Progressive Grocer Product

Summer 2015

Issue link:

Contents of this Issue


Page 11 of 51

cover feature 1 2 Progressive Grocer Products Showcase / Summer 2015 Consumers shopping the food segment are looking for quicker, easier and more portable solutions, solutions that make life more exciting and/or solutions that make reaching nutritional goals a bit easier, according to the 2014 NPP report. On the other hand, consumers are more cautious with choosing new health care products, with 13 percent considering themselves to be enthusiasts of new launches in this area. Enthusiastic consumers shopping new healthcare products are seeking faster, longer-lasting and/or more effective relief of ailments and condition that detract from life's enjoyments, fnds the 2014 NPP report. Consumers Value Value Another contributing factor to consumers' enthusiasm for new products is their fnancial situation. According to IRI's MarketPulse survey, 27 percent of consumers feel their fnancial position has improved during the past year. Thirty-fve percent of consumers expect improvement in their fnancial health in the coming year. "This is good news for new product innovators, as these folks are generally more open to trying something new and/or 'unknown,'" Viamari says. Millennial shoppers (age 18-34), in particular, are feeling more fnancially secure and optimistic. Throughout the downturn, millennials struggled, and have generally indexed the lowest among consumer age-based segments on IRI's Shopper Sentiment Index. In frst quarter, though, millennials are noting a sharp uptick in sentiment, Viamari says. While deal-seeking behavior has eased slightly during the past year, consumers in general remain enthralled by a good buy. More than one-quarter (29 percent) of consumers estimate that 50 percent or more of their most recent basket was bought on deal, compared with 34 percent in Q1 2014, according to IRI's MarketPulse survey. To be effective, though, the value proposition must be tightly directed to the target audience. Consumers are looking for very personal experiences. Products that zero in on what's important to them, such as convenience, healthier, more powerful or some combination, are what they desire, Viamari says. This also includes packaging, such as appropriate size or product form, and individualized pricing. For example, a consumer may look to save money by bulk or multi-pack purchasing — paying a higher face value, but saving on the unit or per-serving price. On the other hand, some consumers may be most interested in the shelf tag and less concerned with the per-serving price, she explains. Nearly half of consumers said their interest and awareness of new products are heavily infuenced by price, according to IRI 2015 New Product Survey. But providing value is not all about providing the lowest price. Many of 2014's top-selling product launches commanded sizable premiums in average price paid. For example, SkinnyPop, on average, sold at a price that is 72 percent higher than the category average price. The brand accomplished this by answering a number of key consumer needs and wants, such as it's healthy, of premium quality, portable and available in a variety of favors. Another conservative behavior of consumers is a more self-reliant approach to daily living, such as more self-care treatment of simple ailments to save money, more home-prepared meals and snacks instead of eating out. In addition, consumers are "going pro" with beauty and personal care with do-it-yourself manicure and at-home teeth whitening kits. "This is a means of saving money, but it also speaks to how powerful CPG products are these days," Viamari says. Where Consumers Shop Not surprisingly, consumers are most likely to turn to the grocery channel when purchasing a new food or beverage item. Sixty-eight percent of consumers said that they're most likely to make their frst purchase of a new food product in a grocery store, according to the New Product Survey. Mass merchandise/supercenter is the second most likely channel, at 28 percent. But, millennials and consumers from households with income less than $35,000 are much more likely than others to turn to the dollar channel. Source: IRI 2014 New Product Pacesetters NASACORT ALLERGY 24HR 109% SKINNYPOP 72% CASCADE PLATINUM 211% TIDY CATS LIGHTWEIGHT 248% RED BULL EDITIONS 68% % Premium vS . S egment average PPv Select PaceSetter brandS While deal-seeking behavior has eased slightly during the past year, consumers in general remain enthralled by a good buy.

Articles in this issue

Archives of this issue

view archives of Progressive Grocer Product - Summer 2015