cpg

5 Exciting Insights from My Kroger Store Visit in Toledo Ohio

Toledo is home to the Mud Hens, Tony Paco’s, Klinger and my mother-in-law. So, whenever we visit, I love doing in-person store checks in grocery stores. This morning I did a store visit of the local Kroger grocery store. As I was walking through it, I made some key observations.

Kroger store in Toledo Ohio where I recently completed a store check.
Visits to grocery stores like Kroger provide key shopper insights.

1-FLOOR MEDIA: For a variety of reasons, including safety concerns and cleanliness standards, Canadian grocery retailers do not offer floor decals as part of their retailer media network solutions. Shame. Kroger had at least a dozen floor media executions that I found to be visually engaging, helped brands reinforce key messaging while directing customers to specific areas of the store.

2-CHOICE: In Canada, shoppers are generally limited in their buying choices for most CPG categories to stores private label plus one or two national brands. Not the case at most US supermarkets.  For example, Kroger had an entire aisle dedicated just to cereal.

3-CROSS-MERCHANDISING: Several brands utilized a cross-merchandising strategy with shelf media placements in 2 or more aisles in store.  The best example I found came from the @Mars brand Ben’s Original. In the rice aisle, the company promoted its new Street Food product by telling people they can find it in the canned food aisle.  In the canned food aisle was a second shelf media ad placement promoting the benefits of the new product: new, fast and flavorful.

4-LARGE DISPLAYS: Kroger’s floor was bustling with massive, eye-catching displays placed in high-traffic areas from top-tier CPGs like @Mondelez (Oreo), @Kellanova (Pringles) and McKee Foods (Little Debbie). No doubt driving impulse purchases.

5-BACK-TO-SCHOOL: The wheels on the bus keep going round and round when it comes to display units during the back-to-school period. Kroger featured school buses from @General Mills (Nature Valley), PepsiCo (Lay’s, Doritos), @Keurig Dr. Pepper (Motts) and Mondelez (multi-brands).

What are your thoughts on these insights?

Have you noticed similar trends in your local stores?

Have any feedback on my content or just want start a conversation about shopper marketing leave a comment or email aaron@jamzmarketing.com.

To see more posts from Aaron Richman click here.

To see my LinkedIn profile click here.

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Thinking about ratings and reviews.

Ratings and Reviews Unlock a Goldmine of Consumer Insights

Ever think about how RATINGS AND REVIEWS can provide CPG marketers VALUABLE INSIGHTS INTO CONSUMERS ACTUALLY BUYING YOUR BRAND?  

I have!

And guess what? Ratings and reviews are a goldmine for consumer-packaged goods (CPG) brands looking to gain insights into shoppers. These insights are crucial for understanding customer preferences, improving products, and enhancing overall brand strategy.

Thinking about ratings and reviews.
Thinking about what shopper insights CPGs can glean from ratings and reviews.

5 Ways Ratings and Reviews Provide Consumer Insights

1. Understanding Consumer Preferences

Direct Feedback: Reviews provide direct feedback from consumers about what they like and dislike about a product. This helps brands understand consumer preferences and tailor their products accordingly.

Detailed Descriptions: Consumers often describe their experiences in detail, highlighting specific features they appreciate or find lacking. This granular feedback is invaluable for product development.

2. Identifying Common Issues

Spotting Trends: By analyzing reviews, brands can identify common issues or complaints. For example, if multiple reviews mention that a product’s packaging is difficult to open, this signals a need for improvement.

Prioritizing Fixes: Understanding the most frequently mentioned problems helps brands prioritize which issues to address first, ensuring that they tackle the most impactful areas.

3. Gauging Product Performance

Performance Metrics: Reviews often include ratings on various aspects of a product, such as quality, value for money, and ease of use. These metrics provide a quantitative measure of product performance.

Benchmarking: Brands can compare their product ratings and reviews against competitors to see how they stack up in the market.

4. Enhancing Product Development

Innovation Ideas: Consumer feedback can inspire new product features or entirely new products. For instance, if reviews frequently mention a desire for a specific flavor or variant, this can guide future product development.

Iterative Improvements: Continuous feedback allows brands to make iterative improvements to their products, ensuring they stay aligned with consumer needs and preferences.

5. Improving Marketing Strategies

Targeted Messaging: Insights from reviews can help refine marketing messages. Understanding what consumers value most about a product allows brands to highlight these features in their marketing campaigns.

