General Trends (Including trends in consumption of healthy foods to lower cholesterol
GROCERY SHOPPERS STILL FIGHTING IMPULSE BUYS While researchers have been insisting that lists are in and impulse buys are out ever since the recession started, a new study from the NPD Groups sheds new light on just how committed consumers are to those behaviors. An amazing 94% prepare a written list before leaving the house, and 72% say they never or rarely deviate from it. STUDY: SOME MOBILE USERS SHOPPING VIA MOBILE ONLY According to a Mediapost article, a new study by mobile ad network Millennial Media and comScore suggests that a small segment of mobile consumers prefer to shop via mobile rather than other ways.
Additional data from Forrester Research, however, suggests that mobile commerce is still the province of a very small fraction of cell phone users. The research firm's annual overview of consumer technology adoption found that only 2% of mobile users buy products through their phones at least monthly and 2% get mobile coupons or promotions. Slightly more -- 5% -- use their devices to research purchases. Forrester's findings were based on a survey of 30,452 adult cell phone owners. TOP 10 SNACK TRENDS REVEALED A Convenience Store News article states The Food Channel released its top 10 snack trends report, prepared in conjunction with CultureWaves, Mintel International and the International Food Futurists. AMERICANS STILL TURNING TO GENERIC BRANDS, BROWN-BAGGING TO SAVE MONEY According to a Progressive Grocer article, almost two-thirds of U.S. adults say they are purchasing more generic brands to save money. This is slightly up from February when 63 percent said they were doing this. The article indicates Americans are doing whatever it takes to cut back on spending. For some that means forgoing name brands for generics, for others it means letting their hair get a little longer before having it cut. What happens in the future with these small changes will be interesting to watch. It could be that once these numbers start going in the other direction, the economy has turned the corner. Or, as some economists are saying, the culture of saving and cutting back will remain after the economic recovery. This Harris Poll was conducted online within the United States between June 14 and 21, among 2,227 adults age 18 and over. ‘WELLNESS’ GOES MAINSTREAM According to Adweek, today the term "wellness" is very much a mainstream preoccupation, and one that's viewed more broadly as a marker for quality of life. A report released by The Hartman Group, a consultancy/research firm that has made a specialty of analyzing Americans attitudes and behaviors in this area, takes a detailed look at what wellness now means to consumers and how this affects their engagement with products and services, especially foods. "While the notion of quality of life is very broad, consumers still look to markers of quality on a category-by-category basis, as they determine whether or not the product or service is authentic and can play a role in their wellness toolkit," responds Shelley Balanko, The Hartman Group. "Consumers are becoming more attuned to authenticity cues to discern the 'real' from the 'fake.' Authenticity is communicated through compelling product/company narratives with products containing whole, real and clean ingredients created by knowledgeable people who genuinely care." Findings:
According to the article, while organic is still a quality cue, other cues have emerged as indicators of high-quality experiences/products. To be ahead of the curve, marketers need to communicate around the trend-leading quality cues, real and clean. Findings:
Vitamin D has been a focus in mainstream media in the past year. People have been hearing about it on Oprah, or at the supermarket checkout, or from a friend or colleague. The survey shows that 60 percent of respondents said they're adding more Vitamin D to their diets. Degrees Of Intensity Of course, while interest in health and wellness is widespread, it's not universally strong. Based on respondents' answers to the survey, the report classified respondents into "Core" participants, "Mid-level" participants, "Inner Mid-level" participants and "Outer Mid-level" participants in their wellness engagement. The groups differ significantly when it comes to translating intention into action. As the report puts it, "Consumers in the Periphery and Outer Mid-level tend to have more wellness aspirations than behaviors." Those in the Inner Mid-level "engage in wellness more behaviorally and less aspirationally," while the "Core consumers' participation in wellness is almost entirely behavioral." 