Advertising on deli labels a hit for Il Mercato

Posted by Nicole Eckersley on 7th June 2011

Packaging and labelling company ProScales has announced the launch of its new deli labelling system, AdPro, which prints shopper-marketing directed ads on deli labels. The company says its new technology has shown significant improvement in customer purchasing patterns, after being trialled at Adelaide gourmet retailer Il Mercato.

AdPro, a software package, allows a variety of existing hardware to print extra information on deli, bakery and pre-pack labels, such as promotional offers, competitions or recipes.

The company said the new software allowed retailers to turn what has traditionally been an expense into a revenue-generating tool, with little change to existing work processes.

The software was reviewed over an 11 week period at Il Mercato by Complete the Picture Consulting, who reported a 100% increase in per-customer average spend, 125% increase in items per basket, and a 177% increase in sales of promotional items (based on pre-trial figures).

As well as increased sales across the board, the company reported that the system showed an improvement in moving customer flow into what were traditionally ‘cold spots’ within the store (by up to 285%) and demonstrated that it could assist in fresh food management by increasing fresh food item sales (by up to 538%).

“We were impressed by the additional sales gained during the trial and have observed a change in our customer spending habits,” says John Caporaso, Director, Il Mercato. “We will definitely continue to use the technology as a key part of our marketing,” he says.

ProScales said they believed AdPro will take off as coupon usage increases and retailers look for ways to capitalise on impulse buying without adding additional work processes to their business.

“The advertisements can be either pre-programmed or can be changed easily on the fly, allowing retailers to respond quickly, as well as targeting changing demographics at any time of day,” says Managing Director of ProScales, Stephen Heaney.

ProScalesplans to roll out the technology across Australia and New Zealand in the coming year.