Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree
Anheuser-Busch • Marketing Planning & Research • National Retail Sales • Jan 2005
BackgroundBackgroundWhat is a Decision Tree?Why Have One?
Decision Tree: Background and MethodologyDecision Tree: Background and Methodology
• What is a Consumer Decision Tree? A CDT is a hierarchical marketing model used to understand consumer choices made at the point of sale. CDTs illustrate the considerations consumers use to focus on their choices from a total category assortment.
• Why do a decision tree? CDTs allow the ability to visually portray product relationships based on real consumer perceptions. CDTs allow manufacturers to provide retail accounts with suggested actionable solutions based on how consumers think about and shop their category.
• How do manufacturers and retailers use CDTs? Some of the preferred implementations of CDTs include:
Strategic promotional choices
Shelf space allocation
Optimizations of product assortments
Development of new planograms
Product acceptance/deletion criteria
Other in-store ventures such as promotion and merchandising decisions, marketing communications, new product introductions
The Decision TreeThe Decision TreeShoppers’ Decision ProcessStructure of Decision TreeDifferences Between Each “Branch”
OCCASION…Defines Amount and Scope of Product(s) Needed / Desired
Category(ies)
Brand(s) / Price Segment(s)
Class Of Trade / Shopping Experience
Sales/Deals (Within Evoked Set of Occasion-Appropriate Items)
Package Size & Container
Order may switch
depending on occasion
Alcohol Beverage Shopper Decision Process(General Sequence of Shoppers’ Conscious Decisions)
Order may switch
depending on occasion
Source: A-B In-Store Decision Tree Study, 2005
Alcohol Beverage Shopper Decision ProcessExamples
Alcohol Beverage Shopper Decision ProcessExamples
Sequence Example 1 Example 2
Occasion…Defines Amount and Scope of Product(s) Needed /
Desired
Personal refreshment only; one occasion;
limited means
Casual home party with contemporary adult
friends; one occasion
Category(ies) Beer Liquor and Beer
Brand(s) / Price Segment(s)(not necessarily in that order)
Busch Light; Value Segment
Good beer variety and need to pick up other stuff
for party
Grocery Chain X near friend’s house
Class of Trade / Shopping Experience
C-store; just need beer; easy in & out Tequila (Jose Cuervo),
Vodka (Smirnoff), Premium Light (Bud Light)
and Micro (Fat Tire)Store C-Store Chain X, on my
way home
Sales / Deals Large single, canMaybe, if any other
occasion-appropriate brands are on sale
Package size & containerWould willingly switch brands for a better deal
750 ml of Liquor; Multi-pk bottles of beer (pack sizes
depend on # of people)
Source: A-B In-Store Decision Tree Study, 2005
Sequence Example 1 Example 2
Occasion…Defines Amount and Scope of Product(s) Needed /
Desired
Personal refreshment only; one occasion;
limited means
Casual home party with contemporary adult
friends; one occasion
Category(ies) Beer Liquor and Beer
Brand(s) / Price Segment(s)
Busch Light; Value Segment
Good beer variety and need to pick up other stuff
for party
Grocery Chain X near friend’s house
Class of Trade / Shopping Experience
C-store; just need beer; easy in & out Tequila (Jose Cuervo),
Vodka (Smirnoff), Premium Light (Bud Light)
and Micro (Fat Tire)Store C-Store Chain X, on my
way home
Sales / Deals Large single, canMaybe, if any other
occasion-appropriate brands are on sale
Package size & containerWould willingly switch brands for a better deal
750 ml of Liquor; Multi-pk bottles of beer (pack sizes
depend on # of people)
Alcohol Beverage Shopper Decision Process(General Sequence of Shoppers’ Conscious Decisions)Alcohol Beverage Shopper Decision Process(General Sequence of Shoppers’ Conscious Decisions)
THE DECISION TREE, DESCRIBED ON THE FOLLOWING SLIDES,
REPRESENTS HOW THESE SEGMENT / BRAND
DECISIONS ARE MADE
THE DECISION TREE, DESCRIBED ON THE FOLLOWING SLIDES,
REPRESENTS HOW THESE SEGMENT / BRAND
DECISIONS ARE MADE
Shopper Decision Tree - Segments and Brands(What’s In Each Segment)
Shopper Decision Tree - Segments and Brands(What’s In Each Segment)
B E E RB E E RWineWine Hard LiquorHard Liquor
Amstel LightAspen Edge
Michelob Ultraetc. Premium/
Above Premium
SABMiller Lite Bud Light
Coors Lightetc.
