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Value Add StoriesDriving Growth through Market &Driving Growth through Market &

Shopper Insights

Infocado Summit 2010Infocado Summit 2010By Yahya Kanj

Driving growth through Market & Shopper Insights

What’s the big fuss…..Why g yshould I care?

Answer: Understanding the Shopper is the key to driving Growth


My Goal today….

•How information can be used to make more ff ti b i d i i ?effective business decisions?

Sh ith l lif t di•Share with you real life case studies

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.


Fresh Market Wrap

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Fresh Market Wrap – Key Highlights

• Fresh Produce nominal growth (0.9%) on last year, however we are starting to see improved performance in the last 13 wks, growing at 3.0%

• QLD star performer driving growth, whilst NSW market receding due to decline in Fruit sales

• ALDI growing at 8.5% on last year (most through switching from WW and Non-Supermarkets)

• Vegetable sales out-growing Fruit

• Pre-packed for both F&V continue to grow faster than Loosep g

• Shoppers buying more volume (paying less), and purchasing less often -increasing consumption should remain a key focus!

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g p y

• Families & Young Adults dampening category growth



Thoughts for Consideration

• Am I growing my shipments to QLD? If not, can I do more…

• Am I heavily reliant on NSW market? How can I be more efficient?

A I d ith ALDI? If t h t? C ld thi b• Am I engaged with ALDI? If not, why not? Could this be an opportunity?

I P k d i f ? If h ?• Is Pre-packed an opportunity for me? If so, how?

• What marketing initiatives am I undertaking to expand F&V g gconsumption?

• Should I be targeting Families & Young Adults to grow sales for my

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g g g g yproduct? And if so, how?



H i f ti b d?How information can be used?

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How do I use this information?•Should I ship more volume to

QLD, and less to NSW?

•Is there any opportunity in NSW which is currently not

being served?being served?

•Am I missing out on my share of growth in QLD andshare of growth in QLD, and

why?

•Am I driving the QLDAm I driving the QLD growth? If so, share this

learning with your customers for further support

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pp



How do I use this information?Total Fresh Produce

•May want to consider pre-pack options for Fruit &

LooseShare 79.8%

Pre-packedShare 20.2%

pack options for Fruit & Vegetables if you’re not

currently

Value Change -2.3% Value Change +15.6%•Introduce a different size pre-pack

Vegetables Fruit •Direct more loose volumes to

markets, and pre-packed to major supermarkets

Pre-packedShare 25.7%, Value Change +16.4%

Pre-packedShare 13.5%, Value Change +13.7%

j p

•Explore packaging/varietal options, key messages

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How do I use this information?What is driving how much my consumers buy? - Brand Health - Value

ALL SHOPPERS - AUS - MAT TO 10/07/2010 - BASED ON VALUE ($000'S)/1000•Apples – Strategy should be aimed at growing frequency of

h T t i tipurchase. Target existing buyers. Messages around # of varieties, health benefits, pack

size options conveniencesize options, convenience options

•Citrus Short term focus1 t•Citrus – Short term focus around increasing frequency. Good story with penetration up yet still 10% don’t buy

1 extrapurchase of

Citrus = $22.9mup, yet still 10% don t buy

•Stone Fruits – Definite focus on getting more people to buy

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on getting more people to buy



Real Life Case Studies• Demographic Targeting Example• Product Focused Examplep

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Apples Case Study

S.A Opportunity to Drive Growth- Product & Marketing Strategy

Driving growth through Market & Shopper Insights Title of Presentation

Apples sales lagging behind rest of market in S.A

Yearly QuarterlyValue % Growth – Total Apples

National

ea y Qua te y14/09/2010 versus year ago

-4.2% +2.6%

S A-5.2% -1.7%

S.A

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What’s driving these sales trends?S A

g

5 2% Dollar Sales

S.A

Shopper Purchase Spend per

-5.2% Dollar SalesShopper

PenetrationPurchaseFrequency

Spend perOccasion

14320,000 fewer purchase occasions



, p

Pre-packed Apples in S.A missing opportunity –showing no growth! What’s different to rest of market?showing no growth! What s different to rest of market?

S.A

Loose Pre packedLoosePurchase Frequency

Pre-packedPurchase Frequency

No change

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* Pre-packed in rest of market is growing strongly



Established Couples primarily behind the decline in Apple Sales in South Australia – Marketing efforts should be concentrated at

Which groups are driving my growth/decline? (Lifestage) - Demographics - ValueSA INC NT - TOTAL APPLES - MAT TO 04/09/2010 - BASED ON VALUE ($000'S)/1000

re-engaging this audience

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Key Strategic Learning’s

• Focus on improving Pre-Packed offering to drive salesHow is the offering different to other states?

S.A

– How is the offering different to other states?– Do we have the right varieties?– Are we over-priced per unit?– Is the packaging as good?Is the packaging as good?– Are we getting fair share of shelf in-store? Front-end visibility

• Primarily target marketing activity to Established CouplesPrimarily target marketing activity to Established Couples– Understand their motivations & barriers to purchase– Where to reach them?

• Invest in sales/marketing activity to drive Frequency of purchase?– Think about consumer loyalty programs, innovative pack types, cross-

promotions, recipe ideas, variety pack, convenience solutions

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promotions, recipe ideas, variety pack, convenience solutions



Mushrooms Case Study

Woolworths Category Review- Range optimisation to drive growth

Driving growth through Market & Shopper Insights Title of Presentation

How does Mushrooms compare?

MAT QTR 4WKSValue Growth – National Aus

Total VegetablesMAT QTRFlat Flat +4%

4WKSYear to June 2009

+6% +6% +7%Growth has been consistently

well ahead of market!What consumer

b h i i

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well ahead of market!behaviour isdriving this?



More people are buying Mushrooms compared to year ago, however still plenty of opportunity to attractyear ago, however still plenty of opportunity to attract shoppers

What are the key consumer drivers of sales? - Brand Health - ValueALL SHOPPERS - AUS - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000

20At the same time, Shoppers are spending more (+$1 per buyer)



ALDI & Woolworths seeing largest growth in share of Mushroom salesof Mushroom sales

What is driving grocery sales? (Account Comparison) - Bigger Picture - ValueALL SHOPPERS - TOTAL VEGETABLES MUSHROOMS - SHARE OF TRADE ($)

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ALDI clearly differentiated from others on $ spend per occasion due to pre-pack range, capturing $1 more per shopper visit

What is driving grocery sales? (Account Comparison) - Bigger Picture - ValueALL SHOPPERS - TOTAL VEGETABLES MUSHROOMS - $ PER OCCASION

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Mushroom growth in Woolworths largely reliant on Established Couples and Bustling Families

Which groups are driving my growth/decline? (Lifestage) - Demographics - ValueAUS WOOLWORTHS/SAFEWAY - TOTAL VEGETABLES MUSHROOMS - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000AUS WOOLWORTHS/SAFEWAY TOTAL VEGETABLES MUSHROOMS MAT TO 13/06/2009 BASED ON VALUE ($000 S)/1000

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ALDI continues to very heavily over-trade amongst Senior Couples, who account for over 20% of their sales

Which groups are driving my growth/decline? (Lifestage) - Demographics - ValueAUS ALDI - TOTAL VEGETABLES MUSHROOMS - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000

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Despite WW gaining share, WW shoppers still over-spend on Mushrooms in Coles and ALDI compared to other commodities –

Opportunity for WW to to increase their shopper loyalty to Mushrooms!Opportunity for WW to to increase their shopper loyalty to Mushrooms!

Where else do my account shoppers buy? (WW) - Retail Health - ValueWOOLWORTHS SHOPPERS - SHOPPER REPERTOIRE ($) - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000

MushroomsTotal Fresh Produce

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In Closing, key messages

• The ‘Old’ ways of selling to a retailer & shopper has come to an endto an end….

• Retailers & Shoppers are increasingly more informed –H h l i t d l th i ht t t i ?How are we helping to develop the right strategies?

• The biggest “bang for our buck” will come when our gg gstrategies and decision making are based on factual shopper based insights, not anectodal feedback

• Think of ways to widen distribution across channels, deliver convenience to the shopper and add value back

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into the category for the retailer!



Thank you


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