Tag: shopper

From clicks to carts: Is retail media CPG’s e-commerce future?  

Posted on by sandra

How do CPG products fit into today’s ever-changing, multi-touchpoint digital landscape? According to an EyeSee Global TikTok study, if a video ad features a CPG product, the brand is 32% more likely to be remembered, and TikTok has a significant inspirational impact on its users.  

Despite this, buying CPG items online seems counterintuitive due to the high delivery costs. Retail media steps in to address this by aiming to enhance product awareness at the point of purchase. Yet, uncertainties persist regarding retail media’s scope, its impact on retailer-brand dynamics, and its long-term implications for omnichannel consumer behavior. 

With all of this in mind, the latest Deep Dive episode featured Zlatko Popovic, Global eCommerce Commercial Manager at Barilla, who shared his thoughts on retail media and revealed the secret to Mulino Bianco’s successful e-commerce and omni-channel campaign. Along with Zlatko, our Digital Research Specialist, Mila Milosavljevic, debunked some common misconceptions about CPG and e-commerce based on her rich market research experience. Listen to the full episode here. 

The Rise of Retail Media 

With e-commerce platforms experiencing unprecedented growth, retail media provides brands with the opportunity to showcase their products directly to consumers while they are in the purchasing mindset. As Zlatko Popovic explains, retail media is becoming increasingly important in marketing strategies due to its ability to consolidate various parts of the consumer journey into one platform. This consolidation simplifies marketing efforts for brands and marketers, making it easier to create brand awareness and generate sales in a single place. 

However, he also points out that some shortcomings of retail media include data governance issues and the evolving dynamics of brand-retailer relationships.  

To mitigate these challenges, organizations need to invest in understanding consumer behavior across various touchpoints, including social media, and strike a balance between traditional and digital marketing strategies. 

The Importance of Market Research 

According to a survey conducted by Deloitte, 63% of marketers cite data-driven marketing strategies as crucial for success in today’s competitive landscape, highlighting the importance of leveraging market research to inform decision-making (Deloitte). By identifying trends, anticipating consumer needs, and refining messaging based on market research findings, brands can ensure maximum impact across all channels. 

Mila Milosavljevic reminded us that when launching a product, manufacturers usually focus on in-store, designing eye-catching displays, shelf standouts, banners, endcaps, etc. in order to engage potential shoppers. But when it comes to e-commerce, product presentation is typically limited to fitting into the retailer’s current layout and relying on a generic description.

It is only natural to assume that similar testing tools and frameworks will be required when developing content and strategies for retail media, as we are essentially talking about an e-commerce retailer environment with even more space for product promotion.  

Furthermore, Zlatko reminded us that market research serves as a common ground and foundation for quality relationships between retailers and brands in terms of category management and presentation in digital environments.  

Case Study: Molino Bianco’s Gift Package Campaign 

  One notable example of successful omni-channel integration is the case of Molino Bianco’s gift package campaign. By analyzing product reviews and consumer feedback, Molino Bianco identified a demand for branded gadgets among its customers. Leveraging this insight, the company launched a series of gift packages tailored to different occasions, such as Christmas, Easter, and Valentine’s Day. This agile approach not only drove sales but also reinforced the brand’s presence across multiple touchpoints, from e-commerce platforms to traditional retail outlets.

“When that happened, everyone began to view the Mulino Bianco project not just as an e-commerce activity, but as a full marketing initiative. Consequently, various brand teams began incorporating similar initiatives into their annual plans, specifically targeting e-commerce to align with the marketplace proposition effectively.”, Zlatko Popovic, Global eCommerce Commercial Manager at Barilla 

Conclusion 

In conclusion, the integration of retail media and market research is essential for achieving a strong product omni-channel presence. By harnessing the power of retail media platforms and leveraging insights from market research, brands can create personalized experiences that resonate with consumers across all touchpoints. In an increasingly competitive marketplace, mastering omni-channel integration is key to staying ahead of the curve and building lasting relationships with consumers. 

Eager to learn more? Here you can read all about Understand online pack shot behavioral testing.

