Healthy and responsible youth merchandising.

kid2According to a 2012 follow-up report on Food Marketing to Children and Adolescents by the Federal Trade Commission, 44 food and beverage manufacturers, distributors, and marketers in the U.S. reported spending $113 million on in-store marketing and packaging to reach children and adolescents. While this number has actually decreased since 2006, it’s still a pretty large chunk of change, and it may have to do with the growing influence of kids on the product selection process. Researchers cite a variety of factors that contribute to this trend, including:

  • Single-parent households
  • More time kids spend on media
  • Digital information at their fingertips

Now add childhood obesity to that dynamic. The Centers for Disease Control and Prevention states that more than one third of children and adolescents are overweight or obese. As part of the grocery selection process, kids ask for what catches their eye — usually sugary and salty snacks.

So how does a retailer respond to these trends responsibly?

Manufacturers are stepping up to the plate with health-conscious alternatives marketed toward youth. Think Halos® and Go-Gurt®, both of which promote health as the kid-friendly hero in their advertising campaigns. In addition, Wonderful Citrus (the maker of Halos) and Del Monte Fresh Produce have committed to healthy-eating education programs in conjunction with Boys & Girls Clubs of America and local schools.

“Introducing fresh fruits and vegetables to children at an early age is critical in developing long-term healthy eating habits,” explains Dionysios Christou, vice president marketing for Del Monte Fresh Produce, in a Grocery Headquarters article. “Millions of kids are engaged during the school year in PE and health classes about eating better and being active. So they see these graphics and we are able to tie that in with POS material, display bins, and polybags. When kids go into the store, the hope is they see that and say ‘hey mom, that is one of the fuel items from the… program.’”

How the shelf edge fits in.

While kids seem to notice everything, you still have to compete to capture their attention — as you do with every other market segment. Colorful, novel, and illustrative signage and tags that speak directly to them (as opposed to their parents) break through the clutter and grab their imaginations. Our full-service design department can help you strategize and create an in-store tag and signage campaign that enhances your ROI with this demanding, yet adorable, market.

Contact us today.

 

Digital printing as part of your environmental strategy. #IPD16

Not only does digital printing provide the advantages of speed, short runs, full color, and variable data — all cost effectively, digital printing also offers many environmental benefits.

Digital’s roots.

Digital printing isn’t exactly new. Its origins trace back to 1990 with the introduction of a one-color device that provided the first viable on-demand capability by electronically processing documents for retrieval and output as needed. This allowed companies to print smaller quantities, lower unit prices, and eliminate expensive inventory and obsolescence costs.

As the concept gained traction, color and variable data capabilities evolved along with greater speed and improved print quality, changing the way organizations developed their print marketing strategies.

Digital’s eco-benefits.

  1. Electronic process — Digital printing is part of an environmentally responsible, 100 percent digital workflow that begins with file submission and continues through proofing. This workflow is usually conducted via email or FTP and is totally paperless. Only at the printing process do we start putting toner on paper.
  1. Lower toxicity — Digital printing uses non-toxic toner and mild solvents, producing less chemical waste.
  1. Paper choice — As the main raw material in printing, paper has the most visible environmental impact. But choosing stock involves more than specifying recycled content or selecting from FSC- or SFI-certified forests. Some lesser-known tips include using easily de-inked uncoated paper, specifying lower brightness to reduce bleach consumption, choosing chlorine-free papers, and considering the shelf life of the piece.
  1. Waste reduction — Non-digital printing methods require long setups and running waste that can result in approximately 15 percent of the overall job being thrown in the trash. Digital printing requires no setups and produces far less running scrap, significantly reducing waste from 15 to just five percent.

The best of both worlds.

With all of the advancements in modern technology, there are many ways to save precious environmental resources. Ask Bacompt how we can help your business use digital printing to achieve eco-friendly — and cost-effective — results.

#IPD16

 

Strengthening your center store sales.

We’ve all heard the advice that if you want to eat healthy, shop the perimeter of the grocery store. Younger consumers, especially Millennials who represent a purchasing power of $200 billion annually, are shopping for fresh, unprocessed, whole foods. At the same time, Baby Boomers are seeking more health-conscious alternatives.

U.S. sales of these perimeter items — produce, deli, meat, and seafood — have increased 5 percent over the past five years, according to a Nielsen report dated last June. However, the report goes on to state that center store sales have remained stagnant for some product categories and have declined for others, including those offered by industry giants such as Heinz, Kraft, and Kellogg.

Is fresh food really to blame?

Not totally. While health-centric shopping has definitely given a boost to perimeter sales, packaged foods are quickly catching up to the trend with low-sodium, low-fat, and gluten-free choices, as well as sustainable packaging. And consumers still have a need for long shelf-life foods. For example, 88 percent of all shoppers purchase not only fresh, but also frozen and canned vegetables (Nielsen), creating opportunities for inventive promotional strategies throughout the entire store.