BudweiserCoors
Ice HouseMGDetc.
Bacardi SilverMike’s Hard Lemon
Smirnoff IceTequiza
Zimaetc.
Red HookSam AdamsShiner Bock
Sierra NevadaFat Tire
Local Microetc.
FABFAB
Super-LightSuper-Light
Mich FamilyRolling Rock
etc.
PremiumRegular
PremiumRegular
MexicanEuropean AustralianCanadian
Traditional Beer
DomesticSpecialtyDomesticSpecialty
ImportsImports
Colt 45King Cobra
Mickey’setc.
Value
LightLight RegularRegular
High Alcoho
l
High Alcoho
lNatural Ice
Bud IceOther Ice
etc.
Busch LightKeystone Light
etc.
BuschKeystone
Miller High LifeMil Best/ Old Mil
PBRSchlitz
etc.
MaltMalt
TiltSparks
Natty Upetc.
Energy / High
Alcohol
Energy / High
Alcohol
TraditionalValuePremium
LightPremium
Light
Craft/MicroCraft/Micro
Source: A-B In-Store Decision Tree Study, 2005
Shopper Decision Tree - Demographic Skews(Who’s Buying Each Segment)
Shopper Decision Tree - Demographic Skews(Who’s Buying Each Segment)
B E E RB E E RWineWine Hard LiquorHard Liquor
Premium/Above Premium
Same as Total Beer
Same as Total Beer
Younger (21-27)Female
MaleAnglo
Higher Income
FABFAB
Super-LightSuper-Light
AngloHigher Income
PremiumRegular
PremiumRegular
Traditional Beer
DomesticSpecialtyDomesticSpecialty
ImportsImports
MaleAfrican -American
Lower Income
Value
LightLight RegularRegular
High Alcoho
l
High Alcoho
lYounger (21-27)Lower Income
Male
OlderAnglo
OlderMale
Lower Income
MaltMalt
Younger (21-27)
Energy / High
Alcohol
Energy / High
Alcohol
TraditionalValuePremium
LightPremium
Light
Craft/MicroCraft/Micro
Mexican: Younger (21-27), Latino, Higher Income
European, Australian, & Canadian: Male, Higher Income
Female, OlderHigher Income
Older and Younger (21-27)
All Adults 21+$51K Avg. Income
62% Male / 38% Female66% Anglo, 11% Black, 23% Latino
Female, OlderHigher Income
Source: A-B In-Store Decision Tree Study, 2005
Shopper Decision Tree - Purchase Motivations(What Shoppers Desire When They Buy Each Segment)
Shopper Decision Tree - Purchase Motivations(What Shoppers Desire When They Buy Each Segment)
B E E RB E E RWineWine Hard LiquorHard Liquor
•Very Light Taste•Very Low Calorie
•Non-”Beer-y”•Low Carb Premium/
Above Premium
•Light Taste•Fewer Calories
•Brand Loyalty•Full Taste
•Traditional Alcohol Content
•For Particular Occasion
•More Impulse•Unique Style &
Flavor•Low Concern for
Calories
•Style•Not “Mass Produced”•Something
Different•No Calorie or Carb Concern
FABFAB
Super-LightSuper-Light
•Want Recognized Brand Name but Less Brand Loyal•Domestic but Special / Different•Little Calorie Concern
PremiumRegular
PremiumRegular
Traditional Beer
DomesticSpecialtyDomesticSpecialty
ImportsImports
•Brand Loyalty•Higher Alc
Content•Smaller Pack
Size
Value
LightLight RegularRegular
High Alcoho
l
High Alcoho
l•Faster paced consumption experience
•Brand Loyalty•Don’t seek “new
or different”•Household
Replenishment
•Brand Loyalty•Household
Replenishment
MaltMalt
Energy / High
Alcohol
Energy / High
Alcohol
TraditionalValuePremium
LightPremium
Light
Craft/MicroCraft/Micro
•Mexican: Brand Loyalty, Bottles, Lighter Style, Imported
•European, Australian, & Canadian: Style, Imported, Less Brand Loyal
•Faster paced consumption experience
•Aspirational•Intimate Socializing
•Sophistication
•Fashion & Style•“Take Things Up A Notch”
•New flavors, recipes
•Most Popular Alcohol Beverage•Unpretentious
•Casual
Source: A-B In-Store Decision Tree Study, 2005
