Marketing Forecast from Ad-ology

Just as we’re breathing a sigh of relief about the easing of the Great Recession, the rising costs of commodities present further challenges for food marketers and shoppers. Consumers are well aware of the looming prices increases for their favorite foods. Many are already calculating the best ways to save money. Marketers who plan to court these consumers should consider using an aggressive coupon strategy this year.

Despite a late Easter this year, consumers’ eagerness to spend on décor, food and even new spring apparel is not expected to be adversely affected. According to NRF’s 2011 Consumer Intentions and Actions survey, the average consumer is expected to spend $131.04 on everything from candy to clothes – up from $118.60 in 2010, but not quite to pre-recession levels. Total spending on Easter related merchandise is expected to reach $14.6 billion. “Due to such a late holiday, Easter promotions will last all spring long,” said NRF President and CEO Matthew Shay. Many Americans will take advantage of retailers’ spring sales to buy new clothing for the entire family. Food and candy will account for most of a consumer’s budget, bringing in $2.1 billion in candy sales and $4.5 billion in food sales alone.

According to a recent study by Packaged Facts, changes in thinking about what it means to get old have occurred alongside a rising concern by Boomers about doing what it takes to improve their health and wellness. For that reason, marketers of consumer goods and services have made Healthy 50+ Consumers prime targets. The report defines “Healthy 50+ Consumers” as the 26 million Americans 50 years and over who are pursing a wellness regime that includes healthy eating and regular exercise activities such as fitness walking or swimming. Not only are Healthy 50+ Consumers more confident about the overall economy and their own financial futures, but they are also far more willing to pay a premium when purchasing “better-for-you” grocery products compared to their peers.

The federal menu labeling law, which restaurant chains with 20+ units are expected to implement in the latter half of 2012, will require chain restaurants to display calories for standard menu items, as well as calories for each serving of food at a salad bar or buffet line. New research by The NPD Group anticipates how consumers will react to seeing calories on the menus. In the short term, consumers may react to calorie labeling with some shift in foods/beverages ordered, but this behavior is expected to be temporary. “Operators may want to plan for some initial shift in product mix when the new menus are presented to consumers. Lower-calorie sides might be highlighted or promoted when the menu change is made, which could assist in keeping order sizes and check sizes up,” says Bonnie Riggs, NPD’s restaurant industry analyst and author of the report.

Fast-casual chains lead the restaurant industry when it comes to offering online ordering tools, according to a new study by Cornell University. Nearly half of the fast-casual chains surveyed by Cornell researchers offered online ordering, compared with 23% of chains across all segments. Quick-service restaurants had the second-highest rate of adoption of online ordering technology, at 22%, the report found, followed by casual-dining operators, 18%, and midscale full-service chains, 8.9%. Online ordering offers sales opportunities for restaurant chains. “Over 40% of U.S. adults have ordered food online, and restaurants using electronic ordering report increases in both average check and order frequency,” said the authors of the report.

Ad-ology Research recently updated their Industry Marketing Insights report Dairy Product Marketers. The following are the predicted Top 3 Opportunities/Challenges from the report for this industry for the upcoming 12 months: