Monday, December 17, 2007

Kosher For Chanukka Ham?!


Grocery Store Goofs With Hanukkah Ham Ad

Dec 7, 2007

NEW YORK (AP) — This was REALLY not kosher.

A grocery store in Manhattan made a food faux pas, advertising hams as "Delicious for Chanukah."

Chanukah — an alternate spelling for Hanukkah — is the eight-day Jewish holiday that began Tuesday evening, and hams — as well as pork and other products from pigs — can't be eaten under Jewish dietary laws.

A woman who saw the mistake over the weekend at the Balducci's store on 14th Street took pictures of the signs and posted them on her blog.

Jennifer Barton, director of marketing, told The Associated Press on Thursday that the signs were changed as soon as the error was noted.

She issued an apology on the company Web site, saying the company would be reviewing its employee training.

Friday, December 14, 2007

New Study: Gender, Age Affect Natural, Organic Preferences

Gender, Age Affect Natural, Organic Preferences: Study

DECEMBER 14, 2007 -- CHICAGO -- As natural and organic foods continue to grow in popularity, but they are growing in different ways for different consumers research by foodservice consultants Technomic based here found that women place significantly more importance on being able to select from a wide variety of natural, organic and sustainable food offerings when shopping for food or dining out - although overall interest was strong for both men and women.

Technomic says the findings suggest, among other things, that marketing campaigns for "healthy" food categories may find greater success if targeted by gender. The market researcher said the survey was prompted by growing interest in understanding and meeting consumers' demands for healthy food options, especially in foodservice venues. Products labeled as natural or organic have seen double-digit sales growth in recent years and now represent close to $21 billion annually.

"One of our more compelling findings is that younger consumers seem to have a stronger affinity for natural, organic and sustainable menu items," said Darren Tristano, Technomic Information Services' e.v.p. Even though older Americans have particular concerns about health and specific diet-related health issues, they may represent the slowest adopters of organic and natural foods, said Tristano.

Seven out of 10 survey respondents (71 percent) associate items menued as natural, organic and sustainable with the idea of healthfulness, and nearly as many (62 percent) connect them with using the freshest ingredients. However, only 41 percent associate organic, natural and sustainable ingredients with a perception of quality. Even fewer associate "good taste" with these items, and only 18 percent see them as good values.

Thursday, December 13, 2007

Safeway Adds Organic Grocery Sales Outside it's Network

DECEMBER 14, 2007 -- PLEASANTON, Calif. -- Safeway Inc. plans to sell its O Organics line of organic foods outside its store network, following a strategy similar to that of its Blackhawk gift card network, which the retailer now offers to competitors.

During an investors conference here yesterday, Safeway said it is developing partnerships to sell the organic line in Asia and South America. It also recently inked an agreement with food service distributor Sysco Corp. to sell the products to the foodservice segment.

"We're in the process of monetizing that brand," Safeway c.e.o. Steve Burd said.

The O Organics line has grown to 300 items since its 2006 launch. Safeway said it expects the line to reach $300 million in sales for 2007, up from $164 million last year.

Safeway set its 2008 earnings per share guidance at $2.25 to $2.35 for the 53-week year ($2.21 to $2.31 for a comparable 52-week year), and said it anticipates that strong contributions from Lifestyle stores and product innovation will deliver ID sales growth (excluding fuel) in a range of 3 percent to 3.2 percent for the year.

The retailer plans to spend approximately $1.70 to $1.75 billion in capital expenditures in 2008 to build 20 to 25 new Lifestyle stores and remodel from 250 to 255. It expects to generate free cash flow (cash flow from operating activities less cash flow used by investing activities) in 2008 in the range of $500 million to $700 million.

"Innovation has been, and will continue to be, the key to our success," said Steve Burd, chairman, president, and c.e.o. "We have developed highly successful programs to reduce costs, improve service, enhance the quality of products and the shopping environment, and have established new growth vehicles. We believe this will ensure our long-term growth."

Safeway operates 1,738 stores in the United States and western Canada and had sales of $40.2 billion in 2006.

Tuesday, December 11, 2007

Grocery Store Checkout Innovation

By Joseph Tarnowski

NOVEMBER 15, 2007 -- Every grocer wants to see customers smiling as they walk out the door, and will go to great lengths to win those smiles, including stocking huge varieties of fresh produce, sourcing hard-to-find specialty foods, installing walk-in health clinics, and, at the extreme, launching expensive total store redesigns to enhance the shopping experience.

But one thing's pretty much guaranteed to be underplayed, if not totally overlooked: the front end checkout area, which constitutes a shopper's final experience in the store and a retailer's last -- and, some might argue, best -- opportunity to wow a customer.

