customer & channel perspective module 6.2.09

8/8/2019 Customer & Channel Perspective Module 6.2.09

1/81

How do leading retailers develop their strategy ?

1. Understand shoppers

2. Identify an opportunity space which they can own

(shopper segment and shopping trip)

3. evelop a proposition which meets

1) !rand Identity 2) "etail #ormat

3) In$%tore


2/81

&I'


3/81

ey *oints from %ains+ury,s Ha-elgrove

Understand needs of different shopper segments

Understand different shopping missions

Creatively responded with different formats

Develop specific Shopper Touch points:

/ Store Look & Feel

/ roduct & Category

/ Service & eople

/ Communications

%ains+ury,s0


4/81

ore and more retailers have segmented

their shopper +ase

!al"#art Safeway Sam$s C%S &est &uy

!rand 2spirationals &alue %ee3ing (ffice 2dministrator 4aroline 5ill

*rice &alue %hoppers &ariety %ee3ing !usiness "eseller Young, single work ing woman Soccer Mom

6rendy 7uality %ee3ers !rand %ee3ing Institutional !uyer &anessa !arry

*rice %ensitive 2ffluents %implicity %ee3ing #oodservice 'ntrepreneur Married with Children Affuent Professional

(ne %top %hoppers iscovery %ee3ing 6raditional 4lu+ %hopper %ophie "ay

4onscientious (+8ectors 7uality %ee3ing emanding9':periential %hopper Older Shopper/Empty ester !amily Man

%ocial %hoppers 1om9#amily 4'( !u--

2ctive !oomer Younger Male

!!;!

Small "usiness

'etailer Developed Shopper Segmentation Classifications

anufacturers are ased to align their +rands

with customer segmentations


5/81

#(ST(UT

(F L)F*

T'*+DU'SU*'

L)%*F'**L,

L)%**FF*CT-

)%*L,

FULL (F'*S(+S)-

)L)T,

Store *.plorer %hop for

H!4 productsas part of

daily activitiesto search for

something +etter

TrendyShopper

%earch for newtrends 9

innovationswhen shop for H!4 products

ConvenientShopper

%hop < !uy H!4products

whenever itis convenience

*fficientShopper

#ind most effectiveway to shop for H!4 products

/mateur Shopper

=ant shoppingto +e hassle free

(get all that isneeded with the+est e:perience)

S0( F(' FU+High level of involvement

with shopping for H!4 products

'/CT)C/L S0()+1'n8oy shopping for H!4 products>

+ut must also +e practical

(convenient and efficient)

0/SSL* F'**

S0()+1=ant shopping

to +e hassle free

=atsons shopper segments and attitudes towards shopping

for personal care products


6/81

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8/81


9/81

3)DF'*S0> A'= C"


10/81

L*T5S D)S0> A'= 5'"%'C


11/81

L/ F'(#/1*')*4 @AA


12/81 #/6 '*++*'4 %CA'C


13/81

eter is a young4 thrusting marketing e.ecutive7

0e is single and lists skiing4 theatre and

socialising as his main interests7

0e has a high disposa8le income and 8elieves

life is to 8e en9oyed for the moment7


14/81

=hich car will *eter +uy?

Car /

♦ 7; litre4 in9ection engine

♦ /ir conditioning

♦ /S 8rakes♦ iod dock

♦ #etallic paint and alloy

wheels

Car

♦ 7; litre engine

♦ 'adio


15/81

=hich car will *eter +uy?

+issan

♦ 7; litre4 in9ection engine

♦ /ir conditioning

♦ /S 8rakes♦ iod dock

♦ #etallic paint and alloy

wheels

#!

♦ 7; litre engine

♦ 'adio


16/81

=hat is a !rand?

“A product is something thatis made in a factory; a brandis something that is bought

by a customer.

A product can be copied by a

competitor;a brand is unique.

A product can be quicklyupdated; a successful brand

is timeless”

Stephen King, W


17/81

=hat is a !rand?

name and9or sym+ols associated with a

nown and trusted set of +enefits andvalues> which appeal to the mind +ut also

to the heart


18/81

=hat is !rand *ositioning?

