Dive Brief:
- Well over half (68%) of surveyed shoppers in a recent report from 84.51°, Kroger's data arm, said they are open to trying innovative and unique products from trusted private label lines.
- The decision to try new products primarily occurs in-store, with the report noting that in-store displays and promotions are the most effective way to influence shoppers’ “in-the-moment” purchase choices.
- Differentiation paired with a discounted price is key to convincing shoppers to veer from their typical purchases and add new store brand items to their baskets.
Dive Insight:
Shoppers want to discover new flavors through grocers’ private label lines, but “new doesn’t mean reinventing the wheel,” 84.51° wrote in its latest Consumer Digest report.
Eighty-eight percent of surveyed shoppers said introducing new flavors to an existing brand qualifies as innovation, according to the report. Seasonal variations (56%), new product features or claims (44%), new textures (38%) and new functional benefits (38%) are also sought-after additions that grocers can make to further innovate their existing private label offerings, per 84.51°.
While shoppers overwhelmingly make the decision to try a new product while in-store, word of mouth and digital media advertisements are the second and third, respectively, channels for new item discovery.
A “tipping point” in getting shoppers to switch from their regular private label purchase to the new, innovative offering often comes down to the promotion or discount tied to it, according to 84.51°.
While only 60% of shoppers will switch to a new item if that product’s price is 5% lower than the regular price, that percentage jumps to 80% if there’s a 20% discount, 84.51° reported.
“As a tactic to get consumers to try something new, steep discounts are undefeated,” 84.51° wrote in a blog post.
