‘Sing It With Oreo’

Omnichannel Marketing

Mondelez Goes Gaga at Target

BY CHARLIE MENCHACA

Mondelez International’s Oreo brand served up fun with Lady Gaga earlier this year through an engaging omnichannel program at Target.

“Sing It With Oreo” brought the brand together with the famous singer, actress and philanthropist through limitededition cookies with unique packaging and green-colored lling that tied into her album “Chromatica.”

Oreo launches a signature campaign every February leading up to national Oreo Cookie Day on March 6. Amidst the resurgent pandemic and volatility of life this past year, faithful cookie shoppers needed a particularly uplifting message while Oreo sustained the fun delight associated with the brand, says Jennifer Mason, customer director of shopper marketing at Mondelez.

“Our insights showed us that limitededition products serve the playful initiatives of our brand and inspire impulse purchases that enhance basket size and frequency of purchase,” Mason says.

Mondelez pivoted from heavy in-store activation used before the pandemic to building out an omnichannel experience with a stronger digital focus for this campaign. The company worked with Target to incorporate a “Spend $15 on Oreo cookies, get a $5 Target gift card” promotion redeemable online and instore as a headline for its banner ads with Roundel, the retailer’s media network.

The banner drove consumers to a landing page within Target.com that also contained a link to partner Breaktime Media’s “Sing It With Oreo” content engagement hub. The hub included a smart personality quiz delivering personalized “Oreogram” messages. From there, the experience o ered digital, branded picture frames for social media, followed by e ortless opportunities to add to cart, buy in-store and earn rewards.

Mondelez designed its exclusive-toTarget Snapchat and Facebook ads with audio that embodied the campaign’s fun musicality, and creative that highlighted its core messaging — “Speak your heart. Spread kindness. And turn your voice into musical messages.” The manufacturer then turned to in uencer company Acorn to connect and collaborate with in uencers who posted sponsored content of the limited-edition Oreo product in action via Instagram. Mondelez agency partner VMLY&R Commerce also contributed to the campaign.

The marketing e orts paid o with successful results. Shoppers embraced the interactive content with hundreds of thousands of engagements through Instagram stories, Mason says. Breaktime Media’s shopper engagement experience far exceeded benchmarks with an average engagement time of 4 minutes and 23 seconds, she adds.

The Lady Gaga Oreos led the way as Mondelez’s top-selling online SKU in February 2021, driving almost one-third of all Oreo sales. Shoppers’ ultimate enthusiasm for engaging with the online campaign was clear, considering overall Oreo cookies saw triple-digit online sales growth from the prior February, Mason says. As a result of this campaign, Oreo cookies grew by double digits year-overyear while driving a substantial increase in category dollar share.

“With strong positive returns for both the brand and retailer, along with unprecedented engagement by consumers drawn to our message of positivity and empowerment, this program was e ective in the betterment of everyone who was involved,” Mason says. IQ

THE RISE

OF THE ‘FUR BABY’

The continued humanization of pets and the pandemic-spurred pet adoption boom is propelling the pet care industry — an $80 billion category in the U.S. for 2021 — into an era of explosive growth. Here are four trends fueling the momentum of this growing category ...

BY MICHAEL APPLEBAUM

Historically, pet care products have tended to experience growth rates that mirror those of the overall CPG business. That correlation was upended in 2020 when the pandemic-induced pet adoption boom resulted in a huge spike in sales of pet food, treats and supplies, a roughly $50 billion category that accounts for about half of all pet care industry sales. This year, the category’s momentum has shown no signs of slowing down. The overall pet care market itself in the U.S. is estimated at nearly $80 billion for 2021, as reported in a market study published by Global Industry Analysts in August (which also forecasted the global pet care market to reach $241.1 billion by 2026). And according to IRI, dollar sales of pet care products were up 7.1% for the 52 weeks ending June 13 — their highest growth rate in the past ve years — and 8.2% for the 12 weeks ended Aug. 8. If there is a single overarching trend that is responsible for driving much of this growth, it is the ongoing humanization of pets. American consumers consider pets part of the family — a sentiment that has picked up steam and is growing, especially among Millennials who are forgoing or delaying traditional milestones such as marriage and having children. In fact, Millennials represent the largest share of pet owners in the U.S. by generation (31%), and more than three-quarters of female Millennials (76%) refer to their pet as their “fur baby,” according to Statista. These cultural shifts are causing people-focused marketing themes to increasingly spill over into the pet category — everything from premium food and sustainable packaging to new health and wellness-oriented products and PR initiatives. And marketers are clearly having fun with the trend. Petco delved deep into the animal psyche in trend. Petco delved deep into the animal psyche in a series of ads depicting humans as talking pets. Mars a series of ads depicting humans as talking pets. Mars Petcare launched a set of matching human and dog meals, Petcare launched a set of matching human and dog meals,

Bestie Bowls, and leveraged a partnership between Postmates and a “pup-up” store to o er delivery of Cesar Wholesome Bowls, a new line of culinary-inspired wet food for dogs.

Competition in the category is also heating up. National brands are winning out over private label, while club stores and dollar stores are showing strength relative to other retail channels. But mass and specialty stores outperform with younger shoppers, according to data from IRI, which may o er those retailers an edge going forward. Online, challenger brands continue to steal share from established market leaders, as the top 10 brands account for just 40% of e-commerce sales, according to 1010data.

Read on to delve deeper into these changes and other highlights from the year’s top trends in pet care.

1PETS ARE PEOPLE, TOO

With pet owners viewing their furry friends as an extension of the family, marketers are embracing the new reality and leaning into the term “pet parents.” Petco took the idea a step further this year by literally depicting humans as pets in its “It’s What We’d Want If We Were Pets” brand marketing campaign, which included TV spots, online videos and digital ads, as well in-store merchandising support from P-O-P signage.

