Tip Sheet/Retail Marketing April/May 2009

EYE ON THE CUSTOMER

If you want to know what customers are thinking, just ask them. That’s what the National Retail Federation is doing in a new partnership with Shop.org and ExpoTV. A series of quarterly videos is digging into understanding consumers’ opinions and behaviors around a number of topics.

The first takes a look at why Americans dine out at chain restaurants. Consistency is a big theme. For example, one woman champions the fact that she can find the same menu items she likes in a T.G.I. Friday’s in Georgia and Florida. Another video posed a question about which online offers resonated with holiday shoppers. To view the videos, go to promomagazine.com/retail.

WALMART SPIFFS UP STORE BRANDS

At a time when families need to make every penny count, Walmart has relaunched its Great Value brand in the U.S.

More than 80 new products were introduced last month, and the formulas for 750 were changed based on consumer tests comparing the flavor, aroma, texture, color and appearance of Great Value products against leading national brands.

Some of the reformulated products include breakfast cereal, cookies, yogurt, laundry detergent and paper towels. New products include thin crust pizza, ice cream and yogurt flavors, organic eggs and teriyaki beef jerky.

The new emphasis on house brands may have national brands quaking in their kitchens. In a recent study, more consumers, now faced with financial uncertainty, are buying store brands — three out of 10 — and 77% reported store brands were “as good as, if not better than, national brands,” according to GfK Customer Research North America.

Walmart redesigned the look of its brand packaging to be more consistent so consumers can easily identify it on shelves across the store. The quality of the food photography was improved to make the products more visually appealing. And in a signal of the confidence the company has in its own brands, a quality monitoring program has been put in place to continually evaluate the items, which customers are encouraged to rate at Walmart.com.

The Great Value brand was first introduced in 1993 and spans more than 100 categories.

Walmart has fared well in the current climate. U.S. stores sales were up 6.8%, to $256 billion, for the 12 months ended Jan. 31, due in large part to an increase in in-store shoppers.

Strategies/SHOPPER MARKETING

Shopper marketing can help improve sales in a tough economy. Here are a few examples:

• SELL TO THE SHOPPER, NOT THE CONSUMER

  Shoppers are thinking harder about every item they put in their baskets, so understanding behaviors and motivations is more critical than ever. Consumers use, shoppers buy.

• KNOW YOUR BRAND

  Understand how you can make your product essential. Price is a major driver of choice, but it is not the only one. Trust, quality and familiarity are important too. Consider how you can up the benefit and down the price.

• OFFER SOLUTIONS

  The final purchase decision is made in favor of the product that provides the most convenient response to shopping needs. If the need is for value, think about themes, co-locations and adjacencies that address healthy meal options for the whole family, or fun nights in that won’t break the bank.

• THE PATH TO PURCHASE

  If shoppers are combining their trips or looking for deals, what role do coupons play? Is online a channel for raising awareness? Do retailers’ loyalty programs influence planning decisions? Can radio talk to your shoppers while they drive to the store?

Source: Jonathan Dodd is the director of strategy, retail and shopper practice leader at G2. For the full article, visit promomagazine.com/retail.

DID YOU KNOW?

• Tip 1 Clorox Disinfecting Wipes were part of a Macy’s window display in March. A backdrop of spring colors was recreated to match the colors of the wipes’ new packaging.
• Tip 2 Did you know that May is National Salad Month? Marie’s Dressing does. It’s offering a $1-off coupon and recipe with the purchase of a head of American Classic iceberg lettuce.
• Tip 3 Coupon redemption channels have changed dramatically. For years, nearly 70% were redeemed in conventional supermarkets, but now mass merchandisers account for nearly 19% of redemptions, while conventional supermarkets account for less than 64%, according to Inmar.

THE MOST POPULAR COUPONS PRINTED IN FEBRUARY WERE FOR READY-TO-EAT CEREAL

Yogurt and salty snacks rounded out the top three based on the number of coupons printed by category, according to Coupons.com, a network for digital coupons. ■ The ready-to-eat cereal category also held the top spot in January. Yogurt rose to No.2 from No. 4, and salty snacks made a big jump from No. 7 to No. 3. Sweet snacks took a nosedive, falling off the February list, after ranking No. 9 in January. ■ The dollar savings of coupons printed climbed sharply to $39 million in Feb. 2009, from $21 million in Feb. 2008, Coupons.com found. ■ Rounding out the top coupon categories are: personal care (No. 4), portable snacks (No. 5), baking ingredients (No. 6), frozen vegetables (No. 7), nutritional/diet (No. 8), carbonated soft drinks (No. 9) and bathroom tissue (No. 10).

Got a retail marketing tip to share? Contact Patricia Odell at [email protected]