shoppers' research jaipuria 1 (1)

8/4/2019 Shoppers' Research Jaipuria 1 (1)

1/44

Understanding

shoppersbehavior

Shopper Research

Page 1


2/44

AGENDA

WHAT IS SHOPPER RESEARCH?

WHY DO WE NEED TO STUDY Shoppers ?

DECOMPOSING SHOPPERS DECISION MAKING

CASE OF HAND AND BODY LOTION

HOW WE CONDUCT SHOPPER STUDY?

Page 2


3/44

Each decision is framed in its own way.

Where do I

choose to shop?

What prompts my desire or

need to shop?

Honey, were out

of cereal...

They sell natural and

organic foods there and

the check out lines

arent long

But which store?

Dont buy the one we got

last time...i want a healthier

one.

3


4/44

And now Ive chosen which

store.....

How do I react to

the environment

within?

The aisles are well

marked. At least I

can find the cereal

aisle easily and bein and out!

4


5/44

Finally.... Im in the aisle. How do I make my choices?

Ive got 5

minutes before

Im due to pick

up the kids...

Whole grain?

Organic? We havent

tried this before...its

good they have a

small pack, let me

get it

Buy

me!

Buy

me!

Buy

me!

Buy

me!

Buy

me!

Buy

me!

5


6/44

The shopping process takes

the consumer through several

decision stages.

Do these work in synergyfor your

category and brand?

If I buy the cereal, I get

Rs. 12 off on the

Biscuits. Ill get those

as well.

Biscuits purchasedon impulse

planned cerealpurchase : brandleaped off the shelvesand induced switching

Despite doing Pre-launch research,spending so much in Advertising,

Channel commission Why my Brand is NOT taking off

???

6


7/44

Understanding how onestarget consumers behaveas shoppers in different

channels and formats, and

leveraging this intelligenceto the benefit of all

stakeholders, defined asbrands, consumers,

retailers and shoppers

What is Shopper Research?

7


8/44

More than 70% of purchasing decisionsare made in-storeDifferent modes of shopping and eachhas a subtly different set of requirementsin-storeMost shopping is significantly influencedby habits, conditioning and culture

Without any emotional influence, theworking memory discards and forgetsinformation in less than 18 secondsShoppers use multi-sensory cues withwhich to evaluate and select or reject

productsShopper are increasingly in auto-pilot/grab n go mode

WHY TO STUDY SHOPPER ?

8


9/44

Shoppers dont waste huge amounts of

energy on everyday shopping decisionsThey use Heuristics to make quickdecisionsAs people spend more time in the store,they become more purposeful, less likely toexplore, and more likely to grab their familiarproducts.After getting "virtue" categories (essentials),shoppers are more likely to head over tolocations that carry "vice" categories(indulgences)

Difference in Behaviorwhen shopping alonethan when shopping in groups.They Bundle Products[ BEER & DIAPER ]

HOW DO SHOPPERS BEHAVE?

Page 9


10/44

key to reaching shoppers lies in understandingthat the auto-pilot mode does get disrupted

by external stimuli

Shoppers move into theexperimental mode yourwindow of opportunity

Page 10


11/44

Lets StartDIAGNOSIS

Page 11


12/44

DECOMPOSING SHOPPERSDECISION MAKING

Page 12

Source : Nielsen


13/44

HOW DOES ITHELP A

MANAGER ?

A CASE OFHAND & BODY

LOTION

CATEGORY

Page 13


14/44

leverageunseen channel potential

decode

shoppingmodality

uncover

channelsynergy

uncover

brandsynergy

unlockunrealized brand opportunities

discoverspecific category dynamics(compared to cross category norms)

unique shopper mode segmentswhats hot and whats not?

Page 14


15/44

decode

categoryshoppingmodality

Page 15


16/44

Where does your category map on theInvolvement-Experimentation grid?

Involvement : How involvedare the consumers in brandchoice evaluation?