'Marinating' in Information Does misplaced faith in their nutrition-and-wellness savvy make lots of consumers a tougher audience for the messages of brands that are serious about wellness? The article indicates consumers have been marinating in health-and-wellness information for the past decade. Unfortunately, a lot of this information has been contradictory. Unless Core, consumers are confused by all the information available, and are resorting to intuition and pragmatism to determine what products will serve their needs. Marketers need not cut through ignorance, but rather emphasize their products' differentiators and authenticity. NEW RULES OF MAMA MARKETING: OLDER, GREENER A recent Marketing Daily article notes the motherhood market is both graying and greening, according to a new report from Experian Marketing Services, and the changes are fairly sweeping. "The universe of moms of children 18 and under who are 35 plus has grown from 40.9 million to 44.9 million in just four years," Jan Jindra, Experian product manager, tells Marketing Daily. "And of moms who are 35 and under -- the group most likely to be influenced by advertising -- we are seeing big shifts in their willingness to buy green products." That's exciting, she says, because typically it has been older consumers who have been most likely to purchase green products. "While the true 'Brown' segment has stayed very consistent at about 20 percent, we've seen the number of younger moms classified as 'Potential Greens' decline from 48 percent to 25 percent, as they are moving into the 'Thinking Green' and ultimately, the 'Buying Green' categories. In the article, Jindra attributes that shift to more information available about the impact of green choices on children's health, whether it's reading about organic milk or the benefits of free-range chicken. The growth trend toward green purchases among younger moms, at this point, is outpacing the 35-and-older mothers by at least 5 percent a year. The report also indicates that the recession -- with a more intense focus on household budgets -- has helped increase women's influence in all family purchases, with 69 percent of moms saying they are the most influential person in the household when it comes to purchasing decisions. The study also puts the population of moms who work outside the home (either full- or part-time) at 62 percent, or 19.6 million moms, while 21.5 percent (or 6.8 million) identify themselves as stay-at-homers. Some 30.8 percent, or 9.7 million, are unmarried. CONSUMERS ENJOYING SIT-DOWN DINNERS AT HOME MORE OFTEN: REPORT According to a Progressive Grocer article, hectic schedules and tighter budgets have changed the way consumers cook, shop and dine. That’s the findings of a recent study according to an audience trend report from Martha Stewart Living Omnimedia, Inc. (MSLO). The study involved 1,000 respondents over the age of 18. “These findings underscore a real change in consumer behavior as the family meal enjoys a resurgence. People are hungry for delicious, healthy meals that can be shared with loved ones around the kitchen table,” said Lucinda Scala Quinn, executive editorial director of food at New York-based MSLO and host of the forthcoming cooking show “Mad Hungry with Lucinda Scala Quinn,” premiering on the Hallmark Channel in September. The article lists these key findings of the study:
WHY DO CONSUMERS VISIT CPG WEBSITES? An Adweek article states that in the consumer-packaged-goods (CPG) sector, there's no shortage of online interaction between consumers and brands these days. The pattern was quite similar for household products Personal products Beauty products MEDITERRANEAN DIET HELPS EXISTING HEART DISEASE TOO A Reuters article reports that eating a Mediterranean-style diet can help heart patients stay healthy, new research from Greece shows. According to the article, this eating pattern, which includes lots of fruits and vegetables, nuts, vegetable oils, low-fat dairy products, legumes, whole grains, and fish, has been shown to help shield people from heart disease and may also ward off certain cancers. But less information is available on whether the Mediterranean diet might be helpful for people who already have heart disease. To investigate, a research team looked at 1,000 patients who had suffered heart attacks or severe chest pain while at rest or with only light exertion, and rated each patient on a scale of 0 to 55 based on how closely their eating matched the Mediterranean ideal. Findings:
According to the article, when the researchers looked at different components of the Mediterranean diet separately, they found that vegetables and salad and nuts were the only foods that cut risk; people who ate vegetables and salad or nuts daily or weekly were at 20 percent lower risk of repeat heart problems within two years of their initial hospitalization compared to people who ate these foods monthly or less often. Based on the findings, the research team concludes that strategies to reduce mortality and illness due to heart disease should include a "diet that contains the favorable characteristics of the Mediterranean diet." HISPANIC STUDY REVEALS MARKETING-CRITICAL COMPLEXITIES Marketing Daily stated that marketing effectively to U.S. Hispanics requires an understanding of diverse psychographics, identity profiles and emerging segments that goes well beyond the language, country of origin and acculturation level targeting definitions now in standard use, according to newly released research jointly conducted by Starcom MediaVest Group and NBC Universal's Telemundo. According to the article, a year-long "Beyond Demographics" study began with an in-depth exploration of Hispanic culture and identity factors with a diverse group of Latino leaders who acted as "cultural translators." This was followed by extensive bilingual quantitative surveys and an "exhaustive" qualitative study fielded with Latinos 18 and older representing the full spectrum