Progressive Grocer Product

Summer 2016

Issue link: http://magazine.progressivegrocer.com/i/695133

Contents of this Issue

Navigation

Page 11 of 31

cover feature 1 2 Progressive Grocer Products Showcase / Summer 2016 diferent eating occasions in diferent channels and for diferent consumers," Viamari says. "All of these broader competitors are potential sources of volume, and they can also potentially steal volume away from the new launch. So, marketers need to understand the competitive world they're in during each purchase opportunity — time, channel and shopper — and they need to tailor their product, placement, promotional programs and pricing for each particular situation." As far as consumer wants, consumers desire sophisticated food and beverage solutions. Today, 40 percent of consumers are regularly buying premium-quality food and beverages, according to IRI Consumer Connect, frst quarter 2016. Food and beverage solutions have become a common way for consumers to indulge without overspending. This is fueling a plethora of CPG crossovers from restaurants. "There has been an ongoing blurring of CPG channels during the past decade," Viamari says. "Now, channels are blurring between CPG and the non-CPG realm — specialty channels and restaurants. Increasingly, CPGs and restaurants are competing for share of stomach. Consumers are looking for quick, easy and on- the-go solutions. They can get these in QSRs, particularly drive through, and through retail stores. Notice the prevalence of prepared foods that wasn't nearly as common just a few years ago. Other areas of the store are also trying to compete with this. Think about lunch kits, for instance, or the single-serve oatmeal." Food solutions for on-the-go are in demand. Nearly a quarter of consumers (23 percent) are looking for new foods that can be eaten on- the-go, fnds IRI's 2016 New Product Survey. Protein is also appearing in more new products with 17 percent of NPP touting protein. For example, Cheerios Protein (No. 10 food and beverage NPP) ofers 11 grams of protein (including milk). Combining the two trends, on-the-go protein-containing options are available across a variety of eating occasions now, such as TruMoo Protein with 25 grams of protein per bottle. IRI's survey also found that 12 percent of consumers look for new beverages that provide protein. Power and performance also are still critical to consumers. For example, Vidal Sassoon Salonist gives salon-quality hair dimensional coverage and Maybelline Fit Me! Matte + Poreless goes beyond skin-tone matching to ft the unique texture issues of normal to oily skin. In addition, non-food innovators now are catering to large target markets. For example, Purina Cat Chow Gentle targets owners who have cats with a sensitive stomach. Gillette Venus has two NPP launches, Swirl and Embrace Sensitive, which allow women to get a close shave with only one stroke. Co-branding is stretching the value proposition across broader usage occasions as well. For example, Bounty with Dawn is a thicker Bounty that includes Dawn dishwashing soap. Another example, Speed Stick/Irish Spring Gear ofers fresh and long-lasting odor protection across the daily personal care routine. Companies also need to invest to understand the shopping basket and its product interactions to help their products stand out from the rest. This means understanding targeted demographics, life stages, etc., as well as distribution and similarity of product, which is constantly evolving based on market forces and consumer behaviors. Being cognative of these factors helps highlight high-value opportunities for diferentiation, IRI reports. In addition, a complete understanding of potential sources of volume will increase the odds of success, IRI fnds. When launching a product, marketers must understand from where and how the new product will derive its volume. For example, volume may be sourced from within the same category or other categories. With a true understanding of the competitive set and sources of volume, highly accurate estimates of market potential are achievable, IRI asserts. These insights can inform companies of what percent of dollar and volume sales can be anticipated to be incremental, versus cannibalized from another brand within the product portfolio. Marketers can then understand which marketing levers — product attributes, packaging, pricing, channels — are likely to attract new buyers versus existing consumers. PGPS FOOD GROWTH 2.2% NON-FOOD GROWTH 2.6% BEVERAGE GROWTH 2.2% 3.4% 3.0% 3.0% 2.7% 6.5% Beer/Wine/Spirits Meal Makers/Light Meals/Apps General Merchandise Air Freshners and Candles Sweet Snacks Coffee/Tea Salty Snacks Health Care 5.4% 3.7% 5.0% DOllAR SAlES % CHANGE, 2015 VS. 2014 Source: IRI 2015 New Product Pacesetters report

Articles in this issue

Archives of this issue

view archives of Progressive Grocer Product - Summer 2016