Top 10 things FMCG gets wrong

By Bergent Research, John Berenyi, Hayley Blake and Ranil Illesinghe

A man picks a Ferrari to cross outback Australia. A woman picks a pair of hiking boots to go with her cocktail dress. A brand manager tries to apply supermarket thinking in a convenience store. Three very different scenarios, but the result is the same. You get stuck, looking ridiculous with no results to speak of.

Twenty years of research experience with blue chip clients has shown the team at Bergent Research one thing over and over again – what works in a supermarket doesn't necessarily work in a convenience store.

So what are the top 10 mistakes that FMCG companies make and, more importantly, how can we learn from these for the future?

1. Expect shoppers to browse

Convenience shoppers are everyone from a tradie looking for a quick and easy snack, a teenager craving a sugary drink, to a man who has just received an SMS from his wife saying that she needs a chocolate fix. All of these shoppers share one thing; they want to get in, fulfil their mission objectives and get out, fast. They are making a pit stop – a quick, focussed process – so the in-store communications need to be the same.

2. Be too clever

What words comes to mind when you think about the word 'convenience'? We bet 'complexity' isn't one of them. There is a good reason for this – convenience is the antithesis of complexity. Too-clever communications fail because they go against the shoppers focus. This is the place for ease and simplicity in everything.

3. Not realising context impacts shopping personas

Just like the mild mannered accountant that turns into a 24-hour party person on the weekends, the shopper that is rational and calculator-carrying in the supermarket can morph into something that resembles an irritated field mouse in Convenience. A shopper's mannerisms, needs and buying patterns change significantly, and so too must the retailing approach.

4. Create interruptions with no benefit

Shoppers expect to be interrupted during their shopping experience, but in a Convenience situation, their tolerance threshold is lowered. This means that it's OK to interrupt them, but you should not interrupt them with something that isn't worthwhile or doesn't offer them a real benefit. If you do, they will feel inconvenienced and come to resent your brand.

5. Treat all shoppers the same

Many Convenience retailers miss opportunities to resonate with these shoppers as they treat all shoppers the same. As with any other retail channel, different shoppers have different reasons for coming into a store. Understanding the 'why' behind this behaviour opens up opportunities to tailor approaches to shoppers' needs.

6. Forget to put the shopper in the spotlight

Every medium from header cards to wobblers to digital can distract if executed appropriately; the key is to put the shopper in the spotlight from planning to execution. This allows retailers to play up the important what, when, where, who and why factors, optimising performance.

7. Cut margins in spite of value

Everyone from an 8 year old to an 80 year old shopper understands the importance of price, but other factors work with price to create value. It's time to protect and improve margins by understanding where to focus your spend and efforts, based on what turns shoppers on.

8. Not updating assortments with market changes

The economy is crashing and the sky is falling down, right? Why then is the Ice Tea segment experiencing such growth? In any downturn there are categories that grow. In such an environment, not updating assortments with market changes is disastrous. This is the time to take a step back, make room for the products shoppers are buying more of and cull the duds.

9. Take shoppers' feedback literally

Shoppers, especially those seeking the typically low involvement products, are usually unable to express what they truly think and pinpoint why they make certain decisions. Tread carefully with customer feedback: in many cases, they say what they mean.

10. Rely on traditional research approaches

Many traditional research approaches require shoppers to consider and contemplate the rationale behind their behaviour. We measure what shoppers do, not what they say they do.

This article has been provided by Bergent Research. For more information call 03 9322 4000.