
208. What You Need To Know about Insurance COIs
Retailers are raising the bar when it comes to liability coverage, and the process of securing the right insurance is becoming more complicated than ever. Not only are brands facing
by NIQ
As a Foodbevy founder, you may be facing the challenge of managing overwhelming and costly data that’s necessary to run your business successfully. But don’t worry, because I’m excited to introduce a new email series in collaboration with NIQ that will help you leverage data as an emerging brand.
Our aim is to simplify the process of accessing the right information for making crucial business decisions. Throughout the series, we’ll be breaking down the effective use of data for creating retailer sales decks, investor presentations, and internal reports.
Our primary focus will be on pricing and promotion tools, along with sharing the best practices that you can use to make informed decisions. With this information at your fingertips, you’ll be able to take your business to the next level with ease.
In February 2023, the inflation rate for CPG unit prices experienced a drop to 10.2%, marking a decrease of 0.8 points from the previous month and the lowest inflation rate since April 2022. However, despite this decline, CPG inflation rates still remain above the US Consumer Price Index, which results in reduced consumer spending power and weak CPG unit sales growth. As a consequence, shoppers are limiting their purchases to only necessities and seeking out value brands and retailers, making it challenging for marketers to engage them. To win back customers, traditional marketing strategies may need to be revisited. The decline in unit sales can be attributed to larger package sizes or consumers only purchasing products that are on sale. To save money, a quarter of Americans are opting for larger sizes of products with extended shelf lives. As a result, value for money has become a top factor for shoppers when selecting stores and products. CPG brands must, therefore, pay close attention to their pricing and promotion practices to prevent losing customers due to budget constraints. Understanding consumer mindsets, behavioral shifts, and relevant data is essential in navigating this challenge.
It’s no secret that these are uncertain times for many consumers. According to recent research conducted by NIQ, consumers are planning to change their spending habits to combat the growing economic insecurity. In fact, 39% of global consumers feel they are in a worse financial position this year, with 74% of them attributing their financial struggles to the increased cost of living. With an unclear future and the possibility of further disruption, consumers are feeling skeptical and cautious about their spending. As a result, many consumers are planning to cut back on discretionary spending categories like out-of-home dining, entertainment, and clothing. However, it’s important to understand that each retail channel, industry, category, and product is impacted differently by this shift in consumer behavior. To make informed pricing and promotion decisions, it’s crucial to have a comprehensive understanding of retail sales data, consumer behavior, competitor pricing and promotion tactics, and other external factors. By knowing the impact on your specific market and category, you can better determine how to react to changing consumer behaviors.
Inflation is a major challenge for CPG brands, impacting their pricing and promotion practices. However, this is just one of many pricing and promotion challenges brands face. From competitive pricing to over-reliance on promotions, there is a lot to balance. Here are five pricing and promotion challenges that you may encounter:
With more than 60% of Americans believing we’re in a recession, brands need all the tools in their belt to succeed. By addressing these pricing and promotion challenges, brands can make informed decisions to stay competitive and profitable.
At the grocery store, inflation in the food sector is currently at 11%, which is higher than in the non-food sector that stands at 9%. The impact of rising prices was more noticeable in the non-food sector, where sales dropped by 4%, compared to a 2% drop in the food sector. It’s not surprising that 36% of consumers expect to spend more on groceries and home goods this year, which is likely to affect all categories of consumer-packaged goods. When consumers have to spend more on essential items, they are likely to reduce their spending in other areas. To ensure success in 2023 when inflation persists, it’s crucial to understand how to position your products appropriately and remain top-of-mind among consumers.
The CPG industry faces a host of challenges that can impact its growth. However, by implementing a few best practices, brands can mitigate the damage and build a stronger foundation for growth in 2023 and beyond. Whether sales are up or down, adhering to these practices can help avoid sudden losses when outside factors change demand. Pricing and promotion practices are critical to a brand’s ability to gain market share and defend against competition. Here are five best practices for pricing and promotion optimization:
Byzzer is the ultimate solution for emerging brands seeking to compete with larger competitors. With its self-service platform, NIQ provides reliable data and insights that were previously only accessible to those with extensive personnel and resources. This levels the playing field and enables emerging brands to build a strong plan with ease. By providing ad hoc data on demand, access to over 40 CPG reports, and the availability of data experts, Byzzer simplifies the process of making informed decisions. The platform offers several key reports, including the Smart Pricing Action Report, Category and Brand Trend Report, Competitor Comparison Report, and Omnisales Performance Report, which can be instrumental in driving success.
Understanding the market, consumers, competition, and your brand is invaluable. Whether you have a team of analysts scrutinizing your sales figures daily or you’re juggling various roles, including running a business and reviewing sales, investing in data can have a significant impact. As Wayne Gretzky famously said, “You miss 100% of the shots you don’t take.” At NIQ, we are committed to helping businesses of all sizes gain a comprehensive view of their market at an affordable price. Over a quarter of the global CPG market is made up of small and mid-sized CPG brands, and we believe they should receive the same exceptional guidance and support as the larger players. There has never been a better time to invest in data and begin developing better pricing and promotion strategies.
To succeed in a shifting market, it’s crucial to stay ahead of the game. That’s why NielsenIQ provides emerging and growth brands with top-notch, reliable data and insights that Fortune 500 companies also benefit from. Our services are tailored to fit various budgets, as we understand that businesses at different stages have different requirements. Whether you’re preparing for a retailer pitch, expanding your distribution, or defending your market position, we have the necessary data and tools to help you thrive.
Our range of solutions includes POS and shopper data, product attribute trends, omnichannel sales data, demand forecasting, pricing and promotion optimization, assortment optimization, expert insights into market trends, and much more.
Retailers are raising the bar when it comes to liability coverage, and the process of securing the right insurance is becoming more complicated than ever. Not only are brands facing
Retailers are raising the bar when it comes to liability coverage, and the process of securing the right insurance is becoming more complicated than ever. Not only are brands facing
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