Grocery Store Marketing: Secrets to Maximize Profits and Engagement

How will grocery store marketing change this year? Our State of Media Sales survey indicates that 8% of media sales managers are optimistic about increased revenue from food and beverages retailers. Another 33% are slightly optimistic. How can you sell more media to grocers?

What challenges are grocery stores facing?

With inflation continuing to impact food shoppers, supermarkets face challenges. Higher food costs are driving more consumers to cook at home which sounds like an opportunity for grocers. But even in the grocery aisles, consumers are being cautious.

The most recent Supermarket News retailer survey indicates that operators believe competition is their biggest issue when it comes to holding onto customers.  Around 86% hold this belief.

Your local grocery accounts are not just battling other supermarkets. They know consumers are buying food and related items at Walmart and dollar stores. The new consumer behavior is eating into grocery store profits.

Around 55% of food retailers identify direct-​to-​consumer online sellers as another competitive threat. And 28% also point to online retailers as a source of competition. The online channel is growing. Around 45% of food stores generate about 6% of revenue from online orders. 

They’ll need to step up their game to maintain market share. Because as that channel shrinks, profits are squeezed.

How to optimize grocery store marketing

To boost revenue, supermarkets intend to offer consumers more of what they are looking for. And that means focusing on aspects other than price.

Targeting shoppers who want more fresh produce

Around 64% of supermarkets plan to expand the range of fresh fruit/​vegetable options they sell. This expansion should drive more business from grocery shoppers. AudienceSCAN reports that 25% are willing to pay more for locally sourced produce.

Targeting prepared foods shoppers

Your supermarket accounts know that consumers are seeking more prepared foods. Consumers may have decided that frequent restaurant meals are beyond their reach for now. But that doesn’t mean they suddenly have more time and interest in cooking at home.

Around 28% of consumers visit the supermarket deli for prepared foods, replacing restaurant meals, according to the Food Industry Association.

And AudienceSCAN data shows that up to 16% of consumers opt for prepared supermarket food at least twice a week. Let your accounts know that 58% of these consumers have responded to a streaming TV ad in the past 30 days.

To meet the growing consumer interest, 66% of operators will add “more grab-​and-​go or prepackaged items” to their deli case lineup.

Targeting value shoppers

The Supermarket News survey finds that operators are ready to emphasize value. Increasing shelf space for private label products is a go-​to strategy for grocery stores during times of economic stress. This year, 46% of supermarkets will use this strategy. 

They will likely capture the business of grocery shoppers. Around 21% of U.S. adults will purchase store brands (private label) this year. And in the past year, 64% of store brand shoppers have taken action after seeing a TV ad.

How to connect with specialty food audiences

Supermarkets face other disruptions to their models. These disruptions will lead them to adjust their product mix and marketing strategies. 7% of food retailers report a significant impact from GLP‑1 drugs. AudienceSCAN data shows that at least 4.5% of U.S. adults pay for these medications.

Consumers on these medications often change what they eat. Instead of buying potato chips and snack cakes, these consumers turn to high-​protein foods and fresh fruit and vegetables.

Let your accounts know that 45% of these consumers have responded to a social network ad in the past 30 days. In addition, 66% signal their intent to eat healthier and lose weight in the next year.

Selling more to existing customers

Grocery store accounts can improve their financial results by selling more to existing customers. And they can also attract new customers.

To generate revenue and interest, 75% of grocers plan to boost their digital marketing offers. And around 54% will improve discounting.

Another top grocery store marketing strategy will be using more in-​store promotions. You can expect about 68% of your grocery accounts to do that this year.

The emphasis on in-​store promotions could prove lucrative. AudienceSCAN reports that around 44% of regular supermarket shoppers have been influenced by smartphone apps or text messages in the past 30 days. They are also 17% more likely than other adults to agree that mobile app advertising is useful to them.

Advertising changes in the supermarket

Some industry analysts report that printed circulars are making a comeback. Grocers continue to mail out these circulars. In other cases, they may only be available in store. Another strategy is to offer special editions to a specific set of shoppers.

Remind your accounts that they still need to advertise on TV, radio and out-​of-​home to generate consumer awareness, especially when a holiday approaches. Then they can ramp up their in-​store advertising based on a customer’s past shopping patterns.

Experts note that “in-​store marketing is three times more likely than digital ads to influence new product trial.” Grocers are using in-​store video to promote their own brands and increase revenue.

Use these data points as a way to offer value to your grocery accounts. Changing the grocery store marketing strategy in response to consumer shifts is critical this year.

Image by Rulo Davila on Pexels.