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April 25th, 2023

Food, glorious (expensive), food!

Insight ShopperMarketing
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As we settle into spring, there does seem to be a little bit of light at the end of the proverbial cost of living crisis tunnel. Fuel prices are calming down, we are less reliant on eye wateringly expensive gas and hey, the sun is shining – that makes everything feel better, right?

But the weekly food shop remains a hot (boring) topic of conversation with my husband, friends and family. I find myself whinging about it most weeks and thinking about how and where I can look to reduce our spend, but when I look at the shopping list, there’s nothing “luxurious” on there!   

I imagine that this must be similar for a lot of people right now and is unsurprisingly, seriously shaping shopping decisions, with people switching retailers, brands and seeking promotions more than ever.

Recently, I ran a poll on LinkedIn with the following results:

24% are seeking promotional products and offers more, 20% are switching to cheaper brands or own-label, 14% are doing less shopper trips all together, and a whopping 42% are shopping more at Aldi or Lidl.

It’s no surprise that Aldi has hit double-digit market share (10.1%) for the first time, following the cost of living crisis, whilst Lidl has notched up another month as the fastest-growing supermarket!

So what does this mean for consumer brands? 

SHOPPER HABITS ARE CHANGING.*

Now, more than ever, it’s vital to ensure you continue to appeal to your audience but remember, it’s not all doom and gloom. Through careful consideration and understanding of the current climate, there are opportunities to support consumers and offer up something new, different and/or unexpected. So… 

How can brands adapt and drive saliency in the current climate…? 

INVEST IN INNOVATION  

Continue to invest in innovation and NPD. When this aligns carefully to current market demands and conditions such as the need for value, sustainability or healthier alternatives, NPD can prove hugely popular and successful.  

Moreover, retailers expect brands to showcase NPD through impactful promotions or activations within loyalty schemes so ensure you have budget to drive awareness and purchase.  

OMNI CHANNEL AVAILABILITY  

Ensure you have a diversified channel offering so your products are readily available for different shopping habits, (e.g. Quick com, convenience, discounter and grocery) to help grow your customer base.  

 

SHOW SHOPPERS YOUR BRAND IS THE BEST 

Focus your message on more than price (e.g. quality, long-term value, cost-per-use) to drive purchase decisions which aren’t purely based on how cheap the product is. 

 

PUT VALUE AT THE CENTRE OF ALL COMMS TO DRIVE LOYALTY 

Many consumers will be sacrificing quality and experience for lower costs. Brands will need to put value at the heart of their shopper comms to drive sales. 

 

OFFER INSPIRATION 

Drive usage and occasion through inspiration, offering new and different ways to consume your products, e.g. new recipes, hacks, top tips.    

GIFT WITH PURCHASE TO PLAY INTO TREAT ECONOMY

As costs rise, consumers shift their attention to small luxuries instead of splurging on higher cost items. Gift with purchase promotions will play right into this treat economy.

 

WIN OVER SHOPPERS WITH COMPETITIONS & PROMOS

Competitions or price promotions will help those looking for added value from their weekly shop. Bundle deals on everyday essentials or offer cash/voucher prizes.

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