The four category types in food retailing and what demands they place on products and packaging
Food retail stores are usually divided into four categories, which differ greatly in terms of their characteristics, importance and market share. In the following, we will discuss the characteristics of each type and explain the demands they place on product and packaging design, as well as the opportunities they present.
Profiling category: the flagship of the store
This is what characterizes this category
The profiling category is always the most important area in the store. Above all, it helps the retailer stand out from the competition. In this sense, this category is the greatest strength, the best argument for the respective store, because it ultimately offers the customer the greatest benefit.
In order to make the area the flagship of the store, it is given the necessary resources: a larger sales area, an enormous range of products and a consumer-friendly price-performance ratio.
A good example of a profiling category is the meat, sausage and cheese counters at Rewe and Edeka. This is how the two stores set themselves apart from classic discounters.
Requirements for products and packaging
It is crucial to constantly present customers with exciting new products, especially to keep shopping enthusiasts happy in the long term. Innovative product and packaging designs therefore have the best chances of being noticed and achieving the desired success – for the individual brands and for the market.
Essential category: the indispensable product groups
What characterizes this category
The mandatory category is composed of products that customers buy regularly and in larger quantities because they play an essential role in everyday life. Consumers expect retailers to have such “standard items” available in stores.
Although it is fundamentally important, market operators allocate fewer resources to this category. The idea or goal is to generate margins from the large number of items sold.
Examples of products in the duty category include basic foodstuffs such as flour and eggs.
Requirements for products and packaging
Consumers primarily associate the duty category with rationality due to its characteristics. This means that they are very price-conscious when it comes to the products in this area, according to the motto: “The items should serve their purpose and be as inexpensive as possible.” Consequently, brands do not have much room for innovation.
Nevertheless, the mandatory category offers the opportunity for beautifully designed products. Since customers have lower expectations in terms of the appearance and aesthetics of the items, they are easily (and gladly) positively surprised.
Impulse and seasonal category: the tempting zone
This is what characterizes this category
The impulse and seasonal category includes product groups and items that are designed to encourage or even seduce consumers into making unplanned, spontaneous purchases. In most food retail stores, this area accounts for about 15 to 20 percent of sales.
Confectionery is a prime example of an impulse category item. Seasonal items include, for example, dyed eggs at Easter and roast goose at Christmas time.
Requirements for products and packaging
For customers, the impulse and seasonal category is clearly characterized by curiosity and the desire to try new things. Accordingly, brands in these product groups can and should be innovative when designing their products and think “out of the box,” so to speak.
The typical impulse shopper loves to discover new designs that appeal to his sense of aesthetics or humor while strolling through the supermarket. Attractive product and packaging designs can be used to specifically enhance the urge to buy.
Supplement and convenience category: the practical and aesthetic accessories
This is what characterizes this category
The supplementary and convenience category consists of items that customers do not expect to find in the store. Nevertheless, such products are often an integral part of the store, offering added value. They round off the range and can generate additional sales.
Examples of items in the supplement and convenience category are scissors and knives. These accessories allow consumers to open their food or prepare it. Napkins and candles also belong in this category. They allow consumers to arrange their food in a stylish and tasteful way.
Requirements for products and packaging
In general, products in the supplement and convenience category attract less attention because they are only intended to round off the range. However, this does not mean that they do not open up opportunities for innovation. On the contrary: precisely because price tends to play a subordinate role in this area, brands can score points with novel, extraordinary items and packaging.
Conclusion: 4 categories in food retailing with many design options
Of course, the specific characteristics of the associated category in food retailing must always be taken into account when designing products and packaging. However, if we consider the requirements for each area again, we come to the conclusion that, in most cases, the courage to be creative and innovative has an excellent chance of being rewarded and bringing the desired success.
Innovative items and packaging are particularly important in the profiling, impulse and seasonal categories. They can also enhance the supplementary and convenience category and increase sales in this area. Last but not least, new design variants for products in the mandatory category have the potential to positively surprise customers and thus strengthen their loyalty to the respective brand and to the market.