By working together, manufacturers and retailers can attract more shoppers
- As food retail channels continue to multiply, consumer food and beverage shopping habits have become increasingly fragmented, forcing both retailers and manufacturers to find solutions to maintain sales, according to a new report from IRI Worldwide.
- What the report describes as "I need it now" grocery trips comprise about two-thirds of shopping excursions and one-third of grocery expenditures. But rarely is one store or even one channel conducive for every one of those visits to a retailer.
- IRI suggests that retailers and manufacturers form collaborative relationships to identify core highest-value customers. They can then optimize marketing campaigns by tapping into critical touchpoints along that shopping journey to promote brand equity and image.
Because it can be so expensive to attract new shoppers to a brand or retailer, IRI recommends manufacturers segment their highest-value shoppers out of current or former brand loyalists who are already familiar with the company's portfolio. This can save on costs while maximizing efforts to boost or maintain sales.
However, because the demographics of brand loyalists can differ among retail channels, manufacturers should work closely with retailers in each channel—such as conventional grocery stores, natural food stores, convenience stores and e-commerce. Together, both can tailor product selection and marketing campaigns specifically for those high-value consumers.
Identifying optimum products and price points for each retail channel is also crucial for manufacturers. Depending on the level of convenience a retail channel offers, consumers may be willing to pay more to get in and out with the products they need—especially if they are also convenient to prepare, carry or consume.