How To Reach The New Consumer

1. How To Reach The New Consumer Ina Kang and Kelsey Hoffmeister

2. Who is she? • The new consumer: • Spends less • Scrutinizes more • Isn’t going anywhere • “I think we’re on the dawn of a new shopper that’s much wiser in her spending habits and much more frugal.” – Thom Blischok

3. How Do Marketers Respond? • With Price Promotions • Value Messaging • And Word of Mouth

4. The Price Has To Be Right • 86% of shoppers believe price will be an important consideration before making a purchase • Putting food on the table is what’s important • Discretionary shopping is downSense of entitlement

5. The Price Has To Be Right • Del Monte • “Stretch” campaign • Walmart • Annual savings ads • Tells the shopper I care about you • Steak N Shake Co • “4 meals under $4”

6. Defining Value Beyond Price • Not just “cheap, cheap, cheap, cheap” • The brands have to meet their value set • Perception of product value is much more complex

7. Defining Value Beyond Price • Steak N Shake • “Talk Up the Taste” • The promise of good food and good prices • Dollar Tree • Replacing discretionary items with food and beverages • Chipotle • “Food with Integrity” • Panera • “Seven Flavors on One Fork”

8. Word to The Wise • Explosion of social media • Word of mouth • Chipotle • “My Chipotle”

9. Lessons Learned • The consumer is • More swayed to dramatic sales • More inclined to compare prices • Feeling a sense of entitlement • Value comes in a lot of different ways • Invest in Social media

10. Discussion • Do you see yourself as this new consumer? • Which strategy is more important to you? • Price • Value • Word of word of mouth