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  • Source: Prosper™ SIMM-18, June 2011

    Grocery / Drug / Mass

    “The most amazing products, with incredible advertising, in an impeccable store with the perfect assortment are nothing without one critical factor: shoppers. And today’s shoppers are more unique, demanding and more in control than ever before. They make individual decisions about what they will buy, how much they will pay for it and where they will go to get it – despite efforts made by marketers to persuade shoppers where to shop and what to buy. The shopper is in control!”

    Jim Dippold, Symphony IRI Group May 2012

    That quote sums up the challenges of those competing in the GDM vertical face everyday. With such challenges, you need Intelligent Media Delivery to stay on top of the trends and know where your consumers shop and what they buy. For example, during the past year, drug, dollar and club channels each captured a share of CPG spending, posting important gains across CPG departments.

    As you'll see, consumers continue to look for deals as highlighted in the FMI 2012 release:

    • ” I seek discounts often”- 61% reported ‘always’. Several years ago, about 60% of shoppers were driving for discounts, now it’s about 80% . That increase represents some 19 million more American households on the discount safari.
    • “I accept living with less”- 32% report they changed their mindset in this regard during the recession and 13% reported this as a lasting change. That translates to some 15 million more families feeling the pinch of living with less.
    • “I am comfortable buying private brands “- a 14% increase, but more important, the shift was not a temporary fix, but an enduring conversion. That’s about 16 million more families planning to continue buying private brands. 70% percent of shoppers agree “store brands are a great value,” and 68% indicate their intention to continue buying them. Private brands are now an important component in the new normal.
    • Shoppers are researching - utilizing every resource at their disposal to lower their grocery bills, and while many still turn to the traditional printed circular, a growing number are turning online. 25% of the time (or one out every four trips to the grocery store), more than half of customers are either going online before leaving home to search out coupons, check prices at multiple stores OR they are using mobile technology (i.e.- their smart phones) once they get in the store to find coupons, research products and check prices. A quarter of them are utilizing at least two of these technologies,

    And as the consumer has gained control, the industry continues to evolve to meet their changing needs. Consider that in April 2012 the mix of CPG/grocery sales broke out as follows.

    And we aren’t even reflecting the movement online, where FMI reported over half of the shoppers surveyed say they have made a purchase in an online grocery category.

    The times have changed behaviors, who is in control, options for purchasingand how consumers plan to shop and save.

    It’s why now more than ever, retailers are turning to Valassis!

    Source: FMI She Speaks 2012

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