Shopper Insights Wine09

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  1. 1. 10 Shopper Insights that You Must Know and dos & dontsA Wine Adaptation Jim Fortune jfortune@bigpond.net.au
  2. 2. 10 SHOPPER INSIGHTS 1 Shoppers have difficulty making decisions 2 Shoppers want to feel smart when making decisions3 Shoppers limited ability to process too much information 4Shoppers use memory to give meaning to objects5 Shoppers need consistent messages in and out of the store 6Discontinuity creates triggers to attract shoppers attention7 Shoppers recognize visual stimuli most easily 8Shoppers use familiar segments to speed up their selection process9 Shoppers tunnel vision and boomerang behaviour 10Shoppers need to be reminded of the items they need
  3. 3. Start with a fact not an insight something that often seems to beoverlooked for wine
  4. 4. 1 1. Shoppers have difficulty makingdecisionsdecisions More choices, more difficult to make a selection It is very common for shoppers not to know exactly what they want. Shoppers need information/education to make a decision.
  5. 5. 1 1 1. Shoppers have difficulty makingdecisionsdecisions Avg. # SKUs Carried by a Supermarket - wine 12001000 46% shoppers spend 3min+ in front of shelf800 52% shoppers pick up600 3+ products400 200 0 1996 20002004 2006 2008 Source: speculative data for example
  6. 6. 1 11. Shoppers have difficulty making decisions decisions More choices, more difficult to make a selection It is very common for shoppers not to know exactly whatthey want. Shoppers need information/education to make a decision. DosDonts Assume shopper know how to Education in store through choose products relevant point of sales materials Overwhelm shoppers with point Train promoters on how to of purchase materials! facilitate shoppers selection process
  7. 7. 2 Shoppers want to feel smart when making decisions Shoppers want to make a wise and smart decision. They also want to be seen by peers as making the right choice.
  8. 8. 2 2 Shoppers want to feel smart when making decisionsDo you think the shopper will feel smart with this promotion?
  9. 9. 2 Shoppers want to feel smart when making decisions Shoppers want to make a wise and smart decision. They also want to be seen by peers as making the rightchoice.DosDonts Disappoint shoppers, even after Focus on how to make shoppersthe sale (e.g. high-low price feel that theyve made a smartstrategy) decision rather than on the deal per se Emphasize Smart Choice in promotional activities.
  10. 10. 3 Shoppers limited ability to process too much information The mind can only process 5-7 pieces of information Thousands of stimuli exist in a store: Some information is compressed Some information is screened out Too much information leads to lock outResult: less than50% of shoppers areable to recall anyavailable point of salemarketing!
  11. 11. 3 Shoppers limited ability to process too much information The mind can only process 5-7 pieces of information Thousands of stimuli exist in a store: Some information is compressed Some information is screened out Too much information leads to lock outDos Donts Overwhelm shoppers with clutter Stimuli need to be clear and in store and on the shelf unambiguous Create relevant in-store communications that help shoppers make the right choice
  12. 12. 4 Shoppers use memory to give meaning to objects Shoppers need to be given a clear stimulus in order to access their memory. Whats is the brand?
  13. 13. 4 Shoppers use memory to give meaning to objects Shoppers need to be given a clear stimulus in order to access their memory. Is this brand?
  14. 14. 4 Shoppers use memory to give meaning to objects Whats this brand?
  15. 15. 4 Shoppers use memory to give meaning to objects Shoppers need to be given a clear stimulus in order toaccess their memory.DosDonts Use non-standard font, colour or Use visual stimuli that areshape consistent with what shoppers know for better memory retrieval Use visuals that inconsistent withthose used in other channels: e.g. Use existing pathways colour,TV ad, print shape, font Merchandising tools need to have meaning
  16. 16. 5 Shoppers need consistent messages in and out of the storeSHIRAZ excels at delivering the sort of BENEFITS thatcustomers truly desire.
  17. 17. 5 Shoppers need consistent messages in and out of the store Shoppers need consistent messages to make thetransition from consumers to shoppers.DosDonts Dont break the dialogue at point Use 360-degree communication of sale by sending a different Align above- and below-the-line and/ or irrelevant message. activity In-store communication also needs to be aligned with shoppers needs and mission
  18. 18. 6 Discontinuity creates triggers to attract shoppers attention The mind ignores what it knows and focuses on differences
  19. 19. 6 Discontinuity creates triggers to attract shoppers attention The mind ignores what it knows and focuses on differences
  20. 20. 6Discontinuity creates triggers to attractshoppers attention The mind ignores what it knows and focuses ondifferences Dos Donts Design without any discontinuous, Enhance shelf design &stimulating element merchandising tools by using: Different shelf layouts Different lighting intensities Different flooring Curved designs Different colour patterns
  21. 21. 7 Shoppers recognize visual stimuli most easilyFrom flashy visuals
  22. 22. 7 Shoppers recognize visual stimuli most easily to more subtle but unique approaches.
  23. 23. 7 Shoppers recognize visual stimuli most easily Whats this ?
  24. 24. 7 Shoppers recognize visual stimuli most easily Shoppers can process information in visual form (e.g.pictures) much more easily than words. Dos Donts Use wordy text in point of sale Use pictures/visuals materials (shoppers wont read Simple words such as SAVE, them!) SALE, FREE
  25. 25. 8 Shoppers use familiar segments to speed up their selection process Shoppers first sort out what is not relevant, then choose among the remaining products.
  26. 26. 8 Shoppers use familiar segments to speed up their selection process How many distinct category segments in your local store? Little association between some groups Specials segment is associated with allBottle Special RedRegional occasion Chilled SpecialsBIBWhiteAmbient Case inc. Sparklingimports
  27. 27. 8Shoppers use familiar segments tospeed up their selection process Shoppers first sort out what is not relevant, then chooseamong the remaining products. Dos Donts Organize products on the shelf in Make it easy for the shopper to a way that is not aligned with sort out what is and is not shoppers selection logic. relevant Organize the store in a way that Organize products based on how shoppers need to spend more shoppers make decisions time to find the brand they want. Think about needs-based shelf layout
  28. 28. 9 Shoppers tunnel vision and boomerang behaviour Shoppers have a tunnel vision when viewing fixtures at eye level. Also, if they cannot find what they want half-way down the aisle, they often turn round and leave the fixture.Corridor side Module 1 2 3 4 5 6 7 8 Shelf 1 2 3 4 Eye level% of 5interaction 66% - 10% 7 8 4% - 5%3% or below
  29. 29. 9Shoppers tunnel vision andboomerang behaviour Shoppers have a tunnel vision when viewing fixtures ateye level. Also, if they cannot find what they want half-way downthe aisle, they often turn round and leave the fixture. DosDonts Dont expect shoppers to go the Place relatively weak brands at extra mile to find your brand eye level, so they stand a better because they wont! chance to be noticed Place your brands close to the main entrance of the fixture
  30. 30. 0Shoppers need to be reminded ofthe items they need100%No 71% of shoppers make their finalPlanned to buy wine?26% purchase decision in store!74% Yes Purchased wine Noor not? 12%Yes62% Not planned but purchased wine Planned but not purchased wine Planned and Purchase wineDetails of preplanClosure rate analysis Impulse purchase rate analysis Why? In-store triggersWhy? In-store barriers Changed Plan ornot?33%YesWhy? In-store impacts(example data only)
  31. 31. 0Shoppers need to be reminded ofthe items they need26% Impulse Purchase Reasons for Impulse Purchase - (%) I was reminded by in-store stuff 61Not planned but purchased wine It is on promotion now 29 Impulse purchase rate analysis Recommended by promoter 6Why? In-store triggersRecommended by accompanier 3
  32. 32. 0 Shoppers need to be reminded of the items they need Food-wine matching talked about, rarelydisplayed Reminding shopperswith some label cues.
  33. 33. 0Shoppers need to be reminded ofthe items they need Whats wrong with pairing? Increasing value of recognition and purchase.
  34. 34. 0Shoppers need to be reminded ofthe items they need Grouping categories in line with shoppers logicalselection process triggers their memory and leads tomore sales whether planned, unplanned or impulse. Dos Donts Use secondary displays with Organize the fixture aroundillogical category adjacency shoppers needs and mission to make the most of their limited Arrange the fixture based on time at point of salewhat makes sense to theCategory Manager! Create in-store solution centers
  35. 35. Summing up Consumers and shoppers are two sides of the same coin, hence consistency is needed in our communications. The store environment has enormous impact on shoppers and their behaviour. In order to influence shoppers to our advantage, understanding what makes them tick is fundamental. Therefore, shopper insights are key to win in the last mile.
  36. 36. Thank you for your Thank youframework & sharing goes toKen Zhang, Zdology Images courtesy of Javier Calvar, RI China web sites and more formal open ac