”'9. 2.. : Jamar—.- f AN EMPIRICAL CASE STUDY OF CUSTOMER FLOW PATTERNS AS AN. APPROACH IN DETERMINING OPTIMUM MERCHANDISE LAYOUT Thesis for the beam of m. A. MICHIGAN STATE UNIVERSITY Pater J. Braschoss, Jr. 1958 L [B R A R Y t, Michigan Stave ‘ Univexsity f‘ AN EMPIRICAL CASE STUDY OF CUSTOMER FLOW PATTERNS AS AN APPPOACH IN DETERMINING OPTIMUM MEPCHANDISE LAYOUT by Peter J. Braschoss, Jr. AN ABSTRACT Submitted to the College of Business and Public Service of Michigan State University of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of TASTE? or ARTS Department of Marketing and Transportation Administration Curriculum in Food Distribution Approved: /4" 7 W PETER J. BPASCHOSS, JP. ABSTPACT The writer has prepared this thesis to present a research technique which could be used to investigate the shopping patterns and reactions of shoppers in retail food markets. Conducting customer flow patterns is not new in marketing research. Informally, at least, anyone observing customer actions over a period of time for the purpose of improving layout is conducting this type of study. The main difficulty, without some predetermined methodology, is that the study generally results in data which the observer uses to prove his thinking rather than allowing the facts to stimulate thinking. A flow pattern is a written record of the course and reactions of one shopping unit from the time of entering the store until physically leaving with the selected merchan- dise. Flow pattern analysis then, is the study of this data compiled, in order to effect improved merchandising and/or physical layout. The outlet chosen for the study was Kroger Store #G-QQM, in Lansing, Michigan, and was selected because of the highly competitive nature of the area. In addition to a large Wrigley supermarket within the Frandor Shopping Center, The Great Atlantic and Pacific Tea Company, Market Basket, Schmidt's, various independents, and other Kroger units operate in direct competition with the outlet studied. PETER J. BPASCHOSS, JP. ABSTRACT .The material for the project was the result of personal observations of two hundred shoppers over a two week period. Although few generalizations can be made,as every store presents different problems, it does show the results which can be obtained in other outlets by using a similar tech- nique. In today's great boon towards motivation research, attempts have been made to probe the consumer mind for hidden feelings and emotions. "What is more important than what people say they do is what they actually do."1 The author feels that observed actions, movements, and purchases in the particular store shopped by the consumer can contri- bute valuable data in approaching merchandise layout. The technique is not proported as an answer to all merchandising and layout problems which the industry faces, but as another method of gathering internal data for intel- ligent decision-making. As Zimmerman has said, "There is no formula for the perfect—layout."2 lWinston L. Brembeck and William S. Howell, Persuasion (New York: Prentice-Hall, Inc., 1955), p. 82. 2M. M. Zimmerman, The Super Market (New York: McGraw- Hill Book Co., Inc., 1955), p. 181. "The Food Distribution program at Michigan State University is under the sponsorship of the National Association of Fsod Chains." AN EMPIRICAL CASE STUDY OF CUSTOMER FLOW PATTERNS AS AN APPROACH IN DETERMINING OPTIMUM MERCHANDISE LAYOUT by Peter J. Braschoss, Jr. A THESIS Submitted to the College of Business and Public Service of Michigan State University of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of Marketing and Transportation Administration Curriculum in Food Distribution 1958 In.» ‘2‘ V I ‘._ w) \ L‘“ L\ To My Parents Peter and Catherine Braschoss, Sr. ACKNOWLEDGMENTS The author is greatly indebted to Dr. Edward A. Brand, Director of the Curriculum in Food Distribution, for his kind guidance and valuable help during the preparation of this study. He gratefully acknowledges the assistance of Mr. Earl Brown of the Agricultural Extension Service at Michigan State University, the staff, and others connected with the .department. Deep gratitude is also due Mr. Frank Armour, Jr., Executive Vice-President of the H. J. Heinz Company, for his deep concern and devoted efforts on behalf of the Food Distribution program in connection with the National Asso- ciation of Food Chains. The study could not have been done without the per- mission and cooperation of The Kroger Co., Mr. H. Arville Ferguson, Grand Rapids Division, Grocery Merchandiser; Mr. Norman Otto, General Store Manager, and his staff at Kroger Store #G-224, Lansing, Michigan. A study of this kind is the result of many people‘s efforts. To all my colleagues at Michigan State University, Peggy Curry and Ann Brown for suggestions and clerical assistance go thanks. To Herman and Marge Baechle with iv whom I spent many pleasant hours throughout the year, go a special debt of gratitude. Finally, the author would like to express his sincere thanks to the following members of The Grand Union Company-- Mr. Lloyd W. Moseley, Vice President in Charge of Personnel; Mr. Charles w. Garratt, Regional Personnel Manager; Mr. Daniel Minich, Division Personnel Manager, and all other members of the company, for providing the author the oppor- tunity of attending Michigan State University. It is hoped by the author that he may live up to the expectations of these men and prove worthy of their faith in him. D A ', ‘ . I . ._ ‘ “. ' . a ‘5' A ‘ i J . _, ’ a- r ‘ I a- “. v." 1'. '.‘ Uh“ ! ~-..-'».»-""1+.-£ ‘ti': $- ‘ Hg ,- as. u. ,1.- .3 ”am;- 1:” .' -‘ fig m 5:45;; . In“; a" M -' 3i 2...? 2.51““ 11.... IN BACK OF BOOT: 'Hu '1‘“, .‘ TABLE OF CONTENTS CHAPTER PAGE I. INTRODUCTION. . . . . . . . . . . . 1 Brief history of research . . . . . . 1 Outlook for tRe future 3 Scope 4 Purpose of the project 5 LI. METHODOLOGY FOR CONDUCTING AND COMPILING FLOW PATTERNS 6 History of flow patterns. 6 Definition of terms 8 Preparation of flow sheets 9 Following the shopping unit. . . . . . 12 Compiling the data. . . . . . . . . 15 Analysis . . . . . . . . . . . . 16 Applications. . . . . . . . . . . 17 Limitations . . . . . . . . . . . 19 Summary . -~ . . . . . . . . . . 21 III. THE STORE USED FOR THE STUDY . . . . . . 22 The Greater Lansing area. . . . . . . 22 Frandor Shopping Center . . . . . . . 23 Kroger Store #G-22A . . . . . . . . 25 IV. GENERAL FINDINGS AND RECOMMENDATIONS. . . . 29 The front end . . . . . . . . . . 3O CHAPTER Findings Recommendations. The glass section Findings Recommendations. Beverages. Findings Recommendations. Household and laundry supplies. Findings Recommendations. Dried foods, pet foods, health and beauty aids Findings Recommendations. Crackers, cookies, cereals, and candy Findings Recommendations. Cooking needs, bread, and bread products Findings Recommendations. Prepared and baby food aisle Findings Recommendations. Canned fruits, vegetables, Juices and miscellaneous vi PAGE 53 CHAPTER V. VI. Findings Recommendations. Miscellaneous items Findings Recommendations. Soft goods and non-foods. Findings Recommendations. End displays. Findings Recommendations. Special displays Findings Recommendations. Miscellaneous facts Findings Recommendations. Summary RELATION OF THE FINDINJS TO ADVERTISING. Monday, July 21, 1958. Wednesday, July 23, 1958. Monday, July 28, 1958. Wednesday, July 33, 1958. SUMMARY AND CONCLUSIONS Summary vii PAGE 53 57 59 63 61 61 63 6A 6A 66 66 66 68 68 68 7o 73 72 73 76 78 81 85 85 CHAPTER Findings Recommendations. Conclusions BIBLIOGRAPHY. APPENDICES viii PAGE 86 87 89 91 9A LIST OF TABLES TABLE I. Number of Customers Who Passed and Purchased in the Front End in Kroger Store #G-22A. 11. Number of Customers Who Passed and Purchased in the Glass Section in Kroger Store #G-22A III. Number of Customers Who Passed and Purchased Beverages in Kroger Store #G-22A IV. Number of Customers Who Passed and Purchased Household and Laundry Products in Kroger Store #G-22A. V. Number of Customers Who Passed and Purchased Dried Foods, Pet Foods, and Health and Beauty Aids in Kroger Store #G-22A VI. Number of Customers Who Passed and Purchased Crackers, Cookies, and Candy in Kroger Store #G-22A. VII. Number of Customers Who Passed and Purchased Cooking Needs, Bread, and Bread Products in Kroger Store #G-22A VIII. Number of Customers Who Passed and Purchased Prepared and Baby Foods in Kroger Store #G-22A. 31 34 36 39 42 A6 6:1 51 TABLE A PAGE IX. Number of Customers Who Passed and Purchased Canned Fruits, Vegetables, Juices, and Miscellaneous Prepared Foods in Kroger DStore #G-224. . . . . . . l . . . 54 X. Number Of Customers Who Passed and Purchased the Frozen Food Department in Kroger Store #G-224. . . . . . . . . . . 56 XI. Number of Customers Who Passed and Purchased Miscellaneous Items in Kroger Store #G-224. 6O XII. Number of Customers Who Passed and Purchased Soft Goods and Non-Foods in Kroger Store #a-aau. . . . . . . . . . . 62 XIII. Number of Customers Who Passed and Purchased from End Displays in Kroger Store #G-224 . 64 XIV. Number of Customers Who Passed and Purchased from Special Displays in Kroger Store #G-224. . . . . . . . . . . 67 XV. Percentage Breakdown of Shopping Units in Kroger Store #G-224 . . . . . . . . 69 XVI. Percentage of Shopping Units Who Passed and Purchased in the Checklanes in Kroger Store #G-224. . . . . . . . . . . 73 XVII. Number of Customers Who Passed and Purchased Advertised Items in Kroger Store #G-224, (July 21-23 versus July 28-33, 1958). . . 75 TABLE XVIII. Number of Customers Who Passed and Purchased Advertised Items in Kroger Store #G-224, (July 23-26 versus July 33—August 2,1958) XIX. Number of Customers Who Passed and Purchased Advertised Items in Kroger Store #G-224, (July 20-August 2 versus July 23-26,l958) xi PAGE 79 82 FIGURE U'IJEUOIU LIST OF FIGURES Layout Showing Frandor Shopping Center and Greater Lansing Area. Kroger Ad--Ju1y 21, 1958 Kroger Ad--July 23, 1958 Kroger Ad--Ju1y 28, 1958 Kroger Ad--Ju1y 33, 1958 PAGE 24 7a 77 80 83 . I IF’CII LU w ,4. (D I“) V O _ ’5 . History c: Pese In In the early thirties two food distribution bombshells burst in the New York City area with the opening, in 193C, of King Kullen, followed in 1932 by the opening of Big Bear. So propitious was the moment——economically and psycholog- ically--for the appearance of a new system of mass distri- bution, that the opening of these two unique markets was hailed as a n w phenomenon. The history of the supermarket industry is generally reckoned from that time.1 As the industry grew operators began to seek new ideas and information to help them improve upon their methods. They visualized that the supermarket would become big business, that it would require financing, centralized management, and organization. Research into methods and trends became more than a word--it became a basis for change and expansion.2 In addition to studying methods and statistics, the operator began appraising his barnlike building and set 1M. M. Zimmerman, The Super Market (New York: McGraw Hill Book Company, 1955 , p. 16. 