What should retailers be doing to make sure the pounds are being spent in their store?
If people are spending less then it becomes all the more important to get it right and make sure what they do spend is spent in your store. The science behind merchandising and how it influences buyers choices is a well trodden path, but consumers are more and more aware of the 'tricks of the trade' and drive a harder bargain these days and expect a lot more value for their pound. How do you create perceived value?
I read in an article recently that out of the 22 grocery brand leaders in the 1920s, 19 are still brand leaders today*. Looking at some of these leading brands such as Kellogg's one thing they have in common is they have had sustained marketing campaigns, good point of sale and presence on the store shelves... people will quite happily pay and extra pound for cornflakes with the Kellogg's logo - it is perceived quality.
Re-inforcing the message of the brand with good point of sale promotional materials is essential in keeping that perceived value and leading brand edge with your customer base.
Shoppers habits have changed - people work longer hours, they have less time to spend shopping and and therefore make less trips; convenience is big factor in where they choose to shop. For FMCG products they are in a very large space, one of hundreds of thousands of products which the consumer will make a decision in a short period of time on what to spend, often within a budget. It is important that the brand presence retains existing consumers and attracts new ones. If the promotional merchandising works well they will be tempted into spending more on tempting new products, and strong brands will not be outed for cheaper versions, keeping their place in the trolley of loyal consumers.
*Article by Brenda Soars - 'What every retailer should know about the way into a shoppers head'