Shopper Insights from the Gifting Confectionery Category

Using psychology and behavioural science to generate game-changing opportunities in-store

Within the Grocery channel, Gifting Confectionery has become ever more commoditised over the years. Not so long ago, you could spend serious amounts on nice Gifting Confectionery from the supermarket. But nowadays, it’s becoming increasingly hard to spend more than just a few pounds.

In summary, the specialness has gone out of the category. You can buy special Champagne for around £50, flowers for £25, but a box of chocolates is only around £10. This supermarket category is now being overlooked by shoppers looking for that special gift.

Having analysed this category on many occasions, and as a result of understanding the minds of shoppers and consumers, we’ve time and again, been able to pinpoint specific opportunities, both in terms of optimising category appeal and removing friction from the purchase process.

What were some of the results of making Gifting Confectionery more visually appealing and easier to shop/buy from?

• Increased the average footfall into the aisle by more than 16%
• Reduced the number of walkaways (shoppers that didn’t buy anything) from 75% to less than 50%
• Generated a 27% uplift in average purchase value

Gifting Confectionery was one of those categories that could drive significant footfall (not so much nowadays). It can still leverage shopper emotions effectively by offering an aisle of ‘excitement’ in an otherwise mundane retail environment. Incidentally, why is Champagne displayed in the supermarket, exactly the same as toilet cleaner? Same shelf type, same aisle type, same POS style.

We know that Confectionery is a category where shoppers are willing to spend a little extra on premium products, particularly around gifting occasions such as birthdays, Easter and Christmas, all of which call for something extra special.

Research (Mintel) shows that 42 per cent of consumers say they would pay more for a product they consider to be from a luxury brand while 31 per cent say they would pay more for a product in luxurious packaging.

The challenge

What does it take to become a recognised Gifting Confectionery superstar? Firstly, we need to grow the numbers of shoppers that visit the category. Secondly, we need to increase the numbers of visiting shoppers that buy something. And thirdly, we need to optimise weights of sale and average transaction values by better meeting Gifting Confectionery shopper needs.

As a result of addressing these requirements, albeit using advanced behavioural science to do so, we know it is possible to transform a Gifting Confectionery offering into one that shoppers prefer, and perceive as the destination in that retail channel. How can we be so sure? Because we’ve done so numerous times already.

The opportunities

For any brands or retailers looking to revitalise the Gifting Confectionery category, what follows is a brief taster, by way of example, of what we’ve done for others, and what we can do for you. And although this is a Gifting Confectionery based example, the common denominator is the shopper. So, the expertise could help benefit you and your business, across all number of retail categories.

Key insights - Attract

Time and attention starved shoppers are known to use visual heuristics as shortcuts to making purchase decisions. In other words, they are initially attracted and drawn to things that are the most recognisable: Think Lindt Bunny or Cadbury wall of purple.

We helped one leading brand increase sales by more than 16%, by exploiting the instant recognisability of their major competitor. Using the distinctive brand assets of the competitor as a Gifting Confectionery category signpost, we drove significantly more footfall into the aisle. Our client was then able to switch them to their brand using alternative techniques, including the following.

Key insights - Appeal

The psychology that comes to play here involves choice and context. In essence, shoppers view the entire category in context, but almost always discount the extremes when making a purchase decision.

Consider a category of just 5 items: Cheapest £10, then a £15 item, one for £20, a product for £25 and the most expensive item being £30. Shoppers will mentally value the category price at between £10 and £30. Then they will typically, disregard the cheapest and most expensive and make their purchase decision based on the remaining 3 items available. The more special the gift they want, the more likely they are to go for the £25 option.

Now, let’s add in another item: A special confectionery gift priced at £50. All of a sudden, shoppers will not only value the category considerably higher, but also, they’ll be more likely to select the £30 special gift.

We’ve proved this science several times and in a variety of categories including Champagne and cooked meats (yes, cooked meats).

Key insights - Engage

In this category, we utilised what is known as The Mere Exposure effect: Our tendency to develop preferences for things simply because we are familiar with them. Exposing shoppers to your brand or product a number of times before they reach the main Gifting Confectionery aisle ‘educates’ them and they will mentally process your produce quicker and more easily, each time they see it.

When they reach the main aisle, your brand or product is firmly established in their minds and as a result, they will find it easier to think about. Importantly, this leads them to liking it disproportionately more.

Again, this initiative has been proven to work in several other categories too.

Key insights - Buy

As a final behavioural science hack, let’s bring in a touch of loss aversion. This refers to the human cognitive bias of preferring to avoid losses than to acquiring equivalent gains.

Simply summarised, we framed our brand special offers as loss aversions (Save 25%, Save £5, etc). While at the same time, other brands were focused on promoting gains, such as ‘2 fors' and '3 fors'.

As a direct result, our offers were perceived to offer more added value, because we focussed on helping shoppers lose less.

Summary

In this brief category study, we’ve gone beyond just presenting eye-opening results derived from creating more shopper-oriented Gifting Confectionery categories. We’ve also presented the behavioural science that led to some impressive category improvements. In summary, we’ve explained, step by step, what needed to change (See, Appeal, Engage and Buy). Then we described the behavioural science required to bring about meaningful shopping behaviour change.

We’ve then presented you with proven, science-based interventions that you can work with yourselves.

Why? Because we believe in improving retail categories: For retailers, for brands, but most importantly for shoppers themselves. We’re doing our bit to make shopper-oriented retailing a reality, by arming brands with the tools and behavioural science they need to become category superstars.

At Adcock Solutions, we explain how your customers really think and make decisions, so that you can engage with them more effectively. Come to us for Behavioural Science insights and expertise that improves the visibility, appeal, engagement, and sales of your brand.

Adcock Solutions have been improving the marketing communications of leading brands and retailers for more than 25 years.