Author name: Aaron Richman

Aaron Richman is a Toronto-based shopper marketing consultant passionate about motivating shoppers to buy your brand!

Omnichannel marketing to older generations

Omnichannel Marketing and Targeting Older Generations in 2023

Omnichannel marketing to older generations
Omnichannel marketing to older audiences rare

FACT: 95% of the consumer package goods (CPG) omnichannel marketing briefs I read have brands wanting to target Gen Z and/or Millennial audiences. But, isn’t it time for CPG brands to start shifting some advertising dollars to reach older Gen X and Baby Boomer audiences?

Consider this. By 2028, the older 60+ age group will account for more than 1/3 of overall growth in grocery spending!

ONE-THIRD!

According to a recent article by Mercatus Technologies, demographic shifts and the expansion of households in the USA are contributing factors.

For example, in the USA, over the next 5 years: No age demographic will expand faster in terms of population than age 60+. Also, household composition is changing with birthrates in decline leading to a significant increase in single person households. Plus, today the majority of wealth in the USA is held by age 55+ today (70% of the $111.04 trillion of U.S. net worth!).

So older/richer and smaller = sales growth in the age 60+ group.

Yet CPGs continue to spend omnichannel marketing budgets to target, for the most part, younger generations.

Why?

Is there a bias against targeting older demographics with advertising (besides life insurance, pharmaceuticals and adult diapers)?

In a recent article written for The Message, advertising consultant @Eric Blais surmised: “ageism can also be reflected in the advertisements themselves, with many campaigns featuring only young and attractive models or actors. This can send a negative message to older individuals, making them feel invisible or irrelevant”.

OR

Is it because the younger audiences offer brands an opportunity to build long term loyalty with a group of consumers whose buying power will increase. Plus, with Ecommerce booming, Gen Z and Millennials are digital natives making them easier to reach through online advertising, social media, and mobile apps.

Both are plausible explanations.

If you have an opinion, I would love to hear it.

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Older marketing agency workers can help train future leaders

Ageism Running Rampant in Marketing Agencies

Older marketing agency workers can help train future leaders
Ageism does not allow old and young marketing agency employees to benefit from working together.

As reported in a Globe & Mail newspaper story in  the Institute of Canadian Agencies (ICA) Talent Census Report showed only 11% of the marketing agency workforce was older than age 51!  Crazy when you compare the broader labour market in Canada where persons age 51+ account for 35.42% of the workforce. In fact, 70% of the agency workforce is under age 40!

Now that I am of a certain vintage, I have started to explore this topic.  Admittedly, I am one of the lucky ones whose clients appreciate the knowledge and experienceI bring to them every day.  However, all too frequently of late I am hearing from industry friends, who I consider in the prime of their careers, being phased out of roles for a variety of reasons all disguised as one thing – ageism!

So why are there so few elder states-people in the industry? The two most common theories are first, are older workers are less creative and, second, older workers more expensive. Well let me be the “old guy” to dispel these myths.

CREATIVITY: The perception older workers are less creative than younger counterparts tend to be based on the belief younger people are more in touch with current trends and pop culture, making them better suited for marketing work. However, I will argue older workers are just as creative as younger ones as they often bring diverse perspectives and life experiences to the table, which can be invaluable in creating effective campaigns.

EXPENSE: The perception older workers are more expensive than younger ones is based on the belief that we have more experience and, thus, are more likely to demand higher salaries. While we may command higher salaries, the reality is older workers are more cost-effective than younger workers as we are more productive, less likely to require extensive training and more likely to stay in jobs longer, reducing the costs associated with employee turnover.

The consequences of ageism in marketing agencies in Canada are significant. For example, discrimination against older employees can lead to a loss of experienced and skilled professionals, perpetuate negative stereotypes about aging, and negatively impact the mental and physical health of older employees. To combat ageism, marketing agencies must create a culture of inclusion and diversity, value the perspectives and experiences of older employees, and provide opportunities for growth and development for employees of all ages. By doing so, agencies can create a more diverse and innovative workforce, better serve their clients, and ultimately succeed in a competitive marketplace.

If you are age 50+ and working for a marketing agency I would love to hear your thoughts on the subject of ageism.