The retailer has increased its assortment of natural food brands like The Honest Kitchen, which has been featured prominently on Petco.com and in aisle displays at Petco stores. The San Diego-based company touts its use of all non-GMO ingredients and “human grade” products made from eggs, salmon, pumpkin and parsley. Plant-based pet food products also are on the rise. In June, Mars Petcare introduced Karma, a line of “plant- rst” pet food packaged in recyclable bags that is comprised of more than 60% plant-based superfood ingredients like axseed and kale, as well as traditional pet food proteins like white sh and chicken. “Karma was created based on consumer insights and human trends in the plant-based food space. We found a growing demand for similar

Mars Petcare’s Karma line of plant-fi rst pet food is packaged in recyclable bags.

plant-based food options for pets,” says Craig Neely, vice president of marketing at Mars Petcare.

The next wave of innovation may come from cultured or “cultivated” proteins that are sourced directly from animal cells, which eliminates the need to farm animals for food. The Berkley, California-based biotech startup Wild Earth, whose products include a dog treat made with cultured koji (a lab-induced fungus that purportedly contains more protein than steak), recently secured a $23 million investment from venture capitalists and famed promoter Mark Cuban.

Organic, raw and human-grade pet food products are also some of the fastest growing segments online. Customers are embracing new, healthier alternatives from challenger brands like Full Moon, which has shown some of the highest customer retention rates and increases in share of new customers in the category, according to 1010data’s Market Intelligence eCommerce Panel, which tracks year-over-year growth from June 2020 through May 2021.

2BRAND STRENGTH BESTS PRIVATE LABEL

Private label sales in general have been on a steady upward climb over the past decade, but it’s a somewhat di erent story in the pet category. Dollar sales of private-label pet products were up on average about 4.5% in the past two years, which is down from the increase of 6.5% in 2018 and 9.6% in 2019, according to IRI. Meanwhile, private label’s share of the category has remained at, currently accounting for about 11% of all pet food dollar sales and 34% of pet supplies, according to Nielsen data provided to the Private Label Manufacturers Association.

“The growth in pet care products is coming from premium and super-premium products, not private label,” says Joan Driggs, vice president of content and thought leadership at IRI. “Consumers are willing to pay more, because if your pet is happy, you’re happy.”

Jim Wisner, a supermarket industry veteran and expert in private brands, says that retailers have struggled to keep pace with new pet product introductions from national brands, especially those on the premium end. “Major retailers have invested signi cantly in their private pet brands, and as those get better established, we should start to see a resurgence,” he says. “Retailers also can do a better job of getting store brands recommended [and sold] by veterinarians, which is its own distinct channel.”

This year, Target launched a new private label pet food brand called Kindfull, which includes more than 50 items, while Walmart added a premium private label pet food o ering, Pure Balance Pro+, with prices ranging from $10 to $30. Amazon has been in the space at least since 2018, when it launched its Wag pet brand.

In addition to leveraging services (Walmart began adding in-store vet clinics back in 2019), brick-and-mortar retailers can cater to pet owners’ educational needs to help increase foot tra c and boost sales of store brands, says Anders McGillis, principal at the Toronto-based consulting rm Jackman. “Retailers naturally have the product mix and the ability to engage shoppers in a conversation about wellness for pets,” he says. That includes

Target’s Kindfull pet food private label includes more than 50 items.

o ering tips on everything from nutritional needs to an ideal walking schedule for dogs, he notes.

3CHANNEL WARS HEAT UP

Sales of pet products are growing across all major retail channels — but there are clear winners and losers. Through the second quarter of 2021, total retail dollar sales in the category were up 7.1%, according to IRI, but the increases were largely concentrated in club stores (up 8%) and dollar stores (7.1%), with a second tier of gains in drug (5.3%), grocery (3.6%) and convenience (2.1%) channels. Mass/supercenter stores and specialty pet retailers, meanwhile, only managed to eke out gains of about half a percent.

According to Driggs, part of the explanation for these disparities stems from changing shopping behaviors during the pandemic, which had a particularly strong impact on the pet category. “A lot of people took their stimulus dollars and invested in a club membership,” she explains. “Stores like Sam’s Club saw greater household penetration and people were spending a lot of money on deals. They appreciated the savings and because they were at home — especially in a category like pet care — it made sense to buy in larger sizes.”

If mass and specialty retailers have an ace in the hole, it’s their strength with younger shoppers. IRI data shows a distinct channel preference among di erent generational cohorts. Younger Millennials in particular over-index with specialty retailers, while older Millennials favor drug and mass/supercenter stores. Grocery and convenience stores are the preferred channels of older generations, particularly older Boomers and Seniors.

“Youngest pet parents are new to this game and going to specialty stores to learn,” says Driggs. “Specialty can o er a full breadth of services like grooming and nding a dog walker. You can get everything taken care of in one place and feel like you’re talking with someone who can help you.” Older Millennials focus more on the trip mission, looking for a quick x or where they can nd the best value, adds Driggs.

Target is trying to give its pet aisles a youthful infusion with the addition of Wild One, a startup brand geared toward designconscious Millennials. Earlier this year, Target featured an endcap display with a selection of Wild One products, which include leashes, poop bags, toys, grooming items and supplements.

