Innovation in Food Retail

Transcription

1 Innovation in Food Retail

2 Your guide for this session Silvie Vanhout Co-founder The Retail Academy 16 years of experience in different aspects of education and marketing, both in Belgium and in Europe. Nielsen (Team Manager / Account Manager / Trainer) The House of Marketing (Communication and Market Research) InterContinental Hotel Group (Leisure Program Mgr)

3 Why innovate?

4 Why? Why not! 1. To stay ahead of competition Product Process behind the product Packaging 1. Give meaning to your corporate vision 2. Fun

5 Innovation also can be elusive Failure rate of product innovations varying between 60 90%, depending on market circumstances and product type (McKinsey Consulting, 2009) 98% of new product launches have disappeared after 5 years from the shelf Anywhere from 80-95% of new products either fail outright, or fail to meet their business objectives (20/20 Innovation, 2010) 75% failure rate among new products (Boston Consulting, 2010) (Nielsen, 2009) 5

6 The 12 things every new product must do to succeed Source : Nielsen 6

7 The good news is that you don t have to be perfect Evolution does not produce perfect species, but ones good enough to survive. This concept is called viability good enough to beat the competition. Manufacturers do not need to produce perfect products but those good enough to survive in market. Source : Nielsen 7

8 But must focus on weakest link! Overall success is heavily driven by the weakest link. In-market success is not about doing one thing really, really well. Rather, it is about doing everything you need to do - covering every touch-point in the consumer adoption process sufficiently. A new product that does everything enough but isn t a star at any one thing is likely to be a success; a single fatal flaw can derail even the otherwise strongest of initiatives. Source : Nielsen 8

9 New product concepts

10 Follow the Customer

11 More and more consumers are health conscientious Do you or someone in the household have problems with high cholesterol? 45% I regularly pay attention to maintaining a healthy weight 40% Penetration of meat replacement products 25% Salt free, sugar free, low fat Re-enforced by vitamins & minerals Free of genetically manipulated ingredients 7,5 /kg Source : GfK Consumer Panel : claimed importance measured in yearly Census

12 Ingredients we avoid Source: The Nielsen Global Health and Ingredient-Sentiment Survey, Q1 2016

13 Indulging smarter Source: The Nielsen Global Health and Ingredient-Sentiment Survey, Q1 2016

14 Allergies/sensitivities. Healthy is no longer boring, but very hip! GMO free products Sensitive to Milk Sensitive to Soy gluten free crisps (left). Even private label have their own gluten free offer (right).

15 Bio 92% buying households 18% heavy bio buyers (every week bio shoppers represent 80% of the bio turnover) 2,3% value share in total FMCG 22% value share for specific bio stores (but hard discount is the most growing channel in bio) Source : GfK Consumer Panel

16 Local

17 Shrinking the value chain Wholesalers disappear Producers direct to consumer Retailer to local producer Producers make their own market Consumer groups (Groupon) Retailers group in market central purchase offices Retailers group in e-market places (global net x-change) Producers group in e-market places (transora.com)

18 Convenience, pleasure, benefit = premiumisation 3,19 2,99 27cl 11,99

19 Always Incontence Market share 21% & delighted consumers

20 Dreft & sustainability 18 million liter water saved in Belgium

21 Lenor unstoppables New segment in 1 year cross sampling

22 New retail concepts

23 Carrefour Zemst Focus on experience shopping market feeling In house coffee roasting, pizzaiola, Open butcher, E-communication in store Hyperconnected -market Digital kiosks Digital catalogue for household appliances Digital fitting room And more interactive screens

24 Carrefour Zemst

25 Lidl store of the future

26 Makro

27 MediaMarkt

28 O Tera du Sart, Villeneuve d Asq (FR) Democratizing the benefits of short circuits 1100 m² ultra fresh food in self service Short circuit (approx 60% of sales) Self scanning only Eat what you just bought

29 Les compagnons des saisons

30 Questions on these topics.. do not hesitate to contact me. Silvie Vanhout