21bid., p. 117. out to find sources of modern fixtures, shelving, and equipment. Alert to anything that could help improve his position, the operator recogRIzed that the time had come to face-lift his old markets and build new ones. He was no longer hesitant about making investments in new buildings and equipment, because he was satisfied that Mrs. Consumer had accepted his retailing system for her shopping. Newly won successes resulted in building more markets across the nation. ' Early quests for basic facts took the form of oper- ators making trips and visiting fellow operators in other cities to see what they were doing. Men like William Applebaum and Sidney Rabb have been instrumental in gathering data which has normative application in the industry. Progressive Grocer magazine has conducted store orientated studies in Ohio and Minnesota which are reputed to be guideposts for supermarket operators. The 1955 3 Foodtown Study analyzed in detail the sales of eleven mid- western stores and two eastern outlets to discover some insights into product-profit contributions, margins versus movement, space allocations, and stockturns. Recently the 3Foodtown Study, A reprint from Progressive Grocer, January, 1955. Super Valu Studyu was published with essentially the same information in greater detail. The second work touched upon customer feelings and attitudes and brought the 1955 statistics up to date. A cooperative group was used, specifically six stores for a period of twelve weeks. Although these studies contain valuable information, they are not complete in the-solution of supermarket merchandise layout problems. Just as store sizes differ, so also do the types and brands of merchandise. Flow pattern analysis may be defined as the study of compiled shopping data in order to effect improved merchan- dising and/or physical layout. This study should be a valuable tool in selecting or planning the type of layout which would appeal to the greatest number of customers. Outlook for the future. In today's great boon towards motivation research attempts have been made to probe the consumer mind for hidden feelings and emotions. Dichter and Martineau have been successful in ascertaining some forces behind human actions. Many magazines and adver- tising agenciesbretain psychiatrists and continually inves- tigate unknown areas to develop new ways to induce pur— chasing. "What is more important than what people say uSuper Valu Study, A reprint from Progressive Grocer,. January, 1958. 5 The author has the they do is what they actually do." feeling that actions, movements, and purchases in the particular store shopped by the customer can contribute valuable data in approaching the vexing problem of deter- mining optimum merchandise layout. Scope enfisy/ As one looks at retail food stores one fact stands fout--that each outlet is different in many ways. There are differences in physical layout, merchandise layout, space allocati6n, et cetera, the list could go on and on. In the end, however, it will be the customer who finally decides which is most desirable. This is indicated by where the customers go in the store, what items they most frequently handle, or purchase, and how thoroughly they shop the store. The methodology presented in Chapter II can be applied to individual outlets regardless of their differences. Because they are store orientated they are precisely applicable to the test outlet. They will prove advantageous when: 1. Store sales are felt to be low or falling off. 2. A remodel of an existing store is planned. 3. Planning new units (after many local store surveys are analyzed). 5Winston L. Brembeck and William S. Howell, Peruasion (New York: Prentice-Hall, Inc., 1955), p. 32. The scope of this analysis, therefore, is unlimited and over a period of time should serve as an extremely useful tool for food merchandising. ‘55...- 33>: I" ‘* IEPur ose of the Pro ect .. .———._ Kb . Research in the food industry has been looked upon with some skepticism. Companies in the past received little cooperation in the field and the statistics they uncovered had limited cumulative application. Recently statistical analysis has received widespread publicity and greater attention by leading food companies. —-_. 'This study develops a methodology for conducting flow analysis by management groups rather than to set standards for generalizations. The technique is not pur- ported as an answer to all merchandising and layout prob- lems which the industry faces minimizing customer shopping frustration and maximizing net profit, but as another method of gathering internal data for intelligent decision- making) As Zimmerman has said, " There is no formula for the perfect layout."6 6 Zimmerman, op. cit., p.181. CHAPTER II METHODOLOGY FOR CONDUCTING AND COMPILING FLOW PATTERNS History of Flow Patterns . Conducting customer flow patterns is not new in marketing research. Informally, at least, anyone watching customer actions over a period of time for the purpose of changing merchandise layout is conducting this type of study. The main difficulty, without some predetermined methodology, is that the study generally results in data which the observer uses to prove his thinking rather than allowing the facts to stimulate thinking. Mr. Earl Brown and Mr. Michael Wood of the Agricul- tural Extension Service at Michigan State University developed a methodology for this type of analysis. Their procedures have been used in several studies prepared for Michigan retailers which resulted in increasing profits and effecting various economies of handling and allocation. Mr. Herman F. Baechle of The Kroger Co. working on this research project, and the author, felt that past studies contained the following disadvantages: I l. The product and departmental breakdowns were not detailed enough to be of value to the chain supermarket operator. 2. For each flow analysis study sixty flow patterns were observed. The flow patterns which did not seem "representative" were eliminated. 3. Limited supplementary data was recorded-—areas of interest, such as time in check lanes, extent of services, et cetera, was not included. 4. Few important terms were defined. For example, doubt existed in the observers minds as to what constituted a ”pass." In the July 1958 issue of Progressive Grocer, Mr. Clifford Haskell, Vice President of Alpha Beta Food Markets, Incorporated, discusses the method of traffic flow studies used by this chain in 1954.' Again the information received was scanty, but did point to the value of such studies and the need for more effective methodology. Two men were assigned to view from the shoplifting mirror and follow with pencil the exact course of as many customers as possible from the time they entered the front door until tflmuzchecked outJ-They checked 116 customers in the course of the study and not one customer traveled every aisle. I'No customer saw all the merchandise that we so proudly displayed. High profit impulse items were located in low traffic aisles."2 1Clifford Haskell, "Follow That Woman," Progressive Grocer, Vol. 37, No. 7 (July, 1958), 84. 2lbid. Definition of Terms Before proceeding any further in this study, it is necessary, in order to eliminate the problem of semantics, to define some of the basic terms: Flow pattern. A flow pattern is a written record of one shopping unit's course and reactions from the time of entering until physically taking charge of the selected merchandise. Purchase. A purchase includes all items that a customereultimately purchases. Handle.. A handle includes items which are picked up, but not purchased by the customer. Pass. A pass is determined by the path of the shopper on the flow pattern. A designated area receives a pass if the shopper could_have noticed that area at any point on the shopping tour. Not pa s. A not pass is the difference between total possible passes and total actual passes. Shopping unit. A shopping unit is made up of one or more persons who tour the outlet employing one main bascart for homogeneous consumption. Flowgpattern analysis. Flow pattern analysis is the study of the compiled data in order to effect improved merchandising and/or physical layout. Preparation of Flow Sheets This section will describe the methods and factors included in the flow sheets and generally point out areas where certain adaptations could be made in order to bring out other desirable facts for analysis. Mr. Earl Brown of the Agricultural Extension Service aided Mr. Herman Baechle and the author in this work by pointing out weaknesses in the flow sheets used in analyzing Michigan Food Stores. Two factors should be kept in mind when constructing a flow pattern worksheet: 1. Information should lend itself to general classi- fication in order to facilitate tabulation and still retain the desired detail. 2. Since personal interviews tend to change shopping habits, all data should be gathered by following customers at an inconspicuous distance. Further amplification of this point will be made later in this chapter under the section "Following the Shopping Unit." The first step in constructing a flow pattern work- sheet is to measure the selling area, including all gondolas, IO aisles, and displays. Many times a construction blueprint is available to obtain the dimensions from, and thereby eliminates the need to measure. Figures should be drawn to a convenient scale for reproduction. Since the.observor must physically follow and record the customer actions, the flow pattern breakdown should be reproduced.on 8-1/2" x 11" paper and placed on a clipboard. Sufficient copies should be available so that one sheet can be used for each flow. The sheets used in this study included 136 product and product group designations. Line number six, the green rack, was later divided into eleven classifications to represent individual produce items (see Exhibit B). Check lanes were numbered with Roman numerals. In the Braschoss and Baechle Method (B&B Method) as the authors have named it, the meat department items were written out so as to insure accurate recording during peak periods. Enough space was provided for the appropriate supplemental data to be recorded. These included: 1. ‘Day--This was provided for general reference and to aid filing. 