How well do you know your category shopper?
We’ve been speaking to retail buyers in 2023 and there’s one common theme.
Value – identifying ways to offer shoppers value for money during the cost-of-living crisis.
Value for money in this context isn’t always about ‘cheaper’. It’s what else a brand can bring to shoppers this year when times are tough. Discovering ways to meet changing consumer needs, for example a premium brand providing an alternative to Eating Out.
“The agenda at the heart of the business right now is about Value for our customers. It’s about making sure that no matter the tier, we’re offering customers value for money.”
Sainsbury’s buyer, 2023
Changing category behaviour
Source: Kantar Worldpanel, Dec 2022
It’s no real surprise that Own Label sales are growing strongly as shoppers look to reign back their spend.
According to Kantar, trading down to Own Label is happening in 80% of categories in GB.
What this means for brands is that, on the whole, they are probably losing shoppers to retailer Own Label. It’s also therefore highly likely that the shopper profile of a brand will have changed over the past 12 months too.
Recently, we’re finding that more and more manufacturers have an out-dated view of who their consumer is…what’s their age and income profile, how are they buying in our category, how do they perceive our brand now? Getting your assumptions wrong can lead to wasted marketing and NPD but can also threaten your space on the shelf.
Do you know your category shopper?
The motivations and attitudes shoppers have within your category will more than likely have changed. They are making different decisions, making compromises and this will have an impact on all Food & Drink suppliers.
“Brands really need to consider what they’re bringing to the category versus Own Label. Why are shoppers changing their behaviour and what impact is the Cost of Living having on their attitudes to a category. If there’s no narrative, it’s hard for a buyer to get behind the product/range.”
Asda buyer, 2023
TRKR view….
Understand the context of the category shopper first, to then position your brand & product range:
The dynamic between brands and Own Label: Why are some shoppers still purchasing branded products, or have they switched to retailer Own Label in 2022/23. How have the attitudes and behaviour of shoppers changed due to the Cost of Living? What are their perceptions of Own Label compared to brands.
Brand positioning: Is the positioning of your brand aligned to the needs and motivations of the category shopper? How aware are shoppers of your brand and how do they perceive you compared to your rivals?
By understanding their category shopper in 2023, Food & Drink suppliers should be better placed to make key decisions about their core range and bring additional value to retail buyer conversations.
TRKR Category Snapshot
Quick and affordable insight. 10 questions of your choice to consumers in your category, gathering insight on topics such as:
Know your consumers: demographics, what else they buy, when they buy you, and why
Key funnel metrics for your category: Awareness, Bought and Bought most often
Cost of Living - how this has impacted on your category shoppers
Motivations for choosing brands and Own Label
Bespoke marketing recall, A/B testing or consumer reaction to your visual
For more detail click here