Ranj Gill 21.11.13 Shoppers

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Клиентская конференция TNS 2013

Клиентская конференция TNS 2013

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  • 1. TNS Retail & Shopper Our Latest Thinking and Solutions Retail & Shopper © TNS 2013
  • 2. We drive brand and category growth by answering the question “How can I get shoppers to spend more?” New markets Morecustomers 3 4Happy shopper Retail & Shopper © TNS 2013 2 Morecustomers More money from each customer Loyalty & new spend 1 New products & services 2 New customer Today’s business
  • 3. Sounds simple… but why do we struggle to drive growth? Retail & Shopper © TNS 2013 but why do we struggle to drive growth? 3
  • 4. Many manufacturers fail to drive growth as they don’t think about shoppers Brand focus Retailer stories Retail & Shopper © TNS 2013 4
  • 5. “Shopper myths” make the problem worse 02 Disrupting shoppers will improve engagement 03 70% of decisions are made at shelf 01 Holding shoppers for longer at the shelf will increase purchasing Retail & Shopper © TNS 2013 5 engagementpurchasing
  • 6. The result… Shopping is a story of missed opportunities 30% of shoppers walk away without buying, despite having browsed the shelf Retail & Shopper © TNS 2013 of shoppers walk away without buying, despite having browsed the shelf 20% of planned items don’t make it into the basket 6
  • 7. TNS Shopper Insights drawn from 30 years We know this because we understand how shoppers really behave Retail & Shopper © TNS 2013 drawn from 30 years observing shoppers…
  • 8. The good news… TNS can help you to understand the shopper and produce ‘Happy Shoppers’ Retail & Shopper © TNS 2013 and produce ‘Happy Shoppers’ 8
  • 9. To understand shopper behaviour we have to understand the shopping trip Shopping Trip: A unique shopper on a specific mission in a chosen channel Shopping trip: A unique shopper on a specific mission in a chosen channelShopping trip Retail & Shopper © TNS 2013 9
  • 10. The trip consists of category purchases made for specific needs or occasions in the context of that trip Shopping trip Retail & Shopper © TNS 2013 10 Category C Need/ occasion Category B Need/ occasion Category A Need/ occasion
  • 11. Each category purchase has its own purchase process, that will be different for each shopper and occasion Planning Learning effect Searching Retail & Shopper © TNS 2013 11 Buying Selecting
  • 12. Combining the trip, category occasion and purchase process builds a complete picture of shopper behaviour Shopping trip Category CCategory BCategory A Retail & Shopper © TNS 2013 12 Category C Need/ occasion Category B Need/ occasion Category A Need/ occasion
  • 13. TNS shopper principles are the foundation of our approach and allow us to apply our shopper understanding Retail & Shopper © TNS 2013 to apply our shopper understanding 13
  • 14. TNS’s 3 principles that are fundamental to winning with shoppers Shopping mission and consumer usage Shoppers are either ‘Decided’ or ‘Open’ Make it faster and easier for shoppers to Retail & Shopper © TNS 2013 14 and consumer usage occasion Drives shopper behaviour and product choice ‘Decided’ or ‘Open’ Determines how they interact with the shelf easier for shoppers to find the products they want Increases shopper spending
  • 15. Shopping mission and consumer usage Shoppers are either ‘Decided’ or ‘Open’ Make it faster and easier for shoppers to Retail & Shopper © TNS 2013 15 and consumer usage occasion Drives shopper behaviour and product choice ‘Decided’ or ‘Open’ Determines their task at shelf easier for shoppers to find the products they want Increases shopper spending
  • 16. Shopping behaviour, needs and priorities vary depending on type and size of trip Stock up shop Quick stop for 1-2 itemsTop up shop Retail & Shopper © TNS 2013 16
  • 17. Whatever shoppers buy, they have some idea about the intended occasion for that product Weekend brunch Family mealHappy shopper Retail & Shopper © TNS 2013 17 Semi-finals on TV Dan’s BBQ
  • 18. Shopping mission Type of store visited Time spend in-store Usage occasion Product choice Brand Format Mission and usage occasion drive shopper behaviour Retail & Shopper © TNS 2013 18 Time spend in-store Planning levels Route around store Categories shopped Number of items purchased Price sensitivity Format Pack size Price
  • 19. Cutting Edge Connectors Engaged & Informed Frugal Families Time Stressed Families Routine Robots Shopper typology is less important in driving shopper behaviour Retail & Shopper © TNS 2013 Focused & Methodical It's About Me Life is Good TOTAL Grab and drink Meal times Sports and refreshment Socialising Relaxing SOURCE: TNS Shopper Dimensions study 19
  • 20. The key to unlocking growth… … Activations that link Retail & Shopper © TNS 2013 … Activations that link missions to occasions 20
  • 21. Successful activation linking mission to occasion Manufacturer of ketchup the basic three package Mission Weekly shop shopping for a particular meal or event. Occasion Retail & Shopper © TNS 2013 21 L E the basic three package styles had remained the same Explore new opportunities by understanding the category shopping landscape Occasion key occasions not catered for Single-serve 24-pack Limited edition multi-packs with smaller bottles targeted major sports teams and sporting events
  • 22. Shopping mission and consumer usage Shoppers are either ‘Decided’ or ‘Open’ Make it faster and easier for shoppers to Retail & Shopper © TNS 2013 22 and consumer usage occasion Drives shopper behaviour and product choice ‘Decided’ or ‘Open’ Determines their task at shelf easier for shoppers to find the products they want Increases shopper spending
  • 23. Shoppers arrive at shelf with different tasks. Activation success depends on making a distinction between them Decided Open Retail & Shopper © TNS 2013 …know what product they will buy …make decision at shelf 23
  • 24. Most shoppers have already decided what to buy 69% buy same brand as last time 45% Retail & Shopper © TNS 2013 45% buy same SKU 24 Source: Kantar Worldpanel large trips
  • 25. 81 78 76 73 67 65 70 69 Mayonnaise Sauce Personal wash Spreads Beer Deodorants Culinary Paper Products Decided shoppers are in the majority irrespective of category Retail & Shopper © TNS 2013 69 69 67 66 66 66 65 60 Paper Products Cheese Hair care Salty Snacks Yoghurt Confectionery Skin care Ice cream SOURCE: TNS Decision Tree data 2011-2013 25
  • 26. Decided and open shoppers behave very differently at shelf Retail & Shopper © TNS 2013 26
  • 27. 124 Decided shoppers like to find what they want and get in and out of the category quickly Personal care Confectionery Beer Total interaction time (secs) Retail & Shopper © TNS 2013 77 124 37 53 22 40 27 Decided Open
  • 28. 7 328 14 Personal care Open shoppers are more likely to buy new products and be influenced in-store Purchased new product (%) Personal care Confectionery Beer Claimed influences on choice Retail & Shopper © TNS 2013 30 20 12 11 6 8 7 32 3 15 8 57 2 11 Decided Open Decided Open 28 Out of store Word of mouth Price or promo In-store POS Display or pack
  • 29. Looking at shopper averages is misleading and will hinder rather than help us to influence shoppers We know that shoppers approach the shelf with different tasks Different tasks at shelf lead to 60 Retail & Shopper © TNS 2013 Different tasks at shelf lead to different behaviours Looking at averages simply distorts reality 60 42 10 Decided Total Open 29
  • 30. Better decisions are made when focusing on the Open vs. Decided Selection Total 28 Why?A Pack test example Open 40 Retail & Shopper © TNS 2013 28 28 Why? Open say it is: Higher quality More feminine Up-to-dateB A 30 40 29
  • 31. Shopping mission and consumer usage Shoppers are either ‘Decided’ or ‘Open’ Make it faster and easier for shoppers to Retail & Shopper © TNS 2013 31 and consumer usage occasion Drives shopper behaviour and product choice ‘Decided’ or ‘Open’ Determines their task at shelf easier for shoppers to find the products they want Increases shopper spending
  • 32. Searching is a negative experience as it mainly involves rejection Retail & Shopper © TNS 2013 32 Positive emotions are experienced only when relevant products are found
  • 33. Shoppers spend most of their time in store searching 90% Of time spent navigating Retail & Shopper © TNS 2013 10% Of time spent in active selection/shopping 33
  • 34. The longer a shopper spends looking for a product the more likely they are to leave empty-handedBuytime Slow Faster buy time = more shoppers buy Retail & Shopper © TNS 2013 34 % Conversion to purchase Buy Fast Low High Source: TNS PathTracking studies in supermarkets around the world
  • 35. The quicker a shopper selects a product the more likely they are to buy another from the same category No.ofitemspurchased 4 5 3 Faster buy time = more products bought Retail & Shopper © TNS 2013 0-10 seconds 11-20 seconds 21-30 seconds 31-60 seconds 60-120 seconds 120 seconds + 35 Time taken to select first product No.ofitemspurchased 1 2 Source: TNS PathTracking studies in supermarkets around the world
  • 36. 141 There is a direct correlation between shopper spending speed and basket size Faster buy time = greater spend per shopper minute(RUB) 120 160 Retail & Shopper © TNS 2013 40 17 48,5 73 85,5 Average <800 800-1300 1300- 1800 1800- 2500 2500+ 36 Spendperminute(RUB) Basket size (RUB) Source: TNS PathTracking studies in supermarkets around the world 0 40 80
  • 37. Reducing search time will increase 30% of shoppers walk away without buying, despite having browsed the shelf Retail & Shopper © TNS 2013 time will increase sales 20% of planned items don’t make it into the basket 37
  • 38. Manufacturer of salty snacks Successful activation helping reduce search time and encourage faster shopping New shelf structure based on the shopper’s search hierarchy Snack format Product type Retail & Shopper © TNS 2013 Goal of increasing overall category sales by at least 3% Convenience channel 38 Product type Brand More impactful pack messages More impactful POSM
  • 39. TNS has industry-leading solutions to help you through the shopper research journey from planning to testing Retail & Shopper © TNS 2013 journey from planning to testing 39
  • 40. We have solutions to inform planning Key solutions Missions & occasions Unmet needs Touchpoint planning Category & channel growth Category & channel growth Category & brand growth Planning Business issue Shopper Dimensions Shopper Matrix Purchase Decision Journey 01 Retail & Shopper © TNS 2013 40 Touchpoint planningCategory & brand growth Purchase Decision Journey
  • 41. We have solutions to inform activation Store layout Plan-o-gram Optimise store Optimise category Optimise category Activation Store Activator Shopper Decisions Activator Business issue02 Key solutions Retail & Shopper © TNS 2013 41 Plan-o-gram Assortment Location & secondary sites Shopper marketing POSM & pack Messaging Price & promotions Optimise category Optimise category Optimise category Optimise brand at shelf Optimise brand at shelf Optimise brand at shelf Shopper Decisions Activator Assortment Activator Store Activator Triggers & Barriers Activator POSM Activator Shopper Decisions Activator Price & Pack Activator
  • 42. We have solutions for testing Plan-o-gram POSM Testing Category & brand Category & brand Shelf Tester POSM Tester 03 Business issue Key solutions Retail & Shopper © TNS 2013 42 PackBrand Pack Tester
  • 43. Our solutions use a range of observational and traditional research methods On-line interviews Face to face interviews In-store observation Intercept interviews Eye-tracking Virtual reality Mock shelves 01 02 03Planning Activation Testing Retail & Shopper © TNS 2013 43 interviews Visual psychology Eye-tracking Shopnography & accompanied shops Discrete Choice Modelling
  • 44. As part of the WPP group we provide the insights which form part of the total shopper marketing cycle Retail & Shopper © TNS 2013 44
  • 45. For more details about our solution… Please visit our website http://www.tnsglobal.com/what-we-do/retail-shopper Happy shopper Retail & Shopper © TNS 2013 45
  • 46. Retail & Shopper © TNS 2013 46
  • 47. Appendix: TNS Shopper Solutions Retail & Shopper © TNS 2013 TNS Shopper Solutions
  • 48. Planning solutions Solution and key measures Main purpose Identifies the best opportunities for brand and category growth in each channel by targeting shopper missions, category usage occasions, and shopper types Shopper missions, category usage occasions & shopper types by brand & retailer (6Ws) Shopper Dimensions Shopper Matrix Category growth; channel & customer strategy Category growth; channel & customer strategy 01 Retail & Shopper © TNS 2013 48 Identifies the touchpoints and the relevant messages along the shopper journey that can be used to influence category involvement and brand choice Maps the most common steps from trigger to purchase along the shopper journey and highlights key points of influence Purchase Decision Journey Identifies shopper needs and how well each retailer meets these needs. Pinpoints opportunities for development that may be exploited 6Ws Shopper needs & retailer performance Shopper Matrix Category growth; channel & customer strategy Touchpoint planning
