WHERE ARE WE NOW?

David Bowie was known as a singer and performer who had a passable voice, but he had the ability to use it as an immensely powerful instrument. He was also ahead of his time on a lot of things. He was way ahead of his time when it came to his thinking on the power of the internet. In an BBC interview from 1999, Bowie nailed the journey most of us have been on from initially using the internet only to read and distribute information to where we are now: using all things digital to enrich and enhance our way of living.

““I don’t think we’ve even seen the tip of the iceberg. I think the potential of what the internet is going to do to society, both good and bad is unimaginable……the interplay between the user and the provider will be so in synch it’s going to crush our ideas of what mediums are all about.”

David Bowie, from BBC interview on YouTube.

This post relates to the growing use of voice search and how we may be moving towards using it as a credible means to order our groceries effortlessly and seamlessly within the next few years. To build on Bowie’s statement, voice based digital search could, sometime soon, facilitate harmony between grocery shoppers, technology providers and grocery retail organisations.

CHANGES.

The use of voice search and voice messaging on mobile phones is about ten years old. When I recently but reluctantly gave in to my daughters’ endless requests for her first mobile phone, the first message she sent was a voice message. She was an instant adopter. What has this got to do with groceries? The fact of the matter is that since the 1990’s, most of us have embraced technology to facilitate the way in which we shop. Online grocery shopping is either a compliment to or substitute for in store grocery shopping. The Financial Times say that online grocery had reached a 7% share of total grocery shopping in Great Britain prior to the Covid-10 pandemic but now report that share has since rocketed to a record 17% share. With online ordering more than doubling in some global markets, adoption is not being driven just by younger shoppers as many sources suggest that a wide demographic spread have now turned towards the channel as a regular means for grocery purchases.                                                                     

Now consider the adoption rate of the devices that are associated with the “Internet of Things” (IOT).  Jacob Morgan says in Forbes Magazine that IOT can be defined as:

“The concept of basically connecting any device with an on and off switch to the Internet (and/or to each other)”.  

The IOT actually has its roots in the consumer-packaged goods arena.  Writing in PoliticoMagazine, Daniel Vinik explains that the first internet appliance of what was to become known as IOT is credited to a Coca Cola machine at Carnegie Melon University.  In 1982. programmers connected a Coca Cola vending machine to the internet to gauge how long it had been since the machine had last been stocked up. Things have significantly moved on since then and the concept of the smart home took hold from the 2000’s onwards. Smart fridges now allow the use of mobile phones to view its contents remotely from grocery stores to see what shopping might be needed. An academic article published in The Journal of Interactive Marketing reports that smart fridges can be of benefit to consumers because they can identify what products are running low and then negotiate with a pre-determined store using API’s to get the best bargain for the consumer in real time. Many smart fridges now incorporate tablet technology that allow grocery assortments to be ordered instantly, as well as providing an array of smart home and entertainment features.  Amazon tried the Dash button with limited success in the US.  When pushed, the Dash button could automatically connect to the grocer, order the requisite product (e.g., washing powder) and arrange shipment to your home.

Our adoption of the smart speaker is perhaps the biggest global move towards IOT technology. The Amazons Echo voice activated smart speaker can recommend several grocery products items and have them delivered using the Amazon Prime delivery service. Then there is the very concept of the Internet of Shopping as pioneered by Amazon’s checkout free grocery stores. According to The IOT Magazine minimal to no human intervention is needed because artificial intelligence allows the shopper to shop seamlessly, using just a smartphone for procurement and payment while AI technology is used to study and analyse shopper behaviour and buying patterns.

ABSOLUTE BEGINNERS?