    Road to growth: Understanding travel retail consumer behavior

    Posted on by sandra

    by Koen Philippaerts, New Business Development Manager at EyeSee

    I just returned from visiting my family in Europe, and aside from having a nice holiday, I realized that the time I spent waiting on my flight changed my purchasing habits. In the duty-free zone: I found myself wandering around a product category I am not usually interested in, eating lunch when I usually eat breakfast, and purchasing some tech gadgets I did not intend to buy. 

    Conde Nast Traveler’s article says that people travel the skies, rails, roads, and seas to tick off major bucket-list moments. So, shifting behavioral patterns and traveling go hand in hand, and a big part of that is the travel retail centers we visit along the way. It is where every journey begins and ends; it is a necessity, but it is also important for travel retail to be convenient, pleasant, and enjoyable.  

    So, does it come as a surprise that Statisa predicts that the global travel retail market will reach 174.9 billion US dollars by 2030?

    How is travel retail different?  

    Travel retail centers are places where consumers are ready to try something new, and brands must be able to give their best and use the opportunity to introduce themselves to new customers, showing their loyal ones that their favorite brand goes where they go. 

    A Statista survey shows that:

    • 48% of travelers think that a variety of products makes Duty Free a great place for shopping  
    • 47% of travelers say it is a great place to try new brands  
    • 45 % are more motivated to buy Duty-Free exclusives  
    • 43 % consider travel retailers a great place to buy gifts  

    Unlike standard ones, travel retailers are one of the main distribution channels in the beauty industry (if beauty retailers are put aside). The main categories travel retailers feature are perfume and cosmetics, liquor, confectionery, tobacco, food & beverage, electronics, accessories (bags, watches, eyewear, etc.) 

     When consumers enter the duty-free zone, in most cases, they have some free time on their hands before onboarding starts. Nicely displayed brands will get anyone’s attention, and to be honest, probably some last-minute gift shopping will be part of spending that free time.  Unique display designs can help brands stand out in product displays, as Galvinet Whiskey did when they displayed their bottle as a museum artifact. It was beautifully lit and covered with a protective glass box. All of this was in line with “tradition” as one of their core values: they are Scotland’s oldest legal whiskey distillery. Not only that, from the front of the liquor bottle display stand to the back of the product packaging, the Roman numerals 35 are emphasized. Any Glenlivet enthusiast and collector would instantly know this means a rare bottle of liquor because it’s not in the brand’s collection.   

    Graphic solutions are not the only way to shed light on more information in places where people have some extra time to kill. Sometimes that can be shop assistants who engage in further conversation with consumers. If out-of-the-box design solutions and shop assistants handling your brand’s key values sound risky, note that EyeSee has solutions for testing both.  

    However, all of this is just the tip of the iceberg when it comes to possible brand touchpoints in travel-type environments. Purchases can be made on planes. There are also all sorts of marketing materials that consumers can pass by: from airplane magazines, brochures, and leaflets to much bigger ATL prints or on-screen ads. The possibilities are endless!

    What can we learn from travel retail? 

    There are many types of point of sales displays: 

    • Counter displays  
    • Free-standing display units  
    • Product displayed quickly units  
    • Light boxes  
    • Gravity feed display units  

    The creative potential of these displays is limitless. Recall the enormous cardboard fence constructed from KitKat bars and the point-of-sale box brimming with an abundance of KitKats, a temptation to dive into. And the best thing about it is that it would work not only for travel retailers but in supermarkets too. 

    Over the last couple of years, the market research industry has seen a steady rise in online context testing solutions such as virtual stores, which offer cost-efficient and fast findings but also boast very high validity. Apart from providing stable results even in changed circumstances, Virtual shopping has a very high correlation with real shopping behavior – as much as 0.8-0.9.   

    EyeSee’s in-house design capabilities enable the customization of any type of virtual shopping environment. Furthermore, a multitude of pre-built, standardized shelves are already accessible across over 80 categories. State-of-the-art graphic solutions can be designed in 2D, 2.5D, and 3D models and provide high levels of consumer immersion that help produce authentic insights.

    In conclusion  

    Understanding consumer behavior in travel retail serves as a valuable compass for brands seeking inspired growth. The unique environment of duty-free zones, characterized by ample free time and consumer openness, offers an exceptional opportunity for brands to engage and leave a lasting impression.

