How Coca-Cola Grew In-Store Sales at Dollar General
With the vast majority of sales still occurring in-store, alignment between merchandising and media is crucial, industry leaders said.
A shift to in-store media is happening. No one is actually suggesting not to invest in pure digital anymore — instead it's about brands finding the right balance with their spend, said Shock Torem, SVP of media solutions at Vestcom.
Torem discussed emerging best practices for that balance at P2PI LIVE & Expo with Sean Tinnelly, head of ad sales at DG Media Network (DGMN), and Kim Garner, director of shopper marketing at The Coca-Cola Co.
Coca-Cola's ability to deliver the right message at the right place and time is really what drives success in its marketing, Garner said.
To do this, Coca-Cola works on its media with DGMN while partnering with Vestcom on at-shelf tags. The partnership with Vestcom has allowed Coca-Cola to optimize the in-store space in conjunction with Dollar General's planograms and its in-store priorities.
"What that means is, we show up Coca-Cola products where the consumer expects to find us," Garner said. "But we also have that opportunity to intercept their purchase transaction with relevant messaging that brings them together, enhances their experience and then drives conversion."
According to Garner, the following ads and shelf tags were part of programs this past year that delivered double-digit in-store sales growth from an ROI perspective:
While the creative on the left focused on everyday low price and value, the center one drove messaging around a new item and flavor innovation.
The final creative on the right highlighted the opportunity for cross-category bundle partnerships, in this case with Grupo Bimbo's Takis.
For each program, the in-store activation was part of pulling a thread of consistent messaging that started outside the store with digital media, Garner said.
The tags are there to remind you the product was on your list and to pick it up, she said.
"We're really creating this win-win solution that enhances our brand while also enhancing Dollar General's in-store opportunities and priorities around value and simplicity," Garner said.
Dollar General wants to make sure that its shoppers' experiences are additive. If their experiences are good, that will lead to brand loyalty and successful campaigns in the future, Tinnelly said.
Advice for Brands and Retailers
Garner and Tinnelly stressed not to be afraid of message saturation — especially when it's across a full 360 campaign.
As we reorient our brains to think about in-store shoppers as a media audience, it doesn't mean they need to convert or buy a certain product every time, Torem said.
"You're still delivering a high-quality media impression to that particular consumer in-store," Torem said. "And maybe they'll buy it next time, but it just reinforces and drives recall for that same brand message that they've received higher up in the funnel."
Garner suggested leaning into test-and-learn pilots and moving past the fear of failure. Tinnelly agreed, adding that all partners should be open to innovation.
"Don't leave out the store," Tinnelly said. "It's a full omnichannel, full-funnel approach, and testing and investing in that technology is going to be something that's really important to not only the retailers, but the brands that collaborate with the retailers together."