Perhaps more important than the wellness mindset is that people are more harried than ever. Shoppers are looking for the convenience of total meal solutions without spending time perusing the aisles. They’re shopping on a mission, list in hand, and want to get in and out as quickly as possible.

Some strategies.

1. Grab and go. Move staple products typically found in the back or center of the store (like bread and milk, for example) right between the entrance and check out lanes. A mini, mini-mart, if you will, complete with small dairy case and directional signage. Other “store within store” concepts could include one-stop-shopping for seasonal activities (barbeque) or non-allergen foods (gluten- and nut-free).

2. Cross-promote. Offer your most select marinades in the meat department. Consider a freestanding display of cereals in the dairy aisle.

3. Use creative signage to provide complete meal solutions. In addition to clustering menu items when you can (dressing, nuts, and dried cranberries, for instance), provide signage in the fresh salad greens section that tells shoppers the aisle where they can find those items, as well as the aisle for pre-cooked chicken strips.

4. Exploit technology with shelf tags. Feature a “recipe of the week.” Then, using QR code technology, direct your customer to download the recipe (let’s say lasagna) with aisle numbers (pulled from your planogram) for each ingredient. This QR code is included on every ingredient’s shelf tag with a “recipe of the week” discount. Buon appetito!

The bottom line.

Very, very few consumers can commit to a completely unprocessed, whole foods lifestyle, yet almost all are insisting on healthier choices. Packaged goods manufacturers understand this and are meeting that demand. The most important thing is to understand what’s relevant to your customers, and then employ dynamic and data-driven marketing strategies to draw shoppers into the center aisles. Bacompt would like to be an integral part of that process.

 

Marketing to Hispanic Millennials

latino_videoWe all know that you have to consider not only demographics, but also psychographics when it comes to marketing your business. That’s why “Millennial marketing” has become such a hot topic. But the influx of Latino/Hispanic culture provides an additional segment to consider, and the statistics bear this out.

Hispanics make up 27 percent of Millennials in this country — in fact, 42 percent of the total U.S. Hispanic population are Millennials, according to Target Latino based on 2010 Census data. And that’s not all.

Maria Cristina Garcia, professor of Latina/o studies at Cornell University, New York explains: “As the economy has improved, Latinos — like all Americans — have demonstrated greater buying power. However, their potential is yet untapped… If conditions in this country facilitate upward mobility, their buying power will increase.”

Some marketing firms estimate that Latino spending power could climb to $2.5 trillion in the next five years. But before you hire a translator, here are some things you should know about marketing to Hispanic Millennials.

  • They live biculturally, while maintaining strong ties to their ethnic heritage. Meaning: they watch and respond to television and advertising in English, yet they identify culturally as Latino.
  • Among Hispanics, the annual household income bracket of $50,000 and $99,000 holds 40 percent of Hispanic spending power.
  • Like the general Millennial population, which uses smartphones for shopping, they are also just as influenced by mobile.
  • They care more about product selection than price. When asked what online retailers can do to make them more likely to complete purchases, 50 percent of those aged 18 to 34 chose “increase product selection.”

Marketing to Hispanic Millennials is definitely a strategy your business should consider. Through custom design solutions, colorful point-of-purchase tags and signs, and data-driven sales tactics, Bacompt can help you reach and retain Hispanic Millennials to strengthen your brand.

 

Using the reusable bag to increase sales.

ReusableBagPromo2As more cities and states enforce bans on thin plastic shopping bags, environmentally conscious reusable bags are becoming ubiquitous. What’s interesting is that there are psychological effects that come with this new, sustainable territory that may have a positive influence on the retailer’s bottom line.

Studies find that shoppers who bring reusable bags with them often extend that same sense of responsibility to their purchases. Whole and organically grown foods, recycled paper products, and environmentally friendly cleaning supplies — along with their typically higher price tags — are gaining more real estate in the shopping cart.

In fact, according to a study conducted by Deloitte for the Grocery Manufacturers Association (GMA), green shoppers “actually buy more and shop more often than the typical shopper.” The study goes on to say that they are less price-sensitive and will frequently pay more for sustainable products.

But a surprising behavior turned up in another study published in the Harvard Business Review. Researchers found that the virtuosity from bringing reusable bags and filling them with green products also led to reward indulgences, such as junk food. Uma Karmarkar, one of the authors of the study, explains it like this: “You do good, and you give yourself a cookie… literally. In consumer psychology the word ‘licensing’ is the key. If I behave well in one situation, I give myself license to misbehave in another, unrelated situation. In this case bringing a bag makes you think you’re environmentally friendly, so you get some ice cream. You feel you’ve earned it.”