4CHALLENGER BRANDS FUEL BOOMING ONLINE SALES

The pet supplies category experienced overall online growth of 35% this year, and that gure was even higher in sub-segments such as pet snacks (45%) and cat food (43%), according to the 1010data panel. In pet care, the report noted, the internet is literally the home of long-tail brands. The top 10 brands in the food and snack segment accounted for only 40% of sales, and only two of those have a market share above 5%: Purina’s Pro Plan (7.2%) and Hill’s Science Diet (6%). Online customers are branching out from established market leaders to emerging brands like SmartBones, a rawhide alternative, and Halo, a holistic pet food brand that o ers vegan options.

Frank Riva, vice president of marketing at 1010data, expects the competition to intensify further as leading e-commerce platforms Chewy.com and Amazon continue to draw more search tra c and promote their own pet brands in search results on the sites. “The top ve dog food brands experienced a very high conversion rate [of 88% or higher] when one of their products was considered, based on our analysis of the search terms employed,” he says. “But as the pet category matures online, just as with other categories, we can expect a lot more brand switching as customers get pulled away from their initial searches.”

Given the fertile online environment, marketers are increasing their distribution of pet care products with e-commerce leaders like Chewy (which is the top platform with 44% market share in the category, according to 1010data) and Amazon. “Given the shift to online and e-commerce shopping spurred by the pandemic — we saw it jump from 16% of pet food category sales to 23% at the beginning of the lockdown period, and it has remained at about 25% since then — Karma is available to purchase on Chewy and Amazon, as well as in-store and online from Petco,” notes Neely of Mars Petcare.

E-commerce is expected to drive future growth in the category, even if the annual growth rate decelerates as the pandemic wanes. Global e-commerce will account for 29% of overall category sales by 2025, according to Statista, while Packaged Facts predicts that e-commerce will surge to 35% of the non-food pet supplies market in the U.S. by 2025. For pet care marketers, those kinds of gures are “paws” to celebrate. IQ

Petco delved deep into the animal psyche in a series of ads depicting humans as talking pets.

HOLIDAY 2021: MEET THE

HYBRID SHOPPER

How will consumers behave during the holiday 2021 season? A new study from 84.51 reveals omnichannel shopping is here to stay as we adapt to the ‘next normal’

BY JACQUELINE BARBA

The pandemic spurred immense change in shopper behavior and the retail industry at large in 2020. Due to lockdowns and safety concerns as well as out-of-stocks in stores, e-commerce was unleashed — in many cases out of necessity.

Consumers are now increasingly shopping online, but they are not giving up their in-store trips. A new kind of pandemic-era customer has emerged — the hybrid shopper.

While shopper behavior is still evolving, particularly in e-commerce, it’s evident the online shopping segment has already created signi cant opportunities for brands that were quick to recognize omnichannel shopping as the “next normal.” With the 2021 holiday season here, it will be a test of marketers’ ability to create and o er the best experiences — both in-store and online — for a new era of hybrid shoppers that uidly move across channels.

The Birth of the Hybrid Shopper

Before understanding who today’s hybrid shopper is, it’s important to learn how they were born. Prior to 2020, the biggest hurdle for e-commerce was convincing grocery shoppers to try pickup or delivery for the rst time.

As restrictions eased and more shoppers headed back in stores, many of those who tried e-commerce ful llment for the rst time in 2020 have continued to use the channel, at least on occasion, according to consumer research and historical data from 84.51, the in-house data shop for Kroger.

And even as more people have gotten vaccinated, safety concerns are lasting longer than many anticipated (partially due to the COVID-19 Delta variant wave).

Barbara Connors, vice president, commercial insights for 84.51, says the spikes and falls in COVID-19 cases have a clear impact on shoppers and their decisions on where to shop. Even when shoppers started going back in stores, she says, hybrid shopping actually increased because some people who moved primarily (or only) to e-commerce during the height of the pandemic still shopped that way, at least part of the time.

“We see a very tight correlation between concern and cases, and e-commerce usage,” Connors says. “This tells us that even in a post-pandemic environment, hybrid shopping will continue, because people have now started to use e-commerce and realized that you now have multiple methods to get your groceries that ful ll di erent needs, including convenience.”

Before the pandemic, consumers mostly adopted e-commerce because of convenience, but now safety is a key factor.

And some consumers are still looking for the experience, which drives physical store trips. Instore shopping offers valuable experiences, such as talking to store associates, handpicking products and, especially during the holiday season, browsing seasonal merchandise for decor and inspiration.

Additionally, consumers still choose to go into the store for high-stake items. According to 84.51 research, one of the highest-stake items is a Thanksgiving turkey. “Last year during the holiday season, those that were most engaged in e-commerce still disproportionately went to the store to get their holiday turkeys,” Connors says.

A recent white paper from 84.51, dubbed “Holidays 2021: Who’s on your list? Why the hybrid shopper is here to stay,” combines recent studies as well as historical data from 84.51 Stratum (a platform containing shopper data from nearly 60 million households over the past four years) to paint a picture of the evolving shopper landscape ahead of the holidays.

In 2020, 58% of shoppers went in-store, 24% shopped online for delivery and 86% picked up their groceries via BOPIS services, according to 84.51’s April insights study of 400 digitally engaged shoppers.

Digital Shopper Motivations

Who are the digitally engaged shoppers? There isn’t just one type, or even two, but there are commonalities and buckets to segment them in. In terms of what motivates digital shoppers, according to 84.51, they trend Gen X and younger, have higher incomes and have children. They are high-convenience shoppers and medium to high natural and organic shoppers.

Beyond these common traits, 84.51 identi ed two distinct household types: the “digital champ” and the “digital dabbler.” Comparing the two, digital champs spent 20% more during the holidays than digital dabblers — and both spent signi cantly more than all other shoppers. The champs spent three times more on holiday pickup than the dabblers and 2.2 times more than all households, while the dabblers made two to four online shopping trips with pickup or delivery, and three or more trips in-store during that time.

