Should retailers leave demographics behind?

Reuters reports that German consumer products maker Henkel has found that shoppers who plan their trips, scanning circulars and clipping coupons, actually spend more money than others, making them a prime target for retailers and manufacturers.

These shoppers accounted for 31 percent of spending on packaged goods in 2009, even though they only make up 26 percent of U.S. households.

Despite their bargain-hunting ways, the group -- which Henkel dubbed "Shoptimizers" -- on average spent more than $7,100 last year, buying more packaged goods while cutting back on some fresh items, Henkel said.

Consumers who do a little planning before they shop and look for deals once they are in stores, a group Henkel calls "Mainstreeters," spent close to $6,300 on average, up $81.

Carefree shoppers, who never use coupons, spent just over $5,600 in such outlets last year, up $246, Henkel found.

Despite their distinct shopping patterns, the three groups generate profit margins for retailers that are nearly identical, he said. They are also split evenly in age, income and household size.

Learn more about the survey done by Henkel ACNielsen and Information Resources Inc by visiting the original article.

Retailers should leave demographics behind

After you've reviewed the data, what do you think?

Follow Shopper 360 on Twitter!

In addition to this blog, the Shopper 360 team is engaging and learning about current shopper trends from Twitter. We encourage you to follow us @Shopper360. Tag all of your tweets with #Shopper360. We'll follow you back and we look forward to you joining the conversation!

Engaging Shoppers with Every Step, Real Time

Stop & Shop/Giant has set out to improve its customer loyalty by creating a uniquely personal and relevant shopping experience. In this session, you will learn how a customer-facing technology was leveraged to create operational enhancements and reach customers at their point of purchase. This case study showcases how real-time in-store behavior and past purchase history can be translated to deliver highly targeted promotional messaging and exclusive savings to customers while they shop. You'll learn how participating brands are experiencing saldes life and how the retailer is benefiting by giving their customer a rewarding shopping experience.

Stephen Vowles, Senior Vice President of Marketing, Stop & Shop will discuss:

• How new audience targeting tactics are revolutionizing the way retailers and brands can reach specific customers
• How Stop & Shop is driving larger baskets and increased frequency with targetd media and self-service technology
• Pitfalls to avoid when selecting & implementing customer-facing technology solutions
• How brands can effectively and measurably leverage digital in-store marketing

"Engaging Shoppers with Every Step, Real Time" Monday, July 12 at 9am

Shopper Insights in Action 2010

Brochure Download

Register Today

Study: Trying Too Hard to Track Spending Counterproductive for Grocery Shoppers

A recent report by Koert van Ittersum, assistant professor of marketing, van Ittersum sought to learn whether, when, and how grocery shoppers keep track of their in-store spending. The report found that most shoppers do overspend because they rely to heavily on calculating costs in their heads. van Ittersum said, "When shopping in a grocery store, the chaotic, information-rich environment can tax a shopper's ability to mentally calculate the total basket price. Executing many arithmetic operations with multi-digit pricing is demanding. Our findings show that shoppers tend to be more accurate when they employ short-cut strategies in their calculations."

We encourage you to read van Ittersum's report. How can you use this information in your efforts to improve the in-store experience for the shopper?

Study: Trying Too Hard to Track Spending Counterproductive for Grocery Shoppers

How to reach the Penny Pinchers

Zippy Cart recently posted an article about how to reach the customers that aren't really looking to listen: the steadfast fruglists and the involuntary penny pinchers. Both of these shopper segments are looking to save money, and may therefore be not very receptive to advertising. It's key to tap into their core motivations to overcome their frugalness. The article suggests reaching them where they are looking, in coupon ads and deal seeking newsletters. The article also looks at other ways you can reach them as well as the increase in mobile shopping. Read the full article here.

The Shopper Insights in Action 2010 Full Program is Now Available

Download the Brochure Now to preview the 70+ speakers and over 50 sessions that make this the most comprehensive agenda on why we buy and how to take action.

The top rated shopper-focused event in the world is back with ALL NEW CONTENT and KEYNOTES to help the retail and CPG industry advance and ultimately sell more.

Collaborate with the best in your industry as BRANDS, RETAILERS and their PARTNERS come together to analyze the changing shopper mindset, translate insights into opportunities and explore emerging trends influencing the retail world.

The focus for 2010:
Historically, it was the SHOPPER in the RETAIL environment. Today, it's the RETAILER in the SHOPPER'S environment. Join your industry this July to make sense of the new shopping economy.

ALL NEW KEYNOTES
OFFER A COMPREHENSIVE EXPLORATION INTO THE SHOPPER PYSCHE

• DAN ARIELY, Behavioral Economist & Best-selling Author of Predictably Irrational & Living Irrationally
• LEE EISENBERG, Author of Shoptimism
• KIT YARROW, PH.D., Consumer Psychologist, Author, Gen BuY: How Tweens, Teens and Twenty-Somethings Are Revolutionizing Retail
• DAVID BELL, Professor of Marketing, Wharton School, University of Pennsylvania
• MARK CHANGIZI, Professor of Cognitive Science, Rensselaer Polytechnic Institute, Author, The Vision Revolution

Register by March 12th to lock in our $500 early bird discount!


Sponsorship & Exhibition Opportunities Available
Please contact Jon Saxe at jsaxe@iirusa.com or call 646.895.7467

Wal-Mart Announces Private Label Eggs to be Cage-Free

In a move to better serve their customers by offering humane products, Wal-Mart has announced that their private label "Great Value" will only offer cage-free eggs.

"By ensuring that all of its private label eggs are cage-free, Wal-Mart is helping the egg industry move away from battery cage confinement of laying hens," said Paul Shapiro, senior director of The HSUS' factory farming campaign. "Wal-Mart's move is a positive one, and we hope its competitors follow suit."

Many supermarket chains have taken steps to increase their sales of cage-free eggs, including Harris Teeter, Winn-Dixie, Trader Joe's, Whole Foods and Safeway. National restaurant chains—including Burger King, Wendy's, Denny's, Red Robin, Quiznos, Sonic, Hardee's and Carl's Jr.—have also started using cage-free eggs.

Learn more: Wal-Mart: Private Label Eggs All Cage-Free

Walgreens to Buy Duane Reade

New Yorkers no longer have their own drug store chain thanks to Walgreen's recent decision to purchase Duane Reade. The Wall Street Journal reports that the deal, an all-cash transaction that includes the assumption of $480 million in debt, is Walgreen's largest retail acquisition ever. It will tack on 257 stores in the New York area, the biggest drugstore market in the U.S. The Deerfield, Ill.-based chain had been slow to build a presence in New York, with just 13 stores in Manhattan and 70 in the broader metropolitan area.

What do you think of the acquisition by Walgreens? What will become of Duane Reade's newly minted private label line?

Using Ethnography as a Tool for Identifying Opportunities and Building Customer-Relevant Strategies at the Intersection of Lifestyle and Life Stage

We'd like to highlight a presentation by Ruth Sando, Cultural Anthropologist, BARBARA PERRY ASSOCIATES entitled, "Using Ethnography as a Tool for Identifying Opportunities and Building Customer-Relevant Strategies at the Intersection of Lifestyle and Life Stage," at The Life Stage Marketing Summit 2010

The Life Stage Marketing Summit 2010

May 10-12, 2010

Hotel Sax

Chicago

Brochure Download
Register Today and SAVE $300!

Staying current with the lives and experiences of your customers in various life stages is an on-going challenge for brands. Although we have more and more data, to really connect we need to understand that what is truly important in defining the lifestyles of your customers. How can we identify those “weak signals” that are leading indicators of true attitudinal and behavioral trends?

In this experiential workshop, you will learn by doing and having fun. We will begin at the hotel with a briefing that will cover the basic “How To’s” of ethnographic immersion and observation Then we’ll receive our top-secret team missions: small group assignments (similar to a scavenger hunt) that will send us out to explore our environment for lifestage and lifestyle insights. Next, we’ll split into teams for an afternoon of discovery and exploration in Chicago. Finally, at the end of the day, we’ll return to the hotel for an hour debriefing.

During the day, we will focus on the three critical stages of team ethnography:
1. The Get Ready Work
2. The Fieldwork Experience
3. Making Meaning of immersion data– the So What? And Now What?

We will end by exploring both what we learned and how to facilitate a team’s ability to build actionable insights from ethnographic data.
You will learn:
• Basic theory and principles of ethnographic immersion – what you’re doing and why
• How immersion and observational research fit into the bigger picture of ethnographic tools
• The skills of in-context observation, including slowing down, looking deeply and expanding perceptions
• How to use this approach, with a team, to generate new insights and creative

Private Label Stocks Soar

Seeking Alpha reports that private label food stocks are soaring in this market. Rick Shea writes, Treehouse Foods (THS), Ralcorp and AIPC are the best pure plays in the food manufacturing sector that focus on private label manufacturing. Treehouse continues to add companies and categories (recent Sturm Foods purchase) and is positioned as the top private label focused company. Ralcorp acquired Kraft Foods (KFT) Post cereal division and so far has struggled to deliver positive results.

What sort of new measures will CPGs implement to combat this out-performance by private label manufacturers? We'd like to hear your thoughts.

Meijers Scales Down with Focus on Groceries

Dana Hunsinger of The Indianapolis Star reports that the Meijer, the Midwest mega retailer is set to open smaller stores throughout the Midwest that will focus on groceries.

"We're definitely looking at markets like Columbus, Detroit and Indianapolis. And down the road, if there is an opportunity, we could definitely go into Indianapolis," said Frank Guglielmi, Meijer spokesman. "It lets us put stores where we never would have been able to put one before."

The new concept is about half the size of traditional Meijer stores, at about 100,000 square feet.

The traditional stores carry a fairly steady mix of merchandise from store to store. The new concept will try to find a niche and sell groceries that reflect the ethnicity and demographics of the surrounding neighborhoods.

Learn more: Meijer's new approach focuses on groceries, niches

What do you think of this move by Meijer? Will we see the "friendly acres" diminish in favor of smaller stores? What are the major benefits of this move?

Customers and the impact of food labels

Australian Food News reports that an study has recently concluded on the influence food labels have on shoppers in Europe. The study, which questioned 17,300 people from various European countries, both in supermarkets and at home, found that only 18% of Europeans regularly look for nutrition information on food packaging in-store.

A new finding was that people spend an average of 30 seconds selecting a product. By comparison to previous studies, this is substantially more time than previously observed. The UK was lowest at 25 seconds per product, with the highest average time clocked at 47 seconds.

How does this compare with shopper behavior in America?

Learn more: European study highlights impact of food labels

The Life Stage Marketing Summit Full Program and Early Bird Savings!

Understand and maximize your customer lifetime value by knowing your customers better than anyone else, anticipating their needs and satisfying them first.

Knowing your customers inside and out is the key to innovation. These days, we're operating in a transparent "real time" world with abundant choice and increasing customer power. Identifying and focusing on core segments is critical. Understanding needs and behaviors and translating those insights into new business opportunities becomes the real foundation for achieving growth.
Are you ready to put 2009 to rest and focus on real growth in 2010?

Attend The Life Stage Marketing Summit
Exploring the intersection of life style and life stage marketing strategies allows you to deeply understand your customer segments beyond demographics. The key to achieving customer relevance means knowing your best customers even better so you can deliver on their current and future needs while identifying new high priority segments for new growth.

Event: http://bit.ly/509XjY
Brochure: http://bit.ly/6a0Lq0
Register Today: http://bit.ly/5zOvfP


Why Life Stage Marketing 2010 is a must attend:
· Learn from the best... Practitioner speakers share real life actionable case studies on Innovation, Trends, Segmentation, Market Research and Marketing and Loyalty-
· The IIR Motto: NO COMMERCIALISM from the platform
· Featured topics include: Behavioral Economics, Applying Key Information into Actionable Strategies, Anticipating the Future, Leveraging WOM, The Power of Experience Design, Driving Brand Relevance and Growth across Multiple Categories...
· Segments covered include: Millenials (Echo Boomers), Boomers, Gen X, Hispanic and Latin Americans
· NEW 360 Degree Trends Panel and Multiple Interactive Real Time Exercises

Delve Deeper...
· ALL Day Symposia Dedicated to Social Media & Technology

· ALL DAY Ethnographic Workshop: Using Ethnography as a Tool for Identifying Opportunities and Building Customer-Relevant Strategies at the Intersection of Lifestyle and Life Stage

· NOW CO-LOCATED with The Youth & Family Marketing Mega Event! The destination for those looking to deeply connect with all segments of the contemporary family to drive innovation, make smarter decisions and ultimately create what's next first, before your competitors.

