The consumer definition of value is a moving target. The widespread acceptance of online, mobile and social media marketing has gone a long way to shape the impressions of shoppers before they enter the store. Has this made traditional methods of at-retail merchandising obsolete? The January issue of Times & Trends by SymphonyIRI takes a look at current and emerging trends being embraced by CPG marketers in the ongoing battle to meet consumer needs.
This report defines merchandising activity as those employing feature ads, feature plus display, display only and price only tactics. According to the report, more than one-third of volume is sold with merchandising support across 39 percent of categories. Here are some other key findings:
-The pace of merchandising activity has been mixed during the past year, with 53 percent of categories seeing increased support. Within the drug channel, merchandising activity declined across 60 percent of categories, but support across key health and beauty care categories has risen more quickly versus the grocery channel.
-Growth in display only and price-only tactics has escalated, while combined feature/display activity has slowed.
-Merchandising activity is intensifying across many meal ingredient and meal component categories, particularly in frozen foods and fresh/perishable categories.
-In general, private brands receive less merchandising support versus their name-brand competitors.
-Merchandising programs that begin to impact the shopper in the home are having a powerful impact on sales lift.
-CPG marketers are adopting new strategies aimed at capitalizing on new technologies and building more targeted, impactful relationships with consumers.
Certainly, the merchandising tactics employed by CPG manufacturers and retailers have a direct effect on the members of the at-retail merchandising and marketing service industry who often act as their outsourced execution arm in stores. Times & Trends dives much more deeply into these trends than we can share here, so you should download your copy here.
Staying on top of trends that shape the industry is an important mission of NARMS. This commitment will be on full display at The 2013 Retail Merchandising and Marketing Conference (RMMC) to be held on April 27-30 in Scottsdale, Arizona. Visit the official conference website for more information and to register.
CPG manufacturers in all categories and channels are always looking for ways to differentiate their products to gain additional sales and market share. There was a time when this drive to draw attention lead many to concentrate their promotional activity to the perimeter of the store. The center store was seen as a place to stack it high and let it fly, but not a place to truly innovate. But according to the latest issue of Times & Trends by SymphonyIRI, there is a new emphasis on promoting center store categories.
According to Times & Trends, center store has outperformed industry averages for two years garnering two-thirds of CPG spending and 70 percent of unit sales. In spite of this fact, promotional activity is declining in 58 percent of center store categories and 6 of the top 10.
The report says that center store has rebounded due to changing consumer rituals like preparing meals at home and using home based health and beauty products. The center store is the focal point for trip missions and the basis for popular shopper loyalty programs. Advanced analytics and shopper marketing data have made it possible to promote and differentiate in the center store. It all revolves around understanding the needs of key shopper groups and merchandising to meet those needs.
SymphonyIRI suggests three courses of action for trading partners: Continue to assess new growth opportunities and threats. Explore the feasibility of collaborative marketing and merchandising plans. Closely measure and monitor strategy execution.
The members of the at-retail merchandising and marketing service industry provide services that directly support these strategies. NARMS members can quickly execute shelf-level initiatives that support shopper needs such as new product cut-ins, category resets, store remodels, product sampling and demo programs and mystery shopping/audit services.
For a deeper understanding of the SymphonyIRI Times & Trends report, download your free copy by clicking here. Another opportunity for deeper understanding and insight is coming up on April 27-30 at The 2013 Retail Merchandising and Marketing Conference (RMMC) presented by NARMS. Click here to find out more and register today.
We all know that the recession and a slow economic recovery have given rise to a strengthened effort on the part of private label merchandise and store brands. In the November issue of Times & Trends, SymphonyIRI revisits how the private label explosion is playing out, and how national brands are digging in and protecting their turf. There are strong at-retail merchandising and marketing implications on both sides of this battle for market share.
The overall finding is that the lines are solidifying. Both sides are finding areas to score some impressive gains, but it is not a winner take all contest. SymphonyIRI says that national brands and private labels must complement each other and put the needs of the consumer first. There is room for both to succeed in-store around the globe. Here are some key findings from Times & Trends:
-Although dollar share continues to grow, private label unit share of CPG products has slipped. Meanwhile, national brands are gaining volume share in 40 of the top 100 CPG categories.
