Shopper Insight techniques summary

4,195 views
3,845 views

Published on

a brief overview of our shopper insight techniques

0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,195
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
217
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

Shopper Insight techniques summary

  1. 1. Ratera & van GalenHow to win at Point of Purchase 2010
  2. 2. Content Ratera & van Galen overview Our services – Trade marketing strategy based on shopper insight – Areas of expertise • Category definition and segmentation • Optimum category layout: path to profit • Ideal range • Promotion • POS communication – Methodologies • In store intercepts/FGD • Virtual shelf testing • Video camera work • Traffic flow monitoring • Store auditing Case studies 2
  3. 3. Ratera & van GalenRatera & van Galen (R&G) is an independent market research and retailconsultancy firm working for both manufacturers and retailers across channels.We specialise into: – Shopper research – Trade marketing strategyOur long-time expertise in shopping and decision making behaviour, combinedwith use of the most recent and sophisticated techniques, give us a strongposition in this area.R&G originated in London, we had previous working experience in France,Holland, Spain, Switzerland and UK and was established in 1998 in Malaysia.Partner offices: Asia: Bangkok, Dubai, Jakarta, Manila, Singapore, Beijing, Guangzhou and Shanghai Europe: Amsterdam and BarcelonaWe are members of The Ebeltoft Group, a global group of retail expertcompanies that work together on international projects and exchangeknowledge in their fields. 3
  4. 4. Ratera & van Galen: The shopperresearch specialist This book provides practical advice about shopper needs; retail environments; shopper trends; shopper marketing strategies; retailing relationships; and effective packaging. With contributions from: Paco Underhill Brian Harris Herb Sorensen Toon van Galen (Ratera & van Galen) 5
  5. 5. Clients Ratera & van Galen FMCG & related p p PEERLESS PEERLESSBankingAutomotive
  6. 6. Clients and partners * * * * * HM / SM * * * * * * Shedanvie * * * Sunshine * * * * * * * C-Store/ mini markets * * *Pharmacies * * * Other Traditional trade/ sari sari, Chinese Medical Hall, on premise outlets channels* * Not direct clients: working experience with those retailers
  7. 7. Solutions to common problems that our clients face Ideal category definition and grouping: What type of products belong together and for what reasons Optimum category layout: How can we upgrade shoppers to buy more or more premium goods from our category? Purchase solutions driven by shoppers’ segmentation Store layout adjusted to shoppers’ missions Optimum range per channel What are key decision factors when people buy this category and how do we use them more effectively against our competitors? How do we trigger impulse purchases in store? Which promotion works best in the category? Can we optimize the path to purchase communication in order to drive profit? What is the path to profit? Can we seduce shoppers to upgrade? 8
  8. 8. Project set upStage Key objective Methodologies Gain agreement to conduct1. Retailer presentation Presentation to retailers research Summarize relevant data to Review of all relevant data from2. Data review identify key opportunities and TNS, Dunnhumby, Synovate, information gaps Nielsen and/or other sources In store interviews Focus group discussions – FGDs3. Closing the gap Gain shopper insights Store audits & scan data analysis Traffic flow analysis Retailer interviews4. Presentation of Development merchandising Workshop with Client teamfindings strategy5. Implementation Implementation strategy Ongoing support to Clientstrategy6. Selling in to retail Gain retailer agreement to Presentation to retailerspartners implement Evaluate project and identify Client internal process/ post7. Post review learnings interviews and measurement 99
  9. 9. Some of our methodologies We film shopping Virtual We track POS behaviour shelf communication We testing measure space & We analyze number traffic flows of sku’s We interview customers at point of decision We analyze We observe scan data browsing behaviour prior to purchase We identify hot & dead We follow shoppers from spots in the the beginning to the end store and of their shopping trip in the shelf Eye tracking Optimize Loyalty card product and Focus groups solutions assortment Retailer interviews 10
  10. 10. Trade Marketing Strategybased on shopper insight
  11. 11. Trade marketing strategy 1 2 3 Category Shoppers Customer strategy strategy strategy Definition & segmentation Shopper understanding Channel understanding- Identify the definition and the - Understand the shopper behaviour - Shopper behaviour difference bysegmentation of the category based including triggers and barriers for the channelon shopper needs category at point of purchase in detail - POP vision by channel - Ideal range and merchandisign by Opportunity assessment POP tracking channel In-store vision- Identify opportunities based on - Measure POP material’s impact - Define excellent in-store executionshopper insights that deliver category - Define ideal message at POP standards that will positively influencegrowth - Define optimum location of POP shopper behavior materials 12
  12. 12. Content Ratera & van Galen overview Our services – Trade marketing strategy based on shopper insight – Areas of expertise • Category definition and segmentation • Optimum category layout: path to profit • Ideal range • Promotion • POS communication – Methodologies • In store intercepts/FGD • Virtual shelf testing • Video camera work • Traffic flow monitoring • Store auditing Case studies 13
