Marketing at Retail - Trade Intelligence...customer segmentation outlined above • Identify a...

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Marketing at Retail Retailer Insights and Opportunities December 2018 Copyright © 2019 Trade Intelligence. All rights reserved. Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the author’s written permission. Any unauthorised reproduction of this work will constitute a copyright infringement and render the doer liable under both civil and criminal law.

Transcript of Marketing at Retail - Trade Intelligence...customer segmentation outlined above • Identify a...

Page 1: Marketing at Retail - Trade Intelligence...customer segmentation outlined above • Identify a common category growth objective and deliver an innovative, Makro brand aligned, shopper

Marketing at Retail

Retailer Insights and

Opportunities

December 2018

Copyright © 2019 Trade Intelligence. All rights reserved. Copyright subsists

in this work. No part of this work may be reproduced in any form or by any

means without the author’s written permission. Any unauthorised

reproduction of this work will constitute a copyright infringement and

render the doer liable under both civil and criminal law.

Page 2: Marketing at Retail - Trade Intelligence...customer segmentation outlined above • Identify a common category growth objective and deliver an innovative, Makro brand aligned, shopper

| Marketing at Retail © 2018 | Page 2

Marketing at Retail Overview

Contents

• Massmart

• Makro

• Game

• Cambridge

• Masscash Wholesale

• Shoprite Group

• Shoprite

• Checkers

• Usave

• Pick n Pay Group

• Pick n Pay

• Boxer

• SPAR

• Woolworths

• Clicks

Retailer insights and opportunities

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Massmart GroupMarketing at Retail Overview

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Marketing at Retail Overview

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INSIGHTS OPPORTUNITIES

• Makro;s focus is to grow market share in

both retail (LSM 6-10)) and commercial

(LSM 2–8) segments

• Understand the Makro brand positioning

• Understand the distinct shopper segments, and variance by store

• Understand and optimise targeted marketing promotions across more granular

shopper segments

• Measure the effectiveness of your promotional spend

• Engage with banner groups

• Makro optimise range based on the

customer segmentation outlined above

• Identify a common category growth objective and deliver an innovative, Makro brand

aligned, shopper marketing solution

• Investigate sampling opportunities with customers waiting to collect wholesale orders

• Participate in multi-buys or bulk packs to drive pantry-fill shopping

• Better data to drive insight into better

business decisions

• Extract insights through Makro Card data for better informed marketing and ranging

decisions, and facilitating targeted SMS/email marketing campaigns

• Makro intend to expand, improve and refine

online/e-commerce and invest in back-end

development

• Drive an omni-channel strategy, from smartphones to in-store

• Drive online sales / advertising via makro.co.za

• Work with Makro to leverage data obtained through the Makro card

• Investigate listing opportunities created through Makro Marketplace

• Digitised mCard App loyalty programme

proving successful, as Makro’s online sales

increase +37% in FY2018

• Investigate opportunities to leverage this platform

• Increased focus on delivering value to

customers and margin to the business

through private label participation – ‘more

for less’, big on quality, big on value’

positioning

• Explore private label innovation and supply opportunities

• Monitor developments across your categories

Marketing at Retail Overview

Makro Shopper, Marketing & Loyalty Drivers, In-store Environment

Retailer Insights and Supplier Opportunities

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November 2013

Marketing at Retail Overview

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INSIGHTS OPPORTUNITIES

• Game is a well known trusted brand,

with a strong value proposition

• A multi-category format discounter

retailer of general merchandise, fresh

food, groceries and liquor for home

• Game’s focus is to grow market share

in the LSM 4 – 10 profile

• The core shopper is typically in the

economically-active mass market, with

young families (50% of spend from

younger families)

• Shoppers seek value

• Shoppers are both top-up and monthly

shopper – weighted to a monthly bulk

shop

• Understand Game’s value positioning

• Understand the life stages of the core shopper, with a key focus on families

‒ Capitalise on the fact that 50% of Game’s spending is coming from young

families (baby category etc.)

• Positioning advertising and NPD to the core shopper

• Can you offer an exclusive value pack (not bulk)

• How can you tailor products or offerings to the core customer at different life

stages?

• Link groceries to a home/electrical product for a special

Marketing at Retail Overview

Game Shopper

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

Shopper Marketing

• Strong value positioning in the market

• Strong price promise guarantee -

:Found it Cheaper?”

• Understand what category will play what role, in what store to assist with volume

forecasting

• Look for value promotions on KVIs which will reiterate Game’s value proposition

• Support promotions with in-store POS e.g. GE and FSUs

• Explore opportunity for exclusive pack sizes

• Big promotions in key categories – Back to school, baby etc.

• Collaborate on themed leaflets to grow key focus categories such as Pet Care

or Personal Care

• Get involved in bulk product displays if relevant

• Drive competitions, with simple entry mechanisms

• Use Game price mechanics of multi-deals, bundle deals, round pricing

• Attend Supplier Briefings • Relationship building - evaluate opportunities to engage in collaborative

planning across all business functions, from management to fill rates to on-time

deliveries

• Look for JBP opportunities

Marketing at Retail Overview

Game Marketing & Loyalty Drivers

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• New store layout plan (best practice

from Walmart discount stores)

• Understand Game’s operational KPIs

• Understand the new Game layout format and how it affects your categories

• Understand what category will play what role, in what store to assist with volume

forecasting Monitor RDC developments

• Identify opportunities for your business to engage with Game to optimise supply

efficiencies

• Explore shelf-ready packaging where possible

• Explore in-store information signage needed by customers to fulfil lack of sales

staff

• Online shopping is growing and digital

communication platforms are used

heavily for advertising, shopper

engagement and competitions

• Take advantage of Game’s growth online

• Maximise use of digital through social media

• Investigate the use of Game’s targeted SMS/Email

Marketing at Retail Overview

Game In-store Environment

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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INSIGHTS OPPORTUNITIES

• Cambridge serve shoppers across LSM 3 – 6, with

strong regional brand loyalty

• Understand the Cambridge brand positioning and shopper profile

• Take advantage of category focuses (baby, health & beauty, back to school)

• Transactional data utilised to better understand

shoppers

• Extract insights for better informed marketing and ranging decisions, and to

facilitate targeted SMS/email marketing campaigns

• Strong ‘shoppertainment’ value proposition

• Participate in promotions that resonate with Cambridge focusing on driving

footfall, increasing sales, creating shopper excitement and promote brand

awareness, in line with the slogan of ‘Save Money, Live Better’

• Investigate ‘entertainment’ road show type promotions

• Cambridge Food customers remain focused on price

as a key driver. Cambridge enjoys a value price

perception amongst its customers

• Collaborate on price-lead promotions driving a quality and value perception

amongst Cambridge shoppers

• Cambridge enjoys a strong social media presence

on Facebook and Mobile

• Utilise digital media platforms to engage with the Cambridge shopper base.

From research into shopper preferences, to communication of promotions

and price deals/special offers

• Strong private label participation• Explore private label innovation and supply opportunities

• Monitor developments across your categories

• Consolidation of Wholesale and Retail management

and buying teams

• Capitalise on fewer touch points arising from merged management teams

• Optimise customer facing structures vis-à-vis single Masscash buying team

• Collaborate with the division’s marketing team, as they welcome the

opportunity to work with suppliers to optimise category POS design and

collaborative promotions

Retailer Insights and Supplier Opportunities

Cambridge Shopper, Marketing & Loyalty Drivers, In-store Environment

Marketing at Retail Overview

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Private Label Private Label Trade Profile | Shopper Marketing | 2016Marketing at Retail Overview

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Marketing at Retail Overview

INSIGHTS OPPORTUNITIES

• Masscash serves shoppers across LSM’s 2-6 with

strong regional variances in terms of brand preferences

• Understand what drives wholesale shopper / customer

behaviour and ensure relevant ranging and promotion

• POS and instore activations suitable to retail trading

environments, often do not operate successfully in the

wholesale trade

• Develop robust and relevant POS materials fit for the

wholesale environment

• Growth in Franchise a strategic driver within Masscash.

