SymphonyIRI: Merchandising support down across almost half of all categories, new media to blame
CHICAGO — With the path to purchase evolving, merchandising has increased across just more than half of CPG categories and declined in 47% of categories, SymphonyIRI Group reported Tuesday.
The drug channel has seen the most erosion in merchandising support, with declines in 60% of the categories within the channel in 2012.
“Smartphones, digital coupons, online retailers and the Internet combined with financial pressures and shifting marketplace dynamics are forever changing how consumers shop,” stated Susan Viamari, editor of Times & Trends, SymphonyIRI. “If you want to reach and resonate with shoppers today, you need to do more than traditional in-store merchandising. Emerging and evolving technologies have enabled innovative marketers to begin reaching shoppers in their homes while they are researching products and making their lists, and then reinforcing their messages on the way to the store and in the store when consumers are making their final selections."
During the past couple of years, more than one-third of CPG categories sold considerable volume — between 30% and 50% — with merchandising support.
Part of that decline can be attributed to a lower return-on-investment associated with merchandising. The average sales lift associated with merchandising has declined across 80% of categories across all channels, SymphonyIRI Group reported. Grocery and drug channels have seen average sales lift fall across 70% and 73% of categories, respectively.
Even some of the most heavily merchandised categories had declining lift in 2012, SymphonyIRI noted. For instance, the carbonated beverages category, which sells more than 60% of its volume with merchandising support, saw lift decline by 14 points during the last year. And, Mexican foods, which sell half of its volume with merchandising support, saw lift slide more than five points during the same period.
“The ‘old way’ of doing things is simply not as impactful as it was in the past,” Viamari said. “To capitalize on new and evolving opportunities, marketers must enmesh the broad and rapidly growing array of old and new media tools at their disposal. They must take chances and not be afraid to make mistakes.”
Find us on Facebook for more insight, analysis and the latest in drug store news.
The depth of merchandising support means a great deal to consumers. Buy one get one free does very well where buy one get 50% of the second one generates a much smaller return. Savy consumers know when to stock up. Some impulse buyers might switch brands based on a small TPR, others may not. Also strong price increases over the last year may have forced consumers to rethink when to buy.
Dove joins men’s grooming trend with launch of skin care line for him
ENGLEWOOD CLIFFS, N.J. — Dove Men+Care, a Unilever men’s personal care brand, is launching a full line of cleansing, shaving, post-shave and face care products to help men care for their faces.
"Men today have a great deal to care about, from their families to their careers, but they don’t always give their personal care the same level of attention," said Rob Candelino, VP Unilever Skincare. "Neglecting to properly cleanse and moisturize their skin, or doing so but using harsh products like regular soap, all contribute to a man’s face looking tired and feeling worn. New Dove Men+Care Face products seek to help men eliminate needless torture from their grooming routine and help put their best face forward when it matters most."
The new Men+Care products are available in different solutions for different skin types, including Hydrate+ to moisturize dry skin, Sensitive+ to soothe redness and irritation and Revitalize+ to revive tired skin. Products include shave balm, shave gel and post-shave balm.
The launch of the line follows the success of Dove Men+Care body wash and deodorant/antiperspirant lines.
No comments found
CVS stocks up on Valentine’s Day items
WOONSOCKET, R.I. — CVS/pharmacy is touting its stores as a "one-stop shop" for Valentine’s Day shopping.
The retail pharmacy chain said Tuesday that stores had stocked up on items like cards and candy, including chocolates from companies like Hershey’s, Lindt, Dove, Ferrero Rocher, Ghirardelli, Godiva and others.
"Customers looking for special Valentine’s Day gifts as well as all of the holiday’s essential items can find one-stop shopping at their local CVS/pharmacy," SVP merchandising Judy Sansone said. "In addition to a wide selection of Valentine’s Day themed cards and candy, this year, we’re also offering seasonal decorations and baking essentials to inspire family fun."
Other items include special baking mixes, classroom handouts, fragrances and beauty products, novelties and specialty photo gifts.
No comments found