Despite the recent ‘price wars’ we have witnessed across the major Australian supermarket chains, Nielsen research shows that around four in five (78%) consumers still believe grocery prices have increased. Over time, this perception has influenced the way shoppers’ respond to promotions and marketing – resulting in fewer items in their basket.
In today’s fast-evolving landscape, shoppers are faced with fast-changing retailing environments, new store formats, in-store services, mobile marketing and innovative loyalty programs. And, in many ways, our definition of value has morphed beyond a simple price sticker.
So the goal for companies, brands and retailers hinges on getting to know their consumers, engaging with them to understand their priorities and then delivering in ways that are meaningful and create lasting value—beyond price.
In situations where a category draws a high level of engagement, retailers and brands have a great opportunity to influence purchases at the shelf. The growing use of mobile devices while shopping provides a new way to influence shoppers in addition to the more traditional sales promotions, merchandising displays and eye-catching packaging. In-store influencers can be particularly effective for smaller, niche brands seeking to capture unplanned, impulse purchases.
Early engagement in the path to purchase has become essential for marketers as shoppers begin their shopping plan with a brand in mind well ahead of their actual trip to the store. Product type, quantity and price are also on the mind of shoppers, but they play a more critical role while shoppers navigate the shelf. Due to this strong role of brands in the planning process, marketers must focus on engaging shoppers before they enter the store to convert planned purchases at the shelf.