December 2015

TRENDING IN GROCERY

Delivering partnered marketing support services for our Clients

IntroductionAs part of our commitment to clients we constantly review market developments and innovation in order to identify and action improvements.

This Trend Report is intended to provide news of recent changes in the Grocery market, innovation in the sector and wider developments which could provide inspiration.

Grocery in the news

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Lack of an online offering is a weak spot for discounters that others can exploitAs the rise of the discounters continues, the traditional grocers are competing on price, but also trying to grow loyalty by differentiation - playing to their strengths such as extensive range choice, online capability and convenience of delivery options.

We’ve seen click & collect success in the UK, both picking up from stores and transport hubs. Jumbo in the Netherlands offers “solo pick-up points” located near highways and areas for commuter convenience.

Convenient deliveries

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‘Almost homemade’

Many people want fresh food/ingredients and to feel involved in cooking, but struggle for time in preparation. As such we’ve seen a trend to use some fresh items, along with pre-prepared elements to build an ‘almost homemade’ meal.

Retailers can highlight more strongly the convenience aspect of pre-prepared meal parts such as vegetables, soup packs, casserole bases which allow the customer to feel involved in cooking, and able to use some of their own creativity while saving time and effort.

Retailers could group items

together more strongly for

a meal solution

Loyalty cards

M&S is set to introduce a loyalty card – called Sparks – to give customers points in return for purchases across food and general merchandise. They state the loyalty card is a positive step towards enhancing their personalisation of offers.

Loyalty cards could help M&S generate more cross-sector purchases and allow them to capture the same consumer data as its supermarket rivals for future communication.

Here we take a look at some information around loyalty cards to assess their strengths and weaknesses

favour saving up points and cashing them in at a particular time, 31% use to buy something required or 30% to pay for a treat.

42%

of consumers modify when and where they shop to maximize loyalty reward points.

70%

Few respondents say they prefer cashing their loyalty or reward points at the earliest possible opportunity (20%), and only (8%) are interested in getting an instant discount at the till.

consumers say they would not be loyal to the brand if it were not for a loyalty program.

1/3

Retailers that invest in customer loyalty programs – such as Tesco, Boots and Sainsbury’s – show the highest emotional connection with consumers. 

M&S loyalty card

households (out of a possible 22m) in the UK have a Boots advantage card, 11m for Sainsbury’s, 10m for Tesco.

15m

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view carrying a lot of cards as an

inconvenience,

1/4

say they “keep forgetting” to carry their loyalty cards

with them.

22%

of consumers.dislike time limits and restrictions regarding the redemption of points

68%

Baked PotatoesBaked potatoes: Reports show they were the fastest growing evening meal choice in 2014, growing twice as fast as curry. Cheap, easy, nutritious and filling, it’s easy to see why. Frozen potatoes were more popular than fresh in 2013 but that has now reversed.

Vegetable Pasta Alternatives: The perfect accompaniment to meals for the diet conscious – Cauliflower rice, carrot mash, cucumber noodles and courgette spaghetti. Tesco have capitalised on the trend and launched some ready made versions.

#Trending products

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Gourmet snacking/treats:Confectionery is an affordable treat, and we’ve seen the boundaries being pushed more to the luxury end of the market. For example chocolate with more extravagant flavour combinations and luxury popcorn for a more indulgent treat occasion.

Caviar skincare on a budget: Aldi are expanding their Health & Beauty range with the launch (4th October) of anti-ageing skincare containing caviar properties, in premium packaging - and all for under £10. The range has already been securing good PR and looks set to be a footfall driver for Aldi.

Market inspiration

Modular unitsThese 4 sided card FSDUs are 3 separate units which are joined together with tabs and velcro to create a large impactful display.

They provide the feel of a mini shop-in-shop area and could be ideal for seasonal launches, and offer a scalable solution for different size stores.

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ryRecipe ideasThis example from Knorr uses cabinet cladding and floor vinyls to create a takeover at the meat counter, to inspire final meal solution ideas.

Chiller standoutInspiration is seen in the Chiller areas, using drop header panels and slot in mid shelf panels.

We know even small at shelf messaging such as barkers can increase sales from 20% upwardsto 200% (depending on the message and mechanic) so this could be an interesting POS type to trial.

POS Activity

These information panels take up valuable shelf space but do give

prominence to messaging more so than smaller

POS such as barkers and wobblers

Aisle toppersThese card cubes are a low cost display type and provide high impact in the key offer aisle.

The functional lip design also enables them to sit more securely on shelf. Shoppers are accustomed to looking up for messaging so this is a good use of space.

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Till area opportunitiesThe till area is a key dwell point, so is ideal to communicate future promotions and key corporate messaging - yet is often under utilised. At Aldi the area generally feels lacking in inspiration and standout. Larger POS would give a more easily visible message, such as using the till base panels more strongly.

POS Activity

Till end panels display generic messaging, along with hanging

signage and double sided window posters (which

can be seen in the packing area).

POS Activity

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Die cut for standoutThese plastic grade fins are both durable, and have good standout with the die-cut shape. Research shows shoppers navigate more quickly by images rather than text so this segmentation is useful.

These simple card trays have been given more impact with die cut elements, slotted into pre-cut locators for a layered 3D look. This allows key product messages to be brought to life simply and visually.

Die cut unit header

aids visibility of products and

adds interest

Card trays

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