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
  • Stephen Schueler: Non-food as a business engine

    1. 1. Non-food as a business engine in Russian Retail Stephen Schueler Procter and Gamble 4 Feb 2011
    2. 2. P&G IN RUSSIA
    3. 3. Who wants to increase your market share?
    4. 4. What determines your ability to drive market share?
    5. 5. Your shopper! Top drivers to increase your market share: Attract New Shoppers Build Loyalty of Existing Shoppers Win with High Spenders
    7. 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. 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. 9. How to leverage non-food to win with Your Shopper <ul><li>Three Business Ideas: </li></ul><ul><li>Improve Shopping experience in Beauty Care. </li></ul><ul><li>2 . Leverage Innovation in Non-Food </li></ul><ul><ul><ul><li>Attract new Shoppers </li></ul></ul></ul><ul><ul><ul><li>Get disproportionate share by being first with new items . </li></ul></ul></ul><ul><li>3. Win with Young Families – Heavy Spenders </li></ul>
    10. 10. … win her man She needs to be beautiful to… <ul><li>Russian consumers are “Thirsty for Beauty” </li></ul>Importance of: Russia WE Being attractive to men, % 90 41 Having stylish feminine clothes, % 89 57
    11. 11. P&G is committed to develop Beauty business in Russia <ul><li>Plays in 12 out of 13 Beauty Categories </li></ul><ul><li>Market leader in 5 out of 12 </li></ul><ul><li>Focus on Category Development to drive basket size </li></ul><ul><li>HAIR CARE EXAMPLE: </li></ul><ul><li>Conditioners /Treatments – significant growth </li></ul><ul><li>Potential vs. Shampoo behind increase in penetration and consumption . </li></ul>
    12. 12. P&G is committed to develop Beauty business in Russia <ul><li>Conditioner/treatment driven innovation </li></ul><ul><li>Trade Across through Shelving by collection: co-location of Shampoo/Conditioners/ Treatments </li></ul><ul><li>Category Turnover growth + 13%, </li></ul>Category growth up to 6 %
    13. 13. Beauty Categories are the most sensitive to shopping atmosphere and new innovation <ul><li>Beauty Department Objective within Food retailer: </li></ul><ul><li>Create better Shopping Environment: </li></ul><ul><ul><li>Enjoyable/emotional </li></ul></ul><ul><ul><li>Spends more time/ browsing </li></ul></ul><ul><ul><li>Trying new things </li></ul></ul><ul><ul><ul><li>Diapers </li></ul></ul></ul><ul><ul><ul><li>Fabric Softeners </li></ul></ul></ul>
    14. 17. 2. Attract new shoppers via innovation 45% of Russian shoppers <ul><li>are experience-driven. This means that they: </li></ul><ul><ul><li>enjoy shopping and like to shop around before making a purchase; </li></ul></ul><ul><ul><li>need a comfortable shopping experience; </li></ul></ul><ul><ul><li>are driven by new items . </li></ul></ul>
    15. 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
    16. 19. <ul><li>1 . In-Store Support – massive in-store communication linked to TV </li></ul><ul><li>2 . On-line announcement of new product launches/marketing campaigns </li></ul>Get Disproportionate share of New Items!
    17. 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 ;
    18. 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
    19. 22. Baby Diapers is the biggest category in moms basket GFK , 200 9 <ul><li>Baby Diapers is the Destination categories for Young Moms </li></ul><ul><li>Shoppers Basket is 4x times bigger in case diapers are in </li></ul>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
    20. 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 ( - In-Store
    21. 24. In Summary <ul><li>Key Partnership Opportunities to drive Non-Food in Food Retailer: </li></ul><ul><li>Bring in New Shoppers: </li></ul><ul><ul><li>Co-Marketing programs (e.g. Pampers Unisef) </li></ul></ul><ul><ul><li>E-media partnership with Manufacturers </li></ul></ul><ul><li>Drive Loyalty of Existing Shoppers: </li></ul><ul><ul><li>Drive Basket via regimen Beauty Purchases </li></ul></ul><ul><ul><li>Novelties exploitation in-Store; </li></ul></ul><ul><ul><li>Improve Shopping Experience on Beauty </li></ul></ul><ul><li>Attract Heavy Spenders </li></ul><ul><ul><li>Win with Young Families by leveraging Diapers as destination category </li></ul></ul>
    22. 25. Thank you!