MJN Progressive Grocer Baby Book Final

Meet the Millennial momWhat makes Millennial moms tick — and click PAGE 3

Shopper insights about Millennials and their impact on baby category dynamics

Digital deliveryHow e-commerce is revolutionizing the baby care categoryPAGE 5

Make your store a baby shopping destinationIn-store shopping trends you can’t afford to ignorePAGE 15

Cover and BC.indd 1 7/22/15 11:53 AM

42

Letterhead08

nourishing the best start in life


EXAMPLES

42

Letterhead08



EXAMPLES

2H O W T O W I N I N T H E B A B Y C A T E G O R Y

INTRODUCING

Molly Johnson Goes ShoppingUsing survey data from more than 3,000 moms trending from

2008 to 2015, plus interviews with dozens of leading retailers, Mead Johnson Nutrition has developed a robust shopper insights research program: Molly Johnson Goes Shopping.

This proprietary shopper insights program delivers comprehensive insights on moms’ purchase behavior across

e-retail as well as brick-and-mortar. Note: Research sample includes only non-WIC moms.

Dear Industry Partners,The rise of e-commerce is transforming the retail landscape, providing shoppers with the means to explore entire categories, learn about products, compare prices, and select where they will complete their purchase before they even leave home. A new generation of tech-savvy retail customers, the Millennials, are leading the charge, doing more of their shopping and buying online than anyone else, even in categories that once seemed safely owned by brick-and-mortar stores.

Baby care is one of these leading edge categories, with 90 percent of Millennial moms going online to start every baby care purchase occasion—regardless of whether the purchase is completed online or in-store. This new path to purchase provides both challenges and opportunities for grocers who want to win their fair share of Millennials’ $1.3 trillion in spending power.

In this special report, Mead Johnson shares actionable insights about:

What Makes Millennial Moms Tick—and Click

How E-commerce Is Revolutionizing the Baby Care Category

In-Store Shopping Trends That You Can’t Afford to Ignore

Mead Johnson is committed to keeping you on top of the trends in baby care, particularly infant formula, by delivering timely and relevant information that can help drive your busi-ness. Through our proprietary shopper insights program, Molly Johnson Goes Shopping, Mead Johnson has trended mom-reported shopping behavior across channels since 2008, giving us a unique perspective on baby care shopping patterns and practices. This brief report only serves to highlight our research findings. We look forward to speaking with you to discuss all of the learnings and consequent recommendations in the very near future.

Steve YarbroughVice President, U.S. Retail Sales Organization and Customer DevelopmentMead Johnson Nutrition

MJBB 0515 PG 02 Welcome Letter.indd 1 7/22/15 12:01 PM

Americans born between 1981 and 2000 are a dynamic demographic who bring a unique set of values, attitudes and expectations to the shopping experience.

Millennials pay close attention to price tags as well as labels and ingredient lists, and they do their homework before making a purchase.

These tech-savvy consumers rely on a multitude of devices, sites and sources to guide their purchase decisions, especially when it comes to baby products. As a re-sult, Millennial moms are one of the most informed, empowered and discriminating demographics ever to hit the baby aisle—and they won’t hesitate to walk (or click) away from retailers who have not recognized their needs for timely and relevant information. Connecting with this consumer starts by knowing who she is and what she wants.

84 MILLION

U.S. adults2

OF NEW MOMS ARE

1Baby Center/Boston Consulting Group, January 2014; U.S. Census Bureau, 20122Baby Center/Boston Consulting Group, January 2014; U.S. Cen-sus Bureau, 2012; The Institute for College Access and Success 2013; Entrepreneur.com Q4 2013; Pew Research Center

Millennials1

83%

Millennials by the numbers

42

Letterhead08



EXAMPLES

Meet the Millennial mom

18 to 34 YEARS OLD

$1.3 trillion in spending power

$430 billion in discretionary spending

37% unemployed or out of workforce

$45,000 average college debt


MJBB 0515 PG 03-04 Millennial Mom.indd 3 7/22/15 12:04 PM

42

Letterhead08



EXAMPLES

Millennial moms are significantly more likely than Generation X moms (ages 35-50) to consider it “very important” that

brands (including retail brands) understand what matters to them as parents.3

59% have bought a product that another mom recommended on a parenting site

43% have liked more than 20 brands on Facebook1 in 5 have made a purchase because they saw someone in their network following the brand6

