JANUARY 2004 HIGHLIGHTS...
	Director's Note: Looking for Answers Research: North American C-Store Close-Up by Meyers Research Center Desktop Marketing Conference: Professor Roger Blackwell Sings! Technology: RFID and the Store of the Future Retail Trends: Redefining Luxury Goods Marketing with Martin Roberts and James W. Peters

Director's Note Looking for Answers

What happens when a retailer accepts a brand's account-specific campaign -- complete with the requisite funding -- then doesn't bother to execute? Sales don't increase as planned, for sure. Otherwise, little else happens. More than 80% of retailers say that customization is an important factor in their decision to accept vendor-supplied P-O-P, according to P-O-P Times' P-O-P Trends Report 2004. Yet they admit that, on average, only about 60% of the materials they accept are placed in stores. Brand marketers increasingly are spending money to provide key accounts with exclusive marketing and merchandising programs -- not "your logo here" white space on header cards, but unique promotional concepts complete with account-specific displays, signs and even packaging. Program effectiveness can be measured to some extent by examining the retailer's scanner data. But even when store-level data is available, a brand usually can only hypothesize about whether or not the program was executed in a given store, based on the level of sales increase gained. So calculating a true return-on-investment for the incremental costs involved in an account-specific campaign is nearly impossible. In recognition of these gaps in the industry's knowledge base, the Institute has been working with two marketing services companies to help them bring potential solutions to the market. Seber Logistics Consulting, Skillman, NJ, is preparing a benchmark study that will track the costs, processes and supply-chain practices that CPG manufacturers use when customizing programs for specific retail accounts. The study will pinpoint the effects these programs have on the overall operation, and will identify best practices for promotional package development and display customization. For more information, read a full description on our home page. And News America Marketing, New York City, has proposed the launch of a co-operative audit program that could make store-specific compliance audits a more-affordable proposition for brand marketers. Using its 6,000-member field force and its network of 32,000 stores, News America's service would provide a detailed analysis of store-specific compliance, and from there a foundation on which to better measure program effectiveness. Read more about the proposal soon on our home page. The Institute is committed to improving the practice of in-store marketing and enhancing its status in the world of business. We will continue to work with like-minded companies in developing the resources necessary to meet those goals. As always, we encourage your feedback and welcome your support. Sincerely, Peter Breen Managing Director, Content Members: Log on for more. »

Research "North American C-Store Close-Up"

P-O-P advertising influences snack-food purchase decisions for 22% of c-store shoppers in the U.S., but for 37% of their counterparts in Canada, according to a new report from Meyers Research Center. Prepared by comparing results from separate studies of U.S. and Canadian consumers, "North American C-Store Close-Up 2003" finds Canadians to be dramatically more open to in-store advertising and other forms of marketing communications than their U.S. counterparts. Included among the data is a look at display effectiveness by category in both countries. Members: View the research here. »

Desktop Marketing Conference Professor Roger Blackwell Sings!

OK, that's not exactly true. But one of retail marketing's most respected thinkers does speak in a featured lecture presented last fall at the In-Store Marketing Summit in Los Angeles. And he does talk about music, by discussing the branding lessons that can be gleaned from the successful musical careers of Elton John, Aerosmith, KISS and other legendary rock performers. Hear Blackwell offer his thoughts on the general state of retail and the particular marketing savvy behind rock's most enduring names in the Institute's latest audio-enabled presentation. Members: View the presentation here. »

Technology RFID and the Store of the Future

In Rheinberg, Germany, a shopper removes a bottle of Pantene shampoo from the shelf, immediately triggering an advertising message on the nearby video screen. One aisle over, a shopper grabs the last package of Philadelphia Cream Cheese as an out-of-stock message is delivered simultaneously to the storeroom. Over in personal care, another shopper scans a pack of Gillette razors on her PSA (Personal Shopping Assistant), which instantly displays price, product features and a buy-one-get-one free offer. Welcome to the Store of the Future, courtesy of Metro Group. The European retailer's pioneering experimentation with RFID-driven technology created strong buzz at the National Retail Federation's Big Show this month. Our coverage includes a virtual tour of the store, a primer on RFID, Metro's company-wide rollout plans, and a few words from Wal-Mart. Members: View the presentations here. »

Retail Trends Redefining Luxury Goods Marketing

Nordstrom's same-store holiday sales growth was better than Wal-Mart's -- which was better than that of most other retailers. How does that happen in an economy still recovering from a recession? It's all due to the new U.S. consumer, who scrimps in some categories so she can splurge in others. The Institute presents trends in the marketing of luxury goods in two formats: In the Lecture Hall, Grid2 International president Martin Roberts presents case studies on successful luxury retailing. In the Retail Handbook, resident expert James W. Peters looks at how marketers are using packaging to create a more upscale product image. Members: Read more here. »