Food Business News - February 10, 2015 - (Page 14)

HAVE CONFIDENCE IN THE LECITHIN YOU CHOOSE ORGANIC LECITHIN SUNFLOWER NON-GMO LECITHIN LECITHIN YOUR TRUSTED NAME IN INNOVATION FOR OVER 10 YEARS 320 East South Street P Box 80 .O. Cerro Gordo, Illinois 61818 217-763-9511 | clarksonsoy.com 14 FOODBUSINESS NEWS ® The future of shopper marketing CHICAGO - As the president and chief executive officer of the market research company Information Resources, Inc. (I.R.I.), Andrew Appel is surrounded by data - Lots of data. That information, which in many ways is the lifeblood of his company, is collected, segregated and then distributed to a variety of people, products and applications that analyze the information and then develop insights that are distributed to the company's clientele. In the end, the goal is to help I.R.I.'s customers stay ahead of the trends that are shaping and, in many cases, reshaping the market for consumer packaged goods. In an interview with Food Business News, Mr. Appel discussed many of the trends in C.P.G. and also looked ahead to the future of shopper marketing. He argued that in the not-so-distant future the speed with which companies act on insights will become as important as the insights themselves. "Speed is probably one of the three or four most important needs of the industry," Mr. Appel said. "I would assert it's two or three, but it depends on a company's needs. In the end a lot of this is going to be automated decision making; it will be driven by automated parameters, because you can't make decisions that quickly." As an illustration, Mr. Appel pointed to the weather. "Let's say we know it's going to be zero degrees in Chicago next week," he said. "If you are a retailer, what do you do about it? You can't move fast enough to make assortment decisions. You need algorithms to automate it. "You know there is a segment of the population that will do a stock-up trip with an adverse weather forecast. What do you do with that information? The firms that are able to pull these data sets together at the geographic, brand and consumer levels are going to benefit." In 2013, companies defined as small and extra-small by I.R.I. grew by 4.3%, according to the company's Growth Leaders Report. Large companies experienced 0.5% growth. Mr. Appel attributed part of the difference to speed and agility. "Small manufacturers are outgrowing big ones," he said. "How you solve that issue comes back to the consumer. What do consumers want and how do I find the ones that want a specific product? That's the confluence of information. "That's what small companies do. They Andrew Appel, president and chief executive officer, Information Resources, Inc. find niche trends and they move because find move, they are nimble. They don't have annual planning cycles, because they don't need them. Yet they increasingly have access to the same tools as larger companies. "Understanding the increasing uniqueness of consumers and what they want is critical. If you can master those two things at a micro-segment, or ultimately, the consumer level there are benefits. How local can you get? It's all about capturing the individual." Local customization Local is a theme Mr. Appel returned to frequently. He pointed to efforts by such retailers as Wal-Mart Stores, Inc., Dollar General and Walgreens to grow their store count by opening smaller, more local store formats and offering product assortments that are targeted at the local population. "We definitely see what we call a fragmentation or an increase in the number of places that people buy stuff, in general," Mr. Appel said. "So, I think what we are seeing is the localization of retail. Over time that means more and smaller outlets, a more tailored assortment and different consumer segments. In addition we see more purchasing with e-commerce, which will further fragment the retail environment. "That shows up in the changing demographics of our country. The population is February 10, 2015 http://www.clarksonsoy.com

Table of Contents for the Digital Edition of Food Business News - February 10, 2015

Food Business News - February 10, 2015
Hershey continues move into snack categories
Renewed school food fight looming on the horizon
Beverage Business News - Colorful ways to quench a thirst
Table of Contents
Web Contents
Editorial - Oil and currency moves should be seen as threats
McCormick eyes ambitious growth in year ahead
Dunkin’ to debut cold blended beverage platform
Campbell Soup in the midst of reorganizing
The future of shopper marketing
JBS USA plans expansion at Utah beef plant
Large MOM multiples
More tough times ahead for McDonald’s
Inside Wendy’s menu strategy
Chipotle on fire
Diamond acquires stake in potato chip maker
Market Insight - More cattle but beef prices still rising
Health and Wellness - On the cutting edge of digestive health
Ingredient Innovations - Backing up satiety benefits
Company Profile - Tyson Foods flying high
New Food Products
Ingredient Market Trends - Soybean oil market pulled lower, then higher
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - February 10, 2015

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