of the community within seven key markets (Miami, New York, San Antonio, Houston, Los Angeles and Raleigh, N.C.). The research delved into Hispanics' consumer habits and brand experience preferences, as well as cultural/identity nuances. It also identified and studied 12 core Latino identity profiles that reflect marked "fluidity" in language preference, assimilation level, retention of traditional culture, economic status, career and ambition levels, political affiliations, religious beliefs/spiritual practices, artistic endeavors, and urban versus rural biases, among other factors. At the same time, the study identified four personality types that are common to or found within all of these divergent lifestyle groups: agents for change (for themselves or the community); the "principled-led" (dogmatic, confident in their beliefs/opinions); cultural revivers (responsible for retaining/promoting the traditional culture); and the achievement bound (representing spectrums of the American dream). In the article, Esther Franklin, EVP, director of cultural identities for SMG Multicultural, a division of Starcom MediaVest Group, shared some of the key research takeaways:
Study findings:
The article notes additional findings confirming the true diversity of attitudes and lifestyles among Hispanics:
The article indicates the findings raise questions, for instance, such as whether Hispanic television networks might serve viewer segments by incorporating English or Spanglish in contextually appropriate ways, and whether there might be room for incorporating Spanglish in contextually appropriate ways in mainstream television programming with high Hispanic viewership. Meanwhile, Telemundo has already begun employing knowledge gleaned from the Latino identity research to build on its deep knowledge of its Hispanic audience. Last year, based on the initial work with the consortium of Latino leaders and the 12 profiles they helped to identify for further research, the media company decided to begin "layering" nuances into programming under development. Telemundo will now be using the full research results to add even greater nuances and relevance in its programming. FIRST COURSE OF VEGGIES MAY APPEAL TO HUNGRY PRESCHOOLERS Increasing the amount of vegetables in the first course of preschool lunch could be a smart way to get children to eat more vegetables, according to Penn State nutrition researchers. In a news release on Eurekalert, Barbara J. Rolls and Helen A. Guthrie, Chair of Nutritional Sciences, said "We have shown that you can use portion size strategically to encourage children and adults to eat more of the foods that are high in nutrients but low in calories," Rolls and her Penn State colleagues study how varying the portions of fruit and vegetable side dishes can be used to raise vegetable consumption in children and adults. The study
"We gave the children carrots first without other competing foods," explained Rolls. "When they are hungry at the start of the meal, it presents us with an opportunity to get them to eat more vegetables." According to news release, the findings challenge the conventional belief that children won't eat vegetables. It also provides parents a simple strategy to get their children eating a more healthy and nutritious diet.GENS X/Y, RICH HOUSEHOLDS HIKE PRIVATE-LABEL SALES According to a Marketing Daily article, while blue-collar and large families have traditionally been some of the biggest stalwarts of private-label products, a new report from Nielsen shows some surprising new fans: younger women and families earning $100,000 a year or more. "It wasn't until fourth-quarter 2008 that we started to see these big shifts, driven largely by affluent households," Todd Hale, SVP/ Consumer & Shopper Insights, tells Marketing Daily. "These are now among the fastest users." By March 2010, Nielsen reports, store brands had a 17.3% share of dollar sales in the U.S. and a 21.9% share of units -- up 2.1 and 1.9 points, respectively, from 2007. Also telling, he says, is the continued enthusiasm among younger shoppers, including Gen Y and Gen X. "It's the younger ones turning to store brands much more than older people." He says about half of both Millennials and Gen X shoppers say they are likely to turn to private labels, versus 41% of Baby Boomers and 35% of the Greatest Generation. Hale says both trends speak to the major inroads that private labels are continuing to make against national brands. Fueling that growth is the continued innovation from relatively upscale retailers, such as Costco and Target, whose brands are clearly aimed at more affluent shoppers. Other Nielsen data:
LOW-CAL DIETS MAY MAKE YOU GAIN WEIGHT If losing weight feels like a never-ending battle, new research may explain why: Diets that restrict calories can actually make it harder to lose weight and keep it off. Cutting calories increases production of cortisol, the stress hormone, which is linked to added belly fat, a new study finds. "For the first time in humans, we are finding out that cutting your calories increases cortisol," said lead researcher A. Janet Tomiyama, a Robert Wood Johnson Foundation Health & Society Scholar at the University of California, San Francisco. "We think this may be one reason dieters tend to have a hard time keeping weight off in the long-term," she said. People who count calories feel stressed, she said, but it's the reduction in calories that increases cortisol, which, in turn, stresses the body and leads to weight retention. "No matter how you cut calories, whether that's doing it on your own, or doing something like Nutrisystem or Jenny Craig, it doesn't matter, it's still going to increase your cortisol level," she said. At any given time, 47 percent of U.S. adults are dieting, but up to 64 percent gain back more weight than they lost, according to background information in the report published online April 6 in Psychosomatic Medicine. For the study, Tomiyama's team randomly assigned 121 women to one of four diets. One group tracked their calories, keeping them to 1,200 a day; another group ate normally but recorded the number of calories they consumed; a third group ate 1,200 calories a day, but did not have to record them, and the fourth group ate normally without any calorie-tracking. At the start and end of the three-week trial, the researchers measured each woman's cortisol and stress levels. When calories were restricted, cortisol levels increased. In addition, calorie-counting also increased the women's perceived stress, the researchers found. "The term 'dieting' brings to mind deprivation, starvation, being miserable and uncomfortable and ultimately failing in weight loss efforts," Samantha Heller, a dietitian, nutritionist and exercise physiologist who is familiar with the study, said. Burning more calories than you consume is how your body loses weight, she said. "However, severe calorie restriction, diet fads, pills and potions, detox cleanses and other quacky approaches to weight loss only contribute to people's diet failures and, in fact, may increase the likelihood of regaining even more weight than what was lost -- if any," Heller added. The best way to drop unwanted pounds is to adopt healthy lifestyle behaviors that include eating a variety of healthy foods, physical activity, patience and a game plan, she said. "Many people want to lose weight and do not know how to begin. Creating a step-by-step plan is one piece of the puzzle a lot of people forgo," Heller said. Starting a weight-loss program takes discipline, motivation and a desire to make behavioral changes and finding support can be very helpful, Heller added. Another expert, Dr. David L. Katz, director of the Prevention Research Center at Yale University School of Medicine in New Haven, Conn., said while dieting isn't easy, certain strategies can help reduce stress and achieve a healthier lifestyle. "Food itself, a reliable source of immediate gratification, may be used to relieve stress," Katz said. "When food intake is restricted, something else should replace it." In general, dieting alone is not all that useful, Katz added. "Eating well and being active for life is the way to go," he said. "By eating foods of higher overall nutritional quality, fullness can generally be achieved on fewer calories, eliminating the need for deprivation," Katz said. "In addition, physical activity can accelerate weight loss, promote health and alleviate stress in the bargain." ALZHEIMER’S RISK CUT BY A THIRD EATING VEGGIES, FISH, POULTRY More than 2,000 Manhattan residents age 65 and older have given researchers one more reason to tell us to eat more greens. Those who adhered most to diets rich in dark, leafy vegetables, poultry, fish and nuts and low in red meat, butter and fatty dairy products had a 38 percent lower risk of getting Alzheimer’s disease than those who followed that plan the least, according to a report today in the Archives of Neurology. These foods may protect blood vessels in the brain, preventing tiny strokes that may contribute to Alzheimer’s, said Nikolaos Scarmeas, an associate professor of neurology at Columbia University Medical Center in New York and author of this study. There’s no cure for Alzheimer’s, which causes memory loss that can devolve into severe cognitive decline. About 30 million people worldwide have the disease, according to London-based Alzheimer’s Disease International. “We know that these foods are definitely helpful for other conditions and diseases, and now we have this hint that they may be helpful for brain diseases,” Scarmeas said in a telephone interview. “It makes sense to follow this diet.” The study was done by observing the participants’ eating habits rather than as a controlled clinical trial that prescribed their food, so scientists can’t make recommendations based solely on this research, he said. Food Habits Documented The dietary pattern that was linked most to a lowered risk for Alzheimer’s also consisted of oil-and-vinegar salad dressing, tomatoes, cruciferous vegetables including broccoli and cauliflower, and fruit, the researchers said. Today’s study builds on previous research showing a Mediterranean diet rich in olive oil, red wine, fish and fresh produce may lower the odds of developing Alzheimer’s disease by as much as 68 percent. Scarmeas published a paper on that research, also done in northern Manhattan, in 2006. “What they have done is try to look at dietary intake as more of a whole process,” said Claudia Kawas, a professor of neurology and neurobiology and behavior at the University of California in Irvine. “That’s really