3BabyCenter 21st Century Mom® Insights Series, 2014 Millennial Mom Report, January 20144Molly Johnson Shops Online 2014

5BabyCenter 21st Century Mom® Insights Series, 2014 Millennial Mom Report, January 20146www.census.gov; The Institute for College Access and Success 2013;

Entrepreneur.com Q4 2013; pewsocialtrends.org

HOURS5.0

Amount of time the Millennial mom spends

shopping online each week, out of her reported 20 weekly hours of personal time online4

Brand characteristics that are important to Millennial moms5

*Good value does not always mean lowest prices.

Good value*87%

Products that simplify

my life67%

Matches my lifestyle/

personality61%

Products use natural/wholesome ingredients

49%

Products are proven to be

safe for children85%

Millennial moms use social media as a shopping tool:


MJBB 0515 PG 03-04 Millennial Mom.indd 4 7/22/15 12:04 PM

Millennials represent the first generation of parents who can purchase just about everything their baby needs without leaving the comfort of their home. And that is

just what they are doing, in ever greater numbers.

Currently, moms estimate making about one-third of all baby product purchases online. Brick-and-mortar retailers that have long counted on the baby category as a traffic driver may now find that traffic being lured elsewhere. Moreover, a mom typically buys multiple baby care products at the same time, so if she migrates online for one baby care category, she may start adding products from other categories into her digital shopping cart.

To stay competitive and capture their fair share of baby purchases, it is important for grocery retailers to recognize the opportunities this new generation of moms provides as well as the potential pitfalls. Whether you are an exclusive e-commerce retailer or a traditional brick-and-mortar retailer, the needs and behaviors of Millennials should become a critical part of your long-term business planning.

Digital delivery:

Tap the growing market for online baby care sales


MJBB 0515 PG 05-11 Digital Delivery.indd 5 7/22/15 11:55 AM

42

Letterhead08



EXAMPLES



In-store Online—home delivery Online—pick up in store

Source: Molly Johnson Shops Online 2014

Online vs. in-storeToday’s digital moms are accustomed to having

information at their fingertips and have higher ex-pectations of immediacy, which is why leveraging online resources plays a bigger role in their shopping choices. And for the most part, these moms say online retailers allow them to find the baby care information and items they need.

For a mom with a baby, online shopping can be a reliable resource that’s available 24-7, replacing trips to the store. It keeps her from having to load up her baby in the car and then take the baby around a store. This is especially true for busy working moms and moms with multiple young children. Online shopping also saves time and gas money for budget-challenged parents, particularly if free shipping is offered, and eliminates lugging large, bulky items.

Despite some of these e-commerce conveniences, though, very few moms elect to purchase ALL of their baby items online. Instead, the vast majority of moms prefer having the flexibility to alternate between online and brick-and-mortar stores instead of sticking strictly with one channel, basing their ultimate decision on promotions/deals, their pantry stock, the size and availability of the item, baby’s mood, and their schedule that particular day or week.

For example, moms prefer online purchasing for hard-to-find or bulky baby items or simply when they are overwhelmed. In-store purchase is most appealing for first-time purchases of a product or brand or when her need is immediate. When moms need to stock up or get the best prices, deciding whether to purchase online or in-store depends on the deals to be had.

ONLINE VS. IN-STORE

Shopping channel preferences15%75%

9%

19% 71% 10%

22% 68% 10%

34% 60%

6%

44% 50%

6%

43% 46% 11%

71% 24%

6%

75% 19%

6%

87% 7% 7%

Need a specialized, hard-to-find baby product/brand

When my day-to-day schedule is overwhelming/limited time

When it is a bulky item

Want to find a good deal/ sale price

Want to stock up on a baby item

Want to purchase for the absolute lowest everyday price

Looking to switch to a new brand (product regularly buy)

