Shopper trends introduction (with hyper example)

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Shopper Trends Introduction Winning Brands Foresight

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Transcript of Shopper trends introduction (with hyper example)

Page 1: Shopper trends introduction (with hyper example)

Shopper Trends Introduction

Winning Brands Foresight

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Agenda

• Business issues addressed by Winning Brand Foresight for Retailers (via Shopper Trends)

•What is WBF and how it works?

•How WBF is applied? Case Study

•Where can you get support to run a WBF for Retailers?

•Q&A

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Business Issues Addressed

Delivers store foresightStore Threat: Is your store likely to be resilient or decline in the

face of strong competitive activation? What is the threat potential for your store?

Store Opportunity: What stores have strong growth potential – those that have the potential for the highest returns on investment?

Prioritizes Store ActionWhere should you focus your marketing attention – on

combating the threat potential or capitalizing on the opportunity/potential? Should you focus on retention or attraction?

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Should the store be driving its quality of

awareness?

Strategic : Salience

Strategic : Store Associations

How should the store be positioned?

Strategic : Competitive Focus

What competitive stores should you focus on to prevent defection or

induce switching?

Tactical : Targeting

How will you reach your consumer profile? What is their demographic profile?

Tactical : Shopping Modality

What activates store choice for your target shoppers? What are their shopping

behavior?

Maps strategic and

tactical plan for

driving attraction/

retention

Business Issues Addressed

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Within the dynamic competitive environment…

Are shoppers switching towards your store or defecting away from your store?

Are your shoppers beginning to feel disillusioned with your store and getting attracted to competitive stores?

STORE A

competitor b

competitor c

Are shoppers diffusing towards our store or away from it?

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shoppers may visit your store, but not be emotively

bonded to it

shoppers may not visit your store, but are attracted to it

…they create defection pressure

…they create draw pressure

Keep visiting it out of habit but I don’t love it

I don’t like it but I am waiting for something different to come along closer to home

I like store x but it’s a bit far away

THREAT OPPORTUNITY

Behavioral and emotive bonding are occasionally not in sync

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Reluctant

THREATAre there a lot of Tenuous

shoppers? - they exert Defection pressure

GROWTHAre there a lot of Attracted

shoppers? - they exert Draw pressure?

Bonded

Attracted

Regular shoppers

How many shoppers are Bonded, Tenuous, Attracted and Reluctant towards your store? Bonded

Attracted

Tenuous

Store Equity

Beh

avio

ral C

om

mit

men

t

HiLo

H iL o

PreferenceAdvocacyWilling to pay price premiumWillingness to travel

What is our store’s relationship with shoppers?

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shopping modality

omega shoppers

• Habitual shoppers• Do not experiment by

trying new stores

delta shoppers

• Open to new information• Experimental - try new stores • Influenced by buzz / advertising• Attracted by promotions

Shoppers exhibit differences in their willingness to experiment across different stores and can be segmented as omega and delta shoppers

…delta shoppers are most likely to switch

..not all Tenuous and Attracted shoppers are equally likely to switch

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delta

tenuous

delta

attracted

Tenuous Delta shoppers

Attraction

Attracted - Delta shoppers

The size of the Delta segment within the tenuous and attracted shoppers represents the threat and attraction potential

How many of your store’s Delta shoppers are bonded to it?

THREAT POTENTIAL GROWTH POTENTIAL

Retaining Switchers

Are the switchers likely to be retained?

What is the immediate threat / opportunity potential for our store?

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THREATPOTENTIAL Ratio :

Tenuous Delta / Regular shoppers

Which store is likely to get the biggest bang for its buck if it stepped up its investment?

GROWTHPOTENTIAL

Propensity to attract

Is the store likely to be resilient or decline in the face of aggressive competitive activity?

Propensity for defection

Propensity to retain switchers

Ratio :Bonded Delta /Regular Delta shoppers

Ratio :Attracted Delta / Non - regular shoppers

What is the immediate threat /growth potential for our store?

