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Stephen Schueler: Non-food as a business engine

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  • At the moment in Russia we have more than 70 brands! Detergent (Washing powder) and fabric softeners Hair care / shampoos and conditioners Personal cleansing (soap) and deodorants Perfumes Baby care, diapers and Feminine protection Some miscellaneous
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  • Промоушен, инициатива

Transcript

  • 1. Non-food as a business engine in Russian Retail Stephen Schueler Procter and Gamble 4 Feb 2011
  • 2. P&G IN RUSSIA
  • 3. Who wants to increase your market share?
  • 4. What determines your ability to drive market share?
  • 5. Your shopper! Top drivers to increase your market share: Attract New Shoppers Build Loyalty of Existing Shoppers Win with High Spenders
  • 6. WHY NON-FOOD CATEGORIES ARE IMPORTANT TO WIN WITH SHOPPERS?
  • 7. 1.Non-Food has strong potential with your existing shoppers Size of the prize = 400 mln.$ for HM channel % of store shoppers buying category in this store (Hypermarkets) food Dairy 59 Juice 49 Cheese 44 Biscuits 46 non-food Hand Dish 28 Fem Care 31 Shampoo 32 Dentifrice 34
  • 8. 2. Non-Food helps shoppers to choose your store for Bulk Shopping Non-food categories are highlighted Top powerful categories that define shoppers’ satisfaction by the store: Value of Bulk trip = 4.7x Value of Refill trip Bulk shopping   Refill shopping Laundry & Home Care Bakery Coffee & Tea Milk& Dairy Shampoo & Shower Fruits & Vegetables Toilet Paper & Towels S oft drinks & Juices Fem Care Cheese Oral Care Fresh Meat & Poultry Fresh Meat & Poultry Snacks Cheese Toilet Paper & Towels Soft drinks & Juices Coffee& Tea Fruits & Vegetables Oral Care
  • 9. How to leverage non-food to win with Your Shopper
    • Three Business Ideas:
    • Improve Shopping experience in Beauty Care.
    • 2 . Leverage Innovation in Non-Food
        • Attract new Shoppers
        • Get disproportionate share by being first with new items .
    • 3. Win with Young Families – Heavy Spenders
  • 10. … win her man She needs to be beautiful to…
    • Russian consumers are “Thirsty for Beauty”
    Importance of: Russia WE Being attractive to men, % 90 41 Having stylish feminine clothes, % 89 57
  • 11. P&G is committed to develop Beauty business in Russia
    • Plays in 12 out of 13 Beauty Categories
    • Market leader in 5 out of 12
    • Focus on Category Development to drive basket size
    • HAIR CARE EXAMPLE:
    • Conditioners /Treatments – significant growth
    • Potential vs. Shampoo behind increase in penetration and consumption .
  • 12. P&G is committed to develop Beauty business in Russia
    • Conditioner/treatment driven innovation
    • Trade Across through Shelving by collection: co-location of Shampoo/Conditioners/ Treatments
    • Category Turnover growth + 13%,
    Category growth up to 6 %
  • 13. Beauty Categories are the most sensitive to shopping atmosphere and new innovation
    • Beauty Department Objective within Food retailer:
    • Create better Shopping Environment:
      • Enjoyable/emotional
      • Spends more time/ browsing
      • Trying new things
        • Diapers
        • Fabric Softeners
  • 14.  
  • 15.  
  • 16.  
  • 17. 2. Attract new shoppers via innovation 45% of Russian shoppers
    • are experience-driven. This means that they:
      • enjoy shopping and like to shop around before making a purchase;
      • need a comfortable shopping experience;
      • are driven by new items .
  • 18. Non-food suppliers are investing heavily in TV creating strong demand for new products Non-food advertisers are highlighted TOP 10 advertisers 2010 GRPs 30+ 2009 2010 Food 289 655 311 713 Non-Food 705 404 768 122 1 Procter & Gamble 2 Henkel Group 3 L'Oreal 4 Mars-Russia 5 Unilever 6 Nestle 7 Reckitt Benckiser 8 Danone 9 Wimm-Bill-Dann 10 Beeline
  • 19.
    • 1 . In-Store Support – massive in-store communication linked to TV
    • 2 . On-line announcement of new product launches/marketing campaigns
    Get Disproportionate share of New Items!
  • 20. 3. Winning with Young Families Child birth is a point of change in values Now baby is #1, #2 and #3 spending priority Now she has less time in her new role: => she visits less stores and shop more in E-commerce ;
  • 21. Families spend more, especially younger ones… especially in Modern Trade GFK , 200 9 Spending Index Total Russia Modern Trade Young parents 113 112 Mature parents 120 101 Parents with teenagers 106 94 Families w/o children 121 97 Adults 87 108 Seniors 81 86
  • 22. Baby Diapers is the biggest category in moms basket GFK , 200 9
    • Baby Diapers is the Destination categories for Young Moms
    • Shoppers Basket is 4x times bigger in case diapers are in
    Total Basket Spending on Baby, % in value Shoppers of Hypermarkets, 1HY 10   Moscow Russia w/o Moscow Diapers & Wipes 32,9 42,7 Baby Food 27,3 38,2 Clothes & Shoes 15,7 5,6 Other (incl. toys, cosmetics) 24,1 13,5
  • 23. Pampers Charity program Partnering with Retailers and leading websites P&G donates 1 vaccine for UNICEF with every purchased pack of Pampers Communication tools: - Internet (mail.ru) - In-Store
  • 24. In Summary
    • Key Partnership Opportunities to drive Non-Food in Food Retailer:
    • Bring in New Shoppers:
      • Co-Marketing programs (e.g. Pampers Unisef)
      • E-media partnership with Manufacturers
    • Drive Loyalty of Existing Shoppers:
      • Drive Basket via regimen Beauty Purchases
      • Novelties exploitation in-Store;
      • Improve Shopping Experience on Beauty
    • Attract Heavy Spenders
      • Win with Young Families by leveraging Diapers as destination category
  • 25. Thank you!