How the +rand is perceived +y the targetaudience relative to its competitors


19/81

=hat is the *ositioning of these !rands?


20/81

=hat is the *ositioning of these !rands?

ynamic

riving%afety pulence4hic #un


21/81

%tore 6hum+ *rint

7 #arket Dynamics 6he alternative choices> seen from the

shopper,s perspective> in meeting a

particular shopping need

lifestyle < demographics

=7 3ey understanding

6he core shopper insight upon which the

retail +rand is anchored

>7 Solutions

#unctional and emotional +enefits that

appeal to the shopper

?7 *vidence

6he proof to su+stantiate the claimed

solutions

@7 %alues and ersonality=hat the retailer stands for E and its

personality

A7 Differentiator

6he ey reason the target shopper

will choose that retailer

;7 Store in a phrase

singular thought that captures

what the retailer stands for


22/81

=hy do "etailers Aeed to 4learly *osition

6hemselves?

F 'etail landscape 8ecoming increasingly competitive

F Shoppers need to 8e attracted 8ased on a clear4

differentiated and relevant proposition

F 'etailers are 8rands

F 'etailers need a roposition to guide decisions on: G roduct

G ack

G lace

G rice

G romotion


23/81

STP Plus

http://images.google.co.uk/imgres?imgurl=https://portfolio.du.edu/portfolio/getportfoliofile%3Fuid%3D107725&imgrefurl=https://portfolio.du.edu/pc/port.detail%3Fid%3D107725&usg=__XZlttp2he4ESGcESe3FqUAKrkmY=&h=564&w=564&sz=109&hl=en&start=2&tbnid=DV7coe8lDUQynM:&tbnh=134&tbnw=134&prev=/images%3Fq%3Dbmw%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DG


24/81

!ut retail +rands are more comple: than #4B

+rands

0ow does this thinking0ow does this thinkingimpact the Store Thum8impact the Store Thum8

rintrintpositioning toolBpositioning toolB

TouchpointsComple. Shopper

ourneys

#ission Specific

Formats

(verarching

roposition

Unites every

aspect of a

comple. 8rand e.perience to

deliver uniue

value in target

shoppers lives

Understanding

range & depth of

target shoppermissions &

providing relevant

store format

solutions

#anage every

aspect of the

shopping trip fromthe shopper5s

perspective to

deliver total 8rand

proposition

Tangi8le

e.pressions of the8rand to connect

with the shopper

& deliver via full

=@E e.perience

http://images.google.co.uk/imgres?imgurl=https://portfolio.du.edu/portfolio/getportfoliofile%3Fuid%3D107725&imgrefurl=https://portfolio.du.edu/pc/port.detail%3Fid%3D107725&usg=__XZlttp2he4ESGcESe3FqUAKrkmY=&h=564&w=564&sz=109&hl=en&start=2&tbnid=DV7coe8lDUQynM:&tbnh=134&tbnw=134&prev=/images%3Fq%3Dbmw%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=https://portfolio.du.edu/portfolio/getportfoliofile%3Fuid%3D107725&imgrefurl=https://portfolio.du.edu/pc/port.detail%3Fid%3D107725&usg=__XZlttp2he4ESGcESe3FqUAKrkmY=&h=564&w=564&sz=109&hl=en&start=2&tbnid=DV7coe8lDUQynM:&tbnh=134&tbnw=134&prev=/images%3Fq%3Dbmw%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=https://portfolio.du.edu/portfolio/getportfoliofile%3Fuid%3D107725&imgrefurl=https://portfolio.du.edu/pc/port.detail%3Fid%3D107725&usg=__XZlttp2he4ESGcESe3FqUAKrkmY=&h=564&w=564&sz=109&hl=en&start=2&tbnid=DV7coe8lDUQynM:&tbnh=134&tbnw=134&prev=/images%3Fq%3Dbmw%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=https://portfolio.du.edu/portfolio/getportfoliofile%3Fuid%3D107725&imgrefurl=https://portfolio.du.edu/pc/port.detail%3Fid%3D107725&usg=__XZlttp2he4ESGcESe3FqUAKrkmY=&h=564&w=564&sz=109&hl=en&start=2&tbnid=DV7coe8lDUQynM:&tbnh=134&tbnw=134&prev=/images%3Fq%3Dbmw%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=https://portfolio.du.edu/portfolio/getportfoliofile%3Fuid%3D107725&imgrefurl=https://portfolio.du.edu/pc/port.detail%3Fid%3D107725&usg=__XZlttp2he4ESGcESe3FqUAKrkmY=&h=564&w=564&sz=109&hl=en&start=2&tbnid=DV7coe8lDUQynM:&tbnh=134&tbnw=134&prev=/images%3Fq%3Dbmw%2Blogo%26gbv%3D2%26hl%3Den%26sa%3DG


