ECR Demand Group Project Consumer & Shopper Journeys Framework

Transcription

1 ECR Demand Group Project Consumer & Shopper Journeys Framework

2 Core Principles & Process Principles we will follow: 1. Provide a common approach : Reduce effort wasted in trying to figure out how to do the work versus developing the insights and plans 2. Be Collaborative Leverage the skills, capabilities and insights of trading partners Role of Retailer in this process development is key 3. Comprehensive yet not exclusionary Robust for thought leading companies but applicable to the novice practitioners 4. Not be over template-ised Process guidance provided but also flexible to enables partners to leverage their unique capabilities in addressing the core business questions 5. A framework for aligning approaches between Retailer and Supplier partners with a bias to action 6. Focus on serving Consumers and Shoppers better Source: As presented and agreed in kick-off meeting (Based on US RCSM outputs) 2

3 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 3

4 Introduction Set Up & Definitions What are the Definitions we need to align on before we start? Term Consumers Shoppers Shopper Segment Channel Format Banner Store Digital Definition in the Consumer & Shopper Journey Framework The people who have specific needs that drive consumption of a product or service The people who make the purchases either physically in a store or digitally on line. They can be the same people as the shoppers. A group of Shoppers identified as having similar characteristics, behaviours or needs The path by which goods and services reach Consumers (via Shoppers) in this case Away From Home (AFH), Retail and On Line The type of store for both digital and B&M e.g. Superstore, Hypermarket, Convenience etc The Retailer Brand The actual outlet used for shopping Physical or digital On-line purchases / On-line marketing 4

5 Introduction Set Up & Definitions In the work we refer to Retailers and Manufacturers operating at 3 different levels.. Level 3 Higher Resource Levels High Data Availability High Expertise Levels Frequent Collaboration Level 2 Medium Resource Levels Med-High Data Availability Med-High Expertise Levels Some Collaboration Level 1 Low Resource Levels Low Data Availability Low Expertise Levels Low Collaboration 5

6 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 6

7 Introduction What is a Consumer & Shopper Journey? Definition of A Consumer & Shopper Journey: The mapping of the behaviour and decisions of a group of consumers/shoppers, from Consumption through to Purchase and Post Purchase* - This is a dynamic process - The aim is to build Insights and identify opportunities we can act on Shopper Marketing is a closely related business process: The use of insights driven marketing and merchandising initiatives to satisfy the needs of targeted shoppers, enhance their shopping experience, and improve brand equity and business results for retailers and Suppliers. * Was: The understanding and mapping of Consumption through to Purchase and Post Purchase Behaviours and Decisions for a group of Consumer/ Shoppers targeted by a Retailer and/or Supplier 7

8 Introduction What is a Consumer & Shopper Journey? Consumer & Shopper Journey Insights help Retailers and Suppliers address business challenges at many different levels.. Retailers: How do we.. Suppliers: How do we.. - Attract target shoppers? - Encourage Shoppers to change Channel Decisions? - Build Banner/Store Loyalty? - Drive Category Performance? - Drive Brand - Product Performance? - Attract target shoppers and consumers? - Encourage Shoppers to change Channel Decisions? - Build Brand Performance in a Banner/Store? - Drive Category Performance with my Brand? - Drive Brand - Product Performance? 8

9 Introduction What is a Consumer & Shopper Journey? The best insights come from thinking of a Consumer and Shopper journey as a circular process.. Who..are the Consumers and Shoppers? How..do they evaluate their purchase? What..do they choose to buy? Why..do they Consume?..do they plan a trip? Where..do they choose to shop? 9

10 Post Purchase Evaluation Introduction What is a Consumer & Shopper Journey? Mapping a C&S Journey involves being clear about the target shopper and understanding the decisions made at each point along the journey *.. Which Population? (scope) Population Which Consumer/Shopper Segment? (Who) What, how & why do they Consume/ get influenced? What are their Missions & in which Channels? What are their Banner and Store Choices in this Channel? What Categories are Important in this store? What Products do they purchase? Consumer Shopper Segment #1 Mission/Channel #1 Mission/Channel #2 Mission/Channel #n Banner/Store #1 Banner/Store #2 Categories ABC Consumer Shopper Segment#2 Categories ACD Brand/Product #1 Brand/ Product #2 Brand/ Product #3 Consumer/Shopper Segment #n Banner/Store #n Categories ADE For our target shoppers, at each level the of the C&SJ we aim to understand: What/Where/ When is their behaviour? Why do they behave this way? How can we influence them? * As we build insights along the journey we need to make decisions about what we look at this may lead to redefining the target consumer/ shopper we are looking at.. 10

11 Introduction What is a Consumer & Shopper Journey? What are the key features of a Consumer & Shopper Journey? 1. Who we look at, i.e. the Target Shopper, is guided by the Strategy of the Retailer and/or Supplier 2. The Journeys will differ according to the choices that Target Shoppers make at each step of the journey 3. Each Shopper Segment will undertake multiple Journeys depending on Needs, Categories etc. 4. The decision making mapped at each level for a Journey will depend on the strategic focus of the Retailer and/or Supplier building the Consumer & Shopper Journey 5. Consumer/Shoppers will not always exhibit full Journey behaviour which means the journey mapped will be shorter e.g. Impulse purchasing 6. The understanding of Consumer Shoppers at each level differs between Retailer & Suppliers collaboration enables the building of better Shopper Journey Insights 11

