Stephen Schueler: Non-food as a business engine

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  • Промоушен, инициатива
  • Stephen Schueler: Non-food as a business engine

    1. 1. Non-food as a business engine in Food retail Stephen Schueler Procter and Gamble 4 Feb 2011
    2. 2. Who wants to increase your market share?
    3. 3. What determines your ability to drive market share? YOUR SHOPPER!
    4. 4. Top drivers to increase your market share: Attract New Shoppers Build Loyalty of Existing Shoppers Win with High Spenders
    5. 5. WHY NON-FOOD CATEGORIES ARE IMPORTANT TO WIN WITH SHOPPERS?
    6. 6. 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) 46 Biscuits 44 Cheese 49 Juice 59 Dairy food 34 Dentifrice 32 Shampoo 31 Fem Care 28 Hand Dish non-food
    7. 7. 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 Oral Care Fruits & Vegetables Coffee& Tea Soft drinks & Juices Toilet Paper & Towels Cheese Snacks Fresh Meat & Poultry Fresh Meat & Poultry Oral Care Cheese Fem Care S oft drinks & Juices Toilet Paper & Towels Fruits & Vegetables Shampoo & Shower Milk& Dairy Coffee & Tea Bakery Laundry & Home Care Refill shopping   Bulk shopping
    8. 8. How to leverage non-food to win 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 item. </li></ul></ul></ul><ul><li>3. Win with Young Families – Heavy Spenders </li></ul>
    9. 9. … win her man She needs to be beautiful to… 1. Russian consumers are “Thirsty for Beauty” Importance of Russia WE Being attractive to men, % 90 41 Having stylish feminine clothes, % 89 57
    10. 10. 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 potential vs. </li></ul><ul><li>Shampoo behind increase in penetration and consumption </li></ul>
    11. 11. P&G is committed to develop Beauty business in Russia <ul><li>How to capture Conditioner/treatment growth potential: </li></ul><ul><li>1. Conditioner/treatment driven innovation </li></ul><ul><li>2. Shelving by collection: </li></ul><ul><li>co-location of Shampoo/Conditioner/Treatments </li></ul>
    12. 12. Beauty Categories will 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>
    13. 16. 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 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>
    14. 17. Non-food suppliers are investing heavily in TV creating strong demand for new products Period: Jan-Dec 30&quot; 18+ Russia 21 419 17 938 Colgate-Palmolive 10 21 704 13 952 Kalina 9 25 278 27 265 Megafon 8 27 453 29 159 MTS 7 32 665 26 858 Beeline 6 47 458 48 764 Reckitt Benckiser 5 53 005 57 651 Unilever 4 64 457 74 592 L'Oreal 3 65 010 56 036 Henkel Group 2 121 511 94 255 Procter & Gamble 1 768 122 705 404 Non-Food 311 713 289 655 Food 2010 2009 Top 10 advertisers, GRPs
    15. 18. <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!
    16. 19. 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 (Intensity Ind=124 );
    17. 20. Families spend more, especially younger ones… especially in Modern Trade GFK , 200 9 86 81 Seniors 108 87 Adults 97 121 Families w/o children 94 106 Parents with teenagers 101 120 Mature parents 112 113 Young parents Modern Trade Total Russia Spending Index
    18. 21. 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 1,1 8,1 Other 3,8 5,3 Cosmetics & Hygiene 4,5 5,7 Baby Laundry 4,0 4,9 Toys 5,6 15,7 Clothes & Shoes 38,2 27,3 Baby Food 42,7 32,9 Diapers & Wipes Russia w/o Moscow Moscow 1HY 10, HM shoppers Moms with 0-36 babies, Shoppers of Hypermarkets
    19. 22. Help her in the new role of being a mother 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
    20. 23. Let’s work together to win with your shopper <ul><li>Leverage top non-food categories to win with your consumer: </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>
    21. 24. THANK YOU

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