Shoppers in stores
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Transcript of Shoppers in stores
WHAT WINS THEIR WALLETS?SHOPPERS IN STORES
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PRESENTATION SPEAKERS
Nikhil SharmaVP, Consumer & Shopper Analytics,
Nielsen
Daniel JenskiAssociate Director of Consumer Analytics,
Mondelēz International
#Consumer360
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SHOPPER QUIZ
• % of CPG sales that occur in brick & mortar stores? 96%
• % of brand decisions that are made in-store? 67%#Consumer360
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SHOPPING IS BECOMING MORE COMPLEX
24,000 NEWretail stores since 2009
50% INCREASEin SKUs in 7 years
EXPONENTIAL GROWTHof product advertisement
#Consumer360
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ALL MARKETERS WANT TO DRIVE GROWTH BY OPTIMALLY SERVING THE SHOPPERHowever, the manufacturer and retailers mindset can be different
RETAILER
MANUFACTURER
DRIVE GROWTH
DRIVE GROWTH
MORE INNOVATION TO ENGAGE &
RETAIN SHOPPERS
EXCESSIVE CHANGE MAY DISRUPT
SHOPPERS
SHOPPERS GOALOptimally serve shoppers
Grow salesMaximize profitability
More ShoppersMore TripsMore Items
#Consumer360
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TECHNOLOGY CAN HELP DRIVE GREATER ALIGNMENT IN SHOPPER MARKETING
GOALOptimally serve shoppers
Grow salesMaximize profitability
RAPID CHANGE
MEASURED CHANGE
TECHNOLOGY = a KEY enabler!
RETAILER
MANUFACTURER
#Consumer360
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ENGAGEsocial advertising EVALUATE
social listening
CONSUMEtechnology enabled consumption tracking
geo-location based advertisingPLACE
virtual store technology, shelf imagingPURCHASE
IN FACT, TECHNOLOGY IS ALREADY BEING USED EXTENSIVELY IN SHOPPER MARKETING
DEMAND BUYPath to Purchase
digital ethnography smartphone payment methods
prior lists & recommendation servicesPLAN
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TODAY WE WILL DEMONSTRATE HOW TWO TECHNOLOGIES ARE HELPING TO WIN IN-STORE
Virtual Store Image Recognition
Easier Testing Better ExecutionWhat is it used for?
What benefit does it drive?
• Shelf layout• Pack and Price Architecture• Merchandising
• Compliance• Availability• Visibility
“Understand what to do in-store” “Ensure it actually gets done”
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#Consumer360
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Virtual Store
“Understand what to do in-store”
Easier Testing
#Consumer360
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VIRTUAL STORE TECHNOLOGY Online platform to measure in-store shopping behavior
Consumers cannavigate virtually
Can customize any retail environment from big box to small format – traditional to Modern trade
Can help optimize: price, promotion, assortment packaging, new product impact and more!
Virtual Store
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MONDELĒZ WANTED TO LEVERAGE VIRTUAL STORE TESTING
There were many hypotheses about the cause and the possible solutions:
How do we test these ideas in an efficient & cost-effective way without alienating shoppers?
The multipack business for Biscuits had been decreasing for years while the multipack business for Salty Snacks had been growing
Alternative pricing & promotion strategies? New Pack counts or varieties?
Alternative shelf layout?
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VIRTUAL STORE GIVES MONDELĒZ A ‘SAFE’ TESTING ENVIRONMENTStudy Design
• 21 shelf sets
• 400 monadic (stand-alone) reads
• Screened for primary grocery shoppers 18-65 who purchased cookies, crackers or salty snacks in the last 6 months• MDLZ Multi-pack buyers• MDLZ Multi-pack non-buyers• Salty Snack multi-pack buyers• Moms/Dads w/kids ages 2-5, 6-12, 13-17
• Included post-survey questionnaire
Virtual Store Demo
#Consumer360
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WE WERE ABLE TO TEST VARIOUS SCENARIOS… 1
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… AND QUANTIFY THE EXPECTED IMPACTReduce unit count in an existing multi-pack product
Brand Impact Category Impact
Mondelez would lose 2.6 Million Units to competing brands!
Our Retail Partner
would sell 1.4 Million
fewer Units of the
category!
We tested 27 such ideas … in only 12 weeks!
