News

Canadian brewer Labatt to expand digital merchandising program based on strong sales

December 21, 2009

Strong, immediate boosts in sales prompted Labatt Breweries of Canada to more than double the footprint of an in-store digital merchandising program developed and managed by veteran digital signage solutions company Digital Display and Communications (DDC).

Labatt will expand the number of "POD" digital signage merchandising units it has in the field to more than 500 by early next year, based on the encouraging results of an initial rollout of 200 units that started in selected Western Canada retailers earlier this year.

Following strong pilot results, DDC was engaged by Labatt to help it develop a solution that delivered on a set of core objectives, like influencing buying decisions and better controlling sales promotions in stores. DDC was responsible for the technical system design, hardware and software procurement, assembly, configuration and project management for the program, which features a merchandising unit based around a 32-inch LCD monitor and built-in media player. Blake Jarrett & Company engineered and manufactured a structure to deliver the technology.

"It was critical that the electronics be pre-installed in a fashion that was rugged enough for shipping and surviving in retail, while at the same time being ‘plug-and-play' when it arrived," said Steve Harris, DDC's VP of business development. "The design styling was kept simple and elegant so the focus remained clearly on the merchandising messages shown on the LCD screen."

The fully-integrated unit can be wheeled into a store, requiring only an available power outlet to start showing videos and connecting to the management network. DDC developed a content plan and provides ongoing content creation and network management services, controlling the deployed PODs remotely using a wireless data network.

The content is 100-percent focused on the featured product, with an engaging 90-second content loop intended to influence customers just as they make their beer-buying decisions. DDC also developed an online portal so that national, regional and local Labatt staff - based on access and control rights - can log in and manage POD content. An online template was also developed by DDC that allows individual store operators to set their own pricing.

The first batch of POD units was rolled out to stores in mid-2009, and had an immediate, compelling effect on sales.

"The actual results are confidential, but we can say that the sales increase on promoted products in stores that have the PODs, versus those that don't, raised some eyebrows," said Harris. "The numbers were really good, and consistent. We know enough now to believe a POD should be paying for itself within a year of getting plugged in."