The Decision-Making Process for Fast Moving Consumer Goods
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1 The Decision-Making Process for Fast Moving Consumer Goods Date: June, 2010 Daedalus Millward Brown Public Survey
2 Objectives 2 Identifying the buying habits for the FMCG categories Identifying the factors with the highest importance in choosing a brand Determining the evolution of choosing a brand for different product categories Identifying the preferred types of promotions
3 Conclusions» 3 The decision regarding the brand In 2010, similarly with the previous year, the decision regarding the brands purchased for household consumption is taken together with other family members. Even though the decision regarding the brand is mainly taken at home for most product categories, for coffee and for carbonated soft drinks the decision in front of the shelf records significant increases in In turn, alcoholic drinks, beer and spirits register increases in the number of consumers who decide on the brand at home.
4 » Conclusions 4 Decision factors and changes in behavior The main factors that influence the in-store decision regarding the brand continue to be represented by different types of promotions. The categories most exposed to change in the buying behavior in 2010 are: spirits, margarine, natural juices and non-carbonated soft drinks (only 45% of the consumers having a similar behavior); On the other hand, coffee, mineral water and dairy products (yoghurt and milk) have at least 60% consumers with the same consumption habits as in the previous year. In line with the consumption decrease, a significant modification in behavior as compared to the last year is represented by buying the same brands in smaller quantities.
5 » Conclusions 5 Types of promotions taken into consideration As compared to 2009, buyers use store s magazines significantly less often, although the percentage of those who often choose a brand because it is on promotion increased. The reasons for this may be related either to the discrepancies between the content of the magazines and what can be found effectively in the stores, or to the fact that buyers benefit from generous and permanent offers for all product categories; Compared to the previous year, there is a substantial increase in the number of buyers who often choose a brand that is cheaper over their preferred one; The most preferred type of promotion is the price reduction for the same quantity offered, which increased in attractiveness from last year; On the other hand, prize contests lost attractiveness, recording a significantly lower score than in 2009.
6 Methodology 6 Research method Survey Target population Persons aged years old, from urban areas, with a high level of education (university or postgraduate), who consider their current economical situation is not much worse than last year, and in the next 12 months it won t be much worse than it is in the present, and who usually go shopping in hypermarkets, supermarkets or cash&carry stores. Data collection technique Online Interviews Sample size 362 respondents Fieldwork May 2010
7 The decision considering the purchased brands N= N=403 % % Just you You and another person Another person 2.8 AB 1. Who is deciding more often over the purchased brands in your household?
8 Choosing a brand: at home or in front of the shelf?» 8 Carbonated soft drinks Noncarbonated soft drinks Natural juices/ nectar Beer Yoghurt Sour cream Milk % % % % % % % I know from home what brand I want to purchase I choose the brand in front of the shelf Base* N=247 N=254 N=268 N=263 N=310 N=354 N=289 N=316 N=355 N=373 N=340 N=358 N=315 N=341 *The percentages were standardized by cutting out the DK/NA option Significant diffrences compared to 2009 (level of confidence of 95 %) AB 6. Please think about how you usually proceed when choosing a brand. For which of the following categories do you choose the brand in front of the shelf and for which of them do you know from home what brand you want to purchase? For do you usually choose the brand in front of the shelf or you already know from home what brand you want? What about for
9 Choosing a brand: at home or in front of the shelf?» 9 Noncarbonated/ Margarine Sausages Chocolate Coffee Oil Liquors mineral water % % % % % % % I know from home what brand to buy I choose the brand when I am in front of the shelf Base* N=211 N=233 N=314 N=346 N=319 N=355 N=296 N=307 N=346 N=379 N=141 N=162 N=348 N=374 **The percentages were standardized by cutting out the DK/NA option Significant diffrences compared to 2009 (level of confidence of 95 %) AB 6. Please think about how you usually proceed when choosing a brand. For which of the following categories do you choose the brand in front of the shelf and for which of them do you know from home what brand you want to purchase? For do you usually choose the brand in front of the shelf or you already know from home what brand you want? What about for
10 Choosing a brand: at home or in front of the shelf?» 10 Pasta Sugar Canned meat Canned vegetables Rice Flour Candies % % % % % % % Biscuits % I know from home what brand to buy I choose the brand when I am in front of the shelf Base* N=339 N=343 N=157 N=218 N=340 N=332 N=260 N=302 **The percentages were standardized by cutting out the DK/NA option AB 6. Please think about how you usually proceed when choosing a brand. For which of the following categories do you choose the brand in front of the shelf and for which of them do you know from home what brand you want to purchase? For do you usually choose the brand in front of the shelf or you already know from home what brand you want? What about for
11 Factors that matter most in choosing a brand 2010» N=325* 2009 N=347* Offering a price reduction for buying more products from the same category % 58.1 % 57.0 The fact that the brand has a price reduction The release of new ranges The brand offers a gift The existence of a contest/ a promotion offered by the brand The release of new products The possibility of tasting the products On-the-shelf brand visibility The fact that a brand has the lowest price Promotional materials (brochures, posters etc.) inside the store The advice from a brand promoter inside the store The release of a new package Something else *People that choose the brand inside the store for at least one of the products AB 7. Which of the following aspects are very important to you personally when choosing a brand inside the store?
12 Changes in brand choice 2010» 12 % N*=362 Carbonated soft drinks Non-carbonated soft drinks Natural juice/ nectar Beer Yoghurt Sour cream Milk Margarine Sausages Chocolate Coffee I gave up buying this product category I try to find cheaper brands I buy the same brands I got used to, but in smaller quantities I haven t changed my buying habits Significant differences in comparison with 2009 (level of confidence of 95 %) *Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision=making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora **The percentages were standardized by cutting out the I don t usually buy this product category option PD1. Please think about your shopping behavior during this year, in comparison with the same period of the last year. Which is the situation that best suits you for the following product categories?
13 » Changes in brand choice % N*=362 Oil Spirits Non-carbonated/ mineral water Pasta Sugar Canned meat Canned vegetables Rice Flour Candies Biscuits I gave up buying this product category I try to find cheaper brands I buy the same brands I got used to, but in smaller quantities I haven t changed my buying habits Significant differences in comparison with 2009 (level of confidence of 95 %) *Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora **The percentages were standardized by cutting out the I don t usually buy this product category option PD1. Please think about your shopping behavior during this year, in comparison with the same period of the last year. Which is the situation that best suits you for the following product categories?
14 Changes in brand choice N*=345 Carbonated soft drinks % Non-carbonated soft drinks Natural juices /nectar Beer Yoghurt Sour cream Milk Margarine Sausages Chocolate Coffee Oil Spirits Carbonated, non-carbonated or mineral water I gave up buying this product category I try to find cheaper brands I buy the same brands I got used to, but in smaller quantities I haven t changed my buying habits *Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora **The percentages were standardized by cutting out the I don t usually buy this product category option PD1. Please think about your shopping behavior during this year, in comparison with the same period of the last year. Which is the situation that best suits you for the following product categories?
15 Ways of choosing a brand 2010» 15 N=362 %... you find out about the existing promotions from the store s magazine you choose a brand because it is on promotion you choose a newly launched brand you choose to buy a private label (e.g.: Aro, Nr. 1, Winny etc.) you choose a cheaper brand than the one you prefer inside the store you choose a brand that is different from the one you thought you would buy when you left home you choose a brand because you received a free sample inside the store Often Sometimes Never Significant differences in comparison with 2009 (level of confidence of 95 %) PD4. When thinking about the way you choose the products for purchase, how often do you...
16 » How to choose a brand N*=345 %... you find out about the existing promotions from the store s magazine you choose a brand because it is on promotion you choose a newly launched brand you choose to buy a private label (e.g.: Aro, Nr. 1, Winny etc.) you choose a cheaper brand than the one you prefer... inside the store you choose a brand that is different from the one you thought you would buy when you left home you choose a brand because you received a free sample inside the store Often Sometimes Never *Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora PD4. When thinking about the way you choose the products for purchase, how often do you...
17 The most attractive types of promotions N= N=345* % % Price reduction for the same quantity Offering an extra unit (i.e free) Offering an extra quantity for the same price Offering another type of product as a gift (i.e.- coffee+ mug) The possibility to enter prize contests (with on the spot prizes or with prizes sent by mail) Price reduction for buying more units (i.e.- for buying 2 products you have a cost reduction) *Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora PD5. Which from the following promotions types do you consider to be most attractive: Poll 7: If the total value of offered prizes within a promotion is the same, which option attracts you? Significant differences in comparison with 2009 (level of confidence of 95 %)
18 Demographics
19 Demographic profile» 19 N=362 Age % y.o. Gender Male 43.6 % y.o. Female 56.4 % y.o. S 0. Please tell me what is your exact age? S 2. You are Female Male D4. What is the highest level of education you attained?
20 » Demographic profile 20 N=362 Personal monthly net income Monthly net income per family member % % 12.8 More than 3600 RON 8.7 More than 3375 RON RON RON RON RON RON RON RON Less than 1000 RON RON RON RON No income Less than 350 RON D 9. Personal monthly net income?/ D 10. Monthly net income per family member? S 4. Which of the following categories best represents your current occupation status?
21 Thank you!
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