Shopper Trends Selectie

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Shopper Trends 2012Romania

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Research Methodology in RomaniaNielsen | Winning Brands

� Target respondents

� Sampling

� Interview Methodology

� Sample size and

structure

� Data collection period

Main household products shoppers* (main grocery shoppers and key influencers for household monthly shopping), aged 18-65 years

Random selection with quotas for age and gender

The sample is representative on national level for the urban population in large cities (above 200.000 inhabitants) and in medium cities (between 50,000 and 200,000 inhabitants).

Face-to-face home interviews

1.200 respondents

- 300 interviews in Bucharest

- 100 interviews in every of the following cities: Iasi, Cluj Napoca, Timisoara, Constanta, Brasov, Ploiesti

- 60 interviews in every of the following cities: Arad, Tg. Mures, Rm.Valcea, Piatra Neamt, Targoviste

October - November 2011

*Main Shopper: The person in the household who is mostly responsible for most of the food, grocery, and personal care shopping.

**Key Influencer: The person in the household who is not most often doing the household shopping, but who frequently buy food, grocery and personal

care items for the household or actively participate in the decision-making.

shopper trends

Market Context

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Market Context - Summary• After 2 years of significant and continuous decrease in consumers' confidence, Romanians recorded

their first rebound explained by a slightly better view on their personal income and shaped also by a better perception on their readiness for buying things. Both better perceptions are due to improved income levels - average salary increase was in November higher with 8% vs. last year, income growth rate increased 5 times at the end of 2011 versus 2010 (from 1.3% to 8.7%), while inflation significantly decreased (from 7.96% in December 2010 to 3.14% in December 2011). At the same time, the end of the year was positively influencing consumers willingness to spend more... 'moving' the Consumer Confidence Index back to a little higher position than in Q4 2010 (CCI of 54). However, the overall Romanian consumers' confidence remains conservative, lower than European and global average, as only one quarter of the consumers have positive perceptions on their financial state, in an environment of increasing prices and political confrontations.

• In 2011 the perception about the increase of food prices is even stronger than in 2010. More than 4 in 5 shoppers consider that food prices are increasing in Romania

• Smaller traditional trade formats continue to struggle through 2011, being more and more affected by the ascension of the modern trade sector.

• The modern trade sector continued its growth both in terms of shopper engagement and revenue but also when it came to network development, as more than 100 new stores opened their doors during the past year.

• While in 2010 the growth engine was represented by supermarkets, discounters are making a powerful comeback taking the lead with more than 60 new openings in 2011.

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Nielsen Consumer Confidence Index - Europe

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In 2011 income levels improved – the average salary increase was in November higher with 8% vs. 2010, income growth rate increased 5 times at the end of 2011 vs. 2010 (from 1.3% to 8.7%), while inflation significantly decreased (from 7.96% in December 2010 to 3.14% in December 2011).

Inflation

Evolution of Net Wages

*In October as compared to October 2010

Source: INS

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Perceived dynamic of food prices

In 2011 the perception about the increase of food prices is even stronger than in 2010. More than 4 in 5 shoppers consider that food prices are increasing in Romania.

Base: All respondents 2011 (n=1200) 2010 (n=1200)Significantly higher at 95% confidence level

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Shoppers reaction to Food prices rising

Base: All respondents who perceived food prices as growing (n=1019)

More than half of the shoppers who consider that food prices have increased resorted to buying only the essential products and giving up high price products in order to meet their budget.

Significantly more women (30%) declare

be more active in looking for special

offers than men (24%)

shopper trends

Shopping Behavior

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27%

44%

39%

21%

34%

34%

1%

1%

Base: All respondents (n=1200)

7%

30%

28%

44%

47%

13%

13%

7%

1%

5%

1%

3%

Daily

Weekly

Every 2 weeks

Every month

Less Often

2 to 3 time a week

Weekly

Every 2 weeks

Every month

Less often

Frequency of Main grocery shopping Frequency of Top Up/Intermediate Grocery Shopping

More shoppers do their main grocery shopping weekly in 2011 than in 2010. However the frequency of top up/intermediate grocery shopping is almost unchanged.

