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CHICAGO – Becoming more relevant to your best customers is key to fending off the challenges of slow industry growth and intensifying competition from alternative outlets, according to a new study by market research firm Information Resources, Inc. (IRI).
IRI’s new Times & Trends report, “Marketing to the Multi-Tasking Consumer,” presents a new approach to merchandising based on a deep level of consumer insight, evaluating consumer behavior and preferences across each of the three consumer roles – end-user, shopper, and buyer – and offering suggestions on how to parlay that insight into targeted merchandising strategies that drive trip frequency and basket growth.
“This research uncovers an interesting paradigm – essentially the flip side of being all things to all people – being more meaningful to the most meaningful shoppers,” said IRI c.m.o. Andrew Salzman. “It takes a deep understanding of the ‘multiple personalities’ of consumers in order for retail marketers to get an edge. These findings will empower marketers to develop strategies targeting the specific shopping trips that offer the greatest potential for their stores. With the right store layouts, assortment and promotions, retailers can own discrete consumer trips, delivering a whole new growth platform.”
The report found that consumer roles are universal across markets and categories, but behavior within these roles will vary depending upon market conditions (such as retail structure and economic trends) and category dynamics (brand concentration and brand-building investment).
For instance, within beverages, while a majority of many non-alcoholic beverage category sales are derived from pantry stocking trips, a high proportion of beer, wine, and spirits sales occur on quick trips. As a consumer’s mindset, their path through the store, and product mix within the basket vary substantially across these trip types, so will optimal merchandising strategies.
Through case studies and examples, the report illustrates how a deep understanding of consumer shopper behavior will result in the right promotions to maximize lift.
Click here to purchase the full report