Connors indicates that even within this hybrid shopper space, there’s a spectrum. “There are people who use [e-commerce] more than in-store, or in-store more than [e-commerce], and that ratio is di erent and how you engage those shoppers should be di erent,” she says, adding that marketers must do analysis quickly — and often — because shopper behaviors are changing so frequently.

For example, shoppers who recently adapted to e-commerce will change their habits over time, not only because of technology advances, but because of external factors like in ation. It’s also becoming easier for consumers to get their orders, as evidenced by retailers beginning to o er quicker delivery times.

Digital Tools

According to that April study, most online shoppers are using digital coupons — and often. Of the respondents, 90% use digital coupons, with 40% using one on every trip.

Additionally, online shoppers are utilizing other digital tools such as search, which drove the most engagement during the holiday period, according to 84.51’s research. Recent purchases, “start my cart” and browse functions from non-holiday to holiday weeks rose to the top as frequently used digital tools. Presenting products in multiple locations for shoppers to find is another way to accommodate holiday-specific e-commerce shopping behaviors.

Digitally engaged shopper habits

How did digitally engaged shoppers shop for the 2020 holidays? What percentage of their shopping time did they spend on each?

In-store

Delivery

Pickup 31%

12% 24% 58%

58% 86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: 84.51 Insights study of 400 digitally engaged shoppers, April 2021

Personalization is also a way to appeal to busy holiday shoppers and build brand loyalty. CPG companies can boost items further up the personalized product feeds by bidding on and purchasing sponsored spots within retailers’ digital coupon programs, search functions and other placements to build greater visibility.

Pickup vs. Delivery

Most e-commerce shoppers reported they used pickup during the 2020 holiday season and more than half also shopped instore, while just one in four used deliveries, according to 84.51’s April study. However, delivery dollar sales per household are on the rise, having increased 25% in the second half of 2020.

Connors says shoppers prefer pickup over delivery because of smaller or no fees, they have more control over timing and running in the store for more, and they can usually use paper coupons. Pickup and delivery per household combined grew by 17% in the 2020 holiday season compared to 2019, meaning there were more opportunities to be in the e-commerce basket.

Why are shoppers going in-store?

The item I want isn’t in stock online 26%

Timing and schedule

Other

18%

15%

I enjoy the process of shopping

To discover new items

10%

10%

Promotion or coupons 9%

Typical meals prepared

Only non-Hispanic foods Mostly foods from origin country or other Hispanic countries About half Hispanic foods and half non-Hispanic foods Mostly non-Hispanic foods

14% 12%

60% 45%

The quality of the food is better 7%

I enjoy seeing the special item displays 5%

Source: 84.51 Insights study of 400 digitally engaged shoppers, April 2021

20%

5%

Every day meals

+16% 29%

12%

Holiday meals

Omnichannel Is Key

As COVID-19 restrictions have relaxed, in-store holiday shopping could see a boost even among digitally engaged households that still opt for an occasional in-store shopping trip (with item that still opt for an occasional in-store shopping trip (with item availability as the top driver in their decision). The convenience availability as the top driver in their decision). The convenience of e-commerce, particularly for pantry basics, will keep of e-commerce, particularly for pantry basics, will keep pickup and delivery in the mix, though.

The balance shift could be more pronounced among The balance shift could be more pronounced among digital dabbler households, per 84.51, as they return to digital dabbler households, per 84.51, as they return to their pre-pandemic habits, than among digital champs, their pre-pandemic habits, than among digital champs, who were more likely to have already shopped pickup or who were more likely to have already shopped pickup or delivery before the pandemic hit.

Plus, the holidays are likely to bring digital champs in Plus, the holidays are likely to bring digital champs in stores. While pickup or delivery accounts for more than stores. While pickup or delivery accounts for more than 71% of their overall shopping spend during the holiday 71% of their overall shopping spend during the holiday period, it accounts for only 56% of their turkey spend, period, it accounts for only 56% of their turkey spend, indicating even holiday shoppers want to hand-pick indicating even holiday shoppers want to hand-pick their turkey.

“The in-store experience isn’t going away,” Connors “The in-store experience isn’t going away,” Connors says. “As marketers are focusing on e-commerce, they says. “As marketers are focusing on e-commerce, they also need to make sure to engage customers where also need to make sure to engage customers where they’re at, and where they’re at today is both [online and they’re at, and where they’re at today is both [online and in-store].”

Base size: All respondemts (1291) Q19: Thinking about the everyday meals you and your family prepare, what type of food would you typically say you have? Q20: And for the holidays you celebrate (i.e. Christmas/New Years/Lent/Easter, etc. would you say you typically have?

Source: 84.51 qualitative study of 600 consumers utilizing the capabilities around December 2020 holidays, conducted in January 2021 in partnership with Dentsu.

Other Notable Trends

With the pandemic spurring an increase in screen time, shoppers began ocking to social media sites, such as Pinterest, Instagram and Facebook, for inspiration (particularly during the holiday season), in addition to discovering while browsing aisles in-store.

Savvy brands and retailers are now combining social and instore to target shoppers. For example, Procter & Gamble’s Old Spice recently used Snapchat codes from social media company Snap to give shoppers an augmented reality (AR) experience within store aisles. At Walmart, an endcap display stocking Old Spice body spray, lotion and body wash communicated the brand’s “Smell Ready for Anything” tagline while depicting a Snapchat code. Shoppers could scan using the Snapchat mobile application to unlock AR experiences.

