NEW YORK — A new study released by Synovate here identifies four distinct shopper mind-sets that can help retailers better manage categories.
“Consumers shop as either system beaters, explorers, preferred planners or functional planners,” said Joel Rubinson, senior vice president and shopper insights expert for the market research firm.
As retailers better understand how each individual customer approaches the categories in their stores, their ability to optimize product assortments and promotions increases exponentially, he noted.
A shopper transforms into a “system beater” when he or she watches for specific products to go on sale, according to Rubinson. The categories frequently approached in this manner are those that have noticeable promotional patterns, such as carbonated soft drinks. Rubinson cited an example whereby retailers predictably promote Pepsi one week and Coke the next.
Seventy-five percent of system beaters said they have a favorite brand that they strongly prefer but they still require a deal to actually make a purchase, according to the study's findings. More than half of the system beaters (58%) acknowledged switching stores to take advantage of sales on the brand they prefer.
“We asked shoppers questions about their attitudes during their last shopping trip, and then we asked category-specific questions about the items they bought in upwards of three different categories,” said Rubinson.
The online survey polled 650 consumers who were the primary grocery shoppers in their household. Eighteen categories were covered in total.
“Frequent-shopper programs and data mining tools can be used by retailers to analyze purchase patterns and find out [in which categories] each shopper is a system-beater,” said Rubinson. “Retailers can then offer special promotions in those categories and advertise them through direct mailers and newsletters.”
Categories like chocolate candy and ice cream prompt exploration, Rubinson told SN.
“These categories have a tremendous amount of variety and are viewed as indulgent, so people have fun exploring them,” he said. “Retailers stand to benefit from having a deep assortment of these items. They should also send customized emails and newsletters that include information about new products in explorer categories.”
Consumers who decide which products they'll purchase before visiting a store are deemed planners in the Synovate study. Preference planners know exactly which brands they'll choose, while functional planners set out to buy a certain category of product.
For example, a preference planner might jot down “Diet Coke” or “Dole pineapple” on a shopping list, while a functional planner would simply write “paper towels,” Rubinson told SN.
“In a category where there is a lot of brand preference, like carbonated soft drinks, retailers can merchandise a variety of brands,” he said. On the other hand, functional categories like dishwashing liquid, toilet paper, paper towels, margarine and cheese don't require a variety of brands.
Rubinson encourages retailers to beef up their private-label lines in areas where consumers are indifferent to brand names.
He expects chains to use the study as a template to determine how well they are currently managing categories and which areas need improvement.
“The findings of this study have big implications for supermarkets that may be missing certain elements of category management,” he said. “This could potentially change the way retailers think about their stores and even how they work with manufacturers to help lift sales.”
