CHICAGO — Consumers are better able to make informed decisions when it comes to grocery shopping, meaning new strategies are needed in order to reach them, according to a new report from SymphonyIRI Group.
“Smartphones, digital coupons, online retailers and the Internet combined with financial pressures and shifting marketplace dynamics are forever changing how consumers shop,” said Susan Viamari, editor of Times & Trends, SymphonyIRI. “If you want to reach and resonate with shoppers today, you need to do more than traditional in-store merchandising. Emerging and evolving technologies have enabled innovative marketers to begin reaching shoppers in their homes while they are researching products and making their lists, and then reinforcing their messages on the way to the store and in the store when consumers are making their final selections. Marketers that keep pace with and embrace this opportunity will achieve success, while those who fail will find it difficult—even impossible—to remain relevant and competitive.”
The report found that merchandising, defined as display, feature ad, feature and display combined and price-only actions, increased across the grocery and convenience channels, while the drug channel saw a decline in merchandising support.
The report found that marketers are investing merchandising dollars in an effort to raise the profile of categories that cater to prevalent consumer rituals, including home-based eating and drinking, and underscore the value propositions they offer across key ritual-related categories. This type of strategy is also being embraced by marketers in other high-activity level food and beverage categories, including breakfast meats and carbonated beverages, which saw volume sold with feature support increase by one point and one-half point, respectively.
In recent years, merchandising lift has changed dramatically, the report found. In fact, average lift has declined across 80 percent of categories within the U.S. multi-outlet geographies, which include Walmart, military commissaries and select club and dollar retail chains along with the traditional food, drug and mass merchandise outlet coverage. Grocery and drug channel