• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Shopper Decision Making Process
 

Shopper Decision Making Process

on

  • 2,770 views

 

Statistics

Views

Total Views
2,770
Views on SlideShare
2,043
Embed Views
727

Actions

Likes
3
Downloads
120
Comments
0

6 Embeds 727

http://ecr-all.org 638
http://www.ecr-all.org 73
http://dev.ecr-all.sinijkit.ru 9
http://translate.googleusercontent.com 5
http://www.google.com 1
http://131.253.14.66 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Shopper Decision Making Process Shopper Decision Making Process Presentation Transcript

    • scrutiny auto-pilot Decoding the Shopper Decision Making process… Soulla Kellas ECR Baltics Forum, November 5th 2008 Confidential & Proprietary • Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Key Points for Debate • Shopper Behaviour in the Baltics; is the shopper any different to shoppers in other markets? • Shoppers are increasingly in grab ‘n’ go mode but is this so for all categories? • Is there a need for different strategies for the same category across markets? Page 2 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Shopper Behaviour in the Baltics. Is the shopper any different to shoppers in other markets? Page 3 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • The Shopper in the Baltics now has more choice … Modern trade is growing… now captures 90% of all household expenditure. A lot more choice in-store! Discounters are well entrenched… especially so in Estonia (1 in 3 shoppers claim to spend most of their grocery budget in such stores). Broader price options ! Private labels are in… almost 100% awareness and over 70% purchase (P4W; more so Lithuanians). More choice on shelves! Loyalty cards are adopted; over half of all shoppers now have one… offer choice to shoppers to develop privileged relationships with stores! Source: Nielsen Shopper Trends 2008 Page 4 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Attitudes towards Private Labels and Promotions … • 2/3 of global shoppers consider • Promotions have little impact in private label brands to be a good switching stores across Europe alternative to manufacturer brands • less so across the Baltic’s and key • The Baltic’s shopper is a bit more CEE markets where there is limited use skeptical versus their Western of cars European counterparts BUT there is • Greater interest to search for fast growth promotions in stores normally visit • Views are divided as to whether • Latvians are generally more private label brands offer real value for Influenced by promotions (30% seek money. them out within store) • Stronger link with store image Source: Nielsen Shopper Trends 2007/2008 Page 5 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Convenience, Convenience and Convenience … MOSCOW ESTONIA Rest EU LATVIA LITH HUN CZ PL Everything I need in one shop 3 1 1 2 3 4 3 2 Convenient to get to 1 3 2 1 1 1 14 Always have in stock 4 2 3 3 5 Well presented display of products 4 4 7 Pleasant store environment 3 3 High quality of fresh food 2 4 Source: Nielsen Shopper Trends 2007/2008 Page 6 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Large proportion of shoppers reach the store on foot BUT use of car is increasing rapidly… % 60 57 54 50 46 40 36 32 28 Lithuania 30 24 Latvia 20 Estonia 9 10 7 0 On Foot Car/van Public trans Source: Nielsen EQ Syndicated 2007 Page 7 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Shoppers are increasingly in grab ‘n’ go mode Page 8 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Today’s consumer knows a lot more…  Complexretail and media environments  Consumers inundated with marketing information  More in-store choice … but has less time to choose Page 9 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Result: Shoppers are on auto-pilot mode Thousands of brands in their heads Auto-pilot Auto Pilot No time to think Omega  rules about them behaviour Page 10 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • But auto-pilot shopping mode does get disrupted Habitual pathways are challenged and consumers enter a dynamic zone We define these inflection points as Delta Moments  Delta Moments  provide marketers the window of opportunity to trigger behavior change Page 11 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Delta Moments  get activated by pre-store and in-store triggers PRE-STORE IN-STORE Advertising Notice new brands Price / variants comparison Merchandizing Packaging Buzz Product Promotions Browsing Family preference Page 12 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Shoppers are increasingly in grab ‘n’ go mode, but is this so for all categories? Page 13 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Autopilot-Delta Moment  dynamics vary significantly across categories… auto-pilot Are shoppers in grab ‘n’ go mode? Do they buy the same one as they always do?  