Private label products are becoming more popular than ever as shoppers keep a close eye on their spending and try to cut costs in the face of inflation.
An EY survey found that 49% of global shoppers in today’s environment would consider purchasing private label packaged food, but the challenge is turning that interest into a conversion and, ideally, a large basket.
“You have these loyal followers, you have their attention, and now it’s time to figure out how to get their items into the cart,” said Katie Hotze, CEO and founder of Grocery Shopii. ‘Is that a merchandising tactic? A marketing tactic? A digital tactic?
“What’s the best method to get it into their cart right now?”
According to Hotze, this method can yield digital recipes and simple options for making lists.
RECIPES INSPIRING INTRIGER
An interesting recipe can get both private and national brands in the basket, and apps that have options to directly order the items they need can simultaneously increase convenience for busy customers and allow grocers to put higher margin products in customers’ pantries. to get.
“They want a quick solution to plan meals and get groceries to their door,” Hotze said. “This is why meal packs exploded and the air was sucked out of their sails. People saw it as convenient, but it’s not. You still have to deal with the subscription, high prices and 100 dishes.
“We are taking the opportunity to make meal planning very, very fast and easy and speed up online grocery shopping and meal planning from your convenience store to five minutes or less.”
ANOTHER KEY: KEEP THINGS FRESH
Recipes are nothing new, of course, but retailers need to present them in a way that is just as fast as today’s digital world. Nobody will notice a recipe that has been on a grocer’s homepage for five years. Hotze has found that a recipe peaks in the second month before rapidly deteriorating, making constant sales valuable both as a way to keep consumer interest high and promote current high-quality products.
“It’s imperative that grocers understand when you’re marketing private label, and your merchandising and marketing it as part of a recipe — which is the powerful vehicle — you have to have fresh recipe content,” Hotze said.
This strategy can also help attract younger shoppers to a retailer’s private label items and potentially create a shopper for life.
ATTRACT GEN Z CONSUMERS
Gen Z customers are less likely to be tempted by traditional marketing campaigns than recipes created by influencers, and getting a grocer’s own brands on their plate can be a valuable resource when looking for ways to cut spending.
“[Younger shoppers] do not measure and validate products and recipes in the same way that Boomers do,” says Hotze. “They don’t follow stars. They don’t have time to read the comments. They follow food bloggers and rely on food brands. So you have to be able to respond to these trends.”