As consumers count their pennies, marketing gears up for the food trolley wars

Competition across Ireland’s grocery trade shows no sign of letting up among supermarkets and convenience stores, and it is hoped that standout marketing communications will be deployed in an effort to entice beleaguered grocery shoppers to reach deeper into their pockets.

Lockdowns during the pandemic were a godsend to supermarkets and convenience stores. With bars, restaurants and hotels closed and remote working part of the new norm, people comforted themselves by eating and drinking at home more, and by treating themselves to the type of lavish snacks and meals which, aside from Christmas Day and special occasions, they would usually forgo.

However, the market has moved on. In its latest study of the multiples, Kantar predicted that the average household’s annual shopping bill will increase by €330.

Sales

Grocery sales fell by 7.2 per cent over the 12 weeks to April 17th. Research across the island of Ireland by the Foundation marketing agency shows that 85 per cent of consumers say the rising cost of living influences how they shop, including a growing preference for private label.

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Endless ads highlighting special weekend offers and the sourcing of Irish fresh produce dominate the media. Dunnes Stores banks on its €10 voucher back on every €50 spent, while M&S sticks with images of mouth-watering meals.

To help it outshine its rivals, Musgrave’s convenience chain Centra is urging shoppers to think hard about the choices that define them. In its new TV ad, called Choices and created by TBWA\Dublin, Centra boldly espouses Attitude, Positivity, Kindness, Respect backed by Sigala’s ear-worming dance track, Sweet Lovin. The focus is on diversity and inclusion.

With diversity and inclusion, a brand owner tries to coax consumers by showing it supports all entities in a fully-integrated society. To reinforce the ads, research agency Behaviour & Attitudes was commissioned by Centra’s marketing director, Ray Kelly, to ask 1,000 adults and four discussion groups what sort of choices they make and how their decisions affect the way they live, work and eat.

While 46 per cent of Irish people believe their daily choices have the power to impact positively, one in three feels that society is better shaped by Government moves and policy changes.

Influence

Older adults lean towards a view of Government being more important, whereas younger people tend to be idealistic, believing in their own personal influence.

Psychologist and author Maureen Gaffney was invited to share her take on the Centra study results. She said people are pondering the value of what they are doing by asking themselves: “Am I making the right choices about how I live and how I work?” Although consumers value choice, they know that too many choices may hinder their decision-making.

“The finding that making a good choice is made more difficult in certain conditions is consistent with psychological research findings that the act of making a choice – even a choice we like making – is cognitively taxing and uses up resources that we need for other kinds of thinking,” Dr Gaffney added.

Drag queen and Virgin Media entertainment reporter Paul Ryder, who features in the Centra ad in a Marilyn Monroe-style gold sequin outfit, said choices mean much more now that people have their freedoms back after the pandemic. “We’re having to make the right choices as we move into a new era, where our choices really do define us,” Ryder added.

The Behaviour & Attitudes study also points to an increase in awareness and choices about the environment and sustainability. Not surprisingly, people are making conscious decisions to minimise buying products with excessive packaging, a shortcoming for which food outlets have long come in for reproach. The survey showed that 87 per cent claim to be more mindful about what they buy, compost and how they reduce food waste.

While 66 per cent of respondents said they “contribute positively to their community”, only 29 per cent volunteer their services locally. Helping out in the community was a choice strongly linked to the arrival of children. Expanding family size prompts parents to engage with others, including sports groups.

Overwhelmed

Many younger people feel overwhelmed post-pandemic at the prospect of securing a job and getting affordable accommodation. Both employees and employers face difficult choices about long-term implications of managing remote or hybrid working arrangements.

The research shows that problems which preceded the pandemic have returned, like the lack of reliable public transport and increasing rents. There is uncertainty about the future of cities and city-centre businesses should many people choose to work from home.

As the effects of food inflation bite, grocers have their own choices to make. Not least is whether or not they should choose to invest in innovative marketing in a bid to lower the impact of the clash between restriction-free lifestyles and pressures imposed by less money, rising prices and renewed demand for cheaper foods.

Michael Cullen is editor of Marketing.ie magazine