Matt Goddard, wholesale trading director at PepsiCo, explains why stocking brands people trust is so crucial in these uncertain economic times
We have seen consumer habits and priorities change in recent months when it comes to cereals, with an increased focus on the hot cereals segment leading to market share increasing by +18% [1]. Fewer shoppers have been skipping breakfast, with attitudes continuing to shift to recognise it as the most important meal of the day, with Brits eating 660 million additional breakfasts [2].
Consumers are also considering the health benefits of what they eat and drink [3], which is likely to see segments that are natural and unprocessed experience growth. Quaker Oats caters perfectly to this change in consumer demand with its naturally-occurring health benefits and low sugar content and – as a natural, raw ingredient – we lend ourselves to scratch cooking solutions.
We know that Covid-19 has changed the world as we know it, so we commissioned a shopper sentiment study to really get under the skin of the nation’s ever-changing feelings, habits and behaviours. We found that while more breakfasts are being enjoyed at home, it has been happening two hours later and a third of people are spending more time making it [4]. Oats lend themselves to scratch cooking, so consumers can spend more time creating the perfect meal, adding additional ingredients to their oats that they have in the house to keep the meal exciting but also considering the health benefits.
Value for money
Value for money means a number of different things to different people – it can mean cheap, but also good value for money. In a recession, people are likely to turn to brands they trust for good value, so value in 2021 is all about stocking brands that people know and love.
With value for money being a key purchasing decision for many shoppers, especially given market uncertainty, it makes them a must-stock for retailers. Retailers also need to think about the variety of price-marked-packs (PMPs) that are available – not all need to be £1 RRP. PMPs instil shopper confidence as well as value, as such they could be £1.99 RRP like our 1kg Traditional Oats offering.
Quaker offers a range of PMPs* across its pots, sachets and traditional oats. The total Quaker PMP range has grown +16.78% YTD; traditional oats PMP seeing the greatest growth of +26.9% in independents and symbols [5].
Top tips on boosting your breakfast fixture
1. Price-marked packs – value for money is a key purchasing consideration for many shoppers. PMPs clearly show shoppers they are getting the best value. Stock larger PMP sharing packs to capitalise on evolving needs and demand for sharing formats
2. Social media & in-store PoS – use social media platforms and PoS to remind shoppers of the value and range you offer
3. Get behind promotions – products which offer promotions stand out on shelf, and add some theatre and excitement in your store. This will help to increase perceived value for money to your customers
4. Refine your fixture layout – many customers struggle to find porridge products on the breakfast shelves as the fixture is dominated by other cereal products. Sachet products should have 12% space on cereal fixture, while ensure pots have 7% space in order to see sales grow, with a good mix between PMP and non-PMP formats
*Pricing information is RRP only and at the full discretion of the retailer
SOURCES
[1] Kantar WPO Usage Panel 52WE Rolling | Nielsen EPOS Full Year OT+TT 2020
[2] Kantar, Consumption Data, In home breakfast occasions 52 w/e Sept 20
[3] PepsiCo Internal Research: Consumer sentiment study 2020
[4] PepsiCo Internal Research: Consumer sentiment study 2020
[5] Nielsen YTD WE 19.09.20 Value Symbols and Independents
