| SPAM® Leftover Saver
Stacks Up for Meaty Profits
Background
Hormel incented a major retailer to
buy in a huge number of incremental units of their SPAM®
product without price discounting while providing added
value to the consumer. Milmour created an attractive account
specific 2-piece storage container that was co-packed
and delivered pallet ready to the customer. This promotion
far exceeded expectations, resulted in extremely high
volume lift and increased velocity. The program generated
excitement among the trade, supported the well-established
brand identity and provided consumers with a useful premium.
Objectives
- Gain incremental feature & display
at point of sale for Wal-Mart & key accounts
- Strengthen relationships with key customers
and accounts
- Reward loyalty among current users at
point of sale
- Stimulate purchase cycle among infrequent
users
Strategy
- Create a meaningful, value added promotion
without price discounting
- Provide a compelling, unique incentive
for retailers to purchase and display incremental product.
Challenges
- Develop a high quality, food-safe proprietary
premium that supports product usage and builds on brand
equity
- Create, design and manufacture item
within a fast time period
- Devise a premium that would not require
checker intervention
Solution
Hormel & Milmour developed a container
specifically designed to hold a can of SPAM. The product
was co-packed and delivered in a shipper thereby ensuring
strong display compliance.. The product had a new SKU
so that movement could be tracked. However, there were
no slotting or promotional fees since it was an in and
out offer. The FDA-compliant container had a tight seal
to keep leftovers fresh. The lid was designed so that
the units stacked well for efficient shipping. The container
was secure enough to not only to hold leftovers, but to
hold the weight of the can and remained sealed while shipping.
The container was clear (highly “polished”)
so that the scanner could read the bar code inside easily
without checker intervention.
Results
- All key accounts bought in to the promotion
- Promotion had double digit sales lift
- Retailers provided many extra displays
- Sell-in was substantially higher than
goal
- Volume & velocity was unusually
high
- Premium tied in to direct product usage
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