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2023 Omnichannel Marketing Trends

Top 5 omnichannel marketing trends for 2023

Omnichannel marketing is evolving so here are my predictions on what the top 5 trends for 2023 will be within CPG that will dominate the grocery landscape.

1. Brands will increase focus on online grocery shopping

While in-store will remain the #1 channel for grocery shopping, many brands are starting to invest more dollars to build an online ecosystem to ensure they reach shoppers to drive pre-shop consideration and online sales conversion.

2. CPGs will expand emphasis on personalization to improve conversion rates

A recent research study from McKinsey & Company shows 71% of consumers expect personalization and 76% will switch brands if they don’t like their shopping experience. As a result, many brands are using customer data and insights to create targeted and personalized experiences and offers direct to consumer or in partnership with key grocery retailers.

3. Retailer Media Networks will continue to grow in popularity

In my recent blog “Omnichannel Marketing & the Growth of Retail Media Networks”, I wrote about how retailer media networks are gaining in popularity.  How popular?  According to a trends report from the Path to Purchase Institute (P2PI) a survey of 166 marketing executives, shows retailer media networks as the number one most important omnichannel tactic in 2022. This trend is only going top continue this year.

4. Shoppers will increasingly demand brands be more sustainable.

Sustainability is becoming a key factor in consumer purchasing decisions. Brands that demonstrate a commitment to sustainability are more likely to attract and retain loyal customers. This will include promoting sustainable production practices, reducing packaging waste, and offering eco-friendly products.

5. High grocery prices will continue driving more shoppers to buy private label products.

As Brian Ettkin at Numerator Canada stated in an article in Canadian Grocer Magazine in October 2022:Canadian shoppers have become more reliant on private label in today’s high inflation environment and there is no sign that sales will slow”. I agree.  Especially given that grocery prices will continue to rise in 2023 and the consumer perception of the quality of private label products is improving all the time.

What are your top 5 shopper marketing trends for 2023? I want to hear from other omnichannel marketers what is on your trends list.

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Retail Media Network Results

Omnichannel Marketing & the Growth of Retail Media Networks

Retailer media networks are gaining in popularity according to a trends report from the Path to Purchase Institute (P2PI) in the USA. The survey, which includes insights from 166 marketing executives, shows retailer media networks was the number one most important omnichannel tactic in 2022.

Retail Media Network Results
P2PI survey shows retailer media networks most important omnichannel tactic of 2022.

In fact, the P2PI survey shows that investment in retailer media networks increased by 58% last year, more than any other omnichannel tactic.

Omnichannel Tactics Investment
#1 increase in omnichannel tactics spend is retailer media (Source: P2PI)

What are Retailer Media Networks?

Retailer media networks are digital platforms that allow retailers to sell advertising space to brands on their e-commerce websites and mobile apps, as well as on other digital channels such as social media and email marketing.

The growth of retailer media networks can be attributed to several things. First, the acceleration of E-commerce sales has led to more retailers investing in their online presence and looking for ways to monetize it. Second, it provides retailers with a new revenue stream by selling advertising space to brands. Finally, it allows brands to reach consumers in a more targeted and relevant way by leveraging retailers’ first-party data to deliver personalized ads to consumers who are most likely to be interested in their products. This can lead to higher conversion rates and a better return on investment for brands.

Retailer Media Networks Important Omnichannel Tactics in Canada Too

In Canada, the increasing popularity of retailer media networks mirrors that of the USA.

How popular? 

Last week, I contacted Atedra, the media sales partner in Quebec for IGA, to inquire about a digital media plan for a CPG client. Last year, demand was increasing steadily, but typically marketers could plan a campaign 2-3 months out.  Leap forward to today and demand is increasing so significantly brands need to start planning 9 months out. 

While retailer media networks are gaining in popularity, here are two things to consider.

First, while marketing budget allocation is increasing, major media are still garnering the biggest slice of the advertising dollar pie.

Second, many large CPG clients I deal with find the cost of entry for retail media quite high.  As a result, many are investing in retailer agnostic shopper media through vendors such as Flipp, ShopliftR, AdAdapted and Neptune Retail Solutions who can all target hyper-locally to reach category shoppers to drive purchase consideration and sales conversion.

I am curious what other marketers think about the growth in retailer media networks. Leave a message and share your thoughts. Plus. do not forget to check out the Path to Purchase Institute’s survey results on omnichannel marketing tactics here: https://tinyurl.com/rps4h7jm.