important. We don’t just take vitamin E alone; there are definitely a lot of reasons to assume these things interact in various ways.” Exercise Not Studied “People with good diets are also more likely to exercise more,” which could have had an unmeasured impact on the study’s results, she said. Further studies may focus more on the mechanisms by which these foods prevent Alzheimer’s, looking at changes in blood vessel health in the brain in relation to diet, Scarmeas said. Today’s research was funded by the National Institute on Aging. “The best evidence is sort of the general things we’ve always known are useful for a healthy lifestyle: a good diet, exercise, engaging in social activities with friends and families, avoiding stress,” Kawas said. “Taking care of yourself is not a trivial thing.” Americans Still in Savings Mode: Harris Poll -- General A Progressive Grocer article states that despite clear signs that the economy is improving, U.S. consumers are still exercising caution with regard to small purchases. This is according to a study conducted by The Harris Poll, during which 2,576 adults were surveyed online between Jan. 18 and Jan. 25. Key findings from the poll include:
Harris Interactive weighted figures for age, sex, race/ethnicity, education, region and household income where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. STUDY: PEOPLE WILLINGLY SPEND MORE FOR GREEN According to a Marketing Daily article, a Burst Media study found that consumers are willing to pay more for a variety of products that are environmentally friendly and sustainable -- better known as "green." Study findings include:
The study reveals a distinct difference in the motivation to go green between those who are aspirational and those self-identified as 100% green. While aspirational greens clearly point to working for a better environment (61.3%) as the reason for incorporating green behaviors into their daily lives, only 38.1% of 100% greens point to this cause. Among respondents who are completely green, reasons include "to live a better quality of life" (36.6%), good for the community (35.4%), desire to make a difference (32.9%), and to set an example for others to follow (31.5%). Among this segment, being green identifies a lifestyle rather than personal activity. CONSUMERS DEFECT FROM ICONIC BRANDS According to an article in Adweek, loyalty deteriorates further in tough times. Consumers are defecting from iconic CPG brands as they try to save money by purchasing less-expensive store and private-label brands. In today's recession, even lifelong devotees may opt for lower-priced store brands. The article states that offering coupons and samples does not necessarily seal the deal. CPG marketers need to get more creative, and fast. They must find new ways to reward loyalists while also luring prospects to their brands. SURVEY: FEWER THAN 10% OF CONSUMERS DISLIKE GROCERY SHOPPING According to a DDI Magazine article, in today’s economy, U.S. consumers continue to feed on a back-to-basics and a “more meals at home” mentality. With consumers across all incomes looking for grocery deals, how are they shopping?
Only 9 percent of consumers purchase from end-aisle displays on most grocery trips, and three-quarters of consumers never ask for assistance in the meat or produce department, requiring retailers to get their product assortment right. “Retailers must seize the opportunity as U.S. consumers recalibrate their behaviors to respond to the tough economy with home as the new normal,” said Todd Hale, SVP, Consumer & Shopper Insights at The Nielsen Company. “Knowing consumers’ attitudes toward grocery shopping is critical for retailers to understand how to encourage shoppers to spend more each trip, thereby helping grow their business."Hale suggested that retailers can attract consumers who dislike shopping or think it is a chore by simplifying store layouts and ensuring there is adequate staffing at registers and shelf-checkout. In addition, Hale suggested stores leverage sights and smells with cooking and demonstration stations strategically throughout the store. MORE SHOPPERS SEARCH FOR COUPONS ONLINE According to a USA Today article, the unsteady economy is contributing to a rush by millions of online shoppers to a decidedly low-tech business: coupons. The number of people scouring the Internet in search of coupons that they can print and present to retailers, or codes that provide them with discounts on retail sites such as Amazon.com, is up sharply. The article states that leading coupon websites reported record traffic on Cyber Monday. RetailMeNot had 1.1 million visitors, up 57% from a year ago. CouponCabin was visited 400,000 times, up 65% from a year ago. And BradsDeals.com said traffic was up 174%, to 16,000 visitors per hour. What’s driving coupon use is not surprising: 42% of consumers intend to spend less online this Christmas than they did in 2008, says Nielsen analyst Maya Swedowsky, who surveys shopper attitudes. “Any merchant without an aggressive coupon strategy is at a clear disadvantage,” says Loren Bendele, CEO of Savings.com, which works with more than 4,000 major retailers, including Apple, Gap and Home Depot. Coupon-related purchases at his site have doubled to $136 million this year vs. the same period in 2008. As a matter of fact, one-third