Tuesday, January 3, 2017

Molding the Future of Impulse Purchases

Molding the Future of Unplanned Purchases
Melissa Crompton, Senior Manager, New Model Innovation, The Hersey Company

In this changing retail landscape, where trips in-store are down, how does a highly impulsive category remain relevant? 

And how do we become relevant to new audiences who are not going in-store? 
Melissa will touch on the discovery and exploration of an emerging future state of the impulse buy and insights uncovered. The bulk of the discussion will explore the activation against those insights via key test and learns that leveraged the equity of emerging partners to tap into new audiences and sell our products in innovative channels. 

This session will highlight;  
  • Key insights around the changing landscape and the future of the unplanned buy
  • The best way to anticipate the future is to try to shape it yourself
  • How selecting the right partner can credibly expose you to new consumers and audiences, while allowing you to piggyback off of their equity.

Consumers are more connected than ever before. Changes in the pace of life are changing consumer culture to  “I want what I want when I want it!”

So many changes are happening. Changes in communication. Changes in mobility. These changes create a commerce revolution, impacting how we think about unplanned purchases.

Given all of these cultural factors, the question for Hersey is: how can we solve for retail disruption, capture spontaneous purchases?

Through an exploration, five critical questions serve as a filter to disruption:

1.     Who or what?—How can we look at food trends overall, meal kit delivery systems, Amazon Fresh, not just traditional competition?
2.     Quantifiable?—Can you quantify the impact and not just dismiss current growth, but look at predicted growth?
3.     Will it stick?—What is the different between a real cultural shift verses a fad? Think of a fad as Goggle Glass, a trend as Fitbit, and a cultural shift as a iPhone.
4.     What are the scenarios?—How might the landscape look three-to-five years from now? Create scenarios.
5.     What can you do about it today?—new partners? A new business model innovation?

What future are we working to create? How can we actively tend to future growth? Can we gain foresight by modeling out the future today to hedge our bets?

Some questions for Hersey:
·      How can we disrupt the candy isle?
·      Can we offer experiences?
·      How do we solve for unplanned purchases out-of-store?

“We tested both ride sharing and partnering with meal kits.” These Test & Learns helped us understand consumers.

Sixteen percent of consumers order regularly. Sales are sto hit $1.5 billion this year. It is redefining meal planning and procurement.

Our goals were simple: reach receptive consumers. Get Hersey into hands. Leverage partners brand loyalty and love.

We co-marketed, integrating the campaigns of both entities-Chef’d and Hersey.

For ride sharing, we had different objectives: Engage in a meaningful way. Create experiences worth sharing. Drive content that increase loyalty. Hersey did three tests: in Nashville, Mexico, and Take 5 in Denver, Seattle, and Nashville.

What does the future hold?

You need to find new ways to get in front of consumers. You can find new places to play. You can Test & Learn today to prepare for tomorrow.

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