Thursday, April 1, 2010

Private Labels Running Promotions?


I was looking for coffee at my local grocer and found an interesting package-label design. Kroger’s private-label coffee packaging with race cars and a Daytona 500 logo caught my eye. I turned the can around to find Daytona 500 facts and a message driving consumers to a Web site for recipes, games, and prizes.

Two things about this really stood out to me.

First, private labels are generally all about price, which means they don’t usually have fancy packaging and don’t cross promote. I could imagine the cost to borrow equity from a strong brand like Daytona 500 could be substantial.

Second, grocery shopping is predominantly done by women, especially in the coffee category. So a racing promotion on the packaging was really disruptive from a female perspective. Female racing fans are on the rise. Maybe Kroger is taking advantage of that insight.

I went to the promotional Web site, http://www.racefans.daytona500.com/, and found racing news, downloads, and partner information. And, if you sign up as a member, you get special deals including:
-Chances to enter sweepstakes and giveaways
-Comment on your favorite drivers’ blogs
-Receive discounts on racing merchandise and travel packages
-Play exciting games to win unique prizes from monthly sponsors
-Download recipes and coupons that are only available to members

Posting this Web site on their packaging allows Kroger to change up the content at any time and drives loyal consumers back to retail with coupons and special offers. Will we see more private labels moving in this direction as private-label share tends to grow in this price-conscious economy?

I wonder what insight they latched onto that drove this promotion. Was it the collaboration with a disruptive partner for this consumer? Is it a value-add for a brand that targets a value-focused consumer? Or is it simply the fact that executing a cross-promotion with a private-label brand was disruptive enough? Whatever their strategy was, it caught my attention.

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