re-inventing shopper insight · 2011-08-19 · and shelf space organisation ... fat fmcg / category...

Copyright © IRI, 2006. Confidential and proprietary.

Re-inventing Shopper Insight

Elena Dionysiou – Key Accounts Regional Manager, South Europe

Bucharest 12th OctoberTrade Round Table – Magazine Progressiv

Understanding the role of brands in the changing Retail landscape in Romania


Agenda

The Marketing Revolution


Key findings from shopper insight research in Romania compared to CEE

3Copyright © IRI, 2006. Confidential and proprietary.

Why is it important to studyshopper behavior in the store area?


AvailableConsumer Demand

1945 - 1995 Since 1995

Few Outlets:Supermarkets, Drugstores

Many Outlets:Hyper, Super, Drugstores,Discounters, Convenience, Perfumeries, Dept Stores,

Pharmacies

Learnings from the European FMCG marketing Revolution A lasting

situation

Reasonable Number of Products

Expert Shoppers Selective Demand

Overabundance of Products


Over abundance of FMCG products

400,000 Sku's

20 to 50 Sku's

Number of FMCG Items Available

Number of FMCG Items in an Hyper

Number of FMCG Items Purchased Annually

Number of FMCG Items in a Shopping Basket

20,000 to 50,000 Sku's

300 Sku's


2

Channel /

Store

Shopper

IRI concept: need to understand the consumer’s three roles

CHANNEL/BANNER MARKETING

STOREMARKETING

6- Perceptions and expectations towards store and shelf space organisation

7- Role of the Brands in the Purchasing behaviour process and Purchase Hierarchy Decision

8 - Perception and understanding of Packaging9 – Role of Brands in new Product Launch

PRODUCT MARKETING

4- Shopping mission5- Role of Brands in

Stores/Channel selection (Depending: assortment, services, prices…)

1- Needs/wants states2- Perception, definition and

segmentation of the category3- Role of Brands in planning for

shopping

CONSUMER

End User1

3

Category /

Product

Buyer

Offer Marketing

Demand Marketing


CUSTOM STUDYCUSTOM STUDY

Strategic + tactics

Answers client specific issue

Proprietary for each client

At segment levelAt segment level

At brand levelAt brand levelSpecific questionnaire and guides focussing on Client’s issues

SYNDICATED STUDYSYNDICATED STUDY

Strategic

Answer a general theme

Shared by all clients

At FMCG / category level

Similar questionnaire for all categories on main purchase behaviour characteristics.

How IRI Process for Shopper research works ?


Innovative syndicated studies for over 12 years

FranceSpain

2003

FrancePortugal

20001997

France

1994

France

2005

USA

2004

UKItaly

GreeceGermany

Netherlands

Over 100,000 shoppers observed and interviewed in more than 100 categories in the past 12 years

2006

HungaryCzech Rep

Poland

By 2007

UAERussia

RomaniaBulgariaSerbia


A deep understanding of the Shopper with a unique methodology and a wide Shopper Panel in Europe, US, Eastern Europe and Middle East:

Over 100,000 shoppers observed and interviewed in more than 100 categories in the past 12 years

Country benchmark

Channel benchmark

Category benchmark


More than 80 Manufacturers have participated

http://www.cadburyschweppes.com/EN/


More than 80 Retailers took part in the Research





Agenda


Background: Retail landscape in RomaniaThe retail business structure has started to change in

Romania.

While consumers continue to shop at the lower end of the trade, the modern trade is gaining continuously in importance

There is rapid shifting in urban areas from smaller formats to larger formats. This is due to rapid expansion of the modern trade combined with a reduction of the traditional trade universe

Questions : For Manufacturers, how to enhance the role of Brands

and what is the appropriate assortment in each format ?

For Retailers, what is tomorrow’s winning format ?