12 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 12

13 Introduction How are Consumer & Shopper Journey Insights used? By mapping one or more Consumer & Shopper Journeys for one or more groups of target Consumer/ Shoppers we can identify.. 1. What are the possible behaviour change opportunities for the target Consumer/Shoppers? 2. What touch points along their journey are going to be most efficient and effective for us to target? 3. What marketing mechanics and/or tactics will be most effective & efficient at the selected journey touch points? Mission/Channel #1 Brand/Product #1 Consumer Shopper Segment #1 Mission/Channel #2 Banner/Store #1 Categories ABC Brand/ Product #2 Population Consumer Shopper Segment#2 Mission/Channel #n Banner/Store #2 Categories ACD Brand/ Product #3 Consumer/Shopper Segment #n Banner/Store #n Categories ADE New decision Old Decision 13

14 Introduction How are Consumer & Shopper Journey Insights used? What can this understanding help retailers and suppliers achieve? CS& J Opportunities Shopper Marketing Platforms & Programmes Category Plans JAG/Joint Business plans More focussed and targeted plans that drive improved business results for retailers and suppliers, leading to improved consumer and shopper satisfaction 14

15 Introduction How are Consumer & Shopper Journey Insights used? The entry point into the model for retailers and suppliers can be at many different points along a journey.. Retailer: How do I?... Attract target shoppers Change Channel Decisions Build Banner/Store Loyalty Drive Category Performance Drive Brand - Product Performance Supplier: How do I?... Attract target shoppers and consumers Change Channel Decisions Build Brand Performance in a Banner/Store Drive Category Performance with my Brand Drive Brand - Product Performance 15

16 Introduction How are Consumer & Shopper Journey Insights used? The expertise and focus along journeys can also be different.. Retailer: How do I?... Identify & Attract target shoppers Change Channel Decisions Build Banner/Store Loyalty Drive Category Performance Drive Brand - Product Performance Supplier: How do I?... Identify & attract target shoppers and consumers Change Channel Decisions Build Brand Performance in a Banner/Store Drive Category Performance with my Brand Drive Brand - Product Performance 16

17 Introduction How are Consumer & Shopper Journey Insights used? There is an opportunity is to leverage Merged Insights around the Consumer and Shopper Journey.. Retailer Target Retailer Shopper Segments & Insights Align on Joint Shopper Targets Combined Consumer & Shopper Journey INSIGHTS Strategy & Retail Marketing Business Planning Supplier Target Brand(s) Shopper Segments & Insights 17

18 Introduction How are Consumer & Shopper Journey Insights used? C&SJ collaboration can be achieved at 3 levels: Level 3 Level 1 How can I enhance category performance with a supplier brand through superior business planning? How can I build brand performance at a retailer level through superior business planning? Level 2 How can I build shopper loyalty to my store with a supplier brand through superior business planning? How can I use my brand in its category to build shopper loyalty to a retailer through superior business planning? How can I identify and attract target shoppers to my store through collaboration with a supplier, and implemented by through superior and innovative business planning? How can I use my brand and business expertise to collaborate with a retailer, to help them identify target shoppers, and use my brands to attract and retain those shoppers across a wide portfolio of categories? 18

19 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 19

20 The ECR C&SJF Tool kit Toolkit Overview The ECR Consumer & Shopper Journey Toolkit enables Retailers and Suppliers to identify and act on growth opportunities collaboratively or as individuals 1. A core Consumer & Shopper Journeys model that identifies the biggest opportunities to better meet shopper needs and unlock growth 2. A Business Process & toolkit to a) Identify WHO the target Shopper are b) Build Consumer and Shopper Journey Insights c) Identify quantified opportunities d) Select & collaborate with partners e) Unlock opportunities in business plans 3. A guide to enable businesses to integrate C&SJ insights and opportunities into existing business processes such as Shopper Marketing and Category Management 20

21 The ECR C&SJF Tool kit Toolkit Overview The ECR Consumer & Shopper Journey Toolkit consists of 3 parts: 1. Insights Models 2. Process for Consumer/ Shopper Identification and Collaborative Working 3. Business Planning Guide Foundation: Consumer & Shopper Segmentation 1.1 Set internal Direction/Roadmap 1. Strategic Context/ Preparation 1.2 Segment, Understand & Select Target Consumers and Shoppers 1.3 Select & Engage Target Partners Foundation: Consumer & Shopper Journeys Insights Model 2.1 Align on Shopper Targets 2. Strategic Alignment 2.2 Merge Shopper Journey Insights 3. Business Planning & Implementation 2.3 Set High Level Shopper Strategies Business Planning Guide & Tools 3.1 Identify Scope of Planning 3.2 Revise Shopper Marketing, Category & Joint Plans 3.3 Implement & Evaluate 21

22 The ECR C&SJF Tool kit Toolkit Overview Suppliers and Retailers can use the toolkit to varying depth depending on their capability resources and desire/ ability to collaborate.. Tool Kit Element Level 1 Level 2 Level 3 1. Use of the Insight Model to identify opportunities 2. Use of the C&SJ Business Process 1. Strategic Context/ Preparation 2. Strategic Alignment 3. Business Planning & Implementation 1.1 Set internal Direction/Roadmap 1.2 Segment, Understand & Select Target Consumers and Shoppers 1.3 Select & Engage Target Partners 2.1 Align on Shopper Targets 2.2 Merge Shopper Journey Insights 2.3 Set High Level Shopper Strategies 3.1 Identify Scope of Planning 3.2 Revise Category, Joint & Shopper Marketing Plans 3.3 Implement & Evaluate 3. Use of Business Planning Tools The toolkit also supports working where there is no co operation between retailer and supplier Users can start in different places 22

