Who You Calling 'Tier 2'?

No matter how they may be classified, some of the supermarket channel's so-called "Tier 2" retailers seem to enjoy first-class status on the schedules of leading consumer packaged goods makers.There's no question that CPG manufacturers devote more internal resources to national retailers such as Walmart and Kroger than they do to regional operators like Publix and Ahold USA. But the difference isn't always obvious in the marketplace, where these "small" players often receive as much (if not more) account-specific activity as some of their larger competitors. In just one example, the consistent level of activity that Unilever runs with Ahold USA's three chains (and 750-plus stores) certainly suggests that the manufacturer considers it a key account.The reasons are obvious. For one, some of these chains can only be considered "small" in comparison to only a handful of national retailers. Publix and Delhaize America's Food Lion, for instance, both operate more than 1,000 stores. More importantly, even more legitimately "small" chains like H-E-B (about 300 stores), Wakefern Food Corp.'s ShopRite (roughly 250) and Meijer (200) enjoy commanding market shares within their footprints. Throw in the fact that these regionals sometimes are easier to work with (or through) than national retailers, and it's clear why CPGs don't always treat them as second-class.Thus, Procter & Gamble chose H-E-B as the place to test a "Men's Zone" aisle concept in 2010; General Mills is willing to provide custom labels for ShopRite's annual "Can Can Sale," and Kellogg Co. will do the same for Food Lion's yearly fundraising effort for the Children's Miracle Network; Kraft Foods has been a major contributor to Meijer's "MealBox" recipe program since its inception in 2008.Perhaps the most obvious example of a "big" Tier 2 retailer is Publix, for which Kellogg operates a co-branded website (Kelloggshopsmart.com) to house the account-specific promotions it runs there. Publix is also where some of the industry's largest CPGs have been collaborating this year on a pair of traffic-driving, basket-boosting (not to mention data-collecting) coupon programs.Since March 2011, Kraft, Procter & Gamble and PepsiCo have worked together to give Publix a "Stocking Spree," an integrated program that began in 2010 as a P&G-only affair. The effort periodically mails booklets to registered shoppers containing coupons that are valid for about one month and carry limited-use codes restricting redemption to Publix stores.The program's hub is a dedicated website (Stockingspree.com) operated by Kraft to facilitate registration and offer sneak previews of upcoming mailers. Shoppers are required to provide their name, home address, gender, date of birth and email address to register, and earn a coupon good for $2 off a $5 purchase of produce by sharing information about the program through social media.The program attracted 100,000 registrants in the first seven days after its launch, according to a news post on the website of Chicago-based Upshot, which handles programs at Publix for Kraft.Last April's Stocking Spree mailer contained $57 in coupons for brands including Kraft's Planters, Jell-O and Honey Maid; PepsiCo's Tostito's, Tropicana and Gatorade; and P&G's Prilosec, Vicks NyQuil and Crest.Publix stages in-store events as a lead-up to the mailers, using standees to distribute one-sheets of additional coupons from the participating manufacturers. The standees carry a QR code linking to the program's website.In January, Unilever, General Mills and Campbell Soup Co. began emulating their CPG brethren by launching "The Best Meals Happen at Home," a yearlong program that operates in much the same manner as Stocking Spree.Registered shoppers (who must supply the same personal information) receive exclusive monthly coupons and weekly "FASTastic Recipes" via email. A dedicated website (Bestmealsathome.com) managed by Unilever houses a library of downloadable recipes, all of which incorporate one or more of the 34 participating brands.Standees in stores carry recipe cards and direct shoppers to the website to register and "save up to $200 this year." Circular features support while offering additional deals on the partnering brands.Both programs have been publicized heavily through shopping blogs, presumably prompted by one or more of the participating manufacturers. In the case of "Best Meals," General Mills has been priming the pump through its own MyBlogSpark network. Before one flight, participating bloggers received $25 Publix gift cards to give away in promotions to help generate awareness and participation.

Who You Calling 'Tier 2'?

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