CPGmatters: Frito-Lay Gains Competitive Edge Using Ethnographic Research
Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
To better understand the mindset of consumers in the store as well their thinking beforehand and afterwards, Frito-Lay relies on deep insights gathered by cultural anthropologists using ethnographic research.
Anthropology is the study of people, according to Donna Romeo, group manager, consumer strategy & insights, shopper marketing at Frito-Lay.
"It is holistic, which means that everything is important. Also, it's about context," she said. "People are always culturally and socially situated. There is something about them that is connected with somebody else. They carry this context with them and it impacts how we make decisions. We could have lots of numbers, but we need to understand the 'why.'"
Ethnography is an inductive research method that employs in-depth interviews, video, analysis, participant observation, re-enactments and so forth. Frito-Lay relies on Smart Revenue of Stamford, Conn. for its ethnographic research.
Frito Lay outlined their 360 Shopping Process that aims to understand the food shopping cycle from a holistic perspective using ethnography at a recent presentation at the Shopper Insights in Action conference hosted in Chicago by the Institute for International Research (IIR). The study was done during the economic downturn and demonstrated the impact of the recession on shoppers.
"We wanted to understand what people do and when they do it," said Ms. Romeo, who is a cultural anthropologist. "and if 'pre-shop' really matters. Is there a lot going on before people got to the store?"
Ms. Romeo said the study sample was small - only 38 in-depth interviews. "I believe in small samples," she said. "They can reveal tremendous amounts of information that can generate factors for the eventual qualitative analysis."
There are three phases to today's shopping routine:
- Pre-Shop (make list, gather coupons, research via web and word of mouth)
- Shopping Experience (provide consistency in the store; use end caps as anchors)
- Post Shop (food is easy to store in pantry and fridge; got value via deals; pleased family).
Nowadays, perhaps because of the recession, Mom has taken on more responsibilities and sometimes opts to stay at home with young children, according to Ms. Romeo.
Her three key insights:
- The New Frugality (Mom bears the brunt of deciding no Disneyland vacation this summer)
- Wants versus needs (nutrition and main meals are first)
- More work and less pleasure.
According to the executives, the old model insufficiently combined market research, marketing, sales, merchandising, operations, and external partners and data sources. A new integrated model is consumer- and shopper- centric, and internally and externally collaborative. The new model aims to optimize pre-store and in-store media, marketing, and merchandising to increase revenue and profits.
Discussion Questions: What is the potential as well as limitations of using ethnographic research to understand consumers' mindset? What's the most efficient way to gain insights into planned and unplanned buys at retail?