Promoting that new food product: tips for success
New food products can use mobile couponing to attract young consumers while buy one get one promotions get them coming back for more.
As small food companies introduce new products into the marketplace, they are faced with decisions on how to promote the product so it will grab the attention of consumers.
According to the Mintel Grocery Pricing and Promotion report released in June 2013, nearly all consumers are “price sensitive” and the majority of shoppers are “promotion sensitive”.
Nearly everyone is familiar with the “buy one, get one free” (BOGO) deal. Mintel reports that a large number of consumers who buy a product for the first time on a BOGO deal will continue buying the product after the sale if they really like it. For those food companies just starting and selling at the farmers markets, perhaps this strategy would work as well. Mintel suggests that this strategy will pay off for manufacturers if they can withstand the initial loss of revenue during the BOGO promotion.
In addition, the report says that half of parents switch brands based on specials. Therefore, Mintel encourages promotion to focus on family items, emotional marketing and digital promotions in order to change the behavior of parents.
To attract young consumers, Mintel suggests using mobile coupons since half of respondent’s aged 18-24 reported that they were more likely to shop at a store that offered mobile coupons.
Finally, the report claims that three out of four women like the thrill of getting a bargain. Mintel suggests that grocers or companies who provide women with the regular thrill of a big savings might cause them to become loyal shoppers.
The MSU Product Center, in partnership with Michigan State University Extension, provides product development, Mintel market analysis and marketing assistance to help Michigan entrepreneurs commercialize high-value, consumer–responsive food products. For more information, visit the MSU Product Center website or call 517-432-8750.