  • 49. Shopper Dimensions: Uses shopper missions and consumption occasions to help clients build channel growth strategies Shopper Dimensions is designed to help clients develop channel strategies that place the right products on the right shelves. It quantifies the imperative questions of who is shopping the category, what they are buying, when they buy, where they shop, how they research and 01 Retail & Shopper © TNS 2013 49 they buy, where they shop, how they research and plan for the category purchased, and -- most importantly -- why they buy what they do on that trip. With its focus on shopping missions and consumption occasions, Shopper Dimensions identifies the strategies critical to driving growth in each channel. On-line (or F2F) interview, based upon most recent purchase made.
  • 50. Purchase Decision Journey: Identifies most influential touchpoints along the path to purchase, and most relevant messages Identifies the most common purchase experiences from trigger to purchase, highlighting key opportunities or points of influence that can be exploited. Purchase Decision Journey quantifies the various triggers to purchase, and the different steps taken between the trigger 01 Retail & Shopper © TNS 2013 50 and a store visit and finally a purchase. The approach is used to identify the touchpoints that are driving, or have the greatest potential to drive category involvement and brand choice. Predictive modelling identifies when, where and how to engage consumers with relevant messages and experiences delivered at the right time in the right place. Two stage on-line qualitative and quantitative
  • 51. Portfolio management solutions Solution and key measures Main purpose Calculates the share impact of introducing or removing variants on an existing portfolio for any customer. Optimises price to maximise share, revenue, or profit. Identifies combination of features that will optimise demand. Shopper trade-offs. Simulator for what-if scenarios; relative importance impact of features; sensitivity/elasticity of price and features; share and volume analysis. Assortment Activator; Price & Pack Activator Assortment optimisation 02 Retail & Shopper © TNS 2013 51 of features that will optimise demand. Tests shopper response to new items in virtual retail environments. Predicts likely success or failure, and identifies potential enhancements to retail execution. Simulated shopping using 3d virtual reality. Assesses noticeability and stand out, as well as purchase rate. Bespoke Studies Retail activation of new items
  • 52. Sales and marketing solutions Solution and key measures Main purpose Drives category growth by improving ease of shopping to increase conversion. Drives brand growth by identifying most relevant in-store communication. Improves brand performance at shelf by targeting real shopper behaviour in-store to Category conversion and at shelf behaviour. Category purchase decision process: Plan; Search; Select; Buy Shopper visual activity Shelf hot spots Shopper Decisions Activator POSM Activator Plan-o-gram; messaging POS optimisation; brand at shelf 02 Retail & Shopper © TNS 2013 52 targeting real shopper behaviour in-store to maximise cut through Shelf hot spots Pack and POS stand out Optimises store layout, category adjacencies and locations for secondary sites by making most efficient use of shoppers’ paths in-store Shopper traffic & flow Category 1st and 2nd conversion Dwell times Category affinities Store Activator Identifies and sizes the in-store Triggers & Barriers to purchasing the category so that in-store actions can be prioritised with retail customers Shopper Barriers to Purchase Shopper Triggers to Purchase Triggers & Barriers Activator Store Layout, category locations Shopper marketing
