Kantar Worldpanel - www.kantarworldpanel.com

Out of Home Consumption: What So Special About It?

14/10/2016

In a hot sunny day, an ice cream is surely a good idea to refresh your body and mind from the heat. Luckily, minimarkets are everywhere near us. Just stroll to one of the minimarket you find, get an ice cream, and eat it right away. Voila, ice cream once again saves your day!

Case above shows a condition where we buy a food or beverage FMCG product and consume it outside of our homes. That condition is called out of home consumption.

As minimarket and mom & pops are everywhere in Urban Indonesia area, out of home consumption are happening all the time. Thirsty? Grab a bottle of mineral water from a mom & pops stall across the street. Hungry? Get a bag of potato chips from a minimarket beside your office.

Kantar Worldpanel Indonesia data show that for certain food and beverage categories, out of home consumption accounts for quite big chunk of volume (unit) sales, making out of home consumption as a consumption form that can’t be ignored.

The Other Part of the Puzzle Is Outside the House

From isotonic drink to ice cream, out of home consumption plays an important role to a category or a brand. In home consumption only is not enough. With looking through out of home consumption, along with in home consumption, the whole category sales performance can be seen..

For some categories, out of home consumption even accounts until half (or at least nearly half) of the whole volume (unit) sales. Based on Kantar Worldpanel Q2 2016 out of home annual data, in isotonic drink category, out of home consumption accounts until 53% of isotonic volume sales. Out of Home consumption also accounts big portion in categories like RTD coffee (50%), chewing gum (49%), potato snacks (49%), soft drink (45%), chocolate (42%), and several others.

Everybody Loves Chocolate, But Who Loves Chocolate more?

Out of Home consumption enables us to reveal one important thing: the end user profile. Some interesting things can be found by looking at the end user profile. The fact is different consumers groups love to consume different categories.
An interesting example can be found in chocolate category. So maybe it’s true that everybody loves chocolate, but who loves chocolate more?

Based on our annual Q2 2016 data, kids and teens are the bigger consumer of chocolate. Kids contribute 48.6% of all chocolate volume (unit) share, followed by teens that contribute 29.8%, with countline pack still becomes the favorite pack size for out of home consumption. How about gender? As predicted, 55.4% of chocolate volume sales come from female buyers.

Different Strategy

Having a differentiated strategy for the product portfolio management for any manufacturer is a must, as brands need to capture different moment of truth whether they are targeting in home usage or out of home usage. Consumers are not linear in the way they buy and consume products, and very often we see that not only the pack size or pack type they buy is different between in home and out of home, but also the brand they pick. Need of convenience, showing status and pleasure (impulsive choice) are the three drivers we mainly see for out of home purchase, while in-home purchase will be more rational and price sensitive: the purchase will often be based on deeper need fulfillment (product need vs price positioning), consumer education (I know what is good for me and my family). As such it is clear that the brand formulation (brand positioning, product feature and price) as well as the activation mechanisms (promotions types and communication messages) should be totally different between in home and out of home while keeping a level of consistency if manufacturer as using the same brand to address these two sides of the consumer life.

Contact us for further information on our out of home panel data.

Out of Home Consumption: What So Special About It?

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Fanny Murhayati
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