Stephen Schueler: Non-food as a business engine
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Stephen Schueler: Non-food as a business engine

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Stephen Schueler: Non-food as a business engine Stephen Schueler: Non-food as a business engine Presentation Transcript

  • Non-food as a business engine in Food retail Stephen Schueler Procter and Gamble 4 Feb 2011
  • Who wants to increase your market share?
  • What determines your ability to drive market share? YOUR SHOPPER! View slide
  • Top drivers to increase your market share: Attract New Shoppers Build Loyalty of Existing Shoppers Win with High Spenders View slide
  • WHY NON-FOOD CATEGORIES ARE IMPORTANT TO WIN WITH SHOPPERS?
  • 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
  • 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
  • How to leverage non-food to win 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 item.
    • 3. Win with Young Families – Heavy Spenders
  • … 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
  • 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
  • P&G is committed to develop Beauty business in Russia
    • How to capture Conditioner/treatment growth potential:
    • 1. Conditioner/treatment driven innovation
    • 2. Shelving by collection:
    • co-location of Shampoo/Conditioner/Treatments
  • Beauty Categories will 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
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  • 2. Attract new shoppers via innovation 45% of Russian shoppers
    • are experience-driven. This means that they:
      • enjoy shopping and like shop around before making a purchase;
      • need a comfortable shopping experience;
      • are driven by new items .
  • Non-food suppliers are investing heavily in TV creating strong demand for new products Period: Jan-Dec 30" 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
    • 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!
  • 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 );
  • 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
  • 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 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
  • 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
  • Let’s work together to win with your shopper
    • Leverage top non-food categories to win with your consumer:
    • 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
  • THANK YOU