• Case Study: Kraft/Taco Bell Home Originals
• Retailer Profile: Wal-Mart
• Steps to Action
• Promotions Seen in the Aisles
• About Us

• Encourage incremental sell-in to retailers
• Incent purchase frequency
• Encourage trial of newer and/ or lower producing SKUs
• Differentiate the brand at point of sale

CHALLENGES

• Design premium to fit as an in-pack within package parameters
• Ensure premium’s full compliance with FDA test and regulatory standards
• Produce premium inexpensively
• Source stickers that are both food compliant and able to withstand the 190ºF heat of the packaging process
• Engineer package insertion plan that will not affect the delicate taco shell product
• Work with the strict licensing agreements of NASCAR/Rousch Racing and Taco Bell Home Originals

SOLUTIONS

• Taco holder was designed to look like a NASCAR racing car and also function as a taco holder
• Special food compliant, heat resistant, stickers were created with sponsor and driver logos to add authenticity and enhance “fun” factor
• Cars were packed in opened position, due to space constraints

RESULTS

• Promotion was so successful that program was expanded to five different licensed cars and drivers
• Incremental sell-in objectives were achieved due to the trade’s excitement over the value-added in-pack
• Key accounts increased their buy-in
• Purchase frequency goals were achieved
• Premium directly tied in to product usage and solved a consumer need, resulting in a huge positive consumer response

Retailer Profile: Wal-Mart Stores, Inc.
Wal-Mart's self-professed point of differentiation comes down to four letters: EDLP.The company’s ubiquitous ad message,“Always Low Prices. Always,” sums up its all-but unassailable position as the lowest-priced retailer, a position reinforced with tactics including copious opening price points in all product categories and periodic price “rollbacks,” the latter of which generated
an estimated $10 billion in sales in 2002.

However, the company primarily maintains that positioning by aggressively ensuring that it is, in fact, the price leader in five core categories — snacks, HBC, OTC drugs, household cleaners, and small appliances — and through implementing its “Never Be Beat” program, which mandates matching or lower prices on 850 key items.

(Wal-Mart is careful not to tip its hand, though; TV spots show the chain’s smiley face logo “rolling back”prices, but never reveal the items being discounted). Moreover, the chain has excelled at translating low prices into an emotional appeal by positioning the savings as a lifestyle benefit, not just a financial one.

Were price its only significant advantage, other retailers might be able to compete with the chain in areas such as product assortment or convenience. But in these, too, it outdoes the competition. Wal-Mart mines its massive database reputedly second in size only to the Pentagon’s to tailor product assortment for individual stores, guaranteeing that it satisfies local shopping preferences. Until now, convenience has been Wal-Mart's only drawback, as many potential customers have perceived its stores as out of the way. But the company is moving to clear this hurdle through general expansion and new formats, such as the Neighborhood Market supermarkets.

Because of its focus on EDLP, Wal-Mart does not typically engage in price promotions. Instead, it emphasizes traffic-driving, experiential events. The company filed for a trademark on the term “retailtainment” in 1998, an indication of how much importance it places on the concept. Wal-Mart uses promotional events not only to drive traffic and increase sales, but also to cement its status as a vital member of the community, a combination of a town square and a fairground. Innovations like this have enabled the chain to attain a status most retailers dream of: not just a store, but a brand.

• Largest corporation in the world.
• Annual sales are $288 billion, making it the richest company in the world.
• By 2007 likely to control 35% of all food and drug sales in the United States.
• As the largest retailer in the world, sells more DVDs. Magazines, books, CDs, dog food, diapers, bicycles, toys and toothpaste than any other company.
• Operates more than 3,400 total stores in the U.S.
• Major formats include discount stores, Supercenters, Sam’s Club stores, and Neighborhood Markets.
• Largest grocer in the world.
• Owner of the nation’s largest private trucking fleet.
• Largest jeweler in the world with approximately $288 Billion in sales.
• This is an increase of $123 billion from 5 years ago.
• The largest private employer in the United States.
• If Wal-Mart were an official sovereign nation, its GDP would be larger than that of 80% of the world’s countries, including Israel, Ireland and Sweden.
• The corporation buys more than $1 billion world of land each month.
• Hosts approximately 100 million shoppers weekly.

Steps to Action

• Creating an in-pack, on-pack, or near-pack promotion requires balancing many details. A successful premium promotion should include the following eleven steps:
• Start early. Lead time is critical.
• Communicate with people form the sales, marketing, production, packaging and distribution departments to determine needs.
• Determine your budget.
• Set timetables and benchmarks Contact vendors that have proven expertise in these programs.
• Brainstorm some creative ideas.
• Vendors will typically render four or five ideas.
• Involve your legal department in the review process.
• Work with your advertising or promotion agency to determine how to integrate other promotional vehicles, such as free standing inserts (FSIs), direct mail, website or other media.
• Field test or do a regional roll-out.
• Launch the promotion and monitor it. Look for production problems and bottlenecks.
• After the promotion, assess and evaluate sales, logistics and relevant ROI criteria.

Seen In The Aisles
Here’s a sampling of premium promotions Milmour recently
created. Contact us for more information or samples.

Kool-Aid® Stirring spoon

• Kraft Foods, Inc.
• On Pack
• Buy 3 canisters get spoon
• Sam’s Club

SPAM® Leftover Saver

• Hormel Foods
• Container Pack
• Free Leftover Saver with purchase
• Wal-mart

Brownberry® Family Grains™ Sandwich Container

• George Weston Bakeries
• Display/Shipper
• Buy two loaves of bread, get premium free
• National Grocery

Wish-Bone® Salad Bowl®

• Unilever Best Foods
• Mail in
• Free salad bowl with proof of purchase
• National FSI offer

About Us...
Milmour Promotions is the unsurpassed industry leader for custom designing, creating, manufacturing and executing premium-based promotions. Since 1956, our award winning premium promotions have helped companies increase sales while building brand equity. To develop a customized premium promotion for your project or brand,we can help. Call us.