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May 2010

Shopper Understanding & The Brand

An exploration of shopper behaviour in the Irish

multiples

1

Report Structure

1• Introduction & Objectives Pages 2 - 15

2• Market Understanding Pages 16 - 29

3• Shopper Occasions Pages 30 - 45

4

• Shopper & Category Insights Pages 46 - 98 • Crisps 47-52

• Soft Drinks 53 - 58

• Tea 59 - 64

• Dairy Spreads 65 - 71

• Fresh Soups 72 - 77

• Cheese 78 - 85

• Yoghurt 86 - 92

• Water 93 - 98

5• Implications Pages 99 - 102

2

Introduction & Objectives1

3

BACKGROUND

The area of shopper understanding has been identified as one of interest to Bord Bia’s client

companies. Specifically, the emergence of a body of marketing theory around shopper occasions has

seen the topic grow in importance for retailers.

Shopper insights are currency for building strong customer relationships. Retailers are battling for

shoppers and seek manufacturer partners who bring insights about how people shop that translate into

ideas that increase traffic, category and aisle sales.

RESEARCH OBJECTIVES

The primary research objective is to demonstrate how shopper understanding can help Irish brands

grow. Specifically, our research objectives are

1. To generate an understanding of shopper occasions amongst categories where Irish brands

compete

2. To generate actionable insights on channel strategy at a category level

3. To develop recommended improvements for Irish brands to implement at the point of

purchase

Background & Research Objectives

4

Shopper

Consumers

Consumer

Non-Shoppers

Shopper

Non-Consumers

Why is shopper research important?

Rightly, the majority of brands use research to understand its consumers, their lives, their consumption patterns, their

relationship with the categories they consume and the brands they choose.

But very often brand managers knowledge of shoppers isn’t always as strong. Knowledge about how and why consumers

behave doesn’t necessarily equate to knowledge about how shoppers behave.

This is partly because the shopper is not necessarily a consumer. A shopper is someone who shops in a store. They may, or

may not, be consumers of what they buy. And they may behave differently on different shopping occasions.

Even if the shopper is also a consumer, there are other influences that may dilute – or even override – their overall brand

preferences. For instance time pressure, the nature of their shopping trip, who is accompanying them, promotions,

whether they are buying as a gift and so on.

5

ALPHA MODE = High involvement /

high mental activity (Conscious)

BETA MODE = Low involvement /

low mental activity (Sub Conscious)

Brands can leverage shoppers mental state

Most people know the store they shop in. In the UK, for example, 80% of shoppers tend to shop one store for the main

shop. This means that the store becomes what we can call a ‘learned environment’. They have a mental map of where

things are in the store.

Most of the time shoppers are doing what is know as ‘low involvement processing’ (beta mode mental activity). This is

a mental state one step above the subconscious in which the brain is not consciously making choices or considering

options but prompting action when known/learned signals come into view.

FIELD OF VISION

This beta mode of shopping means that once looking at a display the eye works

in a different way, looking left and right before it looks up and down creating a

diamond or ellipse shape core field of vision.

The eye registers more in the horizontal, which is why, within a display,

horizontal blocking for a brand is more noticeable.

With shoppers behaving in such ‘predictable’ ways in store, the opportunities for

marketers can be significant.

6

Brands need to master in-store interruption

Shoppers look roughly straight ahead of them, a little lower than straight

ahead, not normally far below thigh height (between about 1000mm and

1400mm).

While walking by, they therefore tend not to look at the shelves straight on,

but at an angle. Also, they will not be looking at the shelves immediately to

their left or right, but at those 5-7 metres in front of them.

These patterns of behaviour have important implications for brands, because

brands have very limited space in which to ‘interrupt’ shoppers attention

in store.

In store POS and signage is one obvious way to attempt to grab consumers’

attention. But in many cases it fails. The key to developing the right

messages for brands in store is understanding the shopper occasion.

occasions can differ by category, however, examples of shopper occasions

include…

7

Brands can use emotional capital in-store

Mastering the art of in-store ‘interruption’ does not rely solely upon simple POS, category management and in-store

visibility. Brands also can leverage the emotional associations shoppers have with a brand through in-store activation.

The emotional capital of every brand is different, however, through the right shopper research a brand can unlock the

power of the latent associations consumers have with that brand. This can make the brand’s activity in store even more

powerful and more likely to interrupt shoppers who are shopping in ‘beta mode’.

For example…

BAILEYS

The Baileys brand was an infrequent purchase. By unlocking the feminine equity of the

brand Diageo developed a proposal for secondary display in areas of the store where

shoppers would be likely to be shopping in an indulgent frame of mind, like confectionery,

ice cream, cakes and even – quite radically – cosmetics!

COCA COLA

The Coca Cola brand has unlocked the emotion around its Christmas associations by

designing innovative POS that stacks its bottles in-store in the shape of a Christmas tree.

This is a classic example of leveraging the highly emotive to create impactful interruption

in store…

8

Using shopper understanding research for

Irish brands…

The purpose of this shopper understanding research to help Irish brands unlock their true potential in-store by

providing brand owners with:

1. An understanding of shopper occasions amongst categories where Irish brands compete

2. Actionable insights on channel strategy at a category level

3. And suggested improvements for Irish brands to implement at the point of purchase

Category

Dairy

Spreads

Cheese

WaterFresh

Soup

Soft

Drinks

Tea CrispsYoghurt

Shopper occasions & Motivations to Purchase

Brand Implications

Our Output: Recommendations for how Irish brands can win in-store…

9

Qualitative Research Structure

Group

No

Criteria Categories Store Location

1 30-40 year old, female, C2D

Main Household Shoppers

Cheese, Dairy Spreads Tesco Dublin



Soft Drinks, Water SuperValu Galway

3 40-50 year old, female, BC1


Yoghurts, Cheese SuperQuinn Dublin



Fresh Soup, Tea SuperValu Fermoy

5 40-50 year old, female, C1C2


Crisps, Soft Drinks Tesco Cork

Shop

No

Criteria Retailer

1 30-40 year old,

Main Shoppers

SuperQuinn

2 40-50 year old,

Main Shoppers

SuperValu

3 40-50 year old,

Main Shoppers

Tesco

4 30-40 year old,

Main Shoppers

SuperQuinn

5 30-40 year old,

Main Shoppers

SuperValu

Shop

No

Criteria Categories

6 30-40 year old,

Main Shoppers

Tesco

7 40-50 year old,

Main Shoppers

SuperQuinn

8 40-50 year old,

Main Shoppers

SuperValu

9 30-40 year old,

Main Shoppers

Tesco

10 40-50 year old,

Main Shoppers

SuperQuinn

Mobile Groups

Accompanied Shopping Trips

10

Quantitative Research Structure

Quantitative Research took the form of 1000 entry & exit interviews at stores around the country.