-Consumers are continuing to see value in terms of cost and benefits of store brands. There is growing feeling of acceptance helped by innovation and improved quality.
-Private label continues to score big points in the grocery sector in terms of growing share. However, share has slipped within the important drug and c-store sectors over the last year.
-In spite of the impressive gains, even the most ardent private label buyer only spends one out of every four CPG dollars on store brands.
-Store brands receive below-average levels of merchandising support and there is evidence to suggest that the level of support has been declining during the past several years.
As is the case with every issue of Times & Trends, there is way more valuable information than can be represented in this column and you should visit SymphonyIRI and download your free copy today.
Keeping you up to speed on the trends shaping the retail marketplace is an important function and value of your trade association. That commitment will be on full display at The Retail Merchandising and Marketing Conference (RMMC) presented by NARMS. The event is scheduled for April 27-30 at the Scottsdale Plaza resort. Visit the conference website for more information and to register.
Much has been said and written about the baby boomer generation as a key shopper group. In the new issue of Times & Trends, SymphonyIRI calls this group of over 80 million the most studied shopper group in market research history. The report, Baby Boomers: Riding the Wave of Diversity, takes a close look at spending patterns and buying power of boomers, further studies and breaks down sub-segments of the group, and prescribes potential action items for CPG manufacturers and retailers to better service baby boomer market needs. As always, there is a strong correlation between the action items and at-retail merchandising and marketing activities.
Here are a few highlights of the SymphonyIRI findings: Spending for the group fell during 2010 and younger boomers continue to outspend older boomers and seniors for the past few years. The club and dollar channels have gained in market share for the group, while grocery and drug channels have witnessed a decline over the past year. Health concerns drive spending that increases with age for healthcare products, but decreases for beauty and personal care items. Boomers are similar to the average shopper when it comes to private label spending, but a disproportionate amount is directed toward the drug and dollar channels. Internet, social media and mobile technology use is much lower among older shoppers, but that is expected to change very shortly.
There is much more to this issue of Times & Trends than we have time or space to share. You will want to follow the link and download your own free copy. To wrap up the message in one neat package, the report advices manufacturers and retailers to continue to invest and understand this key demographic for their wants and needs at the market/store level. The next step is to deliver personal and customized in-store programs and direct-to-consumer marketing programs that speak to those needs. The members of NARMS can help on both counts.
The August 2012 edition of Times & Trends from SymphonyIRI takes a detailed look at the changing dynamics in the CPG marketplace and the opportunities for both manufacturers and retailers that have resulted. The double edged sword of high costs on the supply side and constantly changing buyer behavior on the demand side is causing a shift and making success at retail a moving target. Here are a few of the key findings found within the report:
Three quarters of consumers shop in five or more channels. This finding suggests that consumer are refining their shopping strategies to the channels they feel offer the greatest value.
The battle for grocery spending is being hotly contested and is seeing a high degree of channel migration. Supercenters and dollar stores have made great gains in winning heavy grocery shoppers away from other channels.
The consumer trip mission is still evolving as data suggests that trip frequency is declining, while basket size is increasing per trip.
The drug, dollar and club channels are capturing market share across several CPG departments at the expense of grocery, supercenter and mass. These changes are not huge, but the trend is hard to ignore. There has been a huge market share gain in the health and beauty care departments in the drug channel.
The Internet is a big factor in CPG purchase behavior and is a force to be reckoned with. According to Times & Trends, online sales of CPG products grew 10-14 percent during the first quarter of 2012.
What does all this mean for the members of NARMS? As consumers migrate across channels and as brands seek to find the action, trading partners will have to reset categories, cut-in new products, experiment with new formats and remodel existing stores. The August edition of Times & Trends is another great resource for at-retail merchandising and marketing service professionals to download and have at their finger tips as they contemplate how to best serve their manufacturer and retailer clientele.
