Sathish Varughese | Student ID 215167756
It was an inspiration watching the Channel 7 program “Recipe to Riches”, giving everyday Australians a chance to make it big in the food consumer market through their everyday cooking recipe.
This was done by getting a big retail Supermarket like Woolworths to taste, brand, market and sell their product on their shelves under the Woolworths Select brand.
For Woolies Recipe to Riches was a unique step to marketing while researching. Similarly Coles uses brand ambassador Curtis Stone to highlight Coles Fresh market, again a result of researching on how to gain consumer confidence and shop at their stores more.
How do they all come up to the solution of what they need to for their business and capturing the market share from their competitors and achieving competitive advantage.
One common market research trend that I have seen and also participated in is regular survey that these supermarket giants conduct collecting data on their products, what consumers use, how much do they spend and how often do they visit and questions on what would take consumers to shop at their stores and many more questions.
The data is analysed and changes made to reflect consumer demand.
In 2013, Woolworths spent $20 million acquiring a 50% stake in Quantium, an analytics firm which helps businesses leverage collected data to develop marketing strategies: “from data to dividend”.
The survey also provides insights into the products their customer would like to see on the shelves and how they price their products.
A popular customer satisfaction research and rating business “Canstar Blue’s” marketing research methodology compares supermarket giants ratings for customers to access.
Their methodology involves, gauging perceptions of consumers who have recently purchased and/or used the specific products and services and majorly data driven
They use market research agency Colmar Brunton and I-view to provide them the information on which they analyse the supermarket ratings. They survey 800-1000 targeted consumers.
Research is about testing to try something new, so if likes of Curtis Stone and Jamie Oliver does not work in selling their brands, and only 2 per cent has chosen because of TV advertising, you may be surprised to hear that about 72 per cent of Australians said they always shopped at the same store, but loyalty was usually a matter of convenience. About one-in-three said they had stayed with their supermarket because the place they shopped was close to their home.
Most of the supermarket giants nowadays offer their own private labels compared to brand names on the shelves. Canstar Blues have found that the number of Australians tend to buy private label groceries over big name brands and their demand has increased one-fifth in the space jumping from 44% to 65
A business is formed to address consumer demands, but nothing like providing what they need, how they need it and at what price they would buy
Using marketing research tools, pre-selling and post selling helps business to identify key elements to their business success, such as target customers, products in demand, pricing factors, strategic location and a lot more.
So next time when you see a survey email don’t spam it, use it give your feedback so they can improve on your needs.