Category invariably trade from 2013. Is the leader in terms of media spending in Poland. Retail chains also this year will be determined by the growth rate of advertising. Especially that they appear in front of the new challenges that further strengthen the business relevance of mass communication with customers – own, but above all competition.
Advertising expenditure in the commercial sector in Poland reached last year a record 1 billion 310 million net invested in the media, noting the dynamics of year-on-year at 21 percent. In the period from January to March, retail sector allocated for advertising 280.9 million zł, an increase of 8.3 million zł more than in the same period of the previous year (growth rate of 3.0 per cent.). Despite apparent in the first months of the year, slowdown in advertising expenditure in the media will continue to be driven Business spending in our industry.
Even “tradition” is not dead
For the last period of growth are two key factors: internal consumption (also driven by the Program 500+ and falling unemployment) and the organic growth of modern trade networks, primarily at the expense of weakening the position of traditional trade, which was relatively easy and continues to take caloric volume for stronger and offensive brands the likes of Lidl, Biedronka or Frogs. It seems, however, that existing sources of dynamic category trade may decline in importance. While retail sales in March recorded an increase of almost 10 percent. year-on-year, sales of food products, beverages and tobacco products have fallen by 0.7 percent. In turn, further territorial expansion will encounter resistance in the form of a high saturation of the domestic market wielkopowierzchniowymi institutions (according to the portal Big Data in a radius of 10 km from the nearest Ladybugs lives already 35 million Poles. In the case of Lidl – 26 million). The challenge may also be characteristic of the Polish population dispersal, which lives in 913 cities. In countries with a similar specificity (Italy, Spain) the share of traditional trade that best responds to local demand in a number of smaller and dispersed urban centers, remains similar to our level, so there is a rationale that “tradition” stop wasting shares as vigorously as it has done so far.
If not yet “online”, so what?
In such a situation of modern trade networks looking for a new “flywheel.” Can it be online sales? Unfortunately, there are indications that yet. Especially in the case of food products, which indigenous customer will continue to buy stationary. The share of Internet sales in the FMCG category indeed growing, but in Poland is only 0.7 percent. Not much better it is indeed our neighbors – eg. In Germany amounts to 1.2 percent. (source: Kantar), which may suggest that the prospects for “spożywka” on the internet are good but it is difficult to expect a revolution.
Growing importance is therefore soliciting customer preferences – both his own, and especially those who shop the competition. So trade is entering a new era, in which counts not only further penetration, but effective recruiting and retaining their current customer base. Base should add, unfair and demanding – the domestic consumer is not tied to a specific brand stores and is accustomed to the fact that changing your preferences depending on current promotions and offers. According to Nielsen data within a month the average Pole is shopping in nearly four different networks. It should not come as a surprise, especially since we are competing stores closer and closer, and the selection is large (by Big Data half Lidl stores located within a radius of 500 meters from the Ladybirds).
This is good news for the same customers, especially the formation of preferences in the highly competitive market should mean not just another stage of “price wars”, but also stronger than ever focus on building a better shopping experience. The first symptoms of change can be seen on many fronts. Chains like Carrefour and Biedronka stores are testing new formats, layouts and interior shelves. All this to answer the biggest blemish on trade, which in recent years assiduously ignored: shopping in stationary stores, regardless of the fact that we are now far closer, it still torment. Queue, the piston, the lack of parking places and not always full availability of products are invariably the most important elements indicated by customers as the things that discourage visits to the facility.
Vinyls, crocsy, drones …
However, the convenience of shopping is not all. Equally important is the choice and range. It is they who are the key, though often unconscious factor in the purchasing decisions of customers. In response, the discount chains for a long time expand the number of products offered in their schools, which has a direct impact on how it looks in their communication media. Change not only the advertising slogans ( “news every day, every day low prices” Ladybugs replaced the previous “every day low prices”), but also promoted its range and scale. Lidl in 2016. Issued 457 TV spots, which showed well over a thousand different products that are currently in promotions. Interestingly, up to 36 percent. of these investments is a media offer nonfood, which admittedly does not generate significant turnover, but it is able to attract stores to the “new” customers, showing them that on the spot waiting for them surprisingly wide range, beyond “spożywka.” Customer “tempted” vinyl or crocsami, always after the way to buy bread and ham, and by the way can convince to this, it is worth to the store come regularly – at least seem to think marketers and, as shown by the results, here are right .
Supermarket with a human face
Although the decision on the choice of the store is a rational decision, and customer loyalty is at least debatable, one can not forget the emotions. Also in the trade they often take precedence over reason. In the case of thickening the struggle for preference, it could not escape the modern trade networks, which for some time massively introduce new platforms to communicate branding, which are supposed to show the brand in a warm, funny and “human” light. While the entire Polish another metamorphosis lived Lidl ( “swap” Doroty Wellman on Daria Ładochę), the other network is not idle. It is worth paying attention to the trends: building “human” is calculated by using personnel (including Frog, Selgros, partly also Castorama and Saturn), highlighting eksperckości universal, albeit quite narrow specializations (Selgros, Intermarche – butchering meat and tender “fresh”) or the highlighting of origin as a guarantee of quality and good prices, dictated by the Emperor himself (Carrefour).
As I have already mentioned about the price – if you forget her? Good news for all sensitive promotions – will remain an important element in the fight for preferences. But not the most important. For marketers increasingly supports the thesis that although the native client calls attention to what and how much is a “smart shopper” is in practice more as such believed and so want to be treated, than behaves. What does it mean? First of all, the price is increasingly being combined with quality. They change so promotions and offers. Absolute innovator in this area is again Lidl, which not only releases the next editions of “Weeks Kitchen of the World”, but also test the effectiveness of writing in a variety of mikrookazje that are marketer justification for another offensive (promotions at the end of the month, offers for students returning on universities, Children’s Day and many others). Practically every day of the year Lidl launches another campaign, which in addition to television, radio and heavily use the internet, the media, which are particularly effective in building knowledge of the current offer.
The fight for customer preferences supermarkets continues, as you can see, the best and expect that what we see is only the beginning of a new stage of development of the trading category.
Sebastian Szade, Director, Strategy and Innovation Starcom
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