23 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 23

24 The ECR C&SJF Tool kit C&SJ Insights Models What are the Insights Models? Foundation: Consumer & Shopper Segmentation 1.1 Set internal Direction/Roadmap 1. Strategic Context/ Preparation 1.2 Segment, Understand & Select Target Consumers and Shoppers 1.3 Select & Engage Target Partners Foundation: Consumer & Shopper Journeys Insights Model 2.1 Align on Shopper Targets 2. Strategic Alignment 2.2 Merge Shopper Journey Insights 3. Business Planning & Implementation 2.3 Set High Level Shopper Strategies Business Planning Guide & Tools 3.1 Identify Scope of Planning 3.2 Revise Shopper Marketing, Category & Joint Plans 3.3 Implement & Evaluate 24

25 The ECR C&SJF Tool kit C&SJ Insights Models - Segmentation The Consumer & Shopper Segmentation Model helps select the focus consumer-shoppers (WHO) and answer core business questions in a sequential segmentation approach Value / Potential /Risk Consumer/Shopper Needs Shopper Missions Core Business Questions Who are my most valuable consumer-shoppers? What is my potential for growth? What is my risk for 'loss'? How to work solutions to attract my most important consumershoppers? How to build the lifecycle strategy for my brand? Which segments show high affinity to brands vs. private label products? Which shopping missions drive my most important consumershoppers? What are the right communication channels to influence them? What does that mean for my store format and layout strategy Example Segments "big spenders", "regular small baskets", "occasional large trolleys", "high potentials", "valuable shoppers at risk", "convenience shoppers", "budget shoppers", "health concerns", "fresh foodies", "affluent singles", "families with babies", "best agers", "big main weekend shopping", "top up", "lunch time", "treat myself", "news in the morning", Data Sources loyalty data panel data (GfK, Nielsen, etc.) market research data (TNS, GfK, Nielsen, etc.) ec-cash / credit-card data 25

26 Database richness The ECR C&SJF Tool kit C&SJ Insights Models - Segmentation The degree to which different methodologies can be implemented in practice depend on analytical capabilities and database richness Example Value segmentation based on loyalty card data Additional data sources (e.g. household panel, surveys, micro-geographics) for follow-up analysis Behavioural needs segmentation based on loyalty card data Additional data sources (e.g. household panel, surveys, micro-geographics) for follow-up analysis Value segmentation based on simple small sample questionnaire or survey data Psychographic needs segmentation based on complex survey or panel data Degree of analytical capabilities 26

27 The ECR C&SJF Tool kit C&SJ Insights Models Segmentation Combining retailer and supplier segmentations generates deeper insights to create a 360 shopper marketing solution along the consumer and shopper journey Manufacturer Example Retailer Example has survey based segmentation e.g. on health conscious consumers and insights about lifestyle aspirations motivations information needs product usage etc. is able to develop the right product solutions and help customizing BTL advertising messages has scanner/payment or loyalty card data based segmentation on shopper needs types and insights in which channels, formats or stores health conscious consumers shop when they shop what they shop cross category which promotions mechanisms they are subject to respond how loyal they are to brand and retailer etc.

28 The ECR C&SJF Tool kit C&SJ Insights Models Segmentation Aligning segmentations to match insights for specific consumer/shopper segments can be done data based (see example) or often simply by using common sense data based needs segmentation (retailer) premium healthy eaters convenience traditionals budget baby families survey based manufacturer segmentation (e.g. oral care) beauty oriented health oriented family oriented index 145 index 170 index 115 index 120 Example: match of customer segments via hhld panel data, base

29 The ECR C&SJF Tool kit C&SJ Insights Models Main Insights Model For the chosen segments, a deeper understanding is now required.. Foundation: Consumer & Shopper Segmentation Foundation: Consumer & Shopper Journeys Insights Model 29

30 The ECR C&SJF Tool kit C&SJ Insights Models Main Insights Model WHO? Target Shopper Segment: Shopper Segment XYZ (selected in Segmentation phase of Strategic Steps) Journey Steps Decisions to build Journey Questions to Build Insights around the Journey Information Sources Basic Advanced WHY Consumption 1. What are their Consumption Behaviours & Motivations? What are the key categories & behaviours we want to influence? 1. What is their (Household s) current Consumption behaviour? (Who is consuming what, when, how) 2. Why do they consume this way? (who influences etc) 3. What influences them to make behaviour changes and to plan a shopping trip? (Barriers & Triggers) XXX XXX WHERE Mission/ Channel/ Store 2. What are their Missions & Channel Behaviours & Motivations? What are the Missions & Channels we want to focus on? 1. What are their current Mission & Channel choice and spend behaviours? 2. Why? What motivates them to make these choices? 3. What influences them to change Mission & Channel Choice? (Barriers & Triggers) XXX XXX WHAT Purchase Behaviour 3. What are Store Choice Behaviours & Motivations? 4. What are their Category Selection Behaviours & Motivations? For the selected Mission & Channel, Which Store are we going to focus on? For the Selected Store(s), which selection of Categories will we focus on? 1. What are their current Store Choice and spend behaviours in this channel? 2. Why? What motivates them to make these choices? 3. What influences them to change Store? (Barriers & Triggers) 1. What are their current Category Choices and spending profile in this store(s)? 2. Why? What motivates them to make these choices? 3. What influences them to change behaviour? (Barriers & Triggers) XXX XXX See separate guides on next page XXX XXX and in appendix 5. What are their Purchasing Behaviours & Motivations? For the Selected Categories.. 1. For the selected categories, what is their current product/brand/spend behaviour? 2. Why? What motivates them - what is their Purchase Decision Hierarchy? 3. What is their in-store decision making process? 4. What influences them to change behaviour? (Barriers & Triggers) XXX XXX HOW Post Purchase Evaluation 6. What are their Post Purchase Behaviours & Motivations? N/A 1. For the selected Shopper Journey, what is their post purchase evaluation behaviour? 2. What are the key post purchase factors that have a positive or negative impact on their view of the journey? XXX XXX 30

31 The ECR C&SJF Tool kit C&SJ Insights Models Main Insights Model We have constructed Guides to support Research Planning.. (See Appendix) overview of research methods observation survey behaviour measurement eye tracking interviews household panel Foundation: consumer & shopper journeys model virtual shopping video observation shopper research box shopper flow studies etc. focus groups mapping individual depth interviews etc. customer data driven research - customer card data - banking card data - epos data qualitative / quantitative qualitative / quantitative quantitative 31

32 The ECR C&SJF Tool kit C&SJ Insights Models Main Insights Model Outputs WHO? Target Shopper Segment: Young Mums of smaller Families, Bulk Grocery Shop in B&M outlets, Soft Drinks Level 1 & 3 Examples to be developed after pilots Journey Steps Decisions Made to Build Journey All Categories What They Do/ Spend Key Reasons / Motivations Focus Category(ies) How they can they be influenced? What are the Key Opportunities? Opportunity Value? ( ) WHY Consumption 1. What are their Consumption Behaviours & Motivations? Focus is on the Take Home Soft Drinks Category N/A Household consumes 163 litres of soft drinks Average 12 drinking occ ns per week 38% of home meals involve a soft drink 25% consumption by Kids Quench thirst = #1; Keep kids happy = #2 Mum is gatekeeper for Kids Key meal types more likely to drive soft drinks consumption e.g. XXXX When its gone, it s gone - soft drinks not a driver of trip planning Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment 6m in the market WHERE Mission/ Channel/ Store 2. What are their Missions & Channel Behaviours & Motivations? Focus on Bulk Shop Mission in Bricks & Mortar Grocery Outlets Target Shopper undertakes 153 all category shopping missions per year spending 6,100 Focus Mission & Channel is 26 times a year value 1,840 Target Shopper undertakes X shopping missions per year to buy soft drinks spending X Of the 26 Focus Mission & Channel trips, X% involve soft drinks spending Convenience - one stop shop for grocery and fresh foods Broader Assortment and prices seen as better value than other channels High Service levels in other channels or category killer pricing encourage switching into other channels Attract share of wallet from other channels via nongrocery categories by further 5% (+1.5% points) 90m channel opp tunity 3. What are Store Choice Behaviours & Motivations? Focus is on ACME Retail vs its key competitors Target Shoppers spend at ACME index at 95 vs channel, Frequency is as expected but trip spend is at index 94 Target Shoppers spend at ACME index 90 vs channel Frequency is as expected but trip spend is at index 91 ACME seen as equal but not better value to competition Target Shoppers criticise ACME soft drinks assortment want more value packs Highlighting Value Offerings in ACME Driving Basket Spend Per Visit Gaining ACME s fair share spend index across all categories Gaining ACME s fair share spend index for soft drinks 23m 1.5m WHAT Purchase Behaviour 4. What are their Category Selection Behaviours & Motivations? Focus is on Soft Drinks Top X Categories by spend are XXX YYY ZZZ Target Household buys soft drinks 3.1 litres 9 times a year worth Average ACME Household buys 4.2 litres 10 times a year, worth Purchase Decision Hierarchy suggests pack size (multi v single) is high up Everyday basics as the focus in each category Highlighting Value multipacks Value in everyday basics Increasing Basket Spend of Soft Drinks to shopper average From XX with target shoppers= +X% Xm 5. What are their Purchasing Behaviours & Motivations & Instore decision process? Focus is on Soft Drinks All Categories spend on Retailer Brand v Brands is X:Y Soft Drinks: Brand A = 40% Brand B = 20% ROB = 20% Fastest growing brand is Brand B Brand B is mid tier brand with bigger pack sizes trading on a value position Displays and Promotions in Power Aisle CRM Mechanic X Using Brand B to drive value message Ym HOW Post Purchase Evaluatio n 6. What are their Post Purchase Behaviours & Motivations? Focus is on Soft Drinks NA Household typically consumes take home soft drinks within 1 week of purchase, longer in winter, less in summer Mum values family feedback most in evaluating product performance Products that engage the family with on-pack communication/ competitions etc N/A 32