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Bonded

Reluctant

Beh

avioral C

om

mitm

ent

Store Equity HiLo

Hi

Lo

Tenuous

DEFENDand drive equity

Regularly shop at your store but are not

emotively bonded

REINFORCE your resilient source of profitability

• Regularly shop at your store• Love your store / recommend

it• Willing to travel

• Willing to pay a price premium

LOW PRIORITY

No behavioral or emotive bonding

TARGETand drive switching

Attracted to your store but are not behaviorally

committed

Attracted

What are the strategic implications?

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Which stores are more likely to decline in the face of strong competitive activity?

• Retailer E & Retailer F have the highest threat potential.

(indexed to market average)

Threat Potential

STORE EQUITY INDEX

0.5

0.7

1.2

3.2

3.5

1.5

0 1 2 3 4 5

Retailer F

Retailer E

Retailer D

Retailer C

Retailer B

Retailer A

THREAT POTENTIAL

Retailer A 70

Retailer B 100

Retailer C 117

Retailer D 111

Retailer E 178

Retailer F 135

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Attraction Potential

Retaining Switchers

GROWTH POTENTIAL

Retailer A 153 140 143

Retailer B 192 98 120

Retailer C 94 84 86

Retailer D 105 72 80

Retailer E 94 10 30

Retailer F 43 63 58

Growth Potential

(indexed to market average)

What stores are likely to drive their share the most if they were to step up their investment / marketing activity?

• Compared to Retailer A, Retailer B has a stronger potential to attract new shoppers, but is relatively weaker at retaining them.

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Brand Behavioral | Emotive Relationship

4

8

10

30

37

7

7

19

31

23

13

29

27

26

26

23

77

63

46

43

13

17

1

21

0% 20% 40% 60% 80% 100%

Retailer F

Retailer E

Retailer D

Retailer C

Retailer B

Retailer A

Bonded Tenuous Attracted Reluctant

Store Behavioral | Emotive Relationship

38%

68%

51%

Store Equity Index

0.5

0.7

1.2

3.2

3.5

1.5

0 1 2 3 4 5

Retailer F

Retailer E

Retailer D

Retailer C

Retailer B

Retailer A

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43

43

37

41

42

43

10 15 20 25 30 35 40 45 50

Retailer F

Retailer E

Retailer D

Retailer C

Retailer B

Retailer A

% Delta shoppers among regular shoppers

% Delta shoppers among non -regular shoppers

39

39

40

37

35

37

10 15 20 25 30 35 40 45 50

Retailer F

Retailer E

Retailer D

Retailer C

Retailer B

Retailer A

Delta Profile : Regular shoppers / Non shoppers

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• Should we focus our attention on defending against defection or on attraction? Threat Attraction FOCUS

High Low DefendHigh Med DefendHigh High Defend & AttractLow Low Attract Low Med AttractLow High AttractMed Low DefendMed Med Defend & Attract Med High Attract

What strategic focus areas should we conduct the drill down analysis on? Need to focus marketing thrust preferably on one key imperative!

If Threat is High, then Retaining switchers will be low, since they are likely to be the inverse of each other and vice versa. If Threat and Retaining switchers is an issue, then focus on Defending Defection.

Internal Use only

How do we pick what strategy to focus on?

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Threat Potential >Growth Potential

REDUCE DEFECTION THREAT

Focus on driving emotive bonding among regular shoppers

Threat Potential : Average

Attraction Potential : Average

Retaining Switchers :Average

Strategy Focus : Next Step

MANTAIN your MANTAIN your resilientresilient

source of profitabilitysource of profitability

Bonded

Reluctant

Beh

avioral C

om

mitm

ent

Store Equity HiLo

Hi

Lo

Tenuous

DEFENDDEFENDand drive equityand drive equity

TARGETTARGETand drive adoptionand drive adoption

Attracted

LOW PRIORITYLOW PRIORITY

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Where should attention be focused to prevent defection?

TARGET Tenuous

Strengthen emotive bonding to prevent defection

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Strategic: Salience

Strategic: Store Associations

Strategic: Competitive Focus

Tactical: Shopping Modality

Tactical: Targeting

Spontaneous Store Awareness: Bonded vs. Tenuous or Attracted

Store Associations: Bonded vs. Tenuous or Attracted

Cross Store Affinity: What stores are they likely to defect to? Cross Store Usage: What stores should we induce switching from?

Shopping Modality Store selection triggers, Promotional sensitivity, Price awareness, Planned shopping trips, Browsing behaviour, Shopping pleasure, Private label awareness & purchase & Categories purchased at modern trade

Consumer Profile Household profile, Education, Grocery shopping role & Marital status

Strategic & Tactical Roadmap

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• For example, as would be expected, Tenuous have a lower spontaneous awareness compared to Bonded shoppers.

• However the gap in spontaneous awareness across the 2 segments is similar to the market average. Therefore it is not critical to strengthen the quality of awareness among the Tenuous.

Spont Awareness - For Example

98

81

0 10 20 30 40 50 60 70 80 90 100

Tenuous

Bonded

Market average 0.82

Tenuous / BondedSpont Awareness Ratio

0.83

Is low store saliency contributing to the defection propensity?

Spontaneous Store Awareness : Bonded vs. Tenuous

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The gaps in store image between the Bonded and Tenuous reveal where attention needs to be focused to prevent the Tenuous shoppers from switching to competitive stores

– Convenient to get to– Close to home

– Everything I need in one store– Wide product range and

variety

– Well presented display of products

– Easy to find what I need

– Low prices for most items– Good value for money– Attractive promotions

What image levers need to be moved to prevent defection?

What image levers need to be moved to prevent defection?

Strengthen CoverageStrengthen Coverage

Improve Layout Improve Layout

Execute aggressive price / promotion

strategies

Execute aggressive price / promotion

strategies

IMPLICATIONS

PRIMARY FOCUS

Widen AssortmentWiden Assortment

SECONDARY FOCUS

Store Associations : Bonded vs. Tenuous

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Store Associations : Bonded vs. Tenuous

0 20 40 60 80

Bonded Tenuous

Convenient to get to

Close to home

Low prices for most items

Good value for money (groceries)

Attractive promotions

Good own stores

Easy to find what I need

Staff provide good service

Has loyalty programs

Ease of parking

Efficient checkout counters

0.40

0.40

0.22

0.22

0.21

0.11

0.26

0.16

0.16

0.12

0.09

0 0.2 0.4 0.6

IMPORTANCE

Sto

re

Ac

ce

ss

ibility

Pric

e

VF

M

Effic

ien

cy

/ L

oy

alty

Pro

gra

m

Bran

d P

erform

ance (T

op

Bo

x) in %

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Store Associations : Bonded vs. Tenuous

0 20 40 60 80

Bonded Tenuous

Everything I need in the one store

Well presented display of products

Wide product range and variety

Always have what I want in stock

Modern and comfortable store

Spacious

Better selection of high quality stores

Clean and hygienic store

Good range of fresh products

Good quality instant cooked foods

High quality fresh food

0.22

0.18

0.18

0.17

0.15

0.13

0.12

0.15

0.13

0.13

0.09

0 0.2 0.4 0.6

IMPORTANCE

La

rge

sto

re fo

rma

t / w

ide

se

lec

tion

Qu

ality

pro

du

cts

Bran

d P

erform

ance (T

op

Bo

x) in %

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Critical FocusSecondary Focus

Convenient to get toClose to homeEverything I need in the one storeWide product range and varietyWell presented display of productsEasy to find what I needLow prices for most items

Good value for money (groceries) Attractive promotions

Always have what I want in stockSpacious

Ease of parkingGood quality instant foodsBetter selection of quality stores

Clean and hygienic storeHigh quality fresh foodStaff provide good serviceEfficient checkout countersGood range of fresh productsHas loyalty programs Modern and comfortable storeProvides good own stores

Average Importance Score

MIN Gap Line = Minimum Gap + Range/3 where Range* = Maximum Gap – Minimum Gap

MAX Gap Line = Maximum Gap – Range/3 where Range* = Maximum Gap – Minimum Gap

* Only consider positive gap values when calculating range

Store Associations : Bonded vs. Tenuous

Gap in Image (Bonded vs. Attracted)

