ACH Spices Things Up at Hy-Vee

Oakbrook, Ill. — Building on the insight that the spice category is seasonally driven, ACH Food Companies Inc. launched an early fall campaign exclusive to the Hy-Vee grocery chain, the biggest retail account for the manufacturer’s Tone’s spices and extracts brand.ACH knows that spices typically experience peaks in interest around the winter and spring holidays, while having a big “valley” during the summer. “Part of the objective of this program was to extend the season and get ahead of the competition,” says Aaron Newhouse, national shopper marketing manager, ACH. Consumer research showed that, “In number of trips, we were doing well, but for units per trip, we were down. It helped me land in a [mental] space of, ‘How can I add value for the shopper and stand out in an everyday, traditional aisle that doesn’t stand out?’”Based on a “multifaceted insights review,” ACH and technology partner Snipp Interactive, Bethesda, Maryland, painted a picture of a shopper who values her competence as a cook and seeks inspiration as well as tips to improve her skills within a variety of magazines, television programs, blogs and “other trusted properties,” Newhouse says. “They found [that array of offerings] both entertaining and educational,” he says. “We set our first check mark there. We knew they were very connected to social and digital. That ladders back to the diversity of the Snipp platform, where they can connect with their telephone, laptop or tablet.”Putting these insights into campaign form meant, “Getting her cooking content in a form she engages with, in a channel in which she participates,” Newhouse says.Central to the campaign was a promotional offer. Those who purchased $10 of Tone’s spices and extracts and who submitted their receipts via text or online at TonesMagOffer.com received a free subscription to one of 11 cooking magazines.In making that offer, the partners were very mindful of research showing a heavy mobile orientation among the target shoppers, says Rachel Goncharov, director of sales and client service for Snipp. “Consumers live in a mobile-first world with as many as 70% of consumers accessing promotions from smartphones and redeeming their rewards that way,” she says, referencing published research by Hip Digital, a Snipp Interactive company based in Menlo Park, California. “This campaign targets mobile users to utilize their in-store purchase receipt to continue engagement with the brand outside of the store and gain a reward as a result.”The partners also leveraged research from Kissmetrics, San Francisco, that showed 80% of products are purchased in stores but 75% of shoppers would switch brands if offered a real-time mobile promotion while shopping, Goncharov says. “This creates a connection between the brand and consumer. They associate a positive benefit with the brand, enjoying that reward and getting recipes for Tone’s spices. It tends to build loyalty and makes them return and spend more at the retailer where they found that offer. It’s a win-win.”During the campaign, which ran Sept. 28 through Oct. 31, ACH and Snipp also worked together to produce ads for Seasons magazine, Hy-Vee’s shopper publication. The campaign included digital advertising on Hyvee.com and weekly e-blasts to consumers, as well as the dedicated website that offered the promotion.Consumers who followed the path to purchase into the store found a relatively low-key POS array that included header cards and shelf blades. “In the spice category, it’s not very traditional to be in a display, and Hy-Vee is fairly clean as well,” Newhouse says. “We leveraged the power of our carding and rack.”The partners planned to measure success of the campaign by using dollar and unit sales overall and per store, Newhouse says, as well as the number of qualified submissions for the magazine offer. “Especially since so much of the focus was to change [shopper] behavior where it was lagging,” he says. “We were interested in how engaged folks got with the offer.”At the campaign’s end, the partners intended to tally the demographics of those who participated as well as their ancillary shopper behavior. “These are, of course, the most engaged consumers,” Goncharov says. “They’re taking the time to save their receipts, take a picture and send it in. The amount of information the brand is armed with as a result is very valuable. They can use it to run more targeted programs at that retailer.”Newhouse could not share the budget for the campaign, the brand’s first “true shopper marketing program” at Hy-Vee, but said it was “on par with the other programs I’ve brought to the table since joining ACH [from PepsiCo in 2014].”ACH also tapped into the talents of Upshot, Chicago, for creative.

ACH Spices Things Up at Hy-Vee

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