Multiple format opportunities for supplier exist

• Take advantage of the Masscash drive to develop tailor-made,

mutually-beneficial promotional campaigns across franchise

• Stokvel programmes are a primary driver of customer

loyalty within CBW and Jumbo stores• Partner with Masscash on stokvel initiatives

• New product development needs to be geared towards

the needs of the LSM 2-6 market in terms of product

offering, packaging and price

• New product development: what channel differentiation

opportunity are you bringing to Masscash?

• Insufficient after-sales service in wholesale results in

poor or inconsistent merchandising and lacklustre

displays

• Ensure availability of stock on promotion

Masscash Wholesale Shopper, Marketing & Loyalty Drivers, In-store Environment

Retailer Insights and Supplier Opportunities

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Shoprite GroupMarketing at Retail Overview

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November 2013

Marketing at Retail Overview

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INSIGHTS OPPORTUNITIES

• Shoprite has built their brand positioning

‘lower prices you can trust, always’ around

being South Africa’s trusted low price retailer

• Understand the Shoprite brand positioning and their

customer/community centric approach

• Collaborate to innovate on price (Shoprite’s drive for price leadership is

relentless and meticulously monitored)

• Work together to drive footfall into Shoprite and create a simple and

enjoyable ‘one-stop’ shopping experience

• Shoprite serves the mass middle market

across LSMs 4-7, predominantly black, with

mode of transport mainly public

• Understand shopper trends and behaviour / missions within Shoprite

• Work together with the Customer Insight Department dedicated to

working with dunhumby i.e. gain basket insights through the ePOS and

customer data for potential collaborative promotion opportunities

• Shopper frequency is a bulk shop at month

end, where every rand counts to make ends

meet

• Understand the Shoprite trading cycles (mid month, month end etc.)

• Drive sales in the core LSM4-7 market

• Serving the community is integral to the

Shoprite Group positioning

• Align your promotions to the Shoprite brand and shopper

• Collaborate on community initiatives and build an emotional connection

to your brand i.e. #Act for Change

• Social grants make up a critical portion of the

Shoprite target shoppers’ disposable income

• Give out product samples/product information or provide a meal solution

at social grant pay-out days

Retailer Insights and Supplier Opportunities

Shoprite Shopper

Marketing at Retail Overview

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INSIGHTS OPPORTUNITIES

• Online presence is growing and digital

communication platforms are used heavily for

advertising, shopper engagement and

competitions

• Drive an omnichannel strategy, from smartphones to in-store

• Develop shopper-centric promotions as opposed to sales-centric

promotions i.e. targeted direct marketing via SMS or email

• Increase shopper engagement through Facebook competitions

• Marketing campaigns are simple but highly

effective, creating excitement through

innovative messages and mechanics

• Use Shoprite price mechanics through advertising on till slips, and

participating in value added/free deals, free airtime and food

subsidy/price freeze campaigns

• Participate in themed promotions targeted throughout the year e.g.

Birthday, Mega Wednesdays, Yellow Ticket etc.

• Support your special with advertising in print, radio and TV platforms

• EeziCoupons were discontinued end June

2017 and upgraded to a mobile app, offering

shoppers easy access to instant savings

• Collaborate with Shoprite and gain valuable insights from the data

• Value added ranging • Innovate with new product formats to build interest and variety

o Shoprite value SKUs and smaller pack size opportunities

o Exclusive pack size and bundling opportunities

• Better data to drive insight into better business

decisions

• Understand the role of dunhumby and how to utilize their data

• Engage in category reviews, facilitated by dunhumby

• Attend Supplier Briefings • Relationship building and JBP opportunities

Marketing at Retail Overview

Shoprite Marketing & Loyalty Drivers

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• All in-store POS is managed and installed by

ZaPOP

• Understand which POS is relevant in Shoprite stores, and what ZaPOP

requirements are

• Consider mission based POS, introducing more cross category

merchandising in focus categories e.g. fresh / baby /hair & beauty /

general merchandise

• Support promotions with relevant and innovative in-store material that

breaks through the clutter

• Destination categories offer a

one-stop shopping experience

• Understand the role of your category in-store

(destination/convenience/core category)

• Find out what is next and where the innovation pipeline is e.g. Wine is

now advertised on broadsheet

• Collaborate to improve growth categories in-store e.g. Haircare

• Create a theatre of shopping experience that will build an emotional

connection with shoppers

• Shoprite is renowned for smart and relevant

innovation in value-added services, bringing

shoppers the best in one-stop convenience

• Look for opportunities to cross merchandise or cross advertise with these

services

• Private label makes up a sizeable portion of the

Shoprite Group range across shopping formats

and categories, and contribute to the low-price

promise

• Collaborate with Shoprite to participate in private label production

• Register on the product specification system to upload product

specifications

• Shoprite build and maintain strong relationships

with a broad and diversified group of suppliers

• Contribute to savings in the value chain - be equipped with a sound

commercial argument and customer proposition

Marketing at Retail Overview

Shoprite In-store Environment

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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INSIGHTS OPPORTUNITIES

• Checkers and Checkers Hyper serve shoppers,

across LSM 8 – 10, that are time-pressed and

seeking value-for-money, quality, range and

product innovation

• Checkers has been earmarked as the vehicle to

grow this lucrative upper LSM share of wallet

• Understand shopper trends and behaviour / missions within Checkers

• Work together with the ‘Your Customer Insight’ Department dedicated to working

with dunnhumby, which analyses the digital and transactional data in order to

gain insight into customer preferences, and facilitate joint category planning

initiatives and potential collaborative promotions

• Checkers have re-positioned themselves to become

the supermarket of choice for the higher-income

shopper

‘Don’t change your lifestyle, change your

supermarket’

• Understand the Checkers brand positioning

• Collaborate to innovate on price to ensure a price perception of quality and value

• Work together to drive footfall by creating a differentiated and premium shopping

experience

• Explore new product offerings / listings to differentiate Checkers as an upper-end

shopping destination

• Shoppers are both a ‘top-up’ and monthly shopper

– frequency weighted towards doing a monthly bulk

shop

• Understand the Checkers trading cycles (mid month, month end etc.)

• Utilize shopper insights improving relevance of ranging / promotion

• Develop shopper-centric promotions as opposed to sales-centric promotions

• Participate in themed promotions targeted throughout the year

• With an increasing trend towards fresh food,

shoppers are making healthier food choices –

Checkers have upgraded their specialist

departments to increase appeal to higher income

urban professionals

• Look for opportunities to cross merchandise or cross advertise in these

departments

• Collaborate with their in-house category projects e.g. Wellness and Banting

Revolution

• Serving the community is integral to the Shoprite

Group positioning

• Align your promotions to the Checkers brand and shopper

• Collaborate on community initiatives and build an emotional connection to your

brand i.e. #Act for Change

Marketing at Retail Overview

Shopper

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• Online presence is growing and digital

communication platforms are used for

advertising, shopper engagement and

competitions

• Drive an omnichannel strategy, from smartphones to in-store

• Develop shopper-centric promotions as opposed to sales-centric promotions i.e.

targeted direct marketing via SMS or email – push notifications

• Increase shopper engagement through Facebook/Twitter competitions

• Marketing campaigns are simple but highly

effective, creating excitement through

innovative messages and mechanics

• Use Checkers pricing/promotional mechanisms e.g. till slips, combo/ bulk and free

deals, meal solutions etc.

• Participate in themed promotions targeted throughout the year e.g. Hey Days, Little

Shop, Black Friday, Back to School, SA’s biggest car giveaway etc.

• Participate in category specific promotions e.g. Personal Care, Pet Care, Baby,

Household appliance etc.

• Explore exclusive pack sizes and bundling opportunities for individual campaigns

• Support your promotion with advertising in print, radio, online and TV platforms

• EeziCoupons were discontinued end June

2017 and upgraded to a mobile app, offering

shoppers easy access to instant savings

• Collaborate with Checkers and gain valuable insights from the data

• Better data to drive insight into better

business decisions

• Understand the role of dunhumby and how to utilize their data

• Engage in category reviews, facilitated by dunhumby

• Value-added product offering and ranging

opportunities to improve the in-store shopper

experience

• Explore new product offerings to differentiate Checkers as an upper-end shopping

destination, building interest and variety through:

o Checkers value SKUs and smaller pack size opportunities

o Exclusive pack sizes and bundling opportunities

• Monitor and de-range slow sellers to increase forward share on better lines

• Attend Supplier Briefings • Relationship building and JBP opportunities

Marketing at Retail Overview

Marketing & Loyalty Drivers

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• Checkers is renowned for smart and relevant

innovation in value-added services, at the Money

Market and till-points, bringing shoppers the best in

‘one-stop’ shopping convenience

• Look for opportunities to cross merchandise or cross advertise with these

services

• Destination / ‘Famous For’ categories offer a

‘one-stop’ shopping experience – a signature

differentiation of the Checkers brand stores

• Understand the role of your category in-store (destination/convenience)

• Find out what the next focus categories are and where the innovation pipeline

lies

• Collaborate to improve ‘famous for’ categories in-store e.g. Baby

• Create a theatre of shopping experience that will build an emotional connection

with shoppers

• Increased focus on delivering value to customers

and margin to the business through extended

private label participation

• Collaborate with Checkers to participate in private label production

• Monitor developments across your categories

• Checkers build and maintain strong relationships

with a broad and diversified group of suppliers

• Contribute to savings in the value chain - be equipped with a sound commercial

argument and customer proposition

• All in-store POS is managed and installed by

ZaPOP

• Understand which POS is relevant in Checkers stores, and what ZaPOP

requirements are

• Consider mission based POS, introducing more cross category merchandising

in focus and ‘famous for’ categories e.g. fresh / wine / whisky / cheese / butcher

/ coffee / baby / household

• Support promotions with relevant and innovative in-store material that breaks

through the clutter

Marketing at Retail Overview

In-store Environment

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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| Marketing at Retail © 2018 | Page 24

INSIGHTS OPPORTUNITIES

• Expanding into new geographies through lower

LSM Usave container stores

Growth

• Expect tough buying, be equipped with well-supported fact-based

commercial arguments

• Use dunhumby data to better understand shopper trends and behaviour/

missions

• Explore product offerings / listings in this lower end market

• Collaborate to participate in private label production

Operations

• Investigate new pack size opportunity in smaller format Usave stores

• Investigate shelf-ready packaging, and other cost-saving solutions

• Look for collaborative opportunities to lower costs of distribution e.g.

backhauling

Shopper Marketing

• Use Shoprite pricing/promotional mechanisms – e.g. combo deals, airtime

inter alia

• Explore participation in themed promotions targeted throughout the year

• Explore exclusive pack sizes and bundling opportunities for individual

campaigns

• Give out product samples / information or provide meal solutions on social

grant pay-out days

• Understand which POS is relevant in Usave stores

Marketing at Retail Overview

Usave

Retailer Insights and Supplier Opportunities

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Pick n Pay GroupMarketing at Retail Overview

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Marketing at Retail Overview

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| Marketing at Retail © 2018 | Page 27

INSIGHTS OPPORTUNITIES

• PnP is committed to a ‘customer-focused, sales-led’

strategy, servicing the LSM 4 – 10 shopper

• Understand the PnP brand positioning and customer-centric approach

• Contribute to PnP’s strategy of bringing the shopper ‘a fresh customer

experience’

• Collaborate to grow PnPs LSM profile to drive footfall to PnP

• PnP is a diverse multi-format, multi-channel full

spectrum retailer

• Understand the different marketing requirements by region, by store / digital

format and shopper segmentation

• Connect with PnP Franchise directly

• Support roll-out of PnP Express with appropriate products / pack sizes for

forecourt convenience

• Evaluate opportunities in PnP’s venture into informal retail

• Better data to drive insight into better business

decisions

• Understand the role of 5One and how to utilize their data

• Leverage the opportunity to translate data into customer behaviour, category

and store-based insights

Marketing at Retail Overview

Shopper

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• Pick n Pay boasts the title of ‘leading online grocery

retailer on the African continent’ with continued

investment into its digital platform

• Drive an omnichannel strategy, from smartphones to in-store

• Develop shopper-centric promotions as opposed to sales-centric promotions

i.e. targeted direct marketing via SMS or email – push notifications

• Increase shopper engagement through Website and Social Media platforms

• PnP are focussed on everyday low pricing,

supported by a strong promotional calendar

• Use PnP pricing / promotional mechanisms e.g. combo / bulk and free deals,

airtime inter alia

• PnP Hypers are a good channel to test marketing campaigns and drive

volume

• Re-look the value that in-store promoters can bring

• Participate in collaborative promotions linked to Smart Shopper, and own the

broadsheet space

• Explore pallet deals to support stock on promotions

• PnP’s focus remains on inventory management and

range rationalisation

• Monitor and de-range slow sellers to improve forward share on better lines

• Explore new product offerings to differentiate, build interest and variety

through

o PnP value SKUs and smaller pack size opportunities

o Explore exclusive pack sizes and bundling opportunities for individual

campaigns

• Smart Shopper is considered SA’s biggest loyalty

programme, and regarded by PnP as a valuable

source of shopper insight

• Participate in Smart Shopper programme e.g. targeted voucher promotions

inter alia and gain invaluable insights from the data

• Attend Supplier Briefings • Relationship building and invaluable insights gained

Marketing at Retail Overview

Marketing & Loyalty Drivers

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• PnP build and maintain collaborative relationships

with a strong and diverse supplier base

• Contribute to savings in the value chain – be equipped with a sound

commercial argument and customer proposition

• Focus categories offer a ‘one-stop’ shopping

experience• Understand the role of your categories within PnP, and be well-informed with

appropriate market and brand/SKU performance insights

• Increased focus on delivering value to customers

and margin to the business through 3-tiered private

label participation

• Explore private label innovation and supply opportunities

• Monitor developments across your categories

• In-store POS is supplied and installed by Primedia,

• Understand which POS is relevant in PnP stores, and what Primedia

requirements are

• Consider mission based POS, introducing cross category merchandising

• Support promotions that are relevant and innovative in-store material that

breaks through the clutter

• PnP Retail Marketing (Media Services) provide one

point of contact and a one-stop solution to manage

supplier-brand-customer communication

• Partner and tap into this resource to provide campaign synergy across all

touch-points in the PnP store, and utilize the pre and post-campaign reports

to assist in informing strategies

• Explore innovative opportunities as a collaborative team

Marketing at Retail Overview

In-store Environment

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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| Marketing at Retail © 2018 | Page 31

INSIGHTS OPPORTUNITIES

• Cohesive, deeply experienced leadership team

– traders at heart

• Expect tough buying, so be equipped with well-supported fact-based

commercial arguments, as limited range offering results in challenges

to balance basket margin as well as limiting the number of supplier

products that can be listed

• Maximise cross-functional relationships

• Reported success of discount supermarket store

format, and deep understanding of its shoppers

and communities

• Understand the Boxer positioning and community appeal

• Investigate joint community engagement and upliftment programmes

• Brand Audits, shopper interviews, and social

media surveys provide key insights to drive

strategic direction

• Understand Boxer regional and shopper profile nuances, applying

appropriate ranging strategies

• Understand the role of your categories and be well-informed with

appropriate market and brand/SKU performance insights

• Brand equity built through relevant and

collaborative promotional campaigns

• Take advantage of Boxer’s knowledge and understanding of its

shopper, collaborating to design relevant shopper campaigns, to grow

LSM 1 – 7 shopper profile

• Explore participation in national themed campaigns

• Explore promotional combos, value deals and bulk pack opportunities

• Take advantage of increased footfall in store at peak trading times

during the month

• Increased customer engagement through mobile

app and digital / social platforms• Utilize all shopper touchpoints available, from smartphones to in-store

Marketing at Retail Overview

Shopper, Marketing & Loyalty Drivers

Retailer Insights and Supplier Opportunities

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INSIGHTS OPPORTUNITIES

• Strong portfolio of private and confined label on

shelf• Explore private label innovation and supply opportunities

• Tight cost management, reduced stock holding

at store level and better waste management

• Get the basics right

• Look for collaborative opportunities to lower costs e.g. backhauling,

Boxer’s ‘green’ reverse logistics programme inter alia

• In-house merchandising impacts on access to

and influence of the shop shelf• Maximise cross-functional relationships

Marketing at Retail Overview

In-store Environment

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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| Marketing at Retail © 2018 | Page 34

INSIGHTS OPPORTUNITIES

• The need for community retailing is important for

SPAR, on targeted innovations / initiatives to

drive loyalty and upliftment, to bring back

SPAR’s LSM 7 & 9 customers and grow LSM 6

• Understand the My SPAR positioning and community appeal

• Understand the different marketing requirements

by region and by cluster

• Understand both the target and actual shopper of SPAR nationally and

regionally

• Work strategies to attract the target shopper, and retain the actual

shopper

• Collaborate to grow SPAR’s LSM 9 & 10

• Use the SPAR Insights tool for category and

cluster planning

• Use SPAR as an opportunity to reach lower LSM and rural consumers

• Develop exclusive pack sizes to cater to retailer target markets across

all store formats

• Work with the catman team to achieve optimal

shelf layouts • Share shopper insights with SPAR catman

• Men are shopping more frequently • Align marketing initiatives to include the lucrative male shopper

• Shopper solutions need to appeal to both men and women

• SPAR shoppers are techno savvy • Participate in My SPAR Rewards and SPAR Text Me programmes

• SPAR Shoppers are predominantly under 35• Work with SPAR to understand the shopper age profile to target each

age group using appropriate communication tactics

Marketing at Retail Overview

Shopper & Community

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

Marketing & Loyalty Drivers

INSIGHTS OPPORTUNITIES

• Participate in special promotions i.e. SPAR

Win a Car, Birthday and Green Tag

promotions

• Look for opportunities for additional promotions – at a national and/ or store

level

• Understand additional channels of

communicating promotions such as social

media, website and Savour online magazine

• Align promotions with SPAR values of family and balanced healthy lifestyle

• Participate in the different touchpoints used by SPAR to create a

personalised engagement with shoppers, enhancing recognition purchase

and loyalty building e.g. social media, mobile apps, online shopping etc.

• Investigate promotional opportunities such

as ‘win a braai’, ‘win a bicycle’ etc.• Approach stores with competitions that require customer engagement

• Use the promotional mechanics of straight

pricing and multi-buys

• Co-branded or category specific leaflets for example Made to Match food &

wine leaflet

• Support promotions with TV, print or radio

advertising • Co-branding on school or community events

• Participate in promotions driving the change

in shopper price perception

• Understand SPAR pricing mechanics and ePOS capability to adapt

accordingly and ensure margin growth

• Investigate opportunities of SPAR Rewards

• Involvement with SPAR Rewards programme and/or store specific loyalty

initiatives

• Make use of targeted marketing avenues, such as emailers or magazine

editorials

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

In-store Environment

INSIGHTS OPPORTUNITIES

• Know which stores are being refurbished /

modernised e.g. SPAR Naturals

• Ensure a close relationship with SPAR to identify opportunities to

emphasise your products within modernised stores

• Work with SPAR to ensure effective category planning to support faster,

easier and better shopping experiences

• Understand the different store formats and

clusters, and which POS is relevant

• For focus categories use signage to create a store-within-a-store

experience and generate hype and excitement around the category. For

example use category banners to block off the confectionery aisle and give

a candy store feel

• Understand the role of your category in

store (destination/convenience/core

category)

• Develop an innovative campaign to encourage purchase of fresh products

alongside your products

• Work together with SPAR to improve the range offered and merchandising

specifically to improve the shopping experience i.e. as meal solutions and

help-me-choose banners to break through the clutter and get retailer

support

• If your product is not a growth or focus category, cross merchandising can

used to piggy-back on focus categories

• If you sell across multiple categories, cross-category promotions can be

suggested and implemented

• Support promotions with in-store material• Cross merchandise with Fresh categories – butchery, deli & fresh produce.