Kroger promotes festive and family recipes ahead of the holidays on its chain websites, linking to dedicated recipe pages with quick add-ingredient-to-cart functionality. The retailer encourages CPG marketers to understand how di erent cultures use their product lines and apply the Kroger Precision Marketing (its media network) advanced audience targeting tool to reach relevant households with Hispanic or Asian-American messaging, for example.

Hispanic Shoppers/Ethnic Marketing

Providing traditional ethnic recipes and a seamless path to purchase ingredients can be key, especially around the holidays. In an 84.51 study around December holidays in 2020, 60% of In an 84.51 study around December holidays in 2020, 60% of Hispanic shoppers said they typically prepare about half Hispanic Hispanic shoppers said they typically prepare about half Hispanic and half non-Hispanic foods for everyday meals, but the holidays and half non-Hispanic foods for everyday meals, but the holidays bring a greater focus on their roots and cuisine. bring a greater focus on their roots and cuisine.

“From a retailer and brand perspective, it’s really important that “From a retailer and brand perspective, it’s really important that you get it right during that season, because these customers are you get it right during that season, because these customers are speci cally looking for authentic items,” Connors says. “Not only speci cally looking for authentic items,” Connors says. “Not only that, it’s also a time where customers are looking to try new dishes that, it’s also a time where customers are looking to try new dishes or expand their recipe portfolio, so it’s an opportunity as a retailer or expand their recipe portfolio, so it’s an opportunity as a retailer or brand to bring new avors to those customers.” or brand to bring new avors to those customers.”

Connors’ advice for marketers is to double-down on content. Connors’ advice for marketers is to double-down on content. “Creating content for on-site ad placements is a really relevant “Creating content for on-site ad placements is a really relevant way to bring recipes and inspiration to customers as they’re way to bring recipes and inspiration to customers as they’re building their basket,” she says. “It’s also really unique to building their basket,” she says. “It’s also really unique to e-commerce and not easily done in-store.” e-commerce and not easily done in-store.”

Additionally, the holiday season is also a common time for Additionally, the holiday season is also a common time for retailers and brands to give back by creating or leveraging an retailers and brands to give back by creating or leveraging an existing holiday donation program. But they’re not only good for existing holiday donation program. But they’re not only good for the communities they help — campaign donations by shoppers the communities they help — campaign donations by shoppers are associated with increased long-term loyalty, 84.51 says. are associated with increased long-term loyalty, 84.51 says.

80%

70%

60%

50%

40%

30%

20%

10%

Kroger 2020 Zero Hunger Zero Waste campaign drives loyalty

Non-Donator Donator

74% 79%

16% 26%

0%

Bottom Non-Loyal Risers Top Loyal Retention

Source: 84.51 Holiday Donation Campaign Analysis for Kroger ZHZW, July 2021

Based on data from Kroger’s 2020 Zero Hunger Zero Waste cause campaign, the retailer saw a 68% higher increase in loyalty among previously “non-loyal” donors compared to similar non-donors, and 7% higher retention of loyalty among “top loyal” donors when compared to similar non-donors.

Final Insights

Unlike last year, people are excited to get together in person with friends and family for the holidays this year. An 84.51 study of 400 shoppers who have purchased groceries in the past year (conducted in May) found that 94% intended to gather for the Fourth of July holiday with the same number or more people than last year — an encouraging sign for the winter holidays as well.

Spending is also steady (at the time of the study), and one in three will travel more this holiday season. During the 2020 holiday season, spend per household per week increased compared to the rest of the year.

And without a doubt, the market will continue to evolve. “As e-commerce grows, you’re going to have more hybrid shoppers,” Connors says. “And they are not all created equal and need to be treated di erently.” IQ

ActivationGallery

BevAlc Category

The beverage alcohol (BevAlc) category has been interesting to watch over the past couple of years. The retail market boomed in 2020, partly due to the pandemic-driven increase in at-home consumption, though sales of some segments including wine and hard seltzers have since waned slightly. As the market continues to expand, consumers are continually seeking new innovations that t their lifestyle, such as low-calorie options, hard seltzers and teas, ready-to-drink alcohol beverages and even low- to no-alcohol drinks. Brand marketers aren’t letting up on their in-store retail e orts, but are evolving and expanding with more digital experiences to help tell their stories and engage shoppers.

BY JACQUELINE BARBA

An endcap display at a Niemann Foods’ Harvest Market stocked whiskey from Bardstown Bourbon Company and employed backlighting to illuminate a bottle from behind, highlighting the libation’s warm, caramel tones. Signs a xed to the display invited shoppers to scan a QR code to take a virtual tour of the brand’s distillery in Bardstown, Kentucky. The code directed shoppers to BardstownBourbon360.com to learn how the brand creates its whiskey. (SKUs from Chattanooga Whiskey Company and Stonewall Kitchen’s Tillen Farms Bada Bing Cherries were also merchandised on the display.)

E. & J. Gallo Winery’s spirit-based hard seltzer brand, High Noon Sun Sips, commanded attention via case stacks topped with a corrugate palm tree at Harvest Market. A sign a xed to the tree encouraged shoppers to text “sunsips” to a promotional number to save $3 with every eight-pack purchase from the brand (maximum of three), or $5 for every 12-pack from the brand (maximum of two).

Anheuser-Busch is elevated the Michelob Ultra organic hard seltzer it launched in March with sponsored Pinterest pins spotlighting an alcoholic “peach on the beach” recipe and inviting users to “Shop the recipe.” A swipe up functionality on the branded ad directed users to dedicated “peach on the beach” search results within Albertsons Companies’ Jewel-Osco website — without exiting the Pinterest platform. The search results comprised all the xings for the recipe: a variety pack of Michelob Ultra’s seltzer, a bottle of Bacardi rum light and a jug of private-label Signature Select cocktail cranberry juice.

