Eric Le Blanc, VP of Marketing, Deli, Tyson Foods - Consequences of Failure
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Transcript of Eric Le Blanc, VP of Marketing, Deli, Tyson Foods - Consequences of Failure
Consequence of Failure:What happens when things go wrong
Eric Le Blanc,Tyson Foods, Inc.
A light-hearted romp through our worst fears and nightmares
• Why it’s critical to get things right: surely this is obvious, right? Right?
• Don’t try this at home—though the data suggests you already may
• The morning after—I’m never doing THAT again!
360 Degree Competition
Dinner without a plan
70% of shoppers decide TODAY what’s for dinner TONIGHT
27% only decide what’s for dinner when hungry or prompted
The decision to purchase PF is typically made before the shopper enters the store (67%)
Source: Tyson On the Go Foodservice Study, 2014
The battle is won or lost before the consumer ever crosses the threshold
• Supermarket Prepared Foods is NOT top of mind in the 4:00 dilemma
• It ranks third in the consideration set, behind QSR and pizza
• In most cases, Supermarket Prepared Foods is not driving awareness outside of the store
• And…
Source: Tyson On the Go Foodservice Study, 2014
The battle is won or lost before the consumer ever crosses the threshold
The single biggest driver to future visitation is satisfaction with the previous experience
How should we feel about that?
Source: Tyson On the Go Foodservice Study, 2014
What failure looks like:
• 41% of shoppers report a problem in their prepared foods shopping experience in the past 90 days
• Of these, 53% will stop shopping the retailers for a period of time
Source: Consequence of Failure Study, 2015
Incidence of ProblemsGeneral Deli Issues 42.9%
Product Issues 46.7%
Staffing Issues 22.2%
• General Deli Issues: long wait time, products weren’t ready, products weren’t available or were difficult to find, deli wasn’t sanitary
• Product Issues: product didn’t appear fresh, wasn’t tasty, wasn’t of good quality, was overcooked/dry, was undercooked
• Staffing Issues: staff wasn’t knowledgeable, helpful, or friendly; staff was rude
Source: Consequence of Failure Study, 2015
10
Impact of a problem on satisfaction:
Prepared Foods Shopping Experience
Overall shopping experience
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
55.3%
82.4%
47.9%
65.1%
% of Shoppers Reporting (Top three box)
Problem No problem
Source: Tyson Consequence of Failure Study, 2015
Satisfaction with the prepared foods shopping experience AMONG DELI PREPARED FOODS SHOPPERS lags their satisfaction with the whole store shopping experience!
11
Impact of a problem on likely to recommend:
Likely to shop
Likely to recommend
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
80.9%
77.4%
56.6%
50.6%
% of Shoppers Reporting (Top three box)
Problem No problem
Source: Tyson Consequence of Failure Study, 2015
Given that the consumer has so many choices for convenience meals, retailers cannot afford this negative impact on the pre-shop decision-making process
12
How satisfied are you with:
Prepared Foods Shopping Experience
Overall shopping experience
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
32.2%
43.8%
46.6%
57.4%
22.2%
34.3%
% of Shoppers Reporting (Top two box)
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
13
Problem Areas
Staffing Issues
Product Issues
General Deli Issues
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
22.2%
46.7%
42.9%
13.5%
33.8%
32.7%
43.5%
63.8%
63.8%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
14
Drivers of purchase intent:Problem vs no problem
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
78.9%
50.7%
75.0%
61.6%
70.2%
66.4%
58.9%
37.2%
45.6%
43.7%
45.0%
41.4%
% of Shoppers Reporting (Top three box)
Problem No problem
#1 driver of purchase intent
Source: Tyson Consequence of Failure Study, 2015
Deli prepared foods shoppers who have experienced a problem show drastic reductions on all drivers of purchase intent: This reduction is a strong negative impact on pre-shop attitudes and behaviors
15
Drivers of purchase intent:By type of problem
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
78.9%
50.7%
75.0%
61.6%
70.2%
66.4%
53.7%
41.3%
42.6%
41.7%
42.3%
40.2%
% of Shoppers Reporting (Top three box)
General Deli Product Staffing No problem
#1 driver of purchase intent
Source: Tyson Consequence of Failure Study, 2015
While generally speaking, all types of problem negatively impact purchase intent, the most pronounced effect is a result of product problems; deli shoppers appear to be somewhat more tolerant of “general deli issues”
16
Staffing Issues
Staff was rude
Staff was not friendly
Staff was not helpful
Staff was not knowledgeable
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
22.2%
46.7%
7.3%
6.2%
10.0%
33.8%
2.6%
2.1%
43.5%
63.8%
15.9%
17.4%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
17
Change in store visitation as a result of staffing issues
Permanently
For a long period of time
For a short period of time
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
6.8%
9.4%
38.5%
3.6%
2.2%
14.3%
14.3%
28.0%
69.2%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
18
Considering staffing issues…
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
43.9%
37.2%
38.7%
37.7%
36.9%
37.3%
64.3%
68.8%
58.7%
68.8%
68.8%
59.5%
28.0%
16.0%
12.5%
9.1%
25.0%
18.2%
% of Shoppers Reporting (Top three box)
Worst Best Industry
#1 driver of purchase intent
Source: Tyson Consequence of Failure Study, 2015
19
Product Issues
Product quality was poor
Product taste was poor
Breading was not crispy
Product was overcooked
Product did not appear fresh
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
7.4%
7.5%
10.5%
12.4%
12.6%
2.6%
2.9%
5.3%
4.9%
4.9%
14.9%
16.3%
18.4%
20.3%
21.3%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
Cook to proper temperature and follow holding procedures to eliminate major product issues
20
Considering product issues, how likely are you to:
Visit
Recommend
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
45.2%
40.0%
61.9%
68.4%
26.2%
22.0%
% of Shoppers Reporting (Top three box)
Worst Best Industry
No product issue : 48.5%
No product issue : 51.6%
Source: Tyson Consequence of Failure Study, 2015
As with staffing issues, the greater negative impact is on likelihood to recommend
21
Considering product issues…
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
44.3%
31.8%
32.1%
32.5%
31.3%
29.4%
60.6%
48.9%
51.5%
54.5%
54.5%
48.5%
31.1%
21.3%
19.7%
21.3%
21.3%
19.5%
% of Shoppers Reporting (Top three box)
Worst Best Industry
#1 driver of purchase intent
Source: Tyson Consequence of Failure Study, 2015
22
Change in store visitation as a result of product issues
Permanently
For a long period of time
For a short period of time
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
3.5%
6.9%
25.5%
1.6%
2.3%
6.1%
5.7%
19.7%
35.1%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
23
General Deli Issues
Deli was not sanitary
Products were difficult to find
Products were not available
Products were not ready
Long wait time
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
3.3%
4.7%
13.4%
9.9%
24.4%
0.8%
0.8%
5.4%
4.3%
14.5%
8.7%
13.0%
18.3%
18.8%
35.4%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
24
Considering general deli issues, how likely are you to:
Visit
Recommend
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
51.1%
47.1%
78.8%
75.8%
36.2%
29.8%
% of Shoppers Reporting (Top three box)
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
The shopper appears to be somewhat more forgiving of general deli issues, suggesting issues like long lines are an un pleasant though expected feature of the shopping experience
25
Considering general deli issues…
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
50.8%
37.4%
43.8%
41.4%
44.2%
40.4%
63.6%
55.6%
57.6%
58.1%
62.9%
56.5%
33.3%
28.3%
23.6%
35.8%
32.1%
28.3%
% of Shoppers Reporting (Top three box)
Worst Best Industry
#1 driver of purchase intent
Source: Tyson Consequence of Failure Study, 2015
26
Change in store visitation as a result of general deli issues
Permanently
For a long period of time
For a short period of time
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
3.3%
4.4%
22.4%
1.6%
3.8%
8.5%
4.4%
8.1%
42.9%
% of Shoppers Reporting
Worst Best Industry
Source: Tyson Consequence of Failure Study, 2015
Conclusions
• The battle for the prepared foods visit is won or lost OUTSIDE of the store
• Problems happen FAR too frequently and the consequences can be severe far beyond the prepared foods area of the store
• The ability to execute may be the single most greatest competitive point of difference
Implications
• Drive awareness– Elevate your place in the 4:00 consideration set
• Train store associates for:– Product knowledge– Customer service principles
• Control product– Availability– Cooking time/hold time
Thank you!