So where is this all going? Can we foresee a time when grocery ordering using voice command via smart devices becomes commonplace? Gartner had predicted that global users of IOT devices will hit 26 billion by 2020, up from 900 million since 2009. Yet, Field Agent reported that pre-pandemic just 10% of Americans said they use their smart speakers to purchase anything while less than 3% are using it to buy packaged groceries. According to PWC, in 2019, 52% of British people had no plans to adopt smart home technology in the next 2-5 years.  But maybe things are changing. I carried out some research recently (a pilot questionnaire of sample size 100 so not statistically robust) of which 52% of respondents said they would use a smart speaker to purchase something. 45% said they would be willing to use it to buy groceries.  Some experts think that smart speakers and voice shopping are ready to ‘drive the next wave of grocery e-commerce’. FoodNavigator say that 40% of UK households now own a smart speaker and 60% have used them to make any kind of purchase.  Carrefour and Google have recently launched the first voice-based shopping service in the world, building on the fact that 46% of French people have adapted voice enabled technology. The new service will allow users to build a shopping list using generic category terms like “milk” or by brand name. Machine learning technology from Google Assistant will deduce preferences and voice recognition, if enabled will allow other members of the family to add to the list.  Some brands are also taking the initiative. Bayer have developed an advertisement using Amazon Alexa that will allow the listener to order their Berroca Boost brand via voice command and then have it delivered to their door.

WHAT COULD DRIVE ADOPTION?

Many academics have studied the theory in relation to the adoption of various technologies. The degree to which a person will perceive how useful the technology will be to them is especially important. If a technology is related to a work task and it will enhance job performance, then it is more likely to be adopted. In addition to perceived usefulness, the perceived ease of use is referenced by academics as a common adoption factor (see Davis and Gao & Bai for more). My pilot study revealed that the whole process of voice ordering and delivery would need to be simple and convenient to driver adoption. Some concerns regarding data privacy were also expressed. Carrefour and Google have worked hard to overcome the latter.

PROS & CONS

But what are the implications of voice-controlled shopping and how could it effect your brands and categories? There are plenty of pros and cons. Large scale adoption would be transformative for category management, potentially negating the need for planograms but reducing the opportunity for brand advertisement from the coveted shelf space in store. Digital strategies would become much more important for category vision and category strategy development. Voice shopping could provide plenty of scope for cross-selling and up-selling category initiatives by recommending complimentary and associated category assortments. From a brand perspective, voice shopping would provide an extra channel to drive brand awareness and engagement. However, as referenced in the academic research, any new technology needs to prove its usefulness. Brands will need to prove the usefulness of voice shopping as well as finding a way to differentiate it from the now conventional online grocery channel. Additionally, marketers would need to ensure that their brand is near the top of the voice search list for fear that the shopper will use a generic category term for ordering instead of a brand name (e.g., “add cheese to my basket”).

THE UPSHOT.

There is no doubt that the initial global growth and the adoption of online grocery shopping had been sluggish. The events of the Covid-19 pandemic have changed all that and as people adopt to this way of shopping, along with other direct to consumer options, it is likely that this form of shopping will stick and achieve even further growth. As more and more brands and retailers invest in voice shopping, early adopters may soon become advocates and then continue to diffuse the use of the technology amongst their peers. Brands may gain by investing now to achieve first mover advantage.  However, everyone will need to overcome user data privacy issues as well as proving the convenience and seamless operational aspects of this new way of shopping is worth it. As the needs of the shopper aligns more with the abilities of the technology providers and the strategies of grocery players, we may indeed get a little closer to the tip of that iceberg as mentioned by Mr. Bowie.

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SHOPPERS DESERVE QUALITY TIME.

As category management people, we spend countless hours obsessing with the categories that we are tasked with managing, developing, and growing. We obsess over the latest set of figures received from our data suppliers. We are aware of the slightest change that occurs in a data set and then scramble to justify reasons for that change. We often put in ridiculous amounts of time compiling category reports and looking for insights. But how much time do we devote to the people who ultimately matter? How much time do we devote to the shopper? After all, these are the people who will help us to achieve our obsession objective.

The quality of time spent on the shopper is more important than the amount of time devoted to them. So, what is the best use of your time when it comes to the shopper? Time spent analysing shopper data is worthy and useful but think of this. The shopper can only buy something if it is presented to them in an accessible way. The quality of your time spent on the shopper is greatly enhanced if you know how to help them access your category to increase the chances of a purchase conversion.

This post is geared towards the in-store shopping occasion. It is focused on physical rather than mental category availability. It explains how category management practitioners can use five simple rules to ensure shoppers can access your category as effortlessly as possible.

The Rules

1.  Have the Right Range.

Ok, this sounds obvious, after all range reviews are the bread and butter of a lot of category management tasks. However, the shopper deserves to have the right range within the category available to them wherever they shop. That is not to say that every store should accommodate every product on their planograms. The optimal way to ensure the right category range is available is to have the correct assortment mix available based on shopper and consumer preferences, needs and prevailing trends. Having variety within range is also important because it will provide inspiration for the shopper. The key here is for the category team to incorporate appropriate category centric choices into their ranging plans and then allocate appropriate ranging distribution points to each product that will balance shopper needs with operational functionality in store.


2.  Have the Correct Layout.

Behavioural scientists will testify that most humans love structure and that this desire for structure and organization is carried through to the shopping environment.  Take shopping for groceries. We tend not to shop for groceries at a jumble sale because a higgledy-piggledy layout does not appeal for this shopping occasion. Having a clear category layout will increase the changes of the shopper accessing your category.

Consider the following layout attributes in your point of purchase strategies:

Appropriate Flow. Most shoppers browse an aisle from left to right. Consider the destination areas within your category aisle (shoppers will make their way there regardless) and the category segments that can serve to interrupt as shoppers travel toward their destination.

Correct adjacencies. Shoppers will have pre-formed connections in their minds about where they expect to find products within an aisle run. Good shopper research will help you discover the expected adjacencies and will allow you to test the appeal of different ones.

Segment Blocking Strategy. Sometimes product assortments are merchandised beside each other because it looks good from a brand perspective or it has “just always been that way”. But what makes sense from a shopper or consumer perspective? Remember, shoppers often buy based on consumption or usage occasion. Blocking strategies like pack size, product type, brand or occasion etc. can all be researched based on the consumer/shopper decision making process.

Optimal Shelf Location. We all know that there are hot and cold shelves within every fixture. The optimal shelf position for product assortments will change depending on your category. Some believe that eye-level is best (after all, “eye-level is buy-level”), however shoppers come in all different shapes and sizes! Some merchandisers prefer “heart level” assortment location to account for this. Items with a big stock turn are sometimes housed within the first shelf or the fixture “well” because of greater shelf depth. Whatever the optimum location, it is your job as the category expert to discover what is best for the category based on good shopper insight.

Optimal Shelf Position. Like location, there can be hot and cold spots running along the length of the shelf that could influence one purchase over another. Luckily, today’s technology can help you to easily identify these spots using eye tracking and thermo-technology. True category captains will discover where the shopper is most likely to look and will position category products accordingly in an unbiased manner for the good of category growth.

Balanced Product Space on Shelf. Ah the race for space. What could be more pleasing than the sight of several facings of your highly branded product symmetrically arranged in a vertical drop for your shoppers viewing pleasure? While this sounds like a suppliers win/win, it may not be what the shopper or consumer really wants to see. Shelf space planning works best when there is a correlation between space and sales per store. Exceptions to this correlation can be made for new, niche or highly differentiated products.

3.  Know the Category on Shelf Availability.

If the product is not on shelf, the shopper cannot buy it.  Lost sales attributed to products that should be on shelf but are not for whatever reason can be extremely costly and frustrating. Try to establish a process to identify the availability levels in your category across your different retail channels, customers, and assortments. Knowledge of key selling times will allow you to assess the true lost opportunity cost of stock-outs. It is a good idea to get to know the root causes of lines not being available because the issue could originate from a supply or demand side or both.  Set up a descriptive dataset for the issue, then work on remedial solutions and measure the performance of actions taken.

4.  Know Your Planogram Compliance Levels.

Planograms are put in place for a reason. The best ones are the ultimate representation of best practice category layout based on shopper insight and operational functionality.  Lack of compliance to planogram implementation is one of the most vexing and wasteful category management phenomena.  Ignorance may be bliss when it comes to planogram compliance, but ignoring the issue is not going to help your category get into the shopper’s basket. The first thing to do about it is to identify any compliance issues and then create a plan to close the compliance gaps. One cause of compliance issues often starts at the beginning of a category management or range review project and that is lack of true category strategy engagement between all stakeholders. Ensuring collaboration at all category development stages will help with shopper conversion to purchase.

