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Catalina Marketing Introduces New Marketing Tools to Combat Channel Erosion

    ST. PETERSBURG, Fla., Jan. 23 /PRNewswire-FirstCall/ --
Catalina Marketing Corporation (NYSE: POS) announced today the introduction of
new marketing tools designed to aid supermarket retailers who continue to lose
market share in "traditional" grocery categories to non-traditional retailers.
This erosion has resulted in the loss of hundreds of millions of dollars in
key categories such as paper products, pet items, cleaning supplies and
personal care items.  With the implementation of Catalina Marketing's
proprietary channel erosion tools, those lost dollars can be brought back to
supermarket retailers.
    Catalina Marketing's new marketing strategy uses custom analysis to help
supermarket retailers determine the best methods of regaining category share
from their customers.  By combining this analysis with its targeted marketing
expertise, Catalina Marketing can consult with supermarket retailers to create
individualized communication efforts designed to recapture dollars from
eroding categories.
    "Catalina Marketing has always prided itself on being a cutting-edge
marketing resource for industry retailers," said Cynthia McCloud, Senior Vice
President of Retail for Catalina Marketing.  "With the threat of alternate
grocery channels, we saw the need to develop an attack plan for our
supermarket retail clients.  We believe we have created hard-hitting tools
that provide retailers with turnkey solutions to address their customers'
needs and regain lost supermarket sales."
    Rather than compete in price-war tactics, the new channel erosion tools
will allow supermarket retailers to use one-to-one strategies to tailor
specific offers in categories that are relevant to an individual consumer.
Catalina Marketing will show how customer purchase data can be leveraged to
build loyalty, increase shopper spending and regain lost category sales.
    "We have built a strategy based on the strengths supermarket retailers
bring to the business -- convenient locations, fresh perishables, high quality
private label and one-to-one targeting capabilities," said Sue Klug, President
of CMS - Retail & Direct Mail.  "We believe this is a revolutionary way for
our supermarket retail clients to increase share in those categories where
sales have been lost to other trade channels.  We look forward to helping our
clients increase their share and overall store profitability."
    Catalina Marketing will be demonstrating its new channel erosion tools at
the Food Marketing Institute's MARKETECHNICS(R) show in San Diego, February 3-
5, 2002.
    Based in St. Petersburg, Fla., Catalina Marketing Corporation
(http://www.catalinamarketing.com) provides a wide range of strategic targeted
marketing solutions for consumer goods companies and retailers. The targeted
marketing services of the company are provided by interrelated operating
groups that strive to influence purchase behavior of consumers wherever and
whenever they make purchase decisions.  Through these operating groups,
Catalina Marketing Corporation is able to reach consumers internationally and
domestically -- in-store, using incentives, loyalty programs, sampling and
advertising messages; at-home, through direct mailings; and online. Personally
identifiable data that may be collected from the company's targeted marketing
programs, as well as its research programs, will not be sold or given to any
outside party without the express permission of the consumer.
    Certain statements in the preceding paragraphs are forward-looking, and
actual results may differ materially.  Statements not based on historic facts
involve risks and uncertainties, including, but not limited to, the changing
market for promotional activities, especially as it relates to policies and
programs of packaged goods manufacturers for the issuance of certain product
coupons, the effect of economic and competitive conditions and seasonal
variations, actual promotional activities and programs with the company's
customers, the pace of installation of the company's store network, the
success of new services and businesses and the pace of their implementation,
and the company's ability to maintain favorable client relationships.



SOURCE Catalina Marketing Corporation




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    CONTACT:
    Carolyn Mahoney Lopez, Director of Corporate
    Communications of Catalina Marketing Corporation,
    +1-714-254-6783, or carolyn.lopez@catalinamarketing.com