for Retailers Manufacturers and Shoppers 1 The business issues - PowerPoint PPT Presentation

Creating the Triple Win for Retailers Manufacturers and Shoppers 1

The business issues for Retailers and Manufacturers? • Increase footfall • Grow brand share • Attract more profitable - volume and value • Find and Launch new products customers • Retain good customers • Get consumer trial & repeat • Increase spend per visit purchase • Have a differentiated offer • Create brand equity & buzz • Maximise profit by space • Get Consumer endorsement 2

Manufacturers generally own the brands and Retailers the selling environment Retailers and Manufacturers have to work together to create an environment which creates a Triple Win . This happens when: The Retailer has a differentiated offer The Shopper can buy what they want easily The Manufacturer can optimise their sales for the Retailer’s customers in the Manufacturer’s category . 3

The Triple Win - let’s explore where the Shopper fits Shoppers shop to fulfil goals e.g. Emotional • Experience • Treat/Rewards • Fun/excitement • Relieve boredom Functional • Household needs • Personal needs • For specific usage occasions/needs 4

Different shoppers shop differently according to: Specific channels Men & Women Hypers/supers With/without children Convenience Different cultures/nationalities On line Different age groups Specific Retailers Different beliefs/attitudes Time of day Main/large shop Top up /refill shop Day of week Special occasion Distress purchase Etc. 5

Shopping is a lot harder now than 10000 years ago 6

The way we shop is linked to the way our brains are wired • Scan the environment and identify threats • Identify faces and focus on children • Vision with a concentration on peripheral vision, foveal vision, and focus • We use our gut instinct – System 1* thinking • We deselect via scanning with our peripheral vision • We use colours /shapes/signs to find things • Our faces show what we are feeling * Daniel Kahnemann Thinking Fast , Thinkign Slow 7

Increasing awareness of this topic !

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Different shoppers shop differently according to the product range available: 10

Each shopper has a unique path-to-purchase SEARCHING & Selecting the final SKU DISCOVERY Where can I find/see/ buy a product like this CHOOSING Learning about INFORMATION the category & GATHERING brands BUYING A need /desire to buy (a) product(s) SHOPPER Making the purchase NEED 11

Which is ever more complicated in the digital age 12

A granular understanding of the path-to-purchase, specific for your category and your brand, is vital to develop a winning formula How shoppers choose a brand is SEARCHING & DISCOVERY one of the most important points: • Finders have a clear understanding of what they CHOOSING want, in store they are simply trying to FIND the brand they want; INFORMATION • GATHERING Deciders are shoppers who use the in store environment to DECIDE on the brand. BUYING FIND DECIDE SHOPPER NEED 13

The position of a category or brand in the decision grid has powerful implications. PLANNED/UNPLANNED CATEGORY PURCHASE HOME STORE PLANNED FINDER UNPLANNED FINDER WHERE BRAND IS DECIDED HOME  Brand marketing  Brand marketing  Stock favourite brands  Stock favourite brands  Shelf : fast retrieval of products  Shelf : fast retrieval of products  Pre-store promotions  Pre-store promotions  Reminder marketing  Secondary placements/displays  Shop location/adjacencies PLANNED DECIDER UNPLANNED DECIDER STORE   Special displays Special displays   In store communication In store communication   In store promotions / price In store promotions / price   Use packaging to lure shopper Use packaging to lure shopper   Shelf : consumer decision tree Shelf : consumer decision tree  Reminder marketing  Secondary placement/displays  Shop location/adjacencies 14

So to grow sales collaboratively – address all these areas 15

Ipsos global solutions toolkit Retailer Sales Growth Category Sales Growth Brand Sales Growth BUSINESS ISSUES BUSINESS ISSUES BUSINESS ISSUES Helping retailers win trips, build Increasing category sales by creating Maximizing Brand sales by optimising SOW, and maximize basket size. engagement, improving shop-ability pricing, promotions and POS materials and offering the right product range to trigger sales and remove purchase barriers IPSOS SOLUTIONS IPSOS SOLUTIONS IPSOS SOLUTIONS • Channel B&A • Adjacencies • Price/Promo Optimizer • Retailer Perceptor • Decision Tree • Barriers and triggers • Efficient assortment • POS and In-store Activation Tests Influencing Path to Purchase IPSOS SOLUTIONS BUSINESS ISSUES Helps clients set priorities for when, where, and how to engage with shoppers. • Pathfinder (qual) • Connections (quant) Activation BUSINESS ISSUES IPSOS SOLUTIONS • Sudoku workshops Translate shopper insights into actions to create . specific Retail strategies 16

