Breaking the shopper code

Consumers experience up to four different shopping ‘modes' during grocery shopping, according to a new shopper study from The Nielsen Company.

The Shopping Modality study identified the auto-pilot (grab-and-go), seeking variety (seeking new tastes and formats), buzz (open to engaging advertising) and hunt for a bargain (on the lookout for price discounts and promotions) mind-sets that accompanies and determines what consumers buy in the supermarket, and contends that knowing how these mindsets change between supermarket aisles will help FMCG companies and marketers achieve greater leverage from their point-of-purchase marketing through packaging, pricing, promotions and merchandising as well as through pre-store activation such as advertising and buzz generation.

"Our study integrated retail sales data with advanced consumer insights and found that shopping dynamics varied significantly across thirty grocery categories surveyed," Fanny Chan, MD, ACNielsen, The Nielsen Company Hong Kong says.

While shoppers tend towards any of the four modes depending on the purchase item or category, the study found consumers most often adopt the auto-pilot mode especially when shopping for items such as coffee, cheese and margarine, which fall within the auto-pilot shopping behaviour category.

"Shoppers don't waste energy on everyday decisions. To simplify their lives, they often shop in grab-and-go mode, reaching for the brands they usually buy without reading the label or checking the price. At these times they are on auto-pilot, brand choice is highly habitual and in these moments shoppers are not in the market to try anything new," Chan says, stating that therein lies the challenge to marketers of these products, who need to tailor strategies to reach consumers.

The auto-pilot mindset primarily occurs because consumers tend to be particular about staple products such as coffee, and having found brand they like, usually stick to them resulting in a brand choice nurtured out of habit. This means brands which are market leaders in an auto-pilot category should avoid radical repositioning or pack changes as this risks disrupting habitual behaviour which favours and drives brand choice.

What about brands who are not market leaders and what a share of the action? According to the study, the key to breaking through to shoppers on auto-pilot lies in knowing when and how auto-pilot can be disrupted by external stimuli - when this happens, shoppers re-evaluate their decisions, look at alternatives and consider new offers. Called ‘delta moments', it's during these moments that marketers have a brief window of opportunity to sway consumers towards their products.

However, these rules do not apply to the buzz, variety or bargain categories where the auto-pilot function switches off. For instance, consumers are more susceptible to adopt a buzz shopping mindset when considering products such as energy and sports drinks, chocolate, and yogurt drinks, and during this time, "their radar is fully turned on as they actively explore alternatives" Chan says.

Consumers thus switch mindsets as they cruise through the different sections of a supermarket, taking on a variety mode in the frozen food aisle, or a bargain mindset in categories driven by price comparison and promotions which includes products like canned or bottled food, fruits and sauces.

"It all comes down to marketers knowing what ‘mode' shoppers are in when they shop for specific products or categories. The old truth about striking while the iron is hot is directly applicable as this study traces the ‘body language' of shoppers and uncovers which hot buttons to push - failing to read that language could result in wrong marketing strategies that waste promotional dollars," Chan says.

BOX-OUT

Nielsen's four shopping modes

• Auto-pilot categories

Shoppers are in a grab-and-go mode. If you're a marketing leader, avoid radical repositioning or pack changes as this risks disrupting consumer choice driven by habit.

• Buzz-Activated categories

Shoppers are open to buzz and engaging advertising. Marketers in this category need to generate buzz through exciting advertising, new introductions and innovative packaging that leaps off shelves to grab consumers' attention and interest.

• Variety-Activated categories

Shoppers seek new tastes and formats. Traits of consumers in this category are that they get bored with the same choices or they seek internal affirmation that as the household ‘chef' they can deliver variety and surprise in their role. Products need to have exciting and informative packaging.

• Bargain-Activated categories

Price comparisons and promotions dominate choice rules in the absence of other news.

By Clarice Chiam