Green Fashion Goes Mainstream

This recent post on retailwire discusses how many years ago consumers did not believe that eco-friendly fashions were all that stylish, but to the contrary in today's age the opposite is actually true. More and more shoppers are wearing green and clothes made with organic fibers.

Zem Joaquin, founder of ecofabulous.com, mentions "Four years ago, there was very little in the mainstream. Now there are clothing stores devoted solely to environmentally conscious designs like Eco Citizen ... and eco-couture being sold at Barneys New York. Pact showed a beautiful example of organic underwear on the runway. It used to be hard to find, and when you did, it was saggy and unattractive."

Fashion designers are now re-thinking what materials to use in their clothes now that consumers have the environment in mind.

Kimberly-Clark CEO: People Want Value, Innovation

ABC News and the Associated Press report that Kimberly-Clark Corp. CEO Thomas Falk did things most executives ran from during the recession: He plunged money into innovation and marketing, and raised prices. But just as Falk went against traditional means of running a large corporation during a recession, ABC reports that Falk's paid off.

Part of Falk's success lies in how he conveyed value to shoppers:

Q. You said that a lot of consumers are focusing on value right now. How do you convey the message of value to them?

A. I was in the Philippines not long ago, where we do some advertising to consumers on how a Huggies diaper would last 10 hours. A mom who was buying a very low-tier diaper in a market like that would know that a private-label or a low-tier brand wouldn’t last 10 hours. You communicate it that way as a perception of value.

If you look at marketers around the world across all categories, you see more marketing dialing up value messaging. We are all trying to communicate to the consumer that we are a good value relative to their other alternatives.

For more of Falk's interview, please click here.

Designers Working with Fur for a Righteous Cause

Fashion fur has not been big in the US for a several reasons, but with the nutria (a large rodent) quickly decimating the natural habitat of Louisiana's and Maryland's Eastern shore this might be a reason for fur to take off in the running.

This article in retailwire highlights how the quick reproducing species has put a strain in the marshlands of these states and how Cree McCree, founder of an organization called Righteous Fur, recently ran a show putting up products that were made from nutria on display. Will we see other designers using nutria for their products and how will consumers react to this once they see the big picture?

Shopper Marketing is a Supply Chain Partner's Next Marketing Frontier

Industry Week reports that seventy-three percent of consumer product goods manufacturers and 86% of retailers rank shopper marketing as the number one activity that delivers meaningful return on investment.

"Shopper marketing is the hottest issue in retail and consumer package goods," said UT Shopper Market Forum organizer Dan Flint, UT's Proffitt's Inc. Associate Professor of Marketing.

Learn more: Shopper Marketing is a Supply Chain Partner's Next Marketing Frontier

Mark your calendars:

Shopper Insights in Action
July 11-14, 2010 • Marriott Chicago Magnificent Mile • Chicago

Are you engaging your Customers as Partners in the Package Design Process?

What motivates purchase behavior? From the first moment of truth through engagement towards loyalty, creating a brand relationship begins and often ends with the package itself. In a world of abundance, get the message right.

PROOF: Market Research for Packaging Design is back!

April 14-15, 2010
Trump International Hotel & Tower
Chicago, IL

Event: http://bit.ly/505okF
Brochure: http://bit.ly/82zay9
Registration: http://bit.ly/8IocS2

This April, join the leading minds in brand, research and design and arm yourself with the strategies, insights and tools you need to "lead the way" and stay ahead of the competition in 2010.

What's New for PROOF in 2010:

Keynote Jim Stengel, Retired Global Marketing Officer, Procter & Gamble shares his experience with Applied Leadership, Amazing Results

Featured session by Coca-Cola, "Busting the Burst" Optimizing On-Pack Promotional Messaging Brand"

Industry leading corporate practitioners sharing case study presentations, including: Kimberly-Clark, Sherwin Williams, HP, DuPont and more.
Presentation of the 1st Annual Packaging Awards brought to you by The Dieline and FUSE

More interactive networking sessions than ever before enabling you to meet your fellow PROOF attendees. Plus shared cocktail receptions with FUSE allows you to network with hundreds of design and branding experts and visionaries.