2. Time—-This space was provided to record time spent in the store. 3. Shopper(s)--or ”shopping unit" were classified: male, female, more than one female, more than one male, male and female, female and children, \I'l IO. II. 12. 11 male and children, and miscellaneous to include all other units (example M--F--B—-G). Eléfif'ThiS classification was included in Order to evaluate the influence of a list on merchan— dise selection. Amount--Tota1 amount of purchases was recorded in the Space designated with no attempt to record departmental breakdown sales. X = Purchase-~This was defined earlier in the chapter and should be marked as precisely as possible within the designated classification. 9 = Handle--From earlier treatment the handles were very significant to the over-all shopping tour in the outlet. ----- Designated the movement of customer through the store without a shopping cart. Designated the movement of a customer through the store with a shopping cart. W--Symbolized the services of weighing, cutting, or wrapping either in the produce or meat depart- ments. E--Symbolized employees performing a service in grocery department, including the bottle return. Q££--Symbolized the manager of office personnel performing a service. l2 13. Time Spent Checking Out-~The time the customer entered the check lanes subtracted from the time the customer left the check lanes. 14. Remarks—-Space to record any unusual happenings which may be of interest for further investi- gations. Following the Shopping Unit Flow pattern analysis, in order to serve as a mer- chandise layout guide, should be performed in at least one store for at least one week. A minimum of one hundred flows adds support to the findings. After a brief orien- tation, any person familiar with supermarkets could be employed to gather the raw data. The B&B technique is applicable to most retail food outlets. Since what the customer does in the store is important, store volume and physical layout will not impair the over—all effectiveness. In studies of this kind the problem of bias is some- 'times present. Since all bias cannot be eliminated, it should be controlled wherever possible. What areas of bias can arise? And, what can be done to control them? First, the area of time may inject some degree of bias. Since the study is run full—time the general method of controlling bias would be to record flows in proportion to the busy hours of the day. 13 Second, the question of how many should be run on specific days during the week. Average daily volumes divided by the total sample will provide a method of deter- mining the answer. Third, the recording of actions in the store by the observer ndght differ if the various information desired is not clearly defined and properly carried out through trainingcmf those gathering raw data. The definitions and methodology should provide many of these answers. Fourth, probably the area in which most studies are statistically weak is that of customer "selection" or randomness. The probability calculations underlying statistical acceptance sampling assume that samples are drawn at random.- That is, each article in a lot is assumed to have an equal chance to be selected in the sample;* The nature of variation in random samples is described by the theory of sampling (based on all possible samples), which shows that large samples selected at random are representative of the universe. The relevant principle can be stated as follows: In most large samples selected at random, each statistical measure of the sample (e.g., average or proportion) closely approximates the corre- sponding measure of the universe, eveanhen the sample is a small part of the universe. 3William Spur, Lester Kellogg, and John Smith, Business and Economic Statistics (Homewood, Illinois: RiCHard D. Irwin, Inc., 19547, p. 88. *The limitation of having two observers made it nec- essary to begin the unit selection process anew after each flow pattern was recorded. l4 Often there are practical difficulties in the way of random selection of a sample. If it is practicable to assign a different number to each item in the lot, chance devices can be used to determine the items to select.LL The method used by the B&B team was drawing balls from a bowl which will be described in detail in Chapter III. Published tables of random numbers are available to choose the items for the sample.5 The well-trained observer should follow the shopping unit around the store using the statistical methods men— tioned, keeping in mind the desired goals. Care must be taken so that the subject is not aware they are being ”followed." Following too closely tends to alter the tour and the reverse finds the observer without many important facts. The question could be raised as to whether it is advisable to ask basic questions of the customer before or after the shopping tour. Questions beforehand tend to seriously affect their actions while in the store. Some of the people suspected they were followed. Questions at the end would, therefore, confirm their suspicions and often- times cause poor customer relations. Since clipboards were uEugene L. Grant, Statistical Quality Control (New York: McGraw-Hill Book Company, 1952), p. 389. 5J. M. Juran, Quality Control Handbook (New York: McGraw-Hill Book Company, Inc., 1951), pp. 423-421. 15 carried, the B&B team members were frequently mistaken for employees. This was advantageous. If other supplementary information is desired it could be gathered at other times rather than seriously effecting the flow analysis or causing ill-will among the clientele. Compiling the Data Raw data recorded on the flow pattern worksheets in the method presented was tabulated manually. Large sheets of paper marked off in sections with appropriate columns for passes, handles, and purchases serve well where the observer plans to use the data only once. One member called individual passes, handles, et cetera, while the other formally compiled the data. The individual item totals were gathered bi-weekly so that advertising effectiveness could be analyzed. Resulting figures could be tabulated to high-light specific areas of interest. International Business Machines (IBM) systems could be worked out for this work, but for the needs of this study on the limited scale the cost would have been prohibitive. Some of the more important totals were: 1. Passes Not passes Handles Purchases Ulrooto Per cent of passes 16 Per cent of purchases Total purchases Average purchase \OCI)\10\ Average time in store 13. Average checkout time 11. ‘Per cent of checkout time to total time 12. Departmental breakdown of services 13. Number of shoppers not using services 14. Checklane used 15. Carryout versus parcel pickups 16. Types of shopping units The data could be grouped into daily, semi-weekly, or weekly totals, et cetera, depending on the detail required (see Exhibit C, sections 1-4). Other figures could be cal- culated besides the ones shown in Exhibit C. Analysis After compiling the data the next step is analysis. Key store personnel could gather the basic data and send it in to division headquarters for analysis. The results would give top merchandising and planning management a better picture of the outlet from which they could evaluate the merchandise layout. Since this study was concerned mainly with the grocery areas, the following will not apply in some respects to perishables. However, ideas are offered which may be used throughout the entire store. 17 Individual flow analysis is not the complete solution to merchandising problems, but indicates factors which need further consideration. The compiled data could be analyzed so that: 1. Extremely high and low pass and purchase areas could be pin-pointed on a blank flow pattern work- sheet for a graphic presentation. 2. High profit items could be plotted on the same chart. LA) Any areas where handles were very noticeable could be plotted. 4. Items that required repeated stocking because of high stock turnover could be plotted. .J 5. The average tour of the shopping unit around the outlet could then be drawn in. 6. Anything which occurs enough times to make it significant to the over-all picture could be indicated. The result would be a flow pattern worksheet marked with all pertinent data giving top management concise infor- mation with which to appraise the layout. Applications The B&B method is almost unlimited in its applications. This type of store oriented research could prove to be a useful tool for food chain management. 18 Conditions resulting from shopper activities are listed as follows: 1. High handles combined with low purchases could indicate a need for more closely appraising price, variety, or competition in the shopping areas for the product or product group. wavpurchasescould indicate a need for relocation, recombination, or elimination of items. Low passes in certain aisles could indicate physical barriers obstructing movement, frequent congestion, or possibly lack of aggressive merchandising. Low end and special display purchases could indicate poor location, eye catching qualities, or buy appeal. Low passes and purchases of advertised items could indicate a need-for a closer look at the ads, location in store, or possibly, competitive pricing. Lengthy shopping tours combined with high demandand low impulse goods sales could indicate that the shopper was not exposed to many impulse items. High percentage of total store time spent in check lanes could indicate a need for timing when opening check lanes, checker training, or possibly more bag boys during the peak periods. l9 8. Many times high pilferage could indicate blind areas in physical layout--this can be graphically brought out by the B&B method. 9. Demonstrations, often times felt to add interest to store merchandising,should be judged not only on their own merit but also on their effect on other items nearby. 