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Shopper needs waiting to be addressed

In a project conducted by Europanel and Roland Berger Consultants for The Coca-Cola Retailing Research Council Europe, nine emerging but poorly met shopper needs were identified. Ranked by importance to the most shoppers, these are:

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Smart convenience: Shoppers seek efficiency in all areas – examples could be a subscription model for essentials, payment without going through check out or ‘room service’ delivery speed

Green responsibility: Shoppers increasingly expect sustainably sourced goods that they can trust – examples could be rent-a-cow or rent-a-plot with local farmers?

Technology-enabled savings: Shoppers want a better use of technology to influence prices, be aware of relevant discounts and only get offers they really need.

Quality shopping moments: An increasing number of shoppers find that shopping is not fun. A little inspiration and surprise wouldn’t go amiss!

Stealth health: Well-being should be easy and not more costly! Retailers must find ways to address shoppers’ health concerns, for example via in-store nutrition centres.

100% transparency: Shoppers want to understand ingredients in ‘their language’ and be able to trust claims.

Social networking: Shoppers want independent product and service advice and so influence what products retailers sell – let shoppers decide which products get listed or delisted.

Individualisation: Product recommendations, pack sizes and even language tailored to individual shoppers.

Authenticity: Many shoppers want less complexity, simplified assortment, personal service and smaller store formats.


Posted by Oliver Koll on Jul 09, 2014

Posted by Oliver Koll on Jul 09, 2014
Inflation and promotions. Has there been any acceleration of promotional tactics in periods of higher inflation? The answer seems to be no!

Inflation and promotions. Has there been any acceleration of promotional tactics in periods of higher inflation? The answer seems to be no!


Premiumisation is a challenging avenue for growth in FMCG given the focus on low prices in the marketing communication of both retailers and […]


posted by: Oliver Koll
Premiumisation in FMCG: Latest

Premiumisation in FMCG: Latest


Premiumisation is a challenging avenue for growth in FMCG given the focus on low prices in the marketing communication of both retailers and […]


posted by: europanel
Private labels still selling at substantial discounts versus national brands

Private labels still selling at substantial discounts versus national brands


Retailers originally established private labels as low-priced alternatives for price-conscious shoppers. Nowadays, private labels in many categories have become very sophisticated often matching […]


posted by: Oliver Koll
Underpriced Innovations!?

Underpriced Innovations!?


Pricing a new product is tough: Charge too much and it won’t sell. Charge too little and forgo revenue or undermine brand equity. […]


posted by: Oliver Koll
Do good things come with smaller packages?

Do good things come with smaller packages?


Manufacturers regularly use different pack sizes to meet a variety of needs. It’s easy to imagine drinking a can of coke for lunch, […]


posted by: Oliver Koll
A typology of pack sizes and variety

A typology of pack sizes and variety


Brand manufacturers and retailers are eager to meet consumers’ variety needs. Given the diversity of consumers’ tastes and preferences, offering a wide assortment […]


posted by: Oliver Koll
Shrinkflation: Smaller packages substantially more expensive

Shrinkflation: Smaller packages substantially more expensive


It is not a secret that smaller pack sizes are usually more expensive per gram or liter than larger ones. Examples of brands […]


posted by: Oliver Koll
Downsizing: Smaller packs hurt volumes

Downsizing: Smaller packs hurt volumes


Brand manufacturers provide choice not only via variety of assortment but also variety of pack sizes. Recently, smaller pack sizes have become fashionable […]


posted by: Oliver Koll
Half of all brands face in-house competition

Half of all brands face in-house competition


About 30% of families in New York only have one child1. Imagine that: no competition between you and your siblings, but with it, […]


posted by: Oliver Koll
Healthy Diets – Empty Wallets

Healthy Diets – Empty Wallets


Today, consumers have various concerns when choosing food and these considerations can often be overwhelming; too much fat, too much sugar, not convenient, […]


posted by: Oliver Koll
European consumers shop less: Do brands need to worry?

European consumers shop less: Do brands need to worry?