    Brands that understand and leverage these unconventional retail rules stand to unlock untapped potential and navigate non-standard points of sale successfully.  As the market research industry embraces virtual shopping solutions like EyeSee’s, the prospect of testing concepts and display designs becomes more efficient, cost-effective, and aligned with real shopping behavior, emphasizing the importance of staying ahead in an evolving consumer landscape. 

    Are you eager to know more? Read Everything you didn’t know about the design of in-store displays.

      Planograms: Recession-proof your shelves

      Posted on by sandra

      Unpredictable times require highly predictive insights as smart shopper optimization can make the difference between winners and losers of inflation. In our latest podcast episode, we sat down with top minds to explore in-store strategies. EyeSee’s seasoned researchers Milica Kovac and Ana Golubovic were joined by Shalini Sahi, Americas Insights Lead for pladis Global to bust some of the most persistent planogram myths.

      Is it time for category management 2.0?

      Internal brand and category management systems often pre-decide to put certain products in specific category segments and shelves. But is that a solid practice? EyeSee’s shopper studies stress how much it is important to localize the category story but also certain brand product placements within each of our markets. Product affiliation to a certain segment is conditioned by consumer perception, consumption habits and even cultural differences between markets.

      That localization piece of the consumer understanding is very important, and the understanding is obviously driven by consumption, and it is consumption-based. The insights industry makes a lot of assumptions around this topic, but it is highly important to know precisely, claims Shalini.

      Delisting products – is it worth it?

      Many brands are reducing their portfolios under post-pandemic and inflationary pressures. However, there are several other strategies to consider. During times like these, producers need to make sure that they are optimizing to deliver the best possible product with the right value to the consumer.

      Winners will go beyond just cutting down; brands need to rethink and restructure their offers. While the first instinct is to reduce or freeze the innovation budgets, new approaches in promotion, packaging and actual product might be the best tactic to adapt to the new situation and end the crisis in the best possible place.

      Does brand blocking always work?

      Brand blocking is one of those well-established tactics in product assortment which both retailers and consumer brands consider a safe choice. Of course, in many cases this approach works favourably for all parties – brands and categories and, most importantly, shoppers – because it offers a much needed simplicity in finding the right option by matching the product sizes, shapes, colors on the shelf. However, what can be seen across categories, especially those with lots of product offerings, huge brand blocks lead to weaker navigation and even trade down because that type of assortment prevents consumers to compare between brands. Instead it is priming them to compare within one brand and then look for the cheaper option, more volume and eventually trade down.

      Now more than ever, it is crucial to stay close to the consumers and rely on predictive insights to navigate your inflation adjustment. If you want to explore this topic in more detail, listen to the full discussion.

        Let’s not sugarcoat it: Here’s how to make placement and promotions work in a restricted market  

        Posted on by Dina

        Amongst the many disruptors the markets across the world have felt over the last few years, the UK government introduced new measures on food High in Fat, Salt, and Sugar (HFSS food) – putting in place restrictions and rules on the placement and promotion in both in-store and online ‘impulse’ locations. 

        What will this change for FMCG brands going forward? And more importantly, how can you not only prepare for but operate within this shift? To help brands brace and adapt to the various adjustments in their business, we tackled how brands can:  

        Purchase trigger points can be in unexpected places

        In an effort to fight unhealthy dietary habits, HFSS food has been restricted from aisle ends, store entrances, and checkouts in brick and mortar across the UK. While these locations may be prominent – they are not the end-all-be-all for product placement. Since 80% of shopper purchase decisions are made subconsciously, understanding their decision-making process is an intricate science. Placing items in highly visible areas to trigger that impulse urge was the obvious go-to – but what can your brand do now when these trusty locations are no longer an option? 

         For one, have more faith (but also reliable insights) in shoppers’ intuition and logic – employ a flexible and agile research approach that allows you to test in virtual yet realistic shopping environments. Then, by leveraging them, you can map out the entire consumer decision-making process and the locations shoppers naturally gravitate toward to find your category/product with Behavioral Decision Trees.  

