Progressive Grocer

AUG 2015

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Sources: Breakfast A&U, 2012, Shopping List; GfK, Shopper Insights Mobile, 2014 Type of app used for planning shopping trip Because the average RTEC shopper makes just one big trip down the cereal aisle each month and ofen has cereal on the shopping list already, getting on shoppers' radar before they hit the store is crucial. Retailers can connect with cereal shoppers at several pre-store touch points. Ads play a big role in trip plan- ning–55 percent of shoppers check weekly retail ads to see what's on sale, while 43 percent peruse the newspa- per or Internet for discounts, 39 so highlighting cereal promotions in weekly or daily marketing communica- tions is essential. Connecting via mobile is critical too. Four in 10 shoppers regularly use their mobile device to help plan grocery trips, 40 with most incorporating an app or two into the process. Couponing apps are the most popular, but many shoppers also use list-making apps and recipe apps. 41 To best leverage this mobile milieu, consider building meal-planning capabilities into apps or other digital tools. But even though cereal shoppers tend to plan their purchases in advance, there's still plenty of room to en- courage experimentation and fuel incremental growth in-store. The growing snacking occasion While cereal remains a pantry staple, the category is far from stagnant. Seven out of 10 households eat cereal as a snack, and snackers eat it multiple ways, including in a bowl with milk and dry; 42 30 percent of cereal is now consumed outside of breakfast. 43 Many cereal fans are even fnding fun new ways to get their fx. Creative consumption behaviors include mixing cereal with yogurt, mixing more than one kind of cereal in a bowl, and using cereal in a dessert recipe. 44 Because cereal has become such a popular snack, an increasing number of retailers are dedicating shelf space to on-the-go cereal options such as cereal in a cup. Some retailers are even devoting entire express lanes, check- out lanes or "stores within a store" to items intended for immediate consumption. Tis is producing benefts: Sin- gle-serve oferings are growing at a faster rate than both the cereal segment and the breakfast segment as a whole. 45 55% Shoppers who check the weekly retailer ads for what is on sale 43% Shoppers who check the newspaper or go online to find coupons 62% Shoppers who use a mobile device for planning their shopping trip every time or close to every time Coupon 26% List 20% Recipe 15% Payment 12% Price checking 10% Healthy eating 5% Fitness 5% Budget 4% None 16% 5 R T E C A N D H I G H E R C E N T E R S T O R E S A L E S

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