Consumers love Limited Time Offers (LTOs) in confectionery, and according to a new survey by Oterra, naturally-colored LTOs are a great way to create urgency, drive sales, capitalize on seasonal trends and generate buzz.
“LTOs tap into novelty, scarcity and excitement and are a powerful tool for confectionery brands wanting to stand out on the shelf,” says Head of Marketing for Oterra, Vibeke Haislund.
Oterra teamed up with GlobalData to survey more than 2,000 consumers across the US, Brazil, Mexico, UK, and Germany to find out what drives consumer preferences.
Nearly half of confectionery shoppers had tried LTO confectionery with the prime driver being ‘to treat themselves’. The survey showed that consumer awareness in LTOs was strong across all markets, with Brazil leading, followed by the UK, US, Mexico, and Germany.
“We found that natural colorings are a key factor in purchase decisions, with many shoppers claiming it as an important factor. They were also consistently more likely to purchase a limited edition product if it used natural colorings, underpinning its clear positive purchase influence across all markets,” adds Vibeke Haislund.
Shoppers aged between 25 and 44 were the most regular purchasers of LTOs, with around 80% buying for themselves, 54% for partners or spouse and 50% for their children.
Natural is key
Around 70% of respondents said that they were more likely to buy when natural colors are used, and 95% said that natural colors in a product was important to them.
While trying new tastes was important, seasonal themes and eye-catching packaging were other external factors that encouraged trying new LTOs. But color sealed the deal for many consumers, linking flavors to themes.
When asked what colors are most appealing in LTO confectionery, the answers varied between countries. There was a strong preference in the US for patriotic blue and red colors while Brazil, showed a preference for more rainbow and multicolored products.
Overwhelmingly the desire was for bright and bold shades with only two exceptions: Pink, where there was a slight preference for paler shades, and brown, where there was less interest overall, but a preference for paler shades
“LTOs are a very powerful strategy to drive trial, to improve brand perception, and to command a price premium,” says Will Blackett, Consulting Director at GlobalData.
“Natural colors are a significant purchase driver. Increasingly, there’s a demand towards natural. Consumers are seeking out natural colorings in products and LTOs are a great way for brands to stay relevant, to be on consumer’s side, but ultimately to command a price premium because consumers are saying they are willing to pay more for natural colors,” he adds.
