Showing posts with label Acosta. Show all posts
Showing posts with label Acosta. Show all posts

Friday, October 11, 2013

CPG Survey Report: Children influence 80% of all grocery purchases


We’ve all seen children asking their parents to buy them something in a grocery store – some politely and others more persistently – or rejecting healthy options mom may like with a resounding “no.” But how much effect does their behavior really have on what goes into the cart? In the portion-pack beverage category, the answer is “quite a lot” according to research conducted by Tetra Pak.

Whether it’s a grade-schooler tugging on mom’s skirt or a toddler stretching and pointing from their perch in the grocery cart, kids tend to get what they want when it comes to beverages they’ll be expected to drink, says the research. And the numbers are impressive: interviews with nearly 500 shoppers show that almost 80 percent of all purchases are influenced by kid requests, and a full 55 percent of planned purchases are specifically made by such requests. And when children are along on the shopping trip – as they are about 60 percent of the time – they are more likely to not only express an opinion, but get their way. Only 20 percent of shoppers say their buying decisions have nothing to do with what their children want.

And kids today may be even more opinionated and persistent than their predecessors, market researchers say. Today’s American toddlers-to-teens are known as Gen Z, a demographic that includes 61.2 million youth 14-and-under, according to U.S. Census figures. While kids at the older end of this spectrum often buy their own beverages, parents make the choice for those at the other end. And as a whole, this is a “purposefully rebellious” generation of digital natives, whose sedentary pastimes have also marked them as the most unhealthy and overweight generation, according to The Intelligence Group’s “Cassandra Report: Gen Z.”

But savvy brand marketing can persuade moms – who decide what goes in the cart – while still appealing to kids by keeping these points in mind.

• Differentiate by flavor: After portability and convenience, flavor is the strongest consideration cited by shoppers in the children’s beverage aisle, named by 60 percent of survey respondents. With flavored waters for kids moving up in this category, including coconut water, kids are poised to be accepting of evermore-sophisticated offerings when it comes to taste.

• Add nutritional benefits: Nutrition is increasing in importance – now ranking just behind flavor in the decision-making matrix for children’s beverages with just about half of all moms scanning beverage labels. They tend to be looking for lower-sugar, vitamin-rich drinks.

• Explore novel shapes: Unusual shapes can help a package stand out in a crowded aisle. For instance, the Tetra Classic Aseptic has a highly unusual tetrahedron shape that has a proven track record in other countries as a magnet for children.

• Target your age market: What appeals to a toddler is very likely going to turn off a grade school or middle school child, so it is important to consider age when creating package designs. Segment, where possible, to capture maximum market share, or strive for a “sweet spot” with images or graphics that offer the widest appeal.

• Remember characters are key: Younger children in particular are drawn to packaging that features a character they can identify, as chronicled in a recent Yale research study published in the journal Pediatrics. Of course, movie and television characters appeal, but successful campaigns have been built around internally developed “brand icons” as well, such as Tony the Tiger and the emblem of Kellogg’s Frosted Flakes. More broadly, exciting graphics and intriguing shapes attract kids’ attention and stimulate their interest.

• Maximize the billboard effect: Shoppers spend on average 27 seconds making a decision in this aisle, according to our research, which makes shelf appeal incredibly important in capturing relatively disengaged consumers. Create packaging that offers a bold, consumer-facing billboard on the shelf.
All of these elements -- taste, nutrition and inspired packaging and design -- play into the purchase decision and each can be a powerful motivator for kids. Responsible manufacturers know their packaging can be a force for good to help moms help kids make the healthy choice.

Suley Muratoglu is VP, Marketing & Product Management at Tetra Pak Inc. U.S & Canada

Oct 09, 2013

Thursday, October 10, 2013

CPGmatters: Center Store Growth - a Journey, Not a Quick Fix


Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters. This article is based on The Tipping Point for Center Store, a report from AMG Strategic Advisors, the consulting unit of Acosta Sales & Marketing.
As traditional retailers attempt to reinvent their perimeter with a more dynamic shopping experience and capitalize on natural and health/wellness trends, they have eaten into center-of-store categories and diluted overall store profitability.
A range of efforts to revitalize center store traffic are being deployed: everyday low pricing; using center store to sell upscale non-food items (for example, Wegmans); and moving to an "all-store" brand format while limiting assortment (Trader Joe's). We have also seen a shift in consumer/shopper focus. For instance, "owning" the organic/natural consumer (Whole Foods) or incorporating "store-within-a-store" (Target).
Beyond the healthy eating trend, the growing influence of Millennials and the U.S. Hispanic market as well as the expansion in cross-channel grocery shopping all must be considered if the center store is to return to a valued growth area.
The following are some strategic challenges that must be considered as retailers work with manufacturers to revitalize the center store. The nature of these challenges make it clear that there is no "quick fix." It will take time, considerable effort, trial/testing and thought leadership. Here are the challenges:
Holistic Understanding of Evolving Shopper Behavior: Retailers need to understand context for their shoppers' behavior; that is, beyond the economic factors, such as generational differences, a broad competitive landscape that includes all channels, and shopper item selection and de-selection once in the store.
Shopper Insights Required: Loyalty card data can help retailers understand the linkage of center store and the perimeter. There is a need to understand the leakage to other channels, including e-commerce. Where and why is there leakage and where do shoppers continue to have "pain points" in their shopping.
Merchandising Innovation and Aisle Reinvention: Retailers need to consider holistic, shopper-centric shopping solutions that factor in the reduced time in the store, and the continued value of convenience; for example, sections for "stay healthy," school lunch sections, barbeque destinations, aligning complementary categories such as marinades in the meat section, etc. Operators also need to consider in-aisle display space that will bring shoppers into the aisle — perhaps meal solutions or a display of new items featured in a destination in the middle of the aisle.
Product Innovation: Manufacturers need to continue to delight shoppers with relevant innovation, taking into account the changing face and needs of the growing shopper base; for example, Millennials' adventurous food palates, Hispanic interest in family options and healthier options.