The “Great Recession” may have ended in 2009, but budgeting has become a way of life for many consumers. While promotional activities kept many CPG marketers afloat at the beginning of the recession, these programs have been less successful during the last 12-18 months.
Results from IRI’s Q2 2013 MarketPulse™ show consumers settling into a “new normal” defined by conservative purchase behaviors and attitudes. Despite economic improvement, there has been virtually no loosening of purse strings during the past two years.
As consumers continue to focus on value and savings, CPG marketers must re-examine their tactics and apply new, innovative strategies to attract customers. To capitalize despite the “new normal,” CPG marketers need to align their products and pricing to address consumers’ most pressing needs. Everyday pricing should provide strong value while still supporting the bottom line, while promotions should be used to address short-term, tactical opportunities.
Among the key MarketPulse findings:
- 56 percent of consumers select most of the products they will purchase before leaving their homes.
- To find the lowest prices, 65 percent of consumers use prices advertised in retailers’ weekly circulars; 56 percent compare prices across area retailers; and 26 percent use retailer websites.
- Store-based marketing tactics are still influential. When selecting a brand, 48 percent of consumers consider shopper loyalty card discounts; 44 percent use in-store circulars; and 28 percent use in-store signs and displays.
To win over consumers, the key is to begin the conversation before they reach the store (through advertising and social media), but to also continue a dialog up to—and even after—the purchase. Traditional tools like circulars and in-store signage are essential, but marketers should also supplement these with advanced approaches, such as sampling kiosks and highly targeted loyalty programs, to really grab shoppers’ attention and drive purchase behavior.
Have you managed to entice consumers into loosening their purse strings? Which advertising and marketing tactics have you found most effective? We’d love to hear your strategies and successes, so leave a comment below!
For more details on targeting and attracting shoppers in light of the “new normal,” please read the MarketPulse press release.