Botanic Tonics’ Post

As I explore in Mintel's much anticipated Europe Supermarkets 2023 report, as many European consumers become savvier amidst the cost-of-living crisis, supermarkets offering attractive price points and communicating value effectively are likely to resonate. Indeed, between 80% (IT) - 69% (FR) of shoppers say competitive prices have kept them loyal to the grocery retailer they typically spend the most money with.   As #grocery shoppers increasingly turn to own label, it's vital for supermarkets to develop their private label offerings to ensure deeper relationships with customers. As such, between 80% (IT) - 77% (DE) of consumers say financial concerns have made them cut back on the amount of branded food/non-alcoholic drink products they buy. #Supermarkets can take inspiration from popular social media hacks and food trends to introduce innovative and engaging #retail products that appeal to consumers around own-label products. Read my full analysis 👉 https://lnkd.in/dRc6t-8k #retailing #research #marketresearch #consumerbehavior

For the foreseeable future, top retailers like these will remain strong thanks to their diversity of banners and their ability to invest in new formats. But what else is happening around the world when it comes to the edible grocery category? Get expert insights and real-world examples to understand the major trends for the global grocery channel. https://ow.ly/Vn8250Q32Bp

Healthier Biscuits shoppers are among the least satisfied with prices in their category! In our most recent survey programme, UK Grocery shoppers only had a 51% net agreement to “Great Prices” being delivered well in the category. This Ranks at 201 out of 214 categories across the store. Looking at this stat alone, this can put Healthier Biscuit suppliers in a difficult position when it comes to price negotiations. But there are other ways to satisfy and attract new shoppers. The healthier shopper mindset goes beyond price alone. In fact, shoppers in the category are significantly more likely than the average category to: - Say that innovation is important to them - Ask for products to be stocked that they know they can find elsewhere - Buy more to try new and different products So even when under pressure to cut prices, there are always ways to change the conversation and drive a category development agenda aimed at growing the category for both retailer and supplier. See my earlier post for top 10 categories for Price Satisfaction: https://lnkd.in/eCeqdH9i #categorymanagement #shopperinsights #costofliving #groceryretail

🤔 Did you know... CPG prices surged 11% in the last year, contributing an extra $760 to average household grocery expenses. With grocery inflation on the rise, it's clear that that CPG brands are facing the heat as food prices escalate, impacting consumers. 🛒 Discover how grocery brands are tackling inflation to remain competitive and attract customers, here: 👉 https://lnkd.in/dgBzKFeb #GroceryBrandChallenges #GroceryInflationInsights #ConsumerImpact #FoodPriceRise

Australian grocery - the time to innovate is now Food price rises and economic challenges mount for Aussie shoppers, but you have a golden opportunity to innovate and win if you're a retailer or brand. Shopper Intelligence ANZ research finds price satisfaction continuing to fall across all major grocery players (with the exception of Aldi). And shopper satisfaction with innovation has dropped even more sharply since COVID. Both the RBA and CBA expect food price inflation to ease moving into 2024-25 but waiting for that day to come isn't a viable strategy. You need to be across the importance of price in your category so you can fine-tune your tactics. Moreover, you need to know exactly what else signifies value to shoppers in your category. Is it innovation? Or offers? Or quality? Or something else altogether? You don't have the time or resources to try and tackle every possible angle. So instead, build a deep understanding of your shoppers, connect the dots, and innovate your approach to the challenge. Reach out for help getting under the skin of shopper perceptions in your part of the store. #groceryretail #inflation #challenge #connectthedots

Price elasticity of demand refers to how responsive consumers are to changes in the price of a product. It's a fundamental economic concept that plays a pivotal role in shaping brand strategies within the retail landscape. When a small change in price leads to a larger change in demand, the product is considered elastic. Conversely, if demand remains relatively stable despite price fluctuations, the product is inelastic. Brand Perception and Loyalty, Competitive Landscape, Promotions and Discounts, Innovation and Differentiation, Private Labels vs. National Brands are all key components of the effects that “elasticity” has on brands. If these are not all considered & monitored, they can lead to negative effects such as price wars with competitors which only erodes profit margins.  In the current economic landscape, it is becoming more evident that CPG brands are favouring the `shrinkflation` strategy over what would have always been the more conventional route of price increases. We have seen that brands are very hesitant to commit to price increases because they do not want to lose valued customers to competitors. At Middlegame we use data analysis to conduct market research in a predictive & prescriptive model. From this we gain key consumer insights. Clients uncover valuable information about how their products respond to price changes, without the fear or cost of having to make changes in store. Armed with this knowledge, they can adapt their strategies to maximize sales, maintain brand image, and create a loyal customer base. In the link below you will see any example from one our case studies available on our website where we have dealt in detail with similar issues before. If you would like to discuss in more detail, please do not hesitate to reach out. #DataAnalytics #Elasticity #Price #Shrinkflation #CPG #Growth #MakeYourNextMoveWithMiddlegame https://lnkd.in/ezNRWav2

Shrinkflation isn't always easy for consumers to catch. ☝️ Bold move for the retailer to call it out. Inflation has driven up product costs. Brands have responded by increasing prices and/or adjusting packaging. While sometimes it provided value to consumers in family or multi pack formats, a lot of it was shrinking the pack size while holding or increasing price: shrinkflation. Not a new tactic but consumer groups and others have brought into the spotlight. Carrefour France is making it easy for consumer with these signs which read: "This product has seen its volume/weight fall and the effective price charged by the supplier rise." Consumers are likely to appreciate this. Brands less so - partly for the image, partly as private label is doing the same. What do you think? #shrinkflation #CPG #retail

Carrefour puts ‘shrinkflation’ price warnings on food to shame brands. On one hand, retailers stand as champions for consumers, often negotiating hard with producers to protect customer interests. Yet, on the flip side, they occasionally highlight inflation through negative news, potentially influencing perception. Should retailers instead spotlight products that maintain their size and value? What are your thoughts? 🛍️ #RetailDebate #ConsumerInsights"

💫💫💫💫💫💫💫💫💫💫💫💫 Dr. Sylvain Charlebois has talked a lot about #shrinkflation and #skimpflation. With rising #cogs, mfgs cannot be blamed for having to increase $, downsize (shrinkflation), or replace more expensive ingredients with less expensive ingredients (skimplfation). Consumers will most likely not notice the initial change when they first buy this revamped product, but what happens when they notice it after trying the product - be it less flavourful, more airy/softer texture, less creamy, etc? Trial is one thing, but repeat is the holy grail of marketing. It takes so much more time and $$$ to generate #awareness vs maintaining #loyalty. From personal experience, I know that mfgs would have done their product research to ensure benchmarks are met, but what if consumers notice the change on the ingredient/nutrition panel? MMM usually looks at #roi based on #marketing and #sales spend, but did you know we can also show the impact of #shrinkflation and #skimpflation on ROI? Want to learn more? Please reach out to us at Marketing Attribution Partners (MAP) or Middlegame Marketing Sciences. 💫 BTW, scenario #2 had a higher ROI in this case. 😉 Todd Kirk, Jim Friedman, Pat Ryan #mmm #roi #priceelasticities #analytics #researchgeek 🤓