Give Mom What She Wants
Store brand product development within the baby care segment must consider the ingredients and features mom deems most critical.
Retailers and manufacturers peddling products within the baby care space have had a tough go of it lately. Data from Chicago-based market research firm SymphonyIRI group show fairly steep unit sales declines here for almost all major total baby care categories (within U.S. supermarket, drugstore and mass merchandise channels, excluding Walmart) during the 52 weeks ending Jan. 22. (See the table, p. 42.)
Although the troublesome economic environment could be forcing some parents to pull back a bit on purchases of baby care items, it's likely that the still-declining birthrate is contributing more significantly to the declines. According to the U.S. Census Bureau, the birthrate fell from 14.4 births per 1,000 people in 2000 to an estimated 13.8 by 2011. (Back in 1960, the birthrate was 23.7!)
The consumer base might not be growing here, but retailers still will find opportunities to grab sales from the national brands, as well as from retailer competitors.
Do consider simple ingredients that emphasize nutritional value in the development of store brand baby foods/ snacks.
What moms want
Moms, of course, still make most of the purchase decisions for the tiniest of consumers. So product development that takes their concerns to heart is critical.
On the food side, moms want to avoid any perceived negatives. For example, Heather Schoenrock, CEO of Roswell, Ga.-based Jack's Harvest, points to concerns over high arsenic levels recently uncovered in some baby formula, food and cereal bars containing brown rice syrup. And although it certainly is not as scary as arsenic-containing fare, white rice cereal is losing its clout as a first food for babies.
"I think that we are going to see a trend toward very simple ingredient lists on baby products with a move away from fillers and additives," she adds, "even when those fillers/additives are organic. New grains like quinoa may become the staples of a healthy first food for baby."
Moms also want the best for their babies in terms of nutritional value. Although new pouch packaging formats are handy, Schoenrock admits, the food inside must be processed at high temperatures like its jarred counterparts.
"Frozen is an emerging trend, as it allows for shelf life without adding preservatives or requiring extensive processing," she notes. "Frozen is usually found in cubes or tubs, which reduce waste. It also allows moms to feed their baby the closest thing to homemade baby food without actually having to pull out the blender."
Any baby food packaging should be BPA-free, recyclable and minimal, Schoenrock adds.
Moms are just as discriminating when it comes to baby diapers. Most important to them are good leakage protection and fit.
"As countless consumer studies prove, these are the product features and benefits that drive purchase intent," says Chris Ferdock, vice president of marketing for Associated Hygienic Products (AHP), Duluth, Ga. "It is critical private label manufacturers focus on improving leakage protection and fit within their product design rather than less important nonperforming elements of a baby diaper that impact style — such as printed graphics or the colorization of raw materials."
Ferdock notes that the national brands recently implemented an industrywide packaging down-count within the diaper segment that has resulted in smaller cube counts and even some transitioning back to poly bags. But the larger club packs are still gaining market share.
"At AHP, we've developed some unique packaging options for our retailer partners that offer consumer benefits in the form of portability and dispensing that should help position our brands in a leadership role," he says.
Going hand in hand with diapers are baby wipes — and among the trends here are portable packs for convenient away-from-home use, says Cathie Petak, senior product manager, Rockline Industries, Sheboygan, Wis. Adding to the convenience quotient for parents are flip-lid features on such packs.
Don't focus more on color and style than performance and fit when it comes to store brand diapers.
Convince her to buy
The right ingredients or features are important, but moms — especially first-timers — still can be hesitant to test the store brand waters. In fact, a recently published national study reveals that today's moms feel overwhelming pressure to overspend on products for their babies even as they cut back in nearly every other area of their lives to cope with challenging economic times.
Conducted by Kelton Research, New York, the "'Brand' New Mom" survey-based study says new moms often make decisions based on guilt instead of practicality, even when it is clearly proven that a high-profile brand offers no clear benefits over less-expensive options such as store brands. A major reason for the pressure is the overwhelming, often-confusing and anxiety-producing array of advertising and promotional messages to which new moms are exposed.
According to the study, more than half (52 percent) of moms are willing to buy store brand products for the household, yet just three in ten (30 percent) will buy store brand products for their babies. And less than a quarter (23 percent) of moms are open to buying a store brand infant formula.
But retailers could take a number of steps to educate mom and sway her to a sale. Ferdock says that developing an appropriate consumer message that speaks to mom's hesitancy to try store brand diapers is critical.
"Our marketing team has developed some unique communication campaigns in an attempt to gain product trial," he explains. "We call it our 'first impressions' program, and it is a comprehensive tactical plan to address trial and continuity with first-time mothers."
Schoenrock also believes social media — an extension of traditional "word of mouth" advertising — can be particularly effective in reaching today's savvy moms.
"I think that stores need to be transparent about who is making their private label products, as these moms are very well educated about what they are buying and want to make sure it is of the highest quality made by a reputable company," she adds.
Ferdock notes that AHP assembled its own social media department to support retailer efforts here.
"We've become a trusted source by offering guidance in the social media platform," he says.
Coupons help spur trial, too, Schoenrock says, but a complete baby care assortment also is important to gain repeat sales.
"If parents can't buy diapers, formula, bottles, baby lotions, baby snacks and the like at your store," she says, "they will go to a retailer that has all their baby needs covered."
Smart merchandising also helps. Petak notes that dual-placement — via clips strips, gravity-fed displays and more — could help to drive store brand baby wipe usage for hand and face cleanup in addition to changing time.
And Ferdock says a number of retailers have started to merchandise store brand diapers in in-aisle POP and free-standing displays or end caps.
"In every case, this merchandising support has resulted in market share gain by attracting both current and new users," he stresses. "We always recommend supplementing any in-store merchandising efforts with direct-to-consumer marketing campaign focused on social media."
Do use social media to reach and educate moms about store brand baby care products.
Don't offer a less-than-complete store brand baby care assortment.
Look what's new
Wild Harvest Organic Wheat Teething Biscuits from Minneapolis-based Supervalu are said to be for babies age 9 months and older. They are designed and shaped to exercise the jaws, and feature hardness to satisfy teething needs. The kosher-certified biscuits are an excellent source of calcium and are made with no genetically engineered ingredients, artificial preservatives, manufactured enhancers or high-fructose corn syrup. They retail in a 6-oz. recyclable flexible package.
New from Cincinnati-based Kroger are Comforts for Baby Touch of Nature Chlorine Free Diapers. The diapers are said to feature a plant-based liner and outer cover, stretch side panels for a comfortable fit, and chlorine-free materials with natural absorbency. The diapers come in a variety of sizes; package count varies by size. The packaging features both English and Spanish languages.
Source: Mintel's Global New Products Database