The design, offerings, and go-to-market strategy of the front end has remained essentially unchanged for the past 50 years. And while many studies in recent years have analyzed the assortment of products merchandised around the checkout, usually in an attempt to find some ideal mix, apparently none have taken the further step to question whether the front end itself could use some reinventing.

None, until now. To ask such questions is what Progressive Grocer, Wilton, Conn.-based management consulting firm Meridian Consulting Group, and Los Angeles-based design firm Shook Kelley have set out to do, with an extensive research project designed to determine the grocery store front end's contribution to a customer's overall shopping experience. The project will combine retailer and consumer research components to define the challenge, and then assess the strengths and weaknesses of the current trends in the physical layout of the total front end checkout and how the area is managed. Finally, the effort will culminate in a prototype front end concept designed to offer the industry innovation solutions.

The research project, aptly titled "Lasting Impressions" and sponsored by Parsippany, N.J.-based Cadbury Adams USA, will explore and analyze all aspects of shopper behavior at the checkout as it relates to movement within the front end's physical space, selection of products merchandised at the front end, interaction with checkout associates, and the nature and conduct of the transaction itself.

The full research project -- which will span several months, focus both on manned checkouts and self-checkouts, and also incorporate information from transaction data, customer intercepts, and in-depth interviews with grocery chain senior managers -- will be highlighted in ongoing coverage in Progressive Grocer.

"This survey is just the first step in our study to understand how innovative retail design can improve the checkout," says Michael Shinall, Meridian's c.e.o., of the groundbreaking project. "We're looking to see how every aspect of the front end can be reinvented to enhance the shopping experience and leave the customer with a 'lasting impression' of the store."

The end game is a new prototype front end, to be designed by consumer behavior firm Shook Kelley -- a template for reinventing the front end checkout experience that may well form a new and more positive lasting impression with shoppers as they exit the store.

The first component of this multipart project is a report, based on a survey of close to 300 retailers to collect their impressions and knowledge regarding current shopper perceptions, retail practices, and performance levels of the grocery front end.

To Read More Click Here
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Friday, December 7, 2007

Gerald Nanninga is a Master of All Retail (much like a real Ninga)

Gerald Nanninga is a fellow whose blog I just chanced upon and it is simply brilliant. Aside from being quite entertaining and extremely informative, it really meets the needs of any executive in the grocery store industry or any retail chains for that matter. He uses a very unique approach to his writing and it is quite fascinating.

Here is a sample one of his marketing posts,(I deleted parts of it, this post is more to show his blogging format and style, which is awesome) to read the entire post click here.

THE STORY
Top secret agent James Bomb was about to go out on a very important mission to try to stop the evil schemes of dastardly Dr. Whoa. Before embarking on his mission, James Bomb went to the agency’s top secret lab to find out what kind of customized sports car he was getting.

“This automobile is state-of-the-art in fighting evil,” gushed with pride the scientist who customized the sports car. “It has everything you need…a machine gun, a rocket launcher, a grenade launcher, and even a torpedo launcher, in case you end up near the water.”

“I looks ingenious,” said James Bomb. “Now show me how they work.”

“Well, therein lies the problem,” sighed the scientist. “Because the sports car is so sleek, there was no room for the bullets, the grenades, the rockets or the torpedoes. I was able to squeeze in all the launchers, but none of the things they launch.”

“What, then, am I supposed to do?” asked Mr. Bomb.

The scientist replied, “In the glove compartment, there is a small pistol which shoots little BB pellets. I’m sorry, it was all I could find at the last moment.”

“Hrrummph,” murmured the disappointed Mr. Bomb. “Well at least I can hope to find some pretty women on the mission.”

THE ANALOGY
Just as in the spy world, there are important missions in the business world. It may not be the dastardly schemes of Dr. Whoa you are fighting, but there are forces out there that can seriously damage the future of your business unless you stop them.

They can give you a fancy mission and they can give you a fancy title (like top secret agent). They can even give you what looks like a powerful platform from which to do battle (like that sports car). However, if you have no bullets or rockets or grenades, you will lose that battle. All you have to look forward to is nabbing a little beauty on the way down.

I think a similar situation is occurring for many of those placed in the Chief Marketing Officer position, known as the CMO. They have been given a fancy mission: to protect the brand long-term and to help it grow over time. They have even been given the fancy title of CMO (they get to be part of the “C”-suite). And as part of the C-suite, they have what appears to be a powerful platform from which to operate.

Unfortunately CMO’s, as a whole, appear to be failing in their task. I think a lot of it is because they do not possess all the tools to get the job done (their version of grenades and bullets). They can make some beautiful ads on the way down, but that’s about it.