  • 53. Shopper Decisions Activator: Increases sales by improving ease of shopping and ability to influence shoppers 02 Drives category growth by creating a shelf layout to facilitate shopping and generates brand growth by developing in-store communication to better influence shoppers Shopper Decisions Activator provides enhanced understanding of the category purchase decision by de-constructing the purchase process and understanding each stage: Retail & Shopper © TNS 2013 53 and understanding each stage: ■ Plan: pre-determined characteristics ■ Search: de-selection process ■ Select: choice drivers ■ Buy: product purchased Method: In-store observations and intercept interviews
  • 54. Triggers & Barriers Activator: Identifies specific actions brands and retailers can take in store to increase category conversion 02 Helps clients identify and prioritize specific measures that can be taken in-store to improve category conversion. Highlights manufacturer and retailer actions and facilitates collaboration between the two. Triggers & Barriers Activator is specially designed to help shoppers articulate hard-to-explain issues that slow category conversion. Retail & Shopper © TNS 2013 54 articulate hard-to-explain issues that slow category conversion. By taking the in-store shopping process step-by-step and grouping respondents in a meaningful way, we obtain specific and actionable results. Working together to address growth opportunities linked to Barriers and Triggers can be a non-confrontational way for manufacturers and retailers to connect. Method: Two stage process of accompanied shops followed by on- line interviews
  • 55. Testing and in-market performance solutions Solution and key measures Main purpose Tests shopper response to new initiatives in virtual retail environments. Predicts likely success or failure, and identifies potential enhancements to retail execution. Simulated shopping using 3d virtual reality. Assesses noticeability and stand out, as well as purchase rate. Pack Test, POS test, shelf test 03 Pack Tester; POSM Tester; Shelf Tester Retail & Shopper © TNS 2013 55 Identifies strengths and weaknesses and opportunities to improve conversion at each stage of the path to purchase. Before and after tracking enables assessment of effectiveness of any shopper initiative. Bespoke Studies enhancements to retail execution. Measure effectiveness of in-store initiatives Observation of shopper behaviour in-store – number of visitors to shelf, shoppers who engage with category, and purchasers. Data collected by automated filming (or manual observation).
  • 56. Tester solutions: Testing category and brand growth initiatives Optimises packaging, POS and shelf layout by pre-testing new initiatives in a virtual retail environment Respondents complete a simulated ‘shop’ on their own home computers. Product is presented in a realistic 3D retail environment where it must 03 Retail & Shopper © TNS 2013 56 Product is presented in a realistic 3D retail environment where it must battle for attention. Respondents can pick up, zoom in and examine all sides of the 3D product. Shopping behaviour is integrated with post-shop questionnaire to assess performance against both retail and communications objectives Primary approach: 3D online virtual reality shopping.
  • 57. In many parts of the world Traditional Trade is the dominant channel for FMCG Mom ‘n Pop no-entry Self- service Mini- marts Stores Mobile stores, push- carts Wet markets Street vendors, make- shift Mom ‘n Pop entry Specialty stores Retail & Shopper © TNS 2013 57 martscartsshift stores Closest to modern trade autonomy, assortment and experience Non-stores
  • 58. There are different forces at play in any Traditional Trade store Retail & Shopper © TNS 2013 58 Structural Spatial and operational influences on shopping Cultural Shared assumptions and beliefs about shopping in a type of store Psychological What shoppers do, think and feel in a particular type of store
  • 59. Process: Positively impacting retailer relationship by targeting their needs People: Engagement between Place: Suitability and efficiency of current RtM strategy Product: Suitability of current assortment mix to TT shopping environment Price: Suitability of current There are 3 types of business issues in crafting the Traditional Trade strategy: We work in all 3 Retailer-oriented = trade servicing policies Shopper-oriented = the offer Distribution Retail & Shopper © TNS 2013 People: Engagement between sales force and retailers Price: Suitability of current pricing structure to TT missions and buying patterns Promotion: Suitability of in-store initiatives and tactics to win against local brands 59