5.  Try to Meet the Shopper Mission.

One of the best ways to give shoppers access your category is to meet them along their journey within the store. Most shoppers are on a mission, for example, to top up and get in and out of the store as soon as possible, to stock up on their essentials, to hunt for and gather components for a big meal or to satisfy a craving for a snack. Knowing the key shopper missions for your category could provide opportunities throughout the store to meet these missions, shortening the path to purchase and increasing purchase conversion rates.

So, there you have it. Some simple ways to allow the shopper to access your category. Take the time to consider what the shopper can or cannot see during each shopping trip. The shopping trip is your last chance to influence the purchase decision. Having a plan that is rooted in consumer and shopper insight combined with operational functionality will bear fruit. Plan your range and category layout optimally to unlock category access. Know your shopper missions and meet them along the in-store shopper journey. Devise a clear set of KPI’s based on planogram compliance and on-shelf availability and measure continuously to counter against missed opportunities.


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Picture the scene. You have just landed that new category management role and you are raring to go. Your new company are incredibly supportive and full of ambition. They recognise the power of category management thinking and are keen to cement their category develop partnerships with retail customers. They are expecting great things from you and have given you the autonomy to crack on with bringing fresh insights and thinking to your new category. But you have hit a snag! Category data availability is scant or worse still, unreliable. Maybe you must rely on internal sales, factory gate sales or the generosity of former data agency contacts to decipher how the category is performing. You may cobble together as much data as you can, but deep down you know that this is not going to add much colour to why the category is performing as it is our what the potential opportunities are.

Fear not – help is always at hand. The above can be a common occurrence for new or developing categories or for small to medium sized companies who are beginning to develop their category first mindset.In this post, I give you 10 ways that will help you to build your category insights without having to break into your category management budget.

The Free Insight Source List.

1. Competitor Websites
2. Webinar
3. Store Visits
4. Google Trends
5. Libraries
6. Cupboards, Larders & Fridges.
7. Podcasts
8. LinkedIn
9. Twitter
10. The Traditional Media.

1. Competitor Websites.

A lot can be gained from having a snoop around your competitor websites. You can bet that they are probably doing the same on yours. Look for any new products or concepts they have brought to market and figure out what consumer segment they are trying to target. Are they being truly innovative or are they playing catch up by “renovating” product types that already exist in the category? Competitors sometimes mention their key stockists, which may give you an indication of their strength of relationship with category buyers. Try to figure out the story they are trying to tell. There could be an insight in the story relating to a macro trend like health or they could be ahead of the game by communicating an emerging trend. In addition, look out for any data, research, or insight sources they may be referencing.  They may have links to these sources that you can then follow for further insight.

2.  Webinars.

Webinars became a lifeline for many during the lockdown, and a lot of them are free to attend. Most are gated and require you to register your email address, but you can always choose the opt out button were available if you do not wish to be marketed too. Do not limit yourself by registering for webinars that just relate to the category or industry that you are involved in. The best insight often come from other industry sectors that may be activating on a global macro trend that could be relative for your category. My top tip for finding the golden nuggets from webinars is to actively listen to what the presenter is saying. The true insight often comes from the slide explanation rather than the slide itself. That’s why it is always more favourable to attend the webinar rather than just receive the slide pack in absentia.

3. Store Visits.

“The desk is a dangerous place from which to view the world”.
John Le Carré from DaveGardner in Forbes magazine.

Le Carrés sentiment can be applied to all office and home-based jobs throughout the world. Getting out and into store has been one of the biggest things I have missed from a work life perspective during the lockdown times. Store visits are an invaluable source of insight because you get to see the shopper in action at their last opportunity to purchase. Shopper observation can reveal insights about average weight of purchase from a category as well as cross shopping and associated shopping behaviour. You may feel a little self-conscious about doing it, but most of the time shoppers do not even notice and if they ask what you are up to, tell them the truth. Visits can help you get a handle on off fixture displays and secondary displays, as well as supporting your space planning initiatives and planograms with information like location on fixture. It is always a good idea to sign into the store so that management know you are legitimate and do respect any photography protocols they may have in place.Additional insights can be revealed from observing from outside of the store. I once sat in my car for two hours, counting the number of shoppers who emerged from a well-known grocery retail brand to see if the main shopping mission was a basket or trolley shop. The trick is to do this as regularly as possible. Block out time in your diary each month to escape the desk trap. You are guaranteed to come away with a handful of insights from each store visit.

