A key part of the groundwork in getting listed is to understand what demographic a brand caters to and if that demographic has a need that’s not being met. This can then be matched with a retailer’s typical shopper profile, whether that’s value conscious, family shoppers or those looking for a more premium offer.
The most effective way to convince a retailer that a brand will add value is to demonstrate how it will win back lost spend. Is a retailer missing out on sales because its typical buyer is purchasing a specific brand elsewhere? Could they be persuaded to get it in their store instead? For example, people who purchase Aussie shampoo are closely aligned, demographically speaking, with Sainsbury’s shoppers. Yet, shoppers’ loyalty to Sainsbury’s doesn’t necessarily extend to where they buy the Aussie brand. Why shouldn’t shoppers get their preferred Aussie shampoo in Sainsbury’s? This indicates lost spend for the retailer.
Understanding and communicating demography and consumer behaviours like this means brands can position themselves as the solution to recovering spend by encouraging buyers to shift their purchasing habits.
At a time when consumers are likely to be turning their minds to best value, continuing to offer premium or luxury alternatives to those willing and able to trade up is crucial to maintaining average prices for a category.
Given current restrictions brought in by the pandemic, shoppers are willing to spend more on products that recreate out of home experiences. Take beauty as an example. The percentage of women colouring their hair at home is at its highest point in two years, representing an opportunity to capture shopper spend that would otherwise be parted with in the salon. Meanwhile, face masks are growing by 21% in an otherwise flat skincare market as people look for little ways to treat themselves.
Consumption data can be used to point to shopper needs that aren’t being fulfilled by other products in a range and therefore how a rival brand can plug those gaps. For example, Kallo has carved a niche for itself as a healthier breakfast rice cake. In a similar vein, Italian brand Sacla is catching the attention and spend of time-conscious shoppers who still want to make their own meals by offering quicker preparation times compared with other cooking sauces.
