February 2016

TRENDING IN GROCERY

Delivering partnered marketing support services for our Clients

IntroductionWelcome to the latest edition of Trending in Grocery. This has been designed to provide an overview of recent news, innovation and any upcoming trends in the grocery sector – in order to help provide inspiration for the future.

We’d love to hear your thoughts, so please get in touch if you have any feedback, or ideas on content that would be useful to you going forwards.

Grocery in the news

Tren

ding

in G

roce

ry

Even beer is becoming more health conscious… There has been an increase in low calorie and low alcohol beers in recent years, and AB InBev who produce Stella Artois, Becks and Budweiser will start to put calorie count labels on bottles and cans of their best-selling beers throughout 2016.

Enabling healthier choicesBrands and retailers are increasingly responding to dietary concerns and public attitudes, with their communication, product ranges and packaging.

Greggs, the high street bakery, has seen success with their healthier eating ranges of sandwiches, wraps and breakfasts and plan to expand this further in 2016. They will reportedly also launch some gluten-free products.

Health and wellbeing has been a key topic for many years but

it’s interesting to see it being adapted by a

broader rangeof brands

Tren

ding

in G

roce

ry

Food is obviously a taste experience and appealingto this sense with events like sampling is a common way to help customers experience a brand before they buy. Recently a trend has emerged, using a new style of marketing aimed at stimulating the full range of senses.

Research confirms our senses become heightenedwhen blending all the different senses together, rather than targeting in isolation. Stimulating the senses in this way can impact customer behaviour, enhance product appeal and increase likelihoodto purchase.

Building a more multi-dimensional experience can utilise the right sound to make a drink taste sweeter, a scent to make a colour appear brighter and a texture to evoke feelings of comfort. For food this can enhance product taste and give a more enjoyable brand experience.

Sensorial marketing

A multi-sensory approach can help

sell a feeling, not just a product, through

engaging experiences

Apps to manage health

According to a UK Change4Life report, four-to-ten year olds consume over 5,500 sugar cubes each year, amounting to 22kg. That’s the average weight of a five-year-old! These sugar levels, sometimes over 3 times the maximum recommended amount can lead to issues for children such as tooth decay, weight gain and obesity, along with wellbeing and self-esteem issues.

Apps are becoming more commonplace to educate and manage nutrition for adults and a ‘Sugar Smart’ app has been launched by Public Health UK to encourage parents to act smarter towards their child’s sugar intake.

Tren

ding

in G

roce

ry

5 a Day

The sugar smart app has been downloaded over a million times –possibilities for retail collaboration as

previously with

Health apps have even been launched in the banking sector, such as the CBD Active Saver from the Commercial Bank of Dubai. This helps encourage fitness and health amongst consumers - with the added bonus of providing financial benefits as a reward. Through the app customers can earn higher interest rates on their savings based on the number of steps they take each day.

Smarter grocery shopping

Tren

ding

in G

roce

ry

Smart technology is not new, there has been an explosion of gadgets designed to make life easier. As yet kitchen appliances have not been a focus of innovation, but the Family Hub Refrigerator unveiled by Samsung at the Consumer Electronics Show in January looks set to change that…

The idea behind the fridge is that is allows people to shop directly from their kitchen, through a touchscreen panel with web connectivity on the door. The screen can also be used to search for recipes.

Another unique selling point, which takes home shopping to a new level is a camera inside the fridge which takes a photo each time the door is opened and closed.

This lets people know what items need re-ordering, saving time and helping avoid any forgotten items. Data can also be sent to smartphones, allowing users to view inside the fridge and order items when they’re not at home.

Samsung have partnered with US stores FreshDirect

and ShopRite. It will be interesting to see this develop, and its

expansion intothe UK

One-to-one support

Grocers spend a lot of time on helping customers – in terms of how they shop, prepare food and reduce waste. This example from Dutch supermarket chain Albert Heijn in December 2015 shows how a more personal service can be provided, addressing topical consumer concerns and providing a helpful solution.