IMP

OR

TA

NC

E

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Critical FocusSecondary Focus

Convenient to get toClose to homeEverything I need in the one storeWide product range and varietyWell presented display of productsEasy to find what I needLow prices for most items

Good value for money (groceries) Attractive promotions

Strengthen Coverage

Widen Assortment

Improve Layout

Execute Aggressive Price/Promotion Strategies

Store Associations : Bonded vs. Tenuous

Gap in Image (Bonded vs. Attracted)

IMP

OR

TA

NC

E

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What stores do the Tenuous have a strong affinity interaction with?

• Retailer A and Retailer B are the leading hypermarket chains.

Cross Store Affinity : What stores are they likely to defect to?

(indexed to overall affinity share for each competitive store)

CROSS BRAND AFFINITY

Retailer A 108

Retailer B 102

Retailer C 81

Retailer D 71

Retailer E 56

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– Are experimental (like to try different stores)

– Scan newspapers / flyers for attractive deals and choose the store with attractive deals

– Actively look out for promotions while shopping

– Notice and purchase private labels

– Shopping trip is less pre-planned

– Enjoy shopping

What are the shopping modality

dynamics of the Tenuous

segment?

What are the shopping modality

dynamics of the Tenuous

segment?

Need to be kept engaged with attractive yet functional layout, engaging promotions and wide assortment

Need to be kept engaged with attractive yet functional layout, engaging promotions and wide assortment

IMPLICATIONS

Execute long rolling, attractive promotions that are well advertised in newspapers / flyers

Execute long rolling, attractive promotions that are well advertised in newspapers / flyers

Offer good quality store brands as an alternative to manufacturer brands

Promote / advertise store brands and display them prominently

Offer good quality store brands as an alternative to manufacturer brands

Promote / advertise store brands and display them prominently

Less pre-planned shoppers who enjoy shopping are more easily influenced by in-store triggers.

Entice shoppers to increase spend resulting from impulse purchase through exciting layouts and wider assortments

Less pre-planned shoppers who enjoy shopping are more easily influenced by in-store triggers.

Entice shoppers to increase spend resulting from impulse purchase through exciting layouts and wider assortments

Shopping Modality

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Shopping Modality : What triggers are activating store choice?

Store Selection Triggers (Past 4 weeks)

All modern trade shoppers

Tenuous

I just went to the closest store 80 82

I shopped at the same store I always do 61 41

I shopped at a store that a colleague, friend or relative had recommended 10 9

I checked the newspaper or flyers for coupons and went to the store with the attractive deals 36 48

I chose the store that I'd seen advertised recently 10 9

I heard of a new store and decided to try it 13 13

I was visiting friends/ family and went to a store that they usually shop at 10 9

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Promotional Sensitivity

All modern trade

shoppersTenuous

I change stores based on which one I think has the best promotions that trip

18 20

I very seldom change stores, but when shopping, I actively search for promotions

25 30

I regularly buy different stores because of promotions 10 10

I only buy promotions when I already like the store 22 22

Promotion rarely change my store choices 24 19

Shopping Modality : Promotional Sensitivity & Price Awareness

Price Awareness

All modern trade

shoppersTenuous

I know all the prices of the grocery items I buy regularly 30 31

I know the prices of most of the items and always notice when the price changes

31 28

I don't necessarily know all the prices but I generally notice when the price changes

27 29

I don't know about or notice the prices of grocery items 11 12

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Shopping Modality : Planned shopping and Browsing Behavior

Planned Shopping Trip

All modern trade

shoppersTenuous

I usually plan what I want to buy and never buy additional items

4 2

I usually plan what I want to buy, but sometimes buy additional items

34 29

I usually plan what I want to buy, but always buy additional items

35 37

I usually do not plan what I want to buy before I shop 27 31

Browsing

All modern trade

shoppersTenuous

I like to take my time, and browse all parts of the store 18 17

I go up and down all the aisles, and pick up items I want when I see them

25 24

I generally know which parts of the store have the items I want, and just visit them

