Intelegerea cumparatorului si a magazinului Moduri de adaptare si sustinere a vanzarilor Coca-Cola HBC Romania SRL Cristina Colacel, Martie 2010
Today there are 3 key issues: no activation
too much activation
and activation that doesn t speak to the shopper
Shopper Marketing is Really Quite Simple. The shop and buy decisions go beyond the realm of the electric field analogy. With this random utility framework, we can write down the likelihood regarding the shopper s visit decision and theoretically predict the stochastic nature of shopper movements.
Romania - Value Shares by Channel (%) Total FMCG retail market* increased by 27% in 2008, mainly driven by increased volumes (+16%) Traditional trade decreased in value share, but recorded a significant increase in absolute value. 3 3 4 4 7 6 5 Other store types Kiosks 69 67 +20% in value 63 +21% in value 59 Food Stores 21 24 29 34 Hyper/Super markes 2005 2006 2007 2008 Nielsen: Shopper trends 2009
Shopper cut their budget from traditional trade 100 Data in % 2008 2009 90 80 70 60 50 40 30 20 10 0 38 53 28 MODERN TRADE 63% - 2005 77% - 2006 81% - 2008 93% - 2009 19 10 16 5 13 5 6 Hypermarkets Supermarkets Discount Stores Cash & Carry Traditional Grocery TRADITIONAL TRADE 37% - 2005 23% - 2006 19% - 2008 7% - 2009 3 1 1 0 Open Market Kiosk Nielsen: Shopper trends 2009
Traditional Trade being less visited 2006 2008 2009 16 19 18 13 12 10 12 11 9 5 4 4 6 6 6 2 2 2 3 4 3 3 2 3 7 6 5 5 5 5 3 3 2 Hypermarkets Supermarkets Cash & Carry Discount Stores Petrol Stations Bakeries Kiosk Traditional Grocery Open Market Vegetable Vendor Butcher Nielsen: Shopper trends 2009
RTD Buyers visit Grocery and Kiosk outlets most frequently Average no. of visits a week RTD Grocery 3.83 Kiosk 3.39
CSD and Beer make up the largest percentage of NARTD purchase in Traditional Trade
The grocery channel shows the highest percentage of planned shopping. Stores % Planned Shopping Trip % who planned RTD purchase (of those who planned shopping trip) Grocery 59% 59% Kiosk 41% 58% And the reason for RTD purchase is highest for regular usual daily shopping - 48% while in Kiosk urgent item is dominant - 35%
Activations Awareness - Groceries & Kiosks POS Material Warm Space Chilling Equipment Grocery (n=352) Kiosk (n=170) Grocery (n=151) Grocery (n=709) Kiosk (n=481) 67% 56% 11% 11% 5% 5% The activation zone of the RTD, especially POSM materials and cold drink equipment has a high awareness for the shopper 38% 29% * Warm display includes classic display, plastic racks display, metal racks display, stacker display
Economic environment influenced 2009 everybody's performance Growth was -7.2% in 2009.. and we got the chance that Romania failed into recession Consumer spending, which grew 11.6% in 2008, decelerated at 8.2% in 2009 And, the unemployment rate grew up to 8.9% As elsewhere, there was some consolation from a lower inflation rate, which dropped from 7.9% to 5.6% and Source: The Economist
Romania FMCG trend in Traditional Trade Transaction Value Processed meat and frozen vegetables Pastry/flour 11.5% 13.0% 28.2% 32.5% Beer 23.1% 21.6% Dairy Coffee Bread Snacks 8.0% 9.0% 4.2% 14.7% 9.7% 8.9% 5.3% 14.7% 17.4% 5.1% 3.5% 2.0% 5.7% 14.5% 16.0% 5.0% 3.3% 2.3% 5.7% 11.9% AFB Alcoholic drinks 18.9% 15.6% 2008 2009 2008 2009
Crisis Impact on Purchase Behaviour Total FMCG (n=700) Total Beverages (n=186) Total Food (n=289) Total Non-Food (n=225) Buy lessof the same brand 54 60 52 51 Buy less expensive brands 23 19 28 19 Look for price promotions more than used to 22 21 20 25 Buy category less frequently 16 18 16 15 Buy multipacks more often than usually 7 5 7 9 Buy more Private Labels than used to 2 1 2 3
Traditional Trade in figures for Coca-Cola Cola Hellenic (Revenue 09) Main Channels - share in total Off Premise (Traditional Trade) 66% 1% 2% 14% Kiosk Groceries Petroleum SMK/ette Other OFF Premise 17%
How we activated the shopper in this environment? Value Activities Consumer Promotion Tailored Shopper activation
How we activated the shopper in this environment? Value Activities Targeted shopper message Price must be clear communicated +23% Vs Trend at the point of sale on package impulse zone placements Emphasize the impulse zone through innovative placements
How we activated the shopper in this environment? Consumer Promotion Targeted consumer & shopper message Prizes & mechanic more visible on POSM +9% Vs Trend on participants package Placements to activate the impulse zone
How we activated the shopper in this environment? Tailored Shopper Activation Targeted shopper message +11% Vs Trend Tailored channel activation dedicated mechanic attractive reward for transaction size Placements to activate the impulse zone
How we activated the store?
Thank You!