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GROCERY: Sports Marketing: Going for a big gain

Sept 1, 2008

-By D. Gail Fleenor


Super Bowl XLIII is coming, and grocers across the country will soon form their game plans for scoring sales relating to this huge sports, entertainment, and cultural event. Progressive Grocer picked the brains of grocers across the country to tap into the latest wisdom regarding strategies for promotions and merchandising programs.

Among the key tips is that it won't matter if there's a hometown team in the game -- Super Bowl time has developed into a prime opportunity for both food retailers and consumers to snap out of the winter doldrums and celebrate, and to optimize the opportunity takes a lot of advance planning.

"We were very fortunate to have the Indianapolis Colts in the 2007 Super Bowl," says Chris Banta, v.p., grocery merchandising for Midwestern grocer Marsh Supermarkets, headquartered in Indianapolis. "We enjoyed an incredible lift in sales during the playoffs, and particularly Super Bowl Week."

The chain of 98 stores in Indiana and Ohio begins its planning for the annual event "about nine months out," starting when the company's promotional calendar is set. "Needless to say, the Super Bowl has become one of the premier food promotional events on our calendar," notes Banta. The Marsh staff finalizes items and promotions six weeks ahead of the actual Super Bowl ad break date, and reviews for last-minute adjustments about 14 days from the break date, he explains.

As a merchandising event, the Super Bowl is usually a big time for partnerships with key vendors. In an NFL market, such as Indianapolis, vendor relationships can dictate tie-ins and displays.

"Coke, Frito, and Edy's are property owners for the Indianapolis Colts, so we often tie in displays or run extra display activity with those companies during the event," says Banta.

Another regional tie-in: Cold winter days in Marsh's market area make chili a natural promo item, according to Banta.

But while having the local NFL franchise in the championship is an ideal situation, it's far from required to be able to score big during the Super Bowl.

Heinen's Fine Foods does just fine without such a direct connection to the game action. The Warrensville Heights, Ohio-based operator of 17 units in northeast Ohio is in Cleveland Browns country.

"Whether or not [shoppers] are football fans, and in spite of the absence of the Cleveland Browns from the Super Bowl, we have seen great reaction every year from Super Bowl merchandising and promotions," confirms James Field, strategic information manager for Heinen's. The key is that consumers are looking for excuses for a big event in the winter period after New Year's Eve, he explains.

Heinen's plans its Super Bowl merchandising in mid-November. Typical displays at the grocer's stores include tie-ins with a group coupon/display, where manufacturers cooperate on items like hot dogs, chili/beans, and snacks, notes Field. In addition, the chain takes advantage of programs that work its own products into the equation. "Usually beverage companies will tie in [either soda or beer] with an amount off a Heinen's deli sandwich or platter," he says.

In an even more extreme situation, Sea Mart Quality Foods' two stores in Sitka, Alaska are a long way from an NFL stadium, but interest is still high in the big game, according to Paul Busby, store director. "It's one of the best sales weeks of our first quarter," he observes.

Planning begins at Sea Mart about two months in advance of the weekend. "We don't do anything fancy," says Busby. "We just try to have a lot of the items people want to buy at that time on display or featured in our ad at good prices." Items in Sea Mart’s 2008 event ad included Red Baron frozen pizza, baby back ribs, chicken tenders, avocados, Roma tomatoes, Nalley chili, and Ore-Ida French Fries and Tater Tots.

Karns Quality Foods, based in Mechanicsburg, Pa., seeks out relevant vendor partners for its Super Bowl initiatives. The independent, with seven stores in southeastern Pennsylvania, has a distinct edge. "We are located in the heart of snack food companies, and work to promote regional brands like Utz and Martin's," says Scott Karns, company president. "Both brands come in very big for the Super Bowl."

Karns also makes the most of offerings from the big national brands. "Pepsi and Coke both have big promotions, and we build stadiums out of soda products, featuring the teams in the Super Bowl," says Karns. "Displays go up when playoff season starts, and the decor changes as the teams narrow down to the big day."

Karns' dairy department has a number of Super Bowl tie-ins, with cheese and dips the products of choice. "Our main program centers on a 'Snackfest' that heavily promotes seafood, deli, and produce." Planning for second-tier holidays like the Super Bowl runs about three months ahead, he says.

Karns is one retailer who suspects this year's opportunity could be tempered by the state of the economy. "The Super Bowl really is a growing holiday event or, as we call it, a big 'eat-at-home event,'" he notes. "Customers seem willing to expand their menus each year at Super Bowl parties." But this January, things could be different. "We are concerned that this year, due to higher costs, customers may be trimming back on high-end items. There will still be Super Bowl parties, just [with] more bologna and veggies, and less shrimp and cheese."

Southern celebrations

Not surprisingly, the South is a hotbed of activity when it comes to food and football, with the Super Bowl just the capper.

"College football is a big time of year in the Southeast, and continues to drive excitement for the Super Bowl each year," says Mark Puhnaty, grocery director for Bruno's Supermarkets, based in Birmingham, Ala., with over 65 stores in the Southeast.