4. Google Trends.

This is an invaluable source of insight, increasingly so if you want to get ahead of a forthcoming trend. An increasing amount of research is now linking the positive correlation between share of search and brand market share. Research is showing that brands can often expect an increase in share following a period of high search volume, particularly if the brand is a category leader. Google Trends is easy to use with a search database that runs from 2004 to present. Trends can be spotted across geographical boundaries, sometimes down to a region within a city if the search volume is large enough. The related queries feature is particularly useful for spotting trends for category management development strategies. For example, if you need to know the latest trend in perfect food pairings, you can get a fair idea of what is popular by using this feature.

5. Libraries.

When is the last time you visited a library? This, sometimes forgotten source is a treasure trove of data, knowledge, and business insight. Not only will you find the latest book from this years in vogue business guru, but many libraries will now give you free access to subscription only market research databases.  If you need to dig a little deeper for your insight, libraries carry plenty of academic journals containing published research from global thought leaders. Other services like e-libraries have taken leaps and bounds during the pandemic and look out for relevant business events that are free to attend.  Do yourself a favour and join one today.

6. Cupboards, Larders & Refrigerators.

Ok, most of us have not been spending a lot of time in other peoples houses lately. But when things open up, don’t be afraid to open you eyes to the purchasing habits of your friends, families, and acquaintances. Looking where people store their grocery purchases can reveal what makes up their category consideration set. Learn more about the “category of me” here. Let me be clear, I am not suggesting that this behaviour is a credible, full on ethnographical study, but it may lead to a spark that will allow you to pursue or confirm a hypothetical insight that you have been working on. Again, if this feels embarrassing, be open and honest. If the person knows you well enough, they will know that you are being curious in the interest of knowledge rather than being judgemental!

7. Podcasts.

Today’s most popular podcasts tend to focus on entertainment or true crime. However, dig deep enough and you will many relevant business, educational, societal, technological and science podcasts that can reveal valuable insights. Pick something that sparks your initial interest but don’t be afraid to drop it if you feel the podcast is becoming laborious. The beauty of the podcast is that you can dip in and out and listen during mundane or personal times like doing household chores, commuting, or exercising. We all have different learning styles, and some of us learn more by listening to the expert voice, who often appear more accessible or relatable, particularly if they can deliver their content in an unscripted fashion.

8. LinkedIn.

With an audience of 660 million professionals and 17 million global thought leaders, LinkedIn is bound to provide you with some content to inspire or develop your category insights. You will benefit from keeping on top of content posted by your immediate network, be it articles, blog posts, referrals or attendance notices for relevant conferences or webinars. In addition to accessing insights and industry news, you can pick up on opinions and seek advice, either directly by posting publicly or indirectly by contacting via direct mail. Make sure to expand your horizons and join as many interest groups and forums as you can.  You never know what you will learn from these or who you can make contact with.

9. Twitter.

Twitter is an excellent medium for social listening research especially if you are interested in the latest consumer chat about a particular product, service, or issue. In this respect, Twitter can be a useful tool for gauging immediate sentiment and to keep track of ongoing conversations between customers and brands. While it can be difficult to garner an insight just from a micro blog, many companies post links to relevant articles or use Twitter as a gateway to refer you to other areas of interest.

10. The Traditional Media.

We would be wise never to discount the traditional media channels like television, newspapers, radio, and trade journals as valuable sources for category insights. Sometimes the insights come by accident, if you just happen to be flicking between channels or the radio announcer happens to mention a topic that gets your attention. Try to be curious about scheduled programmes or content that you know is coming up.

TV programmes often contain category related content across their schedules within news programming, factual, current affairs and even entertainment genres. For example, within food, the BBC’s "Eat WellFor Less" can often reveal hidden gems about peoples purchasing and consumption behaviour. Channel 4’s"FoodUnwrapped" sometimes throws up some interesting food trends or global
insights regarding culinary habits.

Radio programmes, particularly news and talk formats will regularly feature industry experts who give their views on prevailing topics. These can be revealing if a publisher or author is using the medium to launch a new new piece of research. Follow this trail to lead you to the report, they are often freely available.

