TABS ANALYTICS BLOG

TABS Analytics Finds eCommerce Maintains Top Spot in Vitamin Category

Overall softening in vitamin sales due to fewer heavy buyers may spell trouble for growth ahead; Walmart, Target, Walgreens, Rite Aid, and Sam’s slip


 

Shelton, Conn. – May 25, 2016 – The online retail channel is the top outlet for sales of vitamin and mineral and supplements (VMS), hitting $2 billion and surpassing Walmart’s vitamin sales of $1.7 billion in 2016, according to the 2016 TABS Analytics Vitamin and Minerals Supplements study. Vitamin specialty, which includes Vitamin Shoppe and GNC, ($1.5 billion); Costco ($1.3 billion); and CVS ($1.2 billion) round out the next three largest outlets for annual VMS sales. TABS found that VMS sales were up three percent compared to 2015 and were being driven primarily by increases in pricing. TABS Analytics estimates the annual U.S. VMS retail market to be $12.8 billion.

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Tale of Two E's - Vitamin Infographic

 

TABS Analytics just completed its Vitamin Study in May 2016. The infographic below highlights some of the key findings in the study, including:

  • Trends in online vitamin sales
  • What product types are on the rise
  • And what product types are on the decline

Click here to view as a PDF.

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Over 20 Percent of Baby Product Purchases are Done Online

 

 

Baby Category is Big Business

TABS Analytics completed its first Baby and Infant Needs Study in March 2016 to better understand buying and outlet trends in the $30 billion baby category. The survey queried 2000 adults (18-75) and covered five baby segments, and 28 different types within the segments:

  • Baby seat and safety products (i.e. car seats, strollers, baby monitoring devices)
  • Baby feeding needs (i.e. cups, bottles, plates)
  • Diapers and accessories
  • Baby formula, food and drinks
  • Baby care (i.e. powders, ointments, lotions) 

TABS has developed a reliable survey methodology to analyze hard-to-get data, such as non-tracked sales channels. Data in these channels is often incomplete, inconsistent or both. One particularly difficult channel to analyze and model is online sales. Specialty outlets for baby products (like Toys"R"Us) can also be challenging. Using our proprietary algorithms, we’ve found a very reliable way to track both online and specialty channel sales. Importantly, we corroborate our survey results with panel and syndicated data.

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Kurt Jetta Wells Fargo Conference Call

 

 

Wells Fargo Trade Promotion Insights

 

This article is a summary of one that was published by Wells Fargo Securities, LLC in an April 2016 Food Equity Research Report.

 

Reduced trade promotion is a leading cause of soft CPG sales

Causation has been found to exist between trade promotion and retail sales, benefitting the baseline and driving incremental purchases. What’s seemingly a straightforward approach in appealing to consumers’ fundamental need for deals has been overcome by an increasing focus on full revenue sales by manufacturers. The reduction in trade promotion has been associated with a fall-off of incremental sales and softer baselines. Net, it may be in the manufacturer’s best interest to promote morerather than less, given the positive correlation with sales, the ability for trade promo to act as a barrier to entry, and to preserve share of shelf as a cost of doing business with retailers.

From the retailer’s perspective, the shift to loyalty cards has been met with muted incremental sales on deal. By contrast, the traditional approaches such as “everyday low prices” (EDLP) and circulars remain most effective in driving conversion. Dr. Jetta advocates for a renewed emphasis on traditional promotions and often, a larger promo spend rate, as helpful to end the five-year sales malaise having affected the consumables industry.

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High Income Buyers Affect Target, Wal-Mart in Baby Products Category

 

TABS Analytics completed its Baby and Infant Care Trends Study in March 2016. The infographic below highlights some of the key findings the study:

  • On average, high income purchasers bought twice as many baby product types as low income purchasers.

  • This income skew is allowing Target to close in on Wal-Mart in the baby products category.

Click here to view as a PDF.

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How Loyalty Card Programs Frustrate Consumers

 

 At TABS Analytics, we’ve done extensive research on retail and consumer loyalty card programs and how they can damage the promotional efforts of both manufacturers and retailers if not correctly managed. But what gets lost in the shuffle are such programs’ effect on customers. Many Loyalty card programs are consumer-unfriendly for a number of reasons.

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How Consumer Surveys Can Reveal Hidden Opportunities

 

 

 

 

Consumer Surveys and Their Metrics

In the previous parts of this series, we have covered both syndicated data as well as your own panel data. In this final report, we’ll conclude with quality metrics that you can obtain by surveying your customers.

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20% of Purchases in the Baby Products Market Are Made Online

Amazon, Walmart and Target make up around 75 percent of online sales; households without young children account for approximately 40 percent of buyers 

 

 

Shelton, Conn. – TABS Analytics announced that the company’s 2016 Baby Products U.S. Market study found that online sales account for 20 percent of all sales in the $30 billion baby products market. The online share of baby products sales is 10 times higher than the online share consumables sales for consumer packaged goods as measured by TABS in its Third Annual Consumer Value Study of Consumables. Amazon, Walmart.com and Target.com lead all online retailers representing 75 percent of online baby product sales.

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Online Baby Products Drive Category Sales - Infographic

 

TABS Analytics just completed its Baby and Infant Care Trends Study in March 2016. The infographic below highlights some of the key findings the study, including:

  • Online baby products sales accounts for about 20% of baby category purchases
  • Amazon, Wal-Mart and Target account for approximately 75% of online purchases
  • Higher-priced products are purchased more frequently online compared to lower-priced products

Click here to view as a PDF.

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The Most Useful CPG Household Panel Data Metrics You’ve Never Heard Of

 

 

 

Household Panel Data Metrics  

In the last several posts, we surveyed the innovative things we can do with the Nielsen, IRI, SPINS and other syndicated data that you’ve been buying for years. Now it’s time to turn inward and look at household panel data.

Few CPG companies extensively mine their own panel data, instead relying on syndicated data almost exclusively. These companies focus on the fact that syndicated data gives them a view of the entire market, and not just their own shoppers. But, when panel data is used, it’s often too generic (buyer count, purchase frequency, etc.), to be useful. There’s rarely a story or strategic information on which they can act.

Successfully wielding panel data requires a core understanding of the basics and a certain amount of creativity. Let’s begin with loyalty shoppers.

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