Header cards a xed to case stacks of Fifth Generation’s Tito’s Handmade Vodka at Harvest Market tied in to the start of football season by inviting shoppers to text “titostailgate” to a promotional number for entry into a sweepstakes awarding “game day gear,” such as a tent or grill.

Proximo Spirits, importer and distributor of Jose Cuervo tequila in the U.S., brought a national sweepstakes to Walgreens for the Cinco de Mayo holiday via QR codes that appeared on dedicated oorstands. The codes linked to an online quiz asking consumers to vote for their favorite type of margarita, as well as enter a sweepstakes that awarded ve $500 unspeci ed gift cards. The site also provided related recipes and o ered a $10 coupon for the purchase of two qualifying tequila items at retail, or $5 o a drink or bottle purchase on-premise.

For Pride Month in June,

Albertsons Companies’ JewelOsco supported the launch of a limitededition, Pride-themed case of Molson Coors’ Vizzy hard seltzer using circular features and social media outreach. Touting a “Be vizzible for Pride” message, Jewel’s e orts spotlighted Vizzy’s new rainbow package, which was developed with Chicago-based design agency Soulsight and communicates a “Love your identity, live past labels” message. Marketing materials also highlighted the duo’s joint donation made to a Chicago-based nonpro t focused on LGBTQIA+ rights.

Circle K merchandised individual cans of beer and booze from AB InBev and Molson Coors using a large rectangular dump bin that was lled with ice and separated the productd by brand. A xed signage communicated three “Pick Any” deals – two 2-for-$5 o ers and one 2-for-$4.

Target stores indirectly tied in to March’s designation as Women’s History Month by grouping wines from various manufacturers on a dedicated endcap and spotlighting the women who helped make them. Multiple shelf cards positioned on the endcap spotlighted founders and executives alongside their respective wines, including Chandon winemaker Pauline Lhote; Claudia Manetta, export manager at La Marc; and Erica Blumenthal and Nikki Huganir, founders of Yes Way Rose (imported by Prestige Beverage Group). The signage contained QR codes directing shoppers to web pages or YouTube videos to learn more about both the wines and the women.

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ActivationGallery

Boston Beer Co.’s Samuel Adams drummed up support for its seasonal Octoberfest beer with displays at Meijer and Schnucks. At Meijer, the beer was stocked on pallet displays topped with a larger-than-life beer stein, while spectaculars promoted the lager at Schnucks.

TV screens at a Sam’s Club store in West Jordan, Utah, were showcased atop a pallet display merchandising Lieutenant Blender’s Cocktails in a Bag items. The screens played tiki bar-themed video tutorials using the cocktail mixes, which just require alcohol and water, as shelf trays pointed out.

O cial beer and wine sponsors of the PGA Tour’s 2021 Wells Fargo Championship, AB InBev’s Michelob Ultra and E. & J. Gallo Winery’s William Hill Estate in May erected a golf-themed spectacular at Kroger’s Harris Teeter in Charlotte, North Carolina. Case stacks from both brands, an “Enjoy like a pro” Michelob standee and an empty golf bag were positioned atop a branded green carpet near the meat section. A xed signs plugged related brand e orts and the golf tournament.

Binny’s Beverage Depot in Plain eld, Illinois, recently united one of adult consumers’ favorite drink mixes: “Captain and Coke.” Near the store entrance, Binny’s merchandised 1.75 liter bottles of Diageo’s Captain Morgan in and on case stacks surrounding a Coca-Cola-branded rack stocking individual mini-cans from its agship brand, Diet Coke, Coke Zero and Sprite.

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Technology Innovation

P2P Toolkit

A roundup of technology-driven tools that drive consumer understanding, engagement and conversion on every step of the path to purchase.

It’s been well over a decade since I wrote about the Visual Attention Service (VAS), 3M’s almost magical-sounding software that simulates how people perceive ads, enabling designers to ensure that viewers notice the most important information rst and foremost. So, I was intrigued by a Business Insider article on a relatively new (since 2019) New York startup called Marpipe, “the world’s rst independent MarTech platform that automates the creative testing process for brands & agencies.” Basically, Marpipe enables creatives to automatically test hundreds of variations of an ad by tweaking the copy and images, and then launching controlled multivariate tests on platforms such as Facebook and Instagram.

According to the founder, Marpipe was originally built to solve problems within his own agency, but after showing it to companies like Adobe, he was able to raise enough money to deliver it to clients as a freemium platform. Marpipe also takes pains to di erentiate itself from Dynamic Creative Optimization (DCO), a similar programmatic advertising capability, noting that DCO is used for creative scaling while multivariate testing with Marpipe is for creative testing. In early August, Boston-based Reebok began rolling out “Courting Greatness,” a campaign focused on creating playable basketball spaces where they may not exist. The campaign employs a digital tool that utilizes augmented reality (AR) to help players map out court features on walls and fences in, for example, parking lots and alleyways. Using camera and measurement features already embedded in most mobile phones, the “Courting Greatness” AR tool enables users to map out (at least roughly) the dimensions of a court. Users stand 10 to 20 feet away from a surface, point the phone and line up where it meets the street. Then using chalk or tape, they can mark the boundaries of the court, including the free-throw line, 10-foot hoop and 3-point line.

Bill Schober is Editor Emeritus of Path to Purchase IQ. He’s been associated with the Institute since 1994, covering all aspects of consumer marketing with a special emphasis on the shopping experience. He welcomes any questions, comments, requests or pitches about P2P Toolkit, and can be reached at bschober@ensembleiq.com.

