“ Improving the portfolio to gain

in the market”

Fernanda Accorsi Retail Expert FA Retail - www.fernandaaccorsi.com

Neighborhood stores:

space

Neighborhood stores:

©FA Retail - Content & Solutions/2015

©FA Retail - Content & Solutions/2015

WHY THE NEIGHBORHOOD STORES ?

They are 50 - 60%* of the market for the 2 main

categories: Toilet Paper and Kitchen Towel.

1-4 cks:

5-9 cks:

Traditional:

* Source: Share Volume / Nielsen Retail Index - 2013

(Grocery)

21% 20%

10% 6%

28% 21%

• the market penetration (for

categories that can still be

developed)

• the offer/ demand for

premium versions - add

SKUs with higher value

©FA Retail - Content & Solutions/2015

Good opportunity to increase:

WHAT CHANGED

CONSUMPTION PATTERNS

©FA Retail - Content & Solutions/2015

©FA Retail - Content & Solutions/2015

Location

73% want to save time

during the purchase: FAST

SIMPLE ENJOYABLE

* Source: Kantar World Panel - 2015

©FA Retail - Content & Solutions/2015

Convenience It is not based on size

anymore, but on the need.

©FA Retail - Content & Solutions/2015

The BIG

want to be small

The dispute for the Neighborhood

location & convenience

©FA Retail - Content & Solutions/2015

Technology Many stores are already

automated and also

prepared with modern

systems and softwares:

Supply Chain

Store Management Shopper Data

Atention 52% expect better

service and complain for

not receiving help from the staff.

* Source: Kantar World Panel - 2015 ©FA Retail - Content & Solutions/2015

The SPACE is reducing

The

PORTFOLIO

is

increasing

Dynamic MSP

©FA Retail - Content & Solutions/2015

SHOPPER BEHAVIOR

Understanding the Shopper

- Throughout the generations -

X GENERATION

BABY

BOOMERS

Y GENERATION

Z GENERATION

1960’s – 1980’s 1980’s – 2000’s 2000’s - Now 1940’s – 1960’s

©FA Retail - Content & Solutions/2015

BB X

Z Y

BABY BOOMERS X GENERATION

Y GENERATION Z GENERATION

• Loyal shoppers & consumer

• Resistant to change + quality oriented

• New social media members

• Downsizing house

consumption

• Brand loyalty once they trust

• Consume several media channels

• Seek product information

(specially online) – 1st gen online

• Less money individually

Higher household income

• No brand loyalty – TRY IT!

• Aspirational, intuitive

performance, customized products

• Omnipresent connectivity – reviews

• Rooming with parents until later

• Reality x Perfect life

• Products: more important

than brands (customer service)

• Digital Natives (overconnected)

• Research before purchasing

• Loyal shoppers & consumer

• Resistant to change + quality oriented

• New social media members

• Downsizing house

consumption BB

BABY BOOMERS

BB X

Z Y

BABY BOOMERS X GENERATION

Y GENERATION Z GENERATION

• Loyal shoppers & consumer

• Resistant to change + quality oriented

• New social media members

• Downsizing house

consumption

• Brand loyalty once they trust

• Consume several media channels

• Seek product information

(specially online) – 1st gen online

• Less money individually

Higher household income

• No brand loyalty – TRY IT!

• Aspirational, intuitive

performance, customized products

• Omnipresent connectivity – reviews

• Rooming with parents until later

• Reality x Perfect life

• Products: more important

than brands (customer service)

• Digital Natives (overconnected)

• Research before purchasing

• Brand loyalty once they trust

• Consume several media channels

• Seek product information

(specially online) – 1st gen online

• Less money individually

Higher household income X

X GENERATION

BB X

Z Y

BABY BOOMERS X GENERATION

Y GENERATION Z GENERATION

• Loyal shoppers & consumer

• Resistant to change + quality oriented

• New social media members

• Downsizing house

consumption

• Brand loyalty once they trust

• Consume several media channels

• Seek product information

(specially online) – 1st gen online

• Less money individually

Higher household income

• No brand loyalty – TRY IT!

• Aspirational, intuitive

performance, customized products

• Omnipresent connectivity – reviews

• Rooming with parents until later

• Reality x Perfect life

• Products: more important

than brands (customer service)

• Digital Natives (overconnected)

• Research before purchasing

Y

Y GENERATION

• No brand loyalty – TRY IT!

• Aspirational, intuitive

performance, customized products

• Omnipresent connectivity – reviews

• Rooming with parents until later

BB X

Z Y

BABY BOOMERS X GENERATION

Y GENERATION Z GENERATION

• Loyal shoppers & consumer

• Resistant to change + quality oriented

• New social media members

• Downsizing house

consumption

• Brand loyalty once they trust

• Consume several media channels

• Seek product information

(specially online) – 1st gen online

• Less money individually

Higher household income

• No brand loyalty – TRY IT!

• Aspirational, intuitive

performance, customized products

• Omnipresent connectivity – reviews

• Rooming with parents until later

• Reality x Perfect life

• Products: more important

than brands (customer service)

• Digital Natives (overconnected)

• Research before purchasing

Z

Z GENERATION

• Reality x Perfect life

• Products: more important

than brands (customer service)

• Digital Natives (overconnected)

• Research before purchasing

BB X

Z Y

They are all purchansing together.

new Purchase Experience client’s revolution The:

Marketing 1.0 / 2.0

Marketing 3.0

Engagement!

REVIEWING THE PORTFOLIO

©FA Retail - Content & Solutions/2015

©FA Retail - Content & Solutions/2015

Let’s think about how many active SKU’s

we have in our PORTFOLIO.

Are we negotiating them on the right

channels?

©FA Retail - Content & Solutions/2015

If Small stores want to offer the

same SKUs that

the BIG ones…

©FA Retail - Content & Solutions/2015

…Reduce your mix, improve the shopping experience.

Help the shopper to find what they are looking for.

Reduce the ‘out of stock’ of

popular products

©FA Retail - Content & Solutions/2015

Don’t wait for the client to reduce the range.

Focus on the Core business.

Develop the market choosing

more profitable SKUs :

1

2

3

PLY 50

75

100

COUNT

? ?

Develop the market choosing

more sustainable options :

©FA Retail - Content & Solutions/2015

Advantage of small retail: Private labels are not present in

all of them.

Less can be better. Make your portfolio Stronger.

Challenge Stop wasting:

- Costs - Time - Efforts

…and paper!

Fernanda Accorsi Retail Expert FA Retail - www.fernandaaccorsi.com

Thank you!