of all U.S. Internet users in October visited a deal-oriented site such as RetailMeNot and CoolSavings.com. The article suggests it’s not just the recession driving the growth of online coupons. Internet use continues to grow. Smartphones in particular are booming and adding a high-tech dimension to the phenomenon. Shoppers can use their phone cameras to scan a product’s bar code and instantly find and retrieve a coupon to lower the price. And social-networking sites including Facebook and Twitter are joining the ranks of destinations that offer coupons. Coupons.com, the largest Internet coupon distributor, is available on Facebook and Twitter, as well as 5,000 sites – most of them for grocers and manufacturers – and through iPhone apps.THE NEW PRAGMATIC CONSUMER: GREEN = PRACTICAL Marketers have heard a lot in the last year about the ways green consumers have scaled back to accommodate tough economic times, but a new study suggests it would be a mistake to interpret reduced sales as reduced interest, says Marketing Daily. According to research from GfK Roper Consulting, there's been little change in consumers’ commitment to the environment -- just a big shift in how they approach it, replacing idealism with hard-boiled pragmatism. “Consumer commitment to green living is very stable,” says Tim Kenyon, senior analyst for GfK's consumer trends division. “But if products are too expensive, they will find other ways to express that commitment. They may buy fewer green products, but they’ll do things like cut their energy costs or reduce consumption.” The study finds 60% of people now believe green products are too costly, a six point increase from 2006. According to the article, through the recession consumers have moved from environmental philanthropy to a more practical approach with green purchases likely to be driven by the desire to save money, be healthier, or get more value. They’re also measuring the worth of their time differently, with 28% saying they are “too busy” to do what it takes to be green. For marketers, that means it’s essential to focus on green innovations that consumers will regard as both easy and affordable. And although shoppers are expressing a greater interest in environmental purchases, consumers are more conscious of picking and choosing, and beginning to make trade-offs. WHY ‘MILLENNIALS’ ARE IMPULSE SHOPPERS According to a Brandweek article, women ages 20 to 30 represent a $54 billion marketing opportunity for packaged goods companies, but their needs and values are vastly different from the generation before them, a new report from Information Resources found.
MOMS SPEND WISELY The weak economy could use a little mothering as it struggles to recover. But new reports on the consumer behavior of American mothers suggest marketers shouldn’t count on free-and-easy spending by moms. According to Progressive Grocer, polling finds mothers are making careful spending a part of their long-term routine as they shun inessential purchases.
When it comes to spending money on themselves, the vast majority of moms will stick to buying what they need and say ‘no’ to the more luxurious temptations they used to allow themselves. CHILDREN KNOW HEALTHY FOODS A recent Prepared Foods article states that despite not always eating what is good for them, kids know healthy foods from those that are not. A new study by foodservice consultant Technomic and kid-focused brand marketing agency C3 found that nearly nine out of 10 kids surveyed say that fresh vegetables and fresh whole fruits are healthy. Other foods named healthy by kids included salad (78%), steamed vegetables (76%) and eggs (72%). At least half said that fish, cheese, chicken and peanut butter are healthy as well. SHOPPERS RESPOND DIFFERENTLY TO STORE MEDIA The way consumers respond to in-store promotional messages and media is changing, with traditional appeals losing some potency, according to the results of a new poll that surveyed 999 shoppers shortly after completing a shopping trip. The poll results were recently published on brandweek.com. In the survey, more shoppers (32 %) rated in-store signage as "very effective" than they did out-of-store advertising, including television ads, billboards and other media (27 %). Compared to older shoppers, though, Generation Y consumers (born between 1982 and 2003) were more likely to regard both indoor and outdoor advertising as "very effective." While the recession has two-thirds of consumers making shopping lists before they go to the store, shoppers are making brand decisions 60 percent of the time after entering the store. More shoppers (70 %) say they are engaged by end-of-aisle signage than by merchandising displays (62 %), department signage (58 %), shelf strips (55 %) or shelf blades (50 %). The article suggests that how well different types of messages (product information, price discounts, etc.) are received depends on the age and gender of the customer. While nearly half of the consumers said they want product-comparison information, Generation X (born between 1961 and 1981) and Gen Y place more importance on that in-store trigger. Product quality information is more important to men than women -- and more important to middle-income earners -- than folks in other income brackets. No surprise, price tops the list of important factors when making a purchase decision: 70 % of the consumers said price reduction influenced a planned purchase; 47 % said they were influenced by an everyday-low-price message. STUDY: BEING GREEN MORE VALUABLE THAN PRICE According to a recent national survey by Opinion Research Corp. (ORC), a product’s “energy footprint” influences 77 percent of consumers’ purchasing decisions, with 76 percent willing to pay more at the register for environmentally friendly products. 