It is an understatement to say that a primary success factor for retailers and CPG manufacturers is to understand key buying groups and shopper behavior. The latest Times & Trends report from SymphonyIRI takes a look at Millennial Shoppers using data derived from their quarterly Market Pulse survey. Millennial Shoppers are defined in this report as those between the ages of 18 and 34. In reading through the report, some opportunities to reach this challenging segment come shining through.
SymphonyIRI research shows that the Millennial segment is more cautious and frugal than the generation of 35 to 54 year olds. They are much more likely to use at home beauty treatments or spend time cooking meals that, in the past, would have been reserved for restaurants. They are also 200 times more likely to be influenced by smart phone apps and depend greatly on the opinions of others and social media when making buying decisions.
The report urges trading partners to determine and understand group shopping patterns, such as preferred channels, retailers and trip missions. It also stresses the importance of exploring the potential of new products and extensions within existing lines.
There is not enough space here to share all of the key findings and we invite you to download the free report and read it for yourself. For members of the at-retail merchandising and marketing community, there is a chance to positively impact retailer and manufacturer efforts in multiple areas of the go-to-market process.
Mystery shopping services can greatly enhance trading partner understanding of key demographics. New products need to be rolled out and cut-in to existing plan-o-grams quickly and efficiently to bring return on product development dollars sooner. Reducing out-of-stocks through regular coverage calls can not only increase sales, but it can build brand image by not allowing a bad customer experience to go viral. The members of NARMS are uniquely qualified to help trading partners reach and keep the Millennial shopping segment.
In a week that saw Wal-Mart move the U.S. marketing team under the direction of their chief merchandising officer, SymphonyIRI Group released the latest edition of Times & Trends which calls merchandising the platform to communicate value to the consumer. For members of the at-retail merchandising and marketing services industry, this is more evidence that the importance of in-store is ever increasing in the minds of brand marketers and retailers.
Wal-Mart says that their move is designed to better coordinate communication between the merchandising and marketing groups. They see the two previously separate functions as transforming due to the Internet, social media and mobile technology. SymphonyIRI defines merchandising as displays, feature ads, feature and display combined and price promotion. Their findings may have something to do with the Wal-Mart move. Here are a few of the positive trends:
-Merchandising support is increasing in 47% of categories across CPG channels. Drug channel merchandising activity is outpacing the grocery channel and the industry.
-CPG marketers are focusing their support toward home-based food rituals.
-Merchandising support of private label remains below that of national brands, but the gap is closing.
- Categories seeing the highest lift across merchandising tactics are well-represented by those that cater to recession-driven behaviors.
Times and Trends goes on to reinforce that shopper marketing, an individual level 360 degree view of the consumer, is the most effective current marketing program. Merchandising tactics that have been around for a long time have found new life as a way to support the shopper marketing approach.
The members of NARMS are well positioned to help retailers and manufacturers fully usher in this new age. Price promotions do not work if consumers do not find the products on-shelf. Displays are not effective in the back room. Feature ads need to be met in the store with an equally well executed and consistent message. Great plans can fall apart in the last three feet. You can download the latest Times & Trends report by SymphonyIRI by clicking here.
We have all read endless stories about the changing face of the American shopper. We know that consumers are being conservative in their buying choices and that impulse purchases are down as shoppers stick to the shopping list and hunt for deals. The most recent Times & Trends from SymphonyIRI does a great job of digging beneath the surface of these general trends, helping us to truly understand motivations. They also give retailers and manufacturers some practical tips that we, as at-retail merchandising and marketing service professionals, can look forward to executing in-store.
Despite the relatively negative headlines in the trade press, there are some brand marketers succeeding at retail. We are also coming off one of the most robust Thanksgiving weekends in history with Americans spending $7.4 billion more than last year, according to the National Retail Federation. We can no longer say that the American shopper only has one face. Successful CPG companies have come to realize that there are many. And they are figuring out ways to reach them.
Here are some steps to success for CPG companies according to SymphonyIRI: Trip Management helps to segment consumers using analytical tools to recognize opportunities in the store. Store Level Opportunity Analysis can identify missed opportunities using POS data. Maximize Packaging by focusing on channel and trip type. Understand Channels and focus on growth channels like Dollar and Drug stores. Look at Assortment to determine optimal use of shelf space. Always keep an eye on Pricing in regards to channel, competition, private label and promotion.
The paragraph above only scratches the surface of the Times & Trends report and you should definitely download and take the time to read and digest it. All the suggested approaches for manufacturers and retailers ultimately run up against the same challenge of at-retail execution. As providers of those services, the members of NARMS should stay tuned and be ready with offerings that understand and meet the needs of trading partners.
A few days ago, we brought you a Times & Trends Report from SymphonyIRI that stressed taking care of the ultimate consumer. This week, another grocery consumer survey seems to compliment those observations. A story in Progressive Grocer reports on the findings of a Coinstar study that found that 81 percent of consumers are spending the same or more the past three months on groceries, but they are asking for more when it comes to value and service. As the story describes, these consumers are taking a back to the basics approach. Today, we will look at some of the other findings.
Over half of those surveyed said they have used more coupons than in the past. The same amount said they prefer loyalty or value cards that offer instant rewards. The use of debit cards and cash are the primary forms of payment when it comes to groceries. These consumers said they are buying more grocery brands than private label and less non-necessity items. They say they are being careful with their dollars, but will spend providing they see a streamlined and value-oriented approach.
As the story reports, the National Retail Federation predicts an average holiday shopping season expecting a 2.8 percent increase versus the 5.2 they experienced last year.
What does this all mean? The holidays are providing an opportunity to attract and build consumer loyalty and increase market share, but the margin for error is shrinking. The doorway to success is through excellent execution and paying mind to the customer experience. Sixty-two percent said a varied, well-organized inventory was the key. Sixty-one percent cited ease and speed of the shopping trip.
It has never been more important for brand marketers to execute exceptional at-retail merchandising and marketing programs. Being in-stock, having promotional material on display and providing professional sample and demo programs appeal to the more grass roots approach being displayed by grocery shoppers. To not execute means to lose that hard-earned shopper and now thinner dollar to another store or brand.
The shopper is king and everybody involved in retail serves at the pleasure of the king. That is the key message delivered in the latest issue of Times & Trends by SymphonyIRI. Unemployment and inflation have created an extreme barrier to achieving the stability necessary to smooth out troubled economic waters. But nobody is in the exact same boat. As Times & Trends reports, the needs of individual shoppers vary as greatly as day-to-day economic circumstances. Not surprisingly, there is a strong at-retail tie-in to be employed by successful brand marketers.
Here are some of the observations recorded by SymphonyIRI: Almost half of all shoppers surveyed feel that they have experienced a financial setback last year and do not expect that situation to change in the near future. Consumers have made adjustments to their shopping patterns and habits to account for the economy with about 25 percent saying they have trouble affording weekly grocery needs. Simplification and conservation are now driving shoppers as they learn to cope with the conditions. A self-service attitude has emerged particularly in health and beauty care. List-making has made a comeback with shoppers putting items on their list based on cost savings and promotions. Many of these cost saving opportunities are being derived from the Internet. The issue of cost and the ever-changing cash flow position of consumers are causing trial of new brands and products that they would not have considered before.
Times & Trends offers some remedies for manufacturers and retails. Some of those suggestions are of particular interest to members of the at-retail merchandising and marketing services industry. In-store efforts should follow closely with externally-targeted promotional campaigns to ensure that pre-planned purchase decisions can be carried out in the store. Trading partners should work together to develop in-store programs, such as displays and demos, that show the consumer how to save and get maximum value. These efforts should be constantly measured to allow for mid-stream corrections and adjustments.
The shopper is king and NARMS members are ready to provide in-store support services to supplement programs designed by trading partners that speak directly to their needs. Download and digest this issue of Times & Trends to help better understand those needs.