5 examples of how our shopper insights can drive true growth

Transcription

1 5 examples of how our shopper insights can drive true growth Roger Jackson, Global Vice President, Shopper Research: Sal Fiordelisi, Program Lead, Shopper Intelligence USA: Wade Duke, President, Shopper Intelligence North America, Call Toll Free:

2 A Shopper Insight: A previously unknown or un-adopted learning about the shopper and/or the shopper decision process that we can leverage to improve business performance What the shopper thinks, needs, does Copyright SMI

3 5 ways shopper insight can uncover routes to growth Role of category to the store How and when the purchase decision is made Response to promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

4 5 ways shopper insight can uncover routes to growth Role of category to the store How and when the purchase decision is made Response to promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

5 The retailer cares about growing their business not yours. Understanding Role gives you ammunition for greater resources Insights that build proposals will demonstrably drive additional revenue/profit for the store are valuable. And your buyer needs to argue the case with his/her boss With fact based insights they will get support. More $ New shoppers Existing shoppers spend more Greater loyalty Copyright SMI

6 A framework we find powerful High differentiation Build loyalty and spend Low intentionality Impact the trip High intentionality Low differentiation Australia Advantage International, Inc. 6

7 High differentiation Broadly speaking 4 Category Types Differentiate via New & Treat Entertain me with something new and different e.g. Chilled Soup Hero categories Give me a reason to choose This store over competitors e.g. Fresh Bread Low intentionality High intentionality Drive the Basket Give me an irresistible deals on those little extras Drive the Trip Give me the best value on basics & make it easy e.g. Chocolate Biscuits Low differentiation e.g. Standard White Milk Australia Advantage International, Inc. 7

8 6.50 Differentiate via New and Treat High differentiation Different categories have different roles for retailers and shoppers Hero categories 6.00? 5.50 Low intentionality High intentionality Drive the Basket Low differentiation Drive the Trip Australia Advantage International, Inc

9 Low intentionality Top 10 supplier brands Fancy Feast (Cat Food) Huggies (Nappies) Vitasoy (Fresh Non-Dairy Milk) Whiskas (Cat Food) GWF (Bread) My Dog (Dog Food) Babylove (Nappies) Wonder White (Bread) Dilmah (Tea) Pollident (Denture Care) High differentiation Lead on innovation Pre-store advertising/ Catalogue Promotion out of store Simple Display, focus on OOS Opportunity/ threat in Private Label Hero categories High intentionality Top 10 categories Nappies Pet Food Fresh bread Health Foods Fresh Meat Staple Veg Continental Deli Australia Advantage International, Inc Coffee Fruit Long Life Milk

10 Categories are not homogeneous Breakfast bars and Biscuits category example Most of category is Highly incremental and intentional Adult snacking A subset is less incremental and less planned Kids lunchbox Australia Advantage International, Inc.

11 Case study what Suppliers and Retailers do together with this framework

12 Australia Advantage International, Inc.

13 Top 10 for the shopper importance of Price Disposable Nappies Long-life milk Chocolate Bags Cola Soft Drinks Hair Colour Block Chocolate Lunchbox Snack packs Baby Wipes Chocolate Sharepacks Cake Mixes Australia Advantage International, Inc.

14 Top 10 for importance of availability Disposable Nappies Mixers Blades and Razors Feminine Hygiene Long-life milk Yoghurt White Sliced Bread Gourmet Yoghurt Dairy Beverages Cat Food Australia Advantage International, Inc.

15 5 growth driving insight arenas Role of category to the store How and when the purchase decision is made Response to promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

16 Understanding the path to purchase, the when and the how If you know when the decisions are being made you can allocate resources effectively and argue that case to the retailer Category Decision Pre store In store Brand Decision Pre store In store Ease of diversion Loyal/small repertoire Disloyal/large repertoire Copyright SMI

17 Understanding the path to purchase, the when and the how If you know when the decisions are being made you can allocate resources effectively and argue that case to the retailer Category Decision Pre store In store Brand Decision Pre store In store Ease of diversion Loyal/small repertoire Disloyal/large repertoire Copyright SMI Activation early in P2P Activation at fixture

18 Case study: Winning additional secondary display feature in Mexican Foods Australia Advantage International, Inc.

19 Arguing for secondary display for Mexican meal components secondary siting Mexican food is impulsive and expandable Copyright SMI

20 Mexican Foods is driven by Display Mexican cuisine 71% 27% Planned 63% 114 Unplanned 36% 29 No promo trigger 59% 109 Promo trigger 6% 41 No promo trigger 15% 29 Promo trigger 25% 26 Regular purchase 36% Particular use 17% Requested 14% Try for a change 4% Catalogue 3% 30 Advert 1% Internet info 0% Coupon 2% Price / Specials 12% Display 12% Pack 3% Info in store 4% New 5% 41 Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR) Q12 What were the main reasons you planned to buy XXX on this occasion? (MR) Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR) n=414 x% All category average Below benchmark (99.9% confidence) Below benchmark (90% confidence) In line with benchmark Above benchmark (90% confidence) Above benchmark (99.9% confidence) xx Rank (of 140) % of shoppers

21 5 growth driving insight arenas Role of category to the store How and when the purchase decision is made Response to promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

22 Understand incrementality of promotions Retailer short term focus is maximising weekly sales Tend to promote best sellers But these are not often driving incremental growth, rather they drive cupboard loading. Copyright SMI

23 Case study: Arguing additional promotions for Premium Tea Australia Advantage International, Inc.

24 Everyday tea purchase are about routine, regular behaviour Tea Routine regular purchase hence simplicity crucial for Tea shoppers particularly in Everyday Black. Facilitate the shop with easy navigation, direction at shelf and in stock. 71% Planned 79% 56 Planned Regular Purchase No promo trigger 75% 54 Promo trigger 4% Regular purchase 68% Particular use 3% Requested 8% Try for a change 1% Catalogue 3% 133 Advert 0% Internet info 0% Coupon 1% Everyday Premium Green Infusions 79% 58% 56% 61% Tea (N=305), Everyday Black (n=121), Premium Black (n=50), Green (n=34), Infusions (n=38) Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR) Australia 2012 Q12 What were the main reasons you planned to buy XXX on this occasion? (MR) 24 xx Rank (of 178) Advantage International, Inc. Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)

25 Whereas Premium teas are well placed to trade shoppers up with impulse purchasing Price offers trigger a greater impulsive response in Premium Black and Green tea shoppers. Tea 27% Impulse driven by Price Unplanned 20% 117 No promo trigger 11% Promo Trigger 13% 116 Everyday Premium Green Infusions 4% 10% 12% 3% Price/ Specials 7% Display 6% Pack 0% Info In Store 2% New 3% Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR) Q12 What were the main reasons you planned to buy XXX on this occasion? (MR) Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR) Tea (N=305), Everyday Black (n=121), Premium Black (n=50), Green (n=34), Infusions (n=38) xx Rank (of 178) Australia Advantage International, Inc.

26 Promotion Response Regular Tea 63% Incremental 59% % Would have bought the category & bought same as usual 37% 63 Only bought because of promo 43% 104 Would have bought but bought more than usual 16% 125 Speciality Tea 63% Incremental 82% 16 Strong argument to increase promo exposure of Premium Tea to drive true growth 32% Would have bought the category & bought same as usual 15% 183 Only bought because of promo 75% 12 Would have bought but bought more than usual 19% 89 x% All category average xx Rank (of 195) Australia Advantage International, Inc.

27 5 growth driving insight arenas Role of category to the store How and when the purchase decision is made Incrementality of promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

28 Not all shoppers are the same Easy assumption among retailers is that brand buyers are some how just illogical But if you can prove a different need compared to own label buyers you can argue logically to support brand activity Copyright SMI

29 Case study: Understanding Brand in a commodity category : Flour Australia Advantage International, Inc.

30 We need to look first at how flour is bought: Price is not as critical in these types of categories Flour Top 10: Planned Particular use Cream 64% Herbs 63% 71% Planned 89% 9 Liquid Stock 49% Herbs, Spices & Seasonings 44% Mince 42% Regular purchase 63% Particular use 39% No promo trigger 88% 5 Requested 9% Try for a change 2% Catalogue 2% 149 Advert 2% Promo trigger 3% Internet info 0% Coupon 1% Flour 39% Cough and Cold products 38% Batteries 37% Medicinal 37% Fresh Chicken Cuts 36% Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR) Q12 What were the main reasons you planned to buy XXX on this occasion? (MR) Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR) n=300 Australia Advantage International, Inc. xx Rank (of 178) % of shoppers

31 And how flour is used in the home When intended to be used Average Category Flour n=50773 n=272 Consumed/used straightaway after buying 18% 15% Consumed/used the same day as bought but not straightaway Taken home for future consumption on a specific occasion Taken home with no specific occasion or use in mind 28% 24% 36% 43% 25% 25% Consumed or used later but not in the home 3% 3% For use in some other way 3% 4% Need to talk about occasion/ recipe not price Remind shoppers of the importance of their choice to their recipe to drive value Australia Advantage International, Inc.

32 Net Favourable in Flour vs Brand X Q25 how important is each statement to you when shopping for XXX in [RETAILER]? (SR) 4.0 Importance (1-5) When I buy premium Flour in [RETAILER], I really notice the difference (agree minus disagree) Category 17% Brand X 48% Brand X delivers on premium Flour Avg Category xx Rank (of 178) n=300 Below benchmark (99.9% confidence) Below benchmark (90% confidence) Australia Above benchmark Above benchmark Advantage International, Inc. In line with benchmark (90% confidence) (99.9% confidence) * Select categories only

33 Brand X significantly outperforms the category on willingness to spend more for better Q23.how much you agree or disagree when shopping for XXX in [RETAILER].. (SR) Brand X can drive premium and higher ASP into Flour Range of ratings for statement: All categories xx Rank (of 178) x% All category average Performance: Net Favourable Australia (% Agree 7,8,9 minus Advantage % disagree International, 1,2,3) Inc.

34 Summarising the argument to the buyer: Category Information What it proved Insight Flour Highly planned for a specific use Bought for a specific occasion Brand X commands a higher price premium Flour is not 100% commodity Can trade up via Brand X Execute this via specific use/ occasion Result Combined with a new commercial package the brand received additional space and support for a program of promotional activity Australia Advantage International, Inc.

35 5 growth driving insight arenas Role of category to the store How and when the purchase decision is made Incrementality of promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

36 Differentiate by shopper types Classic marketing theory is to understand what motivates different consumers, identify the most attractive segment, then target them This applies in the same way to shoppers We have built successful growth strategies by identifying differences based on eg: By Intended recipient/user By Gender By Usage occasion By Age Copyright SMI

37 Case study: Merchandising Premium in Red Wine Australia Advantage International, Inc.

38 Supplier wanted to pioneer a new merchandising strategy to drive trade up in Red Wines I don't mind paying a bit more for some types of [Cat] in n= [Ret] Average Category % Total Wine % Total Wine without Cask % Total Beer % White Bottled % Red Bottled % Sparkling White % French Champagne % Cask Wine % Sparkling (incl Champagne) % Australia Advantage International, Inc.

39 Male Wine shoppers want ideas and inspiration Total Wine Average Liquor Male Wine n= Improve how the products in XXX are laid out and positioned on shelf so it is easier and quicker to shop Improve signage and information at the shelf so it is easier and quicker to shop More ideas/ inspiration/ explanation at shelf to make XXX more enjoyable and easier to shop 13% 14% 17% 18% 15% 19% Australia Advantage International, Inc.

40 72% Male Dan Murphy s shoppers are more likely to be men buying for later than other retailers Australia Advantage International, Inc.

41 5 ways shopper insight can uncover routes to growth Role of category to the store How and when the purchase decision is made Response to promotions Brand buyers versus own label buyers Targeting different users and occasions Copyright SMI

42 Program Introduction Australia Advantage International, Inc.

43 This is an already well proven tool, seeking to become a global standard SI Pilot programs operating in Australia (since 2008) UK and France (since 2013) rolling out to 5 additional countries in 2014/15 NETHERLANDS UK BELGIUM GERMANY CANADA FRANCE USA SPAIN SOUTH AFRICA AUSTRALIA NEW ZEALAND Copyright SMI In exploration ASI Pilot Countries GEOGRAPHICAL MARKETS COVERED ASI Planned

44 A common reference - valued by retailers so highly effective for suppliers Shopper Intelligence adds strong evidence to our category knowledge and completes past shopper research. Its innovative methodology gives a solid benchmarking of the role of our category in growing our retailers sales, allowing us to determine the right levers of action. A big advantage of the system is it s quick to turn into action and present to buyers. Stanislas de Maleissye, Category Marketing Director, General Mills, France Copyright SMI Shopper Intelligence is well embedded across the business at Coles. It is a key component in our suite of insights driving Customer and Category planning and is hard-wired into category level templates that Category Managers use to make decisions everyday (e.g. range reviews) David Brown, Category Insights Manager - Grocery Food, Coles Supermarkets, Australia

45 This new system provides a more cost efficient and contextual solution than multiple custom projects Existing sources provide behavioral data but little forward looking why understanding from shoppers themselves Panel Historically, you need customised research to get any real insights about what shoppers think and want. That s expensive, time consuming and often infrequent. Scan Data Loyalty Card An Industry system provides significant cost economies, engages retailers better, and provides unique benchmarking capability Copyright SMI

46 What is it? A large scale, cost efficient quantitative Industry program benchmarking Categories with Shoppers across Channels and Retailers Copyright SMI Large scale Cost efficient Benchmarking Categories Shoppers Channels & Retailers 120+ quota d sample per category, per retailer = huge sample for robust benchmarks, eg 260,000+ Large savings intrinsic from standardized shared fieldwork process and automated reporting. 30% cost of equivalent custom research Measures of shopper perceptions, attitudes, behaviors at a category level. 90% standardized, 10% customizable for any category. Insights from comparisons. All major categories covered plus segment level detail to specific sponsor request. Highly granular Shopper interviewed on line within hours of shop so highly recent. Each evaluates one category and one retailer for depth of insight Propose all major channels: Supers, Mass, Club, Drug, Dollar, On line and specialists major national and regional retailers quota d and reported. One source to measure your whole business.

47 This is a whole of store program Category coverage is built on sponsors needs based on a core platform of 80+ major categories c.80 Departments and Macro Categories Chilled Food Meals Cooked Meats Pizza etc Dry Grocery Household Fresh + Client-Defined Categories / Segments Meals Italian Snack Mexican etc Often supplier led Benchmark across categories Benchmark to competitors Track change Copyright SMI

48 What might the USA launch sample look like? We need to agree with sponsors which retailers and categories to cover. The minimum sample per retailer per category drives statistical robustness Banners Per Category Quota Sample Fresh and Chilled Packaged Grocery/BWS Category Coverage (tba) Health and Beauty Household and Gen Merch Total Resulting Sample Mass Walmart ,000 Target ,000 Club Costco ,250 Sams ,250 National Supers Kroger Corp (main banner) ,000 Safeway Corp (main banner) ,000 On Line Coverage Ahold Corp ,000 Composite of Amazon,Walmart, Safeway, Target, Kroger ,000 Drug CVS ,200 Walgreens ,200 Dollar Dollar General/Family Dollar ,750 Regionals BJs ,000 (to be agreed) HEB ,000 Publix ,000 ShopRite ,000 Rite Aid ,000 Kmart ,000 Albertsons Legacy ,000 Delhaize ,000 Meijer ,000 Supervalu ,000 Totals 22 2, ,650 Copyright Advantage International/SMI Clients may choose to boost sample on bigger customers and categories

