OfficeMax Intros Promotional TV

Itasca, IL -- After testing an in-store video network last summer, marketers at OfficeMax Inc. have begun rolling out the system as part of a new store design. The network features two 42-inch LCD screens embedded in an overhead panel, with screens capable of working together or providing different messages. The retailer is working with Alchemy, a newly launched digital-content solutions division of St. Joseph Content in Toronto, and Adflow Networks in Burlington, Ontario, which provides the hardware, deployment and support. The program is rolling out to all new stores, which feature the company's store prototype called "Alchemy." About 12 stores had been completed by the start of the new year. The system has been installed in a variety of cities, including Dallas, Denver and Columbus, Ohio. "We recognized that we have an opportunity to inform and educate our customer about the many, many products and services available in our Print & Document Services department," explains Jim Dismukes, vice president of visual merchandising. "It is difficult to effectively accomplish this task using static P-O-P." The screens project brand information as well as learning presentations aimed at the small-business person, who is the key user of the store's document services, says Dismukes.The total broadcast time is divided between OfficeMax brand messages (30%) and learning materials (20%), with the other 50% split between price and promotional spots and third-party advertising from selected partners such as HP and Motorola, says Lauren Moir, vice president and divisional manager for Alchemy. OfficeMax is not selling time on the system to vendors, but is using the time to help a few selected partners as part of an overall merchandising approach. "It's not being used as a profit center, but there is a return on investment," she explains. "But it's more of an ROO -- a Return on Objective. We've learned that customers will spend time watching what you have to say if you use the time for a 'pull' message rather than a 'push' message."Selling ads on the network may happen eventually, Dismukes explains. "We are very interested in working with our vendor partners to add content to our programming," he says. "We believe this to be a win/win scenario. However, with our small population of active sites today, it may be a bit premature to have conversations regarding financial support. As we grow our network, I feel certain that those conversations will take place."A test this summer showed the system could be effective, Dismukes says. "We have seen a lot of interest from our customers. To help understand the effectiveness of this program, as well as the whole store design, we will be conducting in-store consumer research in the very near future that should provide some real insight to this program." There are no plans to expand the system into existing stores with the former store layout, he adds.Embedding the screens in the panel was critical, Moir notes. "We thought it was vital to avoid having two big, black boxes hanging from the ceiling, as many systems have. In this program, the screens are worked into the infrastructure and are wrapped in the brand to create a visual billboard." The test taught the marketers key points about improving the system, Moir adds. Sound programs, particularly if they are on a loop, can create a disturbance, especially for employees. OfficeMax will be incorporating hypersonic sound technology that focuses the sound content into a small area. Content and length of segments is also under inspection.

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