launchfire.com

Consumer PaCkaged goods

THe neW Consumer

sHoPPIng JourneY

2 launchfire.com

THere Isno oFFLIneDigital influence on in-store sales has been on the rise since

2012, jumping from 12%1 to an estimated 49% by the end

of 20163.

Consumers are embracing the wealth of information available

to them online, but according to a study by Deloitte1, there’s

a gap between consumers’ behaviour and brands’ ability to

deliver desired experiences.

And it looks like companies are missing out.

According to Forrester2, online experiences influenced about

US$1.3 trillion of in-store sales in 2015 — over 5 times more

than e-commerce sales, which raked in US$0.3 trillion. And

78% of respondents to a PwC survey said that they were

influenced in some way by social media in 20154.

This indicates that digital experiences are now an integral part

of their shopping journey. And the influence is only growing.

While digital solutions are necessary to connect with this new

consumer, there isn’t a simple one size fits all solution. Digital

influence and the resulting digital needs vary by demographic

and industry.

1

demograPHICs

IndusTrY

18 to 24 year olds are the most digitally influenced age

range, but that’s not the only demographic consideration:

ethnicity, socio-economic status, and location all impact the

level of digital influence.

Consumers are using digital at different points during their

shopping journeys in each industry. The level of influence

digital has also varies depending on industry, and even

product category within that industry.

3 launchfire.com

4 launchfire.com

Digital Influence isn’t just happening before heading

into a store either — consumers have started to use their

smartphones in-store to continue carving their own

shopping journeys, looking up additional information,

price-matching, and reading reviews all of which Deloitte

refers to as “mobile influence.”

In 2015 34% — or US$1 trillion — of in-store sales in

the US were influenced by mobile content3, and ¾ of

the 23,000 global online shoppers surveyed by PwC

indicated they used their device while in-store4.

make IT moBILe

WHaT are THeY doIng?36% - comparing prices with competitors

36% - researching products

31% - accessing a coupon/promo code

25% - checking reviews

And the numbers are even higher for millennials.

8 in 10 millennials (age 18-34) use mobile while in-store

35% - more likely to compare prices than shoppers over 35

43% - more likely to research product than shoppers over 35

38% - more likely to access coupon than shoppers over 35

5 launchfire.com

2

Digital influence in the CPG sector depends on product

category, but sales in most product categories are at least

50% influenced by digital experiences, reaching as high

as 62% for electronics. On average, digital influence is

also most relevant during the pre-purchase stages of the

shopping journey: Inspiration, Browse/Research, and

Select/Validate.

The main exception to these findings is the Food and

Beverage category.

a CLoserLook aT CPg

6 launchfire.com

Digital influence in the food and beverage category is

lower than other categories, but it’s growing: 31% of sales

were digitally influenced according to Deloitte1. And that

influence is taking place predominantly on consumers’

smartphones while they are in-store.

Foodand Beverage

7 launchfire.com

43% - look for coupons

39% - do price comparisons

37% - look up recipes

20% - read product reviews

And the stats are even higher for Millennials:

51% - find coupons

35% - compare prices

43% - look up recipes

38% - read product reviews

Respondents to a survey by allrecipes.com5 indicated that:

Gamify your recipe marketing with

Spin, Match & Win

8 launchfire.com

HoW PeoPLe sHoP Is aLso CHangIng:

9 launchfire.com

Deloitte reported in 2014 that 67% of shoppers already

know what and where they want to buy1, indicating that

pre-shopping and the earlier stages of the consumer

shopping journey are less important to food and beverage

shoppers.

For Food and Beverage brands that are sold in grocery

stores, this change is of particular importance. A more

recent study by the Food Marketing Institute found that

millennials in particular are “last-minute” grocery shoppers,

with nearly 37% of respondents saying they only make a

grocery list right before going to the grocery store6.

It’s an important trend to note. Millennials are going to

have the most buying power by 2017, and they look for

food and beverages in distinctly different ways:

1) They Change it Up

Most Millennials shop by recipe or meal and are less likely

to buy the same staples every week8.

2) Where it Comes from Matters

Millennials are more interested in local, organic food with

recognizable ingredients and they like knowing where their

food comes from7.

3) Value is Important

Millennials shop for low prices. 85% will change brands

based on price and 56% switch brands to save money with

coupons8.

10 launchfire.com

Cut through the clutter with

Flip to Win

11 launchfire.com

CreaTIngan ImPaCT

12 launchfire.com

Since shoppers — especially Millennials — typically don’t do

a lot of pre-shopping when looking for food and beverages,

targeting consumers via mobile at the Browse/Select and

Purchase/Pay stages of the consumer journey is the most

effective option.

THe BoTTom LIneDigital Influence in the CPG sector is growing -- and brands need to evaluate their product offering in order to identify appropriate strategies for connecting with this new consumer. Connecting with consumers at the right moments along the path to purchase and providing product information as well as discounts will be key for brands moving forward.

SoURCeS: 1 https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-navigating-the-new-digital-divide-v2-051315.pdf 2 https://www.luxurydaily.com/mobiles-in-

fluence-on-offline-sales-continues-to-grow-forrester/ 3 http://www.mediapost.com/publications/article/268210/mobile-influence-on-store-sales-tops-1-trillion.html 4 http://www.pwc.com/us/en/

retail-consumer/publications/assets/Total-Retail-Global-Report.pdf 5 http://www.pwc.com/us/en/retail-consumer/publications/assets/Total-Retail-Global-Report.pdf http://press.allrecipes.com/wp-con-

tent/uploads/2015/12/Allrecipes_2015_Grocery-Shopping-Digital_Trends_Measuring_Cup_low-res_26AUG2015.pdf 6 http://www.fmi.org/research-resources/u-s-grocery-shopper-trends-2015

http://awgadvertising.com/millennials-grocery-shopping-habits-the-list-low-prices-and-convenience/ 7 http://www.foodnavigator.com/Trends/Marketing/Who-made-my-tea-Stories-help-brands-reach-

savvy-millennials 8 http://awgadvertising.com/marketing-to-millennials-as-a-grocery-retailer/

1 • 800 • 896 • 4115

DRIVe AWAReneSSAnD InCReASe SAleS