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?
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.
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:
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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.
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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).
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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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