Data Impact by NIQ’s Post

As consumers cut back on expenditures, premium brands face an existential question: Should they shift their differentiated position to a low-price message or focus on their unique value and distinctive benefits? For example, should BMW shed its hundred-year-old image of being known for producing high-quality, meticulously crafted cars—"The Ultimate Driving Machine"—to become low price? Would that approach even work? When premium brands try to increase market share by going downmarket while retaining their reputation for quality, they often confuse customers, dilute brand meaning, and allow competitors to claim the title. Steve Jobs knew this challenge when he returned to Apple for his second stint at the helm. Apple was in bad financial shape, and Jobs faced intense pressure to lower prices to compete with cheaper mass-market products. His response to investors: “There are some customers which we chose not to serve." Many years later, Apple tried to go downmarket with a cheaper iPhone, it failed because it was antithetical to what the brand stood for. When Harley-Davidson made cheaper products, it nearly bankrupted the company and destroyed one of America's greatest brands. I empathize with Whole Foods's challenge to address the "Whole Paycheck" perception, but instead of trying to erase this clever, sticky, and indelible cultural meme, I suggest leaning into this perception and owning it in a way that turns it into a brand advantage. Target did this for a while with "Tarjay," the faux French accent meme that reminded customers their products were decidedly chic but affordably worth it, distinguishing them from other mass-merchants.  Some will say food is different, but if Wegmans decided overnight to become a low-priced brand, it would erode the incredible market value they've established over many decades. Secondly, it would fail because there's too much perceptual equity in being a deliciously differentiated brand. Instead, Wegmans continually reminds its loyal customers why the brand is worth the slight premium, particularly in tough times when other sacrifices have to be made. Our society is obsessed with living longer, eating healthier and knowing where its food comes from and how it is made. Instead of trying to become just another ordinary grocery store, I wish Whole Foods reminded customers why good, healthy, sustainable food should cost slightly more than low-price options. #grocerystores #supermarkets #foodretail #food #health #organic #natural #branding #strategy #business #retail #business #sustainability #stores

In a slowing market, success isn’t just about lower pricing—it’s about the value you deliver. Consumers today are more discerning, focusing on the quality and experience you offer. Contrasting quarterly fortunes of Chipotle and McDonalds show that even in tighter economic conditions, customers are ready to spend more when they perceive real value. Focusing on value creation rather than just price competition is key to thriving in these times. eX&P Strategy can help you differentiate in a crowded market, with true value. Ask us how... #Retail #ConsumerTrends #ValueCreation

HERE’S THE SUNDAY SLICE: Rising Above the Crust: Texas Toast's Recipe for Growth in the Frozen Bread & Rolls Category Amidst the staples of the frozen aisle, Texas Toast has buttered its way to a remarkable 19.8% growth over the past year in the Frozen Bread & Rolls category. The slice of this success? A significant portion comes from existing frozen bread aficionados, who've amped up their category spend by 10.5%. 📈 Feasting on New Opportunities: New buyers aren't just nibbling on the edges; they've taken a sizable bite, accounting for 58.3% of household penetration and 46.4% of the spend for Texas Toast's Frozen Bread & Rolls over the past year. But here's where it gets even more appetizing: enticing these new buyers to return for just one more purchase could rake in an additional $59.8 million. That's a lot of bread on the table. 🛒 Where the Bread Rises: Where do these bread enthusiasts prefer to shop? A significant 30.4% of them first pick up Texas Toast at Walmart, with Kroger baking up a close second at 20.2%. It seems the frozen aisles of these retailers are where loyalty begins to rise. A Toast to Thoughtful Engagement: But let's slice deeper—what does this tell us about brand loyalty and shopper habits in the frozen food sector? How can we, as brand strategists and retailers, capitalize on the initial visit to cultivate a recurring shopping pattern? And in a market as vast as the bread and rolls category, how can Texas Toast continue to expand its shelf presence and consumer base? I invite you to chew over these questions: ·      How can brands leverage its initial shopper experience to increase the frequency of visits? ·      With Walmart and Kroger as the yeast to Texas Toast's growth, how can we knead this partnership to further rise in the market? No apologies on the bread puns here…Let's break bread over this discussion! Source: Numerator Lewis Brothers Bakery #TexasToast #FrozenFoods #MarketGrowth #RetailStrategy #ConsumerBehavior #ShopperEngagement #NumeratorData #FoodMarketing