Across Europe* shoppers are visiting FMCG retailers less frequently, with the average number of visits per shopper declining by 2.2%between 2012 and 2015. […]


posted by: Oliver Koll
Buyer churn: 50% does not equal half your sales

Buyer churn: 50% does not equal half your sales


FMCG brands struggle to keep more than 50% of last year’s buyers – especially if they are small and compete in rarely purchased […]


posted by: Oliver Koll
What’s the Occasion? Brand growth!

What’s the Occasion? Brand growth!


We have previously shown that the most effective way to drive brand growth is by attracting additional buyers (i.e. foster penetration), but fundamentally, […]


posted by: Oliver Koll
Innovation, Innovation, Innovation

Innovation, Innovation, Innovation


For a brand, the launch of new products can have many benefits, such as exciting consumers, outplaying competitors, keeping brand image dynamic, satisfying […]


posted by: Oliver Koll
High contribution of new products in many Personal Care categories

High contribution of new products in many Personal Care categories


Across categories and brands, innovations are seen as a vital requirement to remain relevant, increase sales and gain new buyers. However, not all […]


posted by: Oliver Koll
Winners Add, Losers Replace

Winners Add, Losers Replace


How do new products impact growth and decline of brands? At first glance, it seems they don’t: The 15% fastest growing brands get […]


posted by: Oliver Koll
In Manufacturer vs Retailer… Manufacturer Wins

In Manufacturer vs Retailer… Manufacturer Wins


Retailer and manufacturer battles have been in the news lately across Europe, with some high profile cases making it difficult for some consumers […]


posted by: Oliver Koll
High Frequency Means Many Buyers!

High Frequency Means Many Buyers!


It probably won’t come as a surprise that categories that are purchased at least 20 times per year are also categories that are […]


posted by: Oliver Koll
The usual suspect:  Penetration!

The usual suspect: Penetration!


Earlier this year we identified three ingredients for brand size: Penetration – How many consumers purchase a brand? Frequency – How often do […]


posted by: Oliver Koll
Distribution vs penetration thresholds

Distribution vs penetration thresholds


High distribution (i.e. the share of all relevant outlets where a brand is on sale) plays a major role in determining a brand’s […]


posted by: Oliver Koll
Tough to keep more than 70% of last year’s buyers

Tough to keep more than 70% of last year’s buyers


Consumer churn is a major challenge for FMCG brands: The average top ten brand loses about half of its buyers from year to […]


posted by: Oliver Koll
Horizontal beats vertical

Horizontal beats vertical


Assortment variety is essential for retailer listings and, as we have shown before, for brand penetration. At the same time, choice overload is […]


posted by: Oliver Koll
In-store collection doesn’t deliver

In-store collection doesn’t deliver


Consumers increasingly shop via click and collect, a blended retailer format that combines online ordering and collecting goods at a pick-up point. A […]


posted by: Oliver Koll
Small brands: Less bang for the buck

Small brands: Less bang for the buck


Recently we showed that even leading brands struggle to attract a majority of category buyers (see “The top brands don’t get all the […]


posted by: Oliver Koll
3 ingredients for brand sales success

3 ingredients for brand sales success


There are three components that explain high or low brand sales: 1. Penetration – How many consumers purchase a brand? 2. Frequency – […]


posted by: Oliver Koll
The top brands don’t get all the buyers!

The top brands don’t get all the buyers!


Even leading brands struggle to attract a majority of category buyers. Across 13 countries and over 80 categories, the top brand, on average, […]


posted by: Oliver Koll
Premium brands: Are they really different?

Premium brands: Are they really different?


“Premium brands command higher loyalty and are predominantly bought by affluent consumers” – these are two popular beliefs on brand premiumization, a branding […]


posted by: Oliver Koll
Bad neighbours may be other categories

Bad neighbours may be other categories


Consumers are often confronted with product categories within a fixed space (e.g. freezer or check-out) that are not connected with their planned purchase. […]


posted by: Oliver Koll
Big Means 0.25

Big Means 0.25


How much market share can the number one national brand in a category claim? Across 17 markets and 79 categories we find that […]


posted by: Oliver Koll
Real Lovers are Rare

Real Lovers are Rare


 You would expect popular everyday brands to be chosen frequently by most of its buyers. Let’s take a look at a popular brand […]


posted by: Oliver Koll
Tired of Innovating?!

