how do cpg brands impact usa retailers?€¦ · what does this mean for my brand strategy? 01 | how...

CPG manufacturers spend a huge amount of time and resources to optimize the last few feet in the path to purchase: i.e. the in-store process that determines a large proportion of the �nal product choice.

Analysts spend hours assessing sales trends and product performance. Categories are �ne-tuned, merchandising proposed, promotions developed. Each square foot of retail in a supermarket must be the most contested real estate in the world.Manufacturers must put forward their thinking with a category mindset. Fundamentally this is “thinking like a retailer” so that plans are motivating to their supermarket buyer to adopt. They have to be about growing the cake, not just sharing it out di�erently. Retailers are locked in their own intense competitive battle. Supplier ideas have to recognize that need.At Shopper Intelligence we talk about the three de�ning goals of retail as:

1. Tra�c – wining the basket, persuading a shopper to come to this store, rather than another;2. Spend – growing the basket of the shopper already in the store – increasing units or price per unit;3. Conversion – never losing an opportunity: leaving it “on the table” for another store to pick up later.

For 4 years we have been tracking performance across all the USA Grocery, Mass, Club, Dollar, Drug and Discount channels on 1 and 2. Now in 2019 we are launching a measurement process to provide �rst ever store-wide data on 3.In this white paper we look at our huge USA shopper survey database to understand what brands are driving Tra�c and Spend. Brands that can show their ability to do one, or the other, or both, should win more share of retailer attention.

How do CPG Brands impact USA Retailers?

01 | How do CPG Brands impact USA Retailers?

LowDifferentiation

HighDifferentiation

HighInten onality

Low

Our Model.they are willing to spend time on the category, that the category creates more loyalty to the store and that they don’t mind paying more for better quality in that category.Intentionality is a combination of greater pre-store planning and the category being high on the mental list – a main


This builds a four-box matrix;a brand in one quadrant has characteristics that give guidance how to exploit it best.

Example implied strategies in the matrix:


LowDifferentiation

HighDifferentiation

HighIntentionality

LowIntentionality

Price: Focus on premium over price Price: Mix of value and premium focus

Product: Opportunity for private labellead on Innovation

Product: Rotate range and focus on New

Place: Simple and easy to shop, use theatre tocreate destination

Place: Use display / theatre to attract

Promotion: Promote pre-store to drive Trip Promotion: Use multi-buy to drive average weight of purchase

Price: Use price to attract shoppers

Product: Avoid obvious range gaps

Place: Focus on clear standout and navigation

Promotion: Use high / low strategy to attract

Price: Lead on value

Product: Lead on availability

Place: Easy to find and easy to shop

Promotion: Keep promotions low level

6.0

7.0

8.0 9.0

2.0

4.0

3..0

Maxwell House (Coffee)

Pampers Swaddlers (Diapers & Training Pants)Purina Cat Chow (Cat Food - Dry & Moist)

Great Value (Sugar & Sweeteners)

Diet Pepsi (Soft Drinks)

Great Value (Disposable Plates)

Quilted Northern (Bathroom Tissue)Dairy Pure (Milk)

All (Laundry Detergent - Liquids & Powders)(Laundry Detergent - Liquids & Powders)

Drive the Trip Outlier Brands


The Drive the Trip quadrant in our brand model is dominated by own label because of the large presence of chill food here, but brands that are strong on these dimensions include:

• Diet Pepsi (Soft Drinks)• Dairy Pure (Milk)• All (Laundry Detergent - Liquids

& Powders)• Quilted Northern (Bathroom Tissue)• Maxwell House (Co�ee)• Great Value

(Disposable Plates)

• Great Value (Sugar & Sweeteners)

• Purina Cat Chow(Cat Food - Dry & Moist)

• Pampers Swaddlers(Diapers & Training Pants)

3.0 4.0 5.0 6.0

2.0

4.0

3..0

Tostitos (Dips & Spreads)

M&M's (Checkout Chocolate Candy)

