Math Proves Bacon Is a Miracle Food: based on the conclusions from a
recent Wired Magazine and Food Network...ahem..."study," which
analyzed close to 50,000 recipes and 1 Million user-submitted comments, everything but desserts benefited from a little bacon!1
The study goes on to analyze everything from how many ways there are to fry a pork chop (22!) to food fads and how they've fared over the last seven years. For instance, low-carb is on the decline, while salted caramel is hot right now- while I personally don't know why that might be, it's a good sample data point that relates to what and how you stock your store.
Data aside, this really got me thinking about two key questions. First, how we deal with both product fads? And second, how do we leverage product hype associated with staple products. Good examples include Coconut Water and the recent media hype surrounding Oreos®. Coconut Water is a great example of a niche product, which not too long ago you'd only be able to find at Whole Foods or in a small cooler at a Yoga studio. Now there are dozens of products ranging from plain to fruit-infused, and even coffee-infused Coconut Waters. I know there are many who would argue Coconut Water sales in total have moved beyond fad status - I don't disagree - but the question of whether cappuccino-flavored will be around a year from now is still an unknown. I can tell you that I see coffee-flavored Coconut Water popping up everywhere - except in MicroMarkets. For some, that means a missed sales opportunity!
So, why would you want to stock a niche product with potentially low unit sales and an uncertain sales trajectory?
Fad Products tend to have pull with customers who might not otherwise be MicroMarket customers. Many times, these are Lifestyle products, in the case of Coconut water, purchased at the grocery store to take to yoga or the gym.
Fad products make great marketing tools. They're typically already getting lots of coverage, have large marketing spends and they give you something new to sample. And finally, while they might be low-volume,
they command premium prices and in the case of Coconut water also convey a Premium Image.
Remember, MicroMarkets mean you're not just the "Cheetos® Guys" anymore. You're a Coconut Water, Cranberry-Chicken Salad and Popchips®, $6.50-ticket-generating retailer now!
The takeaway: Do a little research to identify trends in your local market. Keep an eye on general market research to see if there's anything
emerging, conduct short-duration market tests, and watch the Parabola. If
you've got the right product, you'll see a quick spike and an equally quick drop. And sometimes you'll find that what you thought was a fad actually fits your market demographics really well and - voila! - you've market-tested something new, perhaps brought in some new consumers, and hopefully generated some revenue lift!
The next topic up for discussion is
brand buzz and media coverage,
best exemplified by Mondelez's Oreo® brand. First off, Oreos® have a terrific marketing team - if you haven't read any of their Twitter feeds, you should. They have close to 200k followers and are very funny. Most recently these iconic cookies have been the subject of a University study (did you know they have addictive properties?), appeared on morning news and talk shows, are all over various web and print news outlets, and as mentioned have a very successful social media strategy.
While we all know that Oreos® are a "must have" item on just about everyone's planogram, that doesn't mean you can't ride shotgun on the "buzz" surrounding them to drive traffic to the market.
What does this mean? For anyone that's seen me present on MicroMarket sales strategies, you'll be familiar with the term "the other 40%." For those new to the term: I use it to refer to the percentage of a location's population who never, or very infrequently, visit the market. Engaging this group is one of the most important things store management can do to
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increase sales.