Tired of Innovating?!


“Innovate or die” is a frequently used statement to emphasize the importance of launching new products. Some recent trends show that FMCG products […]


posted by: Oliver Koll
On-Off: Aldi’s relationship with National Brands

On-Off: Aldi’s relationship with National Brands


“Spend a little – live a lot” –  is Aldi’s value proposition for consumers looking for superior product quality for a low price. […]


posted by: Oliver Koll
Local and Global Heroes

Local and Global Heroes


Our last blog entry showed that across eight European countries the top ten manufacturers are responsible for just below half of total value […]


posted by: Oliver Koll
The secret of positioning

The secret of positioning


“Tummy in, chest out”  – a saying which reminds us to correct our body position to signal increased self-confidence. For several years, academic […]


posted by: Oliver Koll
Cookies & Quinoa: the effect of green shopping bags

Cookies & Quinoa: the effect of green shopping bags


Green (reusable) shopping bags not only offer peace of mind, but also influence consumer in-store behaviour. An analysis of 936,232 purchases by 5,987 […]


posted by: Oliver Koll
10 – 47 – 20:  Manufacturers, market share, brands

10 – 47 – 20: Manufacturers, market share, brands


Complaints about retailer concentration in FMCG are omnipresent. The top 5 banners in many European markets sell 50% or more of total FMCG […]


posted by: Oliver Koll
Pet care least innovative

Pet care least innovative


In our last blog we investigated how category penetration and purchase frequency impact the variety shoppers encounter in that category (see April 16). […]


posted by: Oliver Koll
Category clutter – a result of frequency and penetration

Category clutter – a result of frequency and penetration


How do category purchase frequency and category penetration impact the variety shoppers encounter? To answer this question, we investigate category assortments across 8 […]


posted by: Oliver Koll
Unit pricing helps value brands

Unit pricing helps value brands


Retail prices usually show a price per package, let’s say €1.50 for a 500g pack of  Barilla spaghetti. Shoppers may additionally check the unit price […]


posted by: Oliver Koll
How much to expect from a SKU

How much to expect from a SKU


Do some categories have more star performers than others? We analyzed the value sales coming from the average SKU in food, beverage, household […]


posted by: Oliver Koll
The vicious circle of sales promotions

The vicious circle of sales promotions


The increasing reliance on price promotions to boost sales is a frequently discussed and often lamented topic. With good reason. One thousand categories […]


posted by: Oliver Koll
Small + infrequent = LIGHT

Small + infrequent = LIGHT


The smaller your brand and the lower the purchase frequency of your category the more you rely on light brand buyers. This is […]


posted by: Oliver Koll
If it sounds like me, it is mine.

If it sounds like me, it is mine.


Does it matter whether a product’s price (when spoken) shares letters with a consumer’s name or numbers of their birthday date? Why should […]


posted by: Oliver Koll
Private Labels build retailer loyalty … to a point

Private Labels build retailer loyalty … to a point


A few years ago we confirmed academic studies* showing that the relationship between a household’s PL share at a given retailer and the […]


posted by: Oliver Koll
Heart, Mind and Brand Sales

Heart, Mind and Brand Sales


Brand managers and academics agree that strong brand equity is a key to brand success. A recent study empirically links two prominent perspectives […]


posted by: Oliver Koll
Tiny but mighty

Tiny but mighty


Where do we find more share growth: among big or small brands? Looking at some 5000 brands across many markets for which we […]


posted by: Oliver Koll
Category Growth Higher where Innovations are Plenty

Category Growth Higher where Innovations are Plenty


Total FMCG growth has been modest over the past five years. However, this observation hides substantial category differences. We  examined whether innovations are […]


posted by: Oliver Koll
Price War – Love it or Leave it

Price War – Love it or Leave it


Retailer-initiated price wars are a popular strategy to battle for market share. When in October 2003 Dutch retailer Albert Heijn announced price cuts […]


