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Posts Tagged ‘SymphonyIRI’

Mother Knows Best: Moms Stay Optimistic, Shop Smart

Wednesday, May 2nd, 2012

After a tumultuous 2011, consumers are starting to regain confidence in their personal finances. This week, we released the SymphonyIRI Group Q1 2012 MarketPulse™ survey and found that 19 percent of consumers feel their financial position has improved over the past year. Forty percent feel it has remained unchanged, and 41 percent feel it has deteriorated. Though, less than inspiring, this is the most optimistic outlook since Q1 2011.

Despite the overriding doom and gloom, one group has managed to remain optimistic: the nation’s 85 million moms have a brighter outlook on the future than the general population—and trillions of dollars in spending power. The MarketPulse results offer valuable insights about this smart and influential group, including:

23 percent of moms feeling their financial position today is better than a year ago
28 percent are struggling to afford needed groceries
More than half will shop multiple stores to find the lowest price, versus 43 percent of the general population

Delving more into this trend, we also released a Point of View on this very important consumer demographic, “Valuable Assets: Today’s Moms Represent Savvy, Smart Shoppers.” In this Point of View, we discuss how often the primary shoppers for their households, moms are tasked with saving money on groceries and household needs. They adopted new shopping behaviors after the downturn and will likely continue those saving strategies even as the economy improves. Among their penny-pinching measures, moms have embraced new media as they are 2.5 times more likely than the general population to take recommendations from social networking sites or blogs.

Social media is integral for CPG marketers and retailers looking to target tech-savvy moms, but traditional marketing still goes a long way. Given their hectic schedules and mile-long, to-do lists, moms are very strategic shoppers. Nearly three-quarters make shopping lists, and moms are 24 percent more likely to use coupons to help make their lists than the general population. Once at the store, moms’ brand decisions are influenced by in-store circulars, advertisements and promotions. But, bottom line, price remains the primary deciding factor: 61 percent of moms say the price of an item heavily sways their brand decisions, versus 49 percent of the total population.

Tags: coupons, cpg, economy, grocery, manufacturers, Marketing, MarketPulse, moms, new media, Retailers, shopper attitudes, shopper behavior, Social Media, SymphonyIRI, Women Shoppers
Posted in Moms | No Comments »

2011 New Product Pacesetters: Learning from the Top CPG Launches

Tuesday, April 24th, 2012

More than 1,500 new CPG products entered the market in 2011, but only 291 achieved SymphonyIRI New Product Pacesetter (NPP) status. We’re celebrating these successful product launches in SymphonyIRI’s 2011 New Product Pacesetters report, a benchmark analysis of the best-performing new CPG brands in the food and beverage and non-food categories.

Launching new products is extremely difficult, particularly in this unstable economy. Of the 15,000 CPG products introduced from 2002-2011, less than 2 percent made more than $50 million in their first year. In 2011, 81 percent of new CPG launches failed to earn $7.5 million in first-year sales. Yet, 2011 also welcomed some GREAT newcomers; an impressive 21 percent of Pacesetter products passed $50 million in their first year.

Despite ongoing economic challenges and a complex retail environment, 2011’s Pacesetters beat the new product odds, and they did so by delivering what consumers wanted: luxury and indulgence that didn’t break the bank. Some trends and success secrets from our report:

Twelve percent of 2011’s successful food and beverage launches were restaurant inspired— double that of 10 years ago.
Consumers sought unexpected textures and flavor combinations, and smart manufacturers met these demands with new technologies and bold ingredients. More than half of 2011’s successful food and beverage launches touted a new or unique recipe.
Coffee and candy were big sellers. Candy and gum launches made up 19 percent of 2011 food Pacesetter dollars, nearly triple the average for the past decade, while nine coffee and tea innovations achieved New Product Pacesetter status, accounting for about half of all 2011 beverage Pacesetter dollars.
In non-foods, consumers are skipping the salon and handling more of their beauty and personal care needs at home. Professional-quality beauty and personal care products that offer affordable, at-home luxury and indulgence really resonated with consumers.
The most successful new household products made housekeeping easier, but also provided extras like fresh fragrances, sustainability reassurances and extended product life.

