Point-of-Decision Update: Circular Effectiveness

National Pork Producers Council 1

Point-of-Decision Update:Circular Effectiveness


Today’s Discussion

Point-of-Decision background

Advo circular study

Leemis update

Other industry studies


Background

There is extensive information on overall eating

trends, attitudes/preferences with food and a

myriad of other consumer insights

NPB “Point of Decision” research (2000) provided

new insights into shopping behavior

– A “real-world” perspective on meatcase decision-

making by observing consumer behavior as it happens

– Meatcase shopping behavior quantified for the first

time


The Consideration/Decision Sequence

Campbell Mithun

ConsiderationThink about productPlanning trip to store

Shopping thestore

Browsingaisles

Point of Decision

Not in Market

Not thinking about a product/industry

Most research is

conducted with

consumers when

they are not

actively shopping

Point of Decision research

studied consumers when

they are in “the real world”


Background (cont’d)

However, there is need to further understand the complete consumer decision-making process of fresh meats

Research conducted by direct-marketer ADVO provides insights into purchasing behavior when consumers are planning their shopping trip

ADVO is the single largest distributor of grocery retail circulars in the U.S.

– 144 million circulars weekly reaching 65 million HH


The Consideration/Decision Sequence

Campbell Mithun

ConsiderationThink about productPlanning trip to store

Shopping thestore

Browsingaisles

Point of Decision

Not in Market

Not thinking about a product/industry

Most research is

conducted with

consumers when

they are not

actively shopping

Earlier research studied

consumers when they are in

“the real world”

New study provides

insights into the

planning of store

purchases

National Pork Producers Council 7Source : ADVO Circular Study 2002

Research Objectives

Determine the strengths and weaknesses

of circular layout and design including:

– Location

– Front page

– Graphics

– Circular content

– Size


Methodology

PRS Eye Tracking Method

Each respondent saw one version of each of four

pages

Camera measures

– Track of eye

– Respondents look at

each item for

at least 2/10 second

Followed with

interviews

Source: ADVO Circular Study, 2002


Methodology

349 mall intercept interviews:

– Primary household grocery shopper

– Read grocery circulars at least some of the time

– Men (30%) / Women (70%)

– Age 25-55

– Geographically dispersed markets: Atlanta, Boston, Eau Claire WI, Ft. Lauderdale, Freehold NJ, Houston, San Diego, Phoenix



Location

Top features 45-65%

Logo strip 0-10%

Items 27-49%


The bottom row

is the “dead zone”

% Noted

The center area above

the fold is the “sweet spot”

Features 55-78%

Line items 0-12%

National Pork Producers Council 11Source: ADVO Circular Study, 2002

Key Learning: Location

The center of the page is where consumers

start looking

Most never make it to the bottom row


Front Page Considerations

How many items on the front of circulars

are most appealing?

What items do they want to see?


Number of Items on Front Page

15 Items 12 Items 8 Items



Number of Items on Front Page

15 items is most appealing to 39%, least appealing to 45%

12 items is a close second at 34%, least appealing to only 4%

8 items has lowest appeal, “not enough savings/offers”

27%

34%

39%

8 Items

12 Items

15 Items

52%

4%

45%

8 Items

12 Items

15 Items

Most Appealing Least Appealing



Desired Front Page Items

Consumers want to see meat department on

the front page of the circular.


5%

12%

12%

13%

20%

23%

25%

37%

54%

66%

Diapers/baby items

Household cleansers

Paper products

Personal products

Seafood

Stockup items

Diary products

Soda/beverages

Produce

Meat dept.


Key Learning: Front Page

12 items works best in terms of overall

appeal and efficiency

15 items per page may generate more co-

op revenue, but smallest items in the

bottom row are missed by most consumers

Front page must feature meat/poultry and

produce


Graphic Considerations

Which price point size is most appealing?

Which artwork is most appealing?

Which pricing style is most appealing?


Price Point Size

Small Medium Large



Price Point Size

Medium price point size is the most appealing.

26%

42%

32%

Large

Medium

Small

54%

2%

44%

Large

Medium

Small




Artwork

Color Photography Black & White Photos Comic Color



14%

2%

84%

Comic Color

Black & White

Color Photos

28%

70%

2%

Comic Color

Black & White

Color Photos


Artwork

Color photography

wins by wide margin

70% find black & white

least appealing


Move the “84%”

to the right


Pricing Style

Offset


Yellow Starburst Product Overlap


Pricing Style

Yellow starburst is most appealing

8%

16%

76%

Product Overlap

Offset

Starburst

65%

30%

5%

Product Overlap

Offset

Starburst




Key Learning: Graphics

Medium price point size has the greatest

overall appeal

Color photography appeals to the large

majority (85%) for realism, appetite appeal

Yellow starburst pricing is the most

appealing (76%)


Circular Content

Which meat visual is most appealing?

Which editorial content is most appealing?

Which savings feature is most appealing?

Which price promotion is most appealing?


Visual


Cooked/finished

dish

Cooked meat Raw meat




54%

22%

24%

Raw

Cooked

Finished

30%

25%

45%

Raw

Cooked

Finished

Visual

Overall, cooked and prepared are most appealing to 70%, least appealing to 46%

Raw meat is most

appealing to only 30%

70% 46%


TestimonialCommunity

MessageRecipe

Editorial



Editorial

10%

41%

49%

Testimonial

Community

Recipe

58%

22%

20%

Testimonial

Community

Recipe

Most Likely to Read Least Likely to Read


Recipes are most likely to be read.

Community messages are more likely to be

read than testimonials.


Savings

Double/triple coupons are most appealing.


24%

29%

47%

Shopper

Card

$5 off

Double

CouponsDouble/triple

Coupons

$5 off w/$25 purchase

Shopper Card Extra

Savings


43%

34%

23%

Shopper

Card

$5 off

Double

CouponsDouble/triple

Coupons

$5 off w/$25 purchase

Shopper Card Extra

Savings


Price Promotion

Reference

Pricing Half Price SpecialsBuy One, Get

One Free



Price Promotion

“Buy One, Get One Free”

format is most appealing

to respondents

Reference pricing is least appealing

14%

27%

59%

Reference

1/2 Price

BOGO

59%

18%

22%

Reference

1/2 Price

BOGO


Source: ADVO Circular Study 2002


Key Learning: Circular Content

Meat and seafood cooked or presented in a

finished dish is most appealing

Recipe and community editorial items are more

likely to be read than shopper testimonial

Double/triple coupon offers have the greatest

appeal

BOGO is the most appealing promotional

message for pricing


Size Considerations

Which circular size is most preferred?


9%

29%

62%

Don't Know

Broadsheet

Tabloid

10”x13”

11”x21.5”

Circular Size

Preference

Key Learning: Size

Consumers prefer

tabloid size 2:1

}More convenient~

}Easier to handle~

}Easier to read ~



Conclusions

Location

–The “sweet spot”


Conclusions

Front Page

–12 items

–Meat/poultry and

produce


Conclusions

Optimal Graphics

–Medium size price

–Color photography

–Yellow starburst


Conclusions

Circular content

– Cooked or in a finished dish

– Recipe, community message

– Double/triple coupons

– BOGO

Size

– Tabloid

Documents

Point-of-Decision Update: Circular Effectiveness