Looking to buy an item for the first time

When I need that baby product today


42

Letterhead08



EXAMPLES



Start online to compare prices/browse, decide

whether to purchase online vs. local store depending on results

52%Plan to purchase at a local retailer, but first go online to browse/

compare prices

26%Usually shop and

purchase at online retailers

8%

Online—pick up in storeIn-store Online—home delivery



ONLINE VS. IN-STORE

Mom-reported baby category purchases in the past 30 days

Online baby care path to purchase

Baby food

Baby formula

Baby clothing

Diapers

Diapering needs

2%67%16%

5%51%24%

8%34%45%

10%57%29%

10%51%27%

Start online 86%

Start in-store 14%

Go to search site 42%Go directly to retailer site 58%

Stay on site OR Jump to other retailer sites, Log off empty-handed

(potential to buy in-store later) 38%

Make purchase 62%

Visit one site47%

Check prices65%

Browse comparable options42%

Research product48%

Read product reviews29%


42

Letterhead08



EXAMPLES


Whether the Millennial mom is shopping online or in-store, she is looking to connect with baby retailers across multiple digital

touch points. Besides her laptop, she relies on her mobile device for up-to-the-minute price comparisons and for access to coupons, often via retailer-specific applications.

In fact, 4 in 10 moms say they used a mobile app to compare prices the last time they shopped for formula in-store. Mass merchandise stores, however, are the likeliest settings: Compared with mass merchandise shoppers, grocery shoppers are less likely to have ever used a shopping app. In fact, if mom’s using her mobile device while shopping grocery, she may be looking for deals, coupons and promotions at other retail-ers. This is clearly a critical opportunity for grocery retailers and another indication that winning with tech-savvy moms requires a multi-pronged digital strategy.

Digital communications are increasingly being leveraged by retailers to alert moms to baby category discounts and deals. Millennials are less likely than older shoppers to clip coupons or check printed circu-lars before hitting the store. Instead, Millennial shoppers search for on-line coupons or check retailers’ Facebook and Twitter feeds for special promotions. There is a growing expectation among moms that retailers should be reaching out to them when running a promotion. More and more, they rely on store texts and apps to alert them to promotions and sales, and these types of digital shoulder taps have a big impact.

Used to search for coupons to redeem at store or location

Used codes from a text message for a special discount

Used mobile app to check the price of a product at another store

Used in the store to look up product information

Took a picture of a product or sale to send/save or post online

Used mobile app to scan a barcode for product information

Some other type of shopping application

None of these

22% 53%

16% 43%

15% 40%

25% 39%

34% 30%

13% 25%

7% 15%

40% 18%

Smart phone ownership 66% 95%

Beyond the laptop: Connecting with mom through multiple digital touch points

2011 2015

How smartphones are used in-store

Source: Molly Johnson 2015


42

Letterhead08



EXAMPLES

Since most moms begin their baby care shopping experience online (regardless of whether or not they complete the purchase online), winning with moms starts by becoming one of their go-to websites. Baby registries or mom-centric loyalty or subscription programs can establish this relationship early so that your site is top of mind from day one.

1 Make your website a trusted first stop

4 steps to a mom-friendly online shopping experience


MJBB 0515 PG 05-11 Digital Delivery.indd 9 7/22/15 12:08 PM

42

Letterhead08



EXAMPLES


To make shopping for baby products as simple as possible, websites must be easy to navigate, moms say. Moms appreciate a clean, uncluttered look above all else. When sites look too “busy,” they make the shopper feel overwhelmed. Moms like it when baby care web pages are designed with soft, nursery colors and graphics.

Moms say they expect reviews to be included on all online retail sites, to help them determine which products to click on for more information. They find reviews particularly useful in shop-ping for unfamiliar or more expensive products.

Because moms are so price driven, promotions and the cost of shipping play important roles in their online shopping process too.

Moms love to see discounts or sales on products, even as low as 5 percent off. These discounts can also encourage moms to purchase more; for example, $10 off a $100 purchase.

Most moms say they are willing to accept a minimum purchase amount from $25 to $35 for free shipping. If the shipping costs are too high, however, mom will abandon her cart and take the “easier” option of just buying the products in-store. To avoid checkout surprises, keep her informed of her running total as she adds items to her cart to help her decision process.

Reviews are a critical part of the learning and purchase process: They help moms to prioritize products for further investigation.

Large numbers of reviews deliver confidence in the star ratings.

Moms appreciate video reviews for the added detail and “live demonstrations.”

2 Become an easy option for mom to find and purchase what she needs


42

Letterhead08



EXAMPLES


E-commerce can offer products and options that simply are not available to moms in brick-and-mortar stores. In fact, 75 percent of moms default to online when they are looking for a unique baby item. Be sure to:

Provide the fullest range available for items

Offer special online case pack or specialty items

Avoid out-of-stocks to bolster a sense of reliability–mom knows she can get what she needs no matter how specialized.

