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What really ends up in the shopping basket 

25/03/2017

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One of the big questions brand and retail marketers want to know is…“What really ends up in the basket

and why did they choose that one?”

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According to AC Neilson, every shopping excursion comes down

to a question of needs versus wants.

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Needs vs. Wants.

In Australia, 20% of grocery shoppers do not use a shopping list. Of those that do, 88% deviate from this list when making purchases. Why? Needs vs. Wants!

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The BIG opportunity for the savvy Brand marketer! 

When it comes to in-store decision making 96% of consumers buy purchases that were not intended with the average shopper spending at least 12% more than intended on trips to the supermarket.

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What gets planned when it comes to the supermarket shop?Items that fulfill basic living needs and require the least amount of shopper engagement when making the decision.

• milk, • eggs, • produce, • pet food • medications  

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2015 American Pantry StudyTracking consumer shopping patterns

“Brand loyalty has been decreasing in three out of four packaged goods categories since 2011” 

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Falling Brand loyalty creates opportunity

As brand loyalty falls, at-the-shelf decisions are on the rise. This is creating a massive opportunity for Brand marketers to influence more unplanned purchases while consumers are in the store.

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Nielsen 2016

 “Items that don’t make shoppers’ lists are typically non-essentials, most often those in the non-food category. In fact, nearly all non-food categories that show significant capacity for reminder purchases” .

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Consumers make decisions based upon what they want!

Research indicates that indulgent and infrequent purchases have higher levels of consumer engagement. This translates as consumers making these decisions BASED ON WHAT THEY WANT!!!

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Why packaging design delivers competitive advantage at the shelf:• Purchases where the consumer has

greater freedom of choice, causes them to spend more time considering their options in the aisles.

• This is the major reason why savvy Brand marketers are turning to product packaging design to deliver competitive advantage at the shelf.

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The “I Want” market is wide open to those

Brand marketers who can see their way to using

the retail shelf as a bill board for influencing

the consumer to put them into the shopping

trolley.

“Impulse buying isn’t limited to the non-food areas. Items like gum, breakfast bars and popcorn have as much likelihood to get picked up by browsing shoppers as deodorants and certain lotions”  (Neilson 2016)

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The following attention grabbers work best as “purchase influencers” in store.

• Discounted prices are the number one influence in unplanned decisions

• Free samples • Special offer announcements made over

the intercom• Mobile phone coupons and promotions

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Not all on-the-spot purchases are motivated by price.

Many impulse buys are triggered by visual cues that help people remember the products that they had originally forgotten to add to their lists.

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Make my life easier!Over half of customers were moved to make a purchase based on the desire to try something new, whether it was from a brand that they knew and trusted, or it would simply make their lives easier.

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The BIG Question for Brand Marketers

“How can I use the current on-shelf real-estate (including the packs

already on the shelf) to deliver more sales?”