Saturday, January 22, 2011

Local Discounter Finds Success with Innovative Product Placement

HARLINGEN, TX -

Sandy Cardenas, a recently hired employee at the local 99 Cents Only Store, thoughtfully stocked both condoms and home pregnancy test kits next to each other on the impulse purchase shelf next to her register yesterday.  The move was the most recent example of the innovative product placement featured at the business.

"Realizing where I work, it seemed like a good idea," Cardenas said of her decision.  "I figure anyone who comes in here only willing to shell out less than a dollar for condoms better have ready access to a pregnancy test as well. It seemed logical."  In fact, such self-direction is what the 99 Cents Only Store encourages of its employees.  Store manager, Mark Burnett explains.  "With our mix of low priced items mostly featuring poor quality and continued existence well past the expiration date, it is our mission to look out for our core customer's potential next need while they are still in the store.  This way, not only can we increase sales, but also cover all the bases." 

Burnett is visibly proud that his company allows him and his crew the freedom to experiment.  "Corporate gives us a lot of latitude as to where to put things.  Some people may think it flies in the face of retailing to put an entire case of an off brand 99 cent version of Pepto Bismol in the candy isle, but if you knew how old those chocolate bars are you would admit that it makes total sense."  Burnett said. "Plus the customer will already know exactly where to look when they come running back into the store later with debilitating intestinal distress."

"One idea we came up with was to position the discount phone cards close to our deli section," Burnett continued.  "At first glace it might not look practical, but at only 9.9 cents per minute, we save customers scads of money on those inevitable calls down to the Harlingen Free Clinic's Poison Center. We try to be creative and have fun with what we do."  Certainly, Burnett and his team have numerous examples to cite when it comes to helping the local store maintain its profit margin while serving those of lesser means within the shopping public .  "For example, during the holidays we were having trouble moving our cheap, dangerous toys, so we all got together to brainstorm about it. One of our cashiers, Sherry [Newman] recommended that we put up a large, colorful sign highlighting the sharp edges and high lead content as a special feature available exclusively at the 99 Cents Only Store," Burnett fondly remembers.  "So, we did it and within three hours we were completely out of toys.  It worked so well in fact, we ordered as many as we could get from the warehouse just to satisfy demand."  Burnett's staff learned a powerful lesson that day.  "Our customer base will buy anything if it's under a dollar and it's somehow 'Special' or 'Limited' even if that product could obviously cause bodily harm. It's Amazing," Burnett said.  The high volume of band-aids, Mexican Neosporin and lead testing kits that sold within a few days after the promotion was also remarkable, Burnett recalled.  "It was no less than totally awesome. It's like constantly beating your dog for no reason and it still keeps coming back. I have to say that I am totally stoked about the promotional ideas we have on deck for the shipment of radioactive chapstick we'll be promoting next month. I love this business." 

A quick tour of the store also uncovers other thoughtful combinations of products,  all featuring some kind of first aid-related item in close proximity: 99 cent circular saw blades with head wound ointment and eye patches, 99 cent t-shirts promoted in stacks along side skin rash cream and pocket-sized fire extinguishers, and even stylish Deadly-Do Not Eat signs stacked in a visually appealing way adjacent to the produce section with bottles of Ipecac interspersed throughout. Dozens more examples abound.

Of his success, Burnett is quick to give the credit to his workers and customers alike.  "Of my people I can only say this," Burnett said. "We could never succeed without their dedication and exchange of ideas. More importantly, its those customers that keep coming in day after day that continually surprise and delight us both with their iron constitutions and lack of disposable income. We are number one in our region this year.  I'm so proud."