Archivo de la etiqueta: kantar

Meal deals: selling solutions no stuff

“Our homes may be full of cooking books but we’re nation spending less&Less time in the kitchen” this affirmation from Kantar Worldpanel make think me about my fancy colorful books from Jaime Oliver in kitchen…

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32 minutes is the average of how long we spend cooking the main evening meal.

From “15 minutes” with Jamie Oliver TV program to the growth of “Tesco Finest” ready to cook/eat and “Taste-the-difference” (Sainsbury’s) we have evident changes on the shopping bag for the dinner.

So how the retailers are approaching these changes? They’re selling solutions, they’re becoming the Ikea of the food!

“10£ dinner for two” in Marks&Spencer is a good example as how a retailer can take advantage of a lack of time to cook to upsell products per trip. The meals deals are 1/3 of the revenue in the retailer.

Tesco Finest is another example of the approach to make the preparation of the dinner as fancy and ready as it’s possible.

The discounters and convenience stores are the only faces growing this year, one of the reasons is the change of the habits. I will focus on the convenience store, where we go to buy something fast for dinner.  They have a really good opportunity to grow in the mid-week evening meals. Must probably they can benefit for a switching from the main fast food chains. The clearly response from the retailers is new convenience store: as Morrison has opened 100 M local stores and Tesco 150 Tesco Express.

This open a huge spectrum of possibilities to cross categories in the meal deals to create more occasions to eat some products, for example yoghurt as a dessert if you add 1£ more… give me solution if I haven’t planned a dessert.

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The fights between online grocery stores and convenience stores

Let me start with a few facts and numbers that Kantar Worldpanel supplied to MarketingWeek.

  • 75% of the money spent by households goes on food to be eaten on the same day or by people doing top up shopping
  • 37% goes to top-up shops

The market interpreted these changes and for this reason the big retailers are focusing on the “convenience” store to satisfy the daily needs of the customers. For example Waitrose opened 10 “Little Waitrose” in London in 2013.

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But if someone really made a difference it is Amazon in US. The new platform AmazonFresh allows people to get groceries sent to them for free on the same day as they ordered ($35 minimum amount).

Until now the promotions seemed to be the only hook to buy online. The number of promotions is one reason why people are stimulated to spend more on their grocery shopping online: 42% online against 38% in-store. Instead Amazon has shown that “placement” can be more important that “price” in the online market.

However I still love to see the food that I’m buying and finding inspiration walking around the aisles for my menus and feeling grateful to find a big offer with a red label.

To close, I would like to quote Phil Dorsett, Kantar Worldpanel expert solutions director, “going to buy groceries is one thing keeping internet grocery relatively small: people like seeing THE FOOD. Convenience will be a source of growth for retailers for a good while”.