For more analysis of 2011’s New Product Pacesetters and to find 2011’s most successful brand launches, please visit our New Product Pacesetters page, where you can watch the NPP video, read the press release, replay the webinar and podcast, and download a detailed Times & Trends Report on New Product Pacesetters.

Tags: consumer rituals, Consumers, cpg, CPG trends, Eating Habits, economy, health options, manufacturers, niche, retail innovation, sales, shopper behavior, shopping trends, SymphonyIRI, year-one
Posted in New Products | No Comments »

Frugality, List Making and a Taste for Gourmet: 2011 in Review

Thursday, March 15th, 2012

With minimal economic improvement, rising commodity prices and continued consumer frugality, 2011 was another challenging year for the CPG industry. During our recent webinar, “Times & Trends: CPG 2011 Year in Review,” I discussed the key economic and consumer trends that impacted CPG performance across various channels, departments and categories in 2011. These include:

Ongoing conservatism shifted shopper behavior: As illustrated in our December report, “The CPG Basket: Fostering Growth in a Time of Conservation,” pantry stocking missions are a way of the past. Consumers are now making smaller, more strategic shopping trips. Rather than blindly stocking up on anything and everything, consumers are carefully researching where and when they can obtain items at the best possible price.

Shopping locally: As gas prices continue to climb, many consumers are looking to shop closer to home, contributing to a decline in supercenter traffic. In 2011, consumers made an average of only two supercenter trips each month, compared with an average 4.7 grocery store trips.

In-home indulgences: Now that consumers across income levels are saving money by enjoying more meals at home, sales of various food and beverage categories have increased, including wine, chocolate, natural cheese and salty snacks.

Some consumers are starting to open their wallets—cautiously: Wealthier consumers are buying higher-end CPG products, such as gourmet foods and salon-quality hair products, but they’re doing so with an eye towards value. High-end CPG products allow consumers to reintroduce some of the luxuries they previously enjoyed, while still spending less than they would at restaurants, bars or salons.

Strong drug channel and private label performance: The drug channel remains strong, with dollar sales climbing more than 4 percent in 2011. Private label performance also remained positive, accounting for 22.9 percent of unit sales and 18.7 percent of dollar sales.

So what can CPG manufacturers and retailers learn from these findings?

Price remains the primary consideration for consumers, so CPG manufacturers should look for opportunities to lower costs through innovative sourcing, packaging, and product sizing strategies. This is also an ideal time to explore product development based upon existing and emerging consumer trends. Gourmet and other high-end products, in particular, present a strong growth opportunity.

Retailers should be cognizant of the growing private label popularity, and look to extend private label share, particularly across low-differentiation categories and those with significant price increases. It’s also important to constantly re-assess and adjust pricing to maintain an optimal price gap between private label and name brand offerings.

CPG retailers should also seek to enhance product assortment, especially in high-growth categories, and look for cross-promotional opportunities with high-growth categories and brands, as well as staple products. Both manufacturers and retailers should keep an eye out for technological advances and should seek out new and innovative means of informing and engaging consumers.

If you missed the webinar, you can view it here, or download the full “CPG 2011 Year in Review” report.

Tags: Consumers, cpg, economy, Frugal, grocery, pricing, Retail Solutions, Retailers, shopper attitudes, shopper behavior, Shoppers, shopping, SymphonyIRI, Times & Trends
Posted in CPG | No Comments »

The Beauty of Online CPG Shopping

Tuesday, March 13th, 2012

When most people think of online shopping, CPG items aren’t the first to come to mind, but that may not be true for long. CPG manufacturers are capitalizing on the growing online shopping market utilizing various business models. They range anywhere from presence within e-tailers like Amazon, online stores for brick and mortar retailers like Target.com, direct to consumer selling like P&G and, lastly, social commerce through Facebook. The industry is experimenting with these various techniques as new business models emerge. Though there are a variety of products being bought online, beauty products are amongst the most commonly purchased CPG categories. The SymphonyIRI April/May ‘11 Omnibus Survey found 20 percent of respondents reported to have purchased beauty products online within the last year.

With beauty products available at drug stores, grocery stores, health stores, department stores and specialty stores, why are so many shoppers choosing to buy them online? The same study found 89 percent of consumers shop online for convenience, while 82 percent do so to save money. Many consumers turn to online shopping to purchase niche products that are hard to find in stores, but in addition, a large percentage of purchases are substitutions: consumers buy what they know, expect and are comfortable with—the same products they would select in-store.

Though consumers applaud the convenience of online shopping, they are not willing to pay more just to avoid a trip to the store. Discounts and perks like free shipping are almost expected; few would shop online if it meant a heftier price tag. But with gas prices threatening to reach $5 per gallon by summer, will that attitude change?

Just how much Americans are willing to pay for gas remains to be seen, but as prices continue to climb, we can expect to see an increased inclination towards e-commerce. Many consumers, especially those in rural areas, would prefer to shop online in order to eliminate a costly drive to the store. Soaring gas prices are especially likely to spur beauty product e-commerce, as most beauty items are small and light, bearing minimal shipping costs. So, when a consumer runs out of her favorite moisturizer, she’ll have a simple decision: do I spend 45 minutes in the car each way to get to the closest Macy’s, or do I spend 5 minutes and $5 more on Amazon?

Tags: cpg, e-commerce, manufacturer, online shopping, retailer, Srishti Gupta, SymphonyIRI
Posted in Online Shopping | 5 Comments »

A Year Behind and Ahead of the Curve

Monday, February 13th, 2012

Are you always searching for a million-dollar idea? I know I am; and recently, I thought I had it. Picture this—an app that leads you to your desired product via a store specific map. Brilliant, I know—and with millions of apps and smart phones flooding society, how could this not exist? Immediately I consulted my consumer panel of colleagues, friends, and family—all agreed this was the future: a real game-changing, million-dollar, never-been-had-before idea. Having been in the industry for years, surely I would know if a retailer had brought this to market…wrong.

Further investigation led me to Meijer, who I heard—despite the sound of my dreams shattering— had been fielding their Find-It app since 2010, though it never left 4-store beta testing. How had I not heard of this, and over a year later, why was it still in beta testing? The genius of my million-dollar idea began to fade until a recent newsletter came across my desk: Hy-Vee was announcing a similar app. Theirs, however, includes nuances like voice search and real-time tweeting about out-of-stock items, was backed by a marketing push, and is slated to roll out to all 235 stores.

The Hy-Vee push confirms my initial research: consumers recognize, crave, and expect the convenience of this technology. While the new update to Meijer’s app includes all their stores, Hy-Vee’s initial commitment gives them an edge with today’s shopper. Beyond affecting the in-store experience, their extra features improve their customers’ brand interactions outside the store. Their app eases the effort required to shop, and the choice for consumers is easy—less [effort] is more [trips].

The time has passed for toe-dipping into the Social Media/App waters—an emphasis must be placed on deploying social technologies with vigor and a megaphone. Today, it isn’t the initiator, but the believer who will win valuable shopper trips. If a retailer can commit to implementing fully-scoped and useful technology, consumers will leverage it—they want to leverage it—and you will have a million-dollar idea.

1. How are you engaging your customers with Social Media? What are you doing to 2) create awareness around your social and mobile platforms?

2. What could you do better to improve their experience through social and mobile technology?

3. Do you think you have to innovate to reach your customers, or could you leverage current best-practice approaches and improve on them?

Tags: app, Ben Perkins, grocery, Hy-Vee, Meijer, mobile technology, Retail Solutions, Retailers, SymphonyIRI
Posted in Retail Solutions | No Comments »

Dollar Stores Hitting a Home Run

Monday, January 23rd, 2012

Dollar Stores 1/20/2012

It’s like the first time your little brother hits your famous whoop-di-doozer pitch over the fence in whiffle ball—you realize that everyone grows up, and you’re going to have to take him seriously (and get a new pitch). Ladies and Gentlemen, I give you the little brother: Dollar Stores.

For decades, dollar stores have been operating in the shadows, serving a particular customer base with particular products, while larger retailers jockeyed with one another for market share. Just like your little brother, these dollar stores are no longer smaller than you (the largest retail chain in the US is Dollar General with over 9K stores) and can no longer use your hand-me-downs (P & G is making sizes fit for dollar store shelves, instead of delivering overstock and closeout).

