shopper insights wine09

10 Shopper Insights that You MustKnow and dos & don’ts

A Wine Adaptation

Jim Fortune jfortune@bigpond.net.au

1

3

5

7

9

Shoppers have difficulty making decisions

Shoppers want to feel smart when making decisions

Shoppers’ limited ability to process too much information

Shoppers use memory to give meaning to objects

Shoppers need consistent messages in and out of the store

Discontinuity creates triggers to attract shoppers’ attention

Shoppers recognize visual stimuli most easily

Shoppers use familiar segments to speed up their selection process

Shoppers’ tunnel vision and “boomerang” behaviour

Shoppers need to be reminded of the items they need

10 SHOPPER INSIGHTS

2

4

6

8

10

Start with a fact not an insight –something that often seems to be

overlooked for wine

• More choices, more difficult to make a selection• It is very common for shoppers not to know exactly what

they want.• Shoppers need information/education to make a decision.

1. Shoppers have difficulty making decisionsShoppers have difficulty making decisions1

1. Shoppers have difficulty making decisions1

0

200

400

600

800

1000

1200

1996 2000 2004 2006 2008

Avg. # SKUs Carried by a Supermarket - wine

• 46% shoppers spend 3min+ in front of shelf

• 52% shoppers pick up 3+ products

Source: speculative data for example

Shoppers have difficulty making decisions1

• More choices, more difficult to make a selection• It is very common for shoppers not to know exactly what

they want.• Shoppers need information/education to make a decision.

1Dos

• Education in store through relevant point of sales materials

• Train promoters on how to facilitate shoppers’ selection process

Don’ts• Assume shopper know how to

choose products• Overwhelm shoppers with point

of purchase materials!

1. Shoppers have difficulty making decisionsShoppers have difficulty making decisions1

• Shoppers want to make a wise and smart decision.

• They also want to be seen by peers as making the right choice.

Shoppers want to feel smart when making decisions2

Do you think the shopper will feel smart with this promotion?

2Shoppers want to feel smart when making decisions2

• Shoppers want to make a wise and smart decision.• They also want to be seen by peers as making the right

choice.

Dos• Focus on how to make shoppers

feel that they’ve made a smart decision rather than on the deal per se

• Emphasize “Smart Choice” in promotional activities.

Don’ts• Disappoint shoppers, even after

the sale (e.g. high-low price strategy)

Shoppers want to feel smart when making decisions2

Shoppers’ limited ability to process too much information

• The mind can only process 5-7 pieces of information • Thousands of stimuli exist in a store:

– Some information is compressed– Some information is screened out

• Too much information leads to “lock out”

Result: less than 50% of shoppers are able to recall any available point of sale marketing!

3

Dos• Stimuli need to be clear and

unambiguous• Create relevant in-store

communications that help shoppers make the right choice

Don’ts• Overwhelm shoppers with clutter

in store and on the shelf

• The mind can only process 5-7 pieces of information • Thousands of stimuli exist in a store:

– Some information is compressed– Some information is screened out

• Too much information leads to “lock out”

Shoppers’ limited ability to process too much information 3

What’s is the brand?

Shoppers use memory to give meaning to objects

• Shoppers need to be given a clear stimulus in order to access their memory.

4

Is this brand?

• Shoppers need to be given a clear stimulus in order to access their memory.

Shoppers use memory to give meaning to objects4

What’s this brand?

Shoppers use memory to give meaning to objects4

• Shoppers need to be given a clear stimulus in order to access their memory.

Dos• Use visual stimuli that are

consistent with what shoppers know for better memory retrieval

• Use existing pathways – colour, shape, font…

• Merchandising tools need to have meaning

Don’ts• Use non-standard font, colour or

shape• Use visuals that inconsistent with

those used in other channels: e.g. TV ad, print

Shoppers use memory to give meaning to objects4

Shoppers need consistent messages in and out of the store5

SHIRAZ excels at deliveringthe sort of BENEFITS that

customers truly desire.

• Shoppers need consistent messages to make the transition from consumers to shoppers.

Dos• Use 360-degree communication• Align above- and below-the-line

activity• In-store communication also

needs to be aligned with shoppers’ needs and mission

Don’ts• Don’t break the dialogue at point

of sale by sending a different and/ or irrelevant message.

