5 examples of how our shopper insights can drive true growth...5 examples of how our shopper insights can drive true growth Roger Jackson, Global Vice President, Shopper Research:

5 examples of how our shopper insights

can drive true growth

Roger Jackson, Global Vice President, Shopper Research: [email protected]

Sal Fiordelisi, Program Lead, Shopper Intelligence USA: [email protected]

Wade Duke, President, Shopper Intelligence North America, [email protected] Toll Free: 844-724-0047

© Copyright SMI

A Shopper Insight:

A previously unknown or un-adopted learning about the shopper and/or the shopper decision

process that we can leverage to improve business performance

What the shopper

thinks, needs,

does

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5 ways shopper insight can uncover routes to growth

Role of category to the store

How and when the purchase decision is made

Response to promotions

Brand buyers versus own label buyers

Targeting different users and occasions

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© Copyright SMI

Understanding Role gives you ammunition for greater resources

The retailer cares about growing their business not yours.

Insights that build proposals will demonstrably drive additional revenue/profitfor the store are valuable. And your buyer needs to argue the case with his/her boss

With fact based insights they will get support….

More $

New shoppersExisting

shoppers spend more

Greater loyalty

Australia 20126 © Advantage International, Inc.

6

Lowdifferentiation

Highdifferentiation

High intentionalityLow intentionality

A framework we find powerful

Impact the trip

Build loyalty and spend


7

Lowdifferentiation

Highdifferentiation

High intentionalityLow intentionality

Hero categories“Give me a reason to

choose This store over competitors

Drive the Trip“Give me the best value

on basics & make it easy”

Drive the Basket “Give me an irresistible

deals on those little extras”

Differentiate via New & Treat “Entertain me with something new and

different”

e.g. Fresh Breade.g. Chilled Soup

e.g. Standard White Milke.g. Chocolate Biscuits

Broadly speaking 4 Category Types

Australia 20128 © Advantage International, Inc. 3.50

4.00

4.50

5.00

5.50

6.00

6.50

4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50

Hero categories

Drive the TripDrive the Basket

Differentiate via New and Treat

Different categories have different roles for retailers and shoppers

Lowdifferentiation

Highdifferentiation

Highintentionality

Lowintentionality ?


Highdifferentiation

Lowintentionality

3.50

4.00

4.50

5.00

5.50

6.00

6.50

4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50

Hero categories

Highintentionality

• Lead on innovation• Pre-store advertising/ Catalogue• Promotion out of store• Simple Display, focus on OOS• Opportunity/ threat in Private

Label

Top 10 categories

Nappies

Pet Food

Fresh bread

Health Foods

Fresh Meat

Staple Veg

Continental Deli

Fruit

Long Life Milk

Coffee

Top 10 supplier brands

Fancy Feast (Cat Food)

Huggies (Nappies)

Vitasoy (Fresh Non-Dairy Milk)

Whiskas (Cat Food)

GWF (Bread)

My Dog (Dog Food)

Babylove (Nappies)

Wonder White (Bread)

Dilmah (Tea)

Pollident (Denture Care)


Categories are not homogeneous

Breakfast bars and Biscuits category example

Most of category isHighly incrementaland intentional

A subset is less incremental and less planned

Adult snacking

Kids lunchbox

Case study – what Suppliers and Retailers do together with this framework



Top 10 for the shopper importance of PriceDisposable Nappies

Long-life milk

Chocolate Bags

Cola Soft Drinks

Hair Colour

Block Chocolate

Lunchbox Snack packs

Baby Wipes

Chocolate Sharepacks

Cake Mixes


Top 10 for importance of availability

Disposable Nappies

Mixers

Blades and Razors

Feminine Hygiene

Long-life milk

Yoghurt

White Sliced Bread

Gourmet Yoghurt

Dairy Beverages

Cat Food

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5 growth driving insight arenas






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Understanding the path to purchase, the when and the how

If you know when the decisions are being made you can allocate resourceseffectively and argue that case to the retailer

Category Decision

Brand Decision

Ease of diversion

Pre storeIn store

Pre store In store

Loyal/small repertoire Disloyal/largerepertoire

© Copyright SMI

Understanding the path to purchase, the when and the how

If you know when the decisions are being made you can allocate resourceseffectively and argue that case to the retailer

Category Decision

Brand Decision

Ease of diversion

Pre storeIn store

Pre store In store

Loyal/small repertoire Disloyal/largerepertoire

Activation early in P2P Activation at fixture


Case study: Winning additional secondary display feature in Mexican Foods

© Copyright SMI

Arguing for secondary display for Mexican meal components –

secondary siting

Mexican food is impulsive and

expandable

xx Rank (of 140)

n=414

Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR)Q12 What were the main reasons you planned to buy XXX on this occasion? (MR)Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)

Below benchmark (99.9% confidence)

Below benchmark (90% confidence)

In line with benchmark Above benchmark (90% confidence)

Above benchmark (99.9% confidence)

% of shoppers

x% All category average

Planned63%

Mexican cuisine

114

Requested14%

Particular use17%

Regular purchase

36%

Promo trigger6%

Try for a change

4%

No promo trigger59%

Internet info0%

Advert1%

Catalogue3%

Coupon2%

116 47 12 5

109

30

41

Promo trigger25%

No promo trigger15%

Display12%

Price / Specials

12%

Pack3%

Info in store4%

New5%

Unplanned36%

36 30

26

29

41

29

71% 27%

Mexican Foods is driven by Display

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© Copyright SMI

Understand incrementality of promotions

Retailer short term focus is maximising weekly sales

Tend to promote best sellers

But these are not often driving incremental growth, rather they drive “cupboard loading”.


Case study: Arguing additional promotions for Premium Tea


71%

Everyday tea purchase are about routine, regular behaviour

Planned 79%

Tea

xx Rank (of 178)

56


Requested8%

Particular use3%

Regular purchase

68%

Promo trigger

4%

Try for a change

1%

No promo trigger

75%

Internet info0%

Advert0%

Catalogue3%

Coupon1%

30 177 116 159

54

133

Routine regular purchase hence simplicity crucial for Tea shoppers particularly in Everyday Black. Facilitate the shop with easy navigation, direction at shelf and in stock.

Everyday Premium Green Infusions

79% 58% 56% 61%

Tea (N=305), Everyday Black (n=121), Premium Black (n=50), Green (n=34), Infusions (n=38)

Planned Regular Purchase


Whereas Premium teas are well placed to trade shoppers up with impulse purchasing

Tea

xx Rank (of 178)Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR)Q12 What were the main reasons you planned to buy XXX on this occasion? (MR)Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)

27%

Promo Trigger

13%

No promo trigger

11%

Display6%

Price/Specials

7%

Pack0%

Info In Store

2%

New3%

Unplanned 20%

123 106

116

117

Everyday Premium Green Infusions

4% 10% 12% 3%

Tea (N=305), Everyday Black (n=121), Premium Black (n=50), Green (n=34), Infusions (n=38)

Impulse driven by Price

Price offers trigger a greater impulsive response in Premium Black and Green tea shoppers.


Incremental

59%120

Would have bought the category & bought same as usual

37%63

Only bought because of promo

43%

104

Would have bought but bought more than usual

16%125

xx Rank (of 195)

x% All category average

32%63%

Regular Tea

Incremental

82%16

Would have bought the category & bought same as usual

15%183

Only bought because of promo

75%12

Would have bought but bought more than usual

19%89

32%63%

Speciality Tea

Promotion Response

Strong argument to increase promo exposure of Premium Tea to drive true growth

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Incrementality of promotions



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Not all shoppers are the same

Easy assumption among retailers is that brand buyers are some how just illogical

But if you can prove a different need compared to own label buyers you can arguelogically to support brand activity


Case study: Understanding Brand in a “commodity” category : Flour


71%

We need to look first at how flour is bought:

Planned 89%

Flour

xx Rank (of 178)

9

n=300


% of shoppers

Requested9%

Particular use39%

Regular purchase

63%

Promo trigger

3%

Try for a change

2%

No promo trigger

88%

Internet info0%

Advert2%

Catalogue2%

Coupon1%

49 6 83 79

5

149

Top 10: PlannedParticular use

Cream 64%

Herbs 63%

Liquid Stock 49%

Herbs, Spices & Seasonings

44%

Mince 42%

Flour 39%

Cough and Cold products

38%

Batteries 37%

Medicinal 37%

Fresh Chicken Cuts 36%

Price is not as critical in these types of categories


And how flour is used in the home

When intended to be used

Average Category

Flour

n=50773 n=272

Consumed/used straightaway after buying 18% 15%

Consumed/used the same day as bought but not

straightaway28% 24%

Taken home for future consumption on a

specific occasion36% 43%

Taken home with no specific occasion or use in mind

25% 25%

Consumed or used later but not in the home 3% 3%

For use in some other way 3% 4%

Need to talk about occasion/ recipe not priceRemind shoppers of the importance of their choice to their recipe to drive value


Net Favourable in Flour vs Brand X

3.5 3.63.5 3.4

2.9

3.4

2.7 2.8 2.8

2.12.0

3.1 3.1

2.6

1.5

2.0

2.5

3.0

3.5

4.0

Imp

ortan

ce (1-5

)

Flour

n=300

xx Rank (of 178)

28 164 15620 74145 153100149 -125 64 7555

Q25 … how important is each statement to you when shopping for XXX in [RETAILER]? (SR)

Avg Category

96 -

Below benchmark (99.9% confidence)

Below benchmark (90% confidence)

In line with benchmarkAbove benchmark (90% confidence)

Above benchmark (99.9% confidence) * Select categories only

Brand X delivers on premium

When I buy premium Flour in [RETAILER], I really notice the

difference(agree minus disagree)

Category – 17%Brand X – 48%


Brand X significantly outperforms the category on willingness to “spend more for better”

Performance: Net Favourable (% Agree 7,8,9 minus % disagree 1,2,3)

Range of ratings for statement: All categories

Q23 ….how much you agree or disagree when shopping for XXX in [RETAILER] ….. (SR)

xx Rank (of 178) x% All category average

Brand X can drive premium and higher ASP into Flour


Category Information What it provedInsight

Result

Flour Highly planned for a specific use

Bought for a specific occasion

Brand X commands a higher price premium

Flour is not 100% commodity

Can trade up via Brand X

Execute this via specific use/ occasion

Combined with a new commercial package the brand received additional space and support for a program of promotional activity

Summarising the argument to the buyer:

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Incrementality of promotions



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Differentiate by shopper types

Classic marketing theory is to understand what motivates different consumers, identifythe most attractive segment, then target them

This applies in the same way to shoppers

We have built successful growth strategies by identifying differences based on eg:

By Intended recipient/userBy GenderBy Usage occasionBy Age


Case study: Merchandising “Premium” in Red Wine


Supplier wanted to pioneer a new merchandising strategy to drive trade up in Red Wines

n=

I don't mind paying a bit more for some types of [Cat] in [Ret]

Average Category 8429 19%Total Wine 2017 24%Total Wine without Cask 1597 27%Total Beer 3307 15%White Bottled 572 24%Red Bottled 648 35%Sparkling White 176 18%French Champagne 150 15%Cask Wine 420 15%Sparkling (incl Champagne) 377 16%


Male Wine shoppers want ideas and inspiration

Total WineAverage Liquor

MaleWine

n= 8429 727

Improve how the products in XXX are laid out and positioned on shelf so it is easier and quicker to shop

13% 14%

Improve signage and information at the shelf so it is easier and quicker to shop

17% 18%

More ideas/ inspiration/ explanation at shelf to make XXX more enjoyable and easier to shop

15% 19%


Dan Murphy’s shoppers are more likely to be men buying for “later” than other retailers

72% Male

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Program Introduction

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This is an already well proven tool, seeking to become a global standard

ASI Pilot Countries ASI Planned 2014 -15

In exploration

SI Pilot programs operating in Australia (since 2008) UK and France (since 2013) • rolling out to 5 additional countries in 2014/15

CANADA

USA

UK

SPAIN

NETHERLANDS

FRANCE

AUSTRALIA

GEOGRAPHICAL MARKETS COVERED

GERMANYBELGIUM

SOUTH AFRICA

NEW ZEALAND

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A common reference - valued by retailers so highly effective for suppliers

“Shopper Intelligence is well embedded across the business at Coles. It is a key component in our suite of insights driving Customer and Category planning and is hard-wired into category level templates that Category Managers use to make decisions everyday (e.g. range reviews)”

David Brown, Category Insights Manager - Grocery Food, Coles Supermarkets, Australia

“Shopper Intelligence adds strong evidence to our category knowledge and completes past shopper research. Its innovative methodology gives a solid benchmarking of the role of our category in growing our retailers’ sales, allowing us to determine the right levers of action. A big advantage of the system is it’s quick to turn into action and present to buyers.”

Stanislas de Maleissye, Category Marketing Director,General Mills, France

http://upload.wikimedia.org/wikipedia/commons/2/2b/Wrigley_Logo.svg

http://upload.wikimedia.org/wikipedia/commons/2/2b/Wrigley_Logo.svg

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This new system provides a more cost efficient and contextual solution than

multiple custom projects

Existing sources provide behavioral data

… but little forward looking “why” understanding from shoppers themselves

Historically, you need customised research to get any real insights about what shoppers think and want. That’s expensive, time consuming and often infrequent.

Scan Data

Panel

Loyalty Card

An Industry system provides significant cost economies, engages retailers better, andprovides unique benchmarking capability

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What is it?

BenchmarkingMeasures of shopper perceptions, attitudes, behaviors at a category level. 90% standardized, 10% customizable for any category. Insights from comparisons.

Large scale

Categories

Channels & Retailers

120+ quota’d sample per category, per retailer = huge sample for robust benchmarks, eg 260,000+

All major categories covered plus segment level detail to specific sponsor request. Highly granular

Propose all major channels: Supers, Mass, Club, Drug, Dollar, On line and specialists. 20 + major national and regional retailers quota’d and reported. One source to measure your whole business.

A large scale, cost efficient quantitative Industry program benchmarking Categories with Shoppers across Channels and Retailers

ShoppersShopper interviewed on line within 24 – 72 hours of shop so highly recent. Each evaluates one category and one retailer for depth of insight

Cost efficientLarge savings intrinsic from standardized shared fieldwork process and automated reporting. 30% cost of equivalent custom research

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This is a “whole of store” program

+

c.80 Departments and Macro Categories Client-Defined

Categories / SegmentsChilled Food

Meals

Cooked Meats

Pizza

etc

Dry Grocery

Household

Fresh

Meals

Italian

Snack

Mexican

etc

Category coverage is built on sponsors needs based on a core platform of 80+

major categories

Benchmark across categoriesBenchmark to competitors

Track change

Often supplierled

© Copyright Advantage International/SMI

What might the USA launch sample look like?

We need to agree with sponsors which retailers and categories to cover.The minimum sample per retailer per category drives statistical robustness

Clients may choose to “boost” sample on bigger customers and categories

Category Coverage (tba)

Total Resulting SampleBanners

Per Category

Quota Sample Fresh and Chilled

Packaged Grocery/BWS Health and Beauty

Household and Gen Merch Coverage

Mass Walmart 150 20 35 30 15 100 15,000

Target 150 20 35 30 15 100 15,000

Club Costco 150 15 35 30 15 95 14,250

Sams 150 15 35 30 15 95 14,250

National Supers Kroger Corp (main banner) 150 20 35 30 15 100 15,000

Safeway Corp (main banner) 150 20 35 30 15 100 15,000

Ahold Corp 150 20 35 30 15 100 15,000

On LineComposite of Amazon,Walmart, Safeway, Target, Kroger 150 20 35 30 15 100 15,000

Drug CVS 120 0 20 30 10 60 7,200

Walgreens 120 0 20 30 10 60 7,200

Dollar Dollar General/Family Dollar 150 10 25 20 10 65 9,750

Regionals BJs 120 20 35 30 15 100 12,000

(to be agreed) HEB 120 20 35 30 15 100 12,000

Publix 120 20 35 30 15 100 12,000

ShopRite 120 20 35 30 15 100 12,000

Rite Aid 120 20 35 30 15 100 12,000

Kmart 120 20 35 30 15 100 12,000

Albertsons Legacy 120 20 35 30 15 100 12,000Delhaize 100 20 35 30 15 100 10,000

Meijer 100 20 35 30 15 100 10,000

Supervalu 100 20 35 30 15 100 10,000

Totals 22 2,730 256,650

© Copyright 2014 Advantage International/SMI

2014 UK Full Content Summary

1

Category DNA1a 1b 1c 1d 1e 1f

Category Role(Traffic/Spend)

Intentionality/Differentiation Framework

Shopping Mode(Grab Go vs Browse)

Fixture Impact (slower/faster)

Category Emotion (positive/negative)

Barriers to Purchase(customised)

2

Category Performance Indicators2a 2b 2c 2d

Overall Recommend Factor Importance Factor Performance (NF) Performance ImportanceMatrix

3

Path to Purchase3a 3b 3c 3d 3e 3f 3g 3h

Purchase Triggers(Planned vs

Unplanned)