Subscriptions and memberships help your site stay top of mind and provide moms with a consistent, faster shopping session and high purchase confidence. Though few moms currently use online subscription services exclusively, a signif-icant proportion say they’re interested.

Consider leveraging existing loyalty programs to incorporate baby care rewards or subscription offerings, which has proven to be appealing for frequent-ly purchased baby categories such as diapers.

3 Maximize selection and unique offerings

4 Use online subscriptions to boost loyalty

First pregnancy

0- to 5-month-old

6- to 11-month-old

12- to 24-month-old

Experienced mom

21% 50%

32% 39%

30% 33%

27% 28%

20% 26%

Online subscriptions and memberships

Source: BabyCenter 21st Century Mom® Insights Series, Mom: The Family Shopper, July 2014Currently has

Interested in using


42

Letterhead08



EXAMPLES


Online formula sales are steadily increasing, but overall only about half of moms have ever bought formula via the Internet. In this section, let’s take

a look at the online formula path to purchase, benefits and barriers to buying formula online, and opportunities for retailers to capture a bigger share of infant formula sales online.

Mom’s path to purchase for online infant formula looks a lot like her general online baby shopping route. Mom opts for large screens (laptop) over smaller mobile screens (tablet or phone), and compares products and prices before completing the purchase, frequently jumping to other websites along the way. Often she’ll bundle other baby care items, such as food and diapers, into her purchase too.

Online infant formula

FOCUS:

FOCUS

MJBB 0515 PG 12-13 Online Infant Formula.indd 12 7/22/15 12:02 PM

42

Letterhead08



EXAMPLES


Buy baby items online

Buy other household categories online

Use price-checking apps

Sign up for subscription programs

Shop online on the weekend

Visit a retail site specifically intending to purchase

Become more frustrated comparing formula prices online

Be equally split about what is most important in the online purchase decision: convenience (50%) or price (50%)

Online, working moms are more likely to:

Buying infant formula

online:

Moms typically fall into one of three formula purchasing types: never or rarely purchase online, use a combination online and in-store strategy, or committed online purchaser.

Some moms rarely purchase formula online because: They cannot (or do not realize they can) use formula manufacturer coupons.

Brick-and-mortar can be perceived as offering the lowest cost or better deals.

They do not realize they need to purchase formula until it becomes an imme-diate need.

And some moms, particularly working moms and moms with multiple children, use a combination of in-store and online shopping, taking advantage of promo-tions in the channel that offers the best value at that time or stocking up when they see a deal online and/or picking up a limited amount while they are out doing a regular shopping trip.

Today, only a small number of moms purchase formula exclusively online, mainly via subscriptions or e-commerce loyalty programs. For these moms the conve-nience of predictable delivery and perceived lowest pricing (particularly when buying in bulk) outweighs the risk of baby’s unpredictable formula consumption.

The benefits of online formula purchasing are all about flexibility; mom can shop on her (or her baby’s) schedule, comparing prices for the best deal, and stock up without worrying about how she will get the large, heavy packages home.

Top 5 advantages reported

by moms

1. Can shop and order anytime2. Free shipping makes it easy3. Able to compare prices across web-

sites and get the best deal4. More convenient to have formula

delivered5. Easier than carrying heavy packages

of formula from the store

Top 5 disadvantages reported

by moms

1. Not timely/Have to wait for order to ship

2. Shipping charges3. Can get discount when I buy it

in store4. Price/value/can get it cheaper

elsewhere5. Like to be able to read labels


FOCUS

MJBB 0515 PG 12-13 Online Infant Formula.indd 13 7/22/15 12:02 PM

42

Letterhead08



EXAMPLES

ACTIVATION GUIDE:

Tap the growing market for online baby care sales


Moms want product and ingredient information at their fingertips

Provide detailed product information, including nutrient panels, ingredient lists, multiple-view product pictures and videos. Give mom the ability to directly compare and contrast different products/brands. Partner with manufacturers to keep online product details up-to-date. Garner plenty of buyer reviews, which help to give moms confidence when purchasing.