13. The long gondola layouts of today have the advan- tage of cross—merchandising--demand items across from demand items, with impulse items across from impulse items. For example, baking needs with a non-food peg rack above and sugar with kitchen utensils across the aisle from it. This list was not intended to be complete, but to point out some of the shopper activities which might be observed. Limitations Flow analysis, if properly used, points to factors which need further consideration. The main danger is that this technique will become the all inclusive answer rather than an approach to scientific merchandise management. There are several recognized limitations. In order not to weight the study or add qualitative judgments the method, for the present at least, should remain as stated. A pass is recorded where a customer could have noticed an area at any point on the shopping tour. Since 20 the observer is following the customer without asking any questions, this is the only way to eliminate the qualitative bias of "thinking" what the shopping unit really did. A pass is recorded only once even if the shopper travels by the designated section more than one time. This method tends to record passes possibly a little lower than they really arex Handles include items which are picked up but not purchased by the customer. Only one handle is tabulated regardless of the number of selections and returns made in a designated area. This was one way to tabulate the results, keeping in mind that each individual shopping unit should remain equal regardless of units handled or purchased. Quantity purchases for one customer should receive only one mark on the final tally sheet per designated area. As with handles, the results tend to make some sections look low in relation to passes. The same method of compiling was used for customer services. Maximum number of services per customer in the four categories considered was one for each depaRtment. In the B&B method the in—store recording was performed on flow analysis worksheets. All multiple purchases, handles, double-backs, and unusual actions by customers were noted, literally everything that was done by the sub- ject. These individual sheets were kept in daily packs and could be referred to wheRTthe need arose. The results 21 or totals show trends and the worksheets temper certain of the figures. Only through working with this type of study for a period of time, and following up over—all recommen- dations, will the researcher become proficient. Summary The author has attempted to present the B&B method showing how it has application to merchandising management. A study of this type becomes more effective as it is worked with extensively. As with any research, there are limitations and bias: to disregard them would be fallacious. The job became one of trying to control these conditions and still retain the over-all effectiveness of the method. Since every store presents a different climate of problems little attempt was made to generalize, but rather to set down as clearly as possible the basic areas of methodology. CHAPTER III THE STORE USED FOR THE STUDY This chapter describes the Greater Lansing shopping area, relates facts on the Frandor Shopping Center, and study. The Greater Lansing Area Lansing, the state capital of Michigan, has a popu- lation of almost 203,333 people in the highly industrialized confines of the shopping area. Such factories as the Oldsmobile Division of General Motors Corporation, the Reo -Motors, Inc., Duplex Truck Company, Motor Wheel Corporation, Duo-Therm Corporation Division of Motor Wheel Corporation, John Bean Division of Food Machinery and Chemical Corpor- ation, and others, employ approximately 32,333 people. The industrial workers in Lansing averaged nearly $133.03 per week during 1953; in addition to this, the industrial pay- roll is augmented by that of the State Government, employing over 6,333 persons who received over twenty million dollars in salaries and wages annually, and the Michigan State University payroll having over 4,033 persons receiving in excess of twelve million dollars annually.1 Greater Lansing, according to the Consumers' Markets Standard Rate and Data Service, Incorporated, had a spendable income of $365,431,000CH'$6,687.33 per household in 1954.2 In addition to this, there are over twenty thousand Students enrolled at Michigan State University, representing every state in the nation and more than fifty foreign countries. Building projects now under way include a city of 456 modern apartments for married students. Frandor Shopping Center Due to its geographic location and its excellent wholesale and retail establishments, Lansing is the shopping center of Central Michigan. Frandor Shopping Center is conveniently located halfway between Lansing and East Lansing. It is bounded on the North by East Saginaw Street (M-78) and East Grand River Avenue (US-l6), and on the East by Ranny Park, on the South by East Michigan (M-43), and on the West by Clippert Street (see Fig. 1, page 24). The Frandor Shopping Center comprises fifty-five acres of land, on which fifty stores are built. Five thou- sand cars can be parked in its confines. lFrandor Shopping Center Brochure, Lansing, Michigan, 0\ 195 2lbid. U mama .emsoaa 4m mt. O z HQ 750 ..w $20. 2 .4 2 4.11.7... 3 a a in x v. . 3.3.4... 7L“... . . L 97H .4) Lgf a»? Tatfiprtr. -15... rx w- .H owamam 0712 v.11». A, 503.». amper mum dum< m82m o o m m o No. Designation g g; :3 ".3 f, g S,’ S S E a Rs as. g: a. A. a. 97 Dietetics 137 63 O 2 1.0 31.5 137 Toppings and party foods2 104 96 O 7 335 48.0 112 Kool-Aid 85 115 1 12 6.3 57.5 M 1Based on 200 shopping units from July 2l--August 2, 1958. . ' 2Stock above the dairy case is not included in the figures. location above the ice cream case and the natural tie-ins between the two. KOOl—Aid represented a high profit return for the outlet during the particular two week period of the study. Over half of the shoppers passed the designation and 12- Out of 115 purchased. Recommendations. 1. The dessert designation #89 was replaced by a ‘ new ice cream case in an earlier recommendation. Since desserts tend to cauSe customers to stop and purchase, the author recommends locating desserts and dietetics on the 61 same gondola at designation #97 presently stocked exclu- sively with dietetics. Desserts would add traffic to the dietetics and the result would be a greater return for the store. 2. Toppings and party foods sold well above the ice cream case during the test study. In keeping with the new ice cream location this product group should be moved to the new designation (see Exhibit E, NO. 2, #89). Under the_ section on "End Displays," a new location will He discussed for party goods. 3. Kool-Aid could be relocated to the top of the frozen juice case presently designated at #138. Soft Goods and Non-Foods Findings. Policy on this line is to only carry a limited number of items. Many times when special deals are available on a product group, they will place an order, but just on an in and out basis. The recommendations made in this section were, therefore, tempered by the over-all policy considerations. One-fifth of the shopping units passed the magazine rack. This figure, although low, seemed more encouraging when coupled with the rather high per cent of purchases which the study revealed to be 6 per cent of the sample population (see Table XII). TABLE XII 62 NUMBER OF CUSTOMERS WHO PASSED AND PURCHASED'SOFT ' GOODS AND NON—FOODS IN KROGER STORE #G-224 'o o s '0 P T S s No. Designation .p 33’ 33’ .03. cd .c: a) 0:0 m re .2 was) tan) 2 (U CO C. o a no a. m m a m II: :3 DA 04 (1.. 33 Magazines 163 40 4 12 6.3 20.0 34 Soft goods 137 93 7 2 1.3 46.5 35 Stationery 168 32 3 2 1.3 16.0 36 Comic books 98 132 3 3 1.5 51.3 37 Stocking rack 95 135 O 3 1.5 52.5 87 Soft goods 86 114 5 2 1.0 57.0 139 Records 145 55 2 l .5 27.5 8 1Based on 203 shopping units from July 2l--August 2, 195 . 2 End display at present. Soft goods appeared in two different locations--one near the bakery gondola, and the other at the end of the blind aisle. than purchases. In both designations there were more handles recorded sideration. Only 2 Observed shoppers purchased stationery. This designation, the study revealed, was only passed by 32 The data indicated a need for further con- 63 shopping units. Comic books, however, showed the percen- tage of passes at 51 per cent and purchases Were recorded at 1.5 per cent. Over half of the total shoppers passed the stocking rack, whereas only 27.5 per cent passed the record designation. Purchases were about the same, with 1.5 per cent shown for the former and .5 per cent for the latter. Recommendations. 1. In many instances, related product sales increase when similar items are stocked together. Designations #52 and #53, formerly stocked with pet foods and wine, could be remodeled to accomodate magazines, comic books, stocking rack, and records. This would locate all similar items across the aisle from the health and beauty aids. The proposed change would expose to these high profit lines over half of the shopping units. A complete picture of the new locations is shown on Exhibit E, No. 2. 2. Recommend that the dog food display #51, be eliminated to permit the construction of an end display of stationery items in its place. This item would tie—in naturally with the nonffood items on that gondola. 3. Soft goods could be moved to one location, i.e., designation #3h, without affecting the percentage of total passes. A consideration of this type should induce greater ‘L . customer interest and sales. End Displays Findings. Store merchandisers are constantly asking themselves three questions: What should be put on display?, Where?, and How long to leave it up? The following figures should stimulate such questions in the minds of the manage- ment of Kroger Store #G-22M. Special displays are used primarily to increase sales. Food chains have found that such displays increase sales of virtually any item in the store. They account for about 7.5 per cent of direct sales store tests have shown and the buying atmosphere they create effects an estimated 20 per cent of total sales.“ These displays also create price impression, estab- lish customer confidence in quality of products, influence traffic patterns, and accomplish a number of other results.5 Table XIII indicated low percentages of purchases for almost every end display despite a high average per cent. of passes. Kroger store #G-224 has a display on every possible end area.‘ During the period of study there were few grocery displays that showed imagination. u"l958 Display Manual," Chain Store Age, Vol. 34, No. 2 (February, 1958), 56. 