Kantar worldpanel promotions introduction


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Kantar Worldpanel measures the grocery purchasing of thousands of shoppers everyday. All purchases are collected - whether they are bought at a discount or at full price. This puts us in a great position to quantify the significance of promotions in the marketplace and the impact they have on shoppers in the short and long term

For more informations please visit: http://www.kantarworldpanel.com/en/Expertise

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Kantar worldpanel promotions introduction

  1. 1. © Kantar Worldpanel© Kantar Worldpanel The constant battle PROMOTIONS IN FMCG
  2. 2. © Kantar Worldpanel
  3. 3. © Kantar Worldpanel Promotions account for around 40% of shoppers’ grocery spend 3 12 week ending data 2014201320122011 Promotions share of shopper spend Percentage
  4. 4. © Kantar Worldpanel Promotions account for around 40% of shoppers’ grocery spend And the discount levels offered show no sign of dropping 4 2014201320122011 Discount level of average deal Promotions share of shopper spend 12 week ending data Percentage
  5. 5. © Kantar Worldpanel What’s the rational behind running a deal? 5 1) Recruit buyers into a brand in the longer term 2) Grow the category 3) ‘Buy’ share
  6. 6. © Kantar Worldpanel 6 20102008 2009 Volume Here’s a soft drinks example in a major retailer – many deals. No evidence of ‘base’ increasing over time as shoppers are ‘recruited into buying at full price’
  7. 7. © Kantar Worldpanel Here’s a pizza example in a different major retailer Different deal mechanics. Same result. Volume 20122011
  8. 8. © Kantar Worldpanel As a brand owner, what it does do is involve you in a game that’s hard to get out of 8 70:3070% chance of growing brand share when escalating promotions (more deal weeks & higher discounts) 30% chance of growing brand share when de-escalating promotions (fewer deal weeks & lower discounts) Based on a 2009 study of 1279 significant brands in the top retailers
  9. 9. © Kantar Worldpanel 9 How can I ensure my promotions are influencing shoppers’ purchasing in a positive way in the short term? So tactical, short term decisions are paramount
  10. 10. © Kantar Worldpanel We follow the transaction history of individual shoppers to understand how they react to deals RSP £2.26 Promotion 2 for £3 RSP £2.26 Saturday 1st Sept Sunday 9th Sept Thursday 20th Sept Observing store and brand purchase repertoires for each panellist allows us to quantify true cannibalising & steal Measuring the interval between purchases made by each panellist allows us to understand whether deals boost overall category buying rates Observing known panellists means we can reveal the sort of people who actually buy your promotions
  11. 11. © Kantar Worldpanel Through careful observation of all households participating in a deal we can quantify where deal volume comes from 20 2 19 29 16 15 Extra Category Trips Expanded Category Volume Stolen from Competitors Cannibalised from Portfolio Subsidising Base later Subsidising Base Immediately Average from over 60,000 observed grocery promotional events
  12. 12. © Kantar Worldpanel 12 All deals expand shoppers’ brand and category volume in the short term. That is they buy more than they otherwise would have done. But – do they always make people spend more than they would have done? Typically we observe the following to be true:
  13. 13. © Kantar Worldpanel 13 Incremental Category value per week (£000s) That’s to say, shoppers collectively spend less on the category - the expanded volume is outweighed by the subsidised spending at these levels. At a top-line level we see that it’s hard for the category to benefit at high discount levels Average from over 40,000 observed branded grocery promotional events This is the average deal in the average category. Not all deal types and categories are the sameThis is the category view. There is a more positive story, typically, for the brand.
  14. 14. © Kantar Worldpanel 14 EXPERT SOLUTIONS – ANALYSIS OF PRICE PROMOTIONS Expert Solutions track real shoppers before, during and after each price promotion they buy. This allows promotions to be examined in forensic detail; line by line, store by store, event by event… How we can help: • Detailed Volumetric Analysis and Shopper Understanding in one project • Rigorous prediction of the impact of adopting a new promotional strategy • Firm and actionable recommendations from an experienced consultant
  15. 15. © Kantar Worldpanel© Kantar Worldpanel The constant battle PROMOTIONS IN FMCG http://www.kantarworldpanel.com/en/Expertise For further information please visit: