3. TNS Shopper Journey - Pat McCann

Uncovering the shopper journey to gain the edge at retail

Pat McCann June 2007

Retail is the New Frontier.

The impact of brand-name marketing and traditional advertising is diffuse now because we all absorb so much of it. The role of merchandising has never been greater..Products now live and die by what happens on the selling floor.Paco Underhill

The impact of brand-name marketing and traditional advertising is diffuse now because we all absorb so much of it. The role of merchandising has never been greater..Products now live and die by what happens on the selling floor.Paco Underhill

3Date

Retail and Shopper Insights and The Shopper Journey

4The Shopper JourneyBrand Equity

Pre-DispositionBrand Equity

Pre-Disposition

Transaction Seals Purchase decision


Shopper typeType of occasion

State of mind

Channel choice

Pre-planningRetailer choice

Retailer experience

Store layout

Store dynamicsStore atmosphere

Shopping styleShopping basket

Shopping route

Shelf layoutSignage

Promotions

Pack standout

Consumption experience feeds back into brand

equity

Consumption experience feeds back into brand

equity

PRE-STORE

STORE

P.O.P.

Pack communication

In-store advertising

Propensity to purchase a brand can potentially be

impacted at each stage of this journey

Propensity to purchase a brand can potentially be

impacted at each stage of this journey

Along the journey, several moments of truth or

success/failure points exist for a brand

Along the journey, several moments of truth or

success/failure points exist for a brand

5The Shopper Represents the Consumer at RetailBrand Equity

Pre-DispositionBrand Equity

Pre-Disposition




State of mind

Channel choice


Retailer experience

Store layout

Store dynamics


Shopping route

Shelf layoutSignage

Promotions

Pack standout

Pack communication


Research by Consumer

Experts

Research by Consumer

Experts

Research by Shopper Experts

Research by Shopper Experts Store atmosphere

Consumption experience feeds back

into brand equity

Consumption experience feeds back

into brand equity

Propensity to purchase can potentially be

impacted at each stage of journey

Propensity to purchase can potentially be

impacted at each stage of journey

Defining - Shopper Insights

Shopper insights is consumer learning that can be applied to improve equity, sales and profitability of a brand, category or store through consumer-centric changes to the retail environment and its messaging.

Maximising Retail Strategy

In-Store Marketing Activation

Driving Customer Partnership

Synchronising Brand Equity &Retail Delivery

There are 4 ways in which retail and shopper insights can make an important contribution to your business

TNS specialist strengths will ensure that this contribution is significant and help you win at retail

How can Retail and Shopper Insights contribute to your business?

8Maximising Retail StrategyMaximising Retail Strategy

Channel strategyTracking changing retail landscapeIdentifying alternative, non traditional and emerging channelsCross channel optimisation

Customer strategyCustomer collaboration strategyMaximising specific customer opportunities Developing effective customer specific business plans

9Brand Retailer

In-Store Marketing ActivationIn-Store Marketing Activation

Pack Shelf Impact & communication

Price Regular& promotional pricing

Ads and Circulars

Promotions - Messaging & communication

Displays Location and effectiveness

Assortment

Plan-o-gram or Shelf Set Management

Fixtures, Signage and Store Design

Execution

Brand Management CategoryManagement

RetailManagement

To implement strategy and win at retail, in-store activation is crucialActivating right levers and applying them effectively will maximise purchase

10

Importance of Brand Power in Market suggests brand owners need to optimise.allocation of marketing budget across Above/Below the Line including retail brand performance by developing synergy between brand equity and retail deliverybrand communication strategy by focusing on shopper as well as consumer needs

Brand power in the market

Brand power in the mind

Brand Purchase Decision

Synchronising Brand Equity and Retail DeliverySynchronising Brand Equity and Retail DeliveryDual aspects

of brand equity Dual aspects

of brand equity

Driving category growth in partnership with customersHelping customers to develop better relationship with shoppers Assist customers to understand and improve the shopping experienceImprove connections between shopper needs and retail activationCreating innovative category strategies Showing brand loyalty leads to retail loyalty ShopperShopper

CustomerCustomerCategory/

BrandCategory/

BrandCollaborative

Category Development

CollaborativeCategory

Development

Driving Customer PartnershipDriving Customer Partnership

TNS Retail and Shopper Insights

Introducing

Annual Global Consumer Sector Summit 2007

In-store marketing

Brand Equity

RetailStrategy

Purchasingbehaviour

TNS Retail and Shopper InsightsOffer 4 Specialist Strengths

14

PurchasingBehaviourIn store

Marketing

RetailStrategy

BrandEquity

These combined strengthsform TNS Unique Shopper offer

No one else has as deep or broad combined offering - Globally

15

Introducing TNS Retail Forward Retail Growth Consultants

Forward thinking retail consultancy

Create strategies for profitable growth

Business intelligence and strategic perspectives on retailing

16

Introducing TNS Sorensenthe in-store research company

In-store research specialists for 35 years

Unique level of retail understanding

Unparallelled experience of shopping behaviour

HeavyTraffic

Light Traffic

17Date

TNS Tools to uncoverthe Shopper Journey

18

Tablet PC

TNS Retail and Shopper Insights toolsShopper observation via innovative data collection

Paper & pencil

Video

People Counters

RFID PathTracker

Eye Tracking

Ethnographic Video

Statcam

PDA

19

TNS shopper expertsTools to uncover the Shopper Journey

Brand Equity Pre-DispositionBrand Equity

Pre-Disposition




State of mind

Channel choice


Retailer experience

Store layout

Store dynamics


Shopping route

Shelf layoutSignage

Promotions

Pack standout

Pack communication


Store atmosphere

PRE-STORE

STORE

P.O.P.

