Today’s grocery consumer can be demanding. While lower pricing remains a priority, convenience and healthier options that fit their active lifestyles are becoming equally important. Retailers are responding by expanding the perimeter of the store with value-added options, and food manufacturers are eager to meet this growing demand. In fact, brands have a unique opportunity to fill these unmet needs, opening doors for growth and the opportunity to capture the hearts and minds of health-minded consumers. But the time to act is now before the store perimeter becomes increasingly crowded with choices.
Retailers like Walmart and Target have recognized the shift in consumer focus and are jumping on the bandwagon to expand their perimeter of the store. In fact, Walmart recently reported that grocery sales are outpacing general merchandise. Convenience stores are also stepping up, expanding their fresh grab-and-go sections, and even partnering with branded produce, as seen with 7-Eleven’s collaboration with vertical farm Plenty. Dollar General now stocks fruits and vegetables in over 5,000 of its stores. According to Bloomberg’s Deena Shanker, as store perimeters grow, packaged goods decline: “The boldest move a struggling CPG could make right now is taking the leap from preservatives to the farm.”
For food manufacturers and fresh produce growers, the question is: How do you secure your share of this evolving grocery landscape to meet these unmet consumer needs? While some brands are already established in the perimeter with branded offerings within deli, bakery, dairy, fresh produce and even floral, others are just entering, innovating with snacks and value-added items. The learning curve can be steep, but the rewards are substantial.
The goal isn’t just to drive consumption – which retailers are already doing through their own marketing efforts—but to build a strong brand presence that resonates with consumers. How can your brand capture the hearts and minds of these shoppers?
According to FoodMix’s proprietary Perimeter of the Store study (a statistically relevant nationwide survey among 1001 consumers), fresh perimeter items enjoy a high frequency of purchase with each visit.
But what is more interesting and important to marketers are the attitudes and perceptions consumers have about some of these fresh prepared foods located in the perimeter:
Regardless of which section in the perimeter a food manufacturer is targeting, product offerings should be firmly rooted in the brand’s promise, catering to the consumer’s cravings while also reinforcing the emotional connections that foster brand advocacy. The numbers speak for themselves when it comes to cultivating Brand Love:
Your brand’s uniqueness is your most valuable asset in distinguishing it from the competition. Today’s consumers seek an emotional connection with the brands they choose. At FoodMix, we can help drive your innovation efforts within the perimeter of the store by providing consumer and customer insights to ensure a more successful launch. And, we’ll help you craft an authentic brand story that resonates deeply, ensuring your customers keep coming back.
Interested in learning more about how we can support your food or food-related brand? Email me at nbaarstad@foodmix.net.