Albert Heijn provided cookery advice to customers via WhatsApp during the Christmas period, between the hours of 10am and 10pm on December 24, 25 and 26. Culinary experts from the brand’s Allerhande recipe platform were on hand to offer one-to-one support for individual customer queries in real time, whilst customers might be preparing Christmas meals.

According to Albert Heijn 65% of Dutch consumers regularly ‘fail’ with at least one aspect of their Christmas food preparation. This service was aiming to prevent that, by giving a helping hand to their customers and make cooking for Christmas less stressful.

Showcasing expert credentials can build loyalty in an environment often based on price

Market dataEmail marketing

FOUR in FIVE consumers view email marketing as one of the less intrusive communication channels

of marketers are currently using or intend to use email personalisation within the next year

91%of consumers would prefer to hear about offers and deals through email marketing

70%

Real time interaction is becoming more prevalent and powerful. Brands can use location data, to send emails targeted with the right offer, at the right time

of marketers say their subscribers read emails on mobile devices at least 50% of the time

1/3

Email marketing with countdown timers, weather forecasts and social media feeds have been used to create more urgency, and a stronger experience

Tren

ding

in G

roce

ry

The top three most effective emails are mobile opt-ins (76%), birthday emails (75%), and transactional emails (74%)

Areas of business planned investment increases in 2016:

– Email marketing

– Organic social media

– SEO

– Paid Search

59%

53%

51%

48%Source: Mintel 2016, Campaign Monitor 2016

Functional packaging: We’re increasingly seeing packaging change to cater to consumer eating habits, and act more functionally. Examples are eating-on-the-go packaging solutions or for sharing occasions (Walkers Tear ‘n’ Share launch 2016).

#Trending products

Tren

ding

in G

roce

ry

Seaweed:It’s been hailed as the new Kale, in other words the trendy vegetable of 2016. Seaweed has high nutritional benefits, is sustainable to source and can be used in a variety of ways. Expect to see it more and more this year.

Vegetables as main meals:Often seen as an accompaniment, vegetables are now more widely featured on restaurant menus as dishes in their own right. If this translates into retail it will offer health benefits for customers, along with significant cost savings on meat dishes. Potential opportunities for brands could include specially designed sauces and herb offerings.

Range premiumisation:Brands are differentiating and introducing themselves to new audiences with personalised packaging, and premium range extensions. Kit Kat launched a luxury version in January (Chocolatory Moleson). Inspired by European mendiant chocolates and topped with almonds and dried cranberries, this will only be sold in speciality stores in Japan.

Market inspiration

Tren

ding

in G

roce

ry

Brand engagementThis display for PepsiCo in the Netherlands supported the Grab your Flavourite promotion, around promoting the wide range of traditional and new flavours.

Freezer messagingThese freezer displays showcase products and offers directly at the point of purchase to disrupt shoppers and perhaps alter purchase decisions.

Fins need to have strong attachment tools, to withstand customer interaction. These clamps provide enhanced stability.

POS Activity

Hellmann’s have utilised an over door unit to act in the same way as a clip strip, to promote mayonnaise alongside complementary products.

It would be interesting to closely monitor if this unit actually attracts or impedes customers shopping from the

freezer

The spinning wheel brings interaction,

making product selection into a bit of a game that is easily

run from store

Tren

ding

in G

roce

ry

Seasonal aislesLarge header cards give impact to seasonal campaigns and transform the look of aisles. Implementing larger point of sale items ensures a strong yet uncluttered look, supported by some items such as hanging signs to catch the eye and direct traffic down the aisle.

POS Activity

These novelty products seen in Aldi offer

quirky gifts for a point of difference

info@hhglobal.com

© 2015 HH Global Ltd. - All Rights Reserved. HH Global, the HH Global logo and the HHub logo are registered trademarks or trademarks of the HH Global Ltd Group of Companies. All other trademarks are the property of their respective owners. HH Global is the trading style of the HH Global Ltd Group of Companies. HH Global Limited. Registered Office: City House, Sutton Park Road, Sutton, Surrey. SM1 2AE. United Kingdom. Registered in England & Wales No. 04680562.

Get in touch