TNS TOOLS

Shopping Mission/ Needstate StudyPathTracker Store OptimiserBrand Purchasing StudyRetail Brand Alignment studyPurchase Decision StudyLearning LabControlled Store TestShelf Impact TestVirtual Shopping/Shelf Test Bonsai Test MarketObservation/EthnographyIn-Store Qualitative

TNS TOOLS

Shopping Mission/ Needstate StudyPathTracker Store OptimiserBrand Purchasing StudyRetail Brand Alignment studyPurchase Decision StudyLearning LabControlled Store TestShelf Impact TestVirtual Shopping/Shelf Test Bonsai Test MarketObservation/EthnographyIn-Store Qualitative

TNS tools cover the whole shopper journey

TNS tools cover the whole shopper journey

20

Retail and Shopper Insights ProcessBeyond the Shopper Journey

Solution Testing

Implement, monitor

Customer Involvement

TNS covers the whole retail and shopper insights process including testing, implementation of solutions and end-to-end Consultancy. Retail strategy projects typically cover entire process

Shopper Journey

21Date

TNS Tools to Address the Key Business Issues

22

For Pre Store Shopping Mission/ Needstate StudySummary: Segmentation of shopping occasions (missions) and category purchasing occasions (needstates) based on behaviour and motivations

Objective: To understand different types of trip and category needstate and their impact on behaviour and category purchase decision

Benefit: Create needstate or mission-based layout, communication and input to marketing strategy

Pre Store

Shopping mission/ needstateShopping NeedstatesIn-home/on line Segments both shopping occasion (trip) and category purchasing occasion by motivation and basket type. Accompanied shop/ shopalongQualitative integral to category needstate studyEmotive insights

23

For the Store Store Management Study: PathTracker

Summary: Suite of tools to observe shopper flow and response to category merchandising

Objective: Measure time spent, location, direction facing, items passed,/examined/ purchased

Benefit: Design more effective store/ impactful category merchandising

Dwell Density

Traffic Flow

Store

PathTracker Methods

RFID PathTracker

Full store management toolAudit PathTrackerLess comprehensive Video/Person PathTrackerSmall stores or category focusData MiningAnalysis existing PT data

24

For Category at P.O.P. Purchase Decision Study

P.O.P.

Summary: For category managers to understand shopper behaviour and attitudes at POP

Objective: To understand category purchase decision hierarchy, drivers/motivations, shopability, shelf behaviour

Benefit: Improve category conversion through active category management strategies

Purchase Decision Study

Purchase decision study method

Observation, Video Ethnography, Intercept and interview.

Understand shopper needs/priorities and at shelf behaviour.

Actively identify ways of improving category management and brand/ category conversion.

25

For Brand at P.O.P Brand Purchasing StudySummary: To assess impact of brand commitment on in-store behaviour/ response to competitor activities

Objective: Understand role of brand power in mind/ brand power in market on in-store purchasing decision

Benefit: Devise in-store communication strategies to reinforce brand equity/ improve retention of purchasers

Brand Purchasing Study methods

In-store Brand Purchasing studyUnderstand brand commitment, brand purchasing and reactions to in-store environment Accompanied shop/ shopalongSub-conscious and visual aspects of brand purchasingEmotive InsightsProjective techniques to identify shopper emotions associated with brand purchase

P.O.P.

26

For entire Shopper Journey In-Store QualitativeSummary: Deep understanding shopper journey: implications for brand/category communication

Objective: Understand behaviour, purchasing barriers/triggers, in-store levers, emotions, visual category language, sub-conscious factors. Provide contextual story/ quantitative input

Benefit: Ensure retail environment reflects optimal visual and emotive communication to maximise brand/category purchase

Qualitative Methods

Accompanied shop/ shopalong

Walk & Talk Workshop

Mini group discussion on-the-go

Retail Documentary

Shopper commentary on eye tracking

Qualitative Intercept

Ethnography

Deep observation

4-Sight Conference 20064-Sight Conference 2006

Provide quick real-world feedback on any in-store issue

Design more effective store/ more impactful

category merchandising

Evaluate pack /P.O.S. in real-world setting to prevent costly errors.

Determine ROI on in- store

initiatives

TNS tools toAlign in-store delivery/ communication with brand promise

28

Why TNS Retail and Shopper Insights?

Unique in-store brand equity solutions

Deep experience/validation shopper behaviour

Understanding of retailers/retail environment

Powerful PathTracker store optimiser tool

Emotive aspects of shopper journey

Holistic understanding of shopper/ consumer

Global reach, local expertise

Leading edge observation/analysis technology

Uncovering the shopper journey to gain the edge at retail

Thank you

Documents

3. TNS Shopper Journey - Pat McCann