The Consumer & Shopper Journey. Veronique Hombroekx Vice President Global Customer Kraft Foods

Transcription

1 The Consumer & Journey Veronique Hombroekx Vice President Global Customer Kraft Foods

2 Understanding the shopper rising up the agenda Q: Which THREE areas do you think will be the key focus of your trading relationships in the year ahead? A: Understanding the shopper Understanding the shopper continues to rise up the agenda, with industry consensus suggesting it will be at the forefront of trading relationships in three years time. Both suppliers and retailers are willing to engage more strategically as it is increasingly recognised that long-term success is linked to a collaborative, shopper centric strategy. ECR Emnos TPG Consumer & Journeys Framework

3 Consumer focus shopper Store Channel Category Brand Retailer Store Channel Category Brand Manufacturer ECR Emnos TPG Consumer & Journeys Framework

4 The best insights come from thinking of a Consumer and journey as a circular process.. Who are the Consumers and s? How do they evaluate their purchase? 1.The Consumer / s are consuming 6.Consumers / shoppers evaluate the purchase decision 2.Consumers / s are influenced Why do they Consume? do they plan a trip? What do they choose to buy? 5. Makes a Purchase 3.Consumer / Creates a 4. Makes a Channel and Banner Choice Where do they choose to shop? ECR Emnos TPG Consumer & Journeys Framework

5 Reframe the business opportunity across the shopper journey Ensure the objective is a meaningful business opportunity, grounded in clearly identified consumer and shopper behaviour, against a clearly defined consumer/shopper target. Therefore it should: 1. Identify the 5W s for the opportunity i.e.: Who? Target Consumer/ What? Behaviour Change Desired i.e. More Penetration; More Frequency or More Consumption (including instead of What...) Why? Need States/Motivations When? Consumption Occasions (Weekday/Weekends/Time of Day) Where? Home/Out of Home 2. Estimate the Size of the Prize is this a opportunity worth putting the resources against developing Marketing activations? ECR Emnos TPG Consumer & Journeys Framework

6 The revenue equation The Consumer & Journey Framework

7 The ECR C&SJF Tool kit The ECR Consumer & Journey Toolkit consists of 3 parts 1. Insights Models Foundation: Consumer & Segmentation 2. Process for Consumer/ Identification and Collaborative Working 1.1 Set internal Direction 1. Strategic Context/ Preparation 1.2 Segment, Understand & Select Target Consumers and s 1.3 Select & Engage Target Partners 3. Business Planning Guide Foundation: Consumer & Journeys Insights Model 2.1 Align on Targets 2. Strategic Alignment 2.2 Merge Journey Insights 3. Business Planning & Implementation 2.3 Set High Level Strategies Business Planning Guide & Tools 3.1 Identify Scope of Planning 3.2 Revise Marketing, Category & Joint Plans 3.3 Implement & Evaluate ECR Emnos TPG Consumer & Journeys Framework 7

8 1.Insights model Value / Potential /Risk Consumer/ Needs 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 consumer shoppers? 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 The Consumer & Journey Framework

9 The ECR C&SJF Tool kit The ECR Consumer & Journey Toolkit consists of 3 parts 1. Insights Models Foundation: Consumer & Segmentation 2. Process for Consumer/ Identification and Collaborative Working 1.1 Set internal Direction 1. Strategic Context/ Preparation 1.2 Segment, Understand & Select Target Consumers and s 1.3 Select & Engage Target Partners 3. Business Planning Guide Foundation: Consumer & Journeys Insights Model 2.1 Align on Targets 2. Strategic Alignment 2.2 Merge Journey Insights 3. Business Planning & Implementation 2.3 Set High Level Strategies Business Planning Guide & Tools 3.1 Identify Scope of Planning 3.2 Revise Marketing, Category & Joint Plans 3.3 Implement & Evaluate ECR Emnos TPG Consumer & Journeys Framework 9

10 1. Strategic context preparation Key Questions Journey Steps Insights Opportunities The Consumer & Journey Framework 10

11 6. Consumer/ evaluates the Purchase Decision 5. makes a Purchase consuming 4. makes a Channel and influenced creates a C&SJ Insights Summary for: Mums of Smaller Families, Bulk Grocery Shop in B&M outlets, Soft Drinks (Fictional) Journey Steps / Lead Questions 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? ( ) Consuming Influenced Consumption 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 in the home, 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 creates a Shopping Mission Missions & Channel Focus on Bulk Shop Mission in Bricks & Mortar Grocery Outlets Target undertakes 153 all category shopping missions per year spending 6,100 Focus Mission & Channel is 26 times a year value 1,840 Target 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 non grocery categories by further 5% (+1.5% points) 90m channel opp tunity 4. makes a Channel and Banner Choice Store Choice Focus is on ACME Retail vs its key competitors Target s spend at ACME index at 95 vs channel, Frequency is as expected but trip spend is at index 94 Target s 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 s criticise ACME soft drinks assortment want more value packs Highlighting Value Offerings in ACME Social Media campaigns with Voucher incentives encourage Banner loyalty 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 5. makes a Purchase Category Selection 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 Purchasing 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 6. Consumer/ evaluates Purchase Decision Post Purchase 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 onpack communication/ competitions etc N/A The Consumer & Journey Framework

12 2. Strategic alignment C&SJ Business Planning Segment(s) Strategy Target Segment Target Consumer/ Journey High Level Strategy Target Categories & Products Target Behaviour Change & Prize Young Mums of Smaller Families Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Meals for The Family at ACME Retail Convert Young Mums to shop at ACME using Soft Drinks Soft Drinks & Quick and Easy Family Meals; Brand X Increase conversion at ACME Retail of Target ; Increased Conversion of Soft Drinks Increasing from A to B will be worth Xm The Consumer & Journey Framework

13 6. Consumer/ evaluates the Purchase Decision consuming influenced 5. creates a makes a Purchase 4. makes a Channel and consuming 6. Consumer/ evaluates the Purchase Decision influenced 5. creates a makes a Purchase 4. makes a Channel and 3. Business planning INSIGHT AND STRATEGY DRIVES...PLAN ON A PAGE C&SJ Insights Summary for: Mums of Smaller Families, Bulk Grocery Shop in B&M outlets, Soft Drinks (Fictional) Journey Steps / Lead Questions Decisions Made to Build Journey What They Do/ Spend Key Reasons / Motivations All Categories Focus Category(ies) How they can they be influenced? What are the Key Opportunities? Opportunity Value? ( ) Consuming Influenced creates a Shopping Mission Consumption Missions & Channel Focus is on the Take Home Soft Drinks Category Focus on Bulk Shop Mission in Bricks & Mortar Grocery Outlets 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 Target Target undertakes 153 all undertakes X shopping category shopping missions per year to buy missions per year soft drinks spending X spending 6,100 Of the 26 Focus Mission & Focus Mission & Channel trips, X% involve Channel is 26 times soft drinks spending a year value 1, Quench thirst = #1; Keep kids happy = #2 Mum is gatekeeper for Kids Convenience one stop shop for grocery and fresh foods Broader Assortment and prices seen as better value than other channels Key meal types more likely to drive soft drinks consumption e.g. XXXX When its gone in the home, it s gone soft drinks not a driver of trip planning High Service levels in other channels or category killer pricing encourage switching into other channels Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment Attract share of wallet from other channels via non grocery categories by further 5% (+1.5% points) 6m in the market 90m channel opp tunity Target Segment : Target Consumer/ Journey: High Level Strategy: Target Categories & Products: C&SJ Business Planning Summary Young Mums of Smaller Families Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Meals for The Family at ACME Retail Convert Young Mums to shop at ACME using Soft Drinks Soft Drinks & Quick and Easy Family Meals; Brand X 4. makes a Channel and Banner Choice 5. makes a Purchase 6. Consumer/ evaluates Purchase Decision Store Choice Category Selection Purchasing Post Purchase Focus is on ACME Retail vs its key competitors Focus is on Soft Drinks Focus is on Soft Drinks Focus is on Soft Drinks Target s spend at ACME index at 95 vs channel, Frequency is as expected but trip spend is at index 94 Top X Categories by spend are XXX YYY ZZZ All Categories spend on Retailer Brand v Brands is X:Y Target s spend at ACME index 90 vs channel Frequency is as expected but trip spend is at index 91 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 Soft Drinks: Brand A = 40% Brand B = 20% ROB = 20% Fastest growing brand is Brand B NA Household typically consumes take home soft drinks within 1 week of purchase, longer in winter, less in summer ACME seen as equal but not better value to competition Target s criticise ACME soft drinks assortment want more value packs Purchase Decision Hierarchy suggests pack size (multi v single) is high up Everyday basics as the focus in each category Brand B is mid tier brand with bigger pack sizes trading on a value position Mum values family feedback most in evaluating product performance Highlighting Value Offerings in ACME Social Media campaigns with Voucher incentives encourage Banner loyalty Highlighting Value multipacks Value in everyday basics Displays and Promotions in Power Aisle CRM Mechanic X Products that engage the family with onpack communication/ competitions etc 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 Increasing Basket Spend of Soft Drinks to shopper average From XX with target shoppers= +X% Using Brand B to drive value message N/A 23m 1.5m Xm Ym Journey Steps Consuming Influenced creates a 4. makes a Channel and Target Behaviour Change: Opportunities from C&SJ Insight Model Touch Points (To guide Business Planning Choices) Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this CONSUME segment Stimulate Consumption Attract share of wallet from AWARENESS other channels via non grocery categories by further 5% (+1.5% Stimulate Purchase points) Planning Driving Basket Spend Per Visit Gaining ACME s fair share AWARENESS spend index across all Stimulate Channel & categories Gaining ACME s fair share spend index for soft drinks Increase conversion at ACME Retail of Target ; Increased Conversion of Soft Drinks. Increasing from A to B will be worth Xm Business Planning: Marketing Programme/ Tactical Implications Marketing Category Management Tactics Operational Tactics JBP Communication Inc. Customer Service Implications Assortment Merch. Price Promo TV and Press Advertising using JBP focus on large the Big Night In theme pack mix shift for showing great meal times as a retailer X family with a Soft Drink Social media Big Night In loyalty Store Briefing activity with vouchers off Brand X Pack to give staff great ideas to ACME Car Park Banners Big pass on to Night In Great Meal Ideas In s Store Now Target Segment Target Consumer/ Journey High Level Strategy C&SJ Business Planning Segment(s) Strategy Young Mums of Smaller Families Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Meals for The Family at ACME Retail Convert Young Mums to shop at ACME using Soft Drinks 5. makes a Purchase 6. Consumer/ evaluates Purchase Decision Increasing Basket Spend of Soft Drinks to shopper average From XX wi th target shoppers= +X% Using Brand B to drive value message N/A Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment Attract share of wallet from other channels via non grocery categories by further 5% (+1.5% points) ATTRACT Across The Store ENGAGE Near the Shelf MOTIVATE At Shelf PURCHASE Close the Sale REINFORCE Follow up the Sale Off Shelf Display for Brand X next to Pizza Meals Press Campaign Send us your Big Night In Meal Ideas Increase coverage on 2l Packs 2l Packs in Hot Spot 2l Packs Buy 3 Get 1 Free Buy Drink Get Pizza Free Deal Target Categories & Products Soft Drinks & Quick and Easy Family Meals; Brand X Target Behaviour Change & Prize Increase conversion at ACME Retail of Target ; Increased Conversion of Soft Drinks Increasing from A to B will be worth Xm The Consumer & Journey Framework

14 consuming 6. Consumer/ evaluates the Purchase Decision influenced 5. creates a makes a Purchase 4. makes a Channel and Target Segment : Target Consumer/ Journey: High Level Strategy: Target Categories & Products: Target Behaviour Change: C&SJ Business Planning Summary Young Mums of Smaller Families Aligned Strategy Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Meals for The Family at ACME Retail Convert Young Mums to shop at ACME using Soft Drinks Soft Drinks & Quick and Easy Family Meals; Brand X Increase conversion at ACME Retail of Target ; Increased Conversion of Soft Drinks. Increasing from A to B will be worth Xm Journey Steps Opportunities from C&SJ Insight Model (To guide Business Planning Choices) Touch Points Marketing Communication Business Planning: Marketing Programme/ Tactical Implications Category Management Tactics Assortment Merch. Price Promo Operational Tactics Inc. Customer Service JBP Implications Consuming Influenced Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment CONSUME Stimulate Consumption TV and Press Advertising using the Big Night In theme showing great meal times as a family with a Soft Drink JBP focus on large pack mix shift for retailer X creates a Attract share of wallet from other channels via non grocery categories by further 5% (+1.5% points) AWARENESS Stimulate Purchase Planning 4. makes a Channel and Journey Steps 5. makes a Purchase 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 Increasing Basket Spend of Soft Drinks to shopper average From XX with target shoppers= +X% Journey Insights AWARENESS Stimulate Channel & ATTRACT Across The Store Social media Big Night In loyalty activity with vouchers off Brand X ACME Car Park Banners Big Night In Great Meal Ideas In Store Now Increase coverage on 2l Packs Operational Plan 2l Packs in Hot Spot 2l Packs Buy 3 Get 1 Free Store Briefing Pack to give staff great ideas to pass on to s Using Brand B to drive value message ENGAGE Near the Shelf Off Shelf Display for Brand X next to Pizza Meals N/A MOTIVATE At Shelf Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment PURCHASE Close the Sale Buy Drink Get Pizza Free Deal 6. Consumer/ evaluates Purchase Decision Attract share of wallet from other channels via non grocery categories by further 5% (+1.5% points) REINFORCE Follow up the Sale Press Campaign Send us your Big Night In Meal Ideas The Consumer & Journey Framework

