to educate customers about products and services relevant to their lives. DGTV is a great way to do that inside the store, at a point where they can make immediate purchase decisions."
Dollar General's network, installed and managed by SmartPic Advertising, is different than the broadcast services in other stores, according to the vendor.
Jim Elliott, chief executive of SmartPic, said DGTV integrates promotional content with programs going on in the company's stores and on its website.
SmartPic's Elliott estimates that brand messages will reach 10 million shoppers a month at the first 500 stores to begin broadcasting DGTV. When the system rolls out nationally, he projects that 100 million will be exposed to brand messages every month.
Kimberly-Clark, Kraft Foods, Procter & Gamble and Reckitt Benckiser are among the companies that, to varying degrees, are testing DGTV.
"We have a few vendors taking baby steps, while others dove right on in," Mr. Elliott said.
The DGTV ad focus will be on consumables, according to Mr. Swann. That is consistent with the chain's emphasis on food products to increase shopping frequency and capture market share.
Discussion Questions: How effective do you expect in-store television messages to be in influencing product sales with Dollar General customers? Do you see any danger that the number of stores rolling out in-store television networks will diminish their effectiveness on the whole? What are the elements that need to be in place for in-store broadcasting to be at its most effective level?