posted by: Oliver Koll
FMCG shopping in Turkey –  Tradition vs Modernity

FMCG shopping in Turkey – Tradition vs Modernity


The Turkish retail landscape is characterised by a mix of traditional open bazars, specialist shops, small grocery shops and modern supermarkets. Traditional retail […]


posted by: Oliver Koll
Innovation by Retailers: Rare, but there

Innovation by Retailers: Rare, but there


Innovation is an essential growth strategy for both brand manufacturers and retailers. New products allow companies to charge higher prices and create differentiation […]


posted by: Oliver Koll
The Price of New

The Price of New


New products serve many functions for a brand – to introduce technological/functional changes, to attract non-buyers or to enhance  positioning. They may also […]


posted by: Oliver Koll
Percentages are hard to grasp

Percentages are hard to grasp


Many people struggle with percentage calculations. One of the challenges arises from a phenomenon called base value neglect (BVN), the tendency to ignore […]


posted by: Oliver Koll
More human – less fair?

More human – less fair?


Brand anthropomorphization is the association of a brand with human-like characteristics, motivations, and behaviours to enable closer relationships between consumers and brands.  A […]


posted by: Oliver Koll
Brand name leverage lower in Foods

Brand name leverage lower in Foods


Looking at over 13000 brands (all of which are in the top 10) in 79 categories across 14 countries, there are substantial differences […]


posted by: Oliver Koll
Lower shares can lead in frequent categories

Lower shares can lead in frequent categories


Less than 10% of all category leaders have market shares of more than 50% whereas more than one third has less than 20% […]


posted by: Oliver Koll
Small brands rely on promotion

Small brands rely on promotion


The average brand in a frequently purchased category (more than ten times per year) is sold on promotion by at least one of […]


posted by: Oliver Koll
Wide variation in e-commerce

Wide variation in e-commerce


Grocery E-Commerce reach differs widely between countries in comparable  stages of their retail development. While 6 out of 10 South Koreans purchases online […]


posted by: Oliver Koll
Exclusive listings don’t help

Exclusive listings don’t help


A recent trend among manufacturers and retailers are exclusive deals limiting the brand’s availability to only one retailer. A study investigates an exclusive […]


posted by: Oliver Koll
Acquisition drives growth more than retention

Acquisition drives growth more than retention


A substantial percentage of a brand’s buyers this year will not buy it in the next year (see our previous newsletter how brand […]


posted by: Oliver Koll
Local icon or global hero?

Local icon or global hero?


FMCG boasts a balanced mixture of local, regional and global brands. Investigating the presence of some 750 Top 3 share brands across 30 […]


posted by: Oliver Koll
Half of the world’s households buy Colgate

Half of the world’s households buy Colgate


Growth is about penetration: retaining and increasing the number of shoppers choosing the brand. Combining how many households around the world are buying […]


posted by: Oliver Koll
Don’t try changing habits

Don’t try changing habits


There are two types of repeat customers: One group repeats choice based on habit and another group repeats choice because of brand preference.  […]


posted by: Oliver Koll
Leakiness less when large

Leakiness less when large


To maintain a brand’s sales level it needs to continuously attract new buyers. Why? Because for the average brand more than half its […]


posted by: Oliver Koll
Appealing without promoting?

Appealing without promoting?


The increasing reliance of brands on price promotions to influence consumer choice is widely reported. While we do not see much difference between […]


posted by: Oliver Koll
How to seduce customers online

How to seduce customers online


A recent study covering 36 brands in 15 categories compares online metrics with attitude survey metrics in their ability to explain sales. While […]


posted by: Oliver Koll
Triple whammy for small brands

Triple whammy for small brands


Double jeopardy is well documented: Compared to larger brands, smaller brands have fewer buyers that buy them slightly less often. However, these small […]


posted by: Oliver Koll
Penetration drives share – at different rates

Penetration drives share – at different rates


Past contributions to this newsletter have shown that bigger brands have more buyers and growing brands grow by attracting more buyers. How much […]


