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Mastering Nuances is Key to Meeting Shoppers' Changing Needs, according to IRI Report.

CPG Marketers with Intimate Understanding of how Consumers are Wired and a Deft Ability to Market to the New Consumer Will Win Game in Long Run

CHICAGO -- Underneath all the news coverage highlighting the dichotomy between a range of economic indicators that point to a recovering economy and the persistently increasing unemployment rate are many subtle behaviors from shoppers that combine to form significant trends. The latest IRI Times & Trends Report, "Zero-Moment of Truth: Redefining the Consumer Decision-Making Process," takes an in-depth look at how shoppers learn about, plan for and execute their consumer packaged goods (CPG) shopping trips and how these behaviors have changed in response to a prolonged period of economic unrest.

Perhaps the most salient of these trends is represented by where consumers make their CPG decisions. As late as 2007, 60 percent of shoppers made their decisions at home and 40 percent in the store. However, in July of this year, 83 percent of shoppers stated that they are making their purchase decisions at home, an astounding 23 point increase. In addition, 64 percent of shoppers now make a list prior to visiting a store.

"While there is a stereotype that it is aging boomers who are most likely to make shopping lists, clip coupons and generally practice the most draconian money-saving strategies, it is actually Millennials, shoppers under the age of 30, that represent the most frugal consumer segment," says IRI Shopper Marketing & Innovation President Thom Blischok. "In fact, this group is most heavily represented in four out of seven money-saving activities researched by IRI. Additionally, our research indicates that Millennials' frugal ways will persist long after the recession ends."

Consumers are still relying heavily on store fliers for their at-home research and coupon clipping. Even though Internet coupons totaled just 1 percent of total coupons printed in 2008, this statistic belies the importance of the Internet in several ways. First, that 1 percent represents an 80 percent increase over a single-year period, and 44 percent of shoppers indicate they are looking online to find coupons. Finally, among those who receive permission-based e-mail from a CPG company, an enormous 91 percent have downloaded or printed a coupon based on that e-mail.

In-store shopper behaviors have also changed during the past several years. Recent IRI research indicates that 54 percent of shoppers notice promotions in the shelf area of the store, a significant seven point increase versus 2004. However, the same report also reveals that the time shoppers spend in front of the shelf has dipped from 49 to 43 seconds during the same period of time. CPG companies and retailers must take note of these critical changes and be succinct.

CPG retailers and manufacturers seeking to understand and deliver against the new consumer mindset should consider the following action items:

* Product Marketing: Collaborate with key retail or manufacturer partners to facilitate consumers' list-making efforts with innovative programs combining convenience and savings, such as buy one/get one and discounts on combined meal ingredients/components, etc.

* Customer Marketing: Work with key retail or manufacturer partners to create cross-merchandising and cross-promotional programs which feature products that are complementary to targeted trip types.

* In-Store Marketing: Closely tie in-store efforts with externally-targeted promotional campaigns to reinforce/solidify purchase decisions made prior to entering the retail environment.

About the Report

The IRI Times & Trends Report, "Zero-Moment of Truth: Redefining the Consumer Decision-Making Process," is available from IRI, the leading global provider of consumer, shopper, and retail market intelligence and insights for the consumer packaged goods (CPG), retail, and healthcare industries. The findings of this report were compiled based on IRI Consumer Network([TM]) and IRI Shopper Insights Advantage([TM]). To download the report, visit http://us.infores.com/page/news/times_and_trends.

About Information Resources, Inc.

IRI is the world's leading provider of consumer, shopper, and retail market intelligence and insights supporting 95 percent of the FORTUNE Global 500 consumer packaged goods (CPG), retail and healthcare companies. Only IRI offers the unique combination of integrated market information, automated and predictive analytics, innovative enabling technologies, and domain expertise. With IRI, leading retailers and manufacturers are able to quickly discover breakthrough insights driving smarter decisions and actions across the enterprise for breakthrough results. Companies around the world depend on IRI for improved productivity, stronger brands, and dramatic revenue growth. For more information, visit http://us.infores.com.
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Publication:Business Wire
Article Type:Report
Geographic Code:1U3IL
Date:Oct 28, 2009
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