Three of the major multiples agreed to participate in the research:

Shoppers were interviewed before and after visiting the store.

A brief five minute interview was administered to explore:

The shopper archetype

The shopper occasion

Pre-store purchase intent, reason for store choice, presence of shopping lists & offer coupons

Post-store actual purchase behaviour and influencers at the fixture

11

Quantitative Analysis of Sample

51%44%

5%

Family Status - base 1007

Children living at home No children living at home Undeclared

34%

33%

33%

Store Sample - base 1007

Tesco SuperValu SuperQuinn

49% 35% 13% 1%

ABC1 C2D E F

5% 13% 34% 28% 17%

18-21 22-29 30-45 45-59 60+

Age - base 1007

Social Class - base 1007

17%

83%

Gender Profile - base 1007

MALE FEMALE

12

Overview of research approach

Shopper

Archetypes

Shopper occasions

Shopper Insights

We begin by exploring a number of

‘shopper archetypes’ to understand

‘who’ shoppers are and what their

typical shopping behaviours are?

We then move on to an exploration of

the core shopper occasions that exist

and how that influences in-store

shopper behaviour.

And finally move onto a series of

shopper insights at category level – to

understand the implications for Irish

brands.

13

At the core of shopper research is

understanding the shopper journey

1. Brand Equity Pre-Store

• Pre-Disposition

• Shopper Type

• State of mind

2. Store Experience

• Dynamics

• Atmosphere

• Layout

3. Point of Purchase

• Price

• Promotion

• Placement

• Pack Communication

4. Consumption

•Product experience

14

This research focuses on


• Pre-Disposition

• Shopper Type

• State of mind

• Channel/Retailer choice

2. Store Experience

• Dynamics

• Atmosphere

• Layout


• Price

• Promotion

• Placement


4. Consumption

•Product experience


• Pre-Disposition

• Shopper Type

• State of mind



• Price

• Promotion

• Placement


15

The influence of journey stages differ

depending upon the product category…


• Pre-Disposition

• Shopper Type

• State of mind



• Price

• Promotion

• Placement


Tea

Soft Drinks

Crisps

Dairy Spreads

Greater influence pre-store Greater influence in-store

Yoghurt

Cheese

Fresh Soup

Water

16

2Shopper Archetypes

17

Understanding different types of shoppers

Shopper Typologies

The Quick

Shopper

The Careful

Shopper

The Bargain Hunter

The Browser

18

The Quick Shopper

Grocery shopping is a job, something to get over and done with. I don’t want to waste my

time in a supermarket I have too many other things to fill my life.

Autopilot shopping

Knows the store layout

Likes to stock-up

Brand loyal

Don’t necessarily enjoy shopping but view it as

means of completing a list – mental or written.

19

18-21 22-29 30-45 45-59 60+

TOTAL SAMPLE 5% 13% 34% 28% 17%

THE QUICK SHOPPER 7% 19% 33% 27% 14%

Who is the Quick Shopper?

MALE FEMALE

TOTAL SAMPLE 17% 83%

THE QUICK SHOPPER 27% 73%

ABC1 C2D E F

TOTAL SAMPLE 49% 35% 13% 1%

THE QUICK SHOPPER 56% 31% 12% 1%

Quick shoppers are more likely to be younger and ABC1.

Notably, this typology tends to be more male than is the norm.

20

The Careful Shopper

Food shopping, in particular, is something to take seriously. Time

is spent at the category fixture reviewing prices, brands, formats

and ingredients.

Engaged in store culture

Immerse themselves in the experience of shopping

High involvement

Shopping is stimulating –but still a job so something to be conscientious about.

Bargains aren’t the main focus but value is.

21

18-21 22-29 30-45 45-59 60+

TOTAL SAMPLE 5% 13% 34% 28% 17%

THE CAREFUL SHOPPER 1% 8% 39% 29% 23%

Who is the Careful Shopper?

MALE FEMALE


THE CAREFUL SHOPPER 10% 90%

ABC1 C2D E F


THE CAREFUL SHOPPER 46% 37% 16% 1%

Careful Shoppers are much more likely to be female and also tend to be older.

22

The Bargain Hunter

Overtly price conscious and therefore treats grocery shopping as a challenge. Price and value are

the key considerations so strategies are used to seek out the best value.

Visit many retailers

Offer ‘destinations’ drives their behaviour

Shopping is a war and one that you have to constantly alert to to win.

Word-of-mouth and advertising are relied upon for the latest greatest

deals.

23

18-21 22-29 30-45 45-59 60+

TOTAL SAMPLE 5% 13% 34% 28% 17%

THE BARGAIN HUNTER 4% 10% 35% 34% 16%

Who is the Bargain Hunter?

MALE FEMALE


THE BARGAIN HUNTER 11% 89%

ABC1 C2D E F


THE BARGAIN HUNTER 34% 53% 11% 2%

Bargain Hunters again are more likely to be women and significantly more C2D than is the norm amongst the rest of the typologies.

24

The Browser

Some of us genuinely enjoy the experience of shopping and love to take our time in

the supermarket.

Shopping as stimulation

Sometimes an ‘idea’ and inspiration exercise for consumers

Compromise on price for a more enjoyable shopping experience

Food is to be enjoyed and so are new tastes. We know what we need but sometimes use the supermarket as a catalyst for

purchases.

25

18-21 22-29 30-45 45-59 60+

TOTAL SAMPLE 5% 13% 34% 28% 17%

THE BROWSER 4% 11% 27% 29% 29%

Who is the Browser?

MALE FEMALE


THE BROWSER 13% 87%

ABC1 C2D E F


THE BROWSER 66% 16% 18% 0%

Finally, the Browsers tend to be older and more up-market ABC1s.

26

What type of shopper are you? – Base: 1007

The Bargain Hunter

18%

The Quick Shopper

48%

The Browser

6%

Understanding the size of the typologies

The Careful Shopper

28%

27

Who makes a list?

No 78%

Yes 22%

Did you make a shopping list before visiting the store today? – base:1007

16% of quick shoppers

29% of careful shoppers

29% of bargain hunters

12% of browsers

Careful shoppers and Bargain hunters are more likely to make shopping lists.

28

Who brings special offer coupons?

No 93%

Yes 7%

Did you bring special offer coupons with you to the store today? – base:1007




2% of browsers

Very little ‘coupon’ behaviour at the three retailers we surveyed – perhaps driven reliance on loyalty schemes as main source of reward in Tesco and SuperQuinn?

29

Who reads about special offers in advance?

No 80%

Yes 20%

Did you read about any special offer before you visited the store today? – base:1007




12% of browsers

Careful shoppers and Bargain hunters are more read about special offers before

visiting the store.

30

3Shopper Occasions

31

What are the main shopper occasions?

Main shopper occasions – base: 1007

Main weekly shop; 26%

Big stock-up; 2%

Just passing and thought of

something I needed; 19%

I am on a daily/routine

shopping trip; 9%

Last minute emergency; 5%

Quick top-up shop; 39%

There are six main shopper occasions…

32

Who is shopping on these occasions?

I was just passing by and thought of

something I needed

I am on a daily/routine shopping trip

I am on a last minute/emergency shopping trip

I am on a quick top-up shop

I am on my main weekly shop

I am on a big stock-up shopping

trip

AVERAGE 19% 10% 5% 40% 25% 1%

The Quick Shopper

30% 11% 6% 39% 14% 1%

The Careful Shopper

10% 9% 3% 37% 40% 2%

The Bargain Hunter

10% 9% 6% 42% 33% 0%

The Browser 13% 5% 7% 55% 16% 4%

Base: 1007

Careful shoppers and Bargain hunters are methodical in their shopping behaviour so tend to complete weekly shopping trips. By contrast, The Browser uses shopping as an inspiration for cooking so can

complete a quick top-up shop frequently to ‘browse’ the store for ideas…

33

Quick Shopper Mindset



Most of the time Quick shoppers are shopping in what is know as ‘low involvement processing’ (beta mode mental

activity). This is a mental state one step above the subconscious in which the brain is not consciously making choices

or considering options but prompting action when known/learned signals come into view.

Quick shoppers tend to spend very little time at the supermarket shelf but, instead seek out their preferred brands

or products that they recognise instantly. Their key shopping occasions are typically when they are ‘just passing’ or

‘topping up’ so purchase behaviour is driven by a relatively immediate need.

Example: Fresh Soup – base 145

We examined pre-store and post-store purchase

intentions for Fresh Soup. The vast majority of quick

shoppers in the tea category (94%) had a brand in

mind pre-store and stuck with that brand – making

the shopping occasion very low involvement. By

contrast Bargain Hunters hare more involved and so

switch from pre-store intentions in greater numbers.

92%

58%

8%

42%

The Quick Shopper

The Bargain Hunter

No Yes

Did you buy the same brand you

intended before entering the store? -

base 145

34

Example of a typical Quick Shopper occasion

Key Shopper Journey Stage

Shopper Mindset

Typical occasion

Shopper Typology

The Quick Shopper

I was just passing by and thought of something I needed

Beta Mode

Reliance on brand

preference

Low Involvement

PRE-STORE

Unconscious Shopping

Shopper seeks out preferred brand initially

35



Bargain Hunters’ Shopper Mindset

Bargain Hunters tend to be much more involved in their shopping occasions as they seek out the best deal or offer. As

a result, we would describe the bargain hunters’ shopper mindset as alpha-mode – very high involvement with a high

level of conscious activity. The Bargain Hunter, thus relies upon in-store signage and promotions to help them along

their shopper journey.

2%

5%

5%

8%

10%

28%

43%

Will they eat everything in the variety pack

I only want enough for the weekend

Other

I should buy Irish

A new pack caught my eye

What else is on offer

Who is the cheapest

Example: Crisps – base 179

We asked respondents what were they

thinking at the crisps shelf. Across the

total sample 43% were interested in ‘who

is the cheapest’. This figure rises to 62%

amongst bargain hunters, with a further

30% looking for the best offer…

What were you thinking at the crisps shelf? – base 179

62%

30%

8%

Bargain Hunters

-%

-%

-%

-%

36

Key Shopper Journey Stage

Shopper Mindset

Typical occasion

Shopper Typology

The Bargain Hunter


Alpha Mode

Reliance on brand preferences & POP

High Involvement

IN-STORE

Conscious Shopping

Shopper actively seeks out best

prices – sometimes between stores

Example of a typical Bargain Hunter occasion

37





The Careful Shopper Mindset

Careful Shoppers use both Alpha Mode and Beta Mode processing on their shopping trips. They approach some

categories with high levels of involvements whilst others are routinely shopped with ‘quick shopper’ style behaviour

relying upon in-store stimulus.