51bid., p. 56. *—*~ NUMBER OF CUSTOMERS WHO PASSED AND PURCHA ED FROM END DISPLAYS IN KROGER STORE #G-224 TABLE XIII 65 U U o o o 4:13 'o a) m m *8 22: a; a; 2 2 a; No. Desi nation 8 3 a :3, g *2 M CL. 94 CE! :3 0-4 m m 21 Pickles and catsup 2 198 O l .5 99.0 22 Tea and J chocolate 2 198 l 5 2.5. 99.0 37 Stocking rack 95 105 0 3 1.5 52.5 39 Toy rack 47 153 4 2 1.0 76.5 51 Dog food 69 131 0 5 2.5 65.5 54 Wine 40 160 2 2 1.0 80.0 55 Wine 43 157 1 0 . 3.0 78.5 62 Carton cigarettes 58 142 0 11 5.5 71.0 64 Candy 39 161 O O 0.0 80.5 65 Nuts 37 163 l 9 4.5 81.5 67 Beer 22 178 0 1 .5 89.0 76 Coffee and marshmellows 37 163 1 1 .5 81.5 80 Basket of ' values 31 168 1 12 6.0 84.0 86 Carton cigarettes 41 159 O 17 8.5 79.5 88 Tobaccos 88 112 0 1 .5 56.0 90 Pork and beans 48 152 O O 0.0 76.0 91 Tuna fish 44 156 1 13 6.5 78.0 95 Potato chips 46 154 l 14 7.0 77.0 98 Light bulbs 70 130 2 3 1.5 65.0 100 TV frozen - dinners 60 140 O 4 2.0 70.0 101 Peanut butter 64 136 1 2 1.0 68.0 1958. 1Based on 200 shopping units from July 2l--August I'D 66- Recommendations. 1. Remove the eight displays not included in Kroger's original blue print. These include designation numbers 21, 37, 40, 55, 64, 76, 91, and 101.6 (See Exhibit E, No. 2, for revision.) This change would permit larger, more attractive displays to be built across the aisle, thus reducing shopper congestion. Other suggestions are: Locating party foods at designation #54 to fit in more closely with beverages; stocking tobaccos on the two cigar- ette racks; and moving canning supplies into designation #80 from the special display designation #118. 2. Careful planning and attractive construction is necessary to induce customers to buy from displays. There is a need at this outlet for an individual with abilities to carry out this task. Special Displays Findings. Special displays, by their definition, should create interest and induce purchasing. Table XIV indicated that few shopping units were motivated by such displays. - ' Hawaiian punch was displayed for a week and a half. Thursday, Friday, and Saturday of the first week the product 6"Fixture Plan," The Kroger Co., Store #0-224, Frandor Shopping Center, LansingTIMichigan, June 22, 1954, Sheet #1. I |1ll iii 1 was sold by a demonstrator. Of 111 shopping units that passed the designation only 13 actually purchased, although many left cans around the store. TABLE XIV NUMBER OF CUSTOMERS WHO PASSED AND PURCHASED FROM SPECIAL DISPLAYS IN KROGER STORE #G~2241 ro o e e e 33 8 No. Designation ‘8 33’ 33’ 3 2:" 2:6 8 Z m U) 'U 0 R o R m m m c p a w 0.. m to :3 66 a: n, n. m 25-1/2 Hawaiian 24 111 3 13 9.6. 82 5 punch2 50 Pet supply 78 122 3 1 .5 61.0 rack 118 Canning 142 58 O 3 1.5 29.0 supplies 131 Beer 70 130 l O 0.0 65.0 j ‘_'_._v 8 1Based on 200 shopping units from July 2l--August 2, 195 . 8 2Based on 135 shopping unitgifirom July 2l--August 2, 195 . Pet supplies "attracted" one shopper out of a possible 122 who passedrthe designation. Canning supplies were sold to 3 shoppers and were passed by 29 per cent of the total customers. Beer, located in cases, next to the "bottle return" door was not purchased by one shopping unit in the sample. Recommendations. l. The demonstration caused serious bottlenecks and resulted in some customer irritation. Sales did not seem to warrant the result of making customers travel around the congestion thereby missing some product designations. This outlet lacked the space to effectively use demon- strations unless they would be able to work from behind cases. 2. Canning supplies could be moved to designation #80 for a tie-in fall promotion. 3. Earlier recommendations call for moving the coke machine in the corner of the outlet presently designated #131. Beer could be effectively sold in full case quanti: ties by "bottle return" personnel. A wall Sign could list the various case prices of beer and soda. A Simple ques- H tion like, "would you like a refill madam?, may increase sales. Clean, empty cases on display could also act as a reminder for purchasing beer and beverages. Miscellaneous Facts Findings. All data discussed in this section appears in detail in Exhibit C, Section 4 Of the Appendix. Miscel- laneous data recorded on flow analysis worksheet indicated: Total dollar volume for the study“ . . $1923.49 Average dollar purchase . . . 9.62 Per cent of shopping units who received grocery service . . . . 13.5% Per cent of shopping units who received office service. . . . . . . . 5.0% 69 Per cent of customers who did not desire service Per cent of customer shopping without a list Average shopping time in the store (in minutes) Average time spent standing in checklanes (in minutes) . Per cent of shopping time checklanes Per cent of customers who pickup system Table XV showed that 56.5 units was comprised of at least fact indicated that a good deal should be directed toward these 52.5% 74.0% 21.29 5.08 23.86% 53.5% spent in used the parcel per cent of the shopping one man and/or child. This of merchandising effort two groups. TABLE XV PERCENTAGE BREAKDOWN OF SHOPPING UNITS IN KROGER STORE #G-224l Classification Number Percentage Male alone 16 8.0 Female alone 72 36.0 More than one female 15 7.5 More than one male 2 1.0 Male and female 35 E 17.5' Female and children 31 ] . Male and children 4 15.5 Other 25 2.0 TOTAL 200 100.0 + 1Covering the period from July 21 to August 2, 1958. 70 Table XVI shows that checklanes I and III were most frequently used by the customers during the period of the study. Seventy—two per cent of the shopping units passed through the first four checklanes. The purchases of customers from checkstandrracks and adjacent dump displays was also recorded. Eight customers out of 200purchasedfflmm1the area in checklane IV but only one customer purchased from checklane VII. TABLE XVI PERCENTAGE OF SHOPPING UNITS WHO PASSED AND PURCHASED IN THE CHECKL S IN KROGER STORE #0-224 ' Checklane % Purchased % Passed I 3.5 20.5 II 3.3 16.0 III 2.5 20.0 IV 4.3 16.3 V 3.3 12.5 VI 1.0 9.0 VII .5 6.3 8 1Based on 200 shopping units from July 2l--August 2, 195 . Recommendations. 1. Direct more merchandising effort toward men and children. 2. Employ proper timing when opening checklanes and adding bagboys during peak periods: 71 3. Display and promote impulse merchandise to its fullest extent. Summary Kroger Store #G-224 is one of the highest volume stores in the Grand Rapids Division. Sales have never dropped below bonus figures. On the surface, an Observer might feel that the outlet has the optimum merchandise layout. The question might be asked, ”Is this outlet realizing the maximum return on the investment considering the ideal location?" There are indications from the data presented that changes in merchandise layout are needed. Variety, dupli- cation, and attractiveness are three areas that should be considered further. The foregoing discussion is one approach in improving the sales figures through stockturns. It is not offered as the only answer to the never ending search for optimum . merchandise layout. CHAPTER v RELATION OF THE FINDINGS TO ADVERTISING This chapter will make some evaluations as to the relative effect of advertising on sales at Kroger Store #G-224. One of the major considerations in selecting this outlet for the test was that all newspaper advertising was run in the Lansing State Journal on Mondays and Wednesdays. This newspaper is published once a day on a seven—day week and is the only local newspaper. The Circulation area includes Greater Lansing. Since Kroger also employs a spot-radio campaign, and periodic handbills in the form of "bag stuffers," it is not possible to directly correlate advertising effectiveness to newspapers alone. However, the Lansing State Journal ads were an important medium used in Kroger sales“ promotion. No attempt was‘fiEde to qualify which department or particular item was most significant in attracting customers for the period covered. Herman F. Baechle found the perishable departments increased sales during promotion periods which sometimes effects the grocery department.l 1Baechle, op. cit., p. 53. e- The chapter will be divided into four headings to correspond to the newspaper ads: 1. Monday July 21, l958--covering July 21—23 versus July 28-30 2. Wednesday July 23, l958--covering July 23-26 versus July 30-August 2 3. Monday July 28, 1958-~covering July 28-30 versus July 21-23 4. Wednesday July 30, l958--covering July 30-August 2 versus July 23-26. Product group designations include other items not repre- sented in ads. Since the shopping unit must locate the. item on the shelf, sales of adjacent items may also be effected. Product designations which were advertised in comparative periods were not included in the tables Since no logical analysis could be drawn. Monday, July 21, 1958 Figure 2 shows the Kroger ad which featured bacon, cauliflower, and fig bars. Table XVII was adopted from the data breakdowns in Exhibit C, Sections 1 and 2. The figures show the number of passes and purchases for the advertised product groups and the number of passes and purchases of the same product groups during a comparative period when they were not advertised. No attempt was made to tie-in special and end displays since what the shogping unit bought from the shelves was felt to contribute more to the over— all profit picture. :"cAT‘TOO‘o’ 2 ...- ; Pullth-d-flmnfih" an. I. .-. .o— .uo-‘oc—c c—o~'.-»o-o- “.u—w—cgnv -‘o--o--'— -§--- "I -- — v..— 5:: ‘ ‘ SAVE-TWICE H ' -. E GotTchcluSth “Imam! h INSTANT COFFEE ‘3 fl. 3S CO-ETS W 25: Id. uh. gal-duo In. a! hill. KAISER," [21h .. "' 43‘ Mlclugan KARO svnur '32...“ 25c large W In III- luv-III h In! to... Mum MAZOLA OIL 0- 19: traumas Tb-hWthhunhlh-i‘ SNOW 'umAl. MAZOLA OIL - _ G“ $2.59 nth—Mh-h. “““'""°"""”""‘ WHITE ..".:."..'.'...“.'.'."..'.'3.. KLIEN ' c CHOCOLATE SPANGLES CaIQEEQYfiEMLZ9 3V. 0:. m. 20 mehhhdeWHH bun—a. beat the heat! aosco "52: 31: M u- Ian-- M '1‘ a bun. * Eliza’s 51m... '2' 5.. issws'v'ies... '5 .9. Wilson TETLEY TEA BAGS '5? 67¢ ' In" I”? d M ivy-In! Tc- Drflan. . mam“ .5. Laurel Sliced Wilffil-IADEH fl .. a: 39: B KRAFT OIL ”:1: 75¢ a C 0 II M “Fm lit-H Ibfl-i-I It! CON-‘- CHILI WITH BEANS a: 33: v- a. Hum-bu. Ind-u a. m m c :IPAPSASJJESE. '5 39. lb- 5 9 . PIGS FEET "f2,“ 43C '0 mhflfluhhcm‘k‘. ‘— "'“"" ”‘" "‘ " "' "' “" r o . ‘ . . .v.v.v.v.v.v.v.v.v.v.v.mum”.v.v.v.c.v.v.v.v.v.v.v.v" . . . §EEE&25'E°.££‘L 4" 39‘ VALUABLE coupon BEEF STEW w 39.: I.” “-— SAVE 19‘ KROGER FIG BARS “be. I'm! cud I‘m" Fr ”call In”! {Mm “find-uni“ WILDROOT CREAM OIL ‘ Eat lasing Inga lurlh Lansing Inga South India: Inger Frandor 0am Inger $55 E. G!" lint ITZI N. Gaol IIvcr An. MI S. Co"! St. 4I0 Emit 4-‘_-._-. , ., _" ‘ - _. - _ . . . ( i) u gufle 2. hroger Ad—-July 21, I95“ - ‘_._....._._. -4 M“~J--M _-- -¢—~-‘ -‘A- —.._.--~ . —-_-_-..‘.___ _. -.-‘—-_... .__‘...—.~.. —.-._.. --- _ 75 .mmhsmHm on» CH woosHocH no: opp mmmHQmHU HmHoomm cam pcmm .mszs wcHQoocw mm so comma .mmmH Aomumm EH55 m5mpm> mmIHm.zH:b voHpow on» wQHLo>ooH m SH. o «H moooe ooasoosm soH s 4H m m mmooHsn sesame mm s mH a RH monooo Hm m sH m mH moooe pom mm m 6H m 3H moHs season was coHsom as H mH m :H oon w: H m m 6H mHozoe Hm m. m o mH Hogan was one HHom or 6 mm m mm oooooo mm H mm 0 mm moomHoooso am 0 Hm m mm see mm H mm m sm mHHo one mmoHomobm om oommonSm oommmm oommcohzm oommmm coHpmcmeom .oz oomebo>o< ooz oomHopo>oa immuck mmoem mmoomm 2H mzmeH QmmHBmm>Q< QmmR mqmde 76 Columns three and four in Table XVII show the number of passes and purchases for the specified designations recorded for Monday-~Wednesday of the first week (advertisd period). A similar set of figures was gathered for the same three days of the second week, which appear in columns five and six of the same table (not advertised). Limited advertising effectiveness was noted from the data shown. In fact, more passes and purchases were recorded in many cases, for the second week. Figures for the perishable sections of the store showed that there were marked increases during the advertised period for most items during the two week study.2 Indications were that customers shopped the grocery department the same regardless of whether or not the ad "listed" the item. Some observations made of Figure 2 include: 1. The ad was built around a meat and produce item. 2. Fig bars were the only grocery item which was featured. 3. All other items were listed in small print except for Wildroot cream oil and Kleins' spangles. Wednesday, July 23, 1958. Kroger mid-week ads are generally more complete and designed to build store-wide sales (see Figure 3). Thrifty 2Baechle, op. cit., p. 54. Chuck Roast . 49c Mum-c! ”Humhlmnm‘mmhmm! ' Kroger Fresh, Loon Ground Beef 49 board the Kroger express to summer hm! Nam-unnumlnpnl-u—HIVl-m TV SPECIALS S '68? CCCK’I'ES I...“ 29c Put-I Cr-uu (a. MI- 09‘ ‘9‘ FAEY D'NRER .. 19.; Int- ll. “-9 I- I.“ 3 POTATO CH‘PS .. 79: 1|: \n In. no I. untold pun L I‘I\\‘CH "(445 A T3 3 ~ E." h w “W \IU «he! d '1'. Purl. Nov-Ix «d ooh 9099 motion m‘ of!!! ' Peaches . . South “humid—adv Ior urn-or Mate 99969.. (I -'-—-.-._ ._.- . . H.--.. -- . 3 L77]?— 3 w. 3‘ : PEPPERS . . . . CG. 9: : l9“: 0-. I It"- Lo‘w-t In“ rm I." 3 FT,“ "HI . ti~ua~77 (7“‘-r:'- PE hCCC.’ Q: ‘, (lmhfll In N- IND-r.“ I I - ' I I unc eat ,m c menus me .. 39c I l C. bolt-I-MHUp-fi I I CWCHMMHIIMMmm-dbfl SAND“,[CH E3 EAD H 22C I Mo‘h‘np-w I ICED TEA SAC-s ..... 59c = mona e .. c ~--~--—-- c. ‘ Ih-on. PORK C'EFAM‘, 4 .. 49c I-v-Imr—ddt-nat Butter .. 49 thmuathmhfim-Cmmm “Can-Idl- Supt-Mum. Admflnhfllhhfl. G ' V ' E O ' II... I V I" O ' I V It'll]! I. J '1'... ‘OH VALUABLE COUPON SAVE 20c COUNTRY Cits UH Hz \\ ...................... ammo, coffees 69 CIrOChur n I”: in M with In ronclad-i- rkl y“ W J“ ”VII IUI El” rmu 3mm mm“! ' H, II" Tumum-unm , """ I'nm ‘ Ml Q1710!“ 9.".9..9I9999.99. ’0 .17) mac - .¥._' , T4 ,:‘ ONLY ‘690 ‘7 50 FREE 5': E?- . .. m : TOP VALUE STAMPS .: g. ,_ . ' '“" "‘ . ................................ 1; ; ram-Tumult . 0.99900" ‘:,_. _ nu nun um: m III! mum-u 1: C w t I s I M 1 m. . ;. 1. ‘ 69¢ \m m = ' 1',— k “Min-'9 I Mlfl~~i1wflhn~b§ohnln~o~ '. "' "‘ ’-”‘“ ”MLMKML ~ umuwm~~u~vhulm-~ ... 1'] I II I {IInmp'lqppppm E7 7" “mummhrmmrw- 0“”. .4... Aulillii‘Lllli‘ IL“ (444‘)! UV .7 ------------ """I ------ “““““ cfl~0lwwhu'~"mh V flI‘IItlfl:lI"Il\-IIL\ll‘ll'llIYIB'VI‘II'-I| manna—w".qu l‘ 'L' '.' . ‘. . “If".I ". [‘fle D: "LKT :7- “ ‘ ’ II... a. , ‘ . I ~ I L/UL but 93. 3‘“. . \- TE“ n9 9“ - ~— |-.-.I\u nun... CI .q u |- FL". "1 I... '7‘. ”we.“ Ibi- I old‘ “*9- “.-. and. Id 0-.— I‘m ‘ ~ -v »- -v n , -2 7"\ .7:§ I ‘3: l‘. JEN : \TZ‘III’ r... r“ l - I ._ ‘3 '— “ I7C RA'N [IKCF D n‘ “ 33C M d “:14 draw-«l k9 mu :0..." 1i- .Anudll—u-umwi. Imnob «I I. tub-hum liq-5‘. 1" "—9 H94 .‘ ”‘- . . .. .. ‘2- OP qr nu... " I (IQ g...“ 77C DAMP RSWEE My“. 32C \Ll-a-h.mrh~4~mlul~m 1w «*‘hflnm IWWHMLTNt ( ‘ .fl‘TJ I -. . , .- ‘ - “fl.- - g"_ N. m . j - ' ‘ I r.- 9“ 77: I LANTERS LEAN-LT} ".a .. 3 'L noo‘ WAX I‘fldO-Il—l-ndobfip-w I— - ~A Mun-CW. I.“ \M-Ilur‘hM-ohnAI-Ib I. -‘ ‘ - . .._.,_ — ‘ ‘ 2‘:C - 7‘ I. -. ' - _ I- . Ln'/T F r: 9".“ :‘I JV 9" - 31:. NA“ \CO "RL.T._:L_\ 9,4: I“ : x. i A- --| mun-um» .pu- N‘- I-’ In“ ”all n'flthjand p-H-Ilmhn T9999 ro-I- nan-l I‘ ah (dun-4 I f EAST LAISIIG IIOGEI IOI‘I’II UISIIO "WEI SOUTH m [MEI "AIM OEITEI "00E! ._.-._ .553L0-«4Jm___ _ . J‘IZIfi‘QflMA-I. _ _ .. .W_._C_*$_I .. “OI-fl Figfl”0 3. Kroger flfl—-JH?V 2;, 197; ' ‘m- ~‘w‘..._—o - - — - -«o—-- _.._. ._ .- -‘..-‘v- .‘--... -—’- .w--‘.-¢. -..~.a..-._.~o--... m.——.—.—.c -- .-.. < w...'——A.._ 78 Beef, peaches, luncheon meat, and lemonade were the featured items. Emphasis was placedFOn newspaper advertising by the use of coupons redeemable for merchandise. There were a few differences between the figures for the advertised and non-advertised periods (see Table XVIII). Bakery products and lemonade indicated that shoppers were influenced by the ads. Twenty~eight purchased bakery products during the advertised period versus only 18 for the non-advertised. Frozen specials showed purchases were lS--2 respectively. The interest shown in lemonade might have increased sales for other frozen items if it were located in the main frozen food case. Tea, crackers, wax, and polishes were purchased by fewer shopping units when they were advertised then when they were not advertised. Few product groups were made up exclusively of the advertised item. Bread had a few brands and several varieties for the customer to select. The B&B technique was able to indicate marked differences between comparative periods in advertising effectiveness. Monday, July 28, 1958 Ten pounds of sugar was advertised for 89 cents in the half page ad which appeared in the Lansing State Journal (see Figure 4). Four shopping units purchased during the' period without advertising whereas only three purchased during the period of the advertising. a .mmpdwfim on» :H oopSHQCH no: mam mmmammfio Hmfiooam paw Ucmm .mmma .m pm5m5 wmnmm mafia ooapma on» wcfihm>00 mufics madmaonm mm coommmmH m mm ma s: mamfiommm soon cmuopm moH s om s Hm mmcmmn omxmm moH : o: w m: mmfispmmm mm m mm m mm wooed spam Hm 3H m: Hm g: owmpm as m mm m am mpsz ms m Hm ma mm mm xooo Hm ma em ma m: _ mpmxompo ow m pm a :3 woampmga cam mafico oumuom mm s H: m em momma om can mmxmz m: NH mm ma mm . mmmmmoo mm m mm _m mm mama mm ommmcopsm Ummmwm oommcoLSm oommmm cofipmcwfimom .oz ommfipgm>e¢ poz ommfippm>c< Hjmmccfi mmOBm mmcomm 2H WSMBH QmmHBmm>Q< Dmmdmombm Qz< Qmmm¢m Omz mmmzoembo mo mmmzbz HHH>X mdmde u- ”w -- _..-- -_..“..— ---- 4....--~,__ ._,._'_ _ _-‘_ .—-~' MM‘I'HDFI ‘MM’IINMMMMMG-pahIUO-Wan mwhmflmh‘cnddedddwabhmflwc ...cbdoedfirmeda1bnmmumm.9ukm unludodbo. Andamhuemaaenthothervendeddhphlmqflb? mammooorumbéhomhmnowummrop VduoRodunpUcnSbreJnddlfiuJooJorflnTodeuo Stamps moduhcnyoudwpcthSbramdothabodlmn-rehanh. 'rmaaaamuuaeoom. Canister Set FREE , for Top Value Stamps Save on Pioneer Pure Sugar Sugar Special mm-w'. Tab “I, Store. GetalO-heockolPIonarPumSuoorbr You'll like shapplnodxrooorwhreyouhve hu—aadwmyouqelTopVehnSumbrha . . -5559!!! ... man-run..- -_. mam-1... w.” r? 19 )I T'-,, . ._, , - pm :JOUlv I. LiOQCL Ad—-July do, 89‘ uuuwunh—udaudnmnu—zua f1. (7 5 z ' ' ~Kroger SPECIAL SUGAR COUPON "Hha& dfihbwwa "mm Entlu'qlna Infill-ulna Mlairlna Frauen-tuba 81 Although the ad broke the monotony of general listings there was no seasonal tie-in mentioned, 1. e., sugar for the canning season coming up. Wednesday, July 30, 1958 Table XIX shows the reactions for Thursday through Saturday of the second week versus the comparative period for the first week. Shopping units were not greatly influenced by the Kroger advertising campaign. The July 30th ad theme was changed from featuring perishables to emphasizing a grocery theme, "Dollar Sales" (see Figure 5). Since many of the items included in the ad were at the front end, these figures were analyzed in- to the shelf designations. Where specials appeared limited differences were noted. Summary This chapter was included to give the reader some notions of how the data might be used to appraise food advertising effectiveness. No attempt has been made to generalize or even make definite statements for the outlet under study. There were indications that the division should be aware of: l. Advertised items which appeared on the shelves were not noticeably passed or purchased to an 82 .wmmfi.mm-mm sass .mmeswfim on» CH meSHon no: men mamfiamfip Hmfiooam Usw pcmm mzmhm> m pwswdoo mafia: wcHQrom mw co Ummmm H m em m Hm mmfia canons HHH m mm m mm mpfispe emccmo mofi 0H mm H mm mmoanmpmwm> coccmo moH ma Hm m ea mmmofisn omccmo mm m mm 3 mm swam omccmo mm m m: 0 mm mcoow peom em s mm a mm sows pmweme mm ma 0: ma mm mamom mm Ha w: NH am mapsmsfiucoo ma UmmmcoLSm pmmmmm ComanchSm commmm cofiumcwfimma .oz vmmfippm>o< uoz nmmfipkm>v< Hammucfi mmOBm mmwomx ZH wEMBH QmmHBmm>Q< Qmm61 $6 d». E g? $3.5. .93 30a MVP... teem \. mamas...» 5.6m. niacwe kmwm. knitwear EXHIBIT B AREA BREAKDOWN FOR TESTEKROGER STORE #G-224, EAST LANSING, MICHIGAN Coke machine Front displays Bulb food and lawn seed Watermelon Strawberries Cantaloupe Green vegetables Celery Radishes Cucumbers Peppers Carrots Tomatoes Corn Lettuce Green Beans Miscellaneous Cabbage Potatoes Plant sundry rack Fresh fruits Fresh fruits Fresh citrus and onions Fresh citrus and onions Special produce table-~plants Bananas Bakery specials Picnic supplies Jellies and preserves Pickles and olives Condiments Dressings and oils ED--Pickles and catsup ED--Tea and chocolate Tea Chocolate Coffee SD--Hawaiian punch Soap powders n Cleansers . Soaps [*SD--Special Display Picnic SUpplieS **ED--End Display] Foil and waxed paper EXHIBIT B (Continued) 31. Towels 32. Toilet tissues 33. Magazines 3A. Soft goods 35. Stationery 36. Comic books 37.**ED-Stocking rack 38. Gadget rack 39.**ED--Toy rack AO.**ED-—Insecticides and dial soap Al. Household items A2. Waxes and polishes A3. Bleaches AA. IT-5--canned hams A5. Dried fruits A6. Rice A7. Dried beans A8. Spaghetti and macaroni A9. Health and beauty aids 50.* SD--Pet supply rack 51.?