33 The ECR C&SJF Tool kit C&SJ Insights Models Mapped CS&J model outputs help identify the opportunities and their value ( ) directing WHICH opportunities to focus on and HOW to unlock them.. Shopper Segment / Journey 1 Wm Shopper Segment/ Journey 2 Xm Shopper Segment/ Journey n Ym Mapped Shopper Journeys The Growth Opportunities Zm 33

34 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 34

35 The ECR C&SJF Tool kit Overview of the Core Process What is the Core Process? Foundation: Consumer & Shopper Segmentation 1.1 Set internal Direction/Roadmap 1. Strategic Context/ Preparation 1.2 Segment, Understand & Select Target Consumers and Shoppers 1.3 Select & Engage Target Partners Foundation: Consumer & Shopper Journeys Insights Model 2.1 Align on Shopper Targets 2. Strategic Alignment 2.2 Merge Shopper Journey Insights 3. Business Planning & Implementation 2.3 Set High Level Shopper Strategies Business Planning Guide & Tools 3.1 Identify Scope of Planning 3.2 Revise Shopper Marketing, Category & Joint Plans 3.3 Implement & Evaluate 35

36 The ECR C&SJF Tool kit Overview of the Core Process The Business Process enables us to build and use Consumer & Shopper Journey Insights The Strategic Context and Alignment steps primarily focus on Who, Why, Where Insights The Business Planning & Implementation step primarily focuses on How & What Insights 36

37 The ECR C&SJF Tool kit Core Process (1) Strategic Context & (2) Strategic Alignment Overview of The Strategic Steps.. Retailer Strategic Context/Preparation Questions 1. Who are my most valuable shoppers and why? 2. Where do they shop and why? 3. How can I meet the expectations of those shoppers in a superior way? 4. What are their consumer needs and aspirations? 5. What are the opportunities to improve my position in my target segments against my competition? 6. Who can help me build a superior proposition to make me win? Supplier Strategic Context/Preparation Questions 1. Who are my most valuable consumers and shoppers? 2. How can my brand proposition be superior in delivering my target consumers and shoppers satisfaction? 3. Where do my most valuable consumers & shoppers shop? 4. Where do I want to play tomorrow? 5. Where will my initiatives deliver the highest impact with my most valuable consumers? Shared Strategic Alignment Questions 1. How can we align common target setting for shopper & consumer segments? 2. What are the Shopper Journeys we want to win with for our chosen targets? (shopping missions, channels / store format / etc. ) 3. What are the growth opportunities identified by the C&SJF we want to focus on together and what are they worth? 4. What strategies will ensure our mutual strength delivers maximum impact along the merged consumer & shopper journey(s)? 37

38 The ECR C&SJF Tool kit Core Process (1) Strategic Context & (2) Strategic Alignment The Strategic Context/ Preparation Steps take place independently in each business partner.. Retailer Strategic Context/Preparation Questions 1. Strategic Context/Preparation Supplier Strategic Context/Preparation Questions 1. What is the business issue I am trying to address? 2. Who are my most valuable shoppers and why? 3. Where do they shop and why? 4. How can I meet the expectations of those shoppers in a superior way? 5. What are their consumer needs and aspirations? 6. What are the opportunities to improve my position in my target segments against my competition? 7. Who can help me build a superior proposition to make me win? Retailer 1.1 Set internal Direction/Roadmap 1.2 Segment, Understand & Select Target Consumers and Shoppers 1.3 Select & Engage Target Partners 2.1 Align on Shopper Targets 2. Strategic Alignment 2.2 Merge Shopper Journey Insights Supplier 1.1 Set internal Direction/Roadmap 1.2 Segment, Understand & Select Target Consumers and Shoppers 1.3 Select & Engage Target Partners 2.3 Set High Level Shopper Strategies 1. What is the business issue I am trying to address? 2. Who are my most valuable consumers and shoppers? 3. How can my brand proposition be superior in delivering my target consumers and shoppers satisfaction? 4. Where do my most valuable consumers & shoppers shop? 5. Where do I want to play tomorrow? 6. Where will my initiatives deliver the highest impact with my most valuable consumers? 38

39 The ECR C&SJF Tool kit Core Process (1) Strategic Context & (2) Strategic Alignment The Strategic Alignment Step is collaborative.. 1. Strategic Context/Preparation Shared Strategic Alignment Questions Retailer 1.1 Set internal Direction/Roadmap 1.2 Segment, Understand & Select Target Consumers and Shoppers Supplier 1.1 Set internal Direction/Roadmap 1.2 Segment, Understand & Select Target Consumers and Shoppers 1. How can we align common target setting for shopper & consumer segments? 2. What are the Shopper Journeys we want to win with for our chosen targets? 1. shopping missions 2. channels / store format / etc. 1.3 Select & Engage Target Partners 1.3 Select & Engage Target Partners 3. What are the growth opportunities identified by the C&SJF we want to focus on together and what are they worth? 2.1 Align on Shopper Targets 2. Strategic Alignment 2.2 Merge Shopper Journey Insights 2.3 Set High Level Shopper Strategies 4. What strategies will ensure our mutual strength delivers maximum impact along the merged consumer & shopper journey(s)? 39