Shopper Decision Tree - Channel Skews(Where Segment’s Shoppers Skew)
Shopper Decision Tree - Channel Skews(Where Segment’s Shoppers Skew)
B E E RB E E RWineWine Hard LiquorHard Liquor
Grocery and Clubs
Premium/Above Premium
All Channels
C-StoresGrocery
Grocery Clubs
FABFAB
Super-LightSuper-Light
Grocery
PremiumRegular
PremiumRegular
Traditional Beer
DomesticSpecialtyDomesticSpecialty
ImportsImports
C-Stores
Value
LightLight RegularRegular
High Alcoho
l
High Alcoho
lC-Stores
GroceryMass Merch
C-Stores
MaltMalt
TBD
Energy / High
Alcohol
Energy / High
Alcohol
TraditionalValuePremium
LightPremium
Light
Craft/MicroCraft/Micro
Mexican: Grocery
European, Australian, & Canadian: Grocery
Grocery, Clubs, Wine Stores Grocery, Liquor Stores
Source: A-B In-Store Decision Tree Study, 2005
Shopper Decision Tree - Importance of Price/DealShopper Decision Tree - Importance of Price/Deal
B E E RB E E RWineWine Hard LiquorHard Liquor
Premium/Above Premium
FABFAB
Super-LightSuper-Light
PremiumRegular
PremiumRegular
Traditional Beer
DomesticSpecialtyDomesticSpecialty
ImportsImports
Value
LightLight RegularRegular
High Alcoho
l
High Alcoho
l
MaltMalt
Energy / High
Alcohol
Energy / High
Alcohol
TraditionalValuePremium
LightPremium
Light
Craft/MicroCraft/Micro
Price Importance Index: n/a
Price Importance Index: 69
Price Importance Index: 202
Price Importance Index: 163
Price Importance Index: 135
Price Importance
Index: n/a
Price Importance Index: 60
Price Importance Index:
Mexican: 73
Euro/Aus/Can 74
Price Importance Index: 69
Price Importance Index: 87
Price Importance Index: 104
Price Importance Index: 65
The “Price Importance Index” represents the relative importance of price/deal to each segment’s buyers. It was calculated by averaging the importance ratings of “on sale” and
“less expensive than other beers” among each segment’s buyers and indexing these versus the average importance of these attributes among the total sample.
Color Key: Low Average High
Source: A-B In-Store Decision Tree Study, 2005
Decision Tree ApplicationsDecision Tree ApplicationsFeature Ad Strategy ImplicationsAssortment Strategy ImplicationsSpace and Flow Implications
Price SensitivityMALT
LIQUOR
VALUELIGHT
VALUEREGULAR
PREMIUMLIGHT
LoyaltyTo Segment
PREMIUMREGULAR
SUPER LIGHT
IMPORTS
DOMESTICSPECIALTY
FABsMICROS
High Segment LoyaltyHigh Price Sensitivity• Feature often to:
Grow/maintain shopper loyaltyCreate/maintain status as “beer
destination”• Carry wide assortment
High Segment LoyaltyLow Price Sensitivity• Don’t need to feature as often• Carry wider assortment for higher
share segments• Carry narrower assortment for lower
share segments
Low Segment LoyaltyLow Price Sensitivity• Feature occasionally to:
Generate incremental volumePromote trade-upCreate variety perception
Low Segment LoyaltyHigh Price Sensitivity• EDLP• Narrow Assortment
12%+ $ share 6-10% $ share 2-5% $ share <2% $ share
Assortment and Feature Strategy GuideAssortment and Feature Strategy Guide
Shopper Decision Tree ImplicationsFeature Ad Strategies
Shopper Decision Tree ImplicationsFeature Ad Strategies
• To drive traffic and increase or maintain shopper loyalty, feature activity should focus on higher share, more loyal, and more price sensitive branches of the decision tree.*
In most channels, Premium Lights and Value brands should receive the most regular feature ad activity.
Rotate promotions of brands within “branches” of tree, according to their relative fair share, to appeal to particular brand buyers within each branch.
• To drive incremental volume and encourage trade-up, feature lower share, less loyal and less price sensitive branches less frequently.
In most channels, Imports, Micros, Domestic Specialties, and FABs should receive proportionally less feature activity.
Use these segments tactically, considering your account’s beer category strategy and shopper base.
* see appendix for shares by branch
• Consider a “Super Lights” section... If chain or cluster of stores is frequented by female, older, higher
income shoppers. At Club stores (where this segment skews highest due to female/high
income shopper base).
• Consider a separate Energy/High Alcohol section… At C-Stores (where this segment is likely to skew high due to 21-27
male shoppers), or if chain or cluster of stores is frequented by 21-27 males.
If these new products are introduced and gain momentum at your chain.
Use appropriate signage or section marker to draw attention to it.
• When new items are introduced, items in lowest share branches of tree should be scrutinized for de-listing to create space for new item(s).
CDT should be used only as a starting point in these decisions. Work with RSM group to make fact-based add / retain / delete
decisions.
Shopper Decision Tree ImplicationsAssortment / Distribution Opportunities
Shopper Decision Tree ImplicationsAssortment / Distribution Opportunities
Shopper Decision Tree ImplicationsSpace and Merchandising Flow Strategies
Shopper Decision Tree ImplicationsSpace and Merchandising Flow Strategies
• Don’t rely exclusively on CDT for shelf set / flow decisions. Use your knowledge of the category and your customer’s business
to make the right fact-based recommendations. Enlist the help of your Category Manager, Category Space
Managers, and Shopper Insights teams to help make decisions.
• In general, place highest share branches of the decision tree near the center of the section.
Draw shoppers into section and expose them to maximum “real estate” in the aisle.
• Size of tree “branches” in terms of share should be considered in determining relative number of facings for each branch.
• Consider using permanent signage or fixtures to designate sections according to major branches of the CDT.
APPENDIXAPPENDIX
DECISION TREES BY CHANNELGrocery
ConvenienceMass Merch
ClubDrug
SHARES BY CHANNELCase Volume Shares
Dollar Shares
SEGMENT SWITCHINGShare of Requirements by Segment
“Second Choice” Segments
BACKGROUND AND METHODOLOGY
Decision Trees by ChannelDecision Trees by ChannelGroceryC-StoresMass MerchClubsDrug Stores
Beer Shopper Decision Tree: GroceryBeer Shopper Decision Tree: Grocery
= dominant path(s)
= secondary path(s)
Source: A-B In-Store Decision Tree Study, 2005
Based on Shoppers,
not Volume!B E E R100%
B E E R100%
FAB3%
FAB3%
Super-Light6%
Super-Light6%
PremiumRegular
14%
PremiumRegular
14%
Traditional Beer94%
DomesticSpecialty 5%
DomesticSpecialty 5%
Imports16%
Imports16%
Light6%
Light6%
Regular9%
Regular9%
High Alcoho
l<1%
High Alcoho
l<1%
Malt1%
Malt1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue16%
Premium Light32%
Premium Light32%
Craft/Micro 7%
Craft/Micro 7%
Premium/Above Premium
77%
Value17%
Beer Shopper Decision Tree: C-StoresBeer Shopper Decision Tree: C-Stores
= dominant path(s)
= secondary path(s)
Source: A-B In-Store Decision Tree Study, 2005
Based on Shoppers,
not Volume!B E E R100%
B E E R100%
FAB4%
FAB4%
Super-Light2%
Super-Light2%
PremiumRegular
27%
PremiumRegular
27%
Traditional Beer98%
DomesticSpecialty 2%
DomesticSpecialty 2%
Light3%
Light3%
Regular13%
Regular13%
High Alcoho
l2%
High Alcoho
l2%
Malt12%Malt12%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue16%
Premium Light25%
Premium Light25%
Craft/Micro <1%
Craft/Micro <1%
Premium/Above Premium
69%
Value29%
Imports12%
Beer Shopper Decision Tree: Mass MerchBeer Shopper Decision Tree: Mass Merch
= dominant path(s)
= secondary path(s)
Source: A-B In-Store Decision Tree Study, 2005
Based on Shoppers,
not Volume!B E E R100%
B E E R100%
FAB4%
FAB4%
Super-Light6%
Super-Light6%
PremiumRegular
14%
PremiumRegular
14%
Traditional Beer94%
DomesticSpecialty 3%
DomesticSpecialty 3%
Imports12%
Imports12%
Light13%
Light13%
Regular11%
Regular11%
High Alcoho
l<1%
High Alcoho
l<1%
Malt<1%Malt<1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue24%
Premium Light35%
Premium Light35%
Craft/Micro 2%
Craft/Micro 2%
Premium/Above Premium
70%
Value24%
Beer Shopper Decision Tree: Club StoresBeer Shopper Decision Tree: Club Stores
= dominant path(s)
= secondary path(s)
Source: A-B In-Store Decision Tree Study, 2005
Based on Shoppers,
not Volume!B E E R100%
B E E R100%
FAB1%
FAB1%
Super-Light11%
Super-Light11%
PremiumRegular
17%
PremiumRegular
17%
Traditional Beer89%
DomesticSpecialty 1%
DomesticSpecialty 1%
Imports15%
Imports15%
Light4%
Light4%
Regular<1%
Regular<1%
High Alcoho
l1%
High Alcoho
l1%
Malt<1%Malt<1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue
4%
Premium Light46%
Premium Light46%
Craft/Micro 4%
Craft/Micro 4%
Premium/Above Premium
84%
Value5%
Note: Skews higher in Clubs than in any other channel (due
to high in come female shopper base)
Beer Shopper Decision Tree: Drug StoresBeer Shopper Decision Tree: Drug Stores
= dominant path(s)
= secondary path(s)
Source: A-B In-Store Decision Tree Study, 2005
Based on Shoppers,
not Volume!B E E R100%
B E E R100%
FAB2%
FAB2%
Super-Light2%
Super-Light2%
PremiumRegular
25%
PremiumRegular
25%
Traditional Beer98%
DomesticSpecialty 2%
DomesticSpecialty 2%
Imports15%
Imports15%
Light8%
Light8%
Regular18%
Regular18%
High Alcoho
l2%
High Alcoho
l2%
Malt<1%Malt<1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue26%
Premium Light25%
Premium Light25%
Craft/Micro <1%
Craft/Micro <1%
Premium/Above Premium
69%
Value29%
Shares by ChannelShares by ChannelCase and Dollar Shares
GroceryC-StoresDrug Stores
Case Shares: Grocery Case Shares: Grocery
Source: InfoScan 12 mos ending 10/05
• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Domestic Specialties, FABs, Value brands, and “Super Lights” should receive proportionally less feature activity than Premiums and Imports. Use these segments tactically, considering your account’s beer category strategy and shopper base.
B E E R100%
B E E R100%
FAB2%
FAB2%
Super-Light4%
Super-Light4%
PremiumRegular
14%
PremiumRegular
14%
Traditional Beer95%
DomesticSpecialty 4%
DomesticSpecialty 4%
Imports13%
Imports13%
Light12%
Light12%
Regular10%
Regular10%
High Alcoho
l3%
High Alcoho
l3%
Malt1%
Malt1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue22%
Premium Light33%
Premium Light33%
Craft/Micro 3%
Craft/Micro 3%
Premium/Above Premium
69%
Value26%
• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Imports should receive the majority of Grocery feature ad activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.
Dollar Shares: Grocery Dollar Shares: Grocery
Source: InfoScan 12 mos ending 10/05
• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Domestic Specialties, FABs, Value brands, and “Super Lights” should receive proportionally less feature activity than Premiums and Imports. Use these segments tactically, considering your account’s beer category strategy and shopper base.