Moms want a simple path from start to cart

Optimize search terms to bring your website to the top of the results To allow moms to navigate your site quickly and easily, include: Auto-suggest in search Easy- to-understand categories The “right” filters – for example, enabling

moms to sort infant formula by type/form Relevant search results Click-to-compare feature

Provide the total cost of purchasing a product, including shipping, without mom having to add it to her cart.

Moms want value beyond low prices

Moms suggest that $25 to $35 is a reasonable minimum purchase range for free shipping. Regular promotions with small discounts (i.e., 5 to 10% off) can be impactful. Offer incentives for repeat purchases. Reach out to moms with shareable info about promotions using store texts, an app or some sort of digital media. Additional services such as click & collect, local home delivery with minimum purchase, or loyalty clubs can add value. Add value by providing online baby care content (e.g., safety information, baby care tips). Explore partnering with manufacturers to build out this content.

Moms want content that inspires social media sharing

Ensure your banner is “likeable”: Provide information about the social, environmental or community causes you support. Empower users to like and share those efforts on social media. Include other share-worthy information that shoppers will want to post on social media, such as the latest baby products your store is offering, and include direct links to top sites (i.e., Pinterest).

SHOPPER INSIGHTS IN ACTION

WIN

ON

LIN

E

MJBB 0515 PG 14 22 23 Insights-2-1.indd 14 7/22/15 11:55 AM

42

Letterhead08



EXAMPLES


PBH O W T O W I N I N T H E B A B Y C A T E G O R Y

Online shopping may be shaking up the baby care category, but mom still considers brick-and-mortar stores an important baby care resource. In fact,

depending on what she’s buying and when she needs it, in-store is often more appealing than online.

To stay at the top of mom’s list, brick-and-mortar grocers can become baby care destinations rather than last-minute last resorts. Several key strategies can help retailers meet—and exceed—moms’ in-store shopping expectations.

Make your store a baby shopping destination

MJBB 0515 PG 15-17 Baby Shopping Dest.indd 15 7/22/15 12:03 PM

42

Letterhead08



EXAMPLES



Grow awarenessThe fact that mom can get what she needs the moment she needs it—with no wait (or cost) for shipping—is a big reason she opts to shop in-store rather than online. Steer mom toward the baby aisle with end caps and displays, as well as educational signage aimed at informing and empowering new and soon-to-be moms.

Knowing that she’ll be able to find the exact items she’s looking for in-stock is also crucial when mom’s deciding where to shop. She chooses stores with well-stocked shelves, and if the items she wants aren’t immediately available, many moms will walk. What’s more, compared with other retail formats, moms shopping grocery are less likely to ask for assistance if they can’t find what they’re looking for.


Would definitely ask for assistance for an out-of-stock baby item

Around half of moms will leave the store if they don’t find the product they came for.

Grocery

Mass

Drug

27%

41%

58%


42

Letterhead08



EXAMPLES



Leverage other technologyWebsites aren’t the only way to interact with mom via technology. Brick-and-mortar retailers can leverage apps and other digital tools to engage mom while she’s in-store or, just as importantly, to connect with her well before she gets there.

A great baby aisle offers a wide variety of products as well as trusted name brands. Having an array of fea-tures, formats and formulations is especially import-ant for feeding products because mom needs to feel good about what she gives her baby.

A wide selection is also advantageous because moms say they prefer to shop in-store rather than online when trying new or unfamiliar products or when switching brands. This means grocers have a key op-portunity to serve as mom’s trusted “testing ground.”

That’s especially important for new and soon-to-be moms. When baby’s on the way, mom-to-be opts

for retailers with a big selection of products she can touch, try and learn about in person. New moms are also more likely than experienced moms to shop around at multiple retailers and invest time in decid-ing what to buy.


Factors most critical to mom importance ratings: Baby aisle features at the grocery store (% rating top box 7 out of 7)

The store offers the brands I am

looking for.66%

The baby aisle shelves are well-

stocked; I can get all the products I

came for.65%

The store offers lower prices and

good value for baby products.65%

The store offers high-quality

baby products and brands.56%

It offers baby products made with the safest materials

(for example, BPA-free).55%

There is a wide variety of baby

products so I can get all I need in

one stop.54%

It is easy to find the products I need

in the baby aisle.54%

It offers great sales/promotions for

baby items.54%

The baby aisle is organized to let me quickly grab what

I need.51%

It offers baby foods, drinks and formulas that are more whole-

some (organic, natural, simple ingredients,

non-GMO).