Join us!

1-800Flowers reminds users of their abandoned carts

In an article recently published at Internet Retailer, they share how 1-800 Flowers successfully reminds shoppers of unpurchased items in their online carts. The open rate of the email reminding them that there are still unpurchased items in their boxes is 5 times higher than regular marketing emails. On the downside, the opt-out rate is significantly higher than on regular marketing emails. To find out more about 1800Flower's online customers, read the article here.

A&P to Adjust Pricing Strategy

The Wall Street Journal reports that Great Atlantic & Pacific Tea Co., which owns A&P and Pathmark grocery chain is working with shareowner Yucaipa Cos. to develop new marketing strategies to lure tight-fisted consumers. Christian Haub, the executive chairman and interim chief executive said that A&P is discontinuing several marketing programs and reinvesting those funds into lowering shelf prices on everyday foods. New advertisements also will focus on those lower-priced shelf items.

Sales at the supermarkets have fallen by a reported %5.8 percent as the grocery chain has not had success and connecting with customers.

Learn more: Supermarket chain A&P to shift its pricing strategy

Key Growth Drivers as Identified by Tesco CEO

Chief Executive of Tesco PLC, Sir Terry Leahy, recently identified six drivers for growth coming out of a recession. With global economies still in the picture this will be crucial in reaching consumers. Here are the drivers as posted by this article in retailwire. Enjoy!

Trust: Consumers will begin to shift to organizations that they trust during difficult times. Companies that show consumers that they are genuinely interested in doing better things will gain long term loyalty.

Information: Businesses must become transparent and hold nothing back from consumers.

Health: Products that focus on fitness, cosmetics, and fashion fulfill the need that consumers have of looking great and feeling great forever.

Convenience: Convenience stores like 7-11 and Tesco have thrived with more and more people having time constraints on a daily basis.

Simplicity: Consumers do not need 1,000 products but answers and solutions to the problems in their lives.

Climate change: Businesses must be able to adapt to changing times and different consumer needs as time goes by.

Sam's Club to Sell Private Label Vodka

The popular bulk retailer, Sam's Club will soon debut its own brand of premium vodka. The New York Times reports that the wholesaler will sell their vodka to approximately one third of its stores. The vodka, named Rue 33 is coming to the shelves, to join private-label wines and beers that the chain already sells.

Learn more: Sam’s Club Adds a Private-Label Vodka

What do you think about the move by Sam's Club to add more spirits to its private label offerings? Will other wholesalers do the same?

Warner Brothers and Netflix partner to delay DVD releases

According to The Street, Netflix and Warner Brothers have come to an agreement about the release of DVDs. Netflix will now release new releases 28 days after they've hit store shelves.

According to Ted Sarandos, Netflix's chief content officer, "We're able to help an important business partner meet its objectives while improving service levels for our members by acquiring substantially more units than in the past after a relatively short sell-through window. At the same time, we're able to extend the range of choices available to be streamed to our members."

How do you think the Netflix customers react to this? While it will help boost in-store selling of DVDs, will Netflix customer retaliate and drop the service? How many other major motion picture companies will follow through with the same thing?

Target Bulk Promotion Competes with Warehouse Clubs

According to this article in retailwire, Target will be giving consumers all the benefits of bulk deals found at stores like Costco and BJ's without the need for any membership fees that these warehouse clubs usually charge.

"The Great Save" event will run from January 3rd through February 21st and it will give consumers a treasure hunt experience on designer brands, and a way to stock up post holiday season. There will be "Great Save" location inside roughly 1,000 participating Target stores across the U.S. It will be interesting to see what other huge stores will follow suit.

Shopper outlook for 2010

With food sections of stores outperforming all others, forecasters at Nielson believe that consumers are going to continue to cook at home instead of eating out. Many other stores are also seeing benefits of frugal Americans: super centers, club stores and dollar stores.

Other highlights for the 2010 consumer forecast:

- Restraint remains the new normal
- Value is a top priority
- Store brand growth continues

- Grocery consolidation intensifies

- Assortment wars escalate.

Read the full article about Neilson's forecast for shoppers here.