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Omnichannel stories

Omnichannel Marketer: Secrets to My Success

At 91.5, Eugene shared his sales and marketing experience with me

Young Marketers Should Seek Advice from Experienced Omnichannel Pros

People often ask me to share the secrets of my success over the 20 years of running JAMZ Marketing. 

Lesson 1:

No matter what your age you can always be learning from someone with more experience than you. I was reminded of this fact last week when I met Eugene poolside in Florida. Eugene is 91.5 years old and retired for over 20 years. I engaged Eugene in conversation and I am sure glad I did.  Eugene is the former owner of the one the largest RC Cola bottling and distribution companies in the USA northeast. The stories of his life in CPG he shared to overcome business challenges were golden. Here are few examples:

1. In the 1960’s, when he needed to increase sales he looked outside of traditional grocery and C-store channels and instead partnered with the fastest growing department store in Upstate New York — revolutionary at the time. 

2. He introduced the first glass bottle return program with his new retail partner to help drive store traffic and loyalty.

3. In the mid-1970’s, when most companies were still doing accounting by hand, he bought one of the first Tandy TRS 80 computers and designed his own accounting software with no experience.

Key lessons learned from Eugene:

– Work hard.
– Take a creative approach to problem solving.
– Customer service is everything.

My lesson for younger agency personnel: don’t look past older people inside or outside of your company. Instead engage them. Ask questions. You just might learn a thing or two.

If you have any questions or just want to connect to share experiences feel free to connect or DM me.

#marketing #anniversary #business #experience #shoppermarketing #omnichannel #success

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grocery shopper

Grocery shoppers looking for value, not price sensitive: Weston

grocery shoppers - Rising food prices

Headline after headline and research study after research study suggest grocery shoppers across North America are being hard hit by skyrocketing CPG prices and are shifting their shopping behaviour to stretch their grocery budgets. 

Case in point, a few headlines from my weekend reading:

  • “Majority of Canadians will change food buying habits amid rising prices”

  • “Foot traffic slows at grocery stores as inflation takes hold”

  • “Consumers likely to trade down to chicken as beef prices soar”

Galen Weston: Shifts in price sensitivity not that dramatic

In contrast, I read an article via Canadian Grocer Magazine titled “Consumers Still Spending Despite Food Inflation” in which Loblaw chairman and president Galen G. Weston is quoted saying “customers are definitely seeking value, but the shift isn’t as dramatic as one might expect”. 

Further, Mr. Weston suggests the company is seeing “a slight swing towards price sensitivity as opposed to a dramatic left turn…an indication of the consumer having more money in their wallets still, than they would have had pre-COVID levels,”

As a frequent grocery shopper, I have more than a “slight swing” towards price sensitivity.  Rather, I am continually shocked at how high prices are getting in every category of product wondering how the vast majority of Canadians can afford to eat.

As an omnichannel marketing consultant I am wondering if Mr. Weston is either out of touch with the challenges average food shoppers are facing today (I like to think not) or just playing to his shareholders.  After all, his quotes are coming on the day Loblaw’s announced its first-quarter results.

grocery shoppers surprised at grocery prices

Rising grocery prices leaving shoppers surprised

Grocery Shopping Behaviour is Shifting

But just in case Mr. Weston needs a reminder, here is some data from a research study in January from Dalhousie University Agri-Food Analytics Lab in partnership with Caddle, in field long before inflation hit 6.7%, the Russia-Ukraine war which has put additional stress on global supply chains and “shrinkflation” became a thing:

  • 63% per cent of respondents said they intended to change their food buying habits in 2022.

  • 51.7% per cent of Canadians saying they intend to avoid restaurants in 2022.

  • 45.5% said they plan to consult flyers more often before shopping for food in order to find savings offers

  • 30.3% said they will buy in bulk more in 2022

  • 26.8% per cent said they will buy discounted food about to expire.

How are higher grocery prices impacting your household?

Leave a comment and let me know.

Until next time, thanks for visiting.

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ShopLiftr cpg challenges

ShopliftR Interview: Exploring CPG Challenges from a Shopper Perspective

ShopliftR Interview: Exploring CPG Challenges from a Shopper Perspective

The consumer package goods (CPG) industry is facing many challenges with the inflation rate sitting at 5.9% and major supply chain issues both of which are key factors causing grocery prices to soar. In fact, I recently wrote about the now resolved pricing war between Frito-Lay (PepsiCo) and retail giant Loblaws, the latter of which refused to accept a price increase in product in order to “protect the people from escalating prices”. In reality, Loblaws was fighting price increases to ensure they stayed competitive with other retailers.
 
But what about consumers?
ShopLiftr cpg challenges

Image courtesy Viki Mohamad via Unsplash

Consumers are the ones facing the biggest impact of rising grocery costs with many families facing financial pressure leading to a rather dramatic shift in shopping behaviour.

Recently, I sat down with Genevieve Castonguay, Sales and Marketing Director at ShopliftR , to discuss the challenges shoppers are facing and what CPG brands need to do in order to stay relevant, top-of-mind, and drive sales in is best described as a volatile time.

Some highlights from our interview:
  • A quick example to illustrate the financial pressure being put on families. Back in December it was estimated Canadian families will spend on average $966 more on groceries in 2022 vs. 2021.  Today, that number is closer to $1,400. Add to this the price increases in gas & other goods and services and you can see why Canadian families are feeling the pinch.
  • Financial pressure is causing a shift in grocery buying. In fact, according to research from Agri-Food Analytics Lab at Dalhousie University in partnership with research company Caddle, 70.2% of shoppers are actively looking for promotions and discounted products when they food shop. Plus, the recent data is showing large increases in use of coupons and flyers with 53% of shoppers intending to use coupons more often, while 46% of shoppers plan to consult flyers more often (Dalhousie University/Caddle).
  • In order for CPG brands to stay relevant, top of mind and drive sales during this volatile time, I recommend any omnichannel marketing plan must include targeted programmatic digital or social media advertising to reach shoppers pre-shop to drive purchase consideration and get on the shopping list. Through the ads we must be able to reach buyers of your category, brand or competitive brands on a hyper-localized basis and ensure the messaging is relevant to the audience mixing the right amount of brand sell with local price promotions.

For full details, invest 6 minutes in watching the full interview.

About ShopLiftr

ShopLiftr is a digital ad technology company that aggregates and amplifies the largest collection of trade promotions, connecting shoppers with real-time, localized deals. ShopLiftr partners with the largest CPG brands and retailers in the world to deliver personalized digital advertising experiences at scale across North America.

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Shopper Marketing Consultant: 5 Secrets of My Success

Shopper Marketing Consultant: 5 Secrets of My Success

Shopper Marketing Consultant: 5 Secrets of My Success

Image courtesy Clark Tibbs via Unsplash

Five Key Attributes of a Shopper Marketing Consultant

Recently, several connections looking to make a career pivot asked me to share the secrets of my success as a Marketing Consultant.  For me it comes down to 5 key things:

  • Experience: I have expertise and a track record of success in developing B2B and B2C marketing strategies for a multitude of product categories (eg. CPG, technology) for some of the world’s largest brands. Plus, I have adapted, consciously becoming proficient in pre-shop shopper media and Ecommerce over the last 6 years as digital became a key component to reaching shoppers along the path-to-purchase.
  • Analytics: I believe analyzing data to gain insights is the foundation of any strategy. I tend to use a mix of first-party and third-party data from around the globe which provides a unique perspective on shopper behaviour while helping build robust marketing plans.
  • Creativity: I like to bring a fresh perspective to solving marketing challenges, so I ensure I am knowledgeable about all the latest trends and solutions in the omnichannel space. To achieve this I subscribe to dozens of E-newsletters, connect regularly with other marketing consultants and build relationships with key vendors and partners who help keep me “in the know”.
  • “You Before Me” Attitude: I am a partner who always puts my client’s needs first knowing if they are successful everybody will benefit. I accomplish this by always being available, adding value on a frequent basis and complementing internal resources with my knowledge base.
  • Passion & Enthusiasm: I love what I do, and nothing makes me happier than helping my clients drive product consideration and sales conversion.

Are you looking at becoming a Marketing Consultant? 

Let’s talk. I am happy to share my experiences.

Shopper Marketing Consultant: 5 Secrets of My Success

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Higher food prices are driving consumers to actively look for price promotions or discounted products.