Omega Shoppers experimental Or do they engage in scrutiny mode shopping? compare prices, look out for promos, browse through packs Are they open to new information? advertising, buzz  Delta Shoppers Page 14 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Example Data: Which categories are shoppers browsing in autopilot or experimental mode? experimental auto-pilot Category Exp Index Category Exp Index Category Exp Index Category Exp Index Chocolate Bars Functional 156 Beer 117 97 Ice Tea 78 and Wafers candies Butter & Sweet Biscuits 152 Vodka 112 Mineral Water 94 66 Margarine Carbonated Coffee innovation, Chocolate Tablets 128 Soft Drinks 112 Tea 92 Grab (Ground) and go; 64 advertising and check stocks Sports / buzz. 126 Juices and Drinks Energy Drinks 112 Ice Cream 92 Pasta and do not 52 Position in change shelf prominent Chips & Crisps 121 Yoghurts 109 Dry Soups 92 position 47 Mayonnaise shelves Pralines 105 Breakfast Cereals 92 Processed 99 Coffee (Instant) 89 Indexed to Food Norm Cheese >120: Above Norm 80-120: Parity <80: Below Norm Source : Nielsen Shopper Modality Study Poland 2008 Page 15 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Example Data: Which categories are shoppers more experimental and with low involvement ? high traction super slippery Maintain ad spend Constantly keep INVOLVEMENT Tea for leader consumers engaged to ward off threat with Tough to win them advertising, buzz, new Vodka Coffee (Ground) back introductions, 13.0 Butter & Margarine Coffee (Instant) packaging Juice & Drinks and exciting Yoghurts promos Tablets Chocolate Pralines Pasta Breakfast Cereals Canned Vegetables Ice Cream ChallengingMineral Water Mayonnais e to Sweet Biscuits displace brand In-store activity ; Energy & Sport Drinks Dry Soups leaders. price and promos Beer Processed Cheese Chocolate Avoid radical brand canChips & Crisps easily tip Bars & Wafers repositioning Ice Tea consumers over super traction Functional Candies Carbonated Soft Drinks slippery 3.0 14 24 34 44 Source : Nielsen Shopper Modality Study Poland 2008 EXPERIMENTATION Page 16 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Example Data: Which shopping behavior is prevalent in each category? Family preference Variety Bargain In-store Buzz Advertising activated Seekers hunters browsers activated activated CSD 122 98 117 83 105 101 Processed Cheese 136 130 115 119 83 102 Juices 131 73 110 105 86 120 Chocolate Bars 106 153 99 121 94 113 Chips/Crisps 102 121 108 124 90 100 Chocolate Tablets 109 99 93 102 91 77 Beer 76 99 89 62 175 113 Butter & Margarine 57 97 117 104 78 80 Instant Coffee 89 79 124 73 119 100 Indexed to Food Norm Source : Nielsen Shopper Modality Study Poland 2008 >120: Above Norm 80-120: Parity <80: Below Norm Page 17 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Is there a need for different strategies for the same category across markets? Page 18 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Example Data: Are shoppers browsing categories in autopilot or experimental mode? The Czech Category Poland Hungary Republic Juices and 126 118 131 Drinks Chips & Crisps 121 101 107 Carbonated Soft Drinks 112 137 98 Mineral Water 94 92 104 Ice Tea 78 101 111 Indexed to Food Norm >120: Above Norm 80-120: Parity <80: Below Norm Source : Nielsen Shopper Modality study across the CEE 2008 Page 19 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Example Data: Which shopping behavior is prevalent in the Juice and Fruit Drinks category across markets? Variety Advertising Buzz Family preference Bargain In-store Seekers activated activated activated hunters browsers Poland 73 120 86 131 110 105 Hungary 113 59 87 109 96 74 The Czech Republic 89 90 80 114 99 125 Indexed to Food Norm >120: Above Norm 80-120: Parity <80: Below Norm Source : Nielsen Shopper Modality study across the CEE 2008 Page 20 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Example Data: Is the Category (Juices and Fruit Drinks) driven by the same shopper needs across markets? Experimental and high involvement they engage in scrutiny mode shopping… compare prices, browse through packs, and go by kids preference. Common strategy focusing on whole marketing mix activities! But differences on category strategy execution by country •Best to place more focus on above the line advertising (and online ads) in Poland, new product introductions in Czech and Coupons/Specials in Hungary! Page 21 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Summary Is the shopper in the Baltics any different to shoppers in other markets? Not overall; balancing between fast pace of life, increasing choices and limited time… • Reaching store on foot places more pressure on retailers in the Baltics to ensure variety and good stock levels for success Page 22 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Summary Shoppers are increasingly in grab ‘n’ go mode but is this so for all categories? No shoppers evaluate categories differently and therefore there is a need for different strategies. Grab & Go For browsing • categories; High categories allocate For bargain hunting stock levels and more space and categories; stick to shelf stock all variants; eg Display special offers position; eg Processed cheese very visibly; eg Mayonnaise Chocolate bars CSD’s Mineral Water Crisps Butter & Marg. Dry Soups Instant Coffee Page 23 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • scrutiny auto-pilot Summary •Is there a need for different strategies for the same category across markets? Depends on the maturity of the category in each. • CEE shoppers evaluate the Juice and Fruit Drinks category in the same fashion BUT need to refine execution to take on board local shopper needs. This will lead to efficiencies and greater return on investment. Page 24 Confidential & Proprietary Copyright © 2008 The Nielsen Company
    • Paldies Ačiū Tänan Thank you Page 25 Confidential & Proprietary Confidential & Proprietary • Copyright © 2007 The Nielsen Company Copyright © 2008 The Nielsen Company
    • Understanding the Community for Growth Confidential & Proprietary • Copyright © 2008 The Nielsen Company