4/4/2015
Here we are, another Easter, other eggs to break, other chocolate to eat, other weight to gain, other food to waste. Ok, maybe remember our childhood and follow traditional costumes of this period of the year is not too bad, but isn't it all becoming a little bit redundant? I mean... Easter, as much as all the other holidays, has always had the same cliché, time after time, so that there is nothing new in anything we do, and it is gradually losing its meaning, becoming just a day in which to rest from the stress of everyday work.
What is all of this meaning from a market point of view?
A need to rethink
"Last year the grocery market fell to its slowest pace of growth in 12 years" (Tactical Solutions, 2015) and even though the Easter industry is heavily affected by the period of the year when the holiday is coming, there should be even something else wrong. Could it be that people care less about Easter because they don't know in advance when it is exactly coming? Or the closeness to Christmas makes it a "secondary", "unwanted" holiday? Think about that, they are for sure the two most important events of the year, but while for Christmas you have to wait 8-9 months on average, Easter is coming just 3-4 months after Christmas, and this could affect its sales ability.
Nevertheless, the size, the importance and the variety of the market, doesn't allow to think about an endless decline. All that seems necessary is a repositiong, rethinking, reoffering of new kinds of products from well known brands. Who wouldn't want to buy an Easter bunny filled in with Nutella, for example? :)
Happy "New" Easter!
Mintel research (2012) found that chocolate products with a seasonal, short-range claim, covered 25% of the global annual production, and new product launches have increased by 6% between 2010 and 2011, despite an overall decline by 7%. But what is impressive is the steady rise of new product developments that happened comparing Easter 2011 and 2012, a significant +45%. The excellent sales results coming from that season pushed all other holidays in innovation, making even more the seasonal sector recession resistant.
However, not all social classes were involved in the change. Some more, some less.
Adults: endless children
According to Mintel (2012), new launches focused on 5-12 aged children have remained still in the UK, but have dramatically decreased by 62% in the US and in Brazil. So, how to justify the general increasing trend mentioned before? Further research (Mintel, 2015) has shown that, although the majority of consumers is still the kids, almost 2 out of 5 sweets were gifted to adults in this Easter period. The industry is gradually adapting to this new trends, offering more sophisticated and less sweet tasted eggs, sometimes recalling ice cream flavour, spiced aroma or even alcohol-filled egg-shaped chocolate.
Do not forget about children!
A potential threat: is it really good to abandon any development stage on children seasonal products? Actually, some worries are already under analysis. "Concerns about children eating too much confectionary has driven manufacturers to rethink product launches" (Mintel, 2015), since even in holiday periods parents are becoming less indulgent, so it could be a good idea to start dividing the children target in many facets, like it is already happening for adults, avoiding the plain, oldishs split based on colours (pink or blue) and surprise (for boy or girl).
Easter Market Research
So, what should a good market researcher do in this environment to help his company? Let's re-utilise and tailor for our needs the interesting 7 Eggs structure proposed by RMS (2012) for market research proposals (
https://rmsbunkerblog.wordpress.com/2012/04/06/7-hidden-easter-eggs-in-market-research-proposals/) :
1) Sample Acquisition: make surveys or qualitative research on customers to understand their preferences, meanwhile creating a constantly up-to-date database, without relying on potentially unreliable third parties
2) Mix of Respondents: setting desired parameters and research schedule in advance could help in avoiding waste of time and unwanted biases in the sample, addressing always to the most suitable target for business needs (mainly children and parents, for Easter products producers)
3) Honorarium Cost: understand which could be the time and monetary cost of a set sample in terms of size, expected responses and possible missing answers, although this highly depends on the medium used for data acquisition
4) The Final Presentation: sum up and weight the results obtained in comparison with research starting proposals and the difference with previous collected data and market trends
5) Estimated Timeline: verify the compliance of the previously set deadline with the completion of the study in each step and as a whole (particularly important in seasonal market environment like the Easter one)
6) Access to Data: double check the final data as a part of quality and relevance control procedure
7) The Lost Data File: make sure the market research states that you have got what the company was aiming for at the end of the study, do not finish in a dead end
There is no Easter party for market researchers, if their research is not valuable. Every day is a good day for research, you will always meet people, and get to know different ways of thinking, mores and habits. Never lose any chance, because any missed chance is missed forever, it will never come back. Be clever, act wise, stay focused and consistent, and your research will be successful.
That's the Importance of Being a Market Researcher.
That's this blog.
HAPPY EASTER EVERYONE!!! :)
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GIANLUCA NOCENT