Escalating Food Prices Shifting Grocery Shopping Behaviour

Higher food prices are driving consumers to actively look for price promotions or discounted products.

Escalating Food Prices Shifting Grocery Shopping Behaviour

Every day this week I am seeing new Canadian data about the impact of higher grocery prices on shoppers.  And the news is not good! The latest data comes from Numerator via an article in Canadian Grocer Magazine specific to the fresh produce category.

Some facts:

  • 78% of Ontarians noticed prices are going up for fresh vegetables and 75% noticed this for fresh fruits.
  • 55% of Ontario shoppers find the price hikes to be “moderately to extremely concerning”

The Results:

  • 46% of consumers say they’re buying more fresh fruits and vegetables only when they’re on sale
  • 32% are cutting back on fresh fruits and vegetable purchases
  • Shoppers are starting to buy frozen and canned fruits and vegetables more frequently.

Different day, different category or product...

Canadians intend to shop more with flyers and use coupons to save money.

My take:

  • Different day, different category of product, but same key insight – grocery shoppers are actively looking for price promotions or discounted products to save money (70.2% according to a recent @Caddle survey).
  • Where are shoppers turning to find savings?  Coupons via companies such as Checkout 51, Websaver.ca and Save.ca and digital flyers through apps such as Reebee and Flipp.

In fact, a recent survey from Dalhousie University and Caddle suggests using coupons is the most popular cost-saving strategy consumers intend to follow at the grocery store in 2022. A total of 52.8% of Canadians intend to use coupons more often. Plus,45.5% said they plan to check flyers more often before buying food.

How are higher grocery prices impacting your brand or household?

Leave a comment and let me know.

Until next time, thanks for visiting.

https://canadiangrocer.com/people-are-cutting-back-fresh-produce-prices-rise-study

 

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Lays is Mad As Hell at Loblaws

No Chips For You: Lay’s is Mad as Hell at Loblaws’ Pricing Policy

Lays is Mad As Hell at Loblaws

No Chips For You: Lay's is Mad as Hell at Loblaws' Pricing Policy

To paraphrase a famous line from the 1976 Oscar winning best movie Network, PepsiCo is “mad as hell, and is not going to take this anymore!” 

As a result, the battle lines have been drawn between a Canadian grocery giant retailer Loblaws and powerhouse CPG manufacturer PepsiCo. In a story that is not limited to trade journals, but rather has hit mainstream media, PepsiCo is refusing to ship their category leading line-up of snack foods (eg. Frito-Lay, Doritos) to Loblaws stores because of the retailer’s unwillingness to accept a new price increase.

On the surface, both sides have fair arguments. 

PepsiCo, like most CPG companies, are facing labour shortages, increasing costs of raw materials, manufacturing and transportation and other supply chain issues, all working to lower margins. 

Loblaws, seemingly, is protecting “the people” who are tired of paying escalated prices for food.  In fact, a recent Angus Reid poll shows the fast-rising inflation rate has close to 60% of Canadian families concerned about having enough money on the table to feed their families.

Below the surface is where things get interesting.

Lays Loblaws

Photo by Edu Carvalho

CPG companies have been “negotiating” for years with the grocery store oligarchy that exists in Canada paying listing fees to have the right to sell to grocers while succumbing to the “suggested retail price” set by retailers all to the detriment of profits and brand equity. 

For Loblaws, lower prices allow them to stay competitive with the other main grocery banners, driving up sales and profit margins. 

As Dr. Sylvain Charebois stated in his article (see link below) “make no mistake, many other manufacturers and other grocers are involved in a similar tug-of-war match”.  I agree. As a shopper marketing consultant, I get to work with a lot of CPG brands and most of them are looking at or already have taken price increases. Has Loblaws refused other manufacturer price increases?

So, what’s the end game?

no chips fo you: Frito Lays
Photo by wikimedia

I joked many years ago about a solution to solve the battle between CPG and grocery retailers.  Specifically, all major CPG companies need to come together and open up their own bricks and mortar retail grocery stores to compete against the 5 major retailers leaving shoppers the option of buying major brands in one channel and private label brands in the other. In essence, a pre-cursor to a direct-to-consumer model.

Until next time, thanks for visiting.

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