The current economic gloom is driving shoppers to seek greater value from their purchase decisions and question the almost unconscious decisions that they make in the few seconds that it takes to place product in their baskets.
This is shaking the structure in categories and providing opportunities for the more perceptive and determined retailers and manufacturers to exploit the fractures that are emerging.
Success will demand an up to date and incisive view of the decision process for each key shopper segment – what are the shortcuts and triggers that provoke choice? What decisions are now being made on the list as opposed to by the fixture? Has the balance between quality and price moved? How have the needs of shoppers in my category shifted?
Getting behind the story in each category and channel will open up opportunities that can be worked by either retailer or manufacturer or both – for brands and portfolios.
As retailer own label products continue to raise their game, national brands will need to focus on where and how to defend their share of wallet. Conversely retailers will need to continue to enrich the breadth and depth of their private labels, capitalising on their uniqueness to build loyalty and grow share of trade.
Insight and innovation will play critical roles in brand growth strategies for both retailers and manufacturers alike. Capturing the value that these offers will demand the maintenance of effective pricing and promotional strategies.
The story in this protracted and potentially double dip economic scenario is not only going to be about a battle between national and retailer brands but also a battle for the growth of value and share of the shoppers wallet that will drive the fortunes of both retailers and manufacturers.
The drive to open up opportunities will be the route to succeeding in both battles.
With the increasing presence of social media and online promotions, marketing budgets are seeing a transfer of funds from traditional to digital. However, it is important for these funds to be spent strategically. Analytics can now help measure the impact of online marketing efforts to ensure marketing dollars are not being wasted. Please read our article : “So, your brand’s on Facebook. Now what?”