Retailers urged to consider shopper trends

Dubai: It might seem like a fairly monotonous task to the average consumer, but our shopping trip around the local supermarket in fact involves a blend of key mind-sets.

A new shopper study has identified four modes during our grocery shopping - the auto-pilot 'grab and go' mode, a variety mind-set that involves picking new tastes and formats, the buzz mode which is open to engaging advertising, and the bargain-hunting mind-set.

With market saturation set to hit the UAE's hypermarket sector in around five years, local retailers need to factor in these shopper trends when designing new stores, launching promotions and stocking products within a category, said an official at The Nielsen Company, which conducted the research.

Knowing how the shopper modes change between supermarket aisles and products can also help FMCG companies and marketers get leverage from their point-of-purchase marketing and stop them wasting money," said Piyush Mathur, regional managing director Middle East North Africa and Pakistan.

"When promotional activity and product launch information was analysed against survey results, we could tell which categories and products were being over-promoted, and therefore a waste of money, and which new products successfully engaged consumers' minds," he said.

Mathur said major UAE retailers are currently focusing on taking advantage of strong market growth by rolling out new stores. They lack full consideration of the shopper's mind-set because they know new stores will fill up quickly, he said.

But as the market nears saturation, retailers will be forced to take shopper mind-sets into greater consideration - such as stocking only the big brands for 'grab and go' products, while providing more choice and promotional activity for variety and 'buzz' categories, he added.

"GCC retailers are beginning to factor in shopper mind-sets, but it has to evolve further in the next 3-5 years as more and more consumers shop in hypermarkets and the market nears saturation," he said.

Research report: Consumers purchase grocery products in four modes

Consumers doing their grocery shopping are often in a grab-and-go mode, reaching for the brands they usually buy without reading the label or checking the price, according to research by The Nielsen Company.

Items such as coffee, cereal, cheese, margarine and mayonnaise fall within this mode, the research found.

The same rules do not apply in 'buzz-activated' categories such as energy and sports drinks, chocolate, ready-to-drink tea and yogurt drinks. Shoppers in this mode are actively exploring alternatives.

"Marketers need to generate 'buzz' through exciting advertising, new introductions and innovative packaging that leaps off the shelves to grab the consumers' interest and attention," said Mathur.

With variety-activated categories, auto-pilot is often switched off, especially as shoppers cruise frozen foods and cold cereal aisles. Consumers in this mind-set are bored with the same choices and are on the lookout for new product innovations. Biscuits, chewing gum and salad dressings also fall into this shopper mode.

Meanwhile, bargain-hunted categories are driven by purely price comparison and promotions. These include canned tuna, canned tomatoes, cheese, canned fruit and even pasta sauce.