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MARKETING TO THE MULTI-TASKING CONSUMER:
END-USER, SHOPPER, BUYER
EXECUTIVE OVERVIEW
JUNE
2007
IRI's Times & Trends highlights new developments and critical
events across all major CPG categories and channels, providing powerful
benchmarking data to help guide your strategic decisions. This issue
provides insights into consumer behavior across each of three major
roles: end-user, shopper and buyer and details resulting marketing and
merchandising opportunities.
This free summary is also accessible via the GMA/FPA Web site at
http://www.gmabrands.com/publications/gmairi.cfm
INTRODUCTION
Consumers are the ultimate multi-taskers. While marketers often view a
consumer narrowly as a potential purchaser of their product or shopper
of their stores, the reality is that consumers fulfill multiple roles --
end user, shopper and buyer -- all of which are interrelated.
To influence consumer behavior, marketers who focus on the total
consumer will have an edge. An edge that is sorely needed in markets in
which demand is not growing on its own, traditional methods of
increasing demand are losing their efficacy and the competition for a
piece of the pie is intensifying.
This report shares new global insights into consumer behavior across
these three roles to form the foundation of marketing and merchandising
strategies that drive increased store traffic, larger baskets and brand
and category growth.
KEY FINDINGS
End-user versus purchaser
dynamics impact optimal pricing and promotion. Multiple end-users in
a household influence purchase decisions, but the primary shopper makes
the final call; as shoppers are more price-sensitive when buying for
others versus themselves, optimal price, promotion and premium product
opportunity will vary accordingly.
A focus on broad appeal across shopping trip types may give way to
specialization as retailers seek new avenues to growth. Consumers’
trip missions (i.e., pantry stocking, fill-in, special purpose and quick
trips) heavily influence store choice; after years of broadening
assortment to meet a wider range of consumer needs, most major channels
and retailers have a large stake in at least three of the four trip
missions, but future growth may come from specialization.
Consumer shopping patterns vary by country, necessitating unique
marketing and merchandising strategies. Differences in trip mission
mix across countries illustrate the impact of retail industry structure
on existing shopping patterns and the resulting need for unique
shopper-insight-based marketing and merchandising strategies across
global markets.
How a consumer shops for a category is a critical consideration in
merchandising plans. A category’s typical trip mix (i.e., percent
purchased on pantry stocking versus quick trips, etc.) will dictate
distinct product adjacency, promotion, and advertising requirements to
grow category sales and attract and build the trip types that retailers
have targeted for growth.
The proportion of brand decisions made at -home versus in-store
varies dramatically by category. Brand predetermination, or the
extent to which brand decisions are made before shopping versus in front
of the shelf, varies widely across categories, as the influence of brand
marketing, category concentration and price sensitivity come into play.
Brand predetermination significantly impacts in-store promotion
opportunity.
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Source: IRI's Times & Trends
Reports Information Resources, Inc. (IRI) is the world’s leading
provider of enterprise market information solutions and services to the
consumer packaged goods (CPG), retail, and healthcare industries.
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