'Green' appeal carries over to the workplace, where the majority of U.S. employees believe organizations should take action to lead eco-friendly initiatives. Most of these green-minded workers would also be willing to support their organization’s sustainable initiatives at the cost of a smaller paycheck. "The study's findings seem to debunk a common perception that people will go green as long as it doesn’t cost them," said Aaron Franklin, project director at ORC Guideline, which is part of the global firm Opinion Research Corp., in a statement. MORE THAN HALF OF AMERICANS TRYING TO LOSE WEIGHT In a recent article, Supermarket News stated most Americans are either trying to lose (53%) or maintain their weight (25%), by changing the amount of food they eat (71%); changing the types of foods they eat (65%); engaging in physical activity (62%); changing how often they eat (44%); and counting calories (19%). This is according to the “2009 Food & Health Survey, Consumer Attitudes toward Food, Nutrition & Health, which was conducted earlier this year by the International Food Information Council (IFIC) Foundation. What hurdles do respondents have to overcome to stay on track? The findings indicate educational opportunities for supermarkets. "Consumers crave consistency and they really want us to talk in positive terms about what they should be eating, instead of what they shouldn’t eat," said Wendy Reinhardt Kapsak, director of health and nutrition for IFIC. FINANCIAL INSIGHTS: THE RETURN OF THE CONSUMER According to Progressive Grocer, the consumer is poised for an unexpected comeback. Despite declining employment, the household sector is better positioned to increase spending now than at any time in the past two years. The ultimate driver of consumer spending is household cash flow. While a great deal of emphasis is placed on employment, there are several other critically important sources of household cash flow that are often what kick-starts a consumer recovery: Purchasing Power Falling Home Costs Tax Refunds Tax Cuts Savings FOOD DOESN’T HAVE TO TAKE UP A HUGE CHUNK OF YOUR BUDGET Home-cooked meals and grocery coupon clipping have become the cost-cutting ways of the recession. Still, many of us continue to spend money we don’t need to at the store. According to article, there are ways to make food shopping a less expensive, but still healthy, trip every time. It just takes a little planning ahead, making a list, and avoiding common missteps in the grocery aisles. Here are a few tips USA Today offers consumers:
Meats/Proteins
Dairy
Coupons
Tricky Promotions
Homegrown Foods
IN AISLE 3, PEOPLE SIZE UP BRANDS IN 2.3 An April 3 Marketing Daily article on MediaPost reports most Americans spend about 2.3 seconds on in-store brand decisions and that they are more easily influenced than one might think. Atlanta-based retail consulting company, Miller Zell, recently tracked the buying triggers of 1,000 shoppers. It seems that even though it appears shoppers are careful in today’s economy (making lists and doing research), they are still doing a lot of impulse buying. Some key findings:
WHY CHILDREN CHOOSE THE FOODS THEY DO Many factors affect children’s food choices, from biological and psychological factors to sensory and social factors. When using children in sensory and consumer-based tests, it is important to understand their limitations when designing the experiments, selecting the methods of research and analyzing data. A review published by Campden & Chorleywood Food Research Association (CCFRA), titled “Issues in Children’s Food Choices: Methods for Sensory and Consumer Research - Review No. 53” highlighted many research methods that have been used with children to investigate factors that influence their preferences and eating habits. As such, research conducted indicates that improving children’s knowledge about food does not necessarily mean they will adopt a healthy lifestyle. Children are a major market for the food industry and are also the forerunners of potentially loyal adult market. Many factors have been identified that affect children’s food choices. As well as biological and psychological factors, choice is affected by the following:
Healthy Growth According to Supermarket News, a study found a strong interest among consumers in buying and eating healthy foods offers significant opportunities for the food industry to create new products to meet that demand. Consumers indicate they are willing to pay a premium for healthy foods. The Nutrition Business Journal consumer research study recommended that the industry market such products as a way for consumers to manage their health conditions: offer more private-label and prepared-food solutions in the healthy foods category, and make more locally grown and natural products available at the supermarket. More than half of consumers are buying grocery items to address one or more specific health problems or concerns. The following is additional information from the study: Favored Attributes
