me mySHELF and I choice at home vs choice on shelf

PARADOX of CHOICE Preoccupied by decisions maximize WELFARE  maximize FREEDOM  maximize CHOICE B. Schwartz, prof. Social theory and social action – studies link economy/psychology MAKE IT EASIER – NARROW DOWN CHOICE Effects of this choice Paralysis – no liberation Less satisfaction – more regret

THE SAUCE SHELF CONFUSION – FEELING UNCOMFORTABLE

DECISION POINT ?? HOME AT SHELF WHERE DO THEY DECIDE? WHAT DO THEY DECIDE WHERE?

HOME

AT SHELF

CASE STUDY OFF SHELF ON SHELF COMPARISON GERMANY

OFF SHELF

ON SHELF

COMPARISON GERMANY

OFF SHELF

OFF SHELF 4 subsegments non-tomato sauces tomato sauces with additions pure tomato sauces meat sauces X People think in recipe Brand Producer Price People think in sub types

ON SHELF: brand prevails

Recipe and brand have different roles

Consumer mind HOME recipe SHOPPING LIST reminder generically written recall of choice recipe SHELF brand recipe price

What Barilla did Organising shelf according brand So consumers find it easy Within brand according 3 sub segments RTU sauces Pure tomato is strictly speaking another category

Organising shelf according brand

So consumers find it easy

Within brand according 3 sub segments

RTU sauces

Pure tomato is strictly speaking another category

Examples of shelves Before After

Results Dramatic increase in sales Category as a whole increased Re-organisation of the shelf Visual merchandising Targets – results of this project > 10% +10% Volume PL > 8% +8% Value stable Volume Result Target

Dramatic increase in sales

Category as a whole increased

Re-organisation of the shelf

Visual merchandising

Targets – results of this project

What to remember Consumer at home ≠ consumer on shelf Different decision criteria Both on shelf and off shelf insight is needed Not necessary to reflect category perception on shelf – it is about easy to find Not too many SKU’s  avoid confusion + paralysis

Consumer at home ≠ consumer on shelf

Different decision criteria

Both on shelf and off shelf insight is needed

Not necessary to reflect category perception on shelf – it is about easy to find

Not too many SKU’s  avoid confusion + paralysis

QUESTIONS?

QUESTIONS?