Take the lead! Explore opportunities potential!

Transcription

1 Take the lead! Explore opportunities potential! Daniela Petkova, Sandanski, May 31st June1st, 2012

2 Have you met these people?

3 2011 a year of sustaining 2010 economy levels despite the European turmoil. Real GDP (in %, BGN) GD P +1.7% Inflation Rate Infla tion +2.0% Source: National Statistical Institute-Bulgaria

4 2011: High unemployment yet growing wages Une mplo ymen t Rate % Monthly Net Wag es Unemployment Rate (%) Average net wages, in BGN 698 BGN Quarterly Source: National Statistical Institute-Bulgaria

5 Consumer Confidence Index* Dynamic Recently there has been some recovery in Consumer Confidence but consumers are still not beginning to be more positive about the economic situation *Based on a conjunctive Index score across past / next 12 months HH financial situation, past / next 12 months general economy & current purchasing climate. Source: GfK Bulgaria - Confidence Barometer January 2012 (N= 1000 respondents) 2010

6 Bulgarian Households expectations for 2012 are still skeptical What are your household s financial expectations for the upcoming 12 months? Better Worse The Same 43% 9% Details 34% Do you intend to buy more, the same or less durables in the next 12 months? More The Same 12% Source: GfK Bulgaria - Confidence Barometer December 2011 (N= 1000 respondents) 14% Less 49%

7 Bulgarian Households financial situation is critical. High unemployment and lack of confidence in better future have decreased households purchase intentions as well as their spending's on non-basic categories 65 % What is your household s present financial situation? 0% We save considerably 15 % We save a bit We can barely make ends meet 3% We have to touch regularly our savings 11 % We need to borrow in order to cope Source: GfK Bulgaria - Confidence Barometer December 2011 (N= 1000 respondents) no opinion does not appear

8 Personal consumption: 2011 vs Contrary to the food basket a significant decrease is observed in categories not satisfying basic needs such as clothing as well as education, entertainment, sport and recreation baskets. Source: National Statistical Institute-Bulgaria

9 Dynamics in FMCG basket Basket Dynamics (% diff versus previous year value based) Source: GfK Consumer Panel Services; based on monitored FMCG category range

10 Consumer = Shopper? If people went to stores only in situations when they needed something, and if they bought only products they actually needed, trade would go bankrupt very quickly Paco Underhill, CEO Envirosell Growing expectations More and more complex shopping patterns Frustration with overwhelming marketing communication Above 70% decisions made in-store High individualism Decreasing loyalty towards shopping venues Do we (retailers and suppliers) know enough to be successful in wining shoppers hearts and. budgets?

11 Do you know these people?

12 No more average shopper Lifestyle Preferences towards purchase venues Shopping patterns General market attitudes

13 No more average shopper : Shopper deciphering is as difficult a task as... Counting all the black dots on this square...

14 No more average shopper Segments of shoppers (sizes and dynamic) Buying on impulse Seeking quality Price Driven by consciousness convenience Emotionally involved in shopping Segment sizes in dynamic (2010 vs. 2011) Me Shoppers Reckless Shoppers Savvy Shoppers Source: GfK Bulgaria Shopping Monitor 2012 Routine Shopper Gregarious Shopper

15 Who they are? Me Shoppers KEY DRIVERS for the choice of main shopping place: I am one of the first consumers shopping for new products launch on the market. Assortment &variety of productsgood quality of the products Good price quality ratio Freshness of the products Large share aged WHERE TO FIND THEM? In hypermarket or discounter formats because of the assortment range and good price quality ratio. Kaufland, Lidl and Billa are preferred shopping places I often happen to go wild at a store and to spend much more impulsively than planned. I often happen to buy ready to cook food as alternative of meals prepared at home. PRE-PURCHASE: They receive and read leaflets. They are mobile and use car for shopping BASKET SIZE: Prefer to do large purchases. IN-STORE: They know PLs and purchase them for selected product categories. They are aware of organic foods and buy selected products by them Shopping Behavior Source: GfK Bulgaria Shopping Monitor 2012 st st GfK 2012 Take the lead! Explore opportunities potential! 31 May 1 June, 2012

