Supermarket FRESH FOOD Business: Preparing for luck

If it's true that luck most commonly occurs when preparation meets opportunity, then that explains why some supermarket retailers have been lucky enough to cash in on the recent popularity of take-home comfort foods while others seem to keep rolling snake eyes. For much of the last six months, grocers with well-positioned prepared foods programs have done an admirable job of taking advantage of the opportunities raised by the personal insecurities and the sluggish economy that have kept consumers closer to home. And while behavioral changes appear to have been underway even before September's terrorist attacks, Americans have become increasingly interested in picking up their meals from a grocery store rather than from the fast-food joint down the street.

Although the conditions that breed success have been difficult to pinpoint, the common denominator linking the industry's top performers in the prepared foods arena is an ongoing commitment to gaining greater understanding, not only of their customers' expectations, but also of their own performance. And many have found consistent departmental promotions to be the best way to keep the upswing going.

By thinking more like innovative restaurateurs and less like status quo supermarket retailers, these grocers have shown that an organized promotional strategy can go a long way toward helping you create an outstanding image for your store's prepared foods program.

Here are 12 proven, cost-effective techniques that industry leaders have employed to create and maintain a positive prepared foods image:

1. Define your brand.

Before beginning a promotion, determine whether your prepared foods menu has a brand. Is your brand's identity with customers what you think it is, and is it what you want it to be? If you are unable to respond, or have answered "no" to either question, it is likely that your brand doesn't make your customers a promise about who you are and what you offer. Make it your top priority to control your image instead of letting your image control you.

2. Set goals.

Establish what you hope to accomplish with the promotion and tailor your goals accordingly. Do you want to increase sales and traffic during specific times of the day? Push trial of a new meal deal lineup? Raise the average ring of current customers? Setting measurable goals will help you better understand what you did or didn't do right in pursuit of a particular promotional objective.

3. Have a plan.

Allow adequate time to launch a prepared foods promotion. Decide what products you'll feature and whether you'll offer them at special pricing. Determine in advance when and how long the promotion will run, and be sure to adjust your scheduling needs accordingly. Allow for sufficient time to gauge results.

4. Communicate

with employees.

Give your associates as many details as possible about the promotion, including its objectives, duration, and any additional responsibilities they will be expected to assume in the process. Only then will they be adequately equipped to respond to questions and up-sell your customers with confidence and consistency.

5. Focus on existing shoppers.

Since very few people visit a supermarket solely for prepared foods, says Ron Paul, president of Chicago-based foodservice consultancy Technomic, Inc., "many retailers need to improve their fundamental abilities to redirect customers into the store's prepared foods area." While consumer attitudes about supermarket prepared meals have certainly improved in recent years, Paul believes it is much more effective to promote prepared foods to customers already shopping your store than to try to win converts through the weekly circular.

6. Tell them what makes you different.

Retailers who enjoy the greatest success with prepared foods programs understand the importance of having a niche and promoting it accordingly. "Too many retailers have veered off into products or promotion strategies that compete with their brand rather than support it," says Paul. In other words, if you're confident you've got the best fried chicken in town, don't be shy about telling it to your customers early and often.

7. Promote to your

invisible customers.

Delivery drivers, reset teams, postal workers, and rack jobbers are all potential customers, so be sure to encourage store associates to treat these folks with courtesy and respect. Offer them employee discounts and encourage them to dine in your employee lunchroom. Always keep in mind that these people are keen observers of your behind-the-scenes food safety practices.

8. Borrow from the best.

Some of the industry's most acclaimed retailers have no trouble admitting that some of their most effective promotional campaigns came about because they borrowed great ideas from their fiercest competitors. If you want to increase your takeout lunch business, for instance, pay close attention to your market's most popular lunchtime food destinations. Ask associates to pass along promotional information and menus to you and your department managers. Then figure out the best ways to adapt, improve, and incorporate those great ideas into your own lunch program.

9. Sell it with signage.

They are relatively inexpensive, yet signs are among the most effective tools store operators can use to fulfill consumer information needs. And if you're serious about your prepared foods promotion, be sure to capitalize on the use of graphics and signage to create a clear and cohesive image that sets your store's offerings apart from the competition's. Reasonably priced technology is making it increasingly affordable for even the smallest retailers to develop creative signage for their prepared foods operations.

10. Sample generously.

The time-tested practice of product sampling also ranks among the most effective means of gaining credibility and building trust while you're conducting a promotion. Sampling not only adds excitement, it also significantly increases consumer trial of your products while allowing you an opportunity to evaluate new menu additions. Sampling your prepared food items also doubles as a powerful customer service tool by making it easy for customers to try your food and for you to gauge their feedback.

While the sampling session is underway, encourage associates to watch customer reaction and solicit input about the likelihood of a future purchase. Chances are that if they try it, they're much more likely to buy it.

11. Get the kids involved.

Whether in the classroom, living room, or supermarket, "kid-centric" marketing is key in getting youngsters to notice your products. Promotional campaigns aimed at children have been a fixture in American culture for much of the last century. In recent years, kids' power to sway their parents' purchase decisions has risen to new levels, and retailers would be wise to accelerate their efforts to entice children with prepared food products designed just for them.

12. Evaluate your results.

What's the use of conducting a promotion if you don't bother to document performance before and after? Make sure to keep a record of the total cost of the promotion and weigh it against the added volume generated to determine your return on investment.