What Matters to Packaged Ice Consumers and Retailers?

What Matters to Packaged Ice
Consumers and Retailers?

Modern Ice Equipment & Supply

Leer did a market study several years ago to find out what influences consumers when purchasing a bag of ice. Some of the results were expected and some were surprising. All of them provide an opportunity for increased sales and profits for the packaged ice manufacturer and the retailers.

The study surveyed both consumers and retailers to gain insight from all potential “customers” of packaged ice.

Insight	Opportunity
High volume / frequency purchases account for 31% of packaged ice consumers, but they are 70% of total ice purchases. They are more likely to: Use a convenience store to purchase ice Be influenced by an outdoor merchandiser Take all their business elsewhere if they have a poor packaged ice experience	Add outdoor merchandisers to locations (or additional merchandisers)
Safety, hygiene, and cleanliness of ice are driving factors in consumers’ purchase decisions. The “Ice is Food” campaign has not reached the consumer level at all.	Take credit for the quality of your product. Educate retailers and consumers to increase sales and develop brand loyalty.
The decision maker at the retailer is extremely analytical and ROI-driven regarding making versus purchasing ice. Energy efficiency is extremely important to store owners, but most do not know what they are paying to run a merchandiser.	Educate the retailer on new technologies, how they impact the bottom line (energy savings, inventory / temperature monitoring, vending options)

Insight

Opportunity

High volume / frequency purchases account for 31% of packaged ice consumers, but they are 70% of total ice purchases. They are more likely to:

Use a convenience store to purchase ice
Be influenced by an outdoor merchandiser
Take all their business elsewhere if they have a poor packaged ice experience

Add outdoor merchandisers to locations (or additional merchandisers)

Safety, hygiene, and cleanliness of ice are driving factors in consumers’ purchase decisions. The “Ice is Food” campaign has not reached the consumer level at all.

Take credit for the quality of your product. Educate retailers and consumers to increase sales and develop brand loyalty.

The decision maker at the retailer is extremely analytical and ROI-driven regarding making versus purchasing ice. Energy efficiency is extremely important to store owners, but most do not know what they are paying to run a merchandiser.

Educate the retailer on new technologies, how they impact the bottom line (energy savings, inventory / temperature monitoring, vending options)

Following is specific information from the study that could help you determine how you can collaborate with your retailers to sell more ice:

Typical Usage:

Purpose	Male	Female	Age 18-44	Age 45+	1 Bag	2-4 Bags	5+ Bags
Drinks	87%	86%	88%	85%	82%	83%	95%
Keep Items Cool	84%	84%	85%	83%	82%	83%	86%
Blended Ice Drinks	57%	58%	65%	49%	45%	55%	69%
Ice Cream	18%	22%	19%	21%	14%	20%	23%
Other	3%	3%	2%	5%	3%	2%	5%

Consumer Purchase Preference – Merchandiser Location:

70% of consumers preferred to purchase from merchandiser inside store because:

More convenient
Cleaner
Safer – Less chance for tampering
Buying other items
It’s cooler inside, so ice is more frozen
Better quality
Seeing the merchandiser reminds them to buy ice

30% preferred an outside merchandiser due to:

It’s closer to he car / cooler
More convenient
They buy from a stand-alone machine

Issues Consumers Experienced Buying Ice:

Ice melted together – needed to be broken up
Bag did not have a handle for carrying
Price was too high
Bag was not durable and broke
Ice was not in-stock
bag was not properly sealed
There was no merchandisers inside the store
Bag was not appropriate size for needs
Exterior of the merchandiser was not clean
Taste of ice was poor / not desirable
Ice did not appear to be “food grade”
There was not merchandiser outside the store
Interior of the merchandiser was not clean

Where Retailers Get Their Information about Ice / Vendors / Storage Options:

Ice Distributor
Ice Manufacturer
Ice Delivery Personnel
Industry Resource (NACS)
Ice Merchandiser Manufacturers
Online
Other Industry Resource (Not-NACS)

Retailers with Merchandisers & Placement of Merchandisers:

75% of Convenience Stores have a Merchandiser

51% have a Merchandiser Inside the Store
68% have a Merchandiser Outside the Store

74% of Grocery Stores have a Merchandiser

95% have a Merchandiser Inside the Store
21% have a Merchandiser Outside the Store

Top Five Reasons Retailers Place Merchandiser Inside:

Easier to maintain, keep clean
Easier to restock
Easier to review inventory levels
Helps sell other items inside the store
Concerns about ice theft

Why Retailers Place Merchandiser Outside:

More space for merchandiser
Customers see it outside – sells more ice
Easier to restock
Helps sell other items inside the store
Easier to maintain, keep clean

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