Customer Segmentation: Reviews can reveal different customer segments and their unique preferences, enabling more targeted and effective marketing strategies.

Here is an example:

Imagine a CPG brand that sells a popular ice cream product. By analyzing reviews, they discover that while many customers love the taste, there are frequent mentions of complaints about the lack of eco-friendly packaging and a desire for a low-sugar variant. Armed with these insights, the brand can improve the packaging and introduce a new low-sugar option, addressing consumer needs and potentially increasing sales.

In my opinion, ratings and reviews provide CPG brands with a wealth of consumer insights that can drive product improvements, enhance marketing strategies, and ultimately lead to greater customer satisfaction and loyalty. 🚀

#CPG #ConsumerInsights #CustomerFeedback #ProductDevelopment #MarketingStrategy #CustomerSatisfaction #BrandImprovement

To see more posts from Aaron Richman click here or visit him on LinkedIn here.

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Example of how consumers complete a ratings and reviews on the Caddle mobile platform.

Ratings and Reviews Increase Sales Conversion for CPGs

In today’s competitive marketplace, ratings and reviews have become an essential tool for CPGs to drive consideration and sales. Makes sense since consumers rank ratings and reviews as the #1 KEY CONSIDERATION WHEN MAKING PURCHASE DECISIONS. But there are a variety of ways brands can use ratings and reviews to their advantage. 

Here is a list of the top 5:

Example of  how consumers complete a ratings and reviews on the Caddle mobile platform.

1. Building Trust and Credibility

Authenticity: Ratings and reviews from real customers provide authentic feedback, which builds trust. Potential buyers are more likely to trust a product with positive reviews from other consumers.  This authenticity is crucial in an age where consumers are increasingly skeptical of traditional advertising.

Social Proof: Ratings and reviews help consumers see that others have had positive experiences with a product reassures potential customers, making them more confident in their purchase decision. Social proof is a powerful psychological phenomenon that can significantly influence buying behavior.

2. Influencing Purchase Decisions

Peer Recommendations: Consumers often rely on the opinions of others when making purchasing decisions. Positive ratings and reviews act as recommendations, encouraging others to buy. This peer influence is especially strong in categories like beauty and health products, where personal experiences are highly valued.

Detailed Insights: Ratings and reviews provide detailed insights into the product’s performance, helping potential buyers understand its benefits and drawbacks. This information can be crucial in the decision-making process, , as it allows consumers to make informed choices based on real-world usage.

3. Enhancing Product Visibility

SEO Benefits: Ratings and reviews contribute to SEO by providing fresh, user-generated content. This improves the product’s visibility in search engine results, attracting more potential buyers. Search engines favor content that is regularly updated and relevant, and reviews help achieve this.

Higher Click-Through Rates: Products with high ratings and reviews and numerous reviews are more likely to attract clicks from search engine results pages (SERPs), leading to increased traffic and potential sales. High click-through rates signal to search engines that the product is popular and relevant, further boosting its visibility.

4. Reducing Purchase Anxiety

Addressing Concerns: Ratings and reviews often address common concerns and questions about the product. When potential buyers see that others have had positive experiences, it reduces their anxiety about making a purchase. This reassurance is particularly important for high-involvement purchases where the risk of dissatisfaction is perceived to be higher.

Transparency: Honest ratings and reviews, including both positive and negative feedback, provide transparency. This helps consumers feel more informed and confident in their decision. Transparency builds trust and can differentiate a brand in a crowded marketplace.

5. Encouraging Repeat Purchases

Customer Engagement: Engaging with reviewers by responding to their feedback fosters a sense of community and loyalty. Satisfied customers are more likely to become repeat buyers. This engagement shows that the brand values customer input and is committed to continuous improvement.

Product Improvement: Ratings and reviews provide valuable feedback that can be used to improve the product. Enhanced products lead to higher customer satisfaction and increased repeat purchases. By listening to customer feedback, brands can make data-driven decisions that enhance product quality and customer experience.

Here is an example:

Imagine a customer is considering buying a new skincare product. They read several positive ratings and reviews highlighting the product’s effectiveness and gentle ingredients. These reviews address their concerns about skin sensitivity and provide reassurance. Feeling confident, they decide to make the purchase. After a positive experience, they leave their own review, further boosting the product’s credibility and encouraging more sales.