Mentos (Checkout Gum & Mints)

Smartfood (Popcorn) Triscuit (Snack Crackers)

Banquet Brown'N Serve(Sausage)

Oreo (Cookies)

Alexia (Frozen Potatoes & Onion Rings) Kettle Chips (Potato Chips)

Klondike (Ice Cream Novelties)



Alexia

Banquet Brown'N ServeBanquet Brown'N Serve(Sausage)

Triscuit (Snack Crackers)

Oreo (Cookies)

Drive the Basket Outlier Brands


Drive the Basket quadrant includes more impulsive brands in everyday categories, that attract additional sales for shoppers already in the store.

• M&M's (Checkout Chocolate Candy)• Mentos (Checkout Gum & Mints)• Smartfood (Popcorn)• Alexia (Frozen Potatoes &

Onion Rings)• Triscuit (Snack Crackers)

• Kettle Chips (Potato Chips)• Klondike (Ice Cream Novelties)• Tostitos (Dips & Spreads)• Banquet Brown 'N Serve

(Sausage)• Oreo (Cookies)

3.0 4.0 5.0 6.0

6.0

5.0

Häagen-Dazs (Ice Cream Novelties)

Werther's Original (Sugar Candy)

Lindt (In Aisle Chocolate Candy)

Borden(Snack Cheese)

Kind (NutritionalPortable Food)

OPI Cosmetics - Nails)

Cover Girl(Cosmetics - Lips)

Dole (Single ServeShelf Stable Juices)Celestial Seasonings (Tea)

Pepperidge Farm (Cookies)

Chocolate Candy)

Dole (Single ServeShelf Stable Juices)Dole (Single ServeShelf Stable Juices)


6.0Cover Girl

(Cosmetics - Lips)

Oreo (Cookies)

Inspire Me Outlier Brands


The Inspire Me quadrant is the arena for treats and indulgences where brands tend to be strong.

• Werther's Original (Sugar Candy)• OPI (Cosmetics - Nails)• People (Checkout Magazines &

Newspapers)• Lindt (In Aisle Chocolate Candy)• Cover Girl (Cosmetics - Lips)

• Pepperidge Farm (Cookies)• Häagen-Dazs (Ice Cream Novelties)• Celestial Seasonings (Tea)• Borden (Snack Cheese)• Dole (Single Serve Shelf Stable Juices)• Kind (Nutritional Portable Food)

6.0

7.0

8.0 9.0

6.0

5.0

Earth's Best (Infant Formula)Organic Valley (Specialty Cheese)

Chanel(Fragrances Womens) Olay

(Hand Cream & Body Lotions)Axe (Women's Deodorant & Antiperspirant)

Tyson (Fresh Beef)L'Oreal (Cosmetics - Nails)

Avery (Office & School Supplies)

Clean & Clear (Cosmetics - Facial Makeup)Attends (Adult Incontinence)

Gatorade(Energy & Protein Bars)

Hartz (Cat Treats)

L'Oreal (Cosmetics - Nails)L'Oreal (Cosmetics - Nails)

Organic Valley

Olay

Hartz (Cat Treats)Hartz (Cat Treats)

(Energy & Protein Bars)

Hero Outlier Brands


The Hero quadrant has brands that are planned and also command premium attitudes, so can be an important driver of store loyalty, worthy of extra investment and innovation.

• Earth's Best (Infant Formula)• Hartz (Cat Treats)• Organic Valley (Specialty Cheese)• Axe (Women's Deodorant & Antiperspirant)• Olay (Hand Cream & Body Lotions)• Clean & Clear (Cosmetics - Facial Makeup)• Attends (Adult Incontinence)• Chanel (Fragrances Womens)• Avery (O�ce & School Supplies)• L'Oreal (Cosmetics - Nails)• Tyson (Fresh Beef )• Gatorade (Energy & Protein Bars)

3.0 4.0 5.0 6.0

7.0

8.0 9.0

6.0

2.0

5.0

4.0

3..0

Earth's Best (Infant Formula)Organic Valley (Specialty Cheese)

