The Decision-Making Process for Fast Moving Consumer Goods
Date: June, 2010
Daedalus Millward Brown Public Survey
2Objectives
Identifying the buying habits for the FMCG categories
Identifying the factors with the highest importance in choosing a brand
Determining the evolution of choosing a brand for different product categories
Identifying the preferred types of promotions
3Conclusions »
In 2010, similarly with the previous year, the decision regarding the brands purchased for household consumption is taken together with other family members.
Even though the decision regarding the brand is mainly taken at home for most product categories, for coffee and for carbonated soft drinks the decision in front of the shelf records significant increases in 2010.
In turn, alcoholic drinks, beer and spirits register increases in the number of consumers who decide on the brand at home.
The decision regarding the brand
4» Conclusions
The main factors that influence the in-store decision regarding the brand continue to be represented by different types of promotions.
The categories most exposed to change in the buying behavior in 2010 are: spirits, margarine, natural juices and non-carbonated soft drinks (only 45% of the consumers having a similar behavior);
On the other hand, coffee, mineral water and dairy products (yoghurt and milk) have at least 60% consumers with the same consumption habits as in the previous year.
In line with the consumption decrease, a significant modification in behavior as compared to the last year is represented by buying the same brands in smaller quantities.
Decision factors and changes in behavior
5» Conclusions
As compared to 2009, buyers use store’s magazines significantly less often, although the percentage of those who often choose a brand because it is on promotion increased. The reasons for this may be related either to the discrepancies between the content of the magazines and what can be found effectively in the stores, or to the fact that buyers benefit from generous and permanent offers for all product categories;
Compared to the previous year, there is a substantial increase in the number of buyers who often choose a brand that is cheaper over their preferred one;
The most preferred type of promotion is the price reduction for the same quantity offered, which increased in attractiveness from last year;
On the other hand, prize contests lost attractiveness, recording a significantly lower score than in 2009.
Types of promotions taken into consideration
6Methodology
Research methodSurvey
Target populationPersons aged 18-50 years old, from urban areas, with a high level of education (university or post-graduate), who consider their current economical situation is not much worse than last year, and in thenext 12 months it won’t be much worse than it is in the present, and who usually go shopping inhypermarkets, supermarkets or cash&carry stores.
Sample size362 respondents
Data collection techniqueOnline Interviews
FieldworkMay 2010
7
AB 1. Who is deciding more often over the purchased brands in your household?
The decision considering the purchased brands
2009N=403
2010N=362
2.8
70.573.8
26.726.2
Just you
You and another person
Another person
% %
8Choosing a brand: at home or in front of the shelf?»
AB 6. Please think about how you usually proceed when choosing a brand. For which of the following categories do you choose the brand in frontof the shelf and for which of them do you know from home what brand you want to purchase? For… do you usually choose the brand in front ofthe shelf or you already know from home what brand you want? What about for…
Carbonated soft drinks
37.027.7
50.7 50.844.7
31.543.2
37.3 35.746.1 48.0
41.2 43.1
55.3 56.862.7 64.3
53.9 52.058.8 56.9
46.9
49.249.3
68.5
53.1
72.363.0
I know from home what
brand I want to
purchase
I choose the brand in
front of the shelf
Non-carbonated soft drinks
Natural juices/ nectar Beer Yoghurt Sour cream Milk
20092010 20092010 20092010 20092010 20092010 20092010 20092010
N=247 N=254 N=268 N=263 N=310 N=354 N=289 N=316 N=355 N=373 N=340 N=358 N=315 N=341
% % % % % % %
Base*
*The percentages were standardized by cutting out the “DK/NA” option
Significant diffrences compared to 2009 (level of confidence of 95 %)
9Choosing a brand: at home or in front of the shelf?»
AB 6. Please think about how you usually proceed when choosing a brand. For which of the following categories do you choose the brand in frontof the shelf and for which of them do you know from home what brand you want to purchase? For… do you usually choose the brand in front ofthe shelf or you already know from home what brand you want? What about for…
Significant diffrences compared to 2009 (level of confidence of 95 %)
57.748.7
62.0 58.851.3
28.518.8
54.459.3
46.2
58.8
30.8 33.0
48.7
81.2
45.640.7
53.8
41.2
69.2 67.0
51.2
42.351.3 48.8
71.5
38.0 41.2I know from home what
brand to buy
I choose the brand
when I am in front of
the shelf
20092010 20092010 20092010 20092010 20092010 20092010 20092010
N=211 N=314 N=319 N=296 N=346 N=141 N=348
% % % % % % %
Base*
LiquorsMargarine Sausages Chocolate Coffee
Non-carbonated/
mineral waterOil
N=233 N=346 N=355 N=307 N=379 N=162 N=374
**The percentages were standardized by cutting out the “DK/NA” option
10
64.1 68.9 70.0 65.259.4
66.560.2
40.6 39.8
65.7
34.830.0 33.534.331.135.9I know from home what
brand to buy
I choose the brand when I
am in front of the shelf
Canned meat
Choosing a brand: at home or in front of the shelf?»
AB 6. Please think about how you usually proceed when choosing a brand. For which of the following categories do you choose the brand in frontof the shelf and for which of them do you know from home what brand you want to purchase? For… do you usually choose the brand in front ofthe shelf or you already know from home what brand you want? What about for…
Canned vegetables
Rice Flour Candies
2010 2010 2010
N=339 N=343 N=157 N=218 N=340 N=332
% % % % %
Base* N=260
%
Biscuits
N=302
SugarPasta
2010 2010 2010 2010 2010
% %
**The percentages were standardized by cutting out the “DK/NA” option
11
58.1
49.7
47.9
47.2
43.0
36.0
35.3
32.9
21.8
13.4
7.2
10.5
41.8
57.0
44.0
48.5
50.0
43.2
34.8
28.8
28.9
22.6
12.0
9.5
10.1
44.1
*People that choose the brand inside the store for at least one of the products
Factors that matter most in choosing a brand– 2010 »
AB 7. Which of the following aspects are very important to you personally when choosing a brand inside the store?
%
2010N=325*
Offering a price reduction for buying more products from the same category
The fact that the brand has a price reduction
The release of new ranges
The brand offers a gift
The existence of a contest/ a promotion offered by the brand
The release of new products
The possibility of tasting the products
On-the-shelf brand visibility
The fact that a brand has the lowest price
Promotional materials (brochures, posters etc.) inside the store
The advice from a brand promoter inside the store
The release of a new package
Something else
2009N=347*
%
12
11.3
14.1
14.5
13.2
15.5
15.7
13.6
12.9
30.7
31.0
32.4
30.9
25.2
27.7
22.4
30.3
33.7
31.8
24.8
60.4
46.1
50.3
56.9
64.67.9
6.9
12.8
10.2
8.8
10.0
2.6
4.3
3.1
1.5
1.3
2.3
0.3
6.2
46.2
53.6
46.9
61.7
55.5
47.8
PD1. Please think about your shopping behavior during this year, in comparison with the same period of the last year. Which is the situation thatbest suits you for the following product categories?
Changes in brand choice – 2010 »
Carbonated soft drinks
Non-carbonated soft drinks
Natural juice/ nectar
Beer
Yoghurt
Sour cream
Milk
Margarine
Sausages
Chocolate
Coffee
N*=362
%
I try to find cheaper brands
I gave up buying this product category
I buy the same brands I got used to, but in smaller quantities
I haven’t changed my buying habits
**The percentages were standardized by cutting out the “I don’t usually buy this product category” option
*Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision=making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora
Significant differences in comparison with 2009 (level of confidence of 95 %)
13» Changes in brand choice – 2010
20.8
15.6
23.1
19.4
26.2
24.9
15.8
16.6
23.1
23.5
24.6
21.2
22.5
20.7
20.7
28.4
27.1
52.3
52.5
52.8
47.8
51.0
12.8
8.0
29.0
5.3
8.2
1.4
0.6
5.7
15.8
0.7
6.9
2.2
1.1
0.9
25.9
31.7 44.5
49.9
60.0
48.7
54.3
55.3Oil
Spirits
Non-carbonated/ mineral water
Pasta
Sugar
Canned meat
Canned vegetables
Rice
Flour
Candies
Biscuits
N*=362
%
I try to find cheaper brands
I gave up buying this product category
I buy the same brands I got used to, but in smaller quantities
I haven’t changed my buying habits
Significant differences in comparison with 2009 (level of confidence of 95 %)
PD1. Please think about your shopping behavior during this year, in comparison with the same period of the last year. Which is the situation thatbest suits you for the following product categories?
