TW SP 05.2015_Neighborhood Stores (ENG)

“ Improving the portfolio to gain

in the market”

Fernanda Accorsi Retail Expert FA Retail - www.fernandaaccorsi.com

Neighborhood stores:

space

http://www.fernandaaccorsi.com/

Neighborhood stores:

©FA Retail - Content & Solutions/2015


WHY THE NEIGHBORHOOD STORES ?

They are 50 - 60%* of the market for the 2 main

categories: Toilet Paper and Kitchen Towel.

1-4 cks:

5-9 cks:

Traditional:

* Source: Share Volume / Nielsen Retail Index - 2013

(Grocery)

21% 20%

10% 6%

28% 21%

• the market penetration (for

categories that can still be

developed)

• the offer/ demand for

premium versions - add

SKUs with higher value


Good opportunity to increase:

WHAT CHANGED

CONSUMPTION PATTERNS



Location

73% want to save time

during the purchase: FAST

SIMPLE ENJOYABLE

* Source: Kantar World Panel - 2015


Convenience It is not based on size

anymore, but on the need.


The BIG

want to be small

The dispute for the Neighborhood

location & convenience


Technology Many stores are already

automated and also

prepared with modern

systems and softwares:

Supply Chain

Store Management Shopper Data

Atention 52% expect better

service and complain for

not receiving help from the staff.

* Source: Kantar World Panel - 2015 ©FA Retail - Content & Solutions/2015

The SPACE is reducing

The

PORTFOLIO

is

increasing

Dynamic MSP


SHOPPER BEHAVIOR

Understanding the Shopper

- Throughout the generations -

X GENERATION

BABY

BOOMERS

Y GENERATION

Z GENERATION

1960’s – 1980’s 1980’s – 2000’s 2000’s - Now 1940’s – 1960’s


BB X

Z Y

BABY BOOMERS X GENERATION

Y GENERATION Z GENERATION

• Loyal shoppers & consumer

• Resistant to change + quality oriented

• New social media members

• Downsizing house

consumption

• Brand loyalty once they trust

• Consume several media channels

• Seek product information

(specially online) – 1st gen online

• Less money individually

Higher household income

• No brand loyalty – TRY IT!

• Aspirational, intuitive

performance, customized products

• Omnipresent connectivity – reviews

• Rooming with parents until later

• Reality x Perfect life

• Products: more important

than brands (customer service)

• Digital Natives (overconnected)

• Research before purchasing





consumption BB

BABY BOOMERS

BB X

Z Y







consumption






















Higher household income X

X GENERATION

BB X

Z Y







consumption

















Y

Y GENERATION






BB X

Z Y







consumption

















Z

Z GENERATION






BB X

Z Y

They are all purchansing together.

new Purchase Experience client’s revolution The:

Marketing 1.0 / 2.0

Marketing 3.0

Engagement!

REVIEWING THE PORTFOLIO



Let’s think about how many active SKU’s

we have in our PORTFOLIO.

Are we negotiating them on the right

channels?


If Small stores want to offer the

same SKUs that

the BIG ones…


…Reduce your mix, improve the shopping experience.

Help the shopper to find what they are looking for.

Reduce the ‘out of stock’ of

popular products


Don’t wait for the client to reduce the range.

Focus on the Core business.

Develop the market choosing

more profitable SKUs :

1

2

3

PLY 50

75

100

COUNT

? ?

Develop the market choosing

more sustainable options :


Advantage of small retail: Private labels are not present in

all of them.

Less can be better. Make your portfolio Stronger.

Challenge Stop wasting:

- Costs - Time - Efforts

…and paper!

Fernanda Accorsi Retail Expert FA Retail - www.fernandaaccorsi.com

Thank you!

http://www.fernandaaccorsi.com/

TW SP 05.2015_Neighborhood Stores (ENG)

Documents

Transcript of TW SP 05.2015_Neighborhood Stores (ENG)