posted by: Oliver Koll
Online grocery shopping – many pockets for growth

Online grocery shopping – many pockets for growth


As online grocery shopping continues to grow, interesting regional patterns in the profile of this channel are emerging. In GB, for example, we […]


posted by: Oliver Koll
Experienced multi-channel buyers start cheating

Experienced multi-channel buyers start cheating


A recent study amongst UK households shows that retailer loyalty of multi-channel shoppers decreases the more experienced they are as shoppers. Initially, shoppers […]


posted by: Oliver Koll
High price and penetration can coexist

High price and penetration can coexist


A recent analysis covering panel data from 14 European countries, Russia and the US compares the price ratio between brands and private labels […]


posted by: Oliver Koll
Truly dominant brands in FMCG exist, but rare

Truly dominant brands in FMCG exist, but rare


Identifying the category leader in 79 categories across 16 countries reveals vast differences regarding brand preference. In only 16 categories we find the […]


posted by: Oliver Koll
Value extensions less damaging than expected

Value extensions less damaging than expected


A recent study evaluates how extending into higher versus lower quality levels respectively impacts the brand image of middle-tier brands. Results show asymmetrical […]


posted by: Oliver Koll
Price Premia of Brands over Private Labels differ substantially

Price Premia of Brands over Private Labels differ substantially


The examination of national brand (NB) prices relative to their private label (PL) peers in 1100 categories across 16 countries reveal some surprising […]


posted by: Oliver Koll
What it’s like being #1

What it’s like being #1


Comparing the leading brand in a category with its followers reveals several interesting commonalities and discrepancies. Looking at some 6000 brands across Europe […]


posted by: Oliver Koll
Price promotions reduce thinking

Price promotions reduce thinking


Price promotions can lower consumers’ motivation to think rationally during the purchasing process. Because the (financial) risk of making wrong decision decreases, emotions […]


posted by: Oliver Koll
Big retailers continue their growth

Big retailers continue their growth


Some headlines on recent retailer developments: In the 14 Western European countries, the number of major retailer banners used per household per year […]


posted by: Oliver Koll
Beware the informed shopper

Beware the informed shopper


A recent study on willingness-to-pay for brands versus private labels in the pharmaceutical industry shows that the more consumers are educated the more […]


posted by: Oliver Koll
New is not easy to do

New is not easy to do


The positive impact of innovations on brand success is well-known: By enhancing a brand’s equity, they justify the price premium, attract buyers and […]


posted by: Oliver Koll
Similar but different

Similar but different


Across the ‘Big 6’ Western European markets, the average household shops 3 to 4 times per week, spending an average of € 20 […]


posted by: Oliver Koll
Range matters – up to a point

Range matters – up to a point


Brand range and size are related – likely reinforcing each other: Bigger brands are able to get more SKUs listed and more SKUs […]


posted by: Oliver Koll
Private Label hurts category volume

Private Label hurts category volume


A study of 449 FMCG categories in six European markets reveals an interesting pattern between Private Label share and category growth. Categories which […]


posted by: Oliver Koll
Discount shoppers: More upmarket than you’d expect

Discount shoppers: More upmarket than you’d expect


The discount channel has become an increasingly important channel in recent years throughout Europe, albeit at different levels in different countries. An ever […]


posted by: Oliver Koll
Where are the premium brands?

Where are the premium brands?


Many brand manufacturers strive to position their brands as premium in an attempt to achieve higher differentiation, loyalty and margins. A simple price-based […]


posted by: Oliver Koll
Distance matters: In-store travel drives impulse

Distance matters: In-store travel drives impulse


The average shopper passes through less than half of the aisles in a typical grocery retailer. Obviously, products in the remaining store cannot […]


posted by: Oliver Koll
Brand Price Premium not related to Private Label Success

Brand Price Premium not related to Private Label Success


Private Label (PL) success in a category is often linked to price in contradictory theories: (1) A large price gap between brands and […]


posted by: Oliver Koll
Brand Authenticity: Manufacturing site matters

Brand Authenticity: Manufacturing site matters


Many global brands are shifting production to sites in countries with lower manufacturing costs or share production between different sites. This may result in […]


posted by: Oliver Koll
7 out of ten leading brands more expensive than their peers