In my opinion, ratings and reviews are powerful tools that help CPG brands build trust, influence purchase decisions, enhance visibility, reduce purchase anxiety, and encourage repeat purchases. By leveraging this feedback, brands can drive sales conversions and boost overall sales. 🚀

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I am Aaron Richman – Your Dedicated and Expert Shopper Marketing Consultant

Aaron Richman Shopper Marketing Consultant

Hi, I’m Aaron.

Husband (33 years) to Michele Richman.

Father of two successful young men (@Zachary Richman and @Jordan Richman).

Entrepreneur and Shopper Marketing Consultant at JAMZ Marketing, founded in 2003.

I’m passionate about combining my love of sports, mentoring young people, and community service. I have been a volunteer coach, Director of House League and Board Member for several local sports organizations. Fun Fact: I even won a bronze medal in basketball for Canada as an Assistant Coach at a major international competition!

Clients and friends often tell me my personality is as colourful as the shirts that I wear.

Sharing insights and my point of view on key industry news and trends impacting the shopper marketing/omnichannel/connected commerce world is both a creative outlet and a passion. But trust me, my two-time Cannes Lions awarding winning son @Zachary Richman is the copywriter in the family.

As a Marketing Consultant my primary goal is to HELP BRANDS DRIVE SALES CONVERSION focusing on retail, CPG and technology companies within in the omnichannel space. I work with some of top agencies and CPGs) in Canada.

My expertise includes:

  • Shopper and retail strategy
  • Shopper digital media planning (RMN and RAMP)
  • Data analysis
  • Senior-level client service

I aim to provide thought leadership through my content and, when the opportunity arises, when we work together.

Currently, for the first time in several years, I HAVE CAPACITY TO TAKE ON NEW CLIENTS.

If you’d like my perspective on a trend or want to see if we’re a good fit, feel free to reach out on LinkedIn or email me at aaron@jamzmarketing.com.

Looking forward to connecting with you!

#MarketingConsultant, #ShopperMarketing, #Omnichannel, #ConnectedCommerce, #ContentCreation, #MarketingStrategy, #ClientSuccess, #CommunityEngagement #Mentorship, #Leadership #thoughtleadership #Networking #MarketingInsights #availabletowork #retailstrategy #CPG

To read more about Aaron Richman click here. To read my blogs click here.

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5 star ratings & reviews drive sales conversions

Ratings & Reviews are #1 in Driving Consumer Purchase Decisions

♫ Might as well admit it I’m addicted to…RATINGS & REVIEWS! ♬ Aren’t you?  If so, you are among the vast majority of consumers (99.75%) who consult Ratings and Reviews when shopping online or pre-planning shopping trips before purchasing a product. (I need to meet the 0.25% who don’t use reviews! 😊)

How important are Ratings and Reviews?

Consumers rank Ratings & Reviews as the #1 key consideration when making purchase decisions (90%) ahead of family/friend recommendations (74%), search engine ranking (56%), Facebook and Instagram (28% & 26%) and brand influencer endorsements (17%).

BUT RATINGS AND REVIEWS ARE NOT JUST FOR ONLINE PURCHASES AND PRE-SHOP PLANNING!

More and more shoppers are using their mobile devices IN-STORE to research products by comparing and looking at product reviews.

A recent survey shows 84% of consumers use smartphones to look at Ratings and Reviews when considering IN-STORE purchases.

Just the other day I found myself in @Shoppers Drug Mart checking out reviews on @Google and @Amazon looking for consumer insights on an after-shave brand I had not purchased before. Focus group of one, but I purchased the product so … REVIEWS DO DRIVE SALES CONVERSION!

So, how can retailers and brands bring the power of Ratings & Reviews IN-STORE?

Recently, when exploring in-store photos on Shelfgram I came across a shelf media execution by Native deodorant that included a call-to-action of “50,000+ 5-star reviews”.

Photo courtesy of Field Agent and Shelfgram.

Also, Walmart Canada is testing digital shelf signage (see video below) that includes product and price information while integrating Ratings and Reviews. This is a splendid example of omnichannel marketing, as Walmart is making Ratings & Reviews accessible to shoppers online at Walmart.ca and in-store.

So how do you make Ratings & Reviews more easily available in-store while we wait for retailers to integrate digital signage?

Simple.

Integrate a QR code into your shelf media, POS, displays and packaging with a call-to-action to check out Ratings & Reviews. For brands already using QR codes to drive shoppers to receipt validation contest pages, recipe sites and brand pages this tactic is a no-brainer. While you’re at it, add a QR code linking to Ratings & Reviews in your flyer ads too!