**The percentages were standardized by cutting out the “I don’t usually buy this product category” option
*Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora
14
6.2
16.1
16.1
8.9
21.5
18.4
20.5
18.1
33.6
17.1
29.6
20.3
25.8
25.2
20.4
18.0
17.5
20.4
29.4
28.5
16.5
15.6
25.9
17.6
62.5
52.9
50.6
54.9
67.9
48.6
50.0
64.4
12.3
13.8
10.3
12.0
1.1
11.8
7.2
1.4
6.6
2.3
1.5
1.8
6.3
3.8
6.0
10.7
16.8
2.2
47.4
58.2
64.2
50.9
59.4
52.9
Changes in brand choice– 2009
N*=345
%
Carbonated soft drinks
Non-carbonated soft drinks
Natural juices /nectar
Beer
Yoghurt
Sour cream
Milk
Margarine
Sausages
Chocolate
Coffee
Oil
Spirits
Carbonated, non-carbonated or mineral water
I try to find cheaper brands
I gave up buying this product category
I buy the same brands I got used to, but in smaller quantities
I haven’t changed my buying habits
PD1. Please think about your shopping behavior during this year, in comparison with the same period of the last year. Which is the situation thatbest suits you for the following product categories?
**The percentages were standardized by cutting out the “I don’t usually buy this product category” option
*Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora
15Ways of choosing a brand– 2010 »
PD4. When thinking about the way you choose the products for purchase, how often do you ...
44.6
41.7
17.8
17.6
13.8
12.7
9.2
41.9
54.1
78.8
57.8
61.3
74.4
64.8
4.1
3.4
24.6
24.9
12.9
26.0
13.5
Often Sometimes Never
%
N=362
... you choose a brand because you received a free sample inside the store
... inside the store you choose a brand that is different from the one you thought you would buy when you left home
... you choose a cheaper brand than the one you prefer
... you choose to buy a private label (e.g.: Aro, Nr. 1, Winny etc.)
... you choose a newly launched brand
... you choose a brand because it is on promotion
... you find out about the existing promotions from the store’s magazine
Significant differences in comparison with 2009 (level of confidence of 95 %)
16» How to choose a brand– 2009
52.3
24.9
17.2
13.1
8.1
11.0
8.6
36.5
71.9
77.0
55.7
60.6
76.9
62.3
3.2
5.8
31.2
31.3
12.1
29.1
11.2
Often Sometimes Never
%
N*=345
PD4. When thinking about the way you choose the products for purchase, how often do you ...
*Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora
... you choose a brand because you received a free sample inside the store
... inside the store you choose a brand that is different from the one you thought you would buy when you left
home
... you choose a cheaper brand than the one you prefer
... you choose to buy a private label (e.g.: Aro, Nr. 1, Winny etc.)
... you choose a newly launched brand
... you choose a brand because it is on promotion
... you find out about the existing promotions from the store’s magazine
17The most attractive types of promotions
PD5. Which from the following promotions types do you consider to be most attractive:
Poll 7: If the total value of offered prizes within a promotion is the same, which option attracts you?
44.1
45.6
30.8
34.6
23.3
11.1
2009N=345*
2010N=362
% %
47.5
29.5
29.4
15.0
53.6
12.8
Price reduction for the same quantity
Offering an extra unit (i.e.- 2 + 1 free)
Offering an extra quantity for the same price
Offering another type of product as a gift (i.e.-coffee+ mug)
The possibility to enter prize contests (with on the spot prizes or with prizes sent by mail)
Price reduction for buying more units (i.e.- for buying 2 products you have a cost reduction)
*Persons who usually go shopping in stores like hypermarket/ supermarket/ cash&carry, who get involved in the decision-making process regarding the purchased brands and who last time went shopping in one of the following supermarkets: Kaufland, Billa, Carrefour, Metro, Real, Cora
Significant differences in comparison with 2009 (level of confidence of 95 %)
19
39.8
32.8
27.4 40-50 y.o.
30-39 y.o.
18-29 y.o.
Male
43.6 %
Female
56.4 %
Demographic profile»
S 0. Please tell me what is your exact age? S 2. You are Female Male D4. What is the highest level of education you attained?
Gender
N=362
Age
%
20
14.6
16.9
17.0
2.0
20.8
15.8
12.8More than 3600 RON
2250 - 3599 RON
1800 - 2249 RON
1400 - 1799 RON
1000 - 1399 RON
Less than 1000 RON
No income
» Demographic profile
D 9. Personal monthly net income?/ D 10. Monthly net income per family member ? S 4. Which of the following categories best representsyour current occupation status?
Personal monthly net income
Monthly net income per family member
N=362
17.7
13.1
16.8
8.7
2.3
11.6
16.3
13.5
More than 3375 RON
2250 - 3374 RON
1650 - 2249 RON
1400 - 1649 RON
1000 - 1399 RON
800 - 999 RON
350 - 799 RON
Less than 350 RON
% %