Posted by Filipa Silverio on Mar 16, 2021
I have received a number of questions recently about how behaviour changes due to the pandemic will continue in the ‘new normal’ and hence a look at ‘inertia’ in choice; secondly we continue to explore why new product trial rates vary so much by country; and lastly a follow-up on questions about category performance in 2020.
- The tendency for inertia to set in once a change has been made was evident during the last recession when Private Label gained a share level. It is also seen generally in that brand share gains and losses are difficult to reverse.
- There are more than 4 times as many competitive SKUs in larger countries. The average trial rate for new products is 1.2% a year after launch vs 2.1% in smaller countries. ‘Stand-out’ in communication and in-store is vital if the consumer is to be made aware and choose anything new.
- The most growth was seen for Frozen and Packaged Groceries with Fresh, Chilled, Soft Drinks and Homecare in line with the average. Personal Care increased value but at a much lower rate, with reduced social occasions.