16 Who they are? Savvy Shoppers KEY DRIVERS for the choice of main shopping place: Aged 50+ Willing & nice Quick shopping personal Price reductions I tend to calculate the price per liter or kilogram to make the most economy choice. Long opening hours Best deal WHERE TO FIND THEM? In Discounters and superettes as Lidl, Carrefour and CBA are preferred shopping places. I try to buy products that are offered on promotion at a given moment. Source: GfK Bulgaria Shopping Monitor 2012 Sales BASKET SIZE: They visit and shop from one and the same store and prefer to make smaller purchases. IN-STORE: promotions influence their purchase decision Majority of them do not use car for shopping PRE-PURCHASE: Majority of shoppers check leaflets and do their shopping accordingly Shopping Behavior

17 Who they are? Routine Shoppers KEY DRIVERS for the choice of main shopping place: Large share aged 60+ Willing & nice personal Proximity I do not like it when the store layout is changedas then I feel lost and I do not know where to look for products. to home Good prices in general WHERE TO FIND THEM? In the small neighborhood store, as they prefer traditional trade counter food store format. I do most of my everyday shopping at one shop. Majority of them do not have car or if they have such don t PRE-PURCHASE: use it for purchases. In most of the cases they go Majority of to shop on foot. shoppers do not receive leaflets Convenience BASKET SIZE: They visit only one store and make mainly small purchases. IN-STORE: Don t know PLs and organic foods. Purchase is just a necessity. Willing to spend less time on it. Change in the store arrangement confuses them and make their shopping difficult Shopping Behavior Source: GfK Bulgaria Shopping Monitor 2012 st st GfK 2012 Take the lead! Explore opportunities potential! 31 May 1 June, 2012

18 Who they are? Gregarious Shoppers KEY DRIVERS for the choice of main shopping place: Good prices-quality ratio When doing shopping, I happen to consult my partner. Assortment & variety of products Willing and nice personal the Large share of people aged up to 39 y.o. WHERE TO FIND THEM? shoppers in hypermarkets and supermarkets. Kaufland, Billa, Fantastiko and Evropa are preferred shopping places. Pleasant environment BASKET SIZE: both smaller and larger purchases as visit different stores but purchase mainly in one IN-STORE: buy PLs and organic foods The shopping is pleasure for me. PRE-PURCHASE: read and shop in accordance with leaflets. Source: GfK Bulgaria Shopping Monitor 2012 st st GfK 2012 Take the lead! Explore opportunities potential! 31 May 1 June, 2012 They are mobile and use car for shopping. Shopping Behavior

19 Who they are? Reckless Shoppers KEY DRIVERS for the choice of main shopping place: Good prices of particular No queues, products Proximity to home or Good quality of the products quick shopping When shopping, I never use a shopping list. workplace Speed of checking out Freshness of the products Prevail people aged 50+ When everyday shopping the quality is key priority for me, regardless the price. WHERE TO FIND THEM? Traditional trade counter food store format or supperets. Among the preferred stores for them are CBA, T Market, Magazin 345, shop in the neighborhood PRE-PURCHASE: don t read leaflets. They use car only for larger purchases. BASKET SIZE: both small and larger purchases as in that way they can usually have fresh products. IN-STORE: They know PLs but do not buy them. Shopping Behavior Source: GfK Bulgaria Shopping Monitor 2012 st st GfK 2012 Take the lead! Explore opportunities potential! 31 May 1 June, 2012

20 What to be the further steps Estimate potential of the new opportunities Shoppers are moving target. Track your segments in their life-time. Explore your target segments behavior in the store

21 GfK. SEE THE FUTURE! BE THE FUTURE! OWN THE FUTURE! Thank you for your attention!