Morning Brew - ☕ On targeting

How retailers are evaluating shopper personas.
March 06, 2023

Retail Brew

Flowspace

Let’s start the week off on a sweet and savory note. Baskin-Robbins is introducing Chick’n & Waffles ice cream. Cry foul if you must, but don’t cry fowl: The flavor contains waffles, maple syrup, and something that a press release said has “been expertly crafted to mimic the taste of fried chicken”—but not chicken.

In today’s edition:

—Jeena Sharma, Katishi Maake, Neal Freyman

EVENTS

Up, close, and personal

Jeena Sharma, Retail Brew; Jenny Chang, Joan Creative; and Claire Wyatt, Albertsons Media Collective, on a video call. Retail Brew

A lot has changed for consumers since the pandemic hit. The pandemic, inflation, and fears of a recession have all impacted their shopping habits, which means, ding, ding, ding…another challenge for retailers.

Customers today seek value in the form of more than just a good discount, and they’re not falling for tried and tested retail tactics like sales and promotions anymore—or so we learned during Retail Brew’s latest Checkout event on examining shopper personas.

On the panel were Joan Creative’s senior cultural strategist, Jenny Chang, and Albertsons Media Collective’s senior director of business strategy and marketing science, Claire Wyatt, alongside…well, yours truly ().

But ICYMI, don’t fret; we’ve put together a few highlights—including how to figure out who the right consumer is, and how to keep them coming back for more.

Determining the target

Chang and Wyatt agreed that the first step in retaining customers is being able to target the right ones.

For Chang, who works with brands like Fitbit and eBay, the process starts with collecting and synthesizing information from a variety of sources including interviews, focus groups, surveys, and social media.

“We usually have a version [of the target consumer] from the clients,” she explained. “They’ll say, ‘We want to target 18- to 35-year-olds,’ but then we also look at something called psychographics…What that means is understanding their attitudes, their perspectives, their values, which may or may not be tied to age, race, and gender. So instead of 18- to 35-year-olds, we have people who believe that exercise is the No. 1 priority for a healthy lifestyle. Those people are a lot easier to talk to.”

Wyatt said the process was slightly different for Albertsons’s retail media network, which works with multiple clients including Unilever, Mondelez, and Campbell’s.

Keep reading here.—JS

        

TOGETHER WITH FLOWSPACE

Feelin’ the supply chain pain?

Flowspace

Welp, you’re certainly not alone: The Brew surveyed our community of retail pros to better understand their current challenges, and a whopping 45% cited the supply chain as a topic that’s top of mind.

When asked about the biggest challenges the supply chain poses, 50% said inventory management, 44% said forecasting, and 27% noted excess inventory.

The folks at Flowspace, a platform powering fast, efficient e-commerce fulfillment for omnichannel brands, understand that meeting (or beating!) customer expectations is a competitive advantage nowadays.

That’s why their timely playbook offers the 411 on how merchants can overcome supply chain woes with insights and fulfillment capabilities that enable an excellent customer experience.

Grab your copy.

BRANDS

Ready, set, go

Dog by Dr. Lisa products lined up on a white background. Dog by Dr. Lisa

If you regularly read Retail Brew’s Friend or Faux section in our Friday newsletters, you’ll notice that brands are constantly introducing wacky (interesting?) collaborations and products that you wouldn’t expect (see Croc stilettos or KFC slides).

While it’s fun to point these out, we also wanted to take time to highlight some more brands and companies that, in one way or another, got a fresh start in February. If you have suggestions for new brands to watch in March and beyond, feel free to let us know in our inbox.

Doggone it: Dog by Dr. Lisa is an Australian luxury pet skin care line that recently made its entry into the US, coming on the heels of a momentous year of growth. To date, the company has raised 3.25 million Australian dollars and reported an increased rate of 124% in annual sales.

  • There has been an increased interest and investment in the well-being of pets globally;the pet care supplies market is on track to reach $14.5 billion by 2025.

Legend status: John Legend launched a new skin care line (for humans), Love01, that debuted February 1 with six products: a face-and-body wash, face-and-body moisturizer, an exfoliating scrub, a toning mist, a face-and-body oil, and a shave cream.