25/81

Store #hum$ Print Plus %S#P Plus& is a more

powerful diagnostic tool

3ey )mprovements:

"ecognises importance of maret dynamics and tradingenvironment in diagnosing retailer,s +rand positioning

Incorporates shopping missions and their implications through

mission fingerprints

Increased level of understanding of multiple retailformats9channels +y mission

Breater focus on the shopper,s 8ourney through the retail +rand

Identifies specific shopper touchpoints in and out of store

STP Plus 8uilds on the elements of the ST to provide an even more usefultool for diagnosing the 8lueprint & future vision of a retailer5s 8rand


26/81

S#P Plus now includes overall positioning and

the way retailers fle: their +rand

F 6he original Thumbprint still

captures the overarching

proposition of this retailer

F 6he new Fingerprints

capture the comple:ity of

different shopping

missions and how these are

addressed through formats

< shopper touchpoints

1. aret ynamics

2. 6arget %hopper

3. %hopper Understanding

;. %olutions

J. 'vidence

K.

&alues<

*ersonality

.

ifferentiator

L. %torein a

*hrase

G ST lus


27/81

#arket Dynamics

Core rand /ttri8utes

1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions

@7 %alues & ersonality

?7 *vidence

;7 'etailer rand in a hrase

A7 Differentiator

7 #arket Dynamics


28/81

#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


29/81

#arket Dynamics and )mplications: 1L(/L

MarketTrends

BusinessPerformance

GrowthStrategies

CompetitiveThreats

Trading Style Corporate& Social

esponsi!ility

Top " #mplications for this etailer

1 2 3 !

':amples of aret ynamics and Implications

for 6esco

F #ood price inflation isliely to see maretvalue continue toincrease ahead ofvolume growth

F 6esco is M1 in valuemaret share in Uand 6hailand> M2 inIreland and M3 %.orea

F In most other marets6esco is a smaller> +utgrowing player

F #ull year sales to #e+NL were up O11.1P toQJ1.L+n withinternational sales up+y O2J.3P to Q13.L+nand U OK.PQ3.R+n

F perating profitsincreasing +y J.;P toQ2.R+n

F 6esco continues todrive growth +ased ona strong U core (NPof sales)> yet furtherdevelopment of sia <U% liely

F !road +ased maretingstrategy withsignificant focus onloyalty card

F eveloping a strongprivate la+el and+randed non$food+usiness is a eydriver for 6escoSsgrowth initially in theU> +ut internationallylonger term

F 'ngages in predatorypricing tactics $ tocompete withdiscounters> 6escoaims to match them on1>1NN lines and to+ecome a wide rangediscounter across allformats

F In U> an enlargedorrisons and aresurgent %ains+urySscould attac 6escoSscore family sector

F However> 6escoSs+iggest threat isdiscounters>particularly in =estand 4entral 'urope

F 'ntry into the U% hascome at a difficult timewith consumersreigning in e:penditure

F In sia> 6esco is a lateentrant into theconvenience storemaret> so maretleaders such as $'leven may limitgrowth

F n ageing populationin a num+er of itsmarets> will limithypermaretopportunities

F Highly competitivepricing strategy aimedat attracting the mass>family maret.

F *lays from a positionof strength in manymarets in which itoperates> where itholds one of the top 3positions.

F Aot afraid to tae riss>undertaingacTuisitions tomaintain growth ande:panding into newproducts> marets andchannels gaining firstmover advantage

F 6o assess supplierperformance> 6escouses a modifiedversion of the '4"%corecard covering0technical> commercial>innovation andinvestment capa+ilities

F 6esco is adopting avariety of measures toreduce itsenvironmental impactranging from moreenvironmentallyfriendly energyconsumption in the Uand 6hailand to waste

management andrecycling in Ireland

F eveloping an instituteto measure car+onfootprint of all products

F Incentivises energyefficient productsthrough its Breen4lu+card scheme

F "educing the car+onfootprint of its e:istingstores and distri+utioncentres around theworld +y JNP +y 2N2N

1 2 3 !F ':pansion in sia and

U% will +e tougherthan e:pected due toglo+al growth slow$down

F 6esco must e:pect to+ecome increasinglyengaged in price warsto maintain its maretposition.

F =ithout economies ofscale in newermarets> 6esco mightstruggle to maintainmargins if forced todiscount

F %hoppers willcontinue to demand6esco stays ahead ofthe pac on Breenissues G another costduring tough times

F pportunities formaret share growthin core U maret will+e limited asshoppers reign in theirspend

#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


30/81

#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


31/81

#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


32/81

#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


33/81

#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


34/81

=hat 6ouchpoint solutions does retailer use for

each mission?#ission Fingerprints#arket Dynamics


1. aret ynamics

2. 6arget %hopper

3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


35/81

6he physical evidence of the retailer,s +rand

positioning in$store and out$of$store

'lements of the shopping e:perience that

shoppers can touch and interact with

How the retailer engages shoppers and maes

their offer stand out from the crowd

s suppliers> those elements with which we

can align < wor with the retailer

=hat is a %hopper 6ouchpoint?


36/81

@argest organic food retailer in world> founded 1RLN in ustin>

6e:as 1RJ stores in U% 0 first store U opened 5une N> ensington

(acTuisition of #resh < =ild)

*ositioning =hole #oods> =hole *eople> =hole *lanet

Impressive store design < innovative merchandising G

why can,t supermarets +e as inviting

as anywhere else to shop?

=here possi+le> organic < local sourcing G RJP from U

/ new entrant to the U3

who is challenging esta8lished players

6ouchpoints ':ample


37/81

randing is distinctive 8ut su8tle I

respects character of 8uilding

0andwritten signs on windows I

this is what we stand for

)mages convey JauthenticK message 8ut still allows

you to see inside & make your own 9udgement

6ouchpoints0

%tore @oo < #eel


38/81

*nglish /sparagus in season

*ggs sold loose

including ostrichMN

1rape mountain

Cut fruit I convenient snacking*.tensive ritish cheese selection

Seriously

fresh!

6ouchpoints0

*roduct < 4ategory


39/81

Take (ut range of repared Foods (rganic u8 on st Floor

;E varieties of rice4 grain4 oats #ake your own

eanut utter #achines

ffsets 1NNP of electricity

consumption

Ao 4ar *ar policy G use

pu+lic transport

!ags are 1NNP recycled G Jp

discount if +ring your own

!o:es are composta+le

#ull recycling points in store

rganic cotton uniforms for

staff

'co %tore section 0 organic>

fair trade t shirts> +a+y clothes

High tracea+ility G we,vedone the research for you

Ao. J +est company to wor

for in U% (#ortune raning)

6ouchpoints0

%ervice < *eople


40/81

6ypically taes one year to open a store

#ocus on right locations 0 high footfall> relevant to

local consumer +ase

im to have 2 to 3 in the U

High profile 1st store 0 former !arers of ensingtonept store G @ondon landmar

6easer campaign via shop windows during refit

Use of local tu+e station advertising to +uild hype

%trong *" campaign> telling consistent story $ we+site

"esult 0 store opening was a ma8or

scrumV

evelopers typically love a store

opening G +uilds footfall for entire area

6ouchpoints0

%hopper 4ommunications


41/81

Shopper Touchpoints

Store

Look

& Feel

roduct

&

Category

Service

&

eople

Communi-

cations

#arket Dynamics


1. aret ynamics

2. 6arget %hopper 3. %hopper

Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


42/81

%hopper 6ouchpoints


43/81

4ore !rand ttri+utes +ind the retailer offer

together #arket Dynamics


1. aret ynamics


Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics

woringpeople

top$up shop

edium tolarge families

Homeapplianceshopping

I can +uyfamiliar

technology ascheaply and

easily asgroceries

supermarkets


44/81

Shopper Touchpoints

Store

Look

& Feel

roduct

&

Category

Service&

eople

Communi-

cations

#arket Dynamics


1. aret ynamics


Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. "etailer!randin a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


45/81

S#P Plus

&alues < *ersonality

What is it!What the retailer stands for…and its personality

"oodiness

#$pertise #$perience %

e$periment &nspiration

Seasoned tra'eler

(ip

Waitrose

)ood honest 'alue

Substance o'er form

*o frills or gimmicks

“&t does +hat is says onthe tin”

our ally in managinga tight budget

A-&

/sepro0ecti'e

techniques

S#P Pl


46/81

S#P Plus

ifferentiator

1nly Waitrosepro'ides aninspirational foodshoppinge$perience

(ip

Waitrose

-ink to Key/nderstanding

“1nly 2”

1nly A-& gi'es suchgreat deals on foodand household goods

A-&

What is it!The key reason the target shopper will choose that

retailer

S#P Pl


47/81

S#P Plus

"etailer !rand in a *hrase

(he +orld of food2on your doorstep

(ip

Waitrose

What3s onthe (4shirt!

Smart Shopper5hoice

A-&

What is it!A singular thought that captures what the retailer

stands for

S#P Pl


48/81

S#P Plus

#inal checlist

Does it hang togetherB

)s it clear & simpleB

)s it motivating & inspiringB

)s it credi8le & relevant to shoppersB

)s it differentiated from other retail 8randsB


49/81

eveloping S#P Plus G group e:ercise

evelop a STP Plus for your customer9channel

aret ynamics have +een prepared for you

&isit the store and mae o+servations < notes to help you

+uild0

$ %hopper ission #ingerprints$ 6ouchpoint %olutions

@ater you will complete the %6* *lus wall poster < share your

findings


50/81

#ission Fingerprints#arket Dynamics


1. aret ynamics


Understanding

;. %olutions

J. 'vidence

K.&alues

<

*ersonality

.

ifferentiator

L. %torein a

*hrase

>7 Solutions


?7 *vidence


A7 Differentiator

7 #arket Dynamics


51/81




3. evelop a proposition which meets that need1) !rand Identity

2) "etail #ormat

3) In$%tore


6arget 6he 4ool 4ollege @ifestyle


52/81

6arget 4orp. is going after a specific lifestage demographic G college students G

Counger ids aspire to +e lie their older si+lings. Braduates reflect

fondly on their college e:perience. 6herefore> this narrow target

audience is larger than many people thin (age 1J$2J.)

6arget G 6he 4ool 4ollege @ifestyle

(where we all want to +eV)


53/81


54/81



55/81



uildyour

Dorm

'oom

Scholarship rogram

Latest Trends and

Campus *ssentials

'ed0ot Shop: T-shirt

design contest for

teens7 Displayed at

#useum4 profits fund

design education7

)n-Store

Displays



56/81




57/81

T U3 # i d S h


58/81

Tesco U3 I #assive rand Stretch

!hat Tesco have done on O0ealthy Living5


59/81

chieve more

#eel good daily

Bive children a

good start

!e free from health

pro+lems

!e healthy for

longer

@oo +etter

Huge growth of Healthy Living Club

Healthy living range success

5 nutrient GDA food labelling

Weight watcher points Stocking sports

euip!ent in "#tras $Clothes endorsed by %ao!i Ca!pbell

&wn label beauty range

'esco (ag Lifestyle advice

)ace for life * cancer research +,

-irst to open up !ore space for !ini drinks

G. diet

&ne stop shop in "#tra/s 0 dot1co!