49 Plus the ability to add custom content for your categories 2014 UK Full Content Summary Category DNA 1a 1b 1c 1d 1e 1f Category Role (Traffic/Spend) Intentionality/ Differentiation Framework Shopping Mode (Grab Go vs Browse) Fixture Impact (slower/faster) Category Emotion (positive/negative) Category Performance Indicators 2a 2b 2c 2d Barriers to Purchase (customised) Overall Recommend Factor Importance Factor Performance (NF) Performance Importance Matrix Path to Purchase 3a 3b 3c 3d 3e 3f 3g 3h Purchase Triggers (Planned vs Unplanned) What Planned Conversion (planned to buy) Promotional Response (incrementality) Where bought from POP improvements Decision Hierarchy (switch/walk) Consumer Dynamics 4a 4b 4c 4d 4e 4f 4g Who bought for When to be used Category substitutes Expandability Repertoire Closed/open minded Private Label Trial Private Label Repeat Shopper Profile 5a 5c 5d 5e 5f 5g 5h 5i Age/Gender Household Composition 6a HH income & occupation Category Fingerprint Who shopped with Trip Mission SI Category Mindset Model Frequency of purchase (store/category) 6b Basket Spend Cross Store Typologies Why chose this store Copyright 2014 Advantage International/SMI

50 You can mine in depth insights by slicing and dicing the data cube Insights can be viewed through multiple Consumption and Shopper lenses to help pinpoint solutions, eg By Brand bought How do shoppers of my brand compare? Brand Vs Private Label By Major Brand By Shopper type Key Demographics Retailer Loyalty Copyright SMI Which shoppers are the biggest opportunity? Category Spend Mission

51 Shopper Intelligence comes with a highly developed toolkit to support application Overall National Reports Automated PPT decks Issue based summaries On Line Dashboard PPT libraries Tailored analysis Support National performance overview & rankings National brand rankings and reports Category and Channel Overviews Retailer Overviews Brand Reports Category Scorecards Point of Purchase Storyboards Quick access to main data component Easy navigation by measure category, channel, retailer Contains all Shopper Intelligence content Pre-prepared charts covering most analysis requirements Ability to slice and dice the entire database On site consulting support to land the main insights included Copyright SMI

52 Key Performance Indicators Summary Satisfaction Overall Satisfaction Recommend shopping for XXX at [RETAILER] Factor Summary SAVE MONEY PRICE OFFERS QUALITY PREMIUM HEALTH * SOCIAL RESPONSIBILITY Factor Summary INNOVATION ASSORTMENT LAYOUT OOS ENJOY Shopper Needs When I want to save money, XXX is one of the main products in [RETAILER] that helps me The prices are great on the XXX products I buy in [RETAILER] I often find good special offers on the XXX products I want to buy in [RETAILER] The quality of the XXX products I buy is great in [RETAILER] When I buy premium XXX products in [RETAILER], I really notice the difference The type of XXX I buy in [RETAILER] helps me with the health & well-being of me/my family XXX does minimal harm to the environment and is made/sourced ethically Execution There are often appealing new ideas in XXX in (RETAILER) [RETAILER] has a good range of XXX products After I ve found XXX in [RETAILER], I can easily find the type of XXX I want I rarely or never have to leave the store or switch to another type of XXX because [RETAILER] are out of stock of my preferred choice It is quite enjoyable and/or interesting to shop for XXX in [RETAILER] Copyright SMI * Measured in relevant categories only We can add custom measures to individual sponsor business issues

53 Our Dashboard A web portal that enables flexible analysis of the data base Copyright SMI

54 How have clients used this data?

55 Application of Shopper Intelligence Applications: Develop Sell - in Track Category Strategy What are the best bet growth drivers of the category? Choose the right strategies Win customer support of our proposals Measure success over time Joint Business Plans Delivering shopper goals in each customer? Use key insights for each retailer to underpin plan Unique data set for each retailer Retailer specific tracking Shopper Marketing How do we leverage our brands and budgets most effectively in path to purchase? Identify most effective marketing strategies Link to retailer goals and issues to gain agreement Measure results Organization Capability Putting Customer and Shopper understanding into the heart of our thinking across the business Copyright SMI

56 Key benefits summarized

57 This large scale systematic approach provides a unique set of benefits All Categories and retailers measured identically with quotas = Cross category & competitor benchmarking Consistent over time = Insight from trends Highly developed toolkit = Fast insights for commercial users Objective, shared platform with retailers = Achieves traction with buyers Common fieldwork and reporting platform = Cost efficiency Copyright SMI