Example: Yoghurt – base 63

We asked respondents what were they thinking at the

yoghurt shelf. Amongst Careful Shoppers the results

illustrated how low and high-involvement processing is

at work. Almost half of careful shoppers were looking for

the ‘best prices’ whilst a significant second group were

looking for their favourite brand. Shopping in this

category – for careful shoppers – can be both conscious

and unconscious…

What is on offer/Who is the cheapest,

43%

Where is my usual brand,

39%

I should buy Irish, 10%

Other, 8%

What were you thinking at the yoghurt shelf? – base 63 (careful shoppers)

38

Shopper Journey Stage

Shopper Mindset

Typical occasion

Shopper Typology

The Careful Shopper


Alpha & Beta Mode

Reliance on brand preferences & POP

Medium Involvement

PRE & IN-STORE

Conscious Shopping

Shopper seeks out preferred brand &

take cares on product choice, prices and

promotions

Example of a typical Careful Shopper occasion

39



Browsers are highly involved in the shopping experience and tend to spend time in the supermarket and at the

fixture exploring food products for inspiration. The Browser is this a highly conscious shopper, keen to read labels,

understand ingredients and often open to trying new things.

In-store marketing and on-pack communications are essential to appeal to this shopper – however, there are fewer

browsers than any other typology. Indeed many browsers tend to choose a retailer who they feel gives them the

greatest choice – shopping is an experience for the browser.

The Browsers’ Mindset

40

Shopper Journey Stage

Shopper Mindset

Typical occasion

Shopper Typology

The Browsers’ Typical occasion

I am on a quick top up shop

Alpha Mode

Reliance on POP as stimulation

High Involvement

In-store

Conscious Shopping

Shopper may have an occasion based need but will take a little time to browse the

fixture

Example of a typical Browser occasion

41

88%

12%

The Quick Shopper

87%

13%

The Careful Shopper

Brand Commitment x Shopper Typology

82%

18%

The Bargain Hunter

75%

25%

The Browser

Did you buy the same brand you intended when you went inside? – base:1007

The purchase decision for the majority of food and drinks brands we looked at are decided upon pre-store.

yes

no

42

The Point of Purchase Index

In order to illustrate further the differences between the various shopper typologies, we have produced a point of purchase index. This index illustrates how each shopper typology is influenced by in-store point of purchase material relative to one another – Browsers and Bargain Hunters score highest on the index illustrating how point of purchase

is more important as stimuli to those groups….

POP Index Explained:

We asked our respondents did they buy the same brand as intended before going into the store. Across the total sample

(and all categories) 86% of respondents bought the brand. The remaining 14% of respondents were influenced by what they

saw in-store in some way.

We use this 14% as our ‘baseline’:

So 14% 14% = an index of 1

Quick Shoppers: 12% 14% = 0.86

Careful Shoppers: 13% 14% = 0.92

Bargain Hunters: 18% 14% = 1.26

Browsers: 25% 14% = 1.78

In order to illustrate the relative scale of influence we then multiply each of the typology indexes by they segment size to

produce the chart on the next slide….

43

POP not as big an influence for the majority

INDEX = 1

The Browser

The Bargain Hunter

The Careful Shopper

The Quick Shopper

The vast majority of shoppers stick with the brand they intended to buy regardless of POP. The two largest shopper segments – Careful Shoppers and Quick Shoppers actually

under-index on Point of Purchase influence – revealing how in food and drinks pre-store influencers are critical.

Above the line are segments who ‘over-index’ on POP influence – in other words this are the shoppers

who are most influenced by in-store stimuli.

44

9%

19%

7%

13%

52%

Special offer/promotion

Quality brand

Irish

Best value

Personal/Family Favourite

Reasons for Brand Commitment

Why did you choose the brand you did? – base 1007

Personal Family Favourites, Irishness and brand Quality account for 78% of reasons consumers offer for brand purchase in the

eight categories we examined.

But as we will see there are variances by food/drink category and other factors such as

format and pack innovation can influence decision-making.

45

4Shopper & Category Insights

46

Crisps Crisp shoppers rely on visibility of special offers in-store.

Soft Drinks Yoghurt shoppers want to stock-up with special offer multi-packs.

Tea Tea shoppers want to stock-pile their favourite brand.

Dairy Spreads Dairy Spread shoppers want the best quality brand.

Fresh Soups Fresh Soup shoppers want to try new recipes and products.

Cheese Cheese shoppers want a bit more excitement.

Yoghurt Soft drink shoppers rely on in-store offer visibility.

Water Irish shoppers want value added in water.

Category Insights: Overview

47

Crisps: The decision-hierarchy

48

Crisps Shopping occasions

Shopping occasions for crisps– base 160

Crisp purchasing in the multiples is typified by ‘stocking up’ behaviour with 12% of crisp buyers on a ‘big stock up shop’ compared with 2% of the wider sample.

18%

8%

5%

29%

28%

12%

18%

10%

5%

38%

27%

2%

I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED

I AM ON A DAILY ROUTINE SHOPPING TRIP

I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP

I AM ON A QUICK TOP UP SHOP

I AM ON MY MAIN WEEKLY SHOP

I AM ON A BIG STOCK-UP SHOPPING TRIP

TOTAL SAMPLE CRISPS

49

Crisp Purchase Decision-Making

occasion

For Me Now

Brand Flavour Format Price/Offer

For Family Later

Format Price/Offer Brand Flavour

For Party Later

Format Price/Offer Brand Flavour

YES, 63%

NO, 29%

DIDN'T HAVE A BRAND IN MIND,

8%

Did you buy the same brand of crisps as you intended before you went into the store? – base 152

Over 1 in 3 crisp shoppers either changed from the brand they had in

mind pre-store or simply didn’t have a brand in mind pre-store.

Crisp purchasing is, therefore, quite reliant upon in-store point of

purchase stimulus compared to other categories.

This is a challenge for brands, particularly when price and special offer play such a significant role in

purchase decision-making.

50

Crisps: Key Pre-Store Influences

Top of mind

Irish Brands

Tayto

King

Hunk Dory’s

Perri

Irish Brand Equity

A category where the

importance of Irishness is

understood but increasingly

undermined by price

competition

Key Shopper Typology

The Bargain Hunter:

Over 50% of bargain hunters

choose the crisps they buy based on in-store POP factors such as

price/offers.