Puhnaty's plans for Super Bowl merchandising and promotions usually begin at least one quarter in advance of the event. "With the significant college football attention our market receives, we can start the College Bowl promotions early and then end January with Super Bowl promotions," he explains.

Snack and soft drink displays at Bruno's in recent years have included opportunities for shoppers to win televisions, trips to future games, and other prizes.

Bruno's Super Bowl displays include tailgating and Super Bowl party ideas with condiment, beer, and snack tie-ins. "The frozen and dairy promo end caps include pizzas, snack crackers and cheeses, spreads, and dips. We also have grilling events at the front of some stores," he says. Bruno's prominently displays its private label products as well, "to add profitability and increased value for the consumer." All departments feature large displays on pre-game day.

Rouse's Supermarkets, based in Thibodaux, La., doubled the size of the company by adding 20 Sav-A-Centers last year, giving the chain 10 units in the greater New Orleans market. Thus, the Super Bowl has become an even bigger event now that Rouse's operates in the hometown of the Saints.

"If a local hometown team is in the Super Bowl, obviously the lift can be as much as double," says Scott Miller, assistant to company managing partner Donald Rouse.

Last year, Mardi Gras and the Super Bowl fell in the same time period, and the grocer enjoyed "tremendous sales growth, with sales bordering on Thanksgiving- and Christmas-type numbers," notes Miller. The chain recaps and reviews after all promotions and holidays, before and after, for performance. Planning for the actual promotion starts around four to six weeks out.

This year, Rouse's will be collaborating with beer and deli vendors for tie-in promotions and giveaways. "We are looking at several options -- either sending shoppers to the actual event or possibly sponsoring a viewing party," explains Miller.

Vendors start huddling

While it's too early for many manufacturers to reveal specific plans for Super Bowl XLIII, some have big events in the offing.

With the theme "Choose the Beer Bursting with Taste, and Turn Any Party into a Super Party," MillerCoors has its playbook ready. For Miller Lite, a "Super Party" logo highlights Tampa, Fla., site of the next Super Bowl. During playoff season the company will offer POS, display enhancers, and merchandise "that will make every account a Super Party headquarters." The playbook details cross-merchandising, on- and off-premise promotion, and a series of regional/local ideas. Plans for Coors Light include a Super Bowl trip giveaway. Promotional POS and limited-edition Super Bowl XLIII packaging "act as an entry mechanism for consumers," the brewing giant says.

Pepsi wasn't ready to discuss 2009 plans at presstime, but according to Michelle Naughton, spokeswoman for Purchase, N.Y.-based PepsiCo North America, the beverage maker will try to top its biggest promotion in company history, 2008's "Pepsi Stuff."

Hanover, Pa.-based Utz Quality Foods, Inc. is developing an internal display contest that kicks off with the Super Bowl, says Dylan Lissette, e.v.p., sales & marketing. "Our route sales personnel are encouraged to build creative displays with a Super Bowl theme to promote our products off shelf and gain incremental sales during the event selling season," he says.

"Since Utz is a regional company, sales are impacted when a team in our marketing area is in the Super Bowl," adds Lissette. "In 2008 the increase in sales was directly related to the New York Giants' participation."

Lissette suggests that the economic situation will affect consumer party plans in a positive way. "People are staying home and entertaining more. This year, more than ever, they'll stay home and invite people over (and serve snack foods) instead of going to a bar or restaurant to watch the game."


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Grocers run for yardage

Not all Super Bowl promotions are created equal, or are vendor driven, for that matter. Here's a sample of grocer-driven promotion ideas for the big game:

Chris Banta, v.p. grocery merchandising, Marsh Supermarkets, Indianapolis:
"We do a very good job annually of promotion of the Indianapolis Colts/NFL and football in general in our stores. You will often see displays tied into a Colts Blue on game weekends. Our advertising is reflective of tailgating themes throughout the season, and with the opening of a new stadium in downtown Indianapolis in August, interest is at a fever pitch heading into this season. I expect it to be a great year in our marketing area, topped off with the Super Bowl event."

Mark Puhnaty, grocery director, Bruno's Supermarkets, Birmingham, Ala.:
"We encourage stores to incorporate their ideas to add sales and profit to the corporate planned displays. We plan and allocate private label products for tie-in displays to increase impulse sales and margin. Our meat and deli departments develop local sales-building displays and promotions."

Scott Miller, assistant to managing partner Donald Rouse, Rouse's Supermarkets, Thibodaux, La.:
"Most of our in-store programs center around party trays, specialty cakes, seafood, and meat promotions to drive perishable sales with cross-merchandising with items like chips, soda, and alcohol."

James Field, strategic information manager, Heinen's Fine Foods, Warrensville, Ohio:
"We have a strong push for the Heinen's deli and foodservice sandwiches and platters. Often consumers want to go more 'upscale' in their celebration, and Heinen's can offer a full range of prepared food choices."


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