Like any older sibling would, you downplay the success—the wind caught that one, or in this case, the economy gave you a boost. Well, that’s all fine and true, but they still got a hit—and with plans to double store count (Dollar General) and net sales growth reaching 12% vs. last year (Dollar Tree), dollar stores are confident that they can continue to do it.

While these chains “grow-up” their operations (adding frozen food, quality and name brand items for more than $1, and stocking trip-initiators), consumers are capitalizing on their quality and convenience. Larger retailers are now faced with an age-old family dynamic shift—they can either adapt to this new competition or watch little brother circle the bases.

1. Have you analyzed the Dollar channel’s effect on your business? Are they eating away at your customer base?

2. Do you understand how your customers use you and dollar stores? Is there an opportunity to keep that business (product/trip focus)?

3. Can you identify points of your business vulnerable to the Dollar channel? How can you shore up those gaps?

Tags: Dollar General, Dollar Stores, Dollar Tree, Family Dollar, Retail Solutions, SymphonyIRI
Posted in Retail Solutions | No Comments »

An Alternative to “Paper or Plastic”

Wednesday, October 5th, 2011

It is no secret that people are attempting to become more eco-friendly for one reason or another these days. Whether it is as simple as composting or as complex as putting solar panels onto their houses, people are trying new ways to help the environment. One sustainable trend that’s taken hold is the usage of re-usable bags. A great alternative to the “paper or plastic” option re-usable bags help reduce the influx of non-compostable items into the land fills.

While the hope is for all shoppers to choose to use re-usable bags on their own accord, new alternatives to the ever-prevalent “paper or plastic” are beginning to pop up.

Here is a look at a few of these alternatives:

Banning of Bags: Regions have passed city ordinances outlawing the distribution of plastic bags within certain retailers. It began with San Francisco, who issued a city-wide ban on plastic bags in 2007, and has spread to other cities like the recent Santa Cruz.

Charging for Bags: To deter people from loading groceries into paper and plastic bags, entire regions have passed laws that will charge people for bags. In Los Angeles County, grocers must charge customers 10 cents per bag and in Washington, D.C., five cents per bag. These regions are hoping that by charging people for bags, people will be disinclined to use them.

Reward for Bags: On the flip side of charging people for bags, some retailers like Target and CVS have taken the forward step by actually paying people for bringing their own bags. This incentive will hopefully make people more prone to bringing in their bags and less prone to using bags at the stores.

Ridding of Bags: Supercenters like Costco and Sam’s Club have completely eliminated bags from the equation and made it so customers don’t have a bag option. Instead, these supercenters offer their customers boxes that the store products come in, as a form of packaging for the customer but also to reduce dump costs for the stores.

For now, these alternatives are available to help rid the environment of plastic bags and until they are banned altogether, a reminder to shoppers of the benefits of using re-usable bags and having re-usable bags available for purchase at check out is a step in the right direction.

Tags: cpg, eco-friendly, Re-usable bags, Recycle, Sustainable, SymphonyIRI
Posted in Re-usable bags | 5 Comments »

Is Healthy Eating Really Healthy or Just a Fanciful Myth?

Tuesday, October 4th, 2011

We’ve all witnessed the large, deliberate shift to healthy living options. Whether it be the promotion of exercise, the push of fitness clubs and magazines or eating a more plentiful diet, the buzz about healthy living is certainly being felt. This trend has taken the CPG and retail industry by storm. Almost every product being offered today has a low-fat or non-fat option, and it’s almost standard for packaging now to include natural, organic or allergen-free labels. While this all seems like a positive trend and move toward the right direction, it has created some concern amongst consumers.

While various product packaging may state an all natural or low-fat option, it sometimes comes in exchange for high amounts of sugar or fatty ingredients that aren’t even entirely natural. Just because a product is low-fat doesn’t necessarily mean it is sugar free. This has resulted in consumer confusion and disappointment with many feeling misinformed by manufacturers. Some consumers are left disheartened by the premise that in order to see what is truly in a product the label is not enough. This recent dilemma has become a rather precarious topic within the CPG industry.

Seeing the Big Picture

In a time where consumers are being conscious of their spending, creating and maintaining brand loyalty is more critical than ever. CPG manufacturers have the opportunity to be a part of this health food trend by being fully transparent with the ingredient list, therefore establishing themselves as a brand worthy of consumers’ trust.