40%

1

6

2

7

3

8

4

9

5

10


42

Letterhead08



EXAMPLES



Most moms check prices online before they ever set foot in a store, although moms who shopped grocery on their last trip were less likely to report comparing prices online, in part because they have far fewer online grocery resources to which they can refer.

Brick-and-mortar grocers that opt not to expand into e-commerce can still connect with mom in some digital capacity, which might include anything from expanding

loyalty programs to offering credit cards or even mobile apps.

Connecting to mom through tools like these, particularly social media, can help demonstrate that you “get” who she is and how she shops. By positioning yourself as a partner in mom’s parenting journey, you can establish the trust, confidence and loyalty that will keep mom coming back for her baby care needs.

Mom wants to engage with retailers

Signed up for a store’s shopper loyalty card

Signed up to receive email coupons/sales alerts from a retailer

Downloaded a specific retailer’s mobile app

Registered myself for baby gifts at a retailer

Signed up to receive catalogues/printed coupons in the mail from a retailer

Have a credit card issued by a specific retailer

66% 74%

71% 65%

—— 54%

52% 53%

60% 50%

29% 38%

20112015



42

Letterhead08



EXAMPLES



Last trip in grocery channel Last trip in mass channel

Infant formula shopping plans

Infant formula trip typesTrip to specifically purchase

infant formula

Routine shopping trip to buy items for the next few days

Major stock-up trip for groceries or products for my child

A “fill-in” trip for a few groceries or products for my child

A shopping trip to take advantage of a special offer or low prices

4% 30%32% 28%16% 12%17% 12%

6% 10%

When it comes to infant formula, mom’s purchases are rarely spontaneous, and 90 percent of the time she buys the brand she intended to buy. She

knows when she needs to re-stock and she plans for it, making infant formula a top trip driver. In fact, it is the TOP trip driver among formula buyers.

In-store infant formula



I planned to shop for infant formula

before I went to the store95%

90% Looking to

buy my usual formula

FOCUS

FOCUS:

MJBB 0515 PG 18-20 In-Store Infant Formula.indd 19 7/22/15 12:04 PM

42

Letterhead08



EXAMPLES



69%

Grocery: Frequency of formula purchase

Past 30-day conversion among infant formula shoppers

2015 Mass Merch Stores (n=503)

2015 Grocery Stores (n=503)

Latest in-store infant formula trends Formula purchases are more planned than ever—95% in 2015 Moms more likely to be purchasing formula weekly in 2015, with less pantry loading than in 2011

Mom is spending more time at the formula shelf: Comparing prices at shelf Reading labels more often Comparing prices across stores every time she purchases formula 10

20

30

40

50

2008 2011 2015 Weekly Bi-weekly 3 weeks or longer



Shopped for any products in P30 days

Purchased infant

formula in P30 days

88% 79%

34%

FOCUS

Among infant formula shoppers, grocery currently lags behind mass merchandisers in conversion.


42

Letterhead08



EXAMPLES



Factors most critical to mom importance ratings: Infant formula shelf (% rating top box 7 out of 7)



Moms who compared prices across retailers before their shopping trips

Moms cite several other factors that determine where they shop for in-store infant formula, but paramount is the retailer having her baby’s specific formula brand/SKU in stock. Providing mom with an easy-to-navigate shelf, great deals or lower prices will be a wasted effort if mom is not confident that she can get exactly the formula her baby needs.

Price plays a big role in mom’s infant formula shopping decisions, and she frequently compares prices across stores to find the best deal on formula, relying on a wide range of resources including digital media like retailer websites and traditional media such as printed circulars.

Brick-and-mortar grocers can use these resources to alert budget-minded moms about formula deals. Grocery retailers may also want to consider leveraging price-com-parison apps and other smartphone tools as well as loyal-ty programs and cards, all of which fit into moms’ formula deal-hunting arsenals.

Shelf selection is another key driver for infant formula shoppers. Today’s mom knows what she wants, which is why infant formula shoppers are spending more time comparing prices and reading labels at the shelf than they used to. By offering a wide range of brands and formu-lations, grocers can make sure mom finds the perfect formula for baby.