2

Shopper

PRODUCT MARKETING

CONSUMER

End User1

3

Buyer

Reasons for Shopping at discounters

- Shopping mission - Role of the Brand in Stores/Channel selection (Depending: assortment, services, prices…)

– Purchase habits – Assortment– Brand– Private labels – Pricing– Impact of Promotion

At Channel / Retailer levelAt Category / level


Benefits of the research

How to enhance the role of Brands and what is the appropriate assortment in each format?

Understand the place of each category within each shopping mission taking the shopper to each individual channel / retailer

Specific channel shopper’s insights

Role of the brands in attracting shoppers to stores

Role of promotions: recruit or build loyalty

Role of price


Methodology1. Focus Groups

Respondents:Women between 25 and 45 years old with at least one child living at home Should be responsible for carrying out the main shopping for the family

Bucharest, Timisoara, Brasov, Costanta

2. Quantitative InterviewsFace-to-face interviews

Respondents:at the exit of the stores purchased at least 2+ shopping bags

1200 interviewsHypermarketsSupermarketsCash & CarryDiscountersTraditional GroceryPharmacies


General Report:Perception of the different channels: general image, quality offered, assortment, pricing

Expectation towards the different attributes for each channel: offer, brands, private labels, services

Shopping habitsType of Shopping mission (routine, immediate need, specific purchase, top up)Frequency of coming to the storePurchasing planning (Shopping list)Time spent to do the shopping Other channel / stores visited

Store preferencePreferences / Criticism / Reasons for shopping in specific stores

Shopper’s demographics per channel: age, gender, occupation, family size


Specific Category insights:

Where do shoppers normally purchase specific categories?

Do shoppers plan in advance to buy branded products?

For planned categories, what is the main criteria shoppers know before reaching the store? (price, brand, fragrance, quantity etc)

Main reasons for buying a product (price, brand, fragrance, quantity etc)

What do shoppers do if they cannot find the product / brand they want?

Preference in buying retailers own brandvs. well-know national / international brands





Agenda


Key Shopper Insights

Perception of the different channels in Romania

Store preference

Shopping habitsType of Shopping mission (routine, immediate need, specific purchase, top up)Frequency of coming to the storeTime and money spent to do the shopping Purchasing planning (Shopping list)

Romania Scorecard – Some Categories


• Seen as conveying an approachable and familiar atmosphere in a simple manner. Appreciated as being common and popular/ being there every time one needs something

• In the same time, seen as keeping track with times/ not remaining behind with anything

• Seen as conveying an approachable and familiar atmosphere in a simple manner. Appreciated as being common and popular/ being there every time one needs something

• In the same time, seen as keeping track with times/ not remaining behind with anything

Modern/ spontaneous character

Special/ Sophisticated

Common/ Popular

HYPERMARKETHYPERMARKET

SUPERMARKETSUPERMARKET

• Seen as implying a very modern and up-to-date shopping style, since offering a very large range of products and brands, well-disposed on the shelves, in a single place

• Seen as offering a warm and pleasurable atmosphere to do shopping. Perceived as being very close to people, permanently coming with appealing offers

• Seen as implying a very modern and up-to-date shopping style, since offering a very large range of products and brands, well-disposed on the shelves, in a single place

• Seen as offering a warm and pleasurable atmosphere to do shopping. Perceived as being very close to people, permanently coming with appealing offers

• Perceived as being rather exclusivist/ addressing a small segment of consumers

• Not very approachable/ seen as rather distant and rigid

• Perceived as being more preoccupied by their personal success than to satisfy clients’ needs or to create a pleasant atmosphere

• Perceived as being rather exclusivist/ addressing a small segment of consumers

• Not very approachable/ seen as rather distant and rigid

• Perceived as being more preoccupied by their personal success than to satisfy clients’ needs or to create a pleasant atmosphere

• Unappealing in terms of imagesince not implying anything new/ modern

• Rather obsolete type of store/ reminding of Communist period of time, since offering a narrow range of products

• Unappealing in terms of imagesince not implying anything new/ modern

• Rather obsolete type of store/ reminding of Communist period of time, since offering a narrow range of products