Top tips for finding shopper insights 17

Applied Shopper insights must lead to behaviour change Shop more often Spend more per visit Increase footfall • Who? • • How frequently Create unplanned • Why? • For what purchases • When? • categories More premium • Where? purchase • Promotions 18

Use the right tools to capture real shopper insights 1 Context is King Observe behaviour (conscious & 2 non conscious) 3 Capture in the moment Focus on the P’s to change 4 behaviour 5 Turn insights into action 19

1. Context is King 1 Use of physical retail labs or virtual store labs • Close to market conditions • Pre test POS materials • Compare shelf layouts • Explore Adjacencies What are the benefits of a shopper lab? • No store permissions • Confidentiality for new products/POS materials • Controlled environment • Cheaper & faster than in real store 20

Context is King 1 Understand the way we are wired when shopping System System 1 2 Fast Thoughtful Unconscious Conscious Emotional Rational Both Impact Decisions

2. Observe what is seen via Eye-tracking (glasses 2 option in lab or real stores) Eye tracking identifies hot spots on a real shelf. Permission required in real stores 22

2. Observe non conscious behaviour using neuroscience 2 23

2. In store observations: Here’s how we do it ... For 2 Engage Lite or using static video cameras installed On site observers map shopper movement and interaction using digital pen technology Data is automatically transferred to smart phones via Bluetooth Data is then uploaded to our analytics team who convert it into clear, Management reports can be accessed accessible reports anytime, anywhere via the central web portal 24

2. Measuring Unconscious – Committed response to 2 “ buy often is significantly improved for the new pack The brand is… Consumers indicating Explicit (Top 2 Box agreement) & Emphatic (Explicit + fast reaction times) Responses I Would Recommend I Would Buy Often For Me Total Maintained Commitment Growth Maintained Explicit “Yes” (T2B) 63% 61% 59% 59% 58% 57% Uncommitted “Yes” (T2B) Emphatic Avg. Emphatic Range 32% “Yes” (Explicit 25% 24% (20-40%) 21% 20% A & Implicit) 6% Current Pack (A) New Pack Current Pack (A) New Pack Current Pack (A) New Pack (B) (B) (B) Base: N=151; N=145 Significance testing at 90% CI Q: For each statement, please indicate whether you agree or disagree that the statement describes BRAND 25 25

3. Use mobiles to capture “in the moment” research 3 Respondents answer questions, take photos, and tag their locations through their Smartphones in order to capture their environment and behavior at the point of their purchase experience. Ipsos has conducted a number of studies using this technique e.g. This example enabled recommendations to be made on : • The brand should consider placing product in a specific section of the In Store location xxxx aisle where most of their target is shopping. Appropriate activation • Using a price promotion to draw attention to the brand. • Specific recommendations were made on the pack-color, labeling, Pack design product contents etc 26

TOOLKIT 3 IPSOS MOBILE IPSOS APPLIFE DIARY/ SURVEY LIVE DISCUSSION APP APP MOBILE IN- SMS BROWSER 27

4. Shoppers are influenced before, during and after 4 the purchase by the many P levers that are available POS stimuli Price Pack Promotion Points of View Product Placement Positioning 28

4. Focus on the P’s 4 Contrast the P’s in different retailers or channels – across channels and within channels Avg. importance P across channels P RODUCT 93 104 104 P ACK 98 99 102 P RICE 93 100 106 92 103 104 P OS MATERIAL P OSITION 90 104 106 93 102 104 P ROMO Hypermarket Large supermarket Small supermarket n=197 n=412 n=404 29

5. Shopper insights must lead to action 5 Increase footfall Spend more per visit • • Who? Create unplanned • Why? purchases • • When? More premium • Where? purchases • Promotions • Buy more Shop more often profitable brands • Enhance the • How frequently shopper • For what experience categories 30