But stock is just as important as selection. If mom’s preferred formula brand isn’t on the shelves, she’ll likely leave the store to find it elsewhere—often without even stopping to ask a sales clerk whether it’s in stock. This is a particular risk for grocery, where moms are much less likely to ask for assistance in an out-of-stock situation.

Store’s websiteOnline retailer sites

Retailer circulars sent in the mailOnline coupon/sales websites

Newspaper advertisementsEmail fliers sent by retailers

Price-comparison appOther

28%27%34%35%28%12%

9%7%

FOCUS

Brands I want72%

Well-stocked/has what I came for69%

Lower prices/good value on

formula63%

Enough on shelf to stock up

56%

Great sales/promotions on

formula55%

Shelf is organized for

quick grab & go52%

Wide variety of pack sizes

39%

Variety of formulas for

feeding issues39%

Offers organic/holistic formula

brands20%



42

Letterhead08



EXAMPLES

WIN

IN-S

TO

RE

ACTIVATION GUIDE:


SHOPPER INSIGHTS IN ACTION

Moms want to digitally connect before they get to the store

Since almost 90% of baby category shopping trips begin online, developing a digital presence is critical.

Regardless of whether your store has e-com-merce capabilities, it’s important to be able to interact with shoppers beyond traditional print media in order to alert them to in-store offerings, promotions and services.

Consider a digital version of your circular, so-cial media, texts, email, an app or other forms of digital communication.

Moms want to simplify their shopping experience

Grocery has the opportunity to convert more of the moms who are already in the store every week but purchase baby items elsewhere. Keep your baby aisle top of mind for your shoppers by raising visibility. Consider a permanent baby end-cap to entice moms to browse the aisle. Once mom is in your baby aisle, clearly marked categories with logical adjacencies help her to efficiently navigate the aisle. Additionally, think about adding a local delivery service option, to make it easier for mom to get her purchases home.

Moms want to successfully purchase the baby products they came for

Shipping time is a key barrier to online baby category purchase, so brick-and-mortar’s greatest advantage is immediate access and purchase. Half of moms will leave your store if they cannot get the exact SKUs they came for. Become a reliable baby care resource to mom: Leverage all available data to get the

optimal SKU mix on shelf. Minimize out-of-stock.

Consider expanding category and brand offerings via online-only SKUs. Limited in-store space is a barrier to meeting every mom’s needs, but leveraging e-commerce can provide a solution. Consider expanding category and brand offerings via online-only SKUs.

Moms want a variety of products they can touch and try in-person

Despite the advantages of comparing product benefits/ingredients online, few moms will purchase a baby product for the first time without interacting with it at shelf. Leverage the power of touch by offering cate-gory-entry SKUs, navigational signage, well-stocked shelves or even trial-size products.


Thank you for investing the time to read this report. Mead Johnson is committed to our retail partners’ success, and we hope you have found this special report to be compelling and useful. Gaining a better understanding of how to meet the needs of the Millennial shopper will be critical to your future success.

Molly Johnson Goes Shopping proprietary shopper research provides the foundation for this report, and Mead Johnson representatives would like to share additional valuable insights with our retail partners.

Contact your MJN Account Team for: More shopper insights and infant formula category best practices

Information about the Enfamil portfolio of products

Up-to-date product ingredient lists and label details

Category trends, product information and consumer insights

Branded and unbranded baby care and lifestyle content (including video)

Shopper sign-up information for MJN’s Enfamil Family Beginnings® program

42

Letterhead08



EXAMPLES


For more information, contact Mead Johnson Nutrition

Call your account manager Call 1-800-318-7269 Email: [email protected]

PARTNER WITH MEAD JOHNSON ACTIVATION GUIDE:



building healthy tomorrows For over 110 years, Mead Johnson Nutrition has been

advancing the science of pediatric nutrition in our mission to nourish the world’s children for the best start in life.

Mead Johnson’s Retail Sales Organization is committed to keeping you on top of the trends in baby care, particularly infant formula, by delivering

timely and relevant information that can help drive your business.

www.Enfamil.com

For more information, contact Mead Johnson Nutrition

Call your account manager Call 1-800-318-7269 Email: [email protected]

Cover and BC.indd 24 7/22/15 11:53 AM

MJN Progressive Grocer Baby Book Final

Documents

Transcript of MJN Progressive Grocer Baby Book Final