40 The ECR C&SJF Tool kit Core Process (1) Strategic Context & (2) Strategic Alignment The output of Strategic Alignment is a clear set of choices, or strategy for the chosen shopper segment(s) C&SJ Business Planning Shopper Segment(s) Strategy Target Shopper Segment : Young Mums of Smaller Families Target Consumer/Shopper Journey: High Level Shopper Strategy: Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Soft Drinks Encourage Young Mums to Increase their basket size at Retailer X using Soft Drinks Target Categories & Products: Primary: Soft Drinks Secondary: Snacking Target Behaviour Change & Prize: Increase Basket Size of Target Shopper at ACME retail using Soft Drinks as a lead category Increasing from A to B will be worth Xm 40

41 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 41

42 The ECR C&SJF Tool kit Core Process (3) Business Planning The C&SJ Business Planning Implications Summary is a critical tool to help translate the Insights and Strategy from the previous steps into Actions.. It can be used directly by Level 3 Players It can be used to help scope Business Planning by Level 2 & 1 players Insights Summary & Shopper Strategy Business Planning Implications Summary 42

43 The ECR C&SJF Tool kit Core Process (3) Business Planning - Business Planning Implications Summary C&SJ Business Planning Scoping & Implications Summary Target Shopper Segment : Target Consumer/Shopper Journey: High Level Shopper Strategy: Young Mums of Smaller Families Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Soft Drinks Encourage Young Mums to Increase their basket size at Retailer X using Soft Drinks Target Categories & Products: Primary: Soft Drinks Secondary: Snacking Target Behaviour Change: Increase Basket Size of Target Shopper at ACME retail using Soft Drinks as a lead category Increasing from A to B will be worth Xm Journey Steps Opportunities from C&SJ Insight Model (To guide Business Planning Choices) Touch Points Shopper Marketing Communication Business Planning: Marketing Programme/ Tactical Implications Category Management Execution Assortment Merch. Price Promo Operational Tactics Inc. Customer Service JBP/JAG Implications WHY Consumption Consumption Opps: ben vs cost CONSUME* Stimulate Consumption WHERE Mission/ Channel/ Store Mission/ Channel Opps: ben vs cost Store Choice Opps: ben vs cost AWARENESS Stimulate Purchase Planning WHAT Purchase Behaviour Category Sel n Opps: ben vs cost ATTRACT Across The Store ENGAGE Near the Shelf Purchase Choice Opps: ben vs cost MOTIVATE At Shelf PURCHASE Close the Sale HOW Post Purchase Evaluation Post Purchase Opps: ben vs cost REINFORCE* Follow up the Sale 43

44 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 44

45 The ECR C&SJF Tool kit Business Planning Guide Shopper Marketing CS&J insights drive the direction and creation of Shopper Marketing Platforms & Programmes Strategic Context Development What does Winning mean? 1. Who are the Target Shopper Segments we need to target and what are our high level Shopper Strategies? Strategic Alignment Platform Development Who Will we win with? How will we win? 2. Which touch points in the Shopper Journey(s) should we target for maximum impact? Programme Development What are we going to do? 3. Which mechanics will be most effective and efficient to target the shoppers? 45

46 The ECR C&SJF Tool kit Business Planning Guide Shopper Marketing C&SJ Insights are essential for developing Shopper Marketing Platforms & Programmes Platform Definition Name: Get Fresh With Us Objective: Drive penetration and frequency in perishables with core and mid-loyal shoppers. Description: Delivering fresh, healthy alternatives that are good tasting and good for you. Key Message / Theme: Our food is so fresh, you ll think we grew it out back Platform Target Shopper Segment(s): Foodies, families, young healthminded couples Geographies / Store Clusters: Upscale urban and suburban stores Departments / Categories: Produce Prepared Foods Performance Targets & Measures Sales: + 7% Profit: +10% Shopper: Two additional trips per month 46

47 The ECR C&SJF Tool kit Business Planning Guide Shopper Marketing C&SJ Insights are essential for developing Shopper Marketing Platforms & Programmes 47

48 8. Category Review The ECR C&SJF Tool kit Business Planning Guide Category Management CS&J insights can inform Category Management decisions at every stage.. 1. Category Definition 2. Category Role What products make up the category? Are there specific products this Shopper Segment require of this category? What is its structure? Do we need to adapt the structure of any part of the category to reflect the CS&J insights? How important is the category to our business? Is this Category more important to the target shopper segment and does its role change? 3. Category Assessment How is the category performing? Where are the issues & opportunities? Are there specific insights and opportunities for the target shopper segment? 4. Category Scorecard What scorecard measures do we want to change? What are the specific scorecard measure for the target shopper segment? 5. Category Strategies What are the big ideas that will achieve the role & scorecard objectives? What are the strategies we need to develop specifically for the target shopper segment? 6. Category Tactics What do we do with Assortment, Display, Pricing & Promotions to achieve the strategy? Which tactics have greatest appeal to the target shopper segment? 7. Implementation Who does what, when? (Consumer & Shopper Journey Insights impact Questions in Red) 48

49 The ECR C&SJF Tool kit Business Planning Guide Category Management Within Category Management C&SJ Insights can significantly enhance Category Assessment.. In Store? What are Shoppers doing to drive these? Who Buys the Category and what are their needs? What are the Macro Trend Issues & Opportunities? What are the Sales & Profit Performance Issues in the Category? What are Retailers & Manufacturers doing to drive these? Out of Store? In Store? Out of Store? Overview of a Typical Category Assessment 49