        They pinpoint the reasons behind particular product selections, behavior switches, trade-offs, and sources of loyalty, all while evaluating the overall shopping experiences – and ultimately help you understand how to assist their journey in the changed store landscape. The same Decision Tree tech can be used for testing in digital environments by recreating e-commerce shopping platforms and assessing the online consumer journey – as the placement restrictions will also apply to online equivalents of in-store spots and anything from entry and payment pages, landing pages for other categories, shopping baskets, and pop-ups will be off-limits for HFSS food products. Ultimately, by using Decision trees that leverage virtual shopping, you boost the chances of not missing out on the crucial triggers and touchpoints by 40%. 

        It’s time to go beyond product-based advertising 

        Come January, further restrictions will be in force – bans for HFSS food advertising on TV and restrictions on paid-for online advertising before a 9pm watershed. The advertising landscape is already highly competitive, especially in the social media domain, as we know that consumers scroll through their feeds at the rapid speed of 1-3 posts per second. So, a change like this means that marketers now have to consider a different approach to creating campaigns – perhaps indicating that re-adjusting the focus on the brand itself instead of the product and translating it into engaging ads is one such strategy.  

        Past data taught us that one of the most effective ways to boost purchase intent is to show both brand and product in an ad – so, making the transition to reduce or put a halt on product-centric marketing seems tricky if not executed correctly. A safe way to make sure consumers still resonate with your social media ads and TV commercials and opt for your products (even without showing them) is to test them in a controlled environment that feels as close to the real thing as possible.  

        With a proprietary testing solution and research methods, we have replicated feeds of all major social media platforms to test any ad type and format in the space it would naturally be seen in – and tap into the actual performance and sales potential.  

        Methods like Facial Coding are 2x better at predicting the viral potential of videos than any combination of survey questions – enabling a full-scope understanding of what works and what doesn’t, what can be tweaked and what about your brand grasps viewers’ attention – which in turn, will help you gain a competitive edge and fuel further differentiation between your brand and others.   

        For some categories, HFSS bans are a game-changer 

        While HFSS bans impose challenges on many categories and brands, we have seen that they simultaneously open up new possibilities for others. For example, when it comes to the store environments, the once HFSS-designated in-store spots and displays have now been filling up with other products like alcoholic beverages, cleaning products, and soft drinks.  

        Then there are brands like PepsiCo’s Quaker Oats, Pringles, and Mondelēz International, who saw this as an opportunity to embrace innovation and create a new and HFSS-compliant range of products that would still satisfy the same consumer need as its HFSS predecessors. 

        Inflation has already caused major shifts in how consumers choose to spend their money –  and even without the new restrictions, many brands have embraced new product development and opted to rethink their portfolios. However, as a rule, innovation can be risky (more than +80% of new products fail), but volumetrics and market share projection can empower your NPD process by estimating the success of any new product launch. In fact, there are a few levels of studies that utilize the virtual shopping solution (that shares a 0.8 correlation with real shopping behavior) and behavioral methods to ensure the risk of an unsuccessful launch is significantly minimized by: 

        • Screening product concepts to identify the most promising ones  
        • Gaining the learnings to optimize the concepts for further development
        • Validating the optimal concepts and evaluating their future sales potential  

        Summary

        As with any change that comes, there are those who embrace it and adapt – and those who fall short. The HFSS restrictions in the UK are no different – they present a sea of opportunities and possibilities to rethink and develop innovation and rekindle the relationship with your consumers for those who are interested in winning.  

        Relying on a behavioral research approach to guide you during these transforming times will equip you with the predictive learnings needed to make these sound decisions – and reduce the risks that come with the inevitable shifts in the market.  

          Behavioral insights: Backbone of successful co-branding initiatives

          Posted on by EyeSee Research

          Written by Jason Bradbury, Sr. Director of Client Service at EyeSee

          I am a simple individual and perhaps a creature of habit – choosing peanut M&Ms as my go-to sweet snack, relying on Cinnabon k-cups for my daily coffee fix and letting Apple technology keep me well-organized and connected.

          While data (and life) confirm I am not a lone example of a consumer having favorite brands, recent research shows that these loyalties are first to go as we adjust to the mounting pressures of the global recession. Apart from tinkering with variables of pricing and volume, there are other strategies your brand might explore to preempt eroding loyalty.

          In fact, there’s a good chance one of your new favorite products may just be the result of two separate brands working together – the fruit of a co-branding or licensed partnership initiative. If your goals for 2023 include:

          • Reconnecting with or Expanding your consumer base;
          • Evolving your brand identity or reputation;
          • Innovating the product;
          • And/or all the above…

          …then co-branding may be the right strategy for you! However, this approach does carry certain risks and mitigating them should be a top priority. Here’s how behavioral research can help.  

          Know your shifting consumer and (re-frame) their needs

          75% of brands could disappear tomorrow … and most consumers wouldn’t care. On top of this, shoppers are already actively engaging in brand-switching behavior due to rising inflation. By exploring collaborations within or across categories, you are opening a whole world of possibilities to either deepen the connection with existing consumers or to expand your base.  

          Well-known consumer products entering into a partnership with Disney is one such example.   Disney-licensed characters are displayed on Huggies diapers, Band-Aid adhesive bandages and even Gucci collections! Disney characters are iconic, instantly recognizable, and intergenerational.  Through these collaborations, these brands have managed to overcome their challenges in creating appeal and eliciting an emotional response, which has an enduring effect on retaining brand loyalty but also helps draw consideration among new potential customers.

          The journey of successful co-branding begins with understanding the intersection of consumers and their behaviors. Pre-testing your advertising materials (online videos, TVC, social media posts, etc.) and packs can give you crucial insight into how consumers will see, react, evaluate, and if they would ultimately be inspired to purchase your co-branded product. A mixed-method approach, where behavioral methods of eye tracking, facial coding and virtual shopping are combined with surveys, can measure such preferences with as much as an 80% correlation with actual shopping behavior.

          Introduce agile reality-checks to your co-branding initiative

          On average, less than 20% of product and pack innovations prove to be a success. Adopting an iterative approach and testing at each step of development increases the chances of yielding a positive result.

          More specifically, there are 3 main points where behavioral research can play a big part in shaping your co-branding initiative:

          • Screening: start testing early in the process (even concepts and drafts!) and narrow down your options. Leverage more granular sub-category criteria, including usage frequency, understanding brand awareness and openness to purchasing the product, and even filtering on geolocation. With every added testing criterion, the potential risk of a new launch gets smaller.
          • Test in context: use virtual simulations of stores and retail environments to tap into authentic consumer behavior with high accuracy. The same goes for e-commerce – any website or webpage, such as Amazon, Target, Kroger can be replicated. Having the ability and agility to put respondents in a context that feels familiar and authentic is key in estimating the success of the co-branding strategy.
          • Volumetric and Market share projection: test claims, pricing, and other aspects of launch to estimate in-market success, switching behavior and opportunities for driving share within the first year.

          Make co-branding resonate: Optimize at every touchpoint

          Experts concur that having a seamless and experience-driven path to purchase is more important now than ever. Shoppers’ expectations are changing – and brands must be aware of the hyper-sensitivity of their customers. Thus, co-branding can be an effective tool to not only enhance brand or product communication, but could also serve as a potential visual cue for highlighting variety or sub-line differences.

          Additionally, there are many widely overlooked opportunities within omnichannel – optimizing touch points such as e-commerce pack shots being one of them. Hero images can significantly boost sales by attracting more attention. They garner 5% higher visibility than Standard Package Designs on desktop (with even greater potential on mobile because of the smaller screen size) and can increase sales by about 15%. Considering these key touchpoints when implementing a co-branding strategy can significantly boost your chances of success.

          Summary

          Co-branding is all about expanding opportunities to connect viscerally with the consumer. By introducing new propositions and potentially enhancing communication by leveraging the established equities of each brand, you are generating broader interest and/or emotional response, which has a positive effect on consumer retention.

          Adopting behavioral methods and testing within contextual shopping environments allows more authentic and predictive insight into how your co-branded product will perform. This type of feedback minimizes the risk of unfruitful investment and represents a definite advantage – even more so under the pressures of recession, where consumers are increasingly fickle and marketing budgets precious.

            Thanks for your interest!

            We”ll get back to you promptly