Shopper Marketing - October 2017 - 24

| HEADING
HEADINGREPORT
SPECIAL

FIVE KEYS TO WIN
What the disappearing middle class in America means to marketers

A

ll too often, this is the go-to,
non-partisan debate for our
public officials: What are we
going to do in order to save our suffering yet historically proud middle
class? Despite thriving for extended
periods over the last century, since the
early 1970s nearly everyone agrees that
middle class has been, unfortunately,
disappearing. In 2015, a Pew Research
Center report suggested the middle
class no longer represented the majority population in the U.S. A 2016 analysis of government data showed that
from 2000 to 2014 the share of adults
living in middle-income households fell
in 203 of 229 U.S. metropolitan areas. The decrease in the middle-class
share measured 6 points or more in 53
metropolitan areas, compared with a
4-point drop nationally, per the report.
To be sure, some of this wealth is also
moving higher - i.e., into the upper
class and upper-middle class - creating new opportunities for luxury brands
and retailers. However, ample statistics on the widening income disparity
levels in the U.S. suggest that much
of it is now concentrated at the lower
end of the spectrum. Marketers must
acknowledge this economic reality as

24

y SHOPPER MARKETING OCTOBER 2017

they adjust to the rapidly changing
retail landscape. Brands can no longer
marginalize value retailers or the value
shopper.
As always, winning in the value channel starts with bringing insights to
merchandising teams as part of a comprehensive solution that can grow the
entire category. Here are five keys to
win:
n

n

n

n

Aim higher than you think you
should. Treat your brands and value
channel presentations as well if not
better than you would at a Walmart.
Add value and convenience wherever you can, but go beyond low prices. Speak up to the value shopper;
test and learn often. These shoppers
embrace innovative solutions as long
as they're affordable.
Experiment with package size, function and added value through innovation. Examples: A personal care
brand with a complimentary new
SKU for trial; a travel size of whitening rinse on a multipack of toothpaste.
Develop a more meaningful, holistic and dynamic mobile strategy.
In 2016, one-fifth of U.S. shoppers



Table of Contents for the Digital Edition of Shopper Marketing - October 2017

Contents
Shopper Marketing - October 2017 - Intro
Shopper Marketing - October 2017 - 1
Shopper Marketing - October 2017 - 2
Shopper Marketing - October 2017 - 3
Shopper Marketing - October 2017 - Contents
Shopper Marketing - October 2017 - 5
Shopper Marketing - October 2017 - 6
Shopper Marketing - October 2017 - 7
Shopper Marketing - October 2017 - 8
Shopper Marketing - October 2017 - 9
Shopper Marketing - October 2017 - 10
Shopper Marketing - October 2017 - 11
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