Thursday, August 16, 2007

What do you buy on autopilot?

There is an interesting Nielsen study, reported by Marketing Daily, looking at supermarket foods and people's buying habits.

The theory is that people buy some products every week, without looking for variety, and other products where they are always looking for something new.

The categories are:
Autopilot - Margarine, coffee, popcorn, cheese, cold cuts.
Buzz - Yogurt drinks, chocolate, sports drinks
Variety-seeking - Cookies, chewing gum, cereal, candy
Bargain-hunting - Canned tuna, canned tomatoes, pasta sauce

It resonated with me and my weekly trips up and down the aisles. I buy some stuff the same, week after week, without giving a second glance to alternatives (eg margarine). Other stuff (eg cookies) I always look for something new.

Traditional marketing wisdom suggests that brand leaders should be very careful about changing their packaging due to the risk of losing established buyers. But this study suggests that, depending on your category, you may have to ring the changes to attract new buyers.

Nielsen also makes the point that while sports drinks in the Buzz category are usually heavily discounted, buyers of this category rarely buy on price so marketers are wasting their promotional dollars. Conversely, people buying Bargain-hunting products focus a great deal on price and are looking for savings.

I guess the challenge is how you can move your product from one category to another and then build brand loyalty.
Tim

The picture was taken by Jakob Lodwick whose pictures are on flickr.