THE PRINCIPLE
In last week’s issue of Advertising Age magazine (dated July 9, 2007), one of the cover stories was about a study of the effectiveness of CMOs. The study, by marketing professors Pravin Nath at the LeBow College of Business and Vijay Mahajan of the University of Texas at Austin, looked at 167 companies over a five year period.

What they concluded was the following: CMOs on top management teams don’t have any effect on a company’s financial performance. Let me repeat that: CMOs on top management teams don’t have any effect on a company’s financial performance.



SUMMARY
Protecting and growing the future of your firm is an important task. It is important enough to require having someone on senior staff, full-time, just worrying about the future. The CMO is usually not capable of doing this, regardless of expectations, because they are distracted by the “tyranny of the now” on their advertising responsibility as well as not usually having a broad enough background to cover all the aspects related to the task. Instead, the best solution to the problem is to have a senior executive schooled in the art of strategic planning.

FINAL THOUGHTS
It is interesting to note that, while the study mentioned in Advertising Age saw no positive impact from CMOs on financial performance, it also concluded that “CMOs do not have a negative impact on financial performance.” Well, there you have it. Something to call home about and to put on your tombstone: “I did not have a negative impact on financial performance.”

If you have CMO in your title, I would suggest that you always be out there networking, because the nature of your position tends to cause short career stints.

Monday, December 3, 2007

Holiday Decorations Welcome the Season

You can always tell when the holiday season is approaching by the numerous Christmas decorations that suddenly appear in the shopping centers and around the neighborhood. Almost overnight, there are strings of lights on rooftops, garland hung on light posts, and even nativity scenes are erected. Christmas decorations have a way of creating the holiday atmosphere that is fast approaching.

There are many ways that you can utilize Christmas decorations both in your home and at work in order to continue your festive spirit. Holidays are a great way to break the routine of everyday schedules. It is always exciting for a family to get out the Christmas decorations and plan where to hang each of the Christmas decorations, purchasing more to add to a specific theme, and to show off your creativity.

Christmas decorations at home can be limited to your sitting room where your Christmas tree is the focus or you can extend your artistic side throughout your home, both inside and out. Depending on your budget and time schedule, Christmas decorations can be relatively easy and inexpensive or extravagant and boundless. Don't be afraid to ask children for help in decorating; they love to participate in the labors of Christmas decorating. Although the end result may not be exactly the way you pictured it, beauty is in the eye of the beholder and any labor of love is appreciated, especially at Christmas time.

There are many homes that prefer to have a theme for their Christmas decorations, either by color or by style. Consistency during Christmas decorating will add a touch of class to your displays. Christmas decorative villages are a favored display for many families. You can purchase additional pieces for your Christmas village at any time and most have built in lights to accentuate the showing. These can be placed as a small feature in your home to replicate a decorative Christmas village.

Most Christmas decorations are purchased with a purpose for display in mind. Christmas decorative towels, bathroom sets, dishes depicting a Christmas motif, or even an elaborate runner for your front hallway. There are so many avenues to explore when converting your every day home for the Christmas season. Christmas decorations also make great gifts when finding such items at a discounted price after Christmas is over.

Through my childhood, Christmas decorations have always held a special place in my memories. They remind me of cozy winter days, visiting with my family and friends, enticing smells of my Grandmother's turkey dinner and the children running through the house with their Christmas crackers. I have always wanted the same joyous memories for my own children.

My own tree holds Christmas decorations that have been made by my children, each meticulously packaged until the season approaches and it's time to unpack them. Each year they multiply and I grow fonder of my collection of hand-made Christmas decorations made with love by my own children's hands. Each of my custom Christmas decorations are hung on my tree with care and have taken over the classic design of my current Christmas decoration theme. And for this I am thankful.

Remember that when using Christmas decorations for your home, keep a style or theme in mind so as not to have an assortment of random Christmas decorations that have no rhyme or reason. It is not always visually pleasing to have as many Christmas decorations as possible. Tasteful and tactful Christmas decorations are much more appealing for visitors and will make your home more welcoming.

Tokyo Embraces LED Christmas Lights

Tokyo's Roppongi Hills has got an early start to the Christmas season with the installation of hundreds of thousands of decorative lights along an avenue in the area. About 420,000 Christmas lights were placed on the trees lining Keyakizaka-dori Avenue on Thursday. The sparkling decorations were designed to evoke the image of a snowy tree-lined street. Illumination of the trees along the avenue began in 2003, with the aim of livening up the Christmas shopping season. This year light-emitting diode (LED) lights were used, providing dazzling brilliance that had not been seen in earlier years, as well as a reduced power consumption. The decorative lights will be on display until Christmas Day.

Store Decorations and Retail Displays