Shoppers need consistent messages in and out of the store5

• The mind ignores what it knows and focuses on differences

6Discontinuity creates triggers to attract shoppers’ attention6

Discontinuity creates triggers to attract shoppers’ attention

• The mind ignores what it knows and focuses on differences

6

Dos• Enhance shelf design &

merchandising tools by using: – Different shelf layouts– Different lighting intensities– Different flooring – Curved designs– Different colour patterns

Don’ts• Design without any discontinuous,

stimulating element

• The mind ignores what it knows and focuses on differences

Discontinuity creates triggers to attract shoppers’ attention6

Shoppers recognize visual stimuli most easily

From “flashy” visuals …

7

… to more subtle but unique approaches.

7Shoppers recognize visual stimuli most easily7

Shoppers recognize visual stimuli most easily

What’s this ?

7

• Shoppers can process information in visual form (e.g. pictures) much more easily than words.

7Dos

• Use pictures/visuals• Simple words such as SAVE,

SALE, FREE…

Don’ts• Use wordy text in point of sale

materials (shoppers won’t read them!)

Shoppers recognize visual stimuli most easily7

Shoppers use familiar segments to speed up their selection process8

• Shoppers first sort out what is not relevant, then choose among the remaining products.

8

RedWhite

Sparkling

BottleBIB

CaseRegional

Specialoccasion

inc.imports

ChilledAmbient

Specials

• How many distinct category segments in your local store?

• Little association between some groups• Specials segment is associated with all

Shoppers use familiar segments to speed up their selection process8

• Shoppers first sort out what is not relevant, then choose among the remaining products.

Dos• Make it easy for the shopper to

sort out what is and is not relevant

• Organize products based on how shoppers make decisions

• Think about needs-based shelf layout

Don’ts• Organize products on the shelf in

a way that is not aligned with shoppers’ selection logic.

• Organize the store in a way that shoppers need to spend more time to find the brand they want.

Shoppers use familiar segments to speed up their selection process8

Shoppers’ tunnel vision and “boomerang” behaviour

• Shoppers have a tunnel vision when viewing fixtures at eye level.

• Also, if they cannot find what they want half-way down the aisle, they often turn round and leave the fixture.

Module 1 2 3 4 5 6 7 8 Shelf 1

2345678

Eye level

6% - 10%

4% - 5%

3% or below

Corridor side

% of interaction

9

• Shoppers have a tunnel vision when viewing fixtures at eye level.

• Also, if they cannot find what they want half-way down the aisle, they often turn round and leave the fixture.

Dos• Place relatively weak brands at

eye level, so they stand a better chance to be noticed

• Place your brands close to the main entrance of the fixture

Don’ts• Don’t expect shoppers to go the

extra mile to find your brand because they won’t!

Shoppers’ tunnel vision and “boomerang” behaviour9

Shoppers need to be reminded of the items they need10

Planned but not purchased wine Planned and Purchase wine Not planned but purchased wine

Impulse purchase rate analysis

Why? – In-store triggers

No

Yes

Closure rate analysis

Why? – In-store barriers

Details of preplan

Planned to buy wine?

Yes

Purchased wine or not?

Changed Plan or not?

Why? – In-store impacts

Yes

74%

26%

12%62%

33%

No

71% of shoppers make their final purchase decision in store!

100%

(example data only)

Not planned but purchased wine

Impulse purchase rate analysis

Why? – In-store triggers

26% Impulse Purchase

3

6

29

61

Reasons for Impulse Purchase - (%)

I was reminded by in-store stuff

It is on promotion now

Recommended by accompanier

Recommended by promoter

Shoppers need to be reminded of the items they need10

• Food-wine matching –talked about, rarely displayed

• Reminding shoppers with some label cues.

Shoppers need to be reminded of the items they need10

• What’s wrong with pairing?• Increasing value of recognition and purchase.

Shoppers need to be reminded of the items they need10

• Grouping categories in line with shoppers’ logical selection process triggers their memory and leads to more sales – whether planned, unplanned or impulse.

Dos• Organize the fixture around

shoppers’ needs and mission to make the most of their limited time at point of sale

• Create in-store solution centers

Don’ts• Use secondary displays with

illogical category adjacency• Arrange the fixture based on

what makes sense to the Category Manager!

Shoppers need to be reminded of the items they need10

Summing up• Consumers and shoppers are two

sides of the same coin, hence consistency is needed in our communications.

• The store environment has enormous impact on shoppers and their behaviour.

• In order to influence shoppers to our advantage, understanding what makes them “tick” is fundamental.

• Therefore, shopper insights are key to win “in the last mile”.

Thank you for your framework & sharing goes

to

Ken Zhang, ZdologyJavier Calvar, RI China

Images courtesy of web sites and more formal open access material such as FLICKR and SlideShare

Thank you