cullans-blog

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Grocery Shopping for Easter and Passover

The importance of supermarket brands paying attention to consumer shopping patterns over the Easter and Passover holidays is discussed in the article. According to the NRF, consumers will spend $24 billion on Easter, with 56% of consumers planning to cook a family meal and groceries being the main focus of the festivities. The top three products that shoppers intend to buy are candy, presents, and food, with food representing the largest category with $7.3 billion in sales. The week before Passover, matzo orders rose by 300%, and other well-liked Passover delicacies also experienced considerable spikes in demand. During the Spring vacations the year before, people were seen making last-minute purchases of coffee and candies.

According to the article's most recent standards and insights guide, Walmart and YouTube have continuously been the most popular channel and store for groceries eCommerce. Walmart is in the lead with a 47.6% share of purchase intent clicks across the top five grocery stores, while grocery companies advertising on YouTube had the highest purchase intent rates at 5.6%. The essay stresses the significance of providing eCommerce features like shoppable media to create a smooth purchasing experience for customers, whether they are making regular purchases or seasonal purchases.

Grocery brands should, in general, go above and beyond to appeal to and engage their customers throughout the Easter and Passover celebrations by promoting their items and guaranteeing a seamless buying experience through eCommerce capabilities.

Question: In your opinion, what part do eCommerce tools and shoppable media play in giving customers an effortless holiday shopping experience?

[cullans-blog]

Heinz Expanding Their Product Line

Heinz Ketchup and 57 Sauce now come in a new line of hotter variations called Hot Varieties, thanks to Kraft Heinz. Chipotle, Jalapeno, and Habanero are the three types of spicy ketchup: medium, hot, and extra hot. Jalapenos give the Hot 57 Sauce its heat, which is available in just one level of spice. With the impending market debut of Tingly Ted's sauce, the company has officially entered the hot sauce industry for the first time in a substantial way with this launch. By 2026, the market for spicy sauce will have surpassed $4.9 million, growing at a compound yearly growth rate of 7.9%.

The hot sauces are a deliberate move to spur expansion throughout the United States, according to Pedro Navio, President of Taste, Meals, and Away from Home for Kraft Heinz in the United States. According to Navio, the company discovered through customer research that as consumer expectations of the hot sauce market have evolved, so have they. They are interested in the peppers that provide the sauces the heat rather than just general mild, medium, and hot sauces. The business intends to make aggressive investments in its "grow brands" in order to fill unfilled market niches.

One Innovation Engine, a development method used by Kraft Heinz, makes use of ground-breaking technology to build a portfolio that offers value to customers based on both their current and future demands. Cross-functional, focused teams that collaborate to build new products fast are part of this strategy. By 2027, the corporation hopes to generate $2 billion in net sales from just these innovative projects.

Question: What dangers or difficulties can Kraft Heinz encounter as it tries to develop and expand its product line? How can the business reduce these risks?

[cullans-blog]

Chobani Taking a Cautious Approach

In order to concentrate on innovation in its core product lines, where it already has a significant market position, Chobani has postponed its plans to enter new food and beverage categories. The company, with headquarters in New York, has concentrated on its $1 billion yogurt industry and introduced new flavors and packaging styles while also marketing additional uses for these well-known goods. In the last two years, it has also introduced oat milk and creamers, which will raise income by roughly 30% in 2022. In the majority of situations, Chobani has been successful, albeit its ultra-filtered milk product was taken off the market in 2022. Chobani continues to search for new markets it may enter despite its strategy change in an effort to find a discrepancy between what CPG firms are offering and what customers think they are buying.

Chobani's decision to focus its growth on markets where it currently has a foothold seems like a wise move, but it might also be risky if the company decides to try again for an IPO. The business is placing its bet on its ability to convince Wall Street that it can successfully expand its current operations and is not now required to foray into new ones. When COVID-19 was at its worst, Chobani benefited since its rivals were having trouble stocking shelves because of employee absences and supply chain problems. Retailers have stocked their shelves with more Chobani products and are more prepared to take an opportunity on selling new goods when they are introduced thanks to the products' dependability and great velocity when they hit the market.

The purpose of Chobani is to reveal a discrepancy between what CPG businesses are marketing and what consumers think they are purchasing. When Chobani first entered the yogurt market in 2007, it displace other sugar-heavy brands with alternatives that used less sweetener. Since then, the company has doubled down by introducing Chobani Zero Sugar, which has quickly evolved into a $164 million company in less than two years and captured around 2% of the yogurt market.

My question: Why did Chobani choose to focus on innovation within its existing product lines as opposed to aggressively expanding into new markets?