Retail & Shopper
2
2TNS© 2010
Over 1400
shopper projects completed in 2009, in over 40
countries, with the world’s leading consumer companies and the major retailers
TNS is the world’s leading shopper research agency
Retail &Shopper
Retail & Shopper
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3TNS© 2010
The TNS proposition is further strengthened by partnerships with
sister WPP companies, including virtual reality experts Red Dot Square
Solutions and retail intelligence and consultancy specialists Kantar Retail.
Specialist acquisitions in US, UK and China and over 30 years of
shopper expertise and knowledge are backed by an unrivalled range of leading techniques and an integrated approach to providing solutions
Our shopper practice is led by specialists
Retail & Shopper
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5TNS© 2010
More than ever the store is an essential location to influence brand purchase decisions
Media fragmentation has made it harder to reach brand consumers on mass
Over 40% of decisions are made at the point of purchase
Investment in new product development, new technology, brand building activity is all wasted if a shopper doesn’t select your product in-store
Retail & Shopper
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6TNS© 2010
Shopper fragmentation
Increasing retailer diversity
Promotions don’t cause long-term effects
The retail environment is becoming more challenging
Retailers’
demanding category growth
Retail & Shopper
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7TNS© 2010
Today’s new marketing challenge
BUY
SELL
WANT Consumer
Shopper
Retailer3
1
2
Retail & Shopper
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8TNS© 2010
We observe research shifting from consumer to shopper
Stra
tegi
c ad
vant
age
Tact
ical
adva
ntag
e
incubating scaling culturally embedding
Small scale impact, as ad hoc programs drive positive return
Growth in impact as scale programs; also growth in costs
Significant margin improvements and new growth due to integration / optimization
Tenure of shopper marketing effort
Source: 2008 GMA/Deloitte Shopper Marketing Study
62% of FMCG businesses have a budget for shopper research
78% of FMCG clients will increase their shopper budget over the next 3 years
53% of retailers say that shopper is a strategic growth enabler
Source: The Hub 2010, Online survey in developed markets of business stakeholders
Retail & Shopper
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9TNS© 2010
Brand Supplier
Category Advisor
Category Captain
Strategic Partner
Brand Tactics
Category Tactics
Category Strategy
Store Layout
Increased insight requirement
TNS work with many client organisations who are at different stages of shopper understanding & sophistication
Retail & Shopper
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11TNS© 2010
Category experienceMerchandising
AssortmentAt fixture decisions
Need
Purchase
Store layoutShopping route
Flow and adjacenciesIn-store comms
Shopper segmentationChannel choice
Retailer choiceShopping missions
Category definition
In-store marketingPackaging
Promotions
TNS helps clients influence shopper behaviour and decisions all along the “Path to Purchase”
Shop the Store
Shop the Category
Select the Product
Pre-store Context
TNS has further developed the concept of the Path to Purchase -
the journey every shopper takes -
beginning with the idea of going shopping and ending with a purchase.
Our approach is based upon 3 fundamental beliefs.
1. Improving conversion on the Path to Purchase is key to success
2. Shoppers and consumers have different behaviours, needs and motivations
3. Observational techniques must be used to understand shopping behaviour properly
Retail & Shopper
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12TNS© 2010
Test new in-store concepts to find the best approaches for improving shopper conversion
Test new in-store concepts to find the best approaches for improving shopper conversion
Understand the shopper at each step on the Path to Purchase and assess the effectiveness of in-
store levers in helping to convert shoppers to purchasers
Understand the shopper at each step on the Path to Purchase and assess the effectiveness of in-
store levers in helping to convert shoppers to purchasers
3. Test
Monitor the shopper response to changes in the retail environment
Monitor the shopper response to changes in the retail environment
4. Monitor
The Path to Purchase Toolkit
Integration of insights to create in-store solutions that drive brand and category performance
Integration of insights to create in-store solutions that drive brand and category performance
1. Diagnose
2. Create
Retail & Shopper
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13TNS© 2010
Understand the shopper at each step on the Path to Purchase and assess the effectiveness of in-store levers in helping to convert shoppers to purchasers
Pre Store ContextCategory Definition & SegmentationCategory Usage OccasionsShopping MissionsShopper SegmentationReasons for Store Choice
Shopping the Store
Shopping the Category
Select the Product
Shopper Behaviour, Motivations & Decisions
Effectiveness of
In-store Levers
Store Layout MerchandisingAssortmentPOS & In-store MarketingPackagingPromotions & Price
Shopper Behaviour, Motivations & Decisions
Effectiveness of
In-store Levers
1. Diagnose
Retail & Shopper
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14TNS© 2010
Concept Tests
On-Line Shelf Test
Virtual Reality
Controlled Store Tests
Concept Tests
On-Line Shelf Test
Virtual Reality
Controlled Store Tests
Pre-Store ContextQualitative GroupsOn-Line Interviews
Shopping the StorePathTrackerExit Interviews
Shopping the CategoryShopnographyFilming or ObservationsIn-Store Interviews
Select a ProductEye-TrackingQualitative Interviews
Pre-Store ContextQualitative GroupsOn-Line Interviews
Shopping the StorePathTrackerExit Interviews
Shopping the CategoryShopnographyFilming or ObservationsIn-Store Interviews
Select a ProductEye-TrackingQualitative Interviews
3. Test
RFID PathTracker
Worldpanel
Mystery Shopping
Observations
In-Store Interviews
RFID PathTracker
Worldpanel
Mystery Shopping
Observations
In-Store Interviews
4. Monitor
1. Diagnose
The Path to Purchase Toolkit Techniques
Workshops
Super Shoppers
Workshops
Super Shoppers
2. Create
Retail & Shopper
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15TNS© 2010
Pre-Store ContextQualitative GroupsOnline Interviews
Shopping the StorePathTrackerExit Interviews
Shopping the CategoryShopnographyFilming or ObservationsIn-Store Interviews
Select a ProductEye-TrackingQualitative Interviews
Pre-Store ContextQualitative GroupsOnline Interviews
Shopping the StorePathTrackerExit Interviews
Shopping the CategoryShopnographyFilming or ObservationsIn-Store Interviews
Select a ProductEye-TrackingQualitative Interviews
1. Diagnose
The Path to Purchase Toolkit Techniquesonline
qualitative
Path Tracker
Observation
Eye tracking
Retail & Shopper
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16TNS© 2010
The Path to Purchase Toolkit Techniques
Workshops
Super Shoppers
Workshops
Super Shoppers
2. Create
Retail & Shopper
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17TNS© 2010
Concept Tests
Online Shelf Test
Virtual Reality
Controlled Store Tests
Concept Tests
Online Shelf Test
Virtual Reality
Controlled Store Tests
3. Test
The Path to Purchase Toolkit Techniques
Retail & Shopper
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18TNS© 2010
RFID PathTracker
Worldpanel
Mystery Shopping
Observations
In-Store Interviews
RFID PathTracker
Worldpanel
Mystery Shopping
Observations
In-Store Interviews
4. Monitor
The Path to Purchase Toolkit Techniques
Retail & Shopper
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The Path to Purchase links to commercial needs …
Select the Product
Shop the Category
Pre-Store Context
Shop the Store
Retail & Shopper
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20TNS© 2010
Commercial Challenge Research Questions to Be Answered Path to Purchase Toolkit
How do we create strategies to meet shopper expectations for each channel and mission?
How do shoppers define the category and what is the competitor set?How should products be grouped and segmented to appeal to shoppers?How do shoppers articulate features and benefits of different products within the competitor set and thus choose between them?What consumer needs are being met by different products? What are key factors driving store and channel choice?What are the main shopping missions for the category? How can category shoppers be targeted?
How do we optimise store design to improve category exposure?
What are the prevailing shopping pathways around the store?How many shoppers Visit, Stop and Purchase within each aisle?Which shoppers are visiting which categories How does conversion and shopper path vary by mission or shopper type?Where are the hot and cold zones in terms of traffic volume?Across the shopper base, and by mission or shopper type how do these vary?How hot are the promotional gondola ends and promotional aisles?Are shoppers more likely to avoid the aisle if there is a promotional gondola on the end?
How do we convert more shoppers to purchasers?
•
How easy is it for shoppers to find the category in store?What is the level of conversion to purchase for the category? What are the barriers to purchase for the category?How do shoppers interact with the fixture and products? What is the level of pre-planning that exists in the category?What choices and decisions are made at the shelf?What promotions influence purchasing behaviour and decisions?Why are shoppers shopping the category?What are the perceptions of the category layout?What are the purchase triggers and drivers?
How do we increase our share of shopper selections?
Where on the fixture do people look? Where are the visual hot spots?What are the visual cues shoppers are using to navigate the category? Where should products be positioned to maximise visibility?What packaging has most stand out on shelf?What POS or in-store communication is actually seen?What promotional activity is actually seen and what are shoppers perceptions of recalled promotions?How effective is each element of the existing in-store marketing?What messaging is prompting an action in-store?
… and research questions
Select the Product
Shop the Category
Pre-Store Context
Shop the Store