  13. 13. Category definition and segmentation steps Step 1: Category Decision Tree – What are current decision criteria – Multi level: first level is by flavour, but what about next level, by pack type, price? – Work out in detail what to do with smaller varieties, non standard pack sizes, cartons Step 2: Assessment current category presentation – Right location in store, adjacent categories – Current layout shoppers likes & dislikes – Find barriers in purchase process – Sales and profit performance total category and for client – POS material performance Step 3: Develop and test new options – Develop merchandising options, CDT is the base, use other key criteria: – Shoppers rating – Sales and profit driving – POS material performance Step 4: post testing 14
  14. 14. Range tools Range check via store audits and scan data analysis Substitution analysis In store quantitative assessment Qualitative assessment via FGD’s 15
  15. 15. Who is the right target shopper for a promotion? Target the right shopper: – Shoppers that buy another brand currently and are interested to change at regular price – Shoppers that use different brands and are open to become more loyal – Shoppers that do not know your product yet Use the right promotion: – Multi buy, purchase with purchase, direct price off, every type has it’s different impact. Aiming the same price off at all shoppers all the time has no proven impact on long term sales but minimizes the profit 16
  16. 16. The majority of promo spend is aimed at those that will not switch to your brand A combination of scan data analysis and shopper interviews will tell us which part of the sales increase is really incremental and where it comes from Subsidy existing buyers % of shoppers buying Temporary buyers Some of these might stick with my brand Temporary buyers after promo Brand A Brand A 17
  17. 17. POP trackingRecommended POS ad for each part in path of purchasebased on recall and phase of shopping trip Out of Category ZoneOut of Sight OUTSIDE STORE 18
  18. 18. Content Ratera & van Galen overview Our services – Trade marketing strategy based on shopper insight – Areas of expertise • Category definition and segmentation • Optimum category layout: path to profit • Ideal range • Promotion • POS communication – Methodologies • (In store intercepts/FGD) • Traffic flow monitoring • Virtual shelf testing • Video camera work • Store auditing Case studies 19
  19. 19. Shopper’s path in minimarket: hot spots near entrance,many locations are never visited, shopper path isinefficient 100% & above- passing 60% - 69% 20% - 29% % Passing 90% - 99% 50% - 59% 10% - 19% 80% - 89% 40% - 49% 9% - 0% 70% - 79% 30% - 39% 20
  20. 20. Eye tracking glasses This methodology is engaged to better illustrate the buying process of a typical shopper, including which material or signage the respondent looks at and for how long Respondents are asked to wear special glasses* before entering the store / aisle The glasses then record their eye movement from the moment they enter the aisle until they exit the aisle *With 2 built in cameras, one pointing inwards to track the iris and another one pointing outwards; Crosshair in the video footage will show where the shoppers are looking at 21
  21. 21. Virtual shelfRe-creating a virtual shopping experience Virtual shelf testing is a technique that is gaining popularity fast because it generates savings in cost and time. It allows to test the purchase impact of different shelf and pack options What can be measured – Choice / preference: Which SKUs are being put into the shopping cart? – Findability: How long does it take the individual respondent to find a target SKU? How is findability affected by positioning on the shelf, by surrounding competitive SKUs? – Impact of marketing / communication: How is the purchace probability influenced by (print) ads, TV commercials, availability of a coupon etc. – Changes in line-up: Cannibalization through line-extensions, effects of delisting SKUs, loyality after relaunch of line-up These studies are done using software from Harris Interactive Germany 22
  22. 22. Content Ratera & van Galen overview Our services – Trade marketing strategy based on shopper insight – Areas of expertise • Category definition and segmentation • Optimum category layout: path to profit • Ideal range • Promotion • POS communication – Methodologies • In store intercepts/FGD • Virtual shelf testing • Video camera work • Traffic flow monitoring • Store auditing Case studies 23
  23. 23. Shampoo exampleBefore Conditioners on the top, illogic range Small bottles Medium bottles Big bottles at the bottom 24
  24. 24. After: Optimised range of conditioners and grouping of shampoo by variant with matching conditioner next to it Sales +13% Conditioners next to matchingNew shampoogroupingby variant Matching conditioners for all variants 25
  25. 25. Proposed planogram test leads to 22% higher category sales and much more for the initiating brandsBEFORE Refined oil Blended oil Soft oilsAFTER Soft oils Blended oil Refined oil  With this research the case to retailers to change the layout is compelling: – Bring category flow in line with shoppers growth path to more expensive oils – Explain benefits of different oils at point of purchase (demo’s, leaflets) – Give consistent and better location to specialty oils across stores and retailers – Use sub category signage to facilitate cross purchases and to stimulate experimenting with different oils – Develop cross promotions – Range rationalization – Optimum space per SKU 26
  26. 26. Thank you In case of any questions or enquiries please contact Ratera & Van Galen Ratera & van Galen Sdn Bhd 52-3, J 27/70A Desa Sri Hartamas, 50480, Kuala Lumpur Malaysia Tel: 60 3 23008630 Fax: 60 3 23008631 www.rateravangalen.com info@rateravangalen.com

×