Hershey Executes ‘Massive’ Halloween Assortment Change Driven By Consumer Insights
This price sensitivity is expected to continue throughout the fourth-quarter holiday season, with value serving as the No. 1 consideration for consumers, according to Elizabeth Lafontaine, chief retail analyst at EnsembleIQ. As a result, retailers will shift their promotional strategies from focusing on price points to instead “percentage-off” methods to lure spending.
“Retailers are not happy with the prices they are able to give consumers right now,” said Lafontaine in a webinar with Store Brands, a CGT sister publication. “They don’t feel like [the prices] are compelling enough. They are trying to train the consumer to think about percentage off versus the amazing doorbuster prices they would get in the past.”
Consumer Insights
Hershey frequently taps into consumer insights to inform its manufacturing decisions. Last year, the company experimented with using both quantitative and qualitative insights to adjust its price pack architecture, another lever to pull in wooing cautious consumers.
These tactics have not only reduced churn but also bolstered retail relationships when it communicates these findings, the company told CGT last year.
“We find starting with consumer needs leads to more successful launches — product or packaging,” said Lynn Hemans, VP of consumer intelligence and analytics, at the time.