Shopper trends introduction (with hyper example)

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  • 1. W nni ng Br ands iF or es i g htShopper Trends Introduction

2. Agenda Business issues addressed by Winning Brand Foresightfor Retailers (via Shopper Trends) What is WBF and how it works? How WBF is applied? Case Study Where can you get support to run a WBF for Retailers? Q&A Shopper Pa 3. Business Issues Addressed Delivers store foresight Store Threat: Is your store likely to be resilient or decline in the face of strong competitive activation? What is the threat potential for your store? Store Opportunity: What stores have strong growth potential those that have the potential for the highest returns on investment? Prioritizes Store Action Where should you focus your marketing attention on combating the threat potential or capitalizing on the opportunity/ potential? Should you focus on retention or attraction?Shopper Pa 4. Business Issues Addressed Maps strategic and Strategic : Saliencetactical plan for Should the store be driving its quality ofdriving attraction/ awareness?retentionStrategic : Store Associations How should the store be positioned?Strategic : Competitive FocusWhat competitive stores should you focus on to prevent defection orinduce switching?Tactical : Shopping Modality What activates store choice for your target shoppers? What are their shopping behavior? Tactical : Targeting How will you reach your consumer profile? What is their demographic profile? Shopper Pa 5. Are shoppers diffusing towards our store or away from it?Within the dynamic competitiveenvironmentAre shoppers switching towardsyour store or defecting away from competitor byour store?Are your shoppers beginning to feeldisillusioned with your store and STORE Agetting attracted to competitivestores?competitor c ShopperPa 6. Behavioral and emotive bonding are occasionally not in syncTHREAT OPPORTUNITYshoppers may visit your shoppers may not visit your store, but not be emotivelystore, but are attracted to it bonded to itthey create defectionthey create draw pressurepressure I dont like it but Iam waiting forsomething differentto come alongcloser to home I like store x but its a bit far away Keep visiting it out of habit but I dont love it ShopperPa 7. What is our stores relationship with shoppers? How many shoppers are Bonded, Tenuous, Attracted and Reluctant towards your store? TenuousBonded HiRegular shoppers Behavioral Commitment BondedTHREATAre there a lot of Tenuous shoppers? - they exert Defection pressure GROWTHAre there a lot of AttractedAttractedshoppers? - they exert Draw pressure? LoReluctant Attracted Lo Store EquityHiPreferenceAdvocacyWilling to pay price premiumWillingness to travel Shopper Pa 8. ..not all Tenuous and Attracted shoppers are equally likelyto switchShoppers exhibit differences in their willingness to experiment across different stores and can be segmented as omega and delta shoppers omega delta shopping modality shoppers shoppers Habitual shoppers Open to new information Do not experiment by Experimental - try new storestrying new stores Influenced by buzz / advertising Attracted by promotions delta shoppers are most likely to switchShopper Pa 9. What is the immediate threat / opportunity potential forour store? The size of the Delta segment within the tenuous and attractedshoppers represents the threat and attraction potential THREAT POTENTIALGROWTH POTENTIALAttractionRetainingSwitchersTenuous Delta shoppers Attracted - Delta shoppersAre theswitcherslikely to betenuous retained?attracteddelta delta How many of your stores Delta shoppers are bonded to it?Shopper Pa 10. Shopper Pa 11. What is the immediate threat /growth potentialfor our store? THREATIs the store likely to be Propensity for defection POTENTIAL resilient or decline in the Ratio : face of aggressiveTenuous Delta / competitive activity? Regular shoppers GROWTHWhich store is likely toPropensity to attract POTENTIAL get the biggest bang forRatio : its buck if it stepped up Attracted Delta / its investment? Non - regular shoppers Propensity to retain switchers Ratio : Bonded Delta / Regular Delta shoppersShopperPa 12. What are the strategic implications?Hi TenuousBonded DEFENDREINFORCE your resilientand drive equity source of profitabilityBehavioral Commitment Regularly shop at your store Regularly shop at your Love your store / recommendstore but are not it emotively bonded Willing to travel Willing to pay a price premium TARGET LOW PRIORITY and drive switching No behavioral or Attracted to your store emotive bondingbut are not behaviorally committedReluctant AttractedLoLoStore Equity Hi ShopperPa 13. Threat Potential Which stores are more likely to decline in the face of strong competitive activity? Retailer E & Retailer F have the highest threat potential. STORE EQUITY INDEXTHREAT POTENTIALRetailer A 70Retailer A 3.5Retailer B 3.2Retailer B100Retailer C 1.5Retailer C117Retailer D 1.2Retailer D111Retailer E0.7 