Many CPG food brands are continuing to see record sales growth. However, there are many questions that accompany this growth…How long will this growth continue? When will this spike start trending down? Should we increase capacity? How can we reach and retain the new households that have purchased our brand—some for the first time? Will we see sustained growth? If so, what will it be…2%, 5%, 10% or more?
All great questions, with no definitive or uniform category answers.
What we do know is that in-home food consumption is at an all-time high. And undoubtedly, consumers are adding or substituting additional products to account for this increased consumption. More meals and more snacking are happening in most every household across the country.
It doesn’t matter why they are purchasing your brand. The fact is that they are. This is an opportunity for growth. Not just short-term spikes in sales, but true, long-term brand growth. You have the opportunity to retain them as a regular purchaser of your brand—and, it may be a once in a lifetime opportunity.
According to IRI, consumer concern over COVID-19 is still high. And, concerns over economic recovery are rising. Therefore, increased grocery sales are likely to remain highly elevated for the foreseeable future.
Here are some approaches to consider for reaching these new consumers:
- Implement a DMA Approach. Utilize your purchase data to identify the DMA’s with the highest potential, based on the added momentum that your brand is experiencing. Define who these buyers are and utilize a media mix to reach as many buyers as possible.
- Connect your messaging around why consumers are currently purchasing more food: family mealtime at home, kids home from school, need more variety in the meal plan, quick, easy meal solutions, etc.
- Identify key retailers, and geo-target consumers within 3-5 miles around retailers.
- Activate a high-value couponing strategy—either IRC or in-pack, to incentivize repeat purchase.
These are just some ideas on how you can activate these new buyers.
At the end of the day, as food and beverage marketers, our job hasn’t changed. We are all in the business of getting our products into the homes of as many consumers as possible—and growing our brands. So, now is not a time to simply stay the course and hope for the best. We have to fuel the momentum and shift strategy to long-term retention.
Are there challenges in front of us? Of course, but it’s how we respond and the actions that we take that will define our brands in the years to come.