Shopper Mind-State

High involvement

Conscious

Rational Shopping

Awareness of prices and offers

is important

51

Crisps: Key POP Influences

Price

Shoppers increasingly aware of competition on prices driven mainly by Walkers. Irish brands of crisps are perceived to be ‘a bit more expensive’ sometimes than their UK

counterparts and own label products.

Promotion

Shoppers are on alert for mutli-pack offers (BOGOFF) again driven by Walkers. Irish

brands perceived to be ‘less likely’ to make very competitive offer in-store yet UK

competitors have built reputation for this.

Placement

Aisle ends are the expected location of low priced/promoted multi-packs.

The Bargain Hunter in particular seeks out aisle ends in crisp category.

Packaging

A case of more is more in this category – but not for everyone. Careful shoppers don’t

want to over-stock the cupboards for health reasons so six pack is still order of day - but again with an eye on price competitiveness.

Crisps

52

Crisps: Category Insight

Crisps Crisp shoppers rely on visibility of special offers in-store.

What were you thinking at the crisps shelf? – base 179

2%

5%

5%

8%

10%

28%

43%

Will they eat everything in the variety pack

I only want enough for the weekend

Other

I should buy Irish


What else is on offer

Who is the cheapest

Price and value are the key influencers for crisps in the multiples. Irish brands have no choice but to respond with competitive offers.

53

Soft Drinks

54

Soft Drinks Shopping occasions

25%

7%

5%

35%

28%

12%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE SOFT DRINKS

Shopping occasions for soft drinks – base 172

Soft drink purchasing in the multiples is characterised by ‘stocking up’ and is part of shoppers weekly repertoire. Soft Drinks is a category that is now fundamentally driven by special offer deals on major brands.

Note: Small base at “Just passing by and thought of something I needed” means the scores for this occasion should be treated with

caution in this context.

55

Purchase Decision-Making in Soft-Drinks

occasion

For Me Brand Flavour/Variant Format Price/Offer

For Family Price/Offer Brand Flavour Format

For Party Price/Offer Brand Flavour Format

The power of large multi-national brands such as Coca Cola means many soft drinks products are intended purchases

before a shopper gets to a store. Value, Price, Special Offers and Format Deal all play an influential role in shaping

purchase decisions at the point of purchase.

However, these decisions may be almost ‘instant’ with shoppers relying on visibility and instant recognition of an offer

at aisle ends to convert them to purchase. The instant nature of shopper decisions in the soft-drinks category is

illustrated by virtue of the fact that almost counter-intuitively we find Quick Shoppers over-index on POP influence in

this category:

POP Index – Soft Drinks

Average – 1.0

Quick Shopper – 1.25

Bargain Hunter – 0.4

Careful Shopper – 0.45

Quick Shoppers are influenced by what they see

in-store more than any other typology.

Visibility of offers drives this behaviour.

56

Soft Drinks: Key Pre-Store Influences

Top of mind

Irish Brands

Consumers struggle to recall ‘Irish’ Soft Drinks

brands. When prompted they

suggest…

Club

Finches

TK

Irish Brand Equity


importance of Irishness has

been undermined by

the power of international

brands


The Quick Shopper

55% of soft-drink shoppers and a group that over-indexes on POP

influence.

Shopper Mind-State

Medium involvement

Rational & Emotional

Some sub-conscious shopping

57

Soft Drinks: Key POP influences

Price

A category that is hugely price driven in the multiples and very difficult for Irish brands to ‘win’ on price competition. Coca Cola, 7Up,

Fanta & Pepsi are now expected to offer some offer of real value to shoppers

Promotion

BOGOFF is very common so bargain hunters, quick shoppers and careful shoppers are

tuned in to those offers.

Placement

Aisle ends are critical.

Packaging

Pack format is also hugely important and the multi-national brands ‘own’ many aisle ends

and fixtures via the diversity of their pack formats.

Soft Drinks

58

Soft Drinks: Category Insight

Soft Drinks Soft drink shoppers rely on in-store offer visibility.

What were you thinking at the soft drinks shelf? – base 160

53%

10%

20%

17%

Are there any specials


Where is my favourite

What do i have a home/can I stock up

59

Tea

60

12%

12%

4%

42%

29%

12%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE TEA

Tea Shopping occasions

Shopping occasions for soft drinks – base 172

Broadly Tea purchase occasions are in line the purchase occasions for other categories – with one exception – the ‘big stock up shop’ where 12% of tea purchases are made. Tea is a category that consumers like to

stock up on…

61

Tea Purchase Decision-Making

occasion

Everyday Brand Format Price/Offer

Special Requirements

Type/Flavour Brand Format Price/Offer

YES, 91%

NO, 8%DIDN'T HAVE A

BRAND IN MIND, 1%

Did you buy the same brand of tea as you intended before you went into the store? – Base: 157

Over 90% of the tea shoppers stuck with the brand of tea they had in

mind pre-store.

Commitment to tea brands – in the mainstream at least – is profound.

62

Tea: Key journey moments – Pre-Store

Top of mind

Irish Brands

Barry’s

Lyon’s

Bewley’s

Irish Brand Equity


importance of Irishness is critical and

shoppers have learned to ‘stock-

up’ on their favourites


The Careful Shopper & The Bargain Hunter

Shopper Mind-State

Low involvement - emotional

63

Tea: Key journey moments – POP

Price

The Bargain Hunter and the Careful Shopper are both interested in price but

in many cases even they are so committed to an ‘Irish’ brand of tea that they may not

switch brands.

Promotion

Shoppers rely on bulk offer to stock-up on a preferred brand – bargain hunters and

careful shoppers in particular are prone to ‘stocking up’ as a mode of shopping

behaviour.

Placement

Given the importance of offers and ‘BOGOFFs’ aisle ends are a store hot-spot

for tea shoppers

Packaging

Again the emphasis on bulk buying comes through with a focus on ‘extra-free’ packs

and banded offers.

Tea

64

Tea: Category Insight

Tea Shoppers want to stock-pile their favourite brand

59%

31%

10%


Are there any offers


What were you thinking at the tea shelf? – base 145

At the fixture thoughts are very simple in the tea category – the majority of shoppers are focusing on their favourite brand and look out for offers…

NPD and innovation is also influencing shoppers at POP – keeping the category

‘new and fresh’.

65

Dairy Spreads

66

Dairy Spreads Shopping occasions

10%

10%

4%

38%

36%

1%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE DAIRY SPREADS

Shopping occasions for dairy spreads – base 160

The main weekly shop is the key occasion for Dairy Spreads as shopper stock-up on a stable they need week in, week out.

67

Dairy Spread Shopper Typologies

THE QUICK SHOPPER, 31%

THE CAREFUL SHOPPER, 43%

THE BARGAIN HUNTER, 21%

THE BROWSER, 5%

DAIRY SPREADS SHOPPER TYPOLOGIES – base 190

The shopper typology of greatest importance to the Dairy Spread category is

the Careful shopper – 43% of our Dairy Spread buyers were careful shoppers.

Purchase of Dairy Spreads for these shoppers combines both caution around

the best ‘deal’ but also around the product itself.

Irishness is hugely important but shoppers are noticing functional benefits increasingly

from non-Irish brands and lower prices from shops own-brand.

The challenge for Irish brands is to maintain perceived quality through communications

on-pack and innovation.

68

Dairy Spread Purchase Decision Making

occasion

Everyday Brand Size Variant Price

Special Requirement

Functional benefit

Brand Size Price

YES, 82%

NO, 11%


7%

Did you buy the same brand you intended to buy before you went into the store?

The brand is still a huge influence for shoppers in this category as over 82% of

shoppers stuck with the brand they had in mind pre-store.

69

Dairy Spreads: Key Pre-Store Influences

Top of mind

Irish Brands

KerryGold

DairyGold

Low Low

KerryMaid

Irish Brand Equity

Irishness is critical but the

main Irish brands are relatively

undifferentiated – functional benefits are

mainly associated with overseas brands


The Quick Shopper

45% of all dairy spread purchases are made by the

quick shopper

Shopper Mind-State

Low involvement – Emotional

Because many shoppers rely

upon brands to cue quality

70

Dairy Spreads: Key POP Influences

Price

Price is becoming a key influencer at the fixture for ‘generic’ dairy spreads that are

under threat from ‘me too’ own label products. Functional spreads are perceived to be very expensive.

Promotion

Shoppers complain of how few offers exist in the Dairy Spreads category.

Placement

Again, the chilled cabinet is one that facilitates little in the way of browsing.

Packaging

The packaging colour of the category is ‘gold’. Although functional spreads are

cutting through with their different colour packaging palate.

Dairy Spreads

71

Dairy Spreads: Category Insight

Dairy Spreads

Shoppers want the best quality spread and increasingly see new products that challenge the quality of traditional Irish favourites.

28%

15%

24%

26%

7%

Where is my favourite?

I should buy Irish


I'd like to buy some of them but they are too expensive

Are any on offer?

What were you thinking at the dairy spreads shelf? – base 174

Shoppers are noticing ‘functional benefit’ spreads such as benecol, flora proactive but barriers to purchase exist –taste, price. An opportunity for Irish spreads to target.

72

Fresh Soup

73

Fresh Soup

17%

13%

8%

29%

29%

4%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE FRESH SOUP

Shopping occasions for fresh soup – base 160

The Quick Top-Up Shop is a key occasion for Fresh Soup shoppers – even in the multiples – meaning convenient ready to use formats are increasingly driving purchase behaviour.

Shoppers often want to consumer fresh soup straight away.

74

Fresh Soup Purchase Decision-Making

occasion

For special meal


For me now e.g. lunch

Format Flavour Brand Price/Offer

For family Type/Flavour Format Price/Offer Brand

6%

10%

10%

36%

38%

Can heat straight away

An interesting flavour

Wanted to try something different

My usual brand

On special offer

Why did you choose the brand you did? – base 160Special Offers and Brand

Commitment account for about two thirds of purchases in Fresh

Soup.

But it is notable a further third of purchases are driven by

innovation in pack design or even product composition.

A lot of these purchases are for the shopper themselves.

75

Fresh Soup: Key Pre-Store Influences

Top of mind

Irish Brands

Avonmore

Cully & Sully

Irish Brand Equity

Irishness is valued in this category but

occasion specific purchasing means pack

format is increasingly influential.


The Quick Shopper

Shopper Mind-State

Low involvement – emotional

&

Medium involvement

- rational

76

Fresh Soup: Key POP Influences

Price

Price is playing an important influencing role at POP on shopping occasions for ‘the family’ where large

volumes are required. Litre packs of Fresh Soup dominate that space but private label is fighting

hard for shoppers’ minds with lower prices.

Promotion

The family purchase occasion encourages shoppers to look for ‘bulk buying’ value. Extra fills and

BOGOFF are the real stand out promotions for shoppers.

Placement

As with cheese, the chilled nature of the category doesn’t encourage browsing so this is a low

involvement purchase with shoppers making decisions quickly and relying on highly visible stimulus such as promotions or packaging…

Packaging

The quick shopper in particular is relying upon pack formats as a ‘cue’ in their purchase decision-making

process. Particularly when purchasing soup for immediate consumption e.g. microwaveable

formats.

Fresh Soup

77

Fresh Soup: Category Insight

Fresh Soups Fresh Soup shoppers want to try new recipes and new products.

35%

17%

11%

10%

15%

12%



I should buy Irish

Are there any offer

How does this compare to other brands

That's a new product

What were you thinking at the fresh soup shelf? – base 120

Pack innovations is interrupting some consumers at the fresh soup fixture

78

Cheese

79

Cheese Shopping occasions

Shopping occasions for cheese – base 160

14%

11%

5%

42%

28%

1%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE CHEESE

Cheese purchasing occurs in-line with the shopper occasion pattern identified across the sample.

However, it is notable that the category is more frequently shopped on a ‘quick top-up shop’ & a casual ‘just passing by’ shop. This illustrates the low involvement and quick nature of purchasing in the mainstream cheese category.

