The “Great Recession” officially ended in 2009, but budgeting is still on the menu for consumers even though they have a sunnier outlook on the economy and their personal finances. Results from Information Resources, Inc.’s (IRI) Q2 2013 MarketPulse™ survey indicate that consumers have settled into the “new normal” of conservative purchase behaviors and attitudes, so consumer packaged goods (CPG) marketers must keep their finger on the economic pulse and find innovative ways to entice consumers to loosen their purse strings.
According to the Q2 2013 MarketPulse survey, 56 percent of consumers will decide on most of the products they will purchase before they step foot out of their homes, versus 59 percent in Q2 2011. While 58 percent of consumers say coupons and 76 percent say brand experience are important, today’s shoppers are very in tune with price. In fact, the survey also uncovered that 52 percent of shoppers choose the store in which they will shop, because it offers lower prices on items they need. To find the lowest prices, shoppers are embracing a variety of tools, such as:
- 65 percent use prices advertised in retailers’ weekly grocery circular to compare prices
- 56 percent compare prices across area retailers to identify lowest prices
- 26 percent use prices on retailer websites to compare prices
And, not all purchase decisions are made at the kitchen table. The following store-based marketing tactics still influence the final brand decision:
1ne: Social media is not a factor for a lot of consumer product goods. How many products in your pantry do you have time to have a relationship with ?
2wo: If you’re competing on price alone you’re in a downward spiral and trading profit for share. Change the marketing playing field and compete and leverage your brand equity.
3three: Marketing is more important today than ever before. Only marketing can give consumers a reason to pay more for YOUR product.
4our: The money you are spending in digital marketing may provide a better ROI if allocated to in-store displays and FSI’s.