2011

2010

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24% 25% 26%

55% 56% 56%

19% 19%21%

Nov 2009 Nov 2010 Nov 2011

I seldom try new things - I find it is farbetter to know what you want ratherthan risk buying something that maynot work out

I sometimes buy new brands orproducts - but usually stick to myfavourites

I love trying new things - I'm always onthe lookout for new brands andproducts

Adoptiveness

2011 did not bring any changes in the level of adoptiveness displayed by Romanian

shoppers, as they continue to have a more reserved approach in general.


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94%

91%

84%

82%

80%

80%

79%

77%

76%

66%

65%

64%

61%

59%

50%

45%

6%

9%

16%

18%

20%

20%

21%

24%

24%

35%

36%

36%

39%

41%

50%

55%

I a lw a ys p re fe r to sh o p in a w e ll o rg a n ize d g ro c e ry sto re w ith a p le a sa n t

a mb ie n c e

I re a lly e n jo y d o in g th e g ro c e ry h o u se h o ld sh o p p in g

I u su a lly p la n w h a t I w a n t to b u y b e fo re I sh o p fo r g ro c e rie s

I c a re a b o u t q u a lity a n d I a m w illin g to p a y mo re fo r q u a lity p ro d u c ts

I lik e to ta k e my time a n d b ro w se a ll p a rts o f th e sto re

I a lw a ys ta k e a d v a n ta g e o f a sp e c ia l o ffe r o r d e a l to sto c k u p o n my

e v e ryd a y g ro c e ry ite ms

I u su a lly ma k e a p o in t o f lo o k in g a t c irc u la rs a n d c lip c o u p o n s o n g ro c e ry

p ro d u c ts

A lth o u g h I p la n w h a t I w a n t to b u y b e fo re h a n d , I u su a lly e n d u p b u yin g

a d d itio n a l g ro c e ry ite ms o n c e in -sto re

I u su a lly c o mp a re th e p ric e s o f sto re b ra n d s w ith le a d in g b ra n d s to d e c id e

if th e y a re w o rth b u yin g

A n yth in g th a t sa v e s me time is w o rth p a yin g e xtra fo r

Wh e n sh o p p in g fo r g ro c e rie s, c u sto me r se rv ic e is v e ry imp o rta n t to me

I ma k e a re a l p o in t o f b u yin g h e a lth y o p tio n s

I h a v e a stric t b u d g e t fo r h o u se h o ld g ro c e rie s a n d o n ly b u y th e g ro c e ry

ite ms th a t I n e e d

I ma k e a re a l p o in t o f b u yin g p ro d u c ts th a t a re frie n d ly to th e e n v iro n me n t

I g o to a lo t o f e ffo rt to b u y my g ro c e rie s a t th e lo w e st p ric e s

I u su a lly stic k to my p la n w h e n g ro c e ry sh o p p in g

Yes

No

I always prefer to shop in a well organized grocery store with a pleasant ambience

I usually stick to my plan when grocery shopping

I go to a lot of effort to buy my groceries at the lowest prices

I make a real point of buying products that are friendly to the environment

I have a strict budget for household groceries and only buy the grocery items that I need

I make a real point of buying healthy options

Anything that saves me time is worth paying extra for

I usually compare the prices of store brands with leading brands to decide if they are worth buying

Although I plan beforehand, I usually end up buying additional grocery items once in-store

I always take advantage of a special offer or deal to stock up on my everyday grocery items

I like to take my time and browse all parts of the store

I care about quality and I am willing to pay more for quality products

I usually plan what I want to buy before I shop for groceries

I really enjoy doing the grocery household shopping


Attitude towards buying grocery products

When shopping for groceries, customer service is very important to me

I usually make a point of looking at circulars and clip coupons on grocery products

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Gender

Age by gender

60% 40%

Females Males


Shoppers’ Profile

Significantly higher at 95% confidence level

The proportion of men and women shoppers remained almost unchanged from 2010. However, when it comes to the age splits within each gender, it seems that in 2011 males aged 25 to 34 were more involved in the shopping decisions than in the previous year.

2010 59% 41%

2010 18% 33% 34% 15%

2010 20% 29% 34% 18%

shopper trends

Price & Promotions

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Preferred Promotions

Price reduction is by far the best preferred promotion by shoppers who declare to be influenced by promotions.

Base: All respondents who declare to be influenced by promotions (n=922)

59

28

4

4

14

38

18

10

3

7

3

8

9

11

22

23

4

2

20

3

1

2

1

1

6

Price off

Buy one get one free

Buying one product and getting another

different product for free

Get an extra quantity (20-25%) for the same

price

Instant prizes

Opportunity to collect points

Competition entry into prize draw

Pack of 4 / 6 / 8… with a special price per

unit

Finding presents inside the pack

1st preference 2nd 3rd

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Price Awareness

Romanian shoppers declare to be quite aware of the prices for the items they buy regularly. About 3 in 5 declare to know the prices for most if not for all the prices for the items bought regularly.


8% 7% 8%

32% 31% 33%

38% 40%44%

23% 21%16%

Nov 2009 Nov 2010 Nov-11

Know all the prices of itemsbought regularly

Know prices of most itemsand notice when pricechanges

Don’t know all prices but donotice when prices change

Don’t know or notice prices

shopper trends

Private Labels

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The perception of the quality of the store is even more reflected in the perception of the quality of the Private Labels in 2011 than in 2010. Almost 3 in 4 respondents

agree that the better the store the better the PL is going to be.

Base: All respondents aware of PL (n = 1067)

63

64

66

68

66

58

54

54

52

72

71

68

65

63

60

59

55

55

Generally, the better the store the better the Private Label is

going to be

I usually compare the price of Private Labels with leading brands

to decide if it is worth buying

Private Labels may be cheaper but overall manufacturer branded

products are better value for money

Private Label packs look just as good as manufacturer branded

products

Private Label quality is generally just as good as the quality of

leading brands

I feel better about buying manufacturer branded products for my

family rather than Private Labels

I think Private Label are for those with serious tight budget

I don't know enough about Private Labels to consider buying

them instead of my usual brands

If someone buys a lot of Private Labels, I think they made the

smart choice

% Agree 2010 (Nov) % Agree 2011 (Nov)

+

Significantly different compared to Nov 2010

+

PL brands are considered as…

shopper trends

Store Selection &Spending on Grocery

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Where do people spend the majority of their grocery budget?

2010 2011

22%

50%

21%

55%

Supermarkets

Hypermarkets

2009

19%

53%

Slightly increasing in importance, people continued to spend the majority of their grocery budget in Hypermarkets.

Base: All respondents (2009 n=1200, 2010 n=1200 , 2011 n= 1200)

4% 2%Cash & Carry 5%

18% 17%Discounters 16%

6% 3%Traditional 6%

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45

2

43

21

1011

65

334

2

4

2

20

9

11

65

32

45

2

43

18

10

65

32

11

HypermarketSupermarket Cash &

Carry

Discounter Petrol

station

Bakery Kiosk Traditional

Grocery

Open

market

Vegetable

vendor

Butcher Modern

Pharmacy

2009 (Nov) 2010 (Nov) 2011 (Nov)

In 2011, the visiting frequency for hypermarkets and supermarkets increased slightly, showing signs of market improvement, while the traditional trade struggled to maintain the same rhythm as in previous years.

Large Modern Trade

SCALE: Once a day (30) – Once a week (4) – Less often than once a week (0,5)

Base: All respondents ( Nov 2009 n=1200, Nov 2010 n=1200, Nov 2011 n=1200)

Average Frequency of Visits per Month

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