31 32

I know what I want, and go straight to where is, and get out as quickly as possible

26 27

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Shopping Modality : Shopping Pleasure & Private Label Disposition

Shopping Pleasure

All modern trade

shoppersTenuous

I really enjoy shopping 19 24

I like shopping 58 63

Shopping is a chore but is not a difficult one 12 5

I quite dislike shopping 11 8

I really hate shopping 1 0

Private Label Awareness & Purchase

All modern trade

shoppersTenuous

Spontaneously awareness of private label stores 62 81

Purchased private label store in past 4 weeks 45 65

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• To keep the Tenuous shoppers engaged, increase focus on fresh food, ice cream and milk powder.

• Wide product range, better quality, attractive promotions and engaging layout in these categories can help prevent defection.

Shopping Modality : Categories purchased at modern trade

Buy category most often at modern trade

All modern trade shoppers(%)

Tenuous

Fresh fruit & vegetables 12 125

Fresh meat or chicken 19 111

Fresh fish or seafood 16 138

Carbonated soft drinks 22 118

Ice Cream 14 129

Biscuits 48 108

Milk Powder 19 121

Instant Coffee 56 98

Savoury snacks 25 112

Laundry Detergent 87 97

Shampoo 86 97

Moisturizer 65 98

(Indexed to all modern trade shoppers)

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High (Focus)

Average (No skew)

Low (Avoid)

Consumer Profile : Household Profile & Education

EducationAll modern

trade shoppers(

%)

Tenuous

Primary or less 28 100

Secondary 23 122

High School Diploma 32 103

University degree and above

16 69

(Indexed to all modern trade shoppers)

Number of HH membersAll modern

trade shoppers(%

)

Tenuous

1-3 43 102

4-5 38 97

6 or higher 19 100

Household IncomeAll modern

trade shoppers(%

)

Tenuous

Low 33 118

Med 38 87

High 29 93

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High (Focus)

Average (No skew)

Low (Avoid)

Consumer Profile : Grocery Shopping Role & Marital Status

(Indexed to all modern trade shoppers)

Grocery Shopping RoleAll modern

trade shoppers(%

)

Tenuous

Primary 61 110

Influencer 39 85

Martial StatusAll modern

trade shoppers(%

)

Tenuous

Single 25 112

Married 70 99

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Foresight THREAT Attraction Retaining Switchers GROWTHMedium Medium Medium Medium

Threat Potential > Growth Potential

Focus Strengthen store equity among Tenuous and prevent defection

TENUOUS : STRATEGIC AND TACTICAL PLAN

Saliency Maintain saliency - spontaneous awareness

Store Associations

Strengthen coverageImprove layoutWiden assortmentExecute aggressive price / promotion strategies

Cross store Affinity

Defend Tenuous from defecting to Retailer A and Retailer B

Strategy for Combating Defection

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TENUOUS : STRATEGIC AND TACTICAL PLAN

Shopping Modality

• Tenuous Segment is experimental and therefore they need to be kept engaged with attractive yet functional layout, engaging promotions and wide assortment

• They actively scan newspapers / flyers for promotions and keep a look out for promotions while shopping. Execute long rolling, attractive promotions that are well advertised in newspapers / flyers

• They notice and purchase private labels. Offer good quality private labels and aggressively promote / advertise them and support them with prominent displays.

• Tenuous segment enjoys shopping and is their shopping trips are less pre-planned, making them more susceptible to in-store triggers. Entice this segment to increase spend resulting from impulse purchase through exciting layouts and wider assortments

• To keep the Tenuous segment engaged, increase focus on Fresh fruits / vegetables, fresh meat / chicken, ice cream and milk powder

Strategy for Combating Defection

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Strategy for Combating Defection

TENUOUS : STRATEGIC AND TACTICAL PLAN

Targeting Tenuous segment is somewhat skewed towards lower income and lower education and therefore these segments should be targeted.

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Q&A Session

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Winning Brands Foresight