Premium Possibilities
Point-of-sale materials are playing an increasingly important role in helping grocers communicate quality and value to shoppers.
As more supermarket meat executives angle to refine their strategies to help shoppers eat healthfully on a budget with products that offer “extra value” in the form of wellness attributes, higher quality standards, and eco-friendly policies, premium positioned protein lines backed by ample point-of-sale materials are opening up new sales avenues.
Todd Richardson, COO/EVP and meat director for Rossville, Ga.-based Shop-Rite Supermarkets, says that while branded premium fresh meats have been an increasingly important category in recent years to help his company’s eight conventional supermarkets impart differentiation and reaffirm their quality proposition, “We believe the most significant development in the category is the addition of new POS materials to help merchandise our branded fresh meat lines and educate our customers about the beef they are purchasing.”
Shop-Rite carries Dakota Dunes, S.D.-based Tyson Fresh Meats’ Star Ranch Angus beef line, which he says serves as both a profit center and image builder for the community-based independent, which has earned a strong reputation for its fresh meat products through the years. “The greatest benefit of including Star Ranch Angus in the profit mix is the price point,” notes Richardson. “Being able to supply customers with an excellent product at a reasonable price has been very advantageous for us.”
While the economy has had a definite effect on what people have purchased in the past year, Richardson says: “We are seeing more and more purchases that are price-driven .... Price points seem to dictate more of what consumers purchase on a week-to-week basis.”
When asked about what goes into the process of evaluating new additions for Shop-Rite’s fresh meat category, Richardson says the two most important factors he relies most heavily on are packaging and price.
Larry Brazell, meat department manager, Offutt Strategic Air Command Commissary at DeCA West Offutt AFB in Nebraska, seconds Richardson’s remarks about the key role POS materials play in helping communicate quality and value to shoppers. “The Star Ranch Angus brand has gone the extra mile to provide excellent beef products and sales support,” he notes. “[They] stand behind their product, and have provided visually appealing point-of-sale materials and total case support, including case management, promotions, product demos, coupons on their Web site, and a sweepstake contest.”
And though the economic downturn has had an impact on many things, including the food industry, Brazell says: “Customers want value — i.e., price — and a high-quality product. Star Ranch Angus is well received by our customers.”
All told, Brazell observes: “It’s a win-win situation because it has a trickle-down effect. If I want my sales to increase, I have to do my part by promoting the product to the best of my ability. The main point is, you have to believe in the product and know that you are providing the highest, most whole-some-quality product in the marketplace.”
In this business, no truer words are ever spoken.