Source: Nutrition Business Journal consumer research study Favored Attributes
Source: Nutrition Business Journal consumer research study Favored Attributes
*Other includes sodium aluminum phosphate; gelatin, malitol; and bisphenol A in plastics. Source: Nutrition Business Journal consumer research study Consumers Would Skip Convenience Packaging to Help the Environment Research from The Nielsen Company shows that more than half of U.S. consumers would give up all forms of convenience packaging if it would benefit the environment. This includes packaging designed for easy stacking/storing at home, packaging that can be used for cooking or doubling as a re-sealable container and packaging designed for easy transport. Nielsen also found that consumers are not as willing to give up packaging designed to keep products clean and untouched by other shoppers, packaging designed to keep products in good condition, and packaging that preserves products to make them last longer and stay fresher. Also on the list of “can’t pass up” is packaging information, including food labeling, cooking and usage instructions. Additional stats found by Nielsen:
How Generations View Convenience Convenience, as a consumer value and product benefit, has been on the table for as long as people have been rushing to put dinner there. Food companies and marketers continue to focus on convenience as a consumer need and food technologists have weighed in as well. As a result, terms like “quick,” “instant,” “minute,” and “ready” have become the norm for so many products. Boomers – Kitchen Competent (born 1946-64) How they make a lasagna dinner: Generation X – Lost in Space (born 1965-77) How they make a lasagna dinner: Millennials – The Cooking Curious (born 1978-2007) How they make a lasagna dinner: Consumer Demand and Today’s Shrinking Entrée According to Technomic’s “Snack Category Report,” as time-deficient consumers look for ways to satisfy their appetites without sitting down to a full-sized meal, snacking has continued to grow. Among the findings of Technomic’s research are that nearly all adults snack between meals from time to time; snacks are perceived less by their content than by price; supermarkets have become a preferred venue for snacks; and taste and convenience are the primary drivers in choosing a snack. Of the adults surveyed for the study, 97% said they snack between meals at least occasionally, which comes as no surprise. Perhaps more interesting is how consumers define snacks, where they get snacks and what they eat as a snack. When asked the most important factor they consider when choosing a snack, consumers overwhelmingly said taste. Although this may not be surprising, it is a very important point for foodservice operators to consider. Consumers have very specific ideas of what they consider a snack. Each of these expectations—inexpensive, convenient and tasty—can be met by both limited-service and full-service restaurants. Lifestyle trends indicate that the snacking habit will only grow in the future, so it will be more important for restaurateurs to incorporate flavorful snack items on their menus, positioning them as convenient and below the $3 price ceiling. Re-inventing Entrées to Go While patrons appreciate convenient features like curbside pickup and dedicated parking, their top priorities center on being able to duplicate “at-the-restaurant” quality in the comfort of their homes. Home cooking away from home is gaining steam. Meal assembly centers resurrect the dream of home-cooked dinners for busy families who lack the time, skill or desire to prepare meals from scratch and do not want to expend time and energy in grocery shopping, cooking and cleanup. Other perceived benefits of meal assembly centers include:
Menu Inspiration from Retail The Challenge is Innovation The ethnic approach adds newness and provides an innovative experience for the customer. Many operators are meeting this demand by increasing ethnic offerings, as well as by injecting bolder flavors into dishes.
Latin Cuisine is Mainstream An article asked the question, “Latin Cuisine: No Longer Ethnic?” The answer is a resounding yes! The article notes, “Latin cuisine is no longer considered ethnic by most American consumers. Restaurants in every geographic area of the U.S. now carry Latin-inspired items as part of their regular ‘American’ menus, and new items are being added by chefs and embraced by diners.” The prevalence of Latin-inspired menu items, such as McDonald’s new Chicken Snackwrap. The article discusses the origin of many “American” favorites, such as hot dogs and pizza. Of particular note, the article states, “Mayonnaise was a classic French sauce, prepared by master chefs for gourmet diners in fine restaurants. Today, “mayo” is as American as (Dutch) apple pie. It is noted that most culinary trends begin on the tables of fine restaurants, which make their way to casual dining, through fast-casual chains and onto quick service restaurant menus. Next stop, we can find such items on “America’s supermarket shelves and in our refrigerators.”
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