“ Improving the portfolio to gain
in the market”
Fernanda Accorsi Retail Expert FA Retail - www.fernandaaccorsi.com
Neighborhood stores:
space
Neighborhood stores:
©FA Retail - Content & Solutions/2015
©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
©FA Retail - Content & Solutions/2015
Good opportunity to increase:
WHAT CHANGED
CONSUMPTION PATTERNS
©FA Retail - Content & Solutions/2015
©FA Retail - Content & Solutions/2015
Location
73% want to save time
during the purchase: FAST
SIMPLE ENJOYABLE
* Source: Kantar World Panel - 2015
©FA Retail - Content & Solutions/2015
Convenience It is not based on size
anymore, but on the need.
©FA Retail - Content & Solutions/2015
The BIG
want to be small
The dispute for the Neighborhood
location & convenience
©FA Retail - Content & Solutions/2015
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
©FA Retail - Content & Solutions/2015
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
©FA Retail - Content & Solutions/2015
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
• Loyal shoppers & consumer
• Resistant to change + quality oriented
• New social media members
• Downsizing house
consumption BB
BABY BOOMERS
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
• Brand loyalty once they trust
• Consume several media channels
• Seek product information
(specially online) – 1st gen online
• Less money individually
Higher household income X
X GENERATION
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
Y
Y GENERATION
• No brand loyalty – TRY IT!
• Aspirational, intuitive
performance, customized products
• Omnipresent connectivity – reviews
• Rooming with parents until later
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
Z
Z GENERATION
• Reality x Perfect life
• Products: more important
than brands (customer service)
• Digital Natives (overconnected)
• Research before purchasing
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
©FA Retail - Content & Solutions/2015
©FA Retail - Content & Solutions/2015
Let’s think about how many active SKU’s
we have in our PORTFOLIO.
Are we negotiating them on the right
channels?
©FA Retail - Content & Solutions/2015
If Small stores want to offer the
same SKUs that
the BIG ones…
©FA Retail - Content & Solutions/2015
…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
©FA Retail - Content & Solutions/2015
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 :
©FA Retail - Content & Solutions/2015
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!
Top Related