50 The ECR C&SJF Tool kit Business Planning Guide Category Management Within Category Management, C&SJ Insights help us to create Sharper Category Strategies.. Clearer on the Target Shoppers and their needs.. Targets - Shoppers - Behaviour Change - Products Tactics -Assortment -Pricing & Promotion -Merchandising -Service Clearer on the best Tactics to use.. One More in the Basket Clearer on the Barriers we need to address.. Barriers to Overcome - Out of Store Barriers - In Store Barriers Encourage Shoppers to increase the number of packs they buy on each visit to the Category.. Triggers to Focus on - Out of Store Triggers - In Store Triggers Clearer on the Triggers we need to focus on.. 50

51 The ECR C&SJF Tool kit Business Planning Guide Category Management - Assortment 3.2 Translate into Relevant Category Plans Within Category Management, C&SJ Insights help us to build Assortments that are better at and more efficient at meeting Target Shopper Needs.. 1. Strategic Direction Who are the Shoppers Segments we Targeting and how do they define/ structure/ buy the category? What are their unique Assortment Needs? What should the balance be between meeting needs of Target v Other Shoppers? What role does the Category have and what are our Category Strategies? 2. Market Coverage (Range Breadth) How important is each sub Category to our target shopper segment(s)? How important is each sub Category to our chosen Category Strategies? What are the characteristics of each sub category (productivity/ efficiency etc) 3. SKU Assessment How important are borderline SKUs to target Shopper Segment(s)? How important are borderline SKUs from a commercial/ competitive perspective? 4. Shopper based Assortment Finalisation How well do we cover off the unique needs of the target Shoppers Segment(s) What Gaps do we need to close and what Duplication could be removed? Are there any further adjustments to make Category Strategies more effective? 5. Quantification What net Sales & Profit impact will the Proposed Changes Have? What impact will the proposed changes have on the buying behaviour of the Target Shopper Segments? 6. Implementation What are the Shopper Journey Insights that can help us implement more effectively? What do we need to do to implement the proposed changes? (Consumer & Shopper Journey Insights impact Questions in Red) 51

52 The ECR C&SJF Tool kit Business Planning Guide Category Management - Assortment 3.2 Translate into Relevant Category Plans Within Category Management, C&SJ Insights help us ensure that Sub Category Assortments are more closely aligned to the Purchase Process of our Target Shoppers.. Target Shopper Sub Category Purchase Decisions Sub Category: Drink Now Still Drinks Regular (1) Lite (1) 330ml (3) 500ml (3) Pouch (3) Carton (3) 330ml (3) 500ml (3) Pouch (3) Carton (3) 1. Sugar Level Orange (2) SKU 1 SKU 16 Duplication? SKU 18 SKU 2 SKU 8 SKU 10 SKU 15 SKU 20 SKU 22 SKU 28 Duplication? SKU 13 SKU 27? Gaps?? 2. Flavour?? Lemon (2) SKU 12 SKU 9 Gaps? SKU 21 SKU 23 SKU 29 SKU 31? Gaps?? 3. Size??? Lime (2) SKU 4 SKU 17 SKU 24 SKU 33 SKU 25 SKU 30 52

53 The ECR C&SJF Tool kit Business Planning Guide Joint Business Planning/JAG CS&J insights help us focus our JBP/JAG plans on the right shoppers, the right growth levers and the right tactics.. Step 1 What are the shopper insights and opportunities for our target shopper segment we need to reflect? Step 2 What are the growth levers that will have specific appeal to the target shopper segment? Step 3 What are the specific tactical activations that will have appeal to the target shopper segment? 53

54 The ECR C&SJF Tool kit Business Planning Guide Joint Business Planning/JAG The CS&J insights provide Direction for the Shopper Metrics section of the JAG plan.. 54

55 Contents 1. Introduction 1. Set Up & Definitions 2. What is a Consumer & Shopper Journey? 3. How are Consumer & Shopper Journey Insights used? 2. The ECR C&SJF Tool kit 1. Overview 2. C&SJ Insights Models 3. Overview of the Core Process 4. Core Process (1) Strategic Context & (2) Strategic Alignment 5. Core Process (3) Business Planning 6. Business Planning Guide 3. Roadmap to Build CS&J Capability 55

56 Roadmap to Build CS&J Capability What This Will Help You Achieve For a Retailer CS&J will help me Identify focus categories and suppliers to meet my target shoppers needs Identify the focus behaviour change for my target shopper groups Develop the most effective and targeted shopper programs to meet my target shoppers needs Develop the most effective and targeted shopper platforms to meet my target shoppers needs Develop enhanced category plans that incorporate new shopper understanding to build more effective range and space recommendations Develop more focussed business (JAG) plans with selected suppliers that are delivering KPI s against the target shopper segments 56

57 Roadmap to Build CS&J Capability What This Will Help You Achieve For a Supplier CS&J will help me Identify the key channels to attract my target shoppers Identify the focus customers to collaborate with to meet my target shoppers needs Select the most effective touch points and communication channels to engage my target shoppers Develop the most effective and targeted brand activation plans to meet my target consumer and shopper needs Develop the most effective and targeted brand shopper marketing plans, in collaboration with chosen customers, to meet my target consumer and shopper needs Develop enhanced category plans that incorporate new shopper understanding to build more effective range and space recommendations Develop more focussed business (JAG) plans with selected customers that are delivering KPI s against the target shopper segments for my brands 57