Experimentalism : Do theyshop on grab & go auto-pilotmode or do they experimentwith different brands andengage in scrutiny shopping?

supertraction

superslippery

slippery

hightraction

EXPERIMENTATION

INV

OLVEMENT

Page 16

Source : Nielsen


17/44

Deodorant

Liquid Hand Soap

Razors and Blades for

Men

Bar Soap

Razors and Blades for

Women

Body Wash

Toothpaste

ToothbrushShampoos and

Conditioners

Hand and Body Lotion

12.0

17.0

22.0

27.0

32.0

10 15 20 25 30 35 40

Category Typology : Involvement vs.Experimentation

high traction super slippery

slipperysuper traction

EXPERIMENTATION

INVOLVEMENT

Source : Nielsen

Hand & Body Lotion is a

super slippery category must keep shoppers

engaged or they candefect to other brands or

stores

Page 17


18/44

What are the strategic implications?

EXPERIMENTATION

INVOLVEMENT

Challenging to displace brand leaders.If you are the leader, avoid radicalbrand repositioning which may disruptauto-pilot mode.

Weaker competitors can make lots ofnoise but it will fall on deaf ears.

high

traction

supertraction

super

slippery

slippery

While they dont care much about thecategory, they experiment. Price and

promos can easily tip them over.

Dont cut back on ad spend even ifshare trends are stable. If yourconsumers defect, it is an uphill battleto win them back.

Constantly keep consumers engagedto ward off threat with advertising,

buzz, new introductions, packagingand exciting promos

Source : Nielsen

Page 18


19/44

Hand &BodyLotion

Impulse purchase(decision to buy category

taken in the store) : 27%

activation

If shoppers are engaged, opportunityfor incremental sales

Buzz Index 204(indexed to personal care categories)

New Product Activation :High Impact

Promotion Activation :High Impact

impulseIn-store

Hand &BodyLotion

Vsnorm

Checked prices 27

Promotion 14

On special promotion 13

Special display 3

Pack-induced browsing 22

Browsed through several 19

Read pack/ingredients 18

Attractive pack 5

Pack stood out 4

New brand/variant 10

Signage/poster 2

Out of stock 1

Pre-store

Habitual same as usual 37

purchase triggers

Diagnosis

Shoppers of hand & body lotion aremore impulsive, leavingmanufacturers and retailers with achance to increase sales.

This opportunity is dependent upon

the level of shopper engagementwith the product and purchaseactivation

Source : Nielsen

Page 19


20/44

Hand &BodyLotion



activation




impulseIn-store

Hand &BodyLotion

Vsnorm

Checked prices 27

Promotion 14

On special promotion 13

Special display 3

Pack-induced browsing 22

Browsed through several 19

Read pack/ingredients 18

Attractive pack 5

Pack stood out 4


Signage/poster 2

Out of stock 1

Pre-store


purchase triggers

DiagnosisDue to consumers highinvolvement with the category, theyare highly tuned-into the categoryand are very much aware of newproducts/ variants and promotionsthat are introduced.

By manipulating these factors-with new, innovative introductionsand/ or attractive promotions-manufacturers and retailers canachieve increased sales asshoppers will continue to be

engaged with the category.

Source : Nielsen

Page 20


21/44

Hand &BodyLotion



activation


Buzz Index 204(indexed to personal care categories)



impulseIn-store

Hand &BodyLotion

Checked prices 27

Promotion 14On special promotion 13Special display 3

Pack-induced browsing 22Browsed through several 19Read pack/ingredients 18Attractive pack 5Pack stood out 4


Signage/poster 2

Out of stock 1

Pre-store


Recently advertised 6Used coupon 13

Spouses preference 6

Kids preference 2

Friend/rel recommendation 3

purchase triggers

Diagnosis

The key to triggering purchasesof hand & body lotion lies ingrabbing consumers attention.

Attention is focused mostheavily on reading packs and

considering ingredients, so wemust clearly associate the brandwith consumers desired productattributes.

The regular introduction of newbrands/ variants, will generate

buzz and interest amongconsumers, and thus fuelincreased purchases.

Source : Nielsen

Page 21


22/44

Bar Soap

Body Wash

Deodorant


Liquid Hand Soap

Razors and Blades

(NET)

Toothbrush

Toothpaste

Shampoos and

Conditioners

15

20

25

6 11 16

Promotional Activation

PROMOTIONAL ACTIVITY (% sales on promotion)

high impact

low impact

PROM

OTIONALACTIV

ATED

CHOICE

Promos do engage shoppers andactivate purchase

Source : Nielsen

Page 22


23/44

Bar Soap

Body Wash

Deodorant


Razors and Blades

(NET)

Toothbrush

Toothpaste

Shampoos andConditioners

15

20

25

30

35

40

45

50

55

15 20 25 30

New Introduction Activation

high impact

low impact

CONSUMER

PE

RCEPTION

OF

CATEGORYINNOVAT

ION

/CHANGE

CATEGORY CARDIO(% new skus introduced in past 2 years

Liquid Hand Soap

Note: Outlier

New introductions catchattention in the category

Source : Nielsen

Page 23


24/44

INSIGHTSHand &BodyLotion

The highly involved and experimental nature of shoppers makes it aprecarious category that requires much attention on the part ofmanufacturers to keep consumers engaged.

Shopper interest and purchase is peaked by new introductions,promotions, outside recommendations (buzz) and strong packdesigns.

Each of these marketing activities should support a strong productpositioning that clearly identifies key, desirable product attributes,which, in turn, will encourage shopper engagement with the categoryand lead to incremental sales opportunities.

Page 24


25/44

decode

shoppingmodesegments

Page 25


26/44

Shopping mode segments

UninvolvedAuto-pilots

23%

Deal Seekers

Trendsetters

EngagedBrowsers

DiscerningAuto-pilots

27%22%

17%

11%

Source : Nielsen

Page 26


27/44

Shopper engagement

Low involvement

No

Low impulse

High involvement

Somewhat

Low impulse

Med-High involvement

A lot

High Impulse

Med involvement

Somewhat

Med Impulse

High involvement

A whole lot

High Impulse

uninvolved auto-pilots(23%)

discerning auto-pilots(27%)

engaged browsers(22%)

deal seekers (17%) trendsetters (11%)

auto-pilot

experimental

involve

ment

enjoysho

pping

forH

and&

Body

Lotions?

impulse

purchase

incidenceSource : Nielsen

Page 27


28/44

Shopping modes & Triggers

Kids preference

Buy the same one

Buy the same one

Checked prices

Spouse preference

Read pack label

Browsed several Smelled lotion New brand / variant

Coupon

In-store promotion

Checked prices

Coupon Advertising Friends

recommendation Spouse preference Kids preference

In-store promotion Visual pack appeal

Read description New brand / variant Tested lotion on skin Smelled lotion Special display Merchandizing

pre-sto

re

in-store



engaged browsers(22%) deal seekers (17%)

trendsetters (11%)

auto-pilot

experimental

Source : Nielsen

Page 28

Least Challenging& Most diff. to

retain


29/44

Channel & Mission

$store

Restock

Replenish lotionstock at home

Replenish lotion stockat office

Club

Restock

Replenish lotion stockat home

Replenish lotion stockat office

Someone at homerequested it

Mass $store

Entertainment Non-food

Season change -winter

Needed a smallerbottle for travel /carrying in bag

Had an urgent needfor lotion at thatmoment and didnt

have it Felt dissatisfied with

the current lotion

Grocery Pharmacy

Special Offer Restock

Season change -winter

Pharmacy $ store

Entertainment

Season change winter

Pampering self Felt dissatisfied with

the current lotion

Saw a new lotion type

channe

l

shoppe

r

mis

sion




trendsetters (11%)

auto-pilot

whylotion

purchased?

experimental

Source : Nielsen

Page 29


30/44

How do shopping modes and decision rules intersect?

Everyday nongreasy

Special Needs

Special Needs

Therapeutic

Indulgent Therapeutic Indulgent

Naturals




deal seekers(17%)

trendsetters (11%)

auto-pilot

decis

ionrule

segmen

ts

Therapeutic

Special Needs

therapeutic

naturals

special needs

non-greasy

indulgent

experimental

decisionrule

segmen

ts

driven by rules focused on restorative andreplenishment benefits

driven by rules focused on natural, gentle, non-

artificial products

more restrictive rules based on a special skincondition or need, reducing consideration set

looking for an everyday lotion,vetoing on greasiness,consistency

decision rules focused onpampering and scent, otherindulgences

Source : Nielsen

Page 30


31/44

Rules & Moments of Change

Non-greasy Special Needs

Too expensive

Out of stock

Special Needs Therapeutic

Dont want one withfragrance

Consistency is toothin / watery

Not suitable forsensitive skin

Previous badexperience

Out of stock Someone in family

liked it

Indulgent

Looks like aprescription product

Out of stock Pack caught attention

Therapeutic

Too expensive

Coupon In-store promotion

Indulgent Naturals

Does not look like apremium product

Looks like a prescriptionproduct

Dont like the way it feelson the skin

Dont like fragrance Previous bad experience

Came up in conversation Recommendation Advertising Someone in family liked

it Merchandizing Tried it at someones

home / office Internet blogN

eed

momen

ts

vetoru

les




deal seekers(17%)

trendsetters (11%)

auto-pilotdecisionru

le

segments

experimental

Source : Nielsen

Page 31


32/44

Assortment

Suave Private label

Fragrance Free

Everyday moisturizing Extra moisturizing UV protection

Large

Vaseline Lubriderm Gold Bond Cetaphil

Fragrance Free Aloe

Medicated / sensitiveskin

Extra moisturizing Replenishing /

nourishing skin

X- Large

Bottle with pump

Suave Aveeno Olay Neutrogena Private label

Fresh / clean

Nuts & Spice Cocoa Butter

Ultra healing Tanning Replenishing /

nourishing Aroma therapy

Travel Small Medium size

Tube

Dove

Cocoa Butter Citrus

Ultra healing Tanning

Large

Dove Curel

Fruit Nuts& spice Herbal Fresh / clean

Firming Skin smoothing Age defying Aroma therapy

Tube




trendsetters (11%)

brand

fragrance

variety

size

auto-pilot

pack

experimental

Source : Nielsen

Page 32


33/44

Opportunity : Incremental sales and profitability

trendsetters

engagedbrowsers

deal seekers

discerningauto-pilots

uninvolvedauto-pilots

Weak price

veto rules

Strong priceveto rules

Low categoryimpulse

High categoryimpulseincremental sales opportunity

profitabilityo

pportunity

Incrementalsales opportunity

Steady revenue stream for morepremium offerings. Not easily

swayed by cheaper prices or promos

in other stores

Source : Nielsen

Page 33


34/44

uncover

channel

Page 34


35/44

Shopper Missions Defined

To re-stock myhome

A routineshopping trip tobuy items forTODAY

To get an urgentlyneeded item ortwo quickly

To get ready-to-eat items to eat/drink right away orbefore I returnhome

A routine shoppingtrip to buy itemsfor the NEXT DAYor TWO

To get itemsneeded for aMEAL that will beeaten today or

tomorrow

To takeadvantage of aspecial offer

To purchase anon- food item

Re-stock Immediate Intermediate Special Offer Entertainment

Page 35


36/44

Pharmacy

Page 36


37/44

Pharmacy | Shopping mode segments

trendsettersengagedbrowsers

dealseekers



Low categoryimpulse

High category

impulse

Pharmacy

Incrementalsalesopportunity

Pharmacy Leverage trendsetters & deal seekers

Opportunity : Could attract engaged browsers bymaking the shopping experience more engaging

Source : Nielsen

Page 37


38/44

Grocery

Page 38


39/44

Grocery | Shopping mode segments

trendsetters

engagedbrowsers

dealseekers



Low categoryimpulse

High category

impulse

Grocery

Incrementalsalesopportunity

Threat : deal seekers make channel profile vulnerable. They canswitch channels if they find better deals elsewhere.

Opportunity : Attract discerning auto-pilots on restocking mission todrive steady stream of profitable revenue.

Attract engaged browsers / trendsetters by offering trendy products andmaking the shopping experience more engaging.

Source : Nielsen

Page 39


40/44

uncover

brand

Page 40


41/44

Promotion activation

Private label

Aveeno

Olay

Curel

Neutrogena

Lubriderm

Gold Bond

Eucerin

Nivea

Jergens

Dove

Suave Vaseline

Promotional activity (% sales on in-store promos)

In-

storePromotionactivatedchoi

ce

high impact

low impact

Page 41


42/44

HOW To

DO IT ?

Page 42


43/44

Common Methods Used

Accompanied shopping Unaccompanied shop In-store interviews Post purchase analysis

Eye Tracking

Page 43

TO SUM UP


44/44

A deep understanding of keyshopper insights help managersto make brilliant use of all assetswhich shoppers see our brands,

packages, equipment,merchandising, pricing and

messaging which convert a

shopper into a buyer

TO SUM UP

shoppers' research jaipuria 1 (1)

Documents