Sport for schools and clubs

Co!puters for schoolsSchool clothing

,ids2one !ailer

,ids -oods range

3arking for !u!s and kids

4aby and toddler club

-inancial savings for kids

667 Whi88kid8 charity

3urple 9free fro! range:

%uts 0 Allergy labelling

Separate section organic

5 nutrient labelling4ooklets * healthy living

5 nutrient GDA front of pack labelling

Healthy living leaflets instore

;< phar!acies stores

G" 3ro!o policy to include = better > u

'esco ?Wholefoods: launch

G. labelling 0 G. diet

'esco e*diets on dot1co!

Sports euip!ent in "#tra/s

i3ods@ CD/s 0 DD/s

http://www.target.com/gp/browse.html/ref=nav1_logo/601-5051006-4938543?%5Fencoding=UTF8&node=1038576


60/81

0elp us #anage our !eight


61/81

*m8race +atural )ntegrity


62/81

Tapping into over ?Es


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#ormats e:ist +ecause they capture and create trips

H d l di t il d l th i t t ?


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3. evelop a proposition which meets that need

1) !rand Identity 2) "etail #ormat

3) In$%tore


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)n-store )mplications


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4ategory #i:ture @ayout ':ercise

F ,our group represents either the Supplier #ciscuits GClassicHCrum8sH(HSlimN

(r

F The Customer

F /rrange all the 8iscuit 8rands on the category fi.ture layout inwhat your company thinks is the 8est way

F *.plain your reasoning on a flipchart

F Timing >? minutes


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4 t #i t @ t ' i 2


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4ategory #i:ture @ayout ':ercise 2

F #ciscuits groups to JsellK their proposed categorylayout to the customer

F +ote areas of agreement and disagreement &

learnings

F Timing:

G reparation E minutes

G #eeting


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F Sales and profit G !ased on category drivers of value G JNP of retailer,s cost is store space> so have to mae wor most effectively

F Shopper-friendly G !ased on shopper decision trees G

Use signpost +rands

F 'etail strategy G ! ne:t to +rands G ligned with %6* G 'mphasis depending on retailer strategic positioning

F Logistics G !alance +ac of store space v delivery freTuency v % G %helf ready pacaging

ey 4ustomer 4onsiderations

Category Layout


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Smaller productsizes on the top shelf

Biscuit Layout Length: c.8.5metres

Healthy Biscuits placedas the lead segment

Space invested ingrowth of HealthyBiscuits segment

Strong Brandedpresence in Healthy

Biscuits segment

Retail Brand is 5!

"remium segment

Biscuits for #hildren

placed after $verydayBiscuits segment

Strong Branded

presence in $verydayBiscuits segment

Higher price for

"remium and %reatssegments

#hocolate Bars afterBiscuits for #hildren

Savoury Biscuits#ategory after#hocolate Bars

#onfectionery isopposite Sweet

Biscuits #ategory

Retailer &alue Brandon the 'ase shelf

%he strategy for the Sweet Biscuit category in this retailer is 'ased on 'rands

and providing something for everyone( investing in Healthy and #hildren.

g y y

iscuitsforChildren

*verydayiscuits

0ealthyiscuits

'etailer %alue rand

*veryda

y

Treats

remium

iscuits

*

veryday

Treats

*veryda

yH

Special

Treats

%pecial

6reats


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Category Layout Value Retailer

Biscuit Layout Length: c.8.5metres

)*+! share of linesfor Retailer Brand

products

Biscuits in ,roceryopposite #hocolateBars and "reserves

Hypermar-et retailerwith $L" plus

promotions "remium and Healthyeither side of $veryday

volume segments

Brands are 'loc-edin 'iscuit segments

/ocus on /amily and&alue products

Retailer Brand productsne0t to 1ar-et Leaders

*verydayTreats

iscuitsfor

Children

0ealthyis

cuits

*verydayiscuits

remium

iscuits

Category Layout Premium Retailer


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Category Layout Premium Retailer

