Challenged by a difficult economy, consumers responded sharply
with dramatic changes in how, where, and why they buy foods and beverages. The
IDDBA commissioned Datassential to survey 3,500 consumers and 100 retailers
on changes in buying behavior and attitudes. The surveys were done in January,
2009. The results of the study will be presented at IDDBA's Dairy-Deli-Bake
2009 in Atlanta on June 7. The complete report is going to press soon and will
be available in late March. Here are just a few of the highlights.
- The New Value Shopper is the Typical Consumer – it's everyone.
Nearly all are on a tighter budget, eating out less frequently, spending time
at home, and searching more vigilantly for bargains.
- Quality and price come first. While other attributes matter, price
and quality are the defining table stakes of perceived value. Packaging, convenience,
and brand matter as well, but consumers first want an assurance that they
are buying a good product – fresh and with consistent quality –
at a great price.
- The search for value extends beyond the store. The search for value
is a part of their regular lifestyle. They no longer simply visit the store
and then search for the best prices on food and beverages; rather, the New
Value Shopper is highly proactive – keeping tabs on prices at different
stores, clipping coupons, and planning their shopping trips in advance.
- The New Value Shopper is not only price sensitive, but also price vigilant.
Shoppers today take time to study the details, comparing prices not only
overall, but also per unit or ounce. This has resulted in increasing demand
for bulk and economy sized packages, as well as a tendency to stock up on
exceptionally good deals – even if doing so exceeds their budgeted amount.
- For most, it's back to the basics. Shoppers today are foregoing
premium and luxury food items in favor of less expensive staples such as pasta
and rice. Consumers generally report that they are eating just as much as
they have always been, although now their diet depends more heavily on cheaper
food products. A central goal of the New Value Shopper is to simply stretch
their food dollar farther.
- Customers value honesty. Many consumers complain that some national
brands have reduced their package sizes, but prices have not decreased accordingly.
As a result, they are switching to store brands which they believe offer better
value, and may in some cases also be more honest. Store brands are growing
fast. Many are finding store brands to be just as good in quality and
taste.
- Identify core customers. In more prosperous times, companies benefitted
from sales to both core and fringe customers, with many suppliers since having
lost an appreciation of the distinction between the two groups. In today's
economic climate, it is fairly easy to identify loyal customers; by studying
the needs and tendencies of these core customers more closely, companies can
then build intelligently around this foundation as the economy improves.
- Have both short-term and long-term strategies. The current economy
has triggered rapid and significant shifts in shopper behavior. While it is
important for food marketers to react to improve their positioning in the
short run, they must not lose sight of the long-term prognosis and potential
consequences of their actions today.
The cost is $395 for IDDBA members; $795 for
non-members, plus S&H.
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For more information, please contact IDDBA's
Education Department at 608.310.5000, or education@iddba.org
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