Uncovering the shopper journey to gain the edge at retail

Pat McCann

June 2007

Retail is the New Frontier.

‘’The impact of brand-name marketing and traditional advertising is diffuse now because we all absorb so much of it. The role of merchandising has never been greater……..

Products now live and die by what happens

on the selling floor.”

Paco Underhill

‘’The impact of brand-name marketing and traditional advertising is diffuse now because we all absorb so much of it. The role of merchandising has never been greater……..

Products now live and die by what happens

on the selling floor.”

Paco Underhill

3Date

Retail and Shopper Insights and

The Shopper Journey

4

The Shopper Journey

Brand Equity Pre-Disposition

Brand Equity Pre-Disposition

Transaction Seals Purchase decision

Transaction Seals Purchase decision

Shopper type

Type of occasion

State of mind

Channel choice

Pre-planning

Retailer choice

Retailer experience

Store layout

Store dynamics

Store atmosphere

Shopping style

Shopping basket

Shopping route

Shelf layout

Signage

Promotions

Pack standout

Consumption experience feeds back into brand

equity

Consumption experience feeds back into brand

equity

PRE-STORE

STORE

P.O.P.

Pack communication

In-store advertising

Propensity to purchase a brand can potentially be

impacted at each stage of

this journey

Propensity to purchase a brand can potentially be

impacted at each stage of

this journey

Along the journey, several

“moments of truth” or

success/failure points exist for a brand

Along the journey, several

“moments of truth” or success/failure points exist

for a brand

5

The Shopper Represents the Consumer at Retail

Brand Equity Pre-Disposition

Brand Equity Pre-Disposition

Transaction Seals Purchase decision

Transaction Seals Purchase decision

Shopper type

Type of occasion

State of mind

Channel choice

Pre-planning

Retailer choice

Retailer experience

Store layout

Store dynamics

Shopping style

Shopping basket

Shopping route

Shelf layout

Signage

Promotions

Pack standout

Pack communication

In-store advertising

Research by

Consumer

Experts

Research by

Consumer

Experts

Research by

Shopper

Experts

Research by

Shopper

ExpertsStore atmosphere

Consumption experience feeds back

into brand equity

Consumption experience feeds back

into brand equity

Propensity to purchase can potentially be

impacted at each stage of journey

Propensity to purchase can potentially be

impacted at each stage of journey

Defining - Shopper Insights

Shopper insights is consumer learning that can be applied to improve equity, sales and profitability of a brand, category or store through consumer-centric changes to the retail environment and its messaging.

Maximising Retail

Strategy

In-Store Marketing Activation

Driving

Customer Partnership

Synchronising Brand Equity &Retail Delivery

There are 4 ways in which retail and shopper insights can make an important contribution to your business

TNS specialist strengths will ensure that this contribution is significant and help you win at retail

How can Retail and Shopper Insights contribute to your

business?

8

Maximising Retail StrategyMaximising Retail Strategy

Channel strategy

Tracking changing retail landscape

Identifying alternative, non traditional and emerging channels

Cross channel optimisation

Customer strategy

Customer collaboration strategy

Maximising specific customer opportunities

Developing effective customer specific

business plans

9

Brand Retailer

In-Store Marketing ActivationIn-Store Marketing Activation

Pack – Shelf Impact & communication

Price – Regular& promotional pricing

Ads and Circulars

Promotions - Messaging & communication

Displays – Location and effectiveness

Assortment

Plan-o-gram or Shelf Set Management

Fixtures, Signage and Store Design

Execution

Brand Management CategoryManagement

RetailManagement

To implement strategy and win at retail, in-store activation is crucial

Activating right levers and applying them effectively will maximise purchase

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Importance of Brand Power in Market suggests brand owners need to optimise…….

allocation of marketing budget across Above/Below the Line including retail

brand performance by developing synergy between brand equity and retail delivery

brand communication strategy by focusing on shopper as well as consumer needs

Brand power in the market

Brand power in the mind

Brand Purchase Decision

Synchronising Brand Equity and Retail DeliverySynchronising Brand Equity and Retail Delivery

Dual aspectsof brand equity

Dual aspectsof brand equity

Driving category growth in partnership with

customers

Helping customers to develop better relationship with shoppers

Assist customers to understand and improve the shopping experience

Improve connections between shopper needs and retail activation

Creating innovative category strategies

Showing brand loyalty leads to retail loyalty ShopperShopper

CustomerCustomerCategory/

Brand

Category/Brand

CollaborativeCategory

Development

CollaborativeCategory

Development

Driving ‘Customer’ PartnershipDriving ‘Customer’ Partnership

TNS Retail and Shopper Insights

Introducing

Annual Global Consumer Sector Summit 2007

In-store marketing

Brand Equity

Retail

Strategy

Purchasingbehaviour

TNS Retail and Shopper InsightsOffer 4 Specialist Strengths

14

PurchasingBehaviourIn store

Marketing

RetailStrategy

BrandEquity

These combined strengths

form TNS’ Unique Shopper offer

No one else has as deep or broad combined offering - Globally

15

Introducing TNS Retail Forward Retail Growth Consultants

Forward thinking retail consultancy

Create strategies for profitable growth

Business intelligence and strategic perspectives on retailing

16

Introducing TNS Sorensen

‘the in-store research company®’

In-store research specialists for 35 years

Unique level of retail understanding

Unparallelled experience of shopping behaviour

HeavyTraffic

Light

Traffic

17Date

TNS Tools to uncover

the Shopper Journey

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Tablet PC

TNS Retail and Shopper Insights toolsShopper observation via innovative data collection

Paper & pencil

Video

People Counters

RFID PathTracker®

Eye Tracking

Ethnographic Video

Statcam

PDA

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TNS shopper expertsTools to uncover the Shopper Journey

Brand Equity Pre-Disposition

Brand Equity Pre-Disposition

Transaction Seals Purchase decision

Transaction Seals Purchase decision

Shopper type

Type of occasion

State of mind

Channel choice

Pre-planning

Retailer choice

Retailer experience

Store layout

Store dynamics

Shopping style

Shopping basket

Shopping route

Shelf layout

Signage

Promotions

Pack standout

Pack communication

In-store advertising

Store atmosphere

PRE-STORE

STORE

P.O.P.

TNS TOOLS

Shopping Mission/ Needstate Study

PathTracker® Store Optimiser

Brand Purchasing Study

Retail Brand Alignment study

Purchase Decision Study

Learning Lab

Controlled Store Test

Shelf Impact Test

Virtual Shopping/Shelf Test

Bonsai Test Market

Observation/Ethnography

In-Store Qualitative

TNS TOOLS

Shopping Mission/ Needstate Study

PathTracker® Store Optimiser

Brand Purchasing Study

Retail Brand Alignment study

Purchase Decision Study

Learning Lab

Controlled Store Test

Shelf Impact Test

Virtual Shopping/Shelf Test

Bonsai Test Market

Observation/Ethnography

In-Store Qualitative

TNS tools cover the whole

shopper journey

TNS tools cover the whole

shopper journey

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Retail and Shopper Insights ProcessBeyond the Shopper Journey

Solution Testing

Implement, monitor

Customer Involvement

TNS covers the whole retail and shopper insights process including testing, implementation of solutions and end-to-end Consultancy.

Retail strategy projects typically cover entire process

Shopper Journey

21Date

TNS Tools to

Address the Key Business Issues

22

For Pre Store – Shopping Mission/ Needstate Study

Summary: Segmentation of shopping occasions (missions) and category purchasing occasions (needstates) based on behaviour and motivations

Objective: To understand different types of trip and category needstate and their impact on behaviour and category purchase decision

Benefit: Create needstate or mission-based layout, communication and input to marketing strategy

Pre Store

Shopping mission/ needstate

Shopping Needstates

In-home/on line

Segments both shopping occasion (trip) and category purchasing occasion by motivation and basket type.

Accompanied shop/ shopalong

Qualitative integral to category needstate study

Emotive insights

23

For the Store – Store Management Study: PathTracker®

Summary: Suite of tools to observe shopper flow and response to category merchandising

Objective: Measure time spent, location, direction facing, items passed,/examined/ purchased

Benefit: Design more effective store/ impactful category merchandising

Dwell Density

Traffic Flow

Store

PathTracker® Methods

RFID PathTracker®

Full store management tool

Audit PathTracker®

Less comprehensive

Video/Person PathTracker

Small stores or category focus

Data Mining

Analysis existing PT data

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For Category at P.O.P. – Purchase Decision Study

P.O.P.

Summary: For category managers to understand shopper behaviour and attitudes at POP

Objective: To understand category purchase decision hierarchy, drivers/motivations, shopability, shelf behaviour

Benefit: Improve category conversion through active category management strategies

Purchase Decision Study

Purchase decision study method

Observation, Video Ethnography, Intercept and interview.

Understand shopper needs/priorities and at shelf behaviour.

Actively identify ways of improving category management and brand/ category conversion.

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For Brand at P.O.P – Brand Purchasing Study

Summary: To assess impact of brand commitment on in-store behaviour/ response to competitor activities

Objective: Understand role of brand power in mind/ brand power in market on in-store purchasing decision

Benefit: Devise in-store communication strategies to reinforce brand equity/ improve retention of purchasers

Brand Purchasing Study

methods

In-store Brand Purchasing study

Understand brand commitment, brand purchasing and reactions to in-store environment

Accompanied shop/ shopalong

Sub-conscious and visual aspects of brand purchasing

Emotive Insights

Projective techniques to identify shopper emotions associated with brand purchase

P.O.P.

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For entire Shopper Journey – In-Store Qualitative

Summary: Deep understanding shopper journey: implications for brand/category communication

Objective: Understand behaviour, purchasing barriers/triggers, in-store levers, emotions, visual category language, sub-conscious factors. Provide contextual story/ quantitative input

Benefit: Ensure retail environment reflects optimal visual and emotive communication to maximise brand/category purchase

Qualitative Methods

Accompanied shop/ shopalong

Walk & Talk Workshop

Mini group discussion on-the-go

Retail Documentary

Shopper commentary on eye tracking

Qualitative Intercept

Ethnography

Deep observation

4-Sight Conference 20064-Sight Conference 2006

Provide quick real-world feedback on any in-store issue

Design more effective store/ more impactful

category merchandising

Evaluate pack /P.O.S. in real-world

setting to prevent costly errors….

Determine

ROI on in- store

initiatives

TNS tools to…

Align in-store delivery/ communication with

brand promise

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Why TNS Retail and Shopper Insights?

����Unique in-store brand equity solutions

����Deep experience/validation shopper behaviour

����Understanding of retailers/retail environment

����Powerful PathTracker store optimiser tool

����Emotive aspects of shopper journey

����Holistic understanding of shopper/ consumer

����Global reach, local expertise

����Leading edge observation/analysis technology

Uncovering the shopper journey to gain the edge at retail

Thank you