80

Cheese Shopper Typologies

THE QUICK SHOPPER, 43%

THE CAREFUL SHOPPER, 32%

THE BARGAIN HUNTER, 22%

THE BROWSER, 3%

CHEESE SHOPPER TYPOLOGIES - base 203

Unsurprisingly, 43% of the cheese shoppers we spoke to were ‘quick

shoppers’, illustrating the ‘fast paced’ nature of cheese purchase behaviour.

Cheese purchasing for the mainstream consumer is driven by recognition of a preferred brand –

particularly amongst quick shoppers.

Notably, careful shoppers are more inclined to take time to look for offers on own label cheeses – as are bargain

hunters.

81

The cheese purchase decision-making

occasion

Everyday Type Brand Format Price/Offer

Special occasion

Type Brand Format Price/Offer

For now Type Brand Format Price/Offer

YES, 75%

NO, 16%


9%

Did you buy the same brand of cheese as you intended before you went into the store? – base 203

Three quarters of shoppers have a brand of cheese in mind before going into a store and bought that brand at

the fixture.

However, 25% of shoppers are uncommitted to their cheese brand and so are open to generic or own

label offers.

Decision-making is almost instant in this category with the type of cheese

– usually cheddar – a given. The brand plays a key role – with

‘Irishness’ a factor even in own-label cheese.

82

Cheese: Key Pre-Store Influences

Top of mind

Irish Brands

Kilmeaden

Dubliner

Mitchelstown

Galtee

Easy-Singles

Charleville

Irish Brand Equity

Irishness is critical as an

imprimatur of quality – but

brand commitment is overshadowed

by commitment to type of cheese


The Quick Shopper

43% of cheese shoppers are

quick shoppers.

Shopper Mind-State

Low involvement

Sub-conscious shopping

Decisions made instantly

Perceived brand ‘quality’ is huge influencer pre-

store.

83

The cheese category field of vision

Many of the cheese shoppers we spoke to described how the shopping the category is like looking at a ‘yellow’ wall. Irish cheese is dominated by cheddar blocks with very little else interrupting the shoppers’

in-store experience – excepts for stores that have dedicated premium cheese fixtures.

The yellow wall…

The own label threat…

Own label cheeses are fueling an homogenous look and feel to the cheese fixture and so brand owners need to invest in unique quality packaging to stand-out from emerging low-cost alternatives…

84

Cheese: Key POP influences

Price

Pricing on mainstream cheese is considered to be reasonably price competitive by shoppers. The range and choice of mainstream cheese

brand available creates a sense of competitiveness in the category.

Promotion

Cheese is not a category that shoppers readily associate with special offer promotions. But pre-

store promotion – in the form of advertising is playing a significant role in influencing shoppers.

The brand is very important in this category.

Placement

Shoppers tend not to spend too much time ‘browsing’ the cheese fixture – mainly because

chilled cabinets are a cold environment.

Packaging

But pack innovation is playing an important POP influence for shoppers as new formats allow

brands to achieve greater ‘stand out’. Zip lock bags and re-sealable packaging – in particular.

Cheese

85

Cheese: Category Insight

Cheese Cheese shoppers want a bit more excitement…

What were you thinking at the cheese shelf? – base 145

49%

15%

11%

10%

15%



I should buy Irish

Are there any offer

How does this compare to other brands

Brand commitment is strong in this category but the importance/presence of Irishness as a consideration is also a threat as own-label cheese are gaining in-roads as viable alternatives.

New packaging ‘catching shoppers’ eyes’ is an essential means of reinforcing quality cues.

86

Yoghurt

87

14%

12%

6%

43%

24%

2%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE YOGHURT

Yoghurt Shopping occasions

Shopping occasions for yoghurts – base 172

Yoghurt purchasing occurs in-line with the shopper occasion pattern identified across the sample.

However, like cheese, the category is more frequently shopped on a ‘quick top-up shop’ & a casual ‘just passing by’ shop. This indicate yogurt is something of a ‘low involvement’ purchase.

88

Yoghurt Purchase Decision-Making

occasion

For Me

Brand Flavour Format Price Offer

Functional Benefit


For Family Format Price/Offer Brand Flavour

YES, 83%

NO, 12%


5%

Did you buy the same brand of you intended before to buy before you went into the store? – Base 178

Despite special offers playing an important role when shopping for the

family, yoghurt shoppers tend to ‘stick’ with the brands they intend to

buy pre-store.

But ‘stocking-up’ behaviour in this category means the multi-pack format

is very important to shoppers.

Multi-packs allow shoppers to feel they are getting a good deal.

89

Key Shopper Typology in Yoghurt

The Point of Purchase Index for Yoghurt reveals the Quick Shopper should be a major concern for Irish brand owners. Quick Shoppers are the largest segment and they over-index on the influence of Point of Purchase…

Average Point of Purchase Influence: 17%

So using 17% as our baseline – 17% 17% = 1

Yoghurt POP Index by Shopper Typology

The Quick Shopper – 1.53

The Careful Shopper – 0.88

The Browser – 0.07

The Bargain Hunter – 1.18

INDEX = 1

The Browser;

0.07

The Bargain Hunter;

1.18

The Careful

Shopper;0.88

The Quick Shopper;

1.53

Quick shoppers are influenced by factors at the fixture such as

price, offer, format

90

Yoghurt: Key Pre-Store Influences

Top of mind

Irish Brands

Yoplait

Glenisk

Irish Brand Equity

Irish brands are highly valued in

this category because of our strength as a

dairy producer.


The Quick Shopper:

42% of Yoghurt Shoppers are

Quick Shoppers –many of whom

rely upon familiarity and

brands. But also many of whom make decisions at the fixture.

Shopper Mind-State

Low-Medium involvement

Rational & Emotional

Some sub-conscious shopping

91

Yoghurt: Key POP Influences

Price

Price is, of course, playing a role but consumers tend to judge prices in this

category via ‘value’ and what they can get in a multi-pack format.

