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Canadian Meat Council 91st Annual Conference

Halifax, Canada

Presented by: Peter Townsend

Todays Discussion

• Great opportunity to differentiate your category in Grocery Retail

• New opportunities to present solutions at retail • Introduce Shopper Marketing

• Collaboration Required • Better Positioning

• More Focus

• More Support

• Leap Frog other Categories in the Store

Everyone in the Grocery Game

Competition for Shopper Trips is Intense

85 78

72 59

1998 2000 2004 2009

Supermarket Trips per household

• Mass, Club and Drug stealing trips from Grocery Stores

What does a Grocery Store Look Like?

Consumer Perspective

Consumer Confessions

Competitive Landscape

Competitive Spectrum Mass Specialized

Grocers will need to capitalize on importance of fresh in order to differentiate from competitors

52

68

80

89

Bakery

Dairy

Meat

Produce

Importance in determining grocery store choice

This Weeks Flyers

Key Takeaways

Retailer Perspective

Focus on Centre of the Store

Focus on Centre of the Supply Chain

Focus on Trade Spend Focus on Weekly Flyer

Focus on ‘Product Out’ vs ‘Customer In’

Focus on Procurement and Logistics

Focus on ‘Pull vs ‘Push’ Focus on ‘Passive’ vs ‘Active’ Retailing

Overwhelming Data In

tern

al D

ata

POS

Transactional Time Stamp

Number

Dollars Price

Units

Loyalty

Customer Info Points

Profiles Lifestage

Segmentation

Operations Store Layout

Planogram Holding

Marketing Campaigns Promotions

Competitive

Outputs:

• Purchases • Dollar Sales • Items

• Development • Market Segments • Profiles

• Turns

• Market Share

Customers also bring part of the equation

Path to Purchase Tracking

Linking Customer – Cart – Path & Purchase

New Measurements New Math

Measure Customer Conversion

Conversion now measured not on visitors to the store alone but shoppers to the specific merchandising area.

Time as a measure

Meat Performance Dwell Time Traffic

Call to Action

Niche

• Few stop to shop, but those that do..buy

Leaders

• Shoppers who pass here stop to shop and buy

Under Developed

• Few stop to shop, few who do …buy

High Interest

• Shoppers stop to shop, but do not buy

VitalQuadrant Anlysis

Effective Merchandising

Poor Merchandising

Effective Merchandising

Attractive Merchandising

Key Takeaways

Pinpoint where your best shoppers travel

Identify Products that lend themselves to Impulse sales

Position Basket Size Enhancers for Optimal Exposure to Store Traffic

Manufacturer Perspective

Over 35% of volume sold on Promotion

Trade Spending is approx 20% Cost of Sales

Private Label is always threating

Fight for Shelf Space Collaboration with Retailer is Difficult

New Product Research and Development

Category Management Focus

Marketing Budget Unaligned

In Store Shopper Reach

One 4 Week In Store Program at Wal-Mart • 200M Million Trips • 60M Households Combined Audience of Top 2 Programs

Think of the store opportunity

144

90

44 35 29 29 21 19

0

204060

80

100

120

140

160

# H

ou

seh

old

Vis

its

pe

r w

ee

k

(Mill

ion

s)

Source: ACNielsen Channel Blurring and Wall Street Journal Super Bowl Figures represent number of viewers

Use the Store to Communicate with Customers

• Breakfast/Lunch/ Dinner • Seasonal ( BBQ/Holiday) • Party ( Birthday, Superbowl)

Permanent End Cap

Yogurt Category Communication

Fully Leverage Technology to capture trips and improve

Experience

In Store Media

Kiosks

Digital Signs

On Cart

Hand Held

Mobile

Shelf

RFID

Shopper Marketing Playbook

• Build customer relationships

• Pre and In-Store Equity

• Move Beyond Promo Price to Targeted Messages

Promo/Price

• Actionable Insight to manage growth

Place/ Product

Planograms Store Layout

Mobile Loyalty Programs

End game is loyalty and growth

Add Stores to Market

Add Customers

to Store

Add Trips to Store

Add items to Basket

Add Profit to Basket

Consumer Decisions

Where is….

I can’t find the product I bought last time?

What am going to buy?

What’s on promo?

Do I have a coupon for that?

I need it now…

Branded or PL?

How much do I need?

What goes with this?

Forgot my shopping list…again!!

Make it easier for the Customer

Winning in the Customer Centric Retail Era

Will require the ability to: • Focus on Fresh

• Differentiates Grocery from other ‘Food’ Stores • Understand ‘end to end’ Customer Levers you can pull to deliver a

superior Fresh Experience

• Intensify Shopper Knowledge • Mine Data for information and Insights

• Success of Planograms • Assortment • Loyalty Data for Customer Behaviour and Preferences

• Shift from Category Management to Shopper Marketing • Fulfill Customers Mission Based Demand Issues

• Collaborate – Manufacturers and Retailers

Thank You

Peter Townsend

Peter.townsend@moxieretail.com