Not only will this phenomenon likely put more money in your cash drawer, but it could also present some creative marketing opportunities.

ReusableBagPromoConsider how shelf-edge tags and signs could be used to target shoppers who have already committed to a tangible action: bringing their reusable bags. Now develop a promotion that either encourages decisions green shoppers may be on the verge of making, or gives them “license” to buy even more. It could be a BOGO offer or a simple discount for whatever’s in the bag. It could be a discount for only your highest margin foods.

The point is, Bacompt can help retailers like you capitalize on the reusable bag trend and its impact on shopping behaviors. Talk to us about creating a reusable bag program that’s right for your business, and give your customers a pat on the back for doing right by the environment.

Shelf-edge marketing: keeping your options open.

In a time of burgeoning product categories, niche marketing, and overwhelming alternatives for the consumer, it seems ironic that retailers now have fewer choices when selecting a shelf-edge marketing supplier.

Recently, the second largest supplier of shelf-edge marketing was purchased by the behemoth of the industry, essentially unifying their reach across the country and likely controlling their pricing structure. This consolidation now affects most of the outsourced tag and sign business in the U.S. grocery sector, giving retailers like you little choice.

From the phone calls we’ve received, many retailers are taking note of this development and are looking for viable alternatives. This is where Bacompt steps in. We can promise you:

• Creative solutions backed up by state-of-the-art technology.

• Cloud-based publishing, centralized processing, and direct-to-store logistics — we address client requests and changes more swiftly and effectively than any other shelf-edge supplier.

• Facilities in Indianapolis (home to the second largest FedEx air hub in the U.S.) and Phoenix that serve the U.S. from coast to coast.

• Lightning-fast turnarounds — we have never missed a deadline for our shelf-edge customers.

• Customer service that’s second to none.

If you’ve hesitated calling us because you’re concerned about our size, consider our capabilities. The largest player isn’t always the most nimble. You deserve to have a choice, and we think we can fill that role nicely.

Thank you, behemoth. You just made our day.

The customer experience, part two: wellness.

When you think “wellness,” one of the first things that may come to mind is the pharmacy. It’s true that over the past couple of decades, in-supermarket pharmacy departments have become a familiar sight. But here, we’ll discuss how wellness products and services — that your customers are seeking in high demand — can touch almost every area of the grocery store.

Expansion of the pharmacy department.

Pharmacies are a mainstay in the supermarket industry, according to the Food Marketing Institute (FMI), and are now providing services that rival or exceed those of their stand-alone counterparts. Flu shots, vaccinations, on-site clinics, medication therapy counseling, smoking cessation and weight management programs, and diabetes coaching are just a few of the offerings of today’s in-store pharmacies. Moreover, the supermarket pharmacist is uniquely positioned to direct customers to other areas of the store, such as produce, in order to fully take advantage of the link between wellness and nutrition.

More choices in produce and meat.

Not only has the selection of meat and produce exploded in the past 30 years (think back, do you remember finding arugula at your neighborhood grocery in 1985?), but now consumers have free-range, hormone-free, organically grown, and locally grown to choose from. When all those choices are not clearly defined through set-up and shelf-edge signage, sorting through them can be a dizzying and frustrating experience for your customer.

Nutrition-conscious packaged food.

There isn’t a food product category these days that doesn’t include a healthier alternative. Gluten-free, low sodium, reduced fat, vegetarian, and vegan are the buzzwords customers look for. Product packaging is mostly responsible for communicating any health benefits, but directional signage and shelf tags can pull these products front and center, separating them from the clutter.

Personal care items.

Consumers not only care about what they put into their bodies, they also care about what they put on their bodies. From hand lotion to toilet tissue, personal care items are just as much of a concern as medications and food. Your customers are looking for non-irritating, dye- and fragrance-free, and hypo-allergenic products.

How are you promoting wellness to your customers?

Despite the trends in obesity and chronic illnesses, people truly want to eat better and live healthier lives. Click here for a recent study on consumer behavior from the International Food Information Council Foundation.

We’ve shown how wellness-related products can extend to practically every area of the grocery store. We assume, in order to remain competitive, that you are already carrying these items. But are you exploiting the full opportunity to communicate and promote to an audience who is seeking them?

Consider a unified, wellness shelf edge and signage program, designed in conjunction with your corporate brand, that can instantly separate and identify the healthy alternatives offered throughout your store. Bacompt has the expertise to counsel you in best design practices, as well as the affiliates that can bring best-in-class nutritional enhancements to the shopping experience.

Sure, there will always be a market for enchiladas and ice cream. But we can help you make the distinction for your customers between healthy and not-so-healthy choices.