Dannon Reinvents Shelf Set

White Plains, NY -- Focused on reinventing the yogurt section, The Dannon Co. formed a "shelf obsession" team last fall to transform the aisle from cold, dark and confusing to a compelling place to shop. Applying multiple Groupe Danone global best practices, U.S. category management research and their own extensive shopper insights research, the three-person team's goal is to impact 4,000 stores during 2008. Made up of experienced sales and marketing executives from within the company, shelf obsession is now their sole focus, says Michael Neuwirth, senior director of public relations. The team's main objectives for the shelf-set reinvention are to improve the overall customer shopping experience, help create the needed space to accommodate continued yogurt category growth, and take advantage of a high-traffic category. Perhaps the biggest shake-up is that products will be organized by benefit and not by brand. Dannon would not go into further detail about how the reset affects competitive brands, but it appears they are included. Neuwirth says not only does the change make finding products easier, but it is in line with how consumers -- particularly its target market of women 18 and older and heads of households -- shop the category. Organics have also been moved from the center of the store to the mainline yogurt set. Endcaps allow for cross-merchandising with such items as fruit and granola, as well as weekly sale items and new products. "The team hopes to have tremendous impact on both the yogurt and dairy section by successfully demonstrating how the right product assortment, the appropriate space allocation, correct category segmentation, impactful signage and in-store 'theatralization' can dramatically improve both the yogurt section and total dairy aisle," Neuwirth says. "The yogurt category is one of the fastest growing categories in grocery, with 33% growth over the past five years," he adds. "Unfortunately, the retail space dedicated to the yogurt category has not expanded in proportion with the category growth itself. If space expansion continues to lag category growth, yogurt will leave $1 billion in annual sales unfulfilled." Although the team is working with multiple retailers, Neuwirth would only comment on the work with Cub Foods, but did say "the goal is to create a uniform design that incorporates key guiding principles which have been successfully tested globally throughout Groupe Danone countries. We have and will continue to customize the designs where necessary for key retailers." Dannon, Cub Foods and RTC, Rolling Meadows, IL, the company that designed and produced the section, worked closely together on all elements of the design. "This is the retailer's real estate, so they make the final decisions," says Neuwirth. "However, it is our role to help inform them to make the best decisions based on our global experience and leadership in yogurt." Lifestyle images are used throughout the section to promote Dannon's "flavors for your life" theme, and all display pieces work together to engage the consumer and enhance her overall shopping experience. Overhead disk signage incorporates the retailer's basic design colors and creates a store within a store. Headers, blades, strips and well clings are strategically placed to engage consumers. Stanchions deliver rotating seasonal messages to help increase yogurt consumption by suggesting new ways to use yogurt, such as in a smoothie. To promote the fastest-growing segment within the category, a kiosk -- placed in the center of the yogurt department to disrupt the traditional flow -- will feature probiotic offerings such as Activia and DanActive. "Though consumers do understand the benefits of live and active cultures, both Activia and DanActive have very specific strains that are unique to our products and, therefore, it is important that we educate consumers on the benefits," says Neuwirth. Shoppers can also purchase products directly from the kiosk. During high-traffic shopping hours, a sampling station will be manned by a nutrition expert who, in addition to samples, will distribute recipe cards and educate shoppers. Success of the new section will be measured by pre/post sales results, household penetration, frequency of purchase, ROI and more. Dannon's broker, Crossmark, Plano, Texas, will maintain the section.

Dannon Reinvents Shelf Set

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