15 C&SJ Business Planning Summary consuming 6. Consumer/ evaluates the Purchase Decision influenced 5. creates a makes a Purchase 4. makes a Channel and Target Segment : Target Consumer/ Journey: High Level Strategy: Target Categories & Products: Target Behaviour Change: Young Mums of Smaller Families Bulk Grocery Shop in Bricks & Mortar Hypermarkets with a focus on buying Meals for The Family at ACME Retail Convert Young Mums to shop at ACME using Soft Drinks Soft Drinks & Quick and Easy Family Meals; Brand X Increase conversion at ACME Retail of Target ; Increased Conversion of Soft Drinks. Increasing from A to B will be worth Xm Journey Steps Opportunities from C&SJ Insight Model (To guide Business Planning Choices) Touch Points Marketing Communication Business Planning: Marketing Programme/ Tactical Implications Category Management Tactics Assortment Merch. Price Promo Operational Tactics Inc. Customer Service JBP Implications Consuming Influenced Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment CONSUME Stimulate Consumption TV and Press Advertising using the Big Night In theme showing great meal times as a family with a Soft Drink JBP focus on large pack mix shift for retailer X creates a Attract share of wallet from other channels via non grocery categories by further 5% (+1.5% points) AWARENESS Stimulate Purchase Planning 4. makes a Channel and 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 AWARENESS Stimulate Channel & Social media Big Night In loyalty activity with vouchers off Brand X ACME Car Park Banners Big Night In Great Meal Ideas In Store Now Store Briefing Pack to give staff great ideas to pass on to s 5. makes a Purchase Increasing Basket Spend of Soft Drinks to shopper average From XX with target shoppers= +X% ATTRACT Across The Store Increase coverage on 2l Packs 2l Packs in Hot Spot 2l Packs Buy 3 Get 1 Free Using Brand B to drive value message ENGAGE Near the Shelf Off Shelf Display for Brand X next to Pizza Meals N/A MOTIVATE At Shelf Increasing number of meals where a soft drink is consumed from 38% to 42% would be worth +10% growth with this segment PURCHASE Close the Sale Buy Drink Get Pizza Free Deal 6. Consumer/ evaluates Purchase Decision Attract share of wallet from other channels via non grocery categories by further 5% (+1.5% points) REINFORCE Follow up the Sale Press Campaign Send us your Big Night In Meal Ideas The Consumer & Journey Framework

16 3 way win Consumer / Relevant solutions Tailored offers Targeted communication Great value Retailer Focus categories and manufacturers for key target shoppers Specific shopper behaviour change Targeted & effective programs More shoppers, more often, spending more Manufacturer Key channels & focus customers for target consumers Step change marketing communication Targeted & effective programs More consumers, more often, spending more The Consumer & Journey Framework

17 Learning so far... Ways of working Break internal function siloes ; ONE consumer & shopper journey, ONE commercial team Break customer category siloes Power of pooled insight Bringing e.g HHP, loyalty card data + proprietry consumer/shopper research together creates specific, actionable insight...but also requires clear, relevant, specific kpi s to track and quantify impact Not just sales and share, also p/t, freq, spend, share of moment Test, learn, re apply The Consumer & Journey Framework