Show Off New CPGs on Store Shelves

Seeing an unfamiliar consumer packaged good (CPG) product on the shelf beside competing products is a greater impetus to purchase than is seeing the product in a media advertisement. That's the conclusion from a survey of knowledgeable consumers conducted by retailing consultants Market Force Information. And in agreement with research findings from Envirosell, an especially effective placement for newly introduced CPGs in on end caps.
     Certainly, you'll get the most bang for your buck when all the promotional and selling elements—from advertising to building customer recommendations to shelf placement—work together. But because your resources are limited, you'll want to deploy your plannning, your funds, and the rest with care in order to deliver maximum impact.
     The Market Force survey findings also suggest finer grain strategies for selling newly introduced CPGs:

• Recommendations by family and friends are influential when the product is coffee or tea.
• Money-off coupons work well with cereals.
• Although media advertising is relatively among the least effective elements in driving sales, it does carry weight with the consumer when it comes to health/beauty products and cleaning products.
• Proper shelf placement counts the most overall, but is the best of the best for snacks and beverages.

     Market Force also used some of the survey findings to strengthen the well-researched argument that CPG shoppers often buy on impulse, so they are highly susceptible to in-store influence. The respondents said they use shopping lists as a memory jogger, but about 35% said they'd make an unplanned purchase of an item that looks interesting, and about 90% said they'd add an item that looks like a bargain.
     The implication for you in selling products unfamiliar to your shoppers: Make them distinctively interesting and offer noticeably low prices on them.
     A limitation in this Market Force survey is that it depended on self-report. Consumers often do not end up doing what they say they're going to do, and they often answer researchers based on what they think they should have done rather than on what they actually have done.
     However, the findings are a valuable reminder that conclusions we make about ways of selling unfamiliar products can benefit from customizing the tactics to the type of product.

Click below for more:
Introduce Featured Products as Customers Enter
Advertise What Products Look Like
Encourage Specifics & Criticism in Word-of-Mouth
Show Impulse Purchase Items for Groups
Sell Impulse Items to Serve
Customize Your Discount Coupons
Give Coupons Early and Proudly