Differences in retailer interfaces in assortment planning and communication strategies for homogenized baby food products

Abstract

This research analyzed the assortment size and depth, marketing characteristics, price policies and communication strategies in large-retail chains and online distributions for homogenized baby food. Comparisons of the assortment composition were made considering defined product categories based on the composition formula, specialty product, claims, product origin and packaging material. Prices differences were also assessed comparing the different retailer formats (supermarket, hypermarket, convenience store and discount). The main findings highlighted significant differences in the assortment planning decisions. In particular, direct sales seem to be more oriented towards providing a wide range of products together with more information on products healthiness and origin; online sales, on the other hand, focus its assortment planning decision on supplying products with high added value in composition and price: in fact, the extra communication of additional information regarding the product nutritional characteristics and certifications, as well as expert advice, characterized the majority of the explored websites. About the promotion, in the physical stores, more convenience packs have been used, while more discounts were applied directly to the online sale price. This research provides concrete tools to marketing managers to improve the planning and communication strategies of infant formula of homogenized products for a differentiated and successful sales policy. At the same time, producers can make a more informed and dynamic choice on the distribution chain that can best match the company's offer.