Join us for this week's WEBINAR where we'll discuss how private label, fresh food management and sustainability enable grocery retailers to think strategically about the brand experiences they want to create and the loyalty they want to drive. REGISTER: https://ow.ly/29G050RcGIF #foodretail #grocery #supermarket Oracle

From pretzels to pet food, store-brand goods are gaining on big-name brands: ‘Our food budget had exploded’ Goodbye, Chips Ahoy cookies and French’s mustard. Hello…Great Value, Private Selection and Signature Select. U.S. consumers are trying many tactics to cut their food spending: eating out less, buying less groceries and ditching name brands. That is boosting lower-cost store brands, which last year claimed 22 cents out of every dollar spent in grocery stores—the largest share ever for so-called private-label products. National brands are still king in the U.S., making up 78% of overall food and beverage dollar sales, according to data from the market-research firm Circana. But store brands, manufactured by companies including TreeHouse Foodsincrease; for such retailers as Walmart and Kroger, and are gaining ground, raising pressure on big food companies that have pushed their prices higher. #privatelabel #retail #groceryindustry MaryEllen Lynch Sally Lyons Wyatt Circana Jesse Newman Stephanie Stamm https://lnkd.in/egbCp4nr

Check out this week's Consumer Staples Report where we discuss consumer preference for fast food meals, the rough patch that dollar stores such as Dollar General and Dollar Tree Stores are going through, as well as the massive Procter & Gamble's Tide Pods recall and trends within the Beverage Industry. Also, comment your email address to be a part of our mailing list! Analysts: Sheil Patel & Dilpreet Singh

Target’s initiative to lower prices, especially in the grocery segment, began late last May. 🛒 The Grocery & Gourmet Food segment seems to be benefiting from these price decreases aimed at alleviating inflationary pressures on customers. Click to see the full note on #TGT https://lnkd.in/eYt8VuZG #Target #Retail #Grocery #Inflation #SalesGrowth #equityresearch

🤔 Why would a supermarket manager clean up chicken fridge daily? He didn't just do it once, it was a daily ritual. Seriously, everyone thought he was somewhat of a weird one. 1. He didn't clean anything else in the store 2. He didn't stock any other shelves 3. There were others who could do that Yet he was on it everyday: 🧹 clean several times a day 📦 restock several times a day What happened then was a bit of shocker. 📈 Week after week chicken sales started growing. There are ON and OFF weeks and chicken didn't care, it was growing. So what the hell happened? Three things: 1. 🎯 focused on one metric. (chicken was a separate metric in the sales pie) 2. 📊 identified leading metrics which influence the target one 3. ✅ executed daily Clean and stocked fridge did not enable sales. It ensured that whenever anyone wants it — chicken is there. ⏰ Doing it several times a day ensured that it's clean and stocked most of the time. Looking at it in retrospect it's easy to say, well he simply applied 4DX and got the results. 💡 How the hell did he figure it out some 20 years ago?

Exciting times in the retail sector as Walmart steps up its game! With their new premium line, Bettergoods, they're not just expanding their offerings but redefining their brand to cater to a broader audience. How will this shake up the competition with giants like Trader Joe's and Whole Foods Market? #RetailRebrand #MarketCompetition #Bettergoods

We're in the midst of BBQ season, so we decided to look at how retailers and suppliers should approach the fresh meat category. Bottom line: for shoppers, price matters. They're price-sensitive and will shop at retailers who deliver value. The link to the report is in the comments. #categorymanagement #retail #meat #BBQ #shopperinsight.