Each new day seems to bring more bad news about the economy. With uncertainty and fear looming, American consumers have cut back on their shopping trips and changed the way they spend their hard-earned money. For food retailers and consumer packaged goods manufacturers, these new trends do not necessarily spell doom. If they know how to address consumers’ changing needs and can successfully engage them by appealing to their desire for value, significant opportunities remain.
Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously optimistic, the changes we have seen in consumer behavior are likely to persist for the foreseeable future. Here are some ways grocery retailers and CPG manufacturers can leverage these trends:
- Stay in the game: Evaluate new formats and locations and focus on innovation and differentiation. Maintain marketing and ad spending: history has shown us that companies that continue marketing in downturns generally perform better when conditions improve.
- Communicate: Listen and talk to your consumers. Engage them – they want to be heard and looking for help.
- Articulate your value: Understand your value proposition and articulate that in ways that are meaningful to consumers. Create value and deliver on an aspiration.
- Reach consumers where they live: The renewed trend of “nesting” creates opportunities to market and position products that can comfort, enliven and enhance the home entertainment and dining experience.
- Expand store brands: Consumers have shown an increasing willingness to embrace private label products, and now is the time to explore ways to enhance PL offerings to build brand loyalty.
“Today, perhaps more than ever before, retailers and CPG companies that understand consumers, product categories and channel activity at an increasingly granular level will be in a better position to deliver new solutions and drive success,” said Todd Hale, Senior Vice President, Consumer & Shopper Insights at Nielsen.
Read the full article about insights and opportunities to grocers and CPG companies in Progressive Grocer.