Through a special arrangement, presented here for discussion are excerpts of a current article from Refrigerated & Frozen Foods Retailer magazine.
How are shopper habits changing, and what new strategies should you be implementing to protect and even grow your share of frozen and refrigerated foods in these tough times? For answers to these questions, we went to Thom Blischok, president of consulting and innovation for Information Resources, Inc., the Chicago-based marketing firm.
R&FFR: What are some key trends affecting refrigerated and frozen food consumers, especially in today's rough economy?
Mr. Blischok: In terms of food offerings, the key trend for retailers to understand is that we have to move from availability to affordability. It's becoming less about stocking everything and more about stocking what shoppers can afford. The 60 percent of households making less than $55,000 per year are totally redefining how they eat. They've lost the equivalent of about $4,000 in buying power over the last year, and they really have to find ways to stretch their food dollar.
R&FFR: What can retailers do about all this in their frozen and refrigerated departments?
Mr. Blischok: Maybe they should focus less on traditional categories, and more on merchandising affordable meals. Right now there is opportunity to rethink what frozen displays look like. Think like a shopper: 'How can I get a frozen meal for four for under $15?' That sort of concept will be a real winner in the marketplace, but it will require you to display meals differently.
R&FFR: In
what ways?
Mr. Blischok: By creating frozen food displays
by meal components rather than by just categories or prepared meals. You
might want to have chicken breasts next to frozen vegetables, next to frozen
potatoes, next to a dessert. Think about putting together simple meals
inside the display cases, and especially in endcaps. The tradeoff, of course,
is that it's not necessarily what the manufacturer wants, or what the retailer
wants, but it's how consumers buy. Consumers right now are afraid, they're
hesitating.
R&FFR: What's lacking here, and
how can we fix it?
Mr. Blischok: What I don't see in frozen and dairy
is story-telling. You have packages with pictures, but nothing to tell
you 'Can I afford this? Is it nutritious? How can I combine a few
items to make several meals?' You might set the case for a Mexican
fiesta, where the shopper can mix and match five items and do dinner for
$15 for a family of four...You could even have a section for 'affordable
indulgences,' like single-serve ice cream or desserts to help the shopper
see that you are thinking about their needs and saving them money. The
frozen department can pull this together better than people might think.
Frozen, in the eyes of many consumers, is essentially equivalent to fresh.
Retailers need to understand that consumers will accept frozen foods today
and actually see some affordability advantages in the department. Frozen
foods can be of equal 'freshness,' be more affordable on a cost
per-ounce, offer portion control and have a long shelf life.
Discussion Questions: How can frozen food sections better promote the "affordability" message to consumers? What merchandising and marketing opportunities are being missed in the frozen department?
[Author's commentary] This article is based on interviews with Thom Blischok, and "Tough Times Create a Revival of the Dining Room," a report he authored for Information Resources, Inc. For a copy of that report, e-mail a request to thayerw@bnpmedia.com.