Friday, March 16, 2012

Branded CPG Food may be Doomed.

Private label products have encroached end caps from Wegmans to Whole Foods and now new research by AisleBuyer suggest that younger consumers are willing to switch brands as fast as a glimpse of the phone.

The research found that “nearly 75 percent of consumers would switch brands if offered real-time mobile promotions delivered to their smartphones while shopping in a store aisle. The least brand conscious group consists of 25-34 year-old shoppers, with 82 percent willing to switch brands if they received a mobile offer for a competing product while in the store.”  Here are some other key findings:

--81 percent of smartphone owners go to grocery and drug stores prepared with a list of items to buy. Of this group, only 8 percent list specific brands to purchase.

-- 90% of 25-34 year-old smartphone owners expressed interest in receiving instant offers for the things they were already shopping for through a grocery or drug store-based mobile shopping app

-- When they are in a grocery or drug store aisle, smartphone owners' purchasing decisions are based on: -- Price/everyday low value (76%)

-- Promotions/getting the most for their money (58%)

-- Coupon availability (51%)

-- Brand loyalty (38%)

-- Generic or store brand availability (26%)

-- New products from existing or emerging brands (22%)

Mobile phone and in-particularly “smart phones” can and will provide food retailers equilibrium the private label vs CPG brand shelf space battle.

Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Johnson, or

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