58 Roadmap to Build CS&J Capability Assessing Your Current Capability Does your company understand the importance of the shopper and the opportunity? Is your organisation fully aligned behind the shopper opportunity? Do you have in depth understanding of your current and target shoppers? Do your current data sources embrace shopper understanding and insight? Have you aligned resource against the shopper opportunity people and investment? Does your business structure facilitate end to end' solutions insight to execution? Do you have the right skills and capabilities to maximise the return on investment? Are your commercial propositions truly Win, Win, Win customer, shopper, supplier? Do you have a comprehensive evaluation plan and process? Source: IGD Maximising The Impact of Trading Relationships Report

59 APPENDIX 59

60 There are different kinds of research methods that can be used to measure and understand shopper behaviour overview of research methods observation survey behaviour measurement eye tracking interviews household panel Foundation: consumer & shopper journeys model virtual shopping video observation shopper research box shopper flow studies etc. focus groups mapping individual depth interviews etc. customer data driven research - customer card data - banking card data - epos data qualitative / quantitative qualitative / quantitative quantitative Source: Shopper Research Methoden - Beschreibung und Bewertung, 2010, GS1 Germany 60

61 The first step is about identifying the relevant consumer/ shopper segments, their main characteristics and potentials for growth Methods to segment consumers/ shoppers Research Method Datasources Tools / Methodologies basic approach advanced Questionaire Loyalty Card Sign Up Segmentations and shopper profiles based on predefined shopper attributes (age, income, lifestage, etc.) x Survey Panel Research (existing / individual) Segmentations and shopper profiles based on predefined panel clusters/milieurs (e.g. Sinus, limbic types) or individually developed attitudinal segmentations x WHO? Ad hoc Surveys (online, tel, instore, etc.) Segmentations and shopper profiles based on specificly designed questions x x Household and Consumer Panels Segmentations and shopper profiles based on observed quantity (RFM) and quality (need based) of actual shopping behaviour x x Behavioural Measurement Payment Card Transactions Segmentations and shopper profiles based on observed quantity (RFM) and quality (need based) of actual shopping behaviour x Loyalty Card Transactions Segmentations and shopper profiles based on observed quantity (RFM) and quality (need based) of actual shopping behaviour x 61

62 The second step is about understanding the reasons, motives and influences that trigger a specific "shopping mission" methods to understand mission drivers Research Method Datasources Tools / Methodologies basic approach advanced Qualitative Research (e.g. focus groups) Identify most relevant shopping missions and gain in depth understanding of underlying reasons and motives x Survey Panel Research (existing / individual) or adhoc surveys Quantify the relevance of different shopping missions for shopper segments and identify and quantify factors that impact shopping missions (e.g. location or competitors) x WHY? Household and Consumer Panels Identify shopping missions through quantitative analysis; combine survey based and behavioural insights x Behavioural Measurement Scanner data Loyalty or Paycard data Identify shopping missions through quantitative analysis; provide quantitative insights into shopping missions Identify shopping missions through quantitative analysis; provide quantitative insights into shopping missions x x x Promotional Contact / Multichannel Communication History Marketing efficiency modelling (ATL, BTL) - see details in Business Planning x 62

63 The next step is about understanding the shopper's choice drivers among the channels / formats and stores methods to understand channel/format/store choice drivers Research Method Datasources Tools / Methodologies basic approach advanced Panel Research Direct questions on channel / format / banner preference to identify major channel / format / banner choice drivers x Survey Ad hoc Surveys (online, tel, instore, etc.) Direct questions on channel / format / banner preference to identify major channel / format / banner choice drivers Catchment area definition by check-out surveys x WHERE? Household and Consumer Panels Analysis of channel / format / banner choices based on actual behaviour; Identification of choice drivers through link with shopper attributes, segments, mission preferences x Behavioural Measurement Scanner data Analysis of mission preferences (as identified in the data) across stores and formats, which allows some conclusions about choice drivers x Loyalty or Paycard data Analysis of channel / format / banner choices based on actual behaviour; Identification of choice drivers through link with shopper attributes, segments, mission preferences x Geodemographic data Catchment area analysis per segment and mission x 63

64 The next step is about understanding the behaviour of shoppers in each channel/ format/ store and how this is influenced and activated methods to understand buying behaviour Research Method Datasources Tools / Methodologies basic approach advanced Eye tracking Analysis of orientation and search behaviour in store x Virtual Shopping Analysis of orientation, search behaviour and purchase in store, allows test of new products and commercial concepts x Observation Video Observations Analysis of complete shopping process orientation, search behaviour, shopper paths, purchase behaviour) x WHAT? Shopper Research Box Customer Flow Analysis Analysis of orientation, at the same time tracking of changes in the shelf Analysis of orientation, information and purchase behaviour instore (hidden observation or accompanied shopping) Interviews Standardised questionnaire before and/or after purchase x x x Focus Groups Interactive group setting with direct and open questions on shopping experience and reasons for shopping decisions x Survey Mapping Individual Depth Interview mapping of products regarding different product attributes, revealing which attributes are most important and decisive to the shopper Direct and open questions on shopping experience and reasons for shopping decisions x x Household and Consumer Panels Identify shopping behaviour through quantitative analysis; combine survey based and behavioural insights x Behavioural measurement Scanner data Identify shopping behaviour through quantitative analysis x Loyalty or Paycard data Shopper decision trees Price sensitivity and price elasticity analysis Promotion impact analysis Shelf space elasticity analysis x 64