  • “Seeing what was out there in the marketplace, understanding what luxury skin care feels like, and then translating that luxury feel to a more affordable price was really exciting,” Legend told Cosmopolitan.

+1: Adidas has unveiled its first new line in 50 years: Adidas Sportswear. The label debuted with the Tiro Suit Collection of tracksuits, the Avryn shoe, the Express Dress, the Express Jersey, and the Coach Jacket. The brand is now available online as well.—KM

        

RETAIL

First classy

How I met your mother GIF How I Met Your Mother/CBS via Giphy

“According to the NYT, [companies are] going all-in on ‘premiumization,’ which is a strategy to entice customers to pay more for what is perceived as a better-quality product or service,” writes Morning Brew’s Neal Freyman:

Premiumization isn’t new. Starbucks famously did it with coffee in the 1990s, and airlines have been dangling a luxurious first-class experience for decades. Premiumization has been especially popular in the consumer goods space. But what’s new is the breadth of companies that are trying to extract more $$$ from their wealthiest customers.

Read the full story here on Morning Brew.

        

TOGETHER WITH YELP

Yelp

You gotta hear these voices. This Women’s History Month is set to be the most empowering yet. And to celebrate, Yelp is hosting its third annual Women in Business Summit on 3/16 that’ll feature talks with women leaders and entrepreneurs about issues facing women-owned businesses. Register now.

THE BRIEF

Calling all retail marketers!

Calling all retail marketers!

Jones Road Beauty Founder and Chief Creative Officer Bobbi Brown joins us at The Brief, a one-day marketing summit, to share her journey and the strategies she used to take over the beauty industry (again)!

We’ve assembled some seriously big marketing brains to reveal their best practices, challenges, and experiences with one audience in mind: YOU.

SWAPPING SKUS

Today’s top retail reads.

Hots-pitality: After being walloped during the pandemic, restaurants, bars, and hotels are hiring at the fastest pace in today’s economy. (the Wall Street Journal)

Bigger fish to air fry: How brands including Nestlé and Tyson Foods are responding to the air-fryer boom by both developing products for the device and providing air-fryer cooking instructions. (CNBC)

Pulling out mall the stops: Indoor snow parks. Roller coasters. Fireworks. How malls in the Middle East embraced theme-park style entertainment. (Forbes)

Inquiring minds: Want to know more about the worlds of science, history, travel, and tech? Check out Curiosity Stream and browse the deepest collection of the best documentaries ever. Start watching with 25% off.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Costco CFO Richard Galanti said that, regarding raising membership fees, “it’s a question of when, not if.”
  • Balenciaga mounted its first fashion show since the controversy over its portrayal of children in ads.
  • Tiffany announced BTS star Jimin will be a brand ambassador.
  • L.L. Bean was named in a class-action lawsuit because some of its boots advertised as waterproof allegedly leak through their zippers and eyelets.
  • Funko will dispose of Funko Pop! toys valued at $30 million because of excess inventory and waning demand.
  • Applebee’s expects to have 10–20 fewer restaurants operating at the close of 2023, worse than 2022, when its total number of restaurants fell by nine.

HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

A Pennsylvania Chick-fil-A is requiring anyone younger than 16 to be “accompanied by an adult,” according to Insider. In a February 22 Facebook post, the restaurant explained some minors had been loud, disrespected employees, and vandalized restrooms.

You tell us: Should restaurants be allowed to ban unchaperoned minors under 16 based on them being unruly? Cast your vote here.

Circling back: Last week, we asked about a new draft rule from the FDA that said oat and other plant-based milks can keep labeling themselves as “milk,” despite the dairy industry’s position that they should be called “beverages.” And among our readers…it’s Big Dairy for the win, with 52.8% voting that only milk that comes from udders should be called milk, 44.7% voting that plant-based milk manufacturers should be allowed to go by “milk,” and 2.5% didn’t know or weren’t sure.

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Written by Jeena Sharma, Katishi Maake, and Neal Freyman

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