instore - September 2016 - 15

cover story Product Correlation Strategies By Eric Richard, education coordinator, IDDBA in what your store produces in-house, which would allow for the offering of things like gluten-free breads and energy-boosting muffins in the bakery. (For more information on functional ingredients, see Page 20 of Commissary Insider). Another good example of a trend that yields tremendous potential for this kind of cooperation is protein, which almost every center-store item now features either inherently or in various ways that have only recently been developed. Many of these were made by brands that jumped on trends like this quickly, and their endurance in the marketplace is a testimony to how their success can be applied longterm to a supermarket's own products and collaborations. "Bread makers have joined meat snack sellers and dairy product producers on the high-protein bandwagon," says Tom Vierhile, innovation insights director for Canadean. Protein was the top recurring trend he noticed at the IDDBA conference in June. "The ranks of protein snacks are growing. Prime Foods' Eggs on the Run Pro-Go Protein Pack combines a hard-cooked peeled egg, Colby cheese, and dark chocolatecoated almonds for an unlikely protein trifecta. Kontos Foods' new Greek Lifestyle Flatbread has 15 grams of protein per wrap, and is one of a growing number of breads advertising elevated protein contents. " Can you imagine how popular your foodservice bundling could be if your various departments' in-house foods were made with these hottopic ingredients, and then paired with these on-trend products? These brands' success so far illustrates how the perishables, dairy, bakery, and deli departments can work together to produce similar buzzwordoriented prepared foods with their own resources. Granted, making the change to having your different departments produce their own clean-label or high-fiber foods is a tall order that requires high investment, but the potential ROI is huge. Doing so could increase not only prepared foods sales, but sales for each of the departments involved, which in turn could foster further cooperation and innovation between them - all of which means more profit. When it comes to merchandising fresh perishables, retailers need not limit their visibility to their respective departments. In fact, by identifying correlations between products - in other words, natural partnerships - stores can generate additional exposure to their products and engage shoppers based on eating and shopping patterns. This can assist them in developing new cross-merchandising and cross-promotional strategies. Take fresh-baked bakery bread, for instance. According to International Dairy-Deli-Bakery Association research, it has a strong correlation with 56 out of 221 store categories, including fresh salmon, tilapia, deli dips and spreads, and deli specialty meat. This means that shoppers who purchase these items are also more likely to purchase bakery bread, although they may not be thinking that when entering the store for these products. The key is to hone in on specific shopping patterns when merchandising these products. Our research shows that bakery bread has a strong correlation with both fresh salmon and value-added vegetables, two categories that are experiencing considerable growth. Also, consumers who buy these items along with bakery bread tend to have higher basket values; in this scenario, the basket value is $112. It's a perfect opportunity to boost bread sales. Retailers can also really step-up easy meal solutions in this instance by displaying the salmon, vegetables, and bakery bread together. They could market it as cuisine found in a Mediterranean diet and display various whole grains as the bakery bread of choice. The key here is to position the items together as a quick and healthy meal option. To appeal to smaller families, consider offering smaller sizes of bread like half loaves or slices. Given that Hispanic and Asian consumers over-index on both products, try placing bakery bread - especially varieties that appeal to these two demographics - near the fish counter. Cross-merchandising and displays Changes don't always need to run so deep though, and there are many simpler ways that departments can work together to achieve positive results. Displays and product placement in and between departments is an easy key to increasing multiple department sales and basket size. Departments, at the end of the day, don't need to be exclusive. Artisan bakery bread can be placed in a display case next to choice sides of beef, chicken and seafood, with a wrack featuring not only those breads within arm's reach, but tear-off recipes that show how they pair with the various meats and can be included in new and exciting dishes at home. This strategy is a very effective method of product placement. In addition to individual consumer eating habits, shopping for special occasions and entertaining purposes also presents opportunities to take advantage of in-store product correlations. For example, fresh departments tend to see increased sales during the holidays, and bread pairs perfectly with many holiday food products, such as bean dip, bread bowls, and mini sandwich rolls. Retailers can take advantage of this by promoting breads that compliment other holiday favorites, such as specialty meats. It can be as easy as placing breads near your in-store delis with recipe ideas. instore * SEPTEMBER 2016 * 15 http://http://

Table of Contents for the Digital Edition of instore - September 2016