Using Virtual Shopping to Activate Change at Retail. The Virtual Shopping Experts
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1 Using Virtual Shopping to Activate Change at Retail The Virtual Shopping Experts
2 Barilla Shopper Insights Team Craig Geiger Category Development Brian Ellis Category Development Tania Pressoir Category Development Bill Aaker Field Category Development Custom Resources: Meg Currin Field Category Development Nielsen Molly Kjesbo Advantage Arthur Zimbalist Marketing Mason Oatey Lois Johnson MRD Doug Healy MRD Sam Gagliardi Shopper Marketing 2
3 Barilla Shopper Insights Team Vision Create a collaborative approach to generate shopper insights to ensure efficiency in research design, analysis and alignment internally/externally while focusing on internal ROI and external results. 3
4 Main Functions of our Team Members Category Development Customer data Category/brand trends Shelving tests Customer segmentation Leakage data Marketing Research In-home use tests Brand imagery Shop Alongs Attitudinal Research Brand/Consumer segmentation Nielsen Customer insight Data support Info applications/services Panel Insights Field Sales Customer insight Facilitate in-store testing Access to customer data Input on selling stories 4
5 Barilla Shopper Insights Team - Benefits Information sharing Help improve business results Return on investment in information Grow people capabilities through cross-functional exposure Efficiency in research design and communication; execution of research results 5
6 Shopper Insights Teamwork Sharing information traditionally siloed Aligning Barilla Custom Segmentation and Retailer Segmentations Validating plan-o-gram maps 6
7 The Role of Market Research 1. Represent the Voice of the Consumer/ Shopper 2. Determine best methodology for delivering results according to the problem and the best vendor to deliver results 3. Design a questionnaire which will fulfill the Action Standards of the team 4. Find the Why 7
8 Finding the Why Without the Why we don t have insight 8
9 BFY Case Study: Problem to be Solved Determine the best Pasta Aisle Plan-o-Gram as defined by the criteria: Improves overall dollar sales within the category Increases positive perceptions of the shopping experience 9
10 BFY Case Study: Problem to be Solved Determine the best Pasta Aisle Plan-o-Gram as defined by the criteria: Improves overall dollar sales within the category Increases positive perceptions of the shopping experience 10
11 Methodological Options 1) In-store Research 2) Virtual Shopping Research 11
12 Vendor Selection Experienced Innovation Well-rounded Methodology VALIDATION 12
13 BFY Case Study: Objectives Issues to address: Which aisle improves dollar sales within the category? Which arrangement increases positive perceptions of the retailer? 13
14 Virtual Shopping Demonstration Approach: 1. Decision Insight s SimuShop online virtual shopping study 2. imoderate s online qualitative interviews to understand the Why s 14
15 BFY Case Study: Key Findings Locating BFY products with their parent brand. Drives More Revenue Attracts more heavy users to BFY Increases Retailer Loyalty 15
16 BFY with Parent Brand Drives More Revenue Good for Barilla Change in Barilla Revenue $0.17 Barilla Plus Base Barilla $.029 $0.12 BFY with Parent Brand (Test 1) -$.010 BFY Section (Test 2) 16
17 BFY with Parent Brand Drives More Revenue Good for BFY Change in BFY SKUs Revenue $0.19 $0.17 BFY with Parent Brand (Test 1) BFY Section (Test 2) 17
18 BFY with Parent Brand Drives More Revenue And most importantly, it grows the entire category Change in Category Revenue $0.59 $0.13 BFY with Parent Brand (Test 1) BFY Section (Test 2) 18
19 Pasta is a brand-driven, non-impulse category Shoppers select a brand based on quality and value, then stick with it. I look for my normal brand. I don t usually spend time browsing. Just find what I m looking for. I have always liked the way Barilla pastas cook. It is my routine. Not sure I like to try new things when I am used to the taste and quality I get. I usually look for specific brands we like Barilla. But I also look at the price, and think about what I might be needing what types of pasta or noodles. 19
20 BFY Case Study: Activation at Retail Barilla Recommendation: Test Aisle 1 Improved category sales, Barilla sales, and retailer perceptions 20 20
21 BFY Case Study: Activation at Retail Barilla Recommendation: Test Aisle 1 Improved category sales, Barilla sales, and retailer perceptions 21 21
22 Key Learnings for Barilla Able to consider Virtual Store Testing a standard methodology for the MRD: Exploring options of conducting similar tests in Europe Conducted another test with another important retail partner 22 22
23 Base Brand Case Study: Problem to be Solved Building upon our learnings with another retail partner. BFY Leads (Test 1) Semolina Leads (Test 2) 23
24 Bookending the Category Drives More Revenue Great for the Category Change in Category Revenue $0.40 $0.44 BFY Leads (Test 1) Semolina Leads (Test 2) 24
25 Bookending the Category Drives More Revenue Split Success for BFY Retail Brand Change in Retailer BFY Brand Revenue $0.32 -$0.05 BFY Leads (Test 1) Semolina Leads (Test 2) 25
26 BFY with Parent Brand Drives More Revenue Both Good for Barilla Change in Barilla Revenue $0.46 $0.62 BFY Barilla Base Barilla $0.11 BFY Leads (Test 1) $0.11 Semolina Leads (Test 2) 26
27 Base Brand Case Study: Qualitative Insights Shoppers are looking for BFY options and are loyal to Barilla. There were a lot of 'better for you options' which appealed to me as I have not tried it yet, but would like to do so. Barilla is a brand that I usually buy and like. They had a lot so I wanted to buy that brand. Well once I see the Barilla brand I tend to select this brand because of the variety of noodles. I only buy Barilla, I've tried others and that's what I like I was quite surprised, as I am always looking for healthier options, and they had quite a few to choose from. 27
28 Base Brand Case Study: Activation at Retail Recommended changes good for retailer and Barilla. 1. Gained 3 lines of distribution with the retailer 2. Even gained distribution of our sauce 3. Validated assumptions, improving our perception with the retail partner 28
29 Thank You!! Contact us Doug Healy Senior Market Research Analyst Alex Sodek Senior Vice President x232 29
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