What Planned Conversion(planned to buy)

Promotional Response

(incrementality)

Where bought from

POP improvements

Decision Hierarchy

(switch/walk)

Category substitutes

4

Consumer Dynamics4a 4b 4c 4d 4e 4f 4g

Who bought for When to be used

Expandability Repertoire Closed/open minded Private Label Trial Private Label Repeat

5

Shopper Profile5a 5c 5d 5e 5f 5g 5h 5i

Age/Gender Household Composition

HH income & occupation

Who shopped with

Trip Mission Frequency of purchase

(store/category)

Basket Spend Why chose this store

6

SI Category Mindset Model6a 6b

Category Fingerprint Cross Store Typologies

Plus the ability to add custom content for your categories

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You can mine in depth insights by slicing and dicing the “data cube”

Insights can be viewed through multiple Consumption and Shopper lenses to help pinpoint solutions, eg

Brand Vs Private Label

By Major Brand

Key Demographics

By Brand bought

By Shopper type

Retailer Loyalty

Category Spend

Mission

“How do shoppers of my brand compare?”

“Which shoppers are the biggest

opportunity?”

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Shopper Intelligence comes with a highly developed “toolkit” to support application

• National performance overview & rankings

• National brand rankings and reports

Overall National Reports

• Category and Channel Overviews

• Retailer Overviews

• Brand Reports

Automated PPT “decks”

• Category Scorecards

• Point of Purchase “Storyboards”

Issue based summaries

• Quick access to main data component

• Easy navigation by measure category, channel, retailer

On Line Dashboard

• Contains all Shopper Intelligence content

• Pre-prepared charts covering most analysis requirements

PPT libraries

• Ability to “slice and dice” the entire databaseTailored analysis

• On site consulting support to land the main insights included

Support

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Key Performance Indicators

Factor Summary Shopper Needs

SAVE MONEY When I want to save money, XXX is one of the main products in [RETAILER] that helps me

PRICE The prices are great on the XXX products I buy in [RETAILER]

OFFERS I often find good special offers on the XXX products I want to buy in [RETAILER]

QUALITY The quality of the XXX products I buy is great in [RETAILER]

PREMIUM When I buy premium XXX products in [RETAILER], I really notice the difference

HEALTH * The type of XXX I buy in [RETAILER] helps me with the health & well-being of me/my family

SOCIAL RESPONSIBILITY XXX does minimal harm to the environment and is made/sourced ethically

* Measured in relevant categories only

Factor Summary Execution

INNOVATION There are often appealing new ideas in XXX in (RETAILER)

ASSORTMENT [RETAILER] has a good range of XXX products

LAYOUT After I’ve found XXX in [RETAILER], I can easily find the type of XXX I want

OOSI rarely or never have to leave the store or switch to another type of XXX because [RETAILER] are out of stock of my preferred choice

ENJOY It is quite enjoyable and/or interesting to shop for XXX in [RETAILER]

We can add custom measures to individual sponsor business issues

Summary Satisfaction

Overall Satisfaction Recommend shopping for XXX at [RETAILER]

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Our Dashboard

A web portal that enables flexible analysis of the data base

How have clients used this data?

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Application of Shopper Intelligence

Applications: Develop Sell - in Track

Category StrategyWhat are the best bet growth drivers of the category?

Choose the right strategies

Win customersupport of our

proposals

Measure successover time

Joint Business PlansDelivering shopper goals in each customer?

Use key insights for each retailer to underpin plan

Unique data set for each retailer

Retailer specifictracking

Shopper MarketingHow do we leverage our brands and budgets most effectively in path to purchase ?

Identify most effective marketing strategies

Link to retailer goals and issues to gain

agreementMeasure results

Organization CapabilityPutting “Customer” and “Shopper” understanding into the heart of our thinking across the business

Key benefits summarized

© Copyright SMI

This large scale systematic approach provides a unique set of

benefits

All Categories and retailers measured identically with quotas

Consistent over time = Insight from trends

Highly developed toolkit = Fast insights for commercial users

Objective, shared platform with retailers = Achieves traction with buyers

Common fieldwork and reporting platform = Cost efficiency

Cross category & competitor benchmarking

=

Documents

5 examples of how our shopper insights can drive true growth...5 examples of how our shopper insights can drive true growth Roger Jackson, Global Vice President, Shopper Research: