Game Changers How to compete with discounters / Cum sa tii piept asaltului discounterilor

Transcription

1 Game Changers How to compete with discounters / Cum sa tii piept asaltului discounterilor Presented by: Ray Gaul, VP Research & Analytics Kantar Retail Market Insights

2 In 2015, Lidl Launched National Pricing in Romania and Croatia Is this really what consumers want? 2 Transparent Pricing

3 3 Challenge Questions 3 Most expensive SKU? Most expensive Wine SKU? Most expensive service? Most expensive SKU?

4 Answers to Challenge Questions 4 Highest Lidl Highest Wine Highest Aldi Sued 1, , Source: Kantar Retail research and analysis

5 Today s Themes How to win in the age of discounters 5 1 Understanding why shoppers like discounters How discounters engage with shoppers Areas of opportunity 2 Five Ways to Create Differentiation Building a strategy Identifying Best Practice 3 Game Changers

6 Discounters Take Advantage of a Poor Economy For the consumer it is sometimes easier to go to a cheaper store 6 ECONOMICS Lower confidence, deflation in non-food, wage pressures, higher cost of property DEMOGRAPHICS Small family sizes, ageing, middle class confidence, pressure on rural households, shift to urban (higher cost housing per sq. m. and higher expectation of cosmopolitan lifestyle) THE ECONOMIC LANDSCAPE THE DEMOGRAPHIC LANDSCAPE SHOPPER DECISION TREE TECHNOLOGY CHANGES TECHNOLOGY End of check out, e-wallets, ecommerce, e-pricing, e-couponing put pressure on price >20% and growing

7 The Way Discounters Solve the Problem of Assortment Multiple promotions help discounters differentiate weekly 16 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

8 Discounters Drive Themes in Promotions Not Prices 17 Christmas Valentine s Day Easter Halloween Father s Day Mother s Day BBQ/Outdoor Minority Religions Local

9 Today s Themes How to win in the age of discounters 19 1 Understanding why shoppers like discounters How discounters engage with shoppers Areas of opportunity 2 Five Ways to Create Differentiation Building a strategy Creating a philosophy that permeates the organization Communicating with shoppers 3 Game Changers

10 5 Ways Retailers Provide NEW Solutions Build your own strategy Innovate 20 Reinvent Retailers Create New Ways of Managing Lifestyles Connect Retailers Reinvent Classic Categories Retailers Connect to Shoppers in New Ways Package Retailers Work to Create Better Packaging Retailers Create Arc Campaigns Extend

11 Retailer Investment Strategies Preparing for Change: On-the-go formats Pack, price, position, placement changes needed 30 UNSTAFFED NON-PERMANENT PERMANENT 2500 DHL Packstationen In Germany 1000 pop-up stores in London alone 3000 drives in France

12 Result: Lulu Invests Based on Shopper Needs 33 Large and colorful fresh produce assortment Improved bakery offer in terms of value and taste Organic, natural and gluten-free alternatives

13 Today s Themes How to win in the age of discounters 34 1 Understanding why shoppers like discounters How discounters engage with shoppers Areas of opportunity 2 Five Ways to Create Differentiation Building a strategy Identifying best practice 3 Game Changers

14 Kantar Retail Shopper ROI Framework And the retailer value proposition Service Quality Selection Consistency Cost Time Effort Risk F $ * Unique Aspirational Personalized Convenience Transparency EXCEED MEET MISS 35 Source: Kantar Retail analysis

15 2020 Opportunities 41 The Future is a Mix of New Urban youth/millenial (Gen Z), older consumers Digital / Mobile engagement Small Stores / Proximity Grocery new connections THINK: Ways to Create Solutions While Also Helping Manage Shopper Financial Distress BRING: Data / Insights Some Areas for Discussion

16 For further information please refer to Contact: Ray Gaul, Vice President T: +44 (0) M: +44 (0) 776