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MONDELĒZ DEVELOPED TANGIBLE IDEAS TO REVERSE THE DOWNWARD BUSINESS TREND
Considerdownsizecarefully
Launch new sizes
Don’t be too aggressive withnew size promo
Maintain key flavors in line
Larger sizes can work on bottom shelf,
but smaller sizes tend to perform better
at eye levelDo not include
constant consumables in a multipack shelf
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WE IMPROVED OUR RETAIL PARTNERSHIPS & REALIZED SEVERAL OTHER BENEFITS
Quicker Relative To In-Market
Testing
Cheaper Relative To In-Market Testing
No Need To Manufacture Test Products
Able To Test Results In Mass
and Grocery Formats
No Inconvenience To Our Retail
Partners
Tested More Ideas Compared
To In-Market Testing
#Consumer360
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THE VIRTUAL STORE TECHNOLOGY IS A POWERFUL SOLUTION TO DRIVE IMPACT AT RETAILThe Benefits:
Confidential and secure
Global solution
Comprehensive and powerful management tool
Flexible
Does not disrupt retailers
Less expensive and faster
#Consumer360
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Image Recognition
“Ensure it actually gets done”
Better Execution
#Consumer360
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EXECUTION AT RETAIL IS CRITICALLY IMPORTANT
EXECUTION
As an industry, we invest significantly here…
… but often fall short here
INNOVATION MARKETING
#Consumer360
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WHAT IS REALLY HAPPENING IN STORE?
?“What you think is happening” “What is actually happening”vs.
#Consumer360
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IMAGE RECOGNITION TECHNOLOGYSmartphone based technology to help improve in-store execution
Revolutionary technology that applies automatic image recognition to the tracking of in-store implementations
Transforms digital photographs taken at the point of sale into planograms
Allows you to track and evaluate the status of planogram compliance & key KPI’s such as ‘share-of-shelf’
Shelf Imaging
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SHELF IMAGING ALLOWS YOU TO FIX ISSUES AT RETAIL IN A NEARLY REAL TIME MANNER
“What Should We Fix?”
Real Agreed Differences
“How Well Are We Doing?”
Picture of Actual Shelf Planogram of Actual Shelf
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A HEALTH & BEAUTY MANUFACTURER USED IMAGE RECOGNITION TO EXECUTE BETTER AT RETAIL
Had significant opportunities to improve
how they tracked & executed in-store
Long history of being a leading innovator in the
skin care category
Current methods of tracking execution were sub-optimalManually collected self reported data + Time consuming consolidation process = Long timeframe for shelf changes
BUT
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EXECUTION IMPROVED SIGNIFICANTLY RESULTING IN SUBSTANTIALLY LOWER OPPORTUNITY COST
February
May
Stores Meeting Minimum ‘Share of Shelf’ Requirement
(Indexed to 100)
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+11%Improvement in
Execution!
• What are your sales from promotions?
• How well are your promotions executed at retail?
• What could an 11% increase in promotional sales mean for your business?
Food For Thought…
For a brand with nearly $45MM in sales from promotions…
$4.5 MillionIncremental Sales
Opportunity!
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IMAGE RECOGNITION TECHNOLOGY CAN DELIVER OTHER SUBSTANTIAL BENEFITS
More effective salesforce deployment
Lower ‘opportunity cost’ for retailers
Improved shopper satisfaction
Granular Data
Quick Turnaround
High Accuracy
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TECHNOLOGY CAN DRIVE TANGIBLE OUTCOMES AND MORE EFFECTIVE SHOPPER MARKETING!
Virtual Store Image Recognition
“Understand what to do in-store” “Ensure it actually gets done”
Easier Testing Better Execution
#Consumer360
1 2
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IN-STORE TECHNOLOGIES CAN PROVIDE A MYRIAD OF BENEFITS
Deploy at scale compared to some traditional methodsScalability
Significantly improve ‘time to market’
Offer privacy against competitors
Result in limited to no disruption to the shopper
Cycle Time
Privacy
Shopper Disruption
#Consumer360
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AN ISSUE-FOCUSED APPROACH REMAINS KEY TO APPROPRIATE USE OF TECHNOLOGY
Clearly identify the issue you’re looking to solve
Set clear objectives/measures of success
Think through variousapproaches and tools
Determine whether and what part technology can
play in the full solution
#Consumer360