Retailer E178Retailer F 0.5Retailer F135 0 1 2 3 45(indexed to market average)ShopperPa 14. Growth Potential What stores are likely to drive their share the most if they were to step up their investment / marketing activity? Compared to Retailer A, Retailer B has a stronger potential to attract new shoppers, but is relatively weaker at retaining them.AttractionRetainingGROWTHPotential Switchers POTENTIAL Retailer A153 140143 Retailer B19298120 Retailer C94 84 86 Retailer D10572 80 Retailer E94 10 30 Retailer F43 63 58(indexed to market average) Shopper Pa 15. Store Behavioral | Emotive Relationship Store Equity IndexBrand Behavioral | Emotive Relationship 38%Retailer A 3.5 Retailer A37 23 231751%Retailer B 3.2 Retailer B 30 31261368%Retailer C 1.5 Retailer C102126 43Retailer D 1.2 Retailer D8192746Retailer E0.7 Retailer E 1 729 63Retailer F 0.5 Retailer F 4 7 13 77 0 1 2 3 4 50% 20%40%60%80% 100% Bonded Tenuous AttractedReluctant Shopper Pa 16. Delta Profile : Regular shoppers / Non shoppers% Delta shoppers amongregular shoppersRetailer A 42 % Delta shoppers among nonRetailer B41 -regular shoppersRetailer C 43 Retailer A 35Retailer D37 Retailer B37Retailer E 43 Retailer C37Retailer F 43 Retailer D40 10 15 20 2530 354045 50 Retailer E 39 Retailer F 391015 2025 30 35 4045 50 ShopperPa 17. Internal Use onlyHow do we pick what strategy to focus on?What strategic focus areas should we conduct the drill down analysison? Need to focus marketing thrust preferably on one key imperative! Should we focus our attention on defending against defection or onattraction?ThreatAttraction FOCUSHighLowDefendHighMedDefendHighHigh Defend & AttractLow LowAttractLow MedAttractLow High AttractMed LowDefendMed MedDefend & AttractMed High Attract If Threat is High, then Retaining switchers will be low, since they are likely to be the inverse of each other and vice versa. If Threat and Retaining switchers is an issue, then focus on Defending Defection.ShopperPa 18. Strategy Focus : Next StepTenuousBonded HiThreat Potential :AverageMANTAIN yourDEFENDAttraction Potential : Behavioral Commitment and drive equity resilientsource of profitabilityAverageRetaining Switchers :AverageThreat Potential >Growth PotentialTARGETLOW PRIORITYREDUCE and drive adoptionDEFECTIONTHREATFocus on drivingReluctantAttracted Loemotive bondingamong regularLo Store EquityHishoppers ShopperPa 19. Where should attention be focused toprevent defection? TARGET Tenuous Strengthen emotive bonding to prevent defection 20. Strategic & Tactical RoadmapStrategic: SalienceSpontaneous Store Awareness: Bonded vs. Tenuous or AttractedStrategic: Store AssociationsStore Associations: Bonded vs. Tenuous or AttractedStrategic: Competitive Cross Store Affinity: What stores are they likelyFocusto defect to? Cross Store Usage: What stores should we induce switching from?Tactical: Shopping Shopping ModalityModality Store selection triggers, Promotional sensitivity, Price awareness, Planned shopping trips, Browsing behaviour,Shoppingpleasure,Private label awareness & purchase & Categories purchased at modern tradeTactical: Targeting Consumer Profile Household profile, Education, Grocery shopping role & Marital statusShopperPa 21. Spontaneous Store Awareness : Bonded vs. TenuousIs low store saliency contributing to the defection propensity? For example, as would be expected, Tenuous have a lower spontaneous awarenesscompared to Bonded shoppers. However the gap in spontaneous awareness across the 2 segments is similar to themarket average. Therefore it is not critical to strengthen the quality of awarenessamong the Tenuous.Spont Awareness - For ExampleTenuous / BondedSpont Awareness Ratio Bonded980.83Tenuous81Market average 0.82010 20 30 40 50 60 70 8090 100Shopper Pa 22. Store Associations : Bonded vs. TenuousThe gaps in store image betweenthe Bonded and Tenuous revealwhere attention needs to befocused to prevent the Tenuous IMPLICATIONSshoppers fromswitching tocompetitive stores PRIMARY FOCUS Convenient to get to Strengthen CoverageWhat image Close to home levers needto be moved Everything I need in one store Widen Assortmentto prevent Wide product range anddefection?variety Improve Layout Well presented displayofproducts Easy to find what I need SECONDARY FOCUS Low prices for most itemsExecute aggressive Good value for moneyprice / promotion Attractive promotions strategies ShopperPa 23. Store Associations : Bonded vs. TenuousIMPORTANCEBondedTenuousAccessibility0 20 40 6080 Convenient to get to0.40Store Brand Performance (Top Box) in % Close to home 0.40 Low prices for most items 0.22Price Good value for money (groceries)0.22VFM Attractive promotions 0.21 0.11 Good own stores0.26 Easy to find what I needEfficiency / Loyalty 0.16 Staff provide good serviceProgram 0.16 Has loyalty programs 0.12 Ease of parking0.09 Efficient checkout counters00.2 0.40.6 Shopper Pa 24. Store Associations : Bonded vs. Tenuous IMPORTANCEBondedTenuous 0 20 40 6080 Everything I need in th