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In today's competitive environment, retailers need to differentiate to attract shoppers and increase their loyalty. Fresh categories in general, and fresh bakery more specifically play an increasingly important role to build store image and drive traffic. Category management can help create the best marketing mix for baked goods. Stefan Eggermont is Global Customer Marketing Manager at Puratos and explains about Puratos' category management approach.
A unique category management approach
'At Puratos we have developed a unique category management approach considering the specificities of the fresh bakery category. We help our customers optimize their marketing mix, aimed directly at target shoppers and total category growth. We provide integrated advices based on three pillars: product range, production and merchandising.'
Data driven decisions
'Retailers often rely on expert knowledge and support from their suppliers to help create their category strategy and approach. Until recently, category management in fresh categories has been left behind. But that is changing rapidly. Category management is a data driven discipline. We base our category advice on a profound analysis of different data sources.'
Puratos has unique knowledge gathered through the Taste Tomorrow consumer survey, sensory analysis, ad-hoc shopper research, market data and an innovation spotting network grant access to insights and trends on a global and local scale. This data alone would lead to the same advise to any of our customer. So that's where we team up. We add retailer input, like sales data and more strategic information on target shoppers, shopping missions, and vision for the category.
'As our bakery, patisserie and chocolate ingredient portfolio covers all types of finished products, we guarantee our customers that we provide neutral and objective advises focusing on total category growth, not only one or two brands or segments.'
The perfect instore bakery
Consumers are looking for unique experiences, especially within the comfort and convenience of a supermarket. For supermarkets in order to compete with a traditional bakery, it's important to excel and communicate on freshness and quality. The perfect in-store bakery resembles a traditional bakery providing a unique artisanal and sensory experience.
Shopper-based product segmentation
'To boost growth, it is important to make the category very easy to shop. Too often, product segmentation and floor layout don’t reflect how shoppers think and look for products. When, how and with whom it will be consumed is super relevant. A very good way to build up an in-store bakery is to segment it around consumption occasions or need states: e.g. snacking, kids lunch, luxury weekend (treat).'
'Furthermore, every product segment should have a specific strategy. You have traffic builders that every one needs, with high penetration and high frequency. Typically you'll put these at the end of the department, with a clear sign posting, and make sure they are never out-of-stock. Then you have segments that are more profitable, or maybe primarily aimed for transaction or image building. Take for example healthy bread, that can be important for the overall image of the retailer.'
Puratos can help answer all key Category Management questions within the baked goods industry. Curious to learn more? Please contact your local Puratos representative and schedule an appointment.
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