It's not just the "nag factor" that makes it worthwhile for you to appeal to the little ones

Adult shoppers at Rome's Your Independent Grocer in Sault Ste. Marie, Ont., might be a little startled when a troop of kids swathed in medieval costumes parade up to the store's second floor. These same grown-ups might be a little queasy at what goes on once the giggling grade 4 students assemble in the area called Upstairs At Rome's. Here the pint-sized lords and ladies who are learning about life in the Middle Ages will tuck into a specially prepared feast just as they did in olden times--without the benefit of eating utensils. Sure, they'll make a major mess, but more importantly, these kids will be furthering their education and they'll have FUN.

Getting kids to have fun at the grocery store is one aspect of a unique program at Rome's YIG. When Steve Rome opened his new store a couple of years ago, he decided to turn the second floor of the building into a community centre with activities for all ages. The space can accommodate 60 people and offers everything from art shows to theatre, cooking classes and educational programs with the school board, says Donna Woldanski, marketing co-ordinator for store marketing and Upstairs At Rome's. The majority of the programs are targeted at young people, from preschool to university age.

"A lot of what we do comes from our partnership with the Algoma District School Board," Woldanski says. Teachers bring their students to Upstairs At Rome's as part of social science lessons. As well as the Medieval Feast, Woldanski has hosted an Egyptian Feast. She also helped kids learn about how fruits and vegetables from Mexico get to the produce department at Rome's. Another program, called "Looking Great, Feeling Great," offers interactive cooking labs for students in grades 7 and 8 and helps to teach kids about healthy eating practices and body image. Rome's has a chef on staff who helps Woldanski run the programs with assistance from volunteers. Various corporate sponsors help finance the educational programs.

Why would an independent grocery store set up such an elaborate program for kids? "We're filling a gap in the community," says Woldanski. "But it's also a a great marketing tool. We put our activities in newsletters that go out to customers, and there isn't a household in the city that doesn't know the Rome's name. I often see families on the street and the kids will say, 'That's the lady who showed us how to cook at Rome's.' And parents think it's great. Many of them stay to do their shopping while the kids are upstairs. It's not a tangible thing, but I know they're spending money in the store."

Not many Canadian grocery retailers have gone this far to connect with kids and their parents. Some have kids' clubs, give away free cookies and sponsor sports teams. But, for many years, grocers have ignored the youth market, says Carol Green, president, Children's Creative Marketing Inc., in Toronto. These days, however, major food manufacturers are making a serious effort to really connect with kids--and with good reason. The four million children ages five to 14 years in Canada have incredible spending power. For one thing, they have as much as $400 million annually for their personal spending. Even more important is the huge influence they have on what their parents buy--not just food, but everything from vacations to cars. The "nag factor," where kids pester their parents to buy something, is critical to marketers. But it only works if the product or service is something that kids really want. Anyone who can figure that out is a winner with kids.

Take Heinz's phenomenal success with its EZSquirt Green Ketchup. A year ago, the company held focus groups with 11,000 kids and asked them what they did or did not like about ketchup. First, the kids complained that the ketchup bottle wasn't convenient because it required a two-fisted approach, says Michael Mullen, spokesperson for Heinz North America in Pittsburgh, Penn. "They also said they wanted something that would allow them to colour or play with their food. They wanted a different colour and when asked which one, the majority said green."

So the company designed an ergonomic bottle with a special nozzle to allow the kids to squirt out a finer line for drawing. And they launched a green-coloured ketchup. "Initially, moms in our focus groups said that, even though their kids liked the product, they wouldn't buy it," says Mullen. "But now moms are buying it because of the nag factor." Although many people thought that purchases of green ketchup would eat into the sales of the traditional red product, it actually added incremental sales, Mullen says.

This fall, with the launch of Funky Purple EZSquirt, kids will have three different colours for drawing on their food at the dinner table. "Parents now tell us that they like the product because it gets kids to eat certain foods they wouldn't have eaten before."

Anyone marketing to children has to understand the cognitive development of kids, says Green. "Six- to eight-year-olds love gross things and magic. And for 'tweens between nine and 12, the whole developmental period is about having your own opinions and asserting yourself as an individual. Marketers must realize that kids are very smart and can see through a product offer or service that isn't legitimate, is sleazy or just a dressed-up form of advertising. And, kids only give you one chance before they move on to something else."

The hottest trends in kids' products address these developmental stages. Younger kids are really into funky-coloured food, says Pascale LeBlanc, founder and president of Youthopia, a youth marketing firm in Toronto. "They like blue applesauce, green and purple ketchup, blue butterscotch pudding, yogurt with colour crystals and corn chips that change colour in your mouth, because they are edgy and playful. Marketers are listening to kids and coming out with products they want."

Even though parents are subject to the nag factor, they remain the ultimate authority on purchases and can't be left out of the equation. When Cott Juices introduced Chubby soft drinks to the Canadian market, the company held focus groups to ask parents if they would buy the product for kids and to ask kids if they'd get their parents to buy it. "We got a great response from both kids and parents," says Mark Cumberland, vice-president and general manager for Cott Juices in Toronto. Chubby's rotund little bottle is designed to fit into a kid's hand and the pricing (usually three for $1 or less) is attractive to parents.

Even cereal manufacturers with a long history of marketing products to kids are trying new ways to reach out to youth with promotions such as free on-pack CDs and DVDs. Last year, Kellogg Canada went a step further by launching its "Jacks Pack" program, which gave kids the chance to join the company's marketing team and provide input into the management of Apple Jacks cereal. "We wanted to find out what kids want and what they aren't getting," says Mark Childs, vice-president of marketing, Kellogg's Canada in Toronto. "One thing we've heard loud and clear from the 21 Apple Jacks' kids is that they want to be communicated with and they are loyal to anyone who takes them seriously."

What does all this mean at the retail level? Grocers already know the basic techniques of merchandising products for kids at eye and hand level to attract attention, but they could be doing a lot more to connect with the next generation of consumers. "Some retailers provide marketing support for kids' products by using more interactive in-store displays with Playstations, videos playing commercials and floor graphics," says Childs. "They need to find new and in- novative ways to reach kids and build loyalty. How successful they are really comes down to their creativity."

Creativity is a concept that's well understood at Upstairs At Rome's. "As our program has blossomed, it has been embraced by the community," says Woldanski. "We're all looking forward to the coming year--it's going to be super exciting for kids."

Sonya Felix is a regular contributor to Canadian Grocer.