In late-September,

Redwood City, California-based Firework, a short-form video platform, announced a partnership with Albertsons Cos. that will make it the rst U.S. grocer to utilize its platform. Firework, which has raised more than $100 million in venture capital, claims that this “shoppertainment” platform already powers more than 600 DTC brands, retailers and media publishers worldwide. In the rst phase of a three-step rollout, Albertsons will deploy short video content and cooking experiences on its various banners, and then expand o erings and experiences in 2022. Firework clients can create, host and curate TikTok-like experiences designed to promote product discovery and swipeable, shoppable interactivity. The idea is to engage and monetize a community around these short-form videos yet also maintain autonomy and control over it.

Over the summer, Austin, Texas-based Oveit launched a live-stream shopping solution, Streams.Live, in the U.S. The Streams.Live tool, which can be con gured into any seller’s website, operates like this: Shoppers watch as a retailer or a spokesperson gives a live, interactive, online presentation of their products. Shoppers can ask questions, share thoughts with other users and, at the moment of choice, purchase with a click. Oveit claims that shoppers spend three times more time watching live content than pre-recorded video. The Streams.Live platform incorporates AI including language and mood analysis. Using this data, a retailer can obtain insights that enable them to better calibrate future sessions.

Shopping for your pet is becoming social, according to the developers of Puppy, a mobile app-based marketplace for use with Shopify sellers. It works like this: Shopify pet product merchants, once they’re vetted by Puppy’s developers, should list each of their products with a video, and o er a “group buy” discount option. Shoppers who use the app will then swipe through products, indicating what they like and what they dislike (a little like Tinder) while deciding what to buy. When a shopper likes an item with other shoppers, they’re then grouped together to buy it at the discount price. Puppy’s developers claim that the group discounts can range from 10% to 65%.

In late September, Amazon expanded its Halo membership program, introducing Halo View (a Halo armband with a screen); Halo Fitness, a service with hundreds of workouts with real-time individual performance metrics; and Halo Nutrition, recipes and tools for personalized meal planning designed to reshape the user’s eating habits. Halo Nutrition, which will roll out in early 2022, lets users browse a library of more than 500 recipes from partners including WW (formerly Weight Watchers), Lifesum and Whole Foods Market. Users can customize their choices to account for allergies and preferences, build a tailored meal plan, or select from one of seven curated menus tailored to the member’s personal preferences: classic, keto, Mediterranean, Nordic, paleo, vegan and vegetarian. They can then add the ingredients and groceries required to an existing Alexa shopping list, e ectively enabling Amazon to consolidate all their grocery needs in one shopping space.

One of the few bits of nancial wisdom my father gave me was, “Never buy groceries on credit.” Still seems like sound advice, but a new app from San Diego-based Zebit, a “Buy Now, Pay Later” (BNPL) e-commerce platform, is turning that notion on its head. Zebit’s business model is to serve consumers with credit scores so low they can’t access traditional methods of payment nancing — and it claims there are 120 million of them out there. Zebit is said to be the only e-commerce company that allows purchasers to make a 25% down payment on purchases across 100,000 products and nance the remaining amount over six months. This online merchant platform runs on an inventory-light model, acting as a distributor for 80 di erent drop-ship partners who pack and ship products on-demand for sales made through the Zebit platform.

People still queue up outdoors and overnight in long lines to buy everything from Krispy Kreme to Air Jordans. While it won’t help with donuts, a new app has been released for us less-rugged shoppers who’d rather track down di cult-to-obtain merchandise and limited-release items through e-commerce websites. Cardinal iOS — a $19.99 app (and at that price, I didn’t test drive it) — claims to help shoppers “secure every drop” by enabling quick checkout on certain websites (and also boasts that it outpaces the other auto ll extensions and automation software that’s on the market). The user saves all necessary information in the app in advance and, when it’s time, it lls in the checkout page at “lightning-fast” speed. Cardinal is said to support all Shopify stores, Target, Dick’s Sporting Goods, Finish Line, Sneakers.com, Funko and Squarespace, although the developers stress that they do not work directly with any of the mentioned brands or retailers.

P2P Toolkit

SPOTLIGHT: Retail Execution

In July, Braintree, Massachusetts-based Form, a eld-execution platform, announced its acquisition of ShelfWise, a retail-shelf image-recognition platform. “ShelfWise by Form” will function as an integrated task-management and image-recognition platform to make in-store data collection faster and more reliable. Enabling reps to automatically capture images of products on mobile eliminates manual data collection and the compilation of lengthy reports on spreadsheets after store visits. An algorithm analyzes data at the brand, SKU and UPC levels, including facings, out-of-stocks, shelf share, and pricing and positioning. The company claims its technology can audit more display types (shelves, displays, cold boxes, drink coolers and menus) than its competitors.

Chalk up another win for our future robot overlords (just kidding): In late-August, St. Louis-based

Schnuck Markets

announced that it is the planet’s rst grocer to utilize AI-powered inventory management technology at scale. The culmination of a multi-year, full-scale rollout has brought Tally robots from Simbe Robotics to all 111 Schnucks locations across the U.S. Schnucks rst piloted the robots in July 2017. They traverse store aisles up to three times per day and capture on-shelf data, including inventory position, price accuracy and promotional execution. They are said to detect 14 times more addressable out-ofstocks than manual scans.

This past spring, Nicholasville, Kentucky-based

Badger Technologies began conducting retail tests of its “UV Disinfect Robot,” an autonomous device designed to combat COVID-19 and other high-risk pathogens commonly found in grocery and other retail environments. Early testing of the robot, which uses UV-C technology, indicates that it achieves 99% inactivation of coronaviruses, E.coli, salmonella enterica and in uenza A. It can decontaminate 40,000 square feet in about two hours. Badger Technologies, a product division of Jabil, also o ers Retail inSight, a shelf-scanning robot that addresses out-ofstock, planogram compliance and price integrity issues.

