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Coinstar continues to build on its “4th Wall Program,” a merchandising strategy based on the variety of front-of-store businesses and including coin conversion, pay-as-you-go products/services, amusement vending, DVD rental, money transfer, and coffee kiosks.

Coinstar launched the program based on research from Meridian Consulting, to address the complexities and unique needs and opportunities of the “4th side of the perimeter.” This year the company developed best practices to reveal execution gaps in retailer programs, and leveraged this information to improve compliance and profits for retailers as well as Coinstar.

Armed with this field intelligence, Coinstar developed “core” (mandatory) and “flex” (optional) elements of the program, to help drive execution within a retailer across different store formats, sizes, and layouts.

As in previous years, the results speak for themselves:At one national grocery chain, results in lead divisions showed existing “core” 4th Wall categories grew 3 percent, while underdeveloped categories grew by over 100 percent, with total 4th Wall gains ranging from 4 percent to 6 percent.







Methodology

PROGRESSIVE GROCER’S annual Category Captains competition is intended to shed light on the outstanding category management initiatives implemented in the retail grocery market over roughly the last 12 months. As such,we trust this list of winners, based on our judges’ selections from among the many entries we received, to reflect some of the best strategic thinking and execution in the category management field.

The contest relies on the accuracy and completeness of the entries submitted for consideration. Each entry is considered on an equal footing.As such, the best entries deliver not only a selection of facts relating to a manufacturer’s or a brand’s most recent category management achievements over the past 12 months or so, they also tell a compelling story of challenges confronted, strategies developed and implemented, and results enjoyed by partners from the manufacturing and retailing worlds,working together toward a common goal.

In essence, the actual entry submitted is the key to the judging process in this competition. In winning entries, a company’s importance and influence in a given category was represented as comprehensively as possible.This keeps the awards process dynamic from year to year, as well as keeping intact the possibility that up-and-comers can be recognized, as well as well-established players.

Each of the following award criteria was figured into the judging of each entry, and given a weighted score based on level of innovation and results. Scores were added up to arrive at a total, to qualify each entry for the award of Category Captain, Category Advisor, or neither. Entries were to describe new category management initiatives over the past 12 months.

The factors that figured into judging were:

  • Product innovation
  • Creativity in merchandising,marketing, promotion, advertising
  • Consumer insights
  • Innovative, dynamic category management tools
  • Demonstrated commitment to meeting retail customers’ specific needs
  • Effectiveness at differentiating a line or brand within the category
  • Effectiveness at lifting sales for a brand’s products in the category
  • Effectiveness at lifting an entire category’s sales for a retailer or retailers
  • Hard evidence of market-specific or account-specific sales results that support the vendor’s claims of excellence

To win the premier award, Category Captains, contestants had to demonstrate excellence in all of the above criteria in their entries. Category Advisors also exhibited excellence, but scored lower overall than the threshold set for Category Captaincy. Both designations reflect outstanding contributions to the industry at the category level.

 
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