Nearly all daily newspapers are now available online, carrying either free digital or subscription only content. The business sections are always worth a browse plus some newspapers employ consumer affairs correspondence who often have their fingers on the pulse. Don’t forget the culture and lifestyle segments, particularly at weekends. Similarly, trade publications have stepped up their game during the pandemic with many making their content freely available. Trade journals will always have spotlight features on specific categories and many carry editorials, data and insights from service providers.

There you have it. 10 free ways to help you to build your category insights. The list is by no means exhaustive. Also, there is no guarantee that an insight will be initially obvious. Like always, the more you dig beneath a data point, opinion, observation, or fact, the greater the insight will become. Insights often develop from a combination of different sources but once it explains the observation and is actionable, then you are almost there.

For more on the list or to have a chat about insight development, book a free consultation via the Enquiries Page.

Years ago, I came across the term “marketing myopia”. The Harvard Business Review credits Theodore Levitt with coining the term. It refers to the idea that a business can become short sighted in its focus in selling products and services rather than seeing the big picture relating to what consumers really want. I have often wondered if there could be such a thing as “category management myopia”?

Let me explain. Is it credible that some consumer-packaged goods businesses commence their category development work on category visions and strategies by looking too inwards too much?  Can the desire to get a new product or brand launched sometimes lead to category strategies that do not really reflect what the consumer wants from a category as defined by them? 

In this post, I will introduce a technique that will help to defend against the temptation to look inwards towards the business. It is called “the category of me”. I will give a few tips on how to use it so that it becomes ingrained in your thinking every time you take on a category development project.

Look Broader and Wider.

Put simply, the “category of me” reflects all the things we as consumers or shoppers use to satisfy a particular need or want. We have a range of items within our categories, and we can pick and choose within this range, depending on our need. The need could be a moment of consumption or a usage occasion. The items that make up the category of me can belong to one product category or they may be complimentary, substitutable, or associated products.  For example, if I want to eat a sandwich, I might have white or brown sliced bread in my immediate category consideration set. However, occasionally I may consider a wrap or a bagel or even something fresh form the local bakers. The items that compliment the sandwich could be the spread or the filling I use. Associated items could be a knife, a toaster or even a lunchbox. I could decide I fancy something different and go for a light salad or some bread sticks with a dip, meaning a sandwich substitute has entered the fray.

Therefore, a business may only category manage their categories based on the range of assortment that exists within their category, however, as consumers, we manage our own categories according to what we have in our complete repertoire to meet our needs on an ongoing basis.

Look for the Opportunities.

Why should we consider “the category of me”? By thinking more broadly, we put the consumer at the heart of our thinking process. This can open up category development opportunities that can drive more growth and profitability for the categories we operate in and subsequently our brands.  It may deliver opportunities to enter other associated categories or throw up possibilities for brand stretch.  The truth is the shopper now has more choice and has more access to more product types than ever before. In 2013,only 3 distilleries were producing gin in Ireland. By 2018, BordBia says the number of producers had grown to 30. In the US, the number of beverages being consumed has not changed much since the 1980’s and there are still only around 35 drinking occasions. However, Beverage Daily reports that beverage categories have changed, reflecting consumers desire for more flavoured waters, functional beverages and sparkling fruit juices. Being mindful of what is in the consumers consideration set can make category strategies more relevant and increase the chances that they will land with the consumer.

Some tips on how to identify the consumers “category of me”:

1.  Ask to look in their refrigerators or cupboards. This simple act can provide insight into what consumers say they are buying compared to what they actually buy.

2.  Social listening can provide quick and timely insight into how people are using and consuming your categories.

3.  Think about the number of items you have in your own consideration set for different categories (the last time I looked, we had more than 6 different spreads in the fridge!).

4.  Keep your eye on people’s shopping trollies. You will be amazed how much you can find out by keeping your eyes open in the supermarket. The key is to broaden your mind as to what consumers actually consider when they make a consumption or usage choice.  Look at other categories in other areas of a store and consider if a shopper is picking them as a substitute to your category on a regular basis. Look beyond your category’s normal temperature state, for example, check out the ambient and frozen aisles if you operate within a chilled category.  Also consider how your category is used and what it is used with to unlock further opportunity. We all have lots of options in our consideration set and it may not just be your category. 

We all have a “category of me”.

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