Eventually drones will be buzzing above us everywhere, both inside and out. That day may be even sooner than imagined in warehouse retail, according to FlytBase, a California-based company that manages “inventory drones” in Very Narrow Aisles (VNAs). Everyone wants to max out warehouse space, so FlytWare now has QR- and barcode-scanning drones hovering day and night in VNAs as narrow as 6-feet wide and up racks as tall as 40-feet high. That’s where manual, and even most automated, inventory checking becomes impractical.

Over the summer, San Francisco-based RobotLAB launched a cost-e ective, AI-powered robotics package for small and medium businesses, enabling them to automate repetitive customer-service tasks, such as providing product descriptions and recommendations, o ering directions or delivering an automated receptionist service. RobotLAB’s package is integrated into the Pepper Robot made by SoftBank Robotics. Standing 4-feet tall, Pepper can perceive an environment and enter into conversation when it sees a person. A touchscreen displays content to highlight messages and support speech.

StoreSpotlight

Foxtrot

BY JACQUELINE BARBA

Immediately upon entering the brightly lit store, shoppers view the cafe counter, which is positioned in the center of the store and off ers locally brewed coff ee, tea and libations, as well as food such as avocado toast and breakfast tacos. Foxtrot also off ers a seasonal menu, crafted by an executive chef, designed with freshness and speed in mind, according to the company.

Foxtrot — not the dance, but the rapidly growing, Chicagobased grocery/convenience store chain and e-commerce marketplace — has emerged as a retail disrupter. Still relatively unknown nationwide, Foxtrot currently operates about a dozen physical stores primarily located in its hometown, plus newer locations in Dallas and Washington, D.C. It plans to add 50 more stores in New York, Boston, Miami, Los Angeles, Chicago, Houston and Austin, Texas, over the next two years.

The urban small-format retailer weaves together the best of digital and in-store to create a unique omnichannel experience for shoppers. Signage throughout the stores promotes its proprietary mobile app and digital off erings. Plus, the retailer off ers nationwide shipping of select items via one of the company’s latest ventures: Foxtrot Anywhere. The service is framed as curated gift boxes with a mix of its top-selling products as well as items that fi t certain themes, such as a “Coff ee Trio” and a “New School Pantry” box.

Another key way Foxtrot diff erentiates itself is through its on-trend off erings that appeal to consumers’ (especially younger consumers’) evolving demands, including: • Products sourced from local makers and small businesses. • Frequently added trending products and categories like CBD-infused products. • Ready-to-eat and -drink off erings like charcuterie, personalized gifting and custom wrapping options. • On-demand delivery for locals.

Path to Purchase IQ recently visited Foxtrot Market in Chicago’s Old Town neighborhood, located kitty-corner from iconic comedy club Second City and the Old Town Ale House, an infamous late-night bar. At 3,650 square feet (a typical amount for Foxtrot stores), the store feels digestible and doubles as a cafe, seating 50 indoors and another 34 outside, scattered among two patios.

StoreSpotlight

Foxtrot stocks beer and more than 200 wine bottles, both chilled and room temperature. Coolers (with “Fine Wines” illuminated signage) stock white wines, rose and champagne, while a gondola rack and wall shelf merchandise an assortment of red wines. Foxtrot’s products for gifting occupy a key area in the store. A wall in the back merchandises a slew of trendy and locally made products, including Foxtrot merchandise and curated gift boxes, water bottles and mugs, candles, and various CBD and CBD-infused products from indie brands Not Pot, Ripple by Stillwater Brands and Hugs CBD. The store includes a grab-and-go food and beverage section, featuring illuminated signage and shelf lighting. The section stocks everything from ice cream and frozen pizzas to fresh salads, hummus and charcuterie boxes. Individual canned beverages, including Recess’ CBD-infused wellness drink, are merchandised in the section. The company has evolved its culinary program, which inspires its grab-and-go food items that are a core of the store. (It recently hired Tae Strain as corporate executive chef.)

Foxtrot sells an assortment of privatelabel products (an area of growth) as it aims to disrupt the current idea of c-store fast food with an eye on cafe foods and premium packaged goods in playful, bright packaging. In the Old Town store, the retailer uses an endcap in the perishable snack section to merchandise new gummy packages from Foxtrot. This section is also where shoppers can find some national and mass brands merchandised. Foxtrot’s delivery services are a key part of its operations and story. The retailer offers local on-demand delivery in as little as 30 to 60 minutes, and shipping nationwide on select products. Foxtrot actually launched as a digital wine and beer delivery service in Chicago in 2014 and expanded to brick-and-mortar after its founders said its customers were also hungry for food and coffee. Because of its roots, the retailer’s sales are still split, with about half coming from online sales. In addition to its own couriers, Foxtrot is available via DoorDash and other third-party services.

A notable part of the Old Town Foxtrot is a walkup to-go window, open on weekends. The limited menu comprises coffee and a small selection of breakfast tacos for the morning, as well as ice cream and Recess’ CBD beverage cans. Some Foxtrot stores call attention to the relatively large ice cream assortment with an illuminated “Ice Cream” sign above freezers. The retailer stocks mostly emerging and indie brands, including Columbus, Ohio-based Jeni’s. In addition, Foxtrot teamed with Los Angeles-based CoolHaus for exclusive dual-branded Foxtrot and CoolHaus ice cream sandwiches and novelty bars. The retailer even sells bundles of its own brand ice cream treats alongside a bottle of wine (private brand wine under the Kid Sister label).