B2B | Shopper Connection | August/September 2010
A more shop-able tomato section drives category growth
The canned tomatoes category builds the most opportunities when it is highly shop-able. That's because 80% of canned tomatoes shoppers approach the shelf knowing precisely what they need. If their recipe is for a sauce or a salsa, that determines the specific product form they will buy.
After shopping by form — diced, sauce, paste, etc, they then shop by brand, flavor, package size, and other traits such as low sodium. The traditional brand blocking approach to this category doesn't serve today's focused, time-pressed, health-seeking consumers.
By contrast, the Hunt's SPACE (Simplifying Product Assortment and Creating Efficiencies) program—developed with Cannondale Associates—is a breath of fresh air, fresh thinking and objectivity. SPACE unites ConAgra Foods' exclusive consumer insights with sophisticated shelving principles to optimize assortment and create a shopper focused category flow, in order to meet the demands of local shoppers and speed their purchase activity.
Assortment (the right item mix for a particular market) and flow (the right presentation to suit the consumer decision tree) are keys to success. It's important to answer questions such as: Which are the right brands to have in each product segment? Which are the right regional brands to have alongside Hunt's and the retailer's private label by segment? Are there SKUs that are highly regional, incremental and important to local shoppers as well?
This approach builds categories to their ultimate potential in distinct markets. When re-evaluating the category or cutting in new items, don't simply delete bottom performers. Rather, start fresh to optimize the set in each market and utilize data from multiple sources to keep it current. Data sources include: panel data; store-level audits of profits, turns, out-of-stocks, and frequent shopper card data. One sample insight: When reducing category assortment, maintain the same shelf linear footage to maintain the perception of variety.
Better shelf layout and merchandising impresses experienced category shoppers (who know what they want), educates new users (seeking healthy value meals in the recession), and drives category growth. Two tips: Bookend the shelf set with popular diced, sauce and paste product forms, and locate the smaller segments in the middle. Promote multiple forms at a time for different product usages to create higher sales lift.
To improve category shop-ability and product find-ability and to stimulate cross-category purchases, simplify the shopping experience with recipe cards placed into navigational blades that are highly visible, guides shoppers with shelf strips, header cards and other devices.
Better nutrition for health-minded consumers
Consumers are hot on the tomato trail in their quest for health. Tomatoes are America's most-eaten non-starchy vegetable (after potatoes), and most of that volume is canned, notes Mark Andon, PhD, vice president-nutrition at ConAgra Foods.
Hunt's canned tomatoes: a total-store sales engine
Few categories match canned tomatoes for cuisine versatility. A central ingredient in planned home meals, and a major appeal to big basket buyers ($83.75 on average...
Three new heart-healthy, no-salt-added varieties
Consumers will get the best of both worlds when they buy their preferred Hunt's brand of canned tomatoes in new no-salt-added varieties: the great fresh taste they enjoy...
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Hunt's Crash Kitchen Tour
Hunt's is continuing to crash into America's kitchens and supermarkets with Chef George Duran to show consumers that switching to Hunt's will enhance the quality and freshness of the meals they serve their families. Duran's mission is to "personally show everyone the difference between other canned tomatoes and Hunt's tomatoes" through a new integrated, multi-media campaign beginning in September.
Tomatoes are a versatile ingredient; driving basket ring and meal solution opportunities.
- Canned tomatoes consumers shop the entire store1
- Average basket ring for:2
- Pasta Sauce - $91.12
- Canned Tomatoes - $83.75
1 IRI S3 Panel Data — Total US FDMx — 52 Weeks End 12/27/2009
2 NPD Group 2 Years Ending May 2008; IRI FDMx, Current Weeks Ending 8/02/2009
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INITIATIVE 1: Tighten Up Product Assortment
The Value Improvement Program now under way at Stop & Shop and Giant-Landover stores in the U.S. involves a sophisticated and multidisciplinary approach to pricing, quality perception, costs and category management, but its effect can be summed up in a simple phrase: Less is more.
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