B E E R100%
B E E R100%
FAB4%
FAB4%
Super-Light5%
Super-Light5%
PremiumRegular
13%
PremiumRegular
13%
Traditional Beer94%
DomesticSpecialty 4%
DomesticSpecialty 4%
Imports19%
Imports19%
Light8%
Light8%
Regular7%
Regular7%
High Alcoho
l2%
High Alcoho
l2%
Malt1%
Malt1%
Energy / High Alcohol
1%
Energy / High Alcohol
1%
TraditionalValue15%
Premium Light31%
Premium Light31%
Craft/Micro 5%
Craft/Micro 5%
Premium/Above Premium
76%
Value18%
• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Imports should receive the majority of Grocery feature ad activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.
Case Shares: C-Stores Case Shares: C-Stores
Source: InfoScan 12 mos ending 10/05
B E E R100%
B E E R100%
FAB2%
FAB2%
Super-Light2%
Super-Light2%
PremiumRegular
18%
PremiumRegular
18%
Traditional Beer97%
DomesticSpecialty 2%
DomesticSpecialty 2%
Imports7%
Imports7%
Light13%
Light13%
Regular11%
Regular11%
High Alcoho
l4%
High Alcoho
l4%
Malt4%
Malt4%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue24%
Premium Light36%
Premium Light36%
Craft/Micro 1%
Craft/Micro 1%
Premium/Above Premium
65%
Value32%
• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Imports, Domestic Specialties, FABs, and “Super Lights” should receive proportionally less C-Store promotional activity than Premiums. Use these segments tactically, considering your account’s beer category strategy and shopper base.
• To drive traffic and maintain shopper loyalty, promotional activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and traditional Value brands should receive the majority of C-Store promotional activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.
Dollar Shares: C-Stores Dollar Shares: C-Stores
Source: InfoScan 12 mos ending 10/05
B E E R100%
B E E R100%
FAB3%
FAB3%
Super-Light3%
Super-Light3%
PremiumRegular
18%
PremiumRegular
18%
Traditional Beer97%
DomesticSpecialty 1%
DomesticSpecialty 1%
Imports10%
Imports10%
Light10%
Light10%
Regular8%
Regular8%
High Alcoho
l3%
High Alcoho
l3%
Malt3%
Malt3%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue18%
Premium Light38%
Premium Light38%
Craft/Micro 1%
Craft/Micro 1%
Premium/Above Premium
73%
Value24%
• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Imports, Domestic Specialties, FABs, and “Super Lights” should receive proportionally less C-Store promotional activity than Premiums. Use these segments tactically, considering your account’s beer category strategy and shopper base.
• To drive traffic and maintain shopper loyalty, promotional activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and traditional Value brands should receive the majority of C-Store promotional activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.
Case Shares: Drug Case Shares: Drug
Source: InfoScan 12 mos ending 10/05
• To drive incremental volume and profit, feature lower share branches, but less frequently. Imports, “Super Lights”, Domestic Specialties, FABs, Value brands, and Value Regulars should receive proportionally less feature activity than Premium Regulars and Value Lights. Use these segments tactically, considering your account’s beer category strategy and shopper base.
B E E R100%
B E E R100%
FAB1%
FAB1%
Super-Light3%
Super-Light3%
PremiumRegular
16%
PremiumRegular
16%
Traditional Beer97%
DomesticSpecialty 2%
DomesticSpecialty 2%
Imports15%
Imports15%
Light15%
Light15%
Regular12%
Regular12%
High Alcoho
l4%
High Alcoho
l4%
Malt1%
Malt1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue27%
Premium Light31%
Premium Light31%
Craft/Micro 1%
Craft/Micro 1%
Premium/Above Premium
65%
Value32%
• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Value Lights should receive the majority of feature ad activity in most Drug stores. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.
Dollar Shares: Drug Dollar Shares: Drug
Source: InfoScan 12 mos ending 10/05
B E E R100%
B E E R100%
FAB2%
FAB2%
Super-Light3%
Super-Light3%
PremiumRegular
16%
PremiumRegular
16%
Traditional Beer97%
DomesticSpecialty 3%
DomesticSpecialty 3%
Imports19%
Imports19%
Light10%
Light10%
Regular9%
Regular9%
High Alcoho
l3%
High Alcoho
l3%
Malt1%
Malt1%
Energy / High Alcohol
<1%
Energy / High Alcohol
<1%
TraditionalValue19%
Premium Light31%
Premium Light31%
Craft/Micro 2%
Craft/Micro 2%
Premium/Above Premium
74%
Value23%
• To drive incremental volume and profit, feature lower share branches, but less frequently. Imports, “Super Lights”, Domestic Specialties, FABs, Value brands, and Value Regulars should receive proportionally less feature activity than Premiums and Value Lights. Use these segments tactically, considering your account’s beer category strategy and shopper base.
• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Value Lights should receive the majority of feature ad activity in most Drug stores. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.
Loyalty and SwitchingLoyalty and SwitchingShare of Requirements by Segment“Second Choice” Segments
WineWine Hard LiquorHard Liquor
Share of Requirements and Second ChoicesAmong “Most Often” Buyers of Segment
Share of Requirements and Second ChoicesAmong “Most Often” Buyers of Segment
How to read: Few buyers are 100% loyal to any one segment, but they do have “most often” preferences. For example, those who say their “most often” brand is a Premium Light brand, on average, give 83% of their beer volume to Premium Lights. When they are not buying Premium Lights, they are next most likely to buy either Premium Regulars or Imports.
Source: A-B Shopper Poll, 2005
B E E RB E E R
FAB70%FAB70%
Super-Light68%
Super-Light68%
PremiumRegular
71%
PremiumRegular
71%
Traditional Beer
DomesticSpecialty 69%
DomesticSpecialty 69%
Imports70%
Imports70%
Light80%
Light80%
Regular69%
Regular69%
High Alcoho
l65%
High Alcoho
l65%
Malt51%Malt51%
Energy / High Alcohol
na
Energy / High Alcohol
na
TraditionalValuePremium
Light83%
Premium Light83%
Craft/Micro 68%
Craft/Micro 68%
Premium/Above Premium
Value
Premium Lights
Imports ImportsPremium Lights
Premium Lights
Premium LightsMicros
Premium Regulars
Premium Regulars
Premium RegularsPremium Lights
Premium RegularImports
Wine23%Wine23%
Hard Liquor25%
Hard Liquor25%
Share of Requirements and Second ChoicesAmong Avg. Past Week Buyers of Segment Share of Requirements and Second ChoicesAmong Avg. Past Week Buyers of Segment
How to read: A typical past week buyer of Craft/Micro beer gives 48% of his beer volume to Craft/Micros. He is most likely to also have Premium Lights in his purchase mix.
Source: A-B Shopper Poll, 2005
B E E R52%
B E E R52%
FAB54%FAB54%
Super-Light63%
Super-Light63%
PremiumRegular
63%
PremiumRegular
63%
Traditional Beer
DomesticSpecialty 52%
DomesticSpecialty 52%
Imports53%
Imports53%
Light65%
Light65%
Regular59%
Regular59%
High Alcoho
l59%
High Alcoho
l59%
Malt48%Malt48%
Energy / High Alcohol
na
Energy / High Alcohol
na
TraditionalValuePremium
Light74%
Premium Light74%
Craft/Micro 48%
Craft/Micro 48%
Premium/Above Premium
Value
Premium Lights
Premium LightsPremium LightsPremium Lights
Premium Lights
Premium Lights
Premium Regulars
Premium RegularsPremium Lights
Premium LightsPremium Lights
Premium RegularImports
Decision Tree MethodologyDecision Tree Methodology
Comparison of Common CDT MethodologiesComparison of Common CDT Methodologies
A-B uses in-store intercepts where legal to construct the beer shopper decision tree because they reveal more accurate decision
factors at the point of purchase.
Anheuser-Busch CDT MethodologyAnheuser-Busch CDT Methodology
• Sample Composition ~2,000 in-store interviews with beer shoppers
Grocery, C-Store, Mass Merch, Club, and Drug channels represented
Survey collected attitudinal, behavioral, transactional, and demographic information
• Time Frame and Geography Interviews took place from Fall of 2004 – Summer of 2005
Geographic dispersion throughout major US markets (FL, AZ, OH, IL, TX, IN, MI, CA)
Source: A-B In-Store Decision Tree Study, 2005
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