Plus, if you want to gain insights into shopper engagement with QR codes check out Tapscan, which offers a platform featuring real-time reporting on shopper engagements by retailer, time day/week, language, location and more.

Finally, there are a lot of companies that offer Ratings & Reviews services in Canada to help brands drive consideration and sales conversion. Caddle, Field Agent, Samplesource and Shopper Army just to name a few.

Therefore, if you want to engage a leading Shopper Marketing Consultant to help navigate the Ratings & Reviews world, check out my contact information on my website or LinkedIn profile and let’s start a conversation.

Sources: Power Reviews, Uniqode

Native deodorant photo courtesy of Shelfgram and Field Agent Canada.

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Coors beer near-pack, gift with purchase program

The Lost Art of Near-Pack Gift Programs

I was in my local LCBO liquor store over the weekend and noticed a display featuring a Coors beer near-pack gift with purchase (GWP) program. Coors was offering shoppers a free cowboy hat with the purchase of two 6 packs of beer as part of sponsorship program with the popular Boots and Hearts — Canada’s largest multi-day country music and camping festival.

Coors beer near-pack, gift with purchase program featured display at LCBO stores

As I looked at the display, I realized outside of the liquor store channel, near-pack GWP programs that offer shoppers immediate incentives to drive sales conversion, have become a thing of the past for CPG brands. Especially, in the grocery channel where delayed incentive GWP offers using a digital receipt upload as a proof of purchase method reign supreme.

At one-time near-pack GWP programs offered CPGs and retailers many benefits including

1.Increased Basket Size and Order Value: Customers were often motivated to reach a certain spending threshold to qualify for the free gift, which can lead to an increase in the number of items they purchase on a particular shopping trip.

2.Enhanced Brand Perception: Offering a gift with purchase would improve customers’ perception of the brand’s value, as it doesn’t devalue the products like discounts might.

3.Boosted Sales and Competitive Advantage: These programs can drive impulse sales and give retailers a competitive edge by offering something extra that competitors may not

Coor beer offering free cowboy hat with purchase
Coor beer offering free cowboy hat with purchase

Now the prevalence of near-pack GWP promotions, has declined which has me thinking about the reasons why.  Here are five reasons:

  • Cost and Profit Margins: Implementing near-pack gift programs can be expensive for both manufacturers and retailers. The cost of producing, packaging, and distributing the additional gift items can significantly impact profit margins. Given the highly competitive and low-margin nature of the grocery industry, many companies prefer to avoid these extra costs.
  • Operational Challenges: Coordinating gift with purchase programs involves logistical complexities. Ensuring the gifts are properly attached to or included with the main products, preventing theft, and managing inventory can be challenging. These operational difficulties can deter grocery stores from running such promotions.
  • Consumer Preferences: Modern consumers may prefer immediate price discounts or digital promotions over physical gifts. Digital coupons, loyalty programs, and personalized discounts offer more flexibility and convenience, aligning better with contemporary shopping habits and preferences.
  • Environmental Concerns: There is growing consumer and corporate awareness regarding sustainability and environmental impact. Near-pack gifts often involve additional packaging, contributing to waste. As companies strive to meet sustainability goals and cater to eco-conscious customers, they might avoid promotions that lead to increased packaging waste.
  • Effectiveness and Alternatives: The effectiveness of near-pack gift promotions in driving sales may have diminished over time. With the advent of sophisticated marketing strategies, data analytics, and personalized marketing, retailers and manufacturers can more effectively target promotions to specific consumer segments. This targeted approach can yield better results compared to the broad-brush method of near-pack gifts.
Immediate incentive free gift offers being replaced by receipt upload promotion tactic
Receipt upload promotion tactic being used frequently for free gift offers

In summary, while near-pack gift with purchase programs can be appealing, their decline in grocery stores is attributed to cost, operational challenges, changing consumer preferences, environmental considerations, and the availability of more effective promotional alternatives.

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Printed flyers in Quebec impacted by shutting down of Publisac

Grocery Shoppers Moving to Digital Flyers as Readership Increases by 20%

Printed flyers, often found in mailboxes, rolled-up in elastic bands on doorsteps, or tucked within the pages of our community newspapers, are a familiar sight, offering shoppers discounts and promotions on grocery products from local supermarkets. In Canada, the distribution of printed flyers has historically served as a significant promotional strategy for retailers and CPG brands, providing a potent means for businesses, to reach and engage consumers to drive pre-shop consideration and get products on the weekly shopping trip list. However, traditional printed flyer distribution methods have been disrupted in the last 12 months leaving millions of households in Canada without access to flyers highlighted by two major developments.

First, in Quebec, the owners of Publisac shut down its flyer service after 45 years leaving over 2 million households without (see story here: https://rb.gy/eeojmv).

Second, in Ontario, the Toronto Star’s sister company Metroland Media Group announced it was closing print production of 71 community newspapers with only a handful continuing to publish online. (see story here: https://rb.gy/12moyy)

Printed flyers in Quebec impacted by shutting down of Publisac
Publisac shuts down flyer service in 2023 impacting printed flyer distribution in Quebec.

As a result, Canadian shoppers are increasingly using digital methods to seek out weekly grocery deals through retailer websites, retailer apps and third-party platforms like Flipp who aggregates weekly ads, deals and coupons from various retailers into one convenient location. Recently, Flipp, in partnership with Angus Read, released its 10th Annual Flyer Readership in Canada 2024 research study which shows:

*83% of Canadian shoppers report reading flyers; a decrease of 3 percentage points in the last year.

*Digital flyer readership increased +20% in the last year

*For the first time ever, digital flyer readership exceeds print flyer readership in all age groups.

*Overall, 54% of Canadian household shoppers read only or mostly digital flyers. This number increase to 77% for Gen Z and 75% for millennial shoppers.

*Among all digital flyer readers, the top 3 sources of the digital flyer are 1) retailer websites (48%), retailer apps (38%) and Flipp (32%)

To get a full copy of the Flipp readership study you can click here: https://rb.gy/ijc9o8

The Flipp app is a one-stop marketplace for deal in digital flyers.
Flipp app allows grocery shoppers to browse digital flyers with local deals.

Flipp helps retail and CPG partners create, curate and distribute local promotion and savings content to millions of highly-engaged shoppers every day through its mobile app.

In my opinion, digital is the future for flyer readership in Canada. And what excites me the most is technology from companies like Aristid whose software platform enables retailers to personalize millions of flyers every week for individual shoppers based on purchase behaviour.  This allows retailers to deliver a flyer with the right product mix, at the right time, at the right price adjusting for local store pricing and product assortment with updates based on inventory levels.

To learn more abour Aristid click here: https://rb.gy/f3oz2xUntil 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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Aaron’s Top 5 CPG Shopper Marketing Trends for 2022

2021 was an exciting year in shopper marketing highlighted by the rapid expansion of E-Commerce, advancements in technology and the re-definition of how shoppers shop the CPG category.

With 2022 upon us, I want to highlight 5 key trends to look for in the CPG world, in Canada, this year:

  • The emergence of social commerce partnering brands with social influencers to generate sales direct-to-consumer.
  • Brands allocating more advertising dollars in grocery media retail networks utilizing retailer owned data to target offers to shoppers.
  • Increasing investment in technology (eg. AI) to collect first-party data and use to personalize offers to brand buyers.
  •  Increase support of E-commerce sales especially with the introduction of a 15-minute home delivery service channel.
  • A rise in use of price promotions and digital coupons to drive conversion while helping Canadian grocery shoppers to save money in the face of massive increases in food costs.

What trends do you see coming to the forefront in 2022?

Leave a comment.

Until next time, thanks for visiting.

(Photo Courtesy of Photo by Eyestetix Studio on Unsplash)

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Shopper Marketing Minute – Product Innovation and COVID

Shopper Marketing Minute – Product Innovation and COVID

In this episode of Shopper Marketing Minute, I discuss whether or not the timing is right for CPGs to be introducing new product innovations into the marketplace during COVID19. For full transcript see below:

I’m interested in this topic because recently, I have read two articles with differing points-of-view. The first article indicates many CPGs are cutting back on product innovation, choosing instead to focus on streamlining the number of products they manufacture to increase the speed to market of core brands to meet the demands of shoppers. The other article was based on a survey that shows two-thirds of CPGs are actively working on product innovation today and they plan on bringing them to market as soon as possible.

My opinion — it is important for CPGs to deliver new products shoppers want based on changing food trends and to develop new revenue streams.  However, the two biggest unanswered questions for CPGs are:

  1. When will retailers be open to bringing new products into their stores?
  1. Will shoppers be open to trying new products vs. trusted, comforting brands?

Have an opinion please leave a comment.

Thanks for watching.

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