CPG Chatter

With the price of peanuts on the rise and the announcement by major manufacturers that peanut butter – an American staple of families and singles  — will cost more for consumers, one has to wonder if households will be spreading the peanut butter thinner.  We think not! 

Consumers have entered into the era of ‘smart shopping’ and will think through their options and substitute other products if the timing and price is right.  Yes both LOYALTY and IMPULSE buying are down, but INFORMED buying is becoming the norm. 

Consumers now have the Internet and social media to help them do their homework.  They know how to look at shelf tags and quickly compare unit pricing.  Today’s consumer belongs to multiple loyalty programs and knows how to play one against the other.  They are being targeted with near one-on-one digital marketing campaigns. Shoppers are more flexible and plan purchases more carefully.  Like a fine-tuned purchasing department of a large organization, consumers will have multiple vendors (brands, products, etc.) on their pre-approved list. When the timing and deal terms are right, they will add to the pantry! 

This type of buying behavior can certainly be influenced by trade promotions. And the better a CPG company can track, analyze and respond, the more likely they are to capture demand.  Are you ready?

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