Chanel(Fragrances Womens) Olay

(Hand Cream & Body Lotions)Axe (Women's Deodorant & Antiperspirant)

Tyson (Fresh Beef)L'Oreal (Cosmetics - Nails)

Avery (Office & School Supplies)

Clean & Clear (Cosmetics - Facial Makeup)Attends (Adult Incontinence)

Gatorade(Energy & Protein Bars)

Hartz (Cat Treats)

Tostitos (Dips & Spreads)

Maxwell House (Coffee)

Häagen-Dazs (Ice Cream Novelties)

Werther's Original (Sugar Candy)

People (Checkout Magazines & Newspapers)

Lindt (In Aisle Chocolate Candy)

Borden(Snack Cheese)

Kind (NutritionalPortable Food)

OPI Cosmetics - Nails)


Dole (Single ServeShelf Stable Juices)Celestial Seasonings (Tea)

Pepperidge Farm (Cookies)



Smartfood (Popcorn) Triscuit (Snack Crackers)

Banquet Brown'N Serve(Sausage)

Oreo (Cookies)

Alexia (Frozen Potatoes & Onion Rings) Kettle Chips (Potato Chips)

Klondike (Ice Cream Novelties)Pampers Swaddlers (Diapers & Training Pants)

Purina Cat Chow (Cat Food - Dry & Moist)

Great Value (Sugar & Sweeteners)

Diet Pepsi (Soft Drinks)

Great Value (Disposable Plates)

Quilted Northern (Bathroom Tissue)Dairy Pure (Milk)

All (Laundry Detergent - Liquids & Powders)

Chocolate Candy)

Dole (Single ServeShelf Stable Juices)Dole (Single ServeShelf Stable Juices)


6.0Cover Girl

(Cosmetics - Lips)

L'Oreal (Cosmetics - Nails)L'Oreal (Cosmetics - Nails)

Organic Valley

Olay

Hartz (Cat Treats)Hartz (Cat Treats)

(Energy & Protein Bars)



Alexia

Banquet Brown'N ServeBanquet Brown'N Serve(Sausage)

Triscuit (Snack Crackers)

Oreo (Cookies)

(Cookies)(Cookies)Oreo (Cookies)

(Laundry Detergent - Liquids & Powders)

Store Role Model Complete


Hero Outlier Brands

Drive the Trip Outlier Brands Drive the Basket Outlier Brands

Inspire Me Outlier Brands

If you know the dominant characteristics of what your brands’ shoppers bring to the overall store, you are better placed to propose the right shopper marketing solutions, brand strategy, and innovations. Proposals that your retailer will recognise as bene�cial to their business. You can position your thinking as being focussed on creating genuine business improvement, rather than cannibalisation. Growing the cake. This thinking helps your buyer argue internally for resources as he/she competes with all the other categories across the store. Understanding what your brand and the category together can uniquely contribute to the store opens up the poten-tial for a mutual opportunity that the retailer is more likely to agree on.

What does this mean for my brand strategy?


Step 1Identify the role of your category overall, compared to the rest.

Step 2Understand your brand role within the category (it may be slightly di�erent, particularly to private label).

Step 4Identify your retailer's overall strategy and needs (what are their top down priorities?).

Step 5Find the alignment between your brand characteris-tics and your retailer’s strategies. Look for the sweet spot where both business can gain the most.

Step 3Explore any nuances between di�erent segments or shopper types - look for outliers. For example, premium items often show very di�erent shopper behaviours. Or small basket, top up shoppers may be di�erent.

Jason Smith Managing [email protected]

Bill BeanEVP Research and [email protected] 917 750 6291

www.shopperintelligence.com

MethodologySample in 2018 was 294,000. Fieldwork was carried out February – June 2018 nationally.

To find out where your brand sits on the matrix, or to understand own label’s presence contact us.

how do cpg brands impact usa retailers?€¦ · what does this mean for my brand strategy? 01 | how...

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