Use FSUs or self-dispensing hanging units

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

In-store Environment

INSIGHTS OPPORTUNITIES

• Understand the #SKUsmustfall campaign

• Understand the different players in the SPAR market ensuring the best

product in value and size, is offered at the best price in the best store

format e.g. SKUs tailored for different formats, with a focus on

smaller/convenience packs for these formats

• Explore opportunities to engage in formal

joint business planning across the supply

chain

• Engage with all three touch-points – head office, DC and store – know who

is responsible for what and the points of influence

• Do not adopt a ‘one size fits all’ strategy to promotions

• Work with SPAR who knows its target market best

• Private label supply opportunities

• Collaborate with SPAR to participate in private label product offering

• If no private label participation, innovate in order to keep share from private

labels, build brand trust in the lower LSMs

• Offer value to target consumers that is over and above straight pricing

• SPAR offers a range of value-added

services and have become one-stop-shops

for groceries, paying bills, transferring

money etc.

• Look for opportunities to cross merchandise or cross advertise with value-

added services

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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| Marketing at Retail © 2018 | Page 39

INSIGHTS OPPORTUNITIES

• WSA is committed to retaining current

customers and actively acquiring new customers

in the LSM 8 – 10 segments to increase

penetration and spend

• Understand the WSA’s brand positioning and customer-centric

approach

• The WSA customer base (+11 million), is the

Group’s largest stakeholder base and its main

source of revenue

• Take advantage of WSAs knowledge and understanding of its

customer to drive relevant personalised interactions with shoppers

• Share your category expertise and knowledge

• Investigate ways to be represented and involved in the in-store “food

• experience”

• • Explore collaborative promotional combo deals and value deals to

drive volume

• e.g. WSA roast chicken and Coca-Cola

• Enhanced digital platform, with Woolies app

sporting in-app shopping 24/7

• Drive an omnichannel strategy, from smartphones to in-store

• Develop shopper-centric promotions as opposed to sales-centric

promotions i.e. targeted direct marketing via SMS or email – push

notifications

• Increase shopper engagement through Website and Social Media

platforms

• Offering predominantly private label products –

90% of store is WSA Private Label

• Build strong relationships and ensure your product is represented

• Explore private label innovation and supply opportunities

Marketing at Retail Overview

Shopper, Marketing & Loyalty Drivers, In-store Environment

Retailer Insights and Supplier Opportunities

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Marketing at Retail Overview

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| Marketing at Retail © 2018 | Page 41

INSIGHTS OPPORTUNITIES

• Clicks targets shoppers in the growing middle to

upper LSM markets i.e. LSM 6 – 10.

• Profile depends on where the store is located

• Shopper is predominantly female (60%), but the

male shopper segment is growing

• Understand the Clicks brand positioning and customer-centric approach

• Capitalise on growth of households in SA (general merchandise range)

• Investigate growth of destination categories like baby care, wellness and

haircare, and participate

• Enhanced digital platform, with Clicks app and virtual

ClubCard applications to compliment the in-store

experience

• Drive an omnichannel strategy, from smartphones to in-store

• Develop shopper-centric promotions as opposed to sales-centric promotions

i.e. targeted direct marketing via SMS or email – push notifications

• Increase shopper engagement through Website and Social Media platforms

• Well received promo mechanics driving customer

price perception and loyalty

• Use Clicks pricing/promotional mechanisms e.g. value offerings such as Mix

and Match, 3-for-2, BOGOFs

• Participate in themed promotions targeted throughout the year

• Participate in category specific promotions e.g. Personal Care, Health and

Beauty, Baby etc.

• Participate in collaborative promotions and own the broadsheet space

• Strong and growing ClubCard loyalty programme - is

trusted, and drives customer behaviour and attracts

supplier trade spend

• Investigate ClubCard / Baby Club marketing opportunities for targeted activity

• Collaborate with Clicks and extract insights for better informed marketing and

ranging decisions, and facilitating targeted SMS/email marketing campaigns

• Private-label, franchise and exclusive brands are

trusted by customers and used strategically to

entrench product differentiation, drive higher

margins, increase market share and reduce costs

• Explore private label innovation and supply opportunities

• Monitor developments across your categories

Marketing at Retail Overview

Shopper, Marketing & Loyalty Drivers, In-store Environment

Retailer Insights and Supplier Opportunities

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| Marketing at Retail © 2018 | Page 42

Prepared by:

Adrienne Osberg | Retail and Shopper Marketing Analyst