Europe’s Fastest Growing Online Market Research Agency
• Established in 1999
• 150+ Research professionals
• 200+ Leading clients
• Projects in more than 50 countries worldwide
• Offices in Hamburg, Rotterdam, London, Madrid, Paris and New York
• European panel of 850.000 consumers and global access (GER: 130.000)
SHOPPER
As Close as Being There
We believe that the key to successful shopper research:replicating reality as closely as possible, in conjunction with‘being there, capturing the moment’
Scan product
Online shelves:•Zoom in / zoom out•Pick up / place back•3D rotation•Shopping cart functionality•Feature cards•With / without pricing
At home online surveys
My Tasks
Buy Shampoo
Preparing dinner?Maak een foto of een serie foto’s van de bereiding van uw dagelijkse hoofdmaaltijdTrack Heineken!Maak gedurende 1 dag foto’s van alles waar u Heineken tegenkomt.Buy a shampoo?Maak een foto of een serie foto’s het kopen van shampoo. U kunt ook een toelichting toevoegen
Clothing trendsMaak een foto of een serie foto’’s van alle dingen waar u trots op bent
Real-time ReportingiPhone/Android app
Shopper- Benefits
• Customised SHOPPER provides a Category Manager solution tailored and customised around your needs
• Fully Evaluative Offering a well-rounded perspective with evaluative and diagnostic qualitative and quantitative feedback
• Latest Techniques Including a suite of state-of-the-art online techniques, visually appealing and motivating with normative database and in-house design expertise
• Delivers the base for Growth Provides a solid foundation for improving Product and Category performance at the place of purchase
• Proven Methodology Chosen by numerous key FMCG’s around the world
PACT©
SHOPPER
Offering solutions for a broad range of Category Manager questions
SHOPPER© 7
MetrixLab’s SHOPPER SUITE©
Shopper segmentation
Orientation & SDT
Assortment & Range
optimization
Packaging, POS & Pricing
What different types of shoppers can be
distinguished in my category and what does that mean for
me?
What is the shopper decision process and what does that mean for the optimal shelf
configuration?
How can I optimize my assortment or range to maximize reach &
profit?
What is the effect of a new packaging, POS
material or price changes/promotions
on my performance at the point of purchase?
• Orientation Process
mapping
• Unveil (unconscious)
shopper decision tree
(SDT) by out of stock
simulation
• Evaluation of
alternative shelf
configurations
• TURF or conjoint
exercise
• Optimize assortment
to fulfill needs of
different segments
• Optimize
assortment/range to
maximize reach
• Holistic methodology
for pack testing: shelf
impact,
communication &
business impact
• Market simulation
models based on
conjoint methodology
• Segmentation based
on main purchase
criteria
• Segmentation based
on shopping attitudes
or behavior
• From consumer to
shopper
SHOPPER© 8
Shopper orientation & Shopper Decision Tree information is used to demonstrate category leadership and optimize shelf configuration
Orientation & SDT
What is the shopper decision process and what does that mean for the optimal shelf
configuration?
• Orientation Process
mapping
• Unveil (unconscious)
shopper decision tree
(SDT) by out of stock
simulation
• Evaluation of
alternative shelf
configurations
Shopper Orientation & SDT
is about understanding the path to purchase:- Level of planning- Type of planning- Orientation activities- Store choice drivers- In-store influencers
Shopper Decision Tree: selecting the product when in front of the shelf (or online store)
Information is used to optimize trade marketing plans, demonstrate category leadership and optimize the shelf
Mapping the path to purchase
Using ‘drag&drop’ we let recent shoppers select those activities that occurred during their path to purchase, and the order in which they occurred. Next, we let them indicate how instrumental they were in making a decision.
Planned purchase (60%) Impulse Buy (40%)
What triggered the purchase?
Seeing the product in the store
Promotion
Seeing other people own/use it
Hearing/reading about it
Seeing an online ad
Specific functional need
Old one broke
What sort of planning activities / where?
At home Store selection
In-store
Online price check
spec check
Recommendations
Info gathering store visits
Offer
Prices
Distance
Quality / staff
Reliability
In-front of shelf decision making best replicated through CDT
exercise
Shelf cards
Pack info
Staff recommendation
10
Shopper Decision Tree – understanding the decision making process in front of the shelf
• The objective is to understand what happens in the mind of consumers when in front of the shelf, buying a product. It is about understanding the trade-offs that consumers make – and understanding which type of decision criteria (product characteristics) are most relevant in making a final choice
• The SDT (Shopper Decision Tree) analysis derives the importance of product characteristics when making a purchase. Stated importance measures are at risk of over-rationalization
• The information is mostly applied to the shelf organization (planogram) with an eye on maximizing ease of shopping, up-selling and trial behavior
11
The SDT is derived through an out-of-stock exercise
• The SDT is derived through an Out-Of-Stock exercise. This is a 2-step iterative process
1. Shoppers are asked to explore the shelf and select the products that they have actually purchased in the last week / on last shopping trip.
2. For each product that they purchased, they are confronted with an imaginary out-of-stock situation. They are asked which product from the shelf they would have purchased instead. This step is repeated up-to 5 times and ends when they would no longer buy or go to a different store
12
Resp.1
Resp.1
Resp.1
Resp.2
Resp.3
Initialchoice
1streplacement
2ndreplacement
3rdreplacement
4threplacement
5threplacement
XX
XX
Resp.3 X
The trade-offs that shoppers make reflect the importance of specific product characteristics. The level of loyalty to these underlying dimensions is indicative of their importance
13
SDT output example• In this example for cheese, we see that consumers are primarily driven by the origin
of the cheese and intended usage application, when buying cheese. These should be the two main dimensions for organizing the shelf
Attribute Explanation Rank # Importance%
Origin Domestic cheese; Foreign cheese 1 95%
Application On bread; In a meal; In-between snack 2 89%
VariantSliced cheese; Block cheese;
Spreadable; Cubes 3 63%
Brand type A-brand; Private Label, Fancy Label 4 61%
Absolute priceHigh (> €5); Medium (€2,50-5,00);
Low (< €2,50) 5 58%
Pack typeFoil Wrap; Hard Case; Plastic Cup;
Alu Foil 6 57%
Relative priceHigh (> €15/kg); Medium (€10-15/kg);
Low (< €10/kg) 7 30%
Age/Flavor Aged; Ripe; Young; Grass; Soft; Fresh; With herbs; Raw Milk 8 25%
Specific brandPresident; Arla; Philadelphia;
La Vache; 9 21%
14
SDT: output applied to optimization of shelf lay-out
1. Origin
Meal preparation and topping
2.
Ap
plicati
on
PL
A-B
ran
d
On bread In-between snack
Domestic Foreign
Raw
Mil
k
Soft
Ch
eese
Sp
read
ab
leBlock Sliced
Online Shelf Buy Test for business case development• The objective of the Online Shelf Buy Test is to build a business case for a specific shelf lay-out by
quantifying the projected revenue.
• It allows retailers and manufacturers to quickly and efficiently test the impact of alternative shelf lay-
outs, category compositions, pack sizes and POS-materials.
• Respondents are asked to shop the shelf as they normally would, imaging it is the newly organized
shelf in the store where they normally shop.
• The solution is scalable, allowing for revenue projections of multiple alternative shelves.
SHOPPER© 16
Assortment and range build-up optimization can have a significant direct impact on efficiency
Assortment/ Range
optimization
How can I optimize my assortment or range to maximize reach &
profit?
• TURF or conjoint
exercise
• Optimize assortment
to fulfill needs of
different segments
• Optimize
assortment/range to
maximize reach
Assortment / Range Optimization
Is about determining the optimum size and composition of a range at category or brand level
Appropriate tools include:- Value Perception Test - Out-of-stock Game- MaxDiff- Shelf Buy Test
SHOPPER© 17
Range build-up perceptions often demonstrate poor understanding of how ranges are actually built-up
Lowest price Highest price
78%
75%
72%
65%
56%
44%
Ideal Store
Specialty Shop
Farmer’s Market
SupermarketSelf-serve
SupermarketDeli
SupermarketFresh-chilled
Lowest quality Highest quality
• Drag & drop question type is used to map product ranges or stores on a price/value line or a quality
line.
Range Optimization questions invariably zoom in on questions around perceived differentiation and added reach/frequency
• Range Composition at the category and brand level questions are very relevant – as they can have a
significant impact on cost of operations and missed opportunities
• Tools include TURF, Out-of-Stock and MaxDiff
• Key measures are additional reach, frequency/variance and differentiation
SHOPPER© 19
Shopper Marketing Mix Optimization can have a significant direct impact on sales
Packaging, POS & Pricing
What is the effect of a new packaging, POS
material or price changes/promotions
on my performance at the point of purchase?
• Holistic methodology
for pack testing: shelf
impact,
communication &
business impact
• Market simulation
models based on
conjoint methodology
-Shopper Marketing Mix Optimization
Optimization of packaging and pricing can be among the most effective instruments for improving margins and contributing to the bottom line
Appropriate tools include:- PACT Design Test- CBC Choice Based Conjoint- POS Materials evaluation
20
Our pack design testing solution is seen as best-in-class by many designers because it very actionable
Search Evaluate Decide Consider
Stopping Power shelf test
Brand & ProductIdentification Test
Focus TrackerDesign Hierarchy Test
Category Purchase Drivers
Brand Values Product Benefits
Find-Time shelf test
First Impression(KPI)
Overall Pack Appeal(KPI)
Purchase Intent(KPI)
Dot Techniquedesign likes/dislikes
Preference from the shelf
OR
The Focus Tracker technique can be applied to understand how consumers scan the shelf – helpful when testing alternative lay-outs or POS materials
PACT© 22
36% 11% 44% 38% 45% 35%=picked up..%
65%
48%
60%
57% Display A
Display B
Ring C
Label D
Base case: no POS
POS material can have a significant impact on stopping power (measured in % picked up from shelf)
Without any POS material 44% of people
buy this blenderThis increases as
follows with various different placements of
POS material: in, and around.
A. Behind product 1.
B. Behind product 2.
C. Inside product
D. Attached to handle
Choice Based Conjoint - used for ‘what-if’ scenario analysis for price and promo optimization
• Repetitive choice exercise in which respondents trade-off products, prices and promotions. The output feeds into a
market simulator which is used to project the impact of price and promo changes.
End Slide
New Product Development & Innovation
UK Contact :
Chris Kingsland
+ 44 (0) 20 3178 6277 Direct+ 44 (0) 7958 332 764 [email protected]