Food & Drink Federation Webinar: 30 th April 2020 Generating Meaningful Marketing Insights in a Covid- 1 9 world Category Consultants to the Food & Drink Industry
• Who are Levercliff? • How we generate m eaningful insights? • The im portance of Category Managem ent to the process • How is Covid- 1 9 affecting category m anagem ent? • Key Levercliff Lockdown Insights • Q&A
What do we do? We help category Davids beat category Goliaths
Duncan Macaskill 2005 201 4 2020 2001 2003
David Craig 201 5 201 8 2002 201 1 201 2 2005 201 6
Custom ers & partners trust us Som e of our custom ers Som e of our partners
We use a five step process to help businesses of any size gain a com petitive advantage. We call it Actionable Intelligence.
Getting the right Data Step 1 : • Retailer System s • Published Data • E POS • Panel Data • Loyalty Card Data • Your own research
Data can help you tell powerful stories. your needs. Com panies som etim es buy too m uch, usefulness. Buy sm arter. Be resourceful.
Understand it Step 2: • Making sense of com plex data and m aking it relevant to your business: • Consum er • Category • Com petitors • Concentrate on the so-
To understand data, you need to think about what it is telling you, rather than just describing it. Why is that happening? What are the im plications for your business, your com petitors and the m arket?
Create Insight Step 3: • accurate and deep understanding of som eone • We are not reporting, we are analysing and generating m eaningful understanding of current and future consum ers.
To create a true insight, you need to bring together all of the analysis, extracting the key nugget of business the insight.
An insight should take inspiration from the big consum er trends which are relevant to your industry.
Look Left and Right
And should in som e way relate to a consum er need. The consum er should always be at the heart of a consum er insight.
Convert to Opportunities Step 4: • Understand what type of brands/ products/ form ats your custom er has? • Identify what custom er need these products are m eeting? • Determ ine what custom er needs have not been m et
Visualising an opportunity Cake Market Segm entation - Based on Cupcakes Own Label Brand Asda Giant JS In- store Cupcake Nestle Sm arties/ Jelly Tots Cakes High High ASDA In- store Fiona Disney Range - Princess/ Toy Story Weight Cairns Fabulous Bakin Boys Watchers Tesco Red Velvet x 2 Hello Kitty/ Peppa Pig Minis Mini Cupcakes GAP Celebration Coop Truly Cup Cakes Price Position Price Position Irresistable x 4 GAP Tesco Red Velvet x 4 GAP Individual Med Med Wrap GAP Mini Cup Tesco Swirly x 4 Cakes GAP Low Price Kids Be specific about the Fabulous Bakin Boys x 6 opportunity you are addressing Low Low Aldi/ Lidl Brand x 4 Kids Fam ily Sharing Fam ily Adult Afternoon Healthy Snack Celebration Tea/ Snack Indulgence On- the- go Everyday Treat
Build into an action plan Step 5 • Help the business prioritise which custom ers it should be targeting. • Quantify the size of the opportunity • Make things as specific as possible
A good category m anagem ent process can help to produce m eaningful insights.
Category Managem ent form s a strong Custom er fram ework for producing insights and is relevant to both retail and foodservice channels. Insight Category Consum ers Com petitors
But in a crisis the norm al rules do not apply in category m anagem ent.
Although tim es m ay not be norm al, categories still need to be m anaged. Insight has never been m ore relevant to help us understand what is happening.
We need to be sm arter to cut through the noise. Category Managem ent is key to generating insights and adjusting to suit the new m arket norm s.
Levercliff Covid- 1 9 Consum er Survey Through our new consum er tracking survey we have identified the following insights:
Research 1 5 m inute quantitative research Sam ple size of 1 043 UK Representative Analysed by team
1 : The m ajority of consum ers are thinking about m oney.
65% are concerned about rising food prices and 49% concerned about reduced household incom e Base: 1 043 m ixed
So what does it m ean? There is likely to be a growth in own label , consum ers focusing on higher perceived value for m oney, considering trading down from prem ium to everyday, m anaging their basket sizes, reducing non- essential spending.
What should com panies do? Refocus towards higher perceived value products. Shift em phasis from prem ium to everyday products, not forgetting about the need for affordable indulgences for a locked- down consum er lifestyle.
2: Consum ers are changing their frequency of shopping in line with Governm ent advice.
60% are shopping less frequently, of that, 56% are buying m ore Base: 1043 then mixed
So what does it m ean? - shop habit m ay be here to stay. Consum ers buying food for later , consum ers buying with shopping lists , dem and for larger pack sizes. These all affect categories.
What should com panies do? Reconsider the relevance of your current product range to a consum er who is shopping less often. How would they respond to changes in pack size? Is your NPD pipeline filled with products that fit this potential shift in dem and?
3: How people are shopping has also changed.
Consumers are changing how they buy Click & Collect Specialists Online Delivery before 38% 1 7% 1 1 % 80% plan to continue using these after 1 9% 1 1 % since 1 2% additional the restrictions are lifted % Say It Will Continue when Covid- 1 9 Restrictions end in the UK Base: 1043 then mixed
The shopping experience is totally different.
So what does it m ean? The online shopper buys differently. They are less tem pted by displays and im pulse, and m ore habit- driven. Shoppers can m ore easily control their total spend, and m anage shopping lists m ore dynam ically .
What should com panies do? There is the potential to tap into a new online consum er m ostly younger consum ers . Have you looked at how clearly your packs appear online and how they sit against com petitors? Can you boost to encourage trial? Do you know your online shopper?
and eating food at hom e has changed.
Consumers are changing how they cook Eating Using More Scratch Using Canned or Together as a Frozen Food Baking Store Cupboard Cooking Family Foods 34% 37% 51 % 39% 37% now continue 83% 37% 66% 43% 71 % % Say It Will Continue when Covid- 1 9 Restrictions end in the UK Base: 1 043 m ixed
Consum ers are shifting away from shopping
So what does it m ean? Mature categories like Frozen, Bakery and Am bient ingredients have a new relevance to Convenience redefined as consum ers have m ore tim e to plan, cook and eat, looking for convenient ingredients rather than com plete dishes.
What should com panies do? Re- consum er who is rediscovering taking tim e to do scratch cooking and sharing fam ily m eals. Mature categories have an opportunity to retain new consum ers who have been forced to adopt new habits.
5: Consum ers are indulging on snacks, but the guilt is setting in.
33% are being careful about snacking due to lack of exercise. 26% expect to buy m ore healthier snacks Base: 1 043 m ixed
So what does it m ean? Com fort food has been the feature of the initial health and weight gain. Consum ers are likely to shift towards healthier alternatives soon.
What should com panies do? long- term health and wellbeing trends , and different need states for different consum ers. But, think about how their daily routine now differs, and what snacking occasions they could now have.
These are just 5 of the insights from our report. Think about how a true insight can inform your thinking, your plans, your strategy.
So what does it m ean? Meaningful Insights are im portant to businesses, especially in this current environm ent.
So what does it m ean? They can help your business respond to changing consum er behaviours and new needs, now and in the future.
So what does it m ean? But only if they are applied to your business in a tim ely and relevant way.
Get your copy of our Survey Register your em ail address on the Levercliff website. www.levercliff.co.uk Category Consultants to the Food & Drink Industry
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