Walk into any Supermarket and you will see these messages being displayed prominently — Cheap / Discount / Saver.
We live in a world of Promotions (i.e. Price Discounts) and it is not possible to exist without the same. But when everyone is offering these, how does one stand out? What other Marketing Strategies can be applied? In my opinion, one of the interesting ways to drive a bigger basket is Category Adjacency.
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But what is Category Adjacency and how can it be implemented on the shop floor? It is the understanding the drivers of purchase and making the Shopping Experience an easier one for the Shopper.
Here are a FEW examples:
- Salty Snacks and Dips and CSDs
- Peanut Butter / Honey and Bread
- Spreadables (Cheese / Labneh) and Bakery (Bread / Buns / Rolls / Puffs / Croissants)
- Evaporated Milk and Tea / Coffee
- Biscuits / Savouries with Tea / Milk
- Sauces / Condiments and French Fries
- Breakfast Cereals and Milk and Fruits / Nuts / Berries
- Detergent Powders and Stain Removers / Fabric Softeners
- Hair Oils and Tonics / Serums
- Toothpastes and Mouthwash / Floss
If one is able to keep these side by side on the aisle, it will the save time of the Shopper who will not have to visit another aisle. It will also encourage some Shoppers to pick up an additional item since the usage occasion is the same.
But there are plenty of logistical difficulties in getting this done. Some items require chillers, while their complementary ones do not. Some are Fresh while the complementary ones are Long Life, etc. There are also partnerships to be agreed between the Retailer and two different sets of FMCG Manufacturers. And there is the more difficult question of which manufacturer will gain more should this “combo offer” be executed.
But if one does resolve to implement this, then looking at a Shopper’s Basket AS WELL AS their Consumption Habits is essential. One needs to have enough families BOTH buying the same items on a regular basis AS WELL AS having the practice of consuming them together. Without this it is unlikely that this will drive incremental volumes. There is plentiful Market Research Data on this topic.
And this is just one of the ways in which retailers and manufacturers can look beyond Price Discounts.
If you found this interesting, please do reach out to us to see how we can help you drive data driven business growth.
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