7 out of ten leading brands more expensive than their peers


Number 1 brands are not only big but their strength also enables them to command a price premium compared with other brands in their […]


posted by: Oliver Koll
Even Heavy Buyers Will Stop buying next year

Even Heavy Buyers Will Stop buying next year


In a previous blog we showed that the average brand loses more than half of its buyers every year. Surprisingly, this loss is […]


posted by: Oliver Koll
The right (or wrong) of changing pack size

The right (or wrong) of changing pack size


A recent study investigates how shoppers make sense of changes in packaging. Not surprisingly, their estimates of pack size changes are most precise […]


posted by: Oliver Koll
Less than 1 in 4 items sold is a brand at regular price

Less than 1 in 4 items sold is a brand at regular price


For regular readers of supermarket leaflets this piece of news may not come as a surprise: The percentage of FMCG sold on promotion […]


posted by: Oliver Koll
Price gap between Brands and Private Label widens

Price gap between Brands and Private Label widens


Over the past five years prices of Private Labels have increased by an average of 10% – the same change as for National […]


posted by: Oliver Koll
Shopper needs waiting to be addressed

Shopper needs waiting to be addressed


In a project conducted by Europanel and Roland Berger Consultants for The Coca-Cola Retailing Research Council Europe, nine emerging but poorly met shopper […]


posted by: Oliver Koll
Winning brands: Only 3% price increase over 5 years

Winning brands: Only 3% price increase over 5 years


Among some 6000 brands studied in 79 categories across 13 European countries the 500 brands with the biggest volume share gains 2008-2012 have […]


posted by: Oliver Koll
Want to increase sales? Empty your shelves!

Want to increase sales? Empty your shelves!


Well-stocked shelves are considered important for several reasons: orderly appearance of the aisle, lower likelihood of out-of-stocks and higher visual impact for the […]


posted by: Oliver Koll
FMCG slows in early 2014

FMCG slows in early 2014


The first quarter of 2014 shows a relatively weak trend for FMCG volume sales partly due to different seasonal timings compared with 2014. […]


posted by: Oliver Koll
Private Label Success: Don’t blame the category!

Private Label Success: Don’t blame the category!


  Confronted with high Private Label (PL) shares in their category, brand manufacturers often blame increasing commoditization as if it was a law […]


posted by: Oliver Koll
Business Challenge 2

Business Challenge 2


Topics We will invite a professor from our network to present a recent piece of research – most likely in the field of […]


posted by: europanel
Advertising around Sports Events – an own goal?

Advertising around Sports Events – an own goal?


A study* looking at UK sales of FMCG brands around 15 major sports events shows that: Ad spend around the event increases by […]


posted by: europanel
E-Commerce: will the rest of Europe follow?

E-Commerce: will the rest of Europe follow?


When it comes to online shopping, the FMCG industry is still in its infancy. With the exceptions of South Korea (9% share), UK […]


posted by: europanel
How to grow share: get more buyers

How to grow share: get more buyers


Exploring 5 year trends of some 2,400 major brands in 79 FMCG categories across eight European markets reveals two very consistent patterns: Whether […]


posted by: europanel
Most current brand buyers will not buy next year

Most current brand buyers will not buy next year


An analysis of 2,400 large (> 2% share) brands in 79 FMCG categories reveals that the average brand loses 55% of its buyers […]


posted by: europanel
The safest way to become a category leader…

The safest way to become a category leader…


The safest way to become a category leader is to be category leader five years earlier. However, there are exceptions. In several hundred […]


posted by: europanel
Shelf space elasticities higher for increases

Shelf space elasticities higher for increases


A meta analysis of the impact of shelf space allocation on brand and category sales reveals that increases in shelf space have a […]


posted by: europanel
No sign of private labels slowing down

No sign of private labels slowing down


It may start feeling like groundhog day: In 2013 across Europe, we see Private Labels increase their shares by about half a percentage […]


posted by: europanel