*ED--Dog food 52. Pet foods 53. Wine 5A.**ED--Wine 55.**ED--Wine 56. Beer 57. Beverages 58. IT-5 Bacon 59. Potato chips and pretzles 60. Crackers 61. Cookies 62.**ED-—Carton cigarettes 63. Candy 6A.**ED--Candy 65.**ED--Nuts 66. Cereals 67.**ED--Beer 68. Baking needs 69. Sugar 70. Salt 71. Spices 72. Candy 73. Nuts 7A. Bread 75. Rolls 76.**ED--Coffee and marshmellows 77. Pancake and pie mixes 78. Flour 79. Cake mixes 97 EXHIBIT B (Continued) .**ED-—Basket values 10 fl Baby foods Milk products Syrups Bread Pastries .**Ed--Carton cigarettes-~ Soft goods .**ED-—Tobaccos Desserts .**ED--Pork and beans .**ED--Tuna fish Canned fish Canned meat Cmmmismms .**ED--Potato chips Canned vegetables Dietetics .**ED--Light bulbs Canned Juices **ED--TV frozen dinners **ED-—Peanut butter Canned vegetables Baked beans Prepared foods Frozen food specials Canned fruit Toppings and party foods Ice cream Records Frozen Juices Frozen pies Kool Aid Frozen vegetables Frozen specialties Frozen fruits Turkeys, ducks, cacklebirds Frozen meats * SD--Canning supplies Fish case 98 fl Canned miscellaneous meat, sauerkraut, and lard Lunchon meats Poultry Pork Tenderay Beef Ground Beef Thrifty Beef Veal Lamb 129. 129A. 129B. 130. 130-1/2 131.* 132. 132-1/2 133. 133-1/2 13A. 135. 136. EXHIBIT B (Continued) Miscellaneous meats Bologna special Thick cut steaks and chops Smoked meats Oscar Mayer display SD--Beer Milk Butter Eggs “—— Cottage cheese Dairy specialties Margarine Cheese rack 99 EXHIBIT C--Sect10n l FLOW STUDY TABULATION, WEEK OF JULY 21, 1958 Mon.--Tues.--Wed. Thurs.--Fri.--Sat. lst Week Total 'o in 'o - m (D <1) <1) 0 U) 'U U) "C U) "U U) 2: w o m m m 33 ‘2 E 0-. :3 f) N013 '53 '5) Not .6 o 3 8 Pass 5 8 Pass Pass 8 8 Pass Pass ii 8 +4 :2 a: a. I: an I: 04 1 O 35 o O O 65 O o , o 100 O O 2 o 35 O 6 O 65 O 17 O 100 o 23 3 o 35 O o O 65 o 7 O _100 O 7 4 o 35 1 4 O 65 2 8 o ”100 3 12 4-1/2 8 27 2 2 8 57 o 6 16 84 2 8 5 1 BA 1 5 6 59 O 9, 7 93 l 14 6-Ce1. 6 29 o 2 9 56 O 4 15 85 O 6 Rad. 4 31 o 13 9 56 2 19 13 87 2 32 Cuc. 5 30 O 5 9 56 O 9 14 86 O 14 Pep. 5 3o 0 5 9 56 o lo 14 86 o 15 Car. 6 29 O O 8 57 O 6 1A 86 O 6 Tom. 5 3O 0 6 9 56 O 12 1A 86 O 18 . Corn. 6 29 O 3 8 57 1 11 1A 86 1 1A ' Let. 5 3o 0 9 8 57 0 2o 13 87 o 29 G.B. 6 29 o O 7 58 O 2 13 87 o 2 Misc. 6 29 2 5 8 57 2 6 14 86 4 11 Cat. 6 29 o 1 8 57 O 9 14 86 O 10 7 14 21 O 5 2O 45 O 11 34 66 o 16 8 15 2o 1 0 3O 35 O o 45 55 1 o 9 6 29 1 5 7 58 5 2 13 87 6 6 lo 7 28 1 3 13 52 2 11 2O 8o 3 14 11 12 23 l 5 6 59 2 11 18 82 3 16 12 6 29 o 3 34 31 O 4 4O 6o 0 7 13 l 34 1 o o 65 3 7 1 99 4 7 14 l 34 2 7 O 65 4 15 1 99 6 22 15 2 33 1 3 O 65 4 2 2 98 5 5 16 2 33 2 4 2 63 ' O 9 4 96 2 13 17 21 14 O 7 43 22 O 7 64 36 O 13 18 17 18 o 5 42 23 o 7 59 J 41 O 12 .19 11 24 l 1 17 48 1 11 28 72 2 12 2o 8 27 O 5 15 5O 1 14 23 77 1 19 21 O 35 O O 1 64 o 1 1 99 o 1 22 O 35 O O o 65 1 4 o 130 1 4 23 7 28 O 3 O 65 o 3 7 93 o 6 24 7 28 O O o 65 o 3 7 93 O 3 25 7 28 o 3 o 65 1 19 7 93 1 22 25-1/2 7 28 O 1 O 65 3 12 7 93 3 13 lOl EXHIBIT C--Section 1 (Continued) Mon.--Tues.--Wed. Thurs.--Fri.--Sat lst Week Total - m TB U U 0 a a a 3 2: '8 2: z o. .4 1: Not ‘ .4 as Not 3 g E 3, Pass '2 8 Pass Pass '2 '8 Pass Pass 5 o p o m 5 7 m a p H z :1: a. :1: :3 :1: :3 CL. 0-: 26 21 14 O 5 22 43 o 12 43 57 o 17 27 25 lo 1 2 24 41 0 lo 49 51 1 12 28 2o 15 O 3 25 4O 1 12‘ 45 55 o 8 29 25 15 O 2 29 36 O 6 49 51 O 8 3O 2o 15 O O 29 36 1 8 49 51 1 8 31 19 16 O 3 29 36 O 4 48 52 O 7 32 24 11 1 4 28 37 o 17 52 48 1 21 33 26 9 3 1 53 12 1 4 .79 21 4 5 34 22 13 2 0 3o 35 2 1 52 48 4 1 35 28 7 O O 57 8 O O 85 15 o O 36 18 17 3 1 28 37 O 1 46 54 3 2 37 17 18 O 1 27 38 O 1 44 56 O 2 38 2o 15 6 1 26 39 6 7 46 54 12 8 39 13 22 1 O 16 49 2 o 29 71 3 0 4o 13 22 o o 17 48 1 2 3O 7o 1 2 41 24 11 o O 25 A0 1 6 49 51 1 6 42 24 11 o 2 28 37 1 5 52 48 1 7 43 24 11 O 3 28 37 o 7 52 48 o 10 44 9 26 1 o 3 62 2 O 7 93 3 O 45 2o 15 l O 29 36 1 5 49 51 2 5 46 21 14 O 2 31 34 O 1 52 48 O 3 47 21 14 O 1 31 34 o 4 52 48 o 5 48 2o 15 o 4 32 ‘rr32 0 lo 52 48 o 14 49 21 14 l 5 27 38 3 7 48 52 4 12 5o 17 18 1 l 22 43 2 o 39 61 3 O 51 15 20 o 1 19 46 o 2 34 66 O 3 52 22 13 o 2 27 38 1 4 49 51 1 6 53 22 13 o 1 3O 35 1 O 52 48 1 1 54 lo 25 O O 15 5O 1 o 25 75 1 O 55 9 26 o O 14 51 1 o 23 77 ‘ l o 56 2o 15 o 6 33 32 1 2 53 47 1 8 57 18 18 l 5 31 34 2 8 49 51 3 13 58 18 27 2 4 1 64 3 6. 9 91 5 IO 59 18 17 o 2 21 44 1 4 39 61 1 6 6o 2o 15 1 3 23 42 O 12 43 57 1 15 61 18 17 3 4 32 33 1 12 5O 5O 4 16 62 13 22 O o 18 47 O 3 31 69 o 3 63 19 16 O 1 32 33 1 7, 51 49 1 8 64 lo 25 O o 9 56 o o 19 81 O o *7 _. EXHIBIT C--Section 1 (Continued) J L ; 102 —: _' Mon.--Tues.--Wed. Thurs.--Fri.--Sat lst Week Total . u o 8 'o O m '0 (D '0 m 'U (D 2 (U (D U) (1) Cd (1) t0 0-. H «3 H .c: r-l 2 H 2 Pass :r: 9% Pass Pass :1: 9.. Pass Pass :1: E 65 9 26 o 2 9 56 1 5 18 82 1 7 66 17 18 o 11 21 44 o 23 38 62 o 34 67 9 26 o O 2 63 o O 11 89 O O 68 24 11 o 1 26 39 o 4 5O 50 o 5 69 24 11 o 4 26 39 2 6 5O 5O 2 lo 70 24 11 O 2 26 39 O 3 5o 5o 0 5 71 22 13 o 3 24 41 o 9 46 54 O 12 72 25 lo 0 1 27 38 O 5 52 48 O 6 73 24 11 O O 31 34 o 2 55 45 O 2 74 16 19 o 6 19 46 3 21 35 65 3 27 75 17 18 o 2 13 52 4 14 3o 7o 4 16 76 11 24 l o 9 56 O 1 2O 8o 1 1 77 21 14 2 o 24 41 1 2 45 55 3 2 78 23 12 o 2 24 41 1 5 47 53 1 7 79 22 13 1 O 25 4O 2 4 47 53 3 4 8o 11 14 o 3 4 61 1 3 15 85 1 6 81 19 16 o 2 3O 35 1 8 49 51 1 10 82 2O 35 O 1 26 39 1 5 46 54 1 6 83 18 17 o o 27 38 O 2 45 55 O 2 84 14 21 1 2 18 47 2 19 32 68 3 21 85 13 22 2 2 16 49 1 6 29 71 3 8 86 lo 25 O 1 lo *55‘ O 5 2o 8o 0 6 87 15 2O 2 O 19 46 2 2 34 66 4 2 88 16 19 o o 21 44 o o 37 63 o O 89 15 2O 1 2 25 4O 0 5 4O 6o 1 7 9O 10 25 O o 12 53 O O 22 78 o O 91 9 26 1 1 9 56 o 3 18 82 1 4 92 18 17 1 1 26 39 o 5 44 56 1. 6 93 2o 15 1 1 28 37 1 lo 48 52 2 11 94 19 16 o 8 28 37 1 10 47 53 1 18 95 12 23 1 1 8 57 o 6 2o 8O 1 7 96 23 12 1 5 33 32 1 12 56 44 2 17 97 28 ‘ 7 o O 36 29 O 1 64 36 O 1 98 2o 15 1 1 16 49 1 1 36 «64 2 2 99 27 8 O 2 34 31 1 13 61 39 1 15 100 18 17 O o 12 53 o 2 3O 70 O 2 101 19 16 O o 15 .50 O O -34 66 o o 102 23 12 O 4 33 32 1 lo 56 44 1 14 103 23 12 1 2 34 31 O 7 57 43 1 9 104 23 12 o 1 33 32 o 4 56 44 O 5 103 EXHIBIT C--Section 1 (Continued) Mon.--Tues.--Wed. Thurs.--Fri.--Sat. lst Week Total V TU '0 - U1 '0 (D '0 (D '0 <1) 0 U) a) U) (1) U3 0) U) z a! H e F: m H e E p“ '8 E Not g '5 Not g '8 g 43 Pass 53 g Pass Pass m ‘5 Pass Pass .3 ‘5 H z A Q‘ a. m 105 17 18 l 1 18 47 O 15 35 65 1 16 1o6 22 13 O 1 3O 35 O . 8 52 48 o 9 107 ~24 11 O 1 3O 35 O 5 54 46 O 6 108 24 11 1 4 31 34 O 13 55 45 1 17 109 133 2 O 1 5O 15 1 O 83 17 1 1 llO 23 12 O 6 29 36 1 14 52 48 1 20 111 23 12 O 2 28 37 O 9 51 49 O 11 112 21 14 o 2 26 39 O 5 47 53 O 7 113 21 14 O 3 27 38 O 7 48 52 O 1O 114 23 12 1 2 31 34 1 1 54 46 2 3 115 24 11 1 l 32 33 O 1 56 44 1 » 2 116 23 12 O O 32 33 1 O 55 45 1 O 117 24 11 1 O 34 31 1 O 58 42 2 O 118 27 8 O 1 41 24 O 2 68 32 O. 3 119 20 15 4 2 29 36 2 O 49 51 6 2 120 2O 15 o O 29 36 1 O 49 51 1 o 121 1O 25 2 11 8 57 11 24 18 82 13 35 122 11 24 1 1 4 61 9 1O 15 85 lo 11 123 12 23 O 5 3 62 1 6 15 85 1 11 124 13 22 1 1 3 62 4 5 16 84 5 6 125 13 22 1 8 2 63 1 24 15 85 2 32 126 9 26 3 6 3 62 5 14 11 89 8 20 127 11 24 1 O 8 57 1 1 19 81 2 l 128 11 24 l 1 13 52 3 1 24 76 4 2 129 1O 25 2 4 9 56 2 7 19 81 4 11 129A 10 25 1 1 lo 5 O 1 2O 8O 1 2 129B - - - - - - - - - - - - l3O 9 26 O 4 5 6O 6 6 14 86 6 10 130-1/2 - - - - - - - - - - - - 131 16 18 O O 19 46 1 O . 35 65 1 O 132 10 25 1 11 1 64 O 23 11 89 1 34 133 8 27 O 13 1 64 1 39 9 91 1 52 134 7 28 1 7 O 65 1 17 6 94 2 24 135 8 27 O 6 o 65 1 11 7 93 1 17 136 3 32 O 4 O 65 o 7 3 97 o 11 Eggs 9 ’ 22 31 Milk 9 15 24 Butt. 3 2O 23 Cot.Ch. 12 16 16 ========f 10A EXHIBIT C--Section 1 (Continued) Ma. Ummwnohdm 2 31 1 31 O m T 6.3983 2012110 a 8 6203036 W mmwm 122111 a t S 11 ugd 0 0707A mmwm p. 2 8788989 t. “we penance?“ 1 1 O l 2 O O . _ . 1 1 .1 UOHUCME 00 000 P T , 0074795 . mmmm 1111 S w h 5581860 T mwmm poz 55A6556 . Ummmflohzm 12101.10 d e w. . UOHUCME 1011110 8 m mmmm 6118351 1 . . 9AA72OA n. mmmm poz 2232333 0 M IIIVVII mUQmumxomfio IHI VW 105 EXHIBIT C--Section 2 FLOW STUDY TABULATION, WEEK OF JULY 28, 1958 Mon.--Tues.--Wed. Thurs.--Fr1.--Sat. 2nd Week Total '0 '0 3 '8 'U 0 03 (D (D 'C m 'd a) z 2 r3 2'; .9: 2 .2: 4 E m c .5 Not C 0 Not C c 3 4.) Pass fig 2 Pass Pass I g ‘3 Pass Pass g ,8 +4 0 S I: m m 5 z 0-: 0.. 1 3 35 3 3 3 65 3 3 3 133 . 3 3 2 3 35 1 6 3 65 3 18 3 133 1 24 3 3 35 3 1 3 65 3 4 3 133 3 5 4 3 35 3 4 3 65 3 8‘ 3 133 3 12 4-1/2 - - - - - - - -. - — - - 5 3 35 1 7 16 49 3 11 17 83 4 18 6-Cel. 6 29 3 4 16 49 3 9 22° 78 3 13 Bad. 6 29 3 3 17 48 1 8 23 77 1 11 Cuc. 6 29 3 3 18 47 3 3 24 76 3 6 Pep. 6 29 3 3 17 48 1 1 23 77 1 1 Car. 6 29 3 2 16 49 3 4 22 78 3 6 Tom. 6 29 1 4 18 47 0 3 24 76 l 7 Corn. 6 29 2 1 18 47 1 4 24 76 3 5 Let. 6 29 1 13 16 49 2 18 22 78 3 28 3.3. 6 29 o 2 16 49 3 1 22 78 3 3 Misc. 6 29 1 4 16 49 2 4 22 78 3 8 Cab. 6 29 3 5 16 49 3 3 22 78 3 8 7 12 23 3 2 23 42 3 14 35 65 3 16 8 18 17 3 3 34 31 3 3 52 48 3 3 9 7 28 1 5 14 51 1 8 21 79 2 13 13 11 24 2 6 11 54 1 7 22 78 3 13 11 7 28 3 3 17 48 3 8 24 76 3 11 12 117 18 3 4 34 31 3 5 51 49 3 1 9 13 g 1 34 1 1 2 63 1 5 3 97 2 6 14 i 1 34 1 7 2 63 3 17 3 17 2 24 15 s 1 34 3 3 2 63 3 1 3 97 3 4 16 2 33 2 5 2 63 3 7 4 96 2 12 17 23 12 1 4 36 29 3 13 59 41 4 17 18 21 14 3 2 32 33 3 8 53 47 3 13 19 11 24 3 3 11 54 3 17 22 78 3 23 23 9 26 o 4 12 53 3 12 21 79 3 16 21 1 34 3 o 3 65 3 3 1 1 99 o 3 22 2 33 3 1 3 65 3 3 2 98 3 1 23 4 31 3 3 7 58 3 9 11 89 o 9 24 3 32 o 1 11 54 o 3 14 86 o 4 25 3 32 3 6 7 58 o 17 13 93 9 23 25-1/2 17 18 o o - — - - 17 18 o o EXHIBIT C--Section 2 (Continued) —_; I 1 —:—_ Mon.--Tues.--Wed. Thurs.--Fri.--Sat. 106 —1— ——_-_ 2nd Week Total 6 m '8 '8 3 Z W '0 a) *0 co '0 a) ‘3 a) :3 a) as a) (U E 3.. 78 '8 Not :8 '8 Not 8 '8 3 4C3) Pass 8 8 Pass Pass 8 8 Pass Pass fé 8 H 2 :1: a. :I: 0-. :1: CL. 26 24 11 o 5 23 45 o 14 44 56 o 19 27 26 9 o 4 23 42 3 13 49 51 o 17 28 27 8 o 3 27 38 o 13 54 46 o 16 -29 26 9 o 2 28 37 o 6 54 46 o 8 33 26 9 3 2 29 36 1 5 55 45 1 7' 31 26 9 o 1 33 35 1 5 56 44 1 6 32 27 8 o 2 33 32 o 18 63 43 3 2o 33 31 4 o 1 53 13_15 o 6 81 19 o 7 34 26 9 1 3 29 36 2 1 55 45 3 1 35 33 5 o 2 53 . 