Biscuit Layout Length: c.2.+metres

High category space forsize of store due to

older consumer pro3le

Biscuits in ,roceryopposite #onfectionery

Supermar-et retailerfocused on 4uality

food oer

#entre of layout forhigher price segments

Large organic range(/air %rade productsand e0clusive lines

/ocus on 4uality andwidth of assortment

Retailer Brand productson -ey selling shelves

#opyright 6 SMart In Corporates Ltd

iscuitsfor Children

ChocolatearsN

0ealthyiscuits

remium

SpecialTreats

*veryd

ayT

reats

Chocolateiscuits&

Cookies

Continenta

liscuits

*verydayiscuits

*verydayTreats

4 t " l


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4ategory "oles

F DestinationF CoreHreferred

F Convenience

F Seasonal

4ategory %trategies


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4ategory %trategies

(raffic6uilding

&mage#nhancing

#$citement5reating

5ash)enerating

Sharerotecting

rofit)enerating

(ransaction6uilding

Category Strategies


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R

Category Strategies

Traffic

uilding

This strategy aims at getting the shopper into the store and purchase

from the category and from the store in general

Transaction

uildingThis strategy aims at increasing the shopper$s average purchase

of the category

rofit

1enerating

This strategy aims at increasing the sales of high margin products P average category marginN

Turf

rotecting

This strategy aims at protecting the o8tained market share and turnover of su8-

categories against competition7

The retailer wishes to 8e un8eata8le in that segment of the category7

Cash

1eneratingThis strategy aims at increasing cash flow 8y high rotation of a8solute value products7

This strategy can 8e realised through long payment term agreements with the supplier7

*.citement

CreatingThis strategy aims at meeting the shopper$ needs 8y offering trendy and

innovative products

)mage*nhancing This strategy aims at creating an image towards the target shopper in one of thefollowing domains: pricing4 service4 uality or assortment

to the store

in the store

value

volume

3TC PIE


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Implications for Unilever


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0ow Can !e 0elp the Customer 1row or Defend Their usinessB F How does your customer e:pect to grow their overall +usiness? G How do they e:pect to grow the department9category? G Is your customer interested in identifying new ways to grow their overall +usiness or

specific categories?

F Is your customer interested in growing sales within0

G a specific shopper segment such as families with young children? G a type of shopping mission such as a stoc$up or trips forimmediate needs?

G a specific department or category? G a store format?

F Is your customer interested in having Unilever generate insight for colla+oratively

creating growth solutions?F Is your customer interested in evaluating the effectiveness of a new growth idea

that affects Unilever?



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0ow Can !e 0elp the Customer 1row or Defend TheirusinessB F Is your customer interested in new strategies for increasing

differentiation and9or shopper loyalty?F Is your customer looing for more efficient ways of using their retail

space? 6heir aisle space? 6heir shelf space?

F Is your customer interested in improving the in$store e:perience toincrease differentiation and9or shopper loyalty?

F Is your customer interested in increasing the shopa+ility of the storeor a particular department or shelf?

F Is your customer interested in understanding the role of out$of$stocson category volume? n shopper loyalty?

F =ould your customer lie to understand how shoppers shop the aisleor shelf in order to set category ad8acencies or planograms?



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/ll uestions are focused on how can we help thecustomer to grow

F How we identify the apparent issues9opportunities forgrowth0

G 6hey come from the customer,s o+8ectives orfrom getting the customer to adopt ouro+8ectives (+ased on +usiness analysis)

G Ideally they represent a mutual o+8ective

G 6hey should +e stated in terms of +oth thecustomer < the shopper


4ustomer %hopper < !rand


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4ustomer> %hopper < !rand

Customer

(89ectives

Shopper

)nsight

rand

(89ectives


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/ctual Customer5s erspective

customer & channel perspective module 6.2.09

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