Mmm, mmm, Soup Shopping
Last week, The Wall Street Journal ran “The Emotional Quotient of Soup Shopping,” an interesting behind-the-scenes piece on Campbell’s redesigned soup labels. Campbell, in an effort to connect with customers (and boost sales), uses new neuromarketing techniques to measure physiological reactions to their marketing. A few years back, the company uncovered the idea that customers’ reported reactions to ads bore little relationship to actual soup sales. Campbell is hoping that biometric tools measuring factors like perspiration and heart rate, combined with deep interviews, will more accurately measure the effectiveness of the company’s package design and advertising. Based on this new research, Campbell will hold onto the iconic red and white label for its three biggest sellers, but other varieties will feature “larger, more vibrant pictures of soup.” We’re a little skeptical about the benefits of neuromarketing research alone, since it measures emotional intensity without content or context. However, Campbell’s is onto something here. By combining biometric data with carefully crafted deep in-store interviews and store observations, they have been able to zero in on how customers really perceive their cans. As Campbell and other companies are increasingly realizing, there is no substitute for in-store research and moment of truth observation, questioning, and analysis. After all, when asked why they eat more soup or not, people tend to “say they don't think of it,” according to Doug Conant, Campbell's chief executive. Other methods, like focus groups and surveys can also provide valuable information, but they often need to rely on the shoppers’ unreliable short-term memory or their projection of future behavior and intent. When companies rely too heavily on focus groups and survey data and neglect to closely observe how shoppers interact with their designs in the store, like Tropicana did with their short-lived redesign, they run the risk of damaging their brand and alienating ...
Sara Lee’s Bread is Making Less Dough
Somebody doesn’t like Sara Lee. It almost seems unfair. After finally recovering from the low carb diet craze of the 90s, the company isfeeling the squeeze from private label, especially in the bread aisle. Thanks to the recession, customers are shunning name brand loaves (and cakes) in favor of cheaper private label starches in order to stretch their grocery budget. Sara Lee must also compete with price-slashing name brand rivals. Not to pick on Sara Lee – other packaged-food companies are gettingpinched – but you have to wonder whether Sara Lee fully understands the customer motivations and behaviors played out at the shelf that might be causing sales to plunge. The company knows profits are down, but competitors Kraft and Kellogg are turning in respectable numbers as shoppers trade takeout for meals at home. Does Sara Lee know why buyers are reaching for the doughy store brand whole wheatinstead of Sara Lee’s innovative Soft & Smooth loaf? Does the company understand on a volumetric basis those who have come to the store fully intending to buy the brand, but then bail in the swirl of the last three feet? And why they bail? Is it price, promotion, packaging or an intriguing blend of yes to all that? Or maybe is it some other lure or allure? Sales are an important, obvious, but crude measure of how shoppers interact with brands. If companies hope to stop the slide toward private label, they need to be where the in-the-moment calculations of the shopper occur. They need to take hold of the in-aisle thinking of shoppers who buy the brand, don’t buy it, and most tellingly, the ones who intended to do so and then decided in favor of another.
