Home' Convenience and Impulse Retailing : June July 2014 Contents 9
June / July 2014 | C&I | www.c-store.com.au
for complacency. According to data from
market research firm Euromonitor, chewing
gum sales in the USA have dipped by 11%
since peaking in 2009, and are expected to
fall by another 4% over the next 5 years.
There are a number of theories to what is
going on in the US. These include consumer
reluctance to spend in a struggling economy
and the failure of marketing to sufficiently
highlight the cavity-fighting benefits of gum.
Another theor y is that consumers simply
have more to chew on as competing products
such as designer mints and fr uit chews enter
the market and offer alternative ways to get
a sugar fix or battle bad breath and anxiety.
Australians are still chewing gum - they
just aren’t chewing the kinds they used
to. The gum category contributes to the
bottom line in convenience stores and
so, understanding the factors affecting
purchase and sales trends is impor tant.
It’s not hard to see why gum has been such a
perfect fit with convenience. Some 90% of all gum
sales are impulse purchases and it is a product
that takes up relatively little space, ideal for the
space-challenged convenience environment.
Gum is usually bought by busy people who
are out and about with the biggest purchasing
group being 18-35 year olds. T his is the classic
convenience demographic. While the gum
chewing habit is most strongly associated with
Americans, Wrigley says 50% of Australians
regularly chew gum, and we average over
100 servings of gum per person per year.
Gum consumers are also proven purchasers
of other products while in store. According
to recent him! data, 23% of petrol and
convenience shoppers buy confectioner y –
including gum – with fuel, 22% do so with
a cold drink, and 10% with a hot drink.
In order to maximise sales, it is vital that stores
understand consumers purchasing motivations.
Gum customers in convenience are generally
impulse shoppers purchasing for immediate
consumption. In contrast, gum shoppers in
grocer y may be buying for immediate
consumption or to stock up. For this reason,
Wrigley, like the other manufacturers, has
larger gum pack formats in supermarkets
to accommodate planned purchases.
For convenience, gum consumption is
anchored in ‘Out Of Home’, and therefore
it’s ver y important that stores have pack
formats that allow por tability. Wrigley has
gum in a number of different formats, from
a 10 piece pack to a 46 piece bottle pack
(which is perfect for the car and desk).
There are multiple reasons why people buy
gum. These range from freshening and
oral care to the simple pleasure of chewing
or just the fact that it has become a habit.
These reasons to chew apparently evolve
with life stage – from fun when young, to
personal care/presentation as an adult.
Convenience stores should offer a range
of gum products appealing to the various
consumer tastes and needs. With sugar free
now dominating gum sales, this is an area that
needs to be well catered for in store. T he ongoing
trend towards customers looking for functional
products - those that are perceived to meet a
specific purpose such as breath freshness, or
dental care -also demands retailers attention.
A recent repor t from market researcher
Euromonitor International revealed that, while
consumers of gum have traditionally been
children and teenagers, this has changed
since the 1980s to the extent that adults are
now the primary target
demographic of most
brands. It cited the amazing
success of Wrigley’s
Extra, which is now by
far the most successful
gum brand in Australia.
Wrigley holds a 95% value
share of chewing gum sales
in this country and has
other brands which appeal
to specific demographics,
such as the 5 brand which
is aimed at teenagers, and
Juicy Fr uit which seeks to
engage children. However,
it is the Extra brand - with
its sub-brands of Extra
Regular, Extra Active and
Extra White - all of which
target adults that has been
leading the way. Research
shows that adult consumers
are increasingly choosing
Data courtesy The Wrigley Company, as at 12 May 2014
National Grocery Scan
Total Gum — Australia
50% of Australians regularly
chew gum, averaging over 100 servings
per person per year
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