Promotion

Notably, little or no reference at all to POP promotion in the category across the

research. An opportunity to ‘interrupt’ shoppers with fridge merchandising?

Placement

Chilled category means shoppers ‘seek out’ the yoghurt section – very little expectation

of aisle end offers. However, category blocking is playing an important role for

consumers – i.e. kids, functional, organic etc.

Packaging

Multi-pack formats are the order of the day for many consumers but, notably, some

brands have achieved stand-out via larger single serve formats e.g. Glenisk.

Yoghurt

92

Yoghurt: Category Insight

Yoghurt Yoghurt shoppers want to stock-up with special offer multi-packs.

What were you thinking at the yoghurt shelf? – base 155

5%

11%

9%

35%

40%

Other

I only buy Irish yoghurt


Are there any specials

Where is my favourite brand

The focus on special offers centers around multi-pack special offers. But Irishness and ‘new packs’ are also in shoppers thoughts at the fixture – small brands can stand out because of the routine nature of

this shopping occasions but need to offer value via multi-pack offers.

93

Water

94

Water Shopping occasions

Shopping occasions for water – base 160

Water shopping occasions are reflective of typical shopper occasions in the multiples with shoppers buying water in a range of situations. Consumers tend to buy water as the need it so some of the

multiples water shoppers were literally ‘passing trade’ shoppers who had an immediate need for water.

24%

5%

6%

34%

27%

4%

18%

10%

5%

38%

27%

2%







TOTAL SAMPLE WATER

95

Water Purchase Decision-Making

occasion

For me now

Still Size/Format Brand Price/Offer

Sparkling Brand Price/Offer

Flavoured Brand Price/Offer

For family

Still Price/Offer Size/Format Brand

Sparkling Price/Offer Size/Format Brand

Flavoured Price/Offer Size/Format Brand

The key challenge facing Irish water brands, not unlike soft-drinks brands, is shoppers are stocking up on big name brands at discount prices. Water has become a commodity purchase for many shoppers with

the brand slipping in importance on the decision-tree.

96

Water: Key Pre-Store Influences

Top of mind

Irish Brands

Ballygowan

Tipperary

Kerry Spring

Rockwell

Isca

Irish Brand Equity

Irish names offer a reassuring

sense of quality but increasingly the category is

becoming generic.


The Bargain Hunter & The

Careful Shopper account for over

50% of water shoppers and are often driven by

price and special offers.

Shopper Mind-State

Medium involvement -

rational

97

Water: Key POP Influences

Price

The water category in the multiples is increasingly becoming all about price.

Value is the order of the day with major international brands squeezing prices to

rock bottom.

Promotion

In-store POP is hugely influential via banded offers and multi-packs. These offers are now expected by shoppers.

Placement

Offers at aisle ends are expected but discounts multi-pack bottles of water are

also now common and shoppers have begun to rely upon ‘bulk’ on the fixture as

a cue to value.

Packaging

New formats are rare in the main water fixture – in the multiples – convience formats such as sport tops play a less

influential role in supermarkets. But multi-pack formats are shaping brand choice.

Water

98

Water: Category Insight

Water Irish shoppers want value added in water…

40%

12%

31%

10%

7%

Are there any offers?

How many can i get?

Who is cheapest this week?

Where are the lunchbox packs?

How much can I carry?

What were you thinking at the water shelf? – base 174

Tipperary Kid’s bottles is a great example of NPD that is standing out at the fixture.

99

Implications5

100

Category Implications

THE SHOPPER JOURNEY DIFFERS BY CATEGORY

Brand owners can use this research to frame their shopper strategy for their brands by answering three questions:

1. Who are the shopper typology you want to target?

2. What is shopper occasion you want to target?

3. What is the shopper insight?

PRIORITISING THE SHOPPER TYPOLOGY FOR YOUR BRAND

This research provides a category level snapshot of the key shopper typologies – brand owners need to decide which type

of shopper they want to target in first place. By understanding the purchase decision-making process for a category, the

brand owner can develop strategies that will reach our identified shopper typologies in-store.

Within those shopper typologies, differing modes of shopping occur at a category level. this research reveals a number of

different modes of shopping behaviour in the multiples. Brand owners need to recognise if their brand is reaching

shoppers who are ‘highly involved’ in their shopping trip or simply shopping subconsciously.

THE SHOPPER JOURNEY DIFFERS BY CATEGORY

The importance of journey stage to an individual category should not be underestimated. Some food and drinks

categories are heavily reliant upon the in-store experience (regardless of who the shopper is) whilst other categories are

driven by perceptions of products and brands pre-store. Brand owners need to decide if they want to drive shoppers to a

store with brand messages and communication – or simply ‘interupt’ shoppers when they get to the store.

This research reveals that some categories simply cannot rely on in-store interuption – the brands need to live a larger

life pre-store by creating an image and set of associations that is compelling for shoppers.

101

Who is the shopper typology we want to

target?

What shopper occasions are they likely to be on?

What is the shopper insight we need to

address?

Shopper Strategy Screener;

Example Cheese

THE QUICK SHOPPER; 43% of cheese shoppers

Cheese is purchased across a range of occasions and is a

routine purchase.LOW INVOLVEMENT

Cheese shopper want a bit more excitement.

IMPLICATIONMainstream cheese brand need to create

excitement on-shelf as Quick shoppers are in beta-mode, subconsciously shopping.

OPPORTUNITYPack Innovation.

102

Crisps Irish brands must demonstrate they are competitive via in-store visibility.

Soft Drinks Irish brands must remind shoppers they are Irish in-store.

Tea Irish brands must facilitate stocking up.

Dairy Spreads Irish brands must constantly reinforce their quality through innovation.

Fresh Soups Irish brands must offer value through new formats.

Cheese Irish brands must constantly reinforce their quality through communications.

Yoghurt Irish brands must facilitate stocking up with multi-pack format offers.

Water Irish brands must facilitate stocking up with multi-pack format offers.

Category Implications: Conclusions Summary

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