• Perceived as keeping track with times/ being modern and dynamic

• Associated with the “specialist”/ expert type, since offering secure and safe products

• Seen as having a touch of refinement and sophistication

• Perceived as keeping track with times/ being modern and dynamic

• Associated with the “specialist”/ expert type, since offering secure and safe products

• Seen as having a touch of refinement and sophistication

• Seen as having a wide range of products and brands

• Very unappealing appearance – not caring itself/ having un untidy aspect

• Seen as having a wide range of products and brands

• Very unappealing appearance – not caring itself/ having un untidy aspect

Perceived Images of the Channels in Romania

CASH-AND-CARRYCASH-AND-CARRY

Mature / controlled character

TRADITIONAL GROCERY

TRADITIONAL GROCERY

DISCOUNTERDISCOUNTER

PHARMACY PHARMACY

Note: Qualitative part of the study was carried out by Synovate


Store Selection: Main Reasons for Store Preference

CZ HU PO ROI can find all the products I need 42% 53% 47% 40%Doing shopping is faster 26% 43% 40% 36%

The location of the store is convenient 62% 43% 53% 39%

I know products are going to be cheap 32% 22% 26% 21%

0%

10%

20%

30%

40%

50%

60%

70%

CZ HU PO RO


Global perspective of shopping trip missions across Europe

European Research : Average All categories, All stores

Shopper

CONSUMER

Overall Trip Mission

Europe AVG

Czech Rep. Results

Poland Results

Hungary Results

Romania Results

Business Strategy

Routine Shopping (weekly, monthly)

47% 37% 22% 41% 25% Building loyalty (C&C, HM)

Small Current Purchases (fresh, top up)

22% 34% 44% 32% 45% Recruiting (SM,HD)

Urgent needs 15% 16% 25% 15% 28% Store nearby

Specific occasion

17% 13% 8% 12% 2% Recruiting (C&C)


40%

20%

35%

9%

60%

50% 62%

65%

24%

64%

HM SM Discounters Traditional trade store Cash & Carry

For specific purchases: forspecial occasion (eg.birthday, back-to-school) orbecause of specific offer(promotion?) For emergency purchases(urgently needed products)

For small current purchases(ex: fresh products)

For big routine shopping(weekly ? monthly. Ex.Household basic needs)

Q5 - What is the main reason for coming to this store today? Nb of respondents: 1200

C&C, and HM, followed by HD have the highest percentages for routine shopping


Shopping Habits Romania Vs. CEE

020406080

100

Main Store for Shopping 0

20

40

60

80

Less than 30 min. in Store

0

10

20

30

40

50

More Money Spent0

20

40

60

Frequency: At least once a week

% %

% %

Romanians spend less time and less money in the store in comparison with the other countries which is in line with the high % of small current purchases

CEE Romania


About 50% of Romanian Shoppers decide at home what to purchase. High Opportunity for In-store marketing.

CEE RO

05

1015202530354045505560

Shopping List

Pre-planned purchases are also heavily dependable on the category

The most planned categories are processed meat, water, coffee, CSD and toothpaste: linked to basic and high frequent consumption.


Romania Scorecard : Selected categories in all channels

Average 25 categories Coffee

Breakfast Cereal CSD Detergents

72%

43%

64%

37%

76%

72%

56%

79%

50%

57%

43%

66%

41%

55%67%

Toothpaste

In general, I buy well-knownbrands 76% 82% 83%

I know in advance that I will buythis product in this store 47% 59% 52%

I choose between 2 or 3 brands I trust in 59% 60% 50%

Good Price is why I buy from thisstore 40% 43% 45%

If I didn't find the product I wouldsubstitute 60% 57% 50%

The brand has an important role especially for coffee and Toothpaste

Higher brand predetermination on well-known brands

High substitution on most categories, especially for Breakfast Cereal and CSD

common to switch between 2-3 well trusted brands


THANK YOU FOR YOUR ATTENTION

re-inventing shopper insight · 2011-08-19 · and shelf space organisation ... fat fmcg / category...

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