As is, brands are already seeing this health and wellness trend as a competitive advantage and some are providing full disclosure when it comes to health food information, including non-GMO ingredients, specifying the percentage of organic and natural ingredients and listing the allergen-related ingredients a particular product contains. Some retailers have also started healthy lifestyle groups within their community for shoppers interested in learning more about healthy eating strategies. Ultimately, transparency fosters customer trust and loyalty. As this health food trend continues to unfold, it seems safe to assume that CPG companies will have to get on board with full ingredient disclosure, as some already have, per consumers’ request.

Tags: cpg, Health Food, SymphonyIRI
Posted in Eating Habits | 4 Comments »

The Consumer Cost of Food Allergies

Monday, October 3rd, 2011

Take a look down your grocery and drug store aisles and you’ll agree that food-allergen awareness has increased ten-fold in the last couple years. Everywhere you look, whether in magazines, store signage, or on TV, people are talking about different allergens, ways to cook without certain foods, and the importance of retailers providing allergen-free products.

While many retailers have started carrying allergen-free foods, including gluten-free, dairy-free, soy-free, and nut-free, the cost and availability of these products are still proving to be a burden to consumers.

As a whole, the costs of allergen-free products are normally almost double the cost of regular products. Take for example the King Arthur gluten-free cake mix. While very delicious, this cake mix cost $6.95 compared to normal mixes that average below $3. Consumers with allergens have no option but to purchase these pricier foods. However, doing so puts a strain on the pocketbook.

Despite the increased awareness, these foods are still not as available as normal products. Not all retailers have a large selection of allergen-free products which leaves consumers traveling to multiple stores or shopping in other towns. Whole Foods is one such retailer that has a very wide selection of allergen-free products, but unlike larger, less specialized chains, there are limited locations. This leaves consumers driving farther and spending more money on gas, again increasing the costs.

Many consumers have turned to purchasing online because of lack of availability and higher costs of allergen-free food. Sites like Amazon or Gluten-free.com offer a wide variety of allergen-free products as well as free delivery. This cuts down on travel for consumers which in the end, saves them money.

There’s no doubt that the demand for allergen-free products is only going to increase. Brick and mortar retailers should take note of this demand now in order to remain competitive with their online counterparts by addressing cost and availability concerns from consumers.

Tags: dairy-free, food-allergen, food-allergy, Gluten-free, soy-free, SymphonyIRI, Whole Foods
Posted in Food Allergies | 2 Comments »

Talk About a Bad Meal

Thursday, September 29th, 2011

Have you ever experienced that uncomfortable, nauseous feeling followed by a meal? The one where you say to yourself, “Oh no, this isn’t normal… I must have food poisoning.” If you answered yes, you are one of many. Every year in the U.S., foodborne illness, the result of consuming contaminated food or beverages, causes 76 million gastrointestinal illnesses, 325,000 hospitalizations and 5,000 deaths, according to the U.S. Department of Health and Human Services. Talk about a bad meal.

With so many cases of foodborne illness, it makes one wonder, what can retailers and manufacturers do to help consumers prevent future outbreaks?

One suggestion is for retailers to educate consumers about the dangers of undercooked food and highlight safe handling processes. This can be communicated through in-store signage or fliers/handouts relevant to different sections in the stores, including meat, dairy and produce. By providing consumers with this information, it will hopefully lessen the cases of foodborne illness.

For manufacturers who are usually at the receiving end of outrage from consumers when outbreaks occur, strategies, such as removing spoiled foods as quickly and efficiently as possible in the case of a recall and utilizing instant communication mediums, such as mobile devices to text or e-mail registered shoppers about the bad product, can cut down the spread of foodborne illness.

Another strategy that some manufacturers have employed is to provide consumers with recipes and facts detailing how long to cook certain products. JennieO, for example, offers many recipes on its Web site as well as providing a “Tips for Food Safety” page. By educating consumers about meal preparation, the likelihood of undercooked or poorly handled food will decrease.

Better communication and continued consumer education of food handling and food preparation guidelines will undoubtedly be helpful in the battle to minimize foodborne illnesses…one consumer at a time.

Tags: cpg, Food Safety, Foodborne Illness, SymphonyIRI
Posted in Food Safety | 2 Comments »

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