How can Understanding Shopper Behaviour Drive the Category

How can Understanding

Shopper BehaviourDrive

Coca-Cola Hellenic Group Category Development

BehaviourDrive the

Category?

What are

Shopper

Insights?


Un

de

rstan

din

g

Insights?

why shoppers make the

decisions they do

and how to influence

those decisions

How can we best Understand

average Shopper Behaviour…

P I T A


Total

Sales=Population IncidenceX

Transaction

FrequencyXAmount per

TransactionX

P I T A

But to Drive the Category we need to

understand the Shopper beyond the “Average”…

Coca-Cola Hellenic Group Category Development 4

AndreiMaria

Both have families…


Both watch the newsevery day …


Both are motivatedwhen they shop…


Both go to the same store …


… but see different things…

Both spend about the same amount on Coca-Cola…


… but have very different needs…

pri

ce

pri

ceBoth create value for our Retail Customers and our Company…


volume

Andrei

Maria

… but with different economics

volume

… giving very different PITA Metrics and Potential to

Drive the Category…

P I T A


Population IncidenceXTransaction

FrequencyXAmount per

TransactionX

P I T A

FROM TO

So armed with these shopper insights we can move …


“Spray & Pray”

Precision Marketing

ad

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s

me

ssag

ing

shopper paths

disp

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s

asso

rtme

nt

How do I tailor my

messages

to specific

shoppers?

Which

products are

best for

What should the

differences be in

assortment

by store size & format?

How can I drive shoppers to

the Category?

and answer key strategic issues…


ad

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ncie

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me

ssag

ing

disp

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asso

rtme

nt

Promotions

best for

adjacencies &

displays?

How can I maximise

my promotions?

ad

jace

ncie

s

me

ssag

ing

shopper paths

disp

lay

s

asso

rtme

nt

So What have we done?

How do I tailor my

messages

to specific

shoppers?

Which

products are

best for

What should the

differences be in

assortment

by store size & format?

How can I drive shoppers to

the Category?


Promotions

ad

jace

ncie

s

me

ssag

ing

disp

lay

s

asso

rtme

nt

Strategic Plan Development to

Drive the Category

best for

adjacencies &

displays?

How can I maximise

my promotions?

1

Identify &

2

Mine the

3Build a

Shopper

3 Simple Steps:


Identify &

Prioritise the

Opportunities

Mine the

Insightswhich Unlock

the Value

Shopper

CentricCategory

Plan

INC

RE

AS

ING

SP

EN

D

IN S

SD

CA

TE

GO

RY

We segmented Sparkling Soft Drinks Shoppers with Similar Behaviours …


INCREASING LOYALTY

TO Coca-Cola SSD

INC

RE

AS

ING

SP

EN

D

IN S

SD

CA

TE

GO

RY

1

Prioritise the

Opportunities

Se

gm

en

t Brandy Andy

KEY SHOPPER FACTS:

• Loyal to both Tesco and

Coca-Cola Sparkling

Soft Drinks (SSD’s)

• Not Price Sensitive


Se

gm

en

t –H

ea

vy

Loy

al

• Mainly ‘Full Shop’

• Focus on Convenient

products

• Stocks up with Large or

multi-pack SSD’s

1

% of

Category 25% 18% 11%

PITA

OpportunityA T T

2Mine the

insightswhich

unlock

the value

3Build a

Shopper

Centric

Category

Plan

Understand

shoppers

behaviour to

Prioritise

Heavy Loyals

RepertoireLight

Loyals

1

Prioritise the

Opportunities


Opportunity

% of

CCH Value44% 22% 18%

% of

Shoppers11% 9% 30%

Prioritise the

Opportunity

3 Segments = 84% of

CCH Shopper Spend

12

Price Sensitive No Yes No

Shopping

Mission

Full Shops

Top Ups

Shops

Total Store

Top Ups in

Express

Key Categories Chips Scratch Alcohol

Basket

Differences

show us

how to

Heavy Loyals

RepertoireLight

Loyals

2Mine the

insightswhich

unlock

the value

3Build a

Shopper

Centric

Category

Plan

1

Prioritise the

Opportunities


Key Categories Chips Scratch

Cooking

Alcohol

Pack

Preferences

Multipacks 2 Litre Small Packs

how to

Motivatethem

Match Motivations to Tactics through

Segmented Activation

Targeted

Messaging

Yes

Loyalty

Yes

Promotions

No

Assortment Expand

Upscale

Leverage

Upsize

Recruit with

Small and

3

Tailoring

Communication

and

Relevant

Heavy Loyals

RepertoireLight

Loyals

A T

2Mine the

insightswhich

unlock

the value

3Build a

Shopper

Centric

Category

Plan

1

Prioritise the

Opportunities


Upscale

packs

Upsize

packs

Small and

Upscale packs

Displays &

AdjacenciesAdjacencies

for Top Up

missions

Displays

early in Path

Adjacencies

Relevant

Activation

will meet

Shopper

NeedsResulting in Long Term

Category Growth

21

SSD Shopper Centric Strategic Category Plan

T

Strategy Tactic Shopper Segment FROM -> TO

V 23,4 V V 2011 33,3 13,7 23,4 Tactic 1

Tactic 3

Tactic 2 V

VV

V


T

A7,1 zł9,1 zł 8,0 zł 5,5zł

7,4 zł 9,2 zł 8,2 zł 6,4 zł

2010

2011 Tactic 5

Tactic 6

Tactic 7

V V

V

V V V

14,6 23,4 9,5 6,9 2010 Tactic 4 V

+5.7%

So What now?

IMPLEMENT

Merchandising & Ranging

2011 Q1

2010

PLAN

Strategic

Category

Plan

REVIEW

Measurement & Tracking

2011 Q2&3


Promotions

& DisplaysClubcard

Media

Targeted execution to deliver growth

PlanTesco

Operational

Procedures

Shopper

Insight

Category &

Supplier

Strategy

SET GROWTH

TARGETS BASED

ON SHOPPER

METRICS

2011 Q4 -> 2012…

Metric A: From X TO Y

CATEGORY VALUE +€Xm

by SHOPPER A & B

How can Understanding

Shopper BehaviourDrive


BehaviourDrive the

Category?

Thank You

Documents

How can Understanding Shopper Behaviour Drive the Category