Maximizing Profits through Shopper Insights in Convenience (CSFA Presentation)
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Maximizing Profits through Shopper Insights in Convenience (CSFA Presentation)

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A presentation given to the Canadian Snack Food Association on Shopper Insights from Convenience Shopper Canada - Canada's only ongoing study of shopper behaviour in convenience channels

A presentation given to the Canadian Snack Food Association on Shopper Insights from Convenience Shopper Canada - Canada's only ongoing study of shopper behaviour in convenience channels

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  • Household Groceries....are #4 (in total) after Lottery Tickets....
    Many companies focus on the on the go purchase for immediate consumption
    What about taking advantage of the basic grocery grab? And stop the bleeding of these trips that are going to Grocery....
    -What about the Quick Meal Tonight?
    -Or the Snack at Home?
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  • Thank you very much for inviting me here to speak today – especially at such a wonderful location I am going to talk about a topic I like to talk about and one that I think a lot about – convenience shopping And hopefully share with you some insights that can help you with your business and help you support your retail customers To give a brief background – in March this year Environics launched Convenience Shopper Canada – Canada’s only continuous monitor of sales and shopper activity in Convenience channels – based on over 10,000 consumer interviews – essentially as a category management tool for these channels The information I will share with you today comes from that program
  • But that is not what I want to talk about I ant to talk about shopper insights. That is essentially an understanding of who shoppers are and why and how they are shopping Of course that information alone doesn’t help you. You must be able to take it and work with retailers to develop strategies that are aligned with the objectives of both manufacturer and retailer.
  • These are the categories that drive shoppers to the store. It is important to understand these because the strategy to sell these items is different to items that are bought on impulse. Milk for example is an important driver – and Shoppers Drug Mart makes good use of that …we know from our data that they also get significant secondary sales of dairy, chocolate and salty snacks
  • Those 11 billion sales come from basket sizes of an average of $5 …so if you can get an incremental purchase from a significant number of trips the benefit to sales is dramatic
  • As I said before there is no silver bullet. You really need to have the information and piece it together. Shoppers over 40 tend to buy lottery. Secondary purchases tend to be chocolate and gum and items at the checkout. Because they don’t turn around. If you are selling nuts – an increasingly popular snack for older shoppers – try to have them on the checkout – or at least some communication at the checkout to provide those shoppers an alternative to chocolate

Maximizing Profits through Shopper Insights in Convenience (CSFA Presentation) Maximizing Profits through Shopper Insights in Convenience (CSFA Presentation) Presentation Transcript

  • Maximizing Opportunities in Convenience Channels through Shopper Insights 17 th September 2009
  • The Convenience Lanscape in Canada
    • 23,435 Convenience Stores in Canada
    • 11% of all retail points of sale
    • $11.6 Billion annual sales (excluding tobacco & gas)
  • And drug stores …. Base: Total Trips (9940)
  • Channel Share of Value by Region Base: Total Trips (9940) East (1038) West (2358) Quebec (2202) Ontario (4342)
  • Why do people go to Convenience Stores?
  • Traffic Drivers to Convenience & Gas Q1-Q2 2009 Base: Total Trips (6471)
  • Understand Traffic Drivers
    • Understand what drives people to the store
    • Retailers need to attract shoppers with traffic drivers by floor pricing and assortment
    • But ….
    • Convenience shoppers on average buy 1.14 additional categories
  • Secondary Categories Q1-Q2 2009 Base: Total Trips (6471) More Chocolate & Salty Snacks sold as secondary items than as traffic drivers
  • Shopper Profile Base: Total Trips (9940)
  • Convenience Shoppers The Shopper Josh - aged 19 Goes to 7-11 between classes at UBC Usually buys a single serve CSD The Facts 55% of 7-11 shoppers are under 40 37% of 7-11 shoppers are ‘thirsty’ when they visit and leave the store with a beverage The Challenge 30% of 7-11 beverage shoppers only buy one category 7-11 basket value is 24% lower than the average
  • Convenience Shoppers The Facts 64% of Esso shoppers are male 44% are 40+ 24% of trips are in the morning and 14% are triggered by coffee The Challenge Esso is missing female shoppers Only 4% buy milk at Esso only 7% buy any groceries The Shopper Tim - aged 49 Stops at Esso On The Run Buys coffee in the morning, sometimes lottery ticket
  • Triggering that secondary purchase
  • Understanding Category Interaction 24% of Shoppers who visit a store to buy a single serve CSD also buy salty snacks
  • Need States of Convenience Shoppers
  • Impulse!
  • Decision Making on Convenience Trips
  • Decision Making on Convenience Trips Pricing, assortment & out of store promotion Merchandising, secondary displays and promotion Pricing, merchandising, packaging, out of store communication
  • Who wants yesterday's papers?
  • Decision Making on Convenience Trips
  • Shopper Profile – News/Magazine Buyers Base: Total Trips (9940)
  • Need State Impacts Brand Decision
  • So…..
  • So….
    • Understand the traffic driver …often beverages – but depends on the shopper
    • Understand the secondary purchases
    • Trigger impulse – note the higher impulse categories
    • Work with retailer to develop strategies around this information that work for everyone
  • Thank you