How Chips Ahoy Uses Consumer Analytics to Drive Product Innovation
For Chips Ahoy’s innovation strategy, staying ahead of changing consumer behavior is critical. The company has been leaning on data and analytics to keep up with varied and shifting preferences, using the insights to develop new products that resonate.
Sabrina Sarant, senior director of Chips Ahoy at Mondelez International, recently spoke with Emily Crowe, multimedia editor for CGT’s sister brand Progressive Grocer, to shed light on this strategy.
The company partners with agencies and tech providers to stay attuned to consumer behavior, ensuring it reaches shoppers where they are and invests in the right channels to maximize return.
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“We have great insights and analytics partners that help us stay in touch with our consumers," said Sarant. "What's important to [consumers], you know, whether it's value and affordability, which is really important these days; indulgence or convenience; and on-the-go snacking or better-for-you snacking.”
The company combines these efforts with data from NielsenIQ or other consumer trend sources to identify potential areas for growth. “So if we're targeting a Gen Z audience, we're where they are at, and maybe less on linear TV where they're not.”
From there, the company develops and tests various concepts to see which will drive the highest purchase intent and drive incremental sales.
“So we'll look at a combination of those to decide which ones we move forward with. And then we'll partner with our research and development team to turn those concepts into cookies and develop the recipes.”
The company then moves into the testing phase with consumers, which can be an iterative process to ensure it's a solid concept and market fit.
An Insights-Driven Innovation Pipeline
As an example, Chips Ahoy found that 20% of households were buying gluten-free cookies and crackers as the segment grew, but there was no mainstream option available on the market.
“So, we decided to launch our gluten-free version of our original that delivers this delicious taste that those consumers want. We're giving them a chance to enjoy cookies that they previously couldn't have,” said Sarant of the May launch. “And that one's actually seen a ton of success. It has a 48% repeat rate with buyers, so they're coming back.”
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Insights have also enabled the company to deliver value through price pack architecture. Chips Ahoy recently introduced a new pack type called "Fresh Stacks" for its chewy cookies, priced under three dollars. The offering is helping drive household penetration by re-engaging lapsed consumers.
The brand’s data-driven approach has also supported expansion into new categories, including cakes and pastries.
"We actually just launched our Chips Ahoy Baked Bites platform with a Blondie flavor this past January,' she said. It’s a soft-baked, square treat with a texture inspired by a brownie — except it’s a blondie — and comes in a portable portion pack... It’s really tapping into a new occasion and bringing in some new households."
Editor’s Note: This interview is part of the Top Women in Grocery podcast series from Progressive Grocer. You can find the full episode here.
