Progressive Grocer

AUG 2015

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Optimizing RTEC in the breakfast aisle Shoppers make purchases based on their own needs as well as the needs of their families, and research shows most shoppers can fnd what they're looking for using visual cues in the aisle. 46 But retailers can more efec- tively connect with their target consumers by shelving breakfast aisles according to target age fow, i.e., taste continuum. Tis approach encourages shoppers to stop and browse at multiple points along the aisle rather than cruising right through–and it works. In one study, shop- pers stopped more ofen when traversing a breakfast aisle shelved by target age fow, 47 increasing unit sales by 5 percent and resulting in a 4 percent higher average dollar price per item. 48 What's more, the entire breakfast aisle got a boost, including on-the-go cereal, hot cereal and toaster pastries. 49 Cereal shoppers also like dedicated sections for granola products and natural/organic items. Tis arrangement not only makes shopping easier and more intuitive, but it helps point those looking to try something new toward the right section. 50 Organizing the shelf along a health continuum, with fun, indulgent cereals on one end, simple goodness in the middle, and healthier options at the other end of the spectrum, is a great approach for on-the-go items. Follow this with a section for nontraditional options such as snack-bag cereals, toaster pastries and drinkable breakfasts, as well as a separate section for hot cereal. Cereal: The No. 1 display choice RTEC display packs a big punch: Among the Top 10 center store categories, cereal sees the greatest sales lif when on feature and display at 526, with the next closest Top 10 category coming in at 405. 51 Accordingly, cereal is the No. 1 display choice within center store. 52 To enhance the cereal aisle even further, focus on optimizing display mix. RTEC lif and ROI signifcantly increases as the quality of the merchandising improves. Tis includes identifying win-win promotion partners, pairing brands that build higher dollar rings and boost ROI. Some manufacturers ofer strong analytics and merchandising options that can enable the right brands in the right quantities and pricing to maximize retailer resources in each store. Optimizing the breakfast aisle + = Focus on day-part (Target age) Shopper- led focus Optimal aisle Kid All family Granola Natural/ organic cereal COLD CEREAL ON-THE-GO Adult Toaster pastries Fruit snacks Hot cereal Breakfast snacking Drinkable breakfast Wholesome bars Reward Better for you Simple goodness 6 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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