12 3 3 83 17 3 2 36 25 13 o 1 27 38 3 3 52 48 o 1 37 24 11 o o 27 38 o 1 51 49 o 1 38 26 9 4 1 27 38 1 4 53 47 5 5 39 12 23 1 1 6 59 o 1 18 82 1 2 4o 13 22 o 3 5 63 3 4 18 82 3 4 41 26 9 o 1 21 44 1 5 47 53 1 6 42 26 9 o 1 24 41 o 7 53 5o 3 8 43 25 13 o 4 23 42 3 12 48 52 o 16 44 3 32 3 o 4 61 1 3 7 93 4 o 45 2o 15 o 2 25 43 o 3 45 55 o 5 46 2o 15 3 1 23 42 o 5 43¢ 57 o 6 47 23 15 o 2 23 42 o 7 43 57 o 9 48 23 15 o 1 22 43 o 9 42 58 o 9 49 19 16 o 3 27 38 1 13 46 54 1 16 5o 17 18 3 o 22 43 o 1 39 61 o 1 51 14 21 o o 21 44 o 2 35 65 3 2 52 18 17 o 3 3o 35 o 6 48 52 o 9 53 18 17 3 o 31 34 o o 49 51 o 3 54 13 25 1 o 5 63 3 2 15 85 1 2 55 6 29 o 3 4 61 o o 23 81 3 o 56 21 14 o 3 26 39 o 10 47 53 o 13 57 21 14 1 4 26 39 1 13 47 53 2 14 58 3 32 1 13 9 56 3 7 12 88 4 17 59 18 17 3 2 28 37 1 3 46 54 1 5 63 15 23 o 5 28 37 3 15 43 57 o 23 61 2o 15 o 7 34 31 3 9 54 46 3 116 62 13 25 3 2 17 48 o 6 27 73 0 8 63 2o 15 o 2 35 30 2 6 55 45 2 8 64 13 25 3 o 13 55 3 o 23 83 o o EXHIBIT C--Section 2 (Continued) 107 Mon.--Tues.--Wed. Thurs.--Fri.--Sat. 2nd Week Total m 3 '8 r6 . m '0 a) 'O U) 'U (D 0 Cd (1) U) 0) C6 (1) U) 2 (L H 6 r4 3 H m a p E ":3 N017 '8 3 NOt '2 1C) 3 g Pass a? $5 Pass Pass :33 9:: Pass Pass 5% g H m m 65 8 27 o o 11 54 o 2 19 81 o 2 66 15 23 2 11 w 25 43 1 22 43 63 3 33 67 14 31 3 3 7 58 o 1 11 89 o 1 68 17 18 o 2 31 34 1 3 48 52 1 5 69 17 18 3 3 31 34 o 13 48 52 o 13 7o 16 19 o 4 28 37 1 8 44 56 1 12 71 16 19 o 2 27 38 3 5 43 57 3 7 72 21 14 o 4 25 43 o 3 46 54 3 7 73 23 12 o 1 33 32 3 2 56 44 3 3 74 9 26 o 7 2o 45 2 14 29 71 2 21 75 11 24 1 6 11 54 3 12 22 78 1 18 76 9 26 3 3 8 57 3 3 17 83 o o 77 18 17 o 1 26 39 o 1 44 56 o 2 78 17 18 o 3 28 37 2 9 45 55 2 12 79 18 17 3 1 31 .434. o 6 49 1 o 7 83 5 33 o 1 11 54 3 5 16 4 o 6 81 17 18 1 3 29 36 o 8 46 54 1 11 82 18 17 o 1 33 35 o 3 48 52 3 4 83 17 18 3 1 33 5 1 3 47 53 1 4 84 14 21 1 6 23 2 1 9 37 63 2 15 85 16 19 1 1 25 43 3 4 41 59 1 5 86 7 28 o 5 14 51 o 6 21 79 3' 11 87 19 16 o o 33 32 1 o 52 48 1 o 88 18 17 3 o 33 32 o 1 51 49 o 1 89 23 12 3 2 32 33 o 5 55 45 o 7 9o 13 25 o 3 16 49 o o 26 74 o o 91 9 26 o 1 17 48 o 8 26 :74 o 9 92 18 17 o 4 32 33 o 4 5o 50 o 8 93 18 17 1 1 31 34 o 10 49 51 1 11 94 18 17 o 7 3o 35. o 13 ,48 52 o 17 95 8 27 o o 18 ~ 47 o 7 26 74 o 7 96 15 23 o 9 41 24 3 1o 56 44 o -19 97 23 12 3 1 5o 15 o o 73 27 o 1 98 6 29 3 3 28 37 3 1 34 66 3 1 99 21 14 o 4 48 17 o 5 69 31 3 9 130 6 29 o 3 24 41 3 2 3o 73 o 2 131 6 29 1 o 24 41 o 2 3o 73 1 2 132 17 18 o 1 43 22 o 1 6o 43 o 2 133 17 18 o 5 45 23 o 7 62 38 o 12 134 18 17 1 3 43 22 o 4 61 39 1 7 ~——-— 108 EXHIBIT C--Section 2 (Continued) Mon.--Tues.--Wed. Thurs.--Fr1.--Sat. 2nd Week Total '0 'U , o a) '8 <3 0 W (D W '0 CD '0 m z 2 3 2 2 2 3 2 fl: 5: O 'U .C! '0 0 ca) 43 £1 :3. Not 5: 3 Not - g :3 4:. 0 Pass ‘14 Fass Pass g3 :31 Pass Pass :3: 04 135 11 14 1 o 33 35 2 2 41 59 3 “‘2 136 15 23 o 4 36 29 3 6 51 49 3 13 137 16 19 3 o 34 31 o 1 5o 53 o 1 108 16 19 o 6 26 29 3‘ 15 52 48 o 21 139 21 14 1 o 41 24 o 3 62 38 1 o 113 12 23 1 7 34 31 o 6 46 54 1 13 111 13 22 3 1 34 31 1 8 47 53 1 9 112 8 27 3 1 2o 35 1 4 38 62 1 5 113 131 22 1 2 23 35 o 4 43 57 1 6 114 12 22 1 1 36 29 3 1 49 51 1 2 115 .14 21 o o 37 28 o 3 51 49 o 3 116 14 21 o 3 38 27 o o 52 48 o o 117 14 21 o 2 39 26 1 1 53 47 1 3 118 26 9 3 o 48 17 3 o 74 26 o o 119 14 21 5 o 35 3o 3 1 49 51 5 1 123 14 21 2 3 35 33 1 o 49 51 3 o 121 59 26 1 13 15 53 4 19 24 76 5 29 122 6 29 2 5 12 54 2 5 17 83 4 13 123 8 27 1 2 27 38 2 12 35 65 3 14 124 4 31 o 3 12 53 1 2 16 84 1 5 125 4 31 3 7 11 54 3 15 15 85 3 22 126 4 31 2 5 12 53 3 7 16 84 5 12 127 3 32 1 1 21 44 1 o . 14 76 2 1 128 4 31 o o 22 43 1 1 16 74 1 1 129 3 32 o o 21 44 1 3 14 76 1 3 129A - - - - - - - - - - J- - 129B 7 28 3 3 14 51 1 4 21 79 1 4 133 3 32 1 3 13 55 1 3 13 87 2 _ 6 133-1/2 7 28 o o 16 49 1 ‘ 1 23 77 1 1 131 15 2o 0 o 23 45 o o 35 65 o o 132 3 32 3 14 13 55 1 18 ‘13 87 1 32 133 2 33 o 14 8 57 -o 31 13 93 3 45 134 3 32 2 13 9 56 o 15 12 88 2 25 135 3 32 o 6 9 56 o 15 12 88 0 21 136 3 32 o 3 9 56 3 4 12 88 o 4 Eggs 8 11 1 19 Milk 8 13 21 Butt. 4 9 l3 Cot.Ch. 5 11 16 109 EXHIBIT C--Section 2 (Continued) .m ommmnopzm t % 0000000 omaocwm 2 a e PDnVOA9:967o W mgfi 21211 .d n 9. 510n01:5:253 mmmm 902 7988899 3 -. 2 cm oommnogm 3352 1 1 . .12 UQHUCMEH O O O O O O O r w. . “2713:3n2513 . mmmm 1 111 m h 3:8n2923 2 T mmmm poz 5:5:2615 ,6 ommmcohdm 3012100 .3 m u Umaocmm 0000000 8 m mmmm B176303 . A24. 2 9. . 930, :2 m mmwm 902 2322333 0 M mdeom IIIVVII U uxfls III VW I EXHIBIT C-—Section 3 FLOW STUDY TABULATION, GRAND TOTAL FOR TWO WEEK STUDY PERIOD, AND PERCENTAGES BY COMMODITY OR COMMODITY GROUP 110 Grand Total —* % of Grand Total Item Not % of % of No. Pass Pass Handled Purchased Purchases Passes 1 3 233 o o 3.3 133.3 2 3 233 1 47 23.5 133.3 3 3 233 3 12 6.3 133 o 4 o 233 3 24 12.3 133.3 4-1/2 16 84 2 8 8.3 84.3 5 24 176 5 32 16.3 88.3 6-Cel. 37 163 3 19 9f5 82.3 Rad. 36 164 3 43 21.5 82.3 Cuc. 38 162 o 23 13.3 81.3 Pep. 37 163 1 16 8.3 82.3 Car. 36 164 3 12 6.3 82.3 Tom. 38 162 1 25 12.5 81.3 Corn 38 162 4 19 9.5 81.3 Let. 35 165 3 57 28.5 82.5 G.B. 35 165 o 5 2.5 82.5 Misc. 36 164 7 19 9.5 82.0 Cab. 36 164 3 18 9.3 82.3 7 69 131 3 32 16.3 65.5 8 79 133 1 o 3.3 51.5 9 34 166 8 19 9.5 83.3 13 42 158 6 27 13.5 79.3 11 42 158 3 27 13.5 79.3 12 91 139 o 16 8.3 54.5 13 4 196 6 13 6.5 98.3 14 4 196 8 46 23.3 98.3 15 5 195 5 9 .4.5 133.3 16 8 192 4 25 12.5 130.3 17 123 77 4 33 15.3 38.5 18 113 87 3 22 11.3 43.5 19 53 153 2 32 16.3 75.3 23 44 156 1 35 17.5 78.3 21 2 198 o 1 4.5 99.3 22 2 198 1 5 2.5 99.3 23 18 182 3 15 7.5. 91.0 24 21 179 o 7 3.5 89.5 25 17 183 1 45 22.5 91.5 25-1/2 24 111 3 13 9.6 82.5 111 EXHIBIT c--Sect16nj3(36nt1nued) Grand Total % of Grand Total Item Not % of % of No. Pass Pass Handled Purchased Purchases Passes 26 87 113 0 36 18.0 56.5 27 98 102 l 29 14.5 51.0 28 99 101 0 31 15.5 50.5 29 103 97 0 16 8.0 48.5 30 104 96 2 "7 15 7.5 48.0 31 104 96 1 13 6.5 48.0 32 112 88 1 41 20.5 44.0 33 160 40 4 12 6.0 20.0 34 107 93 7 2 1.0 46.5 35 168 32 0 2 1.0 16.0 36 98 102 3 3 1.5 51.0 37 95 105 O 3 1.5 52.5 38 99 101 17 13 6.5 50.5 39 47 153 4 2 1.0 76.5 40 48 152 1 6 3.0 76.0 41 96 104 2 12 6.0 52.0 42 102 98 1 15 7.5_ 49.0 43 100 100 0 26 13.0 50.0 44 14 186 7 0 0.0 93.0 45 94 106 2 10 5.0 53.0 46 95 105 0 9 4.5 52.5 47 95 105 0 14 7.0 52.5 48 94 106 0 23 11.5 53.0 49 94 106 5 28 14.0 53.0 50 78 122 3 1 .5 61.0 51 69 131 0 5 2.5 65.5 52 97 103 l 15 7.5 51.5 53 101 99 1 1 .5 49.5 54 40 160 2 2 1.0 80.0 55 43 157 1 0 0.0 78.5 56 100 100 1 13 6.5 50.0 57 96 104 5 27 13.5 52.0 58 21 179 9 27 13.5 89.5, 59 85 115 2 11 5.5 57.5 60 86 114 l 35 17.5 57.0 61 104 96 4 32 16.0 48.0 62 58 142 0 11 5.5 71.0 63 106 94 3 16 8.0 47.0 64 39 161 0 0 0.0 80.5 65 37 163 1 .9 4.5 81.5 66 78 122 3 67 33.5 61.0 67 22 178 0 1 .5 89.0 EXHIBIT C--Section 3 (Continued) Grand Total % of Grand Total Item Not % of % of No. Pass Pass Handled Purchased Purchases Passes 68 98 102 1 10 5.0 51.0 69 98 102 2 23 11.5 51.0 70 94 106 1 17 8.5 53.0 71 89 111 3 I- 19 9.5 55.5 72 98 102 0 “” 13 6.5 51.0 73 111 89 0 5 2.5 44.5 74 64 136 5 48 24.0 68.0 75 52 148 5 34 17.0 74.0 76 37 163 1 1 .5 81.5 77 89 111 3 4 2.0 55.5 78 92 108 3 19 9.5 54.0 79 96 104 3 11 5.5 52.0 80 31 169 l 12 6.0 84.5 81 95 105 2 21 10.5 52.5 82 94 106 1 10 5.0 53.0 83 92 108 1 6 3.0 54.0 84 69 131 5 36 18.6‘ 65.5 85 70 130 4 13 6.5 65.0 86 41 159 0 17 8.5 79.5 87 86 114 5 2 1.0 57.0 88 88 112 0 1 .5 56.0 89 95 105 1 14 7.0 52.5 90 48 152 0 0 0.0 76.0 91 44 156 1 13 6.5 78.0 92 94 106 1 14 7.0 53.0 93 97 103 3 22 11.0 51.5 94 95 105 l 35 17.5 52.5 95 96 154 l 14 7.0 77.0 96 112 88 2 36 18.0 44.0 97 137 63 0 2 1.0 31.5 98 70 130 2 3 1.5 65.5 99 130 70 1 24 12.0 35.0 100 60 140 0 4 2.0 70.0 101 64 136 1 2 1.0 68.0 102 116 84 1 16 8.0 42.0 103 119 81 1 21 10.5 40.5 104 117 83 1 12 6.0 41.5 105 76 124 4 18 9.0 63.0 106 103 97 0 19 9.5 48.5 107 104 96 0 7‘ 3.5 48.0 108 107 93 1 38 19.0 46.5 109 145 55 2 1 .5 27.5 11 EXHIBIT C--Section 3 (Continued) Grand Total % of Grand Total Item Not % of % of No. Pass Pass Handled Purchased Purchased Passes 110 98 102 2 33 16.5 51.0 111 98 102 1 20 10.0 51.0 112 85 115 1 12 6.0 57.5 113 91 109 1 16 8.0 54.5 114 103 97 3 5 2.5 47.5 115 107 93 1 2 1.0 46.5 116 107 93 1 0 0.0 46.5 117 111 89 3 3 1.5 44.5 118 142 58 0 3 1.5 29.0 119 98 102 11 3 1.5 51.0 120 98 102 3 0 0.0 51.0 121 42 158 18 64 32.0 79.0 122 32 168 14 21 10.5 84.0 123 50 150 4 25 12.5 75.0 124 32 168 6 11 5.5 84.0 125 30 170 5 54 27.0 85.0 126 27 173 13 32 16.0 86.5 127 43 157 4 2 1.0 78.5 128 50 150 5 3 1.5 75.0 129 43 157 5 14 7.0 78.5 129A 20 80 1 2 2.0 80.0 129B 21 79 1. 4 4.0 79.0 130 27 173 8 16 8.0 86.5 130-1/2 23 77 1 1 1.0 77.0 131 70 130 1 0 0.0 65.0 132 24 176 2 66 33.0 88.0 133 19 181 1 97 48.5 90.5 134 18 182 4 49 24.5 91.0 135 19 181 1 38 19.0 90.5 136 15 185 0 15 7.5 92.5 1* 159 41 2 7 3.5 20.5 11 168 32 0 6 3.0 16.0 III 160 40 1 5 2.5 20.0 IV 168 32 2 8 4.0 16.0 v 175 25 1 6 3.0 12.5 VI 182 18 1 2 1.0 9.0 VII 188 12 0 1 .5 6.0 *Roman numerals denotes passes, handles and purchases at checkstands. 114 11 143, IIfi: m.mm eoH mm mm meserm Hmetmm m.m: mm m: m: 330 Etude m.mm moH om em 0H 4: om NH H mmeH>Bmm oz m.mH mm mH 6H m 6H m m rzomceHHoemHz o.m 4 m m 2 H H H o _6dHco B 6H6: m.mH Hm :H m m EH mH m eHHBo e mHmemm m.sH mm mH 0H m mm mH m eHmsmm 3 6H6: o.H m m H H o o o +mHmz m.e mH m m H w m m +mHmemm 6.6m ms mm mm :H mm :m mH mHmeem o.w 6H m a 3 w 4 3 6H6: mpmaaocm mm.mm mm.:m mH.wm m:.mH mH.mm mm.mm Hm.mm mmcmH . -xemco cH 62He He 3 mmuscHew mo.m mo.m mm.m mm.m mo.m s:.m pm.: mmcmeomno 2H msHe mapscHe mm.Hm1 mm.om wm.mm ms.wH mm.Hm oH.:m sm.eH macaw eH meHe . , . qu we om mm op m: mm pmHH 62 mm mm mH s cm mm s pmHH o.m 6H 3 m H w m H meHHHo m.mH em mH m 3 :H HH m Hameopc o.mm mm mm mH oH mm mm mH meseotm m.o mH : m m m m H 3662 mmOH>chm m©.m sm.m os.m ::.w om.m me.HH ms.» mmmmnepsE .w>< m:.mmm.HH w:.eHm% m:.omma mm.mmmw Ho.moo.Hw mo.mmea mm.mmma mmmmseHsE Hmpoe mmsm wmwmw x303 62m .m.m.ne .3.B.z x303 umH .m.m.£e .3.B.2 mEopH H3669 Hmpoe ll : EOHpommllo EHmmem 115 EXHIBIT D STORE #G-224 TABLE OF RANDOM NUMBERS FOR SAMPLING OF KROGER Number of Customers Followed Second Week 18 Fri. Sat. 30 248 29.36 26 7.54 231.544 115fi433171A0012427A9n03193113823040113:5744H231722 17 e 8 30 74.7.06 3.4.4 99 78.78 Wed. Ths. 11 26M. 2 1.2 088148 1 8 Tues wiQibnulébnul 16 92.7 5.1.08 328.2 2 578.6 . First Week 18 T 96 25.4.7.4“ 39565711.“ 1 5 Fri. Sat. Mon. 30 80.4 17.4 3530.0 2693.004 08.2 386 97.4 557. 17 151.. 32.5671592996 .I. 2.72 J...“ -_4L .. - .Wed. Ths. 11 rbniéu222fi7n¥4nznloj 76 0 08.956 16__ Mon. Tues. 8 m S: 90h... 24.0/7.5.4 7732919 onHeH on pHc: HpooHom whommn mmma on UmonHw mpHcs wcHagozm 60 902832 . . _ ,. ... .l a 6. 0.. l . Q .73“ . I . I o D . . .. .4 . S... \x... :1 . A “Y . u. L a L 1. ..... .v 9.. . t .1 v ‘ d . .. . . r .. 1 . L. u, a . rt. .... . .... .fLr . .. ; v, . O. . n L .. . .1 . 1% 1.. A...” v - v .1. , .0“ .1 . .p m11111111111”[11111131111111mum