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Aya tonoyan (ferrero). kirill ionov (metro c&c)


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Aya tonoyan (ferrero). kirill ionov (metro c&c)

  1. 1. ECR-RUS Forum June, 2nd-4th, 2010 Customer & Shopper Focus as the Basis of Cooperation Aya Tonoyan Kirill Ionov Category Management Head of Space management Ferrero-Russia etro Cash&Carry
  2. 2. Ferrero Group Ferrero is a family owned company, based on the overarching principle of achieving and maintaining consumer satisfaction: The Consumer is our king! F.P.Fulci, Ferrero International Vice President Alba, Italy, 1942 Success Story Based on the Principles: q Loyalty to the company values and principles at all times q Identifying and anticipating Consumer s taste q Constant Research and Innovation q Always ensuring freshness of our products in the stores
  3. 3. Ferrero: Quality & Innovation Leader in Confectionery Best Innovative Ferrero Products in Russia: q Confectioner #4 worldwide q 38 countries q 18 factories; 22 000 employees q Annual Turnover: > EUR 7 bln q Ferrero the World s Most Reputable Company in 2009 - Reputation Institute, NY Ferrero - # 4 on Confectionery market in Russia Bringing Up-to-Date Technologies to Russia: Up- to- Russian Confectionery Market, Value shares, 2009* United Dirol Cadbury Confectioners 3% Others 13% 25% Kraft 14% Mars Nestle 14% 18% (incl Wrigley) 14% Ferrero Source: AC Nielsen, MAT DJ 2010 Factory in Vladimir - EUR 200 mln investment * Incl. Packed Pralines, Chocolate Eggs, Bars, Tablets, Paste, Chilled Snacks, Refresh drops, Flour-based confec.(Ferrero segments)
  4. 4. Ferrero: Shopper Orientation & Category Management In Western Europe q Acknowledged Category Management Expert in Western Europe q Category Management projects with major European retailers In Russia q Professional Shopper Research & Actionable Insights with leading research leading agencies: Pralines Impulse confectionery Chilled snacks Chocolate Paste q Focus on Shopper/Consumer oriented Cooperation with Retailers
  5. 5. Metro Cash & Carry Mission: METRO Cash & Carry is the leading international player in self-service wholesale: customer- focused, international and innovative METRO Cash & Carry, Russia Operates 52 outlets in 36 regions. Sales turnover in 2009 EUR 2,6 bln Over 12 000 employees Cooperating with over 5000 suppliers
  6. 6. Metro Cash & Carry. Leader in Modern Trade Technologies The range of METRO Cash & Carry services all serve the goal of anticipating what professionals need: Øfrom recently introduced delivery services Øto modern Trader Shop concept planning Øto up-to-date customer promotion services via METRO Mail Customers success is the engine of our effort
  7. 7. Metro Cash & Carry: Shopper as Focus of Today Operational Excellence inseparably linked with Customer Excellence The work of the Space Management Department is one of the bright examples of interrelationships of different processes on the path to Excellence Customers success is the engine of our effort
  8. 8. Metro Cash & Carry: Cooperation with Manufacturers Introduction of Category Management in a business tends to alter the relationship between retailer and supplier: the relationship moves to one of collaboration exchange of information and data joint business building
  9. 9. Pralines Shopper Research A. Qualitative B. Quantitative C. Quantitative exploratory stage: quantification of major In-store shopping behavior revealing major patterns in shopping patterns in shopping behavior In-store verification of behavior In-home interviews, category purchase details - Focus-group discussions Moscow, Spb, R-on-Don by channel (N=1600) (6) (N=450) -Decision tree within each channel - In-Store Observations -Shopping missions (purpose/ need) - Details of shopping situation - Category structure/ consumer understanding of February 2009 the category - Shoppers behaviour in case if chosen product is out of stock - Shopping patterns (overall and relating to category purchase) - Choice drivers - Consumer typology (attitudes) - Shopper profiles by channel - Store choice drivers - Basic feedback on POS and promo activities (briefly) - Key Retail Accounts profiles - Store and channels evaluation (briefly) End March-April 2009 -Basic feedback on POS and promo activities -POS/promo concept ranking Moscow S-Petersburg Rostov-on-Don Stores Interviews Stores Interviews Stores Interviews End March-April 2009 Hypermarkets 4 200 4 200 2 100 100 Supermarkets 4 200 - 2 Discounters 4 200 4 200 4 200 Food-stores 4 100 - 4 100 *Covered both Boxes & Parcels Pralines Total sample 700 400 500 9
  10. 10. Pralines Shopper Research Findings Ø Majority of Choice Decisions Taken in-Store: 41% planned purchase at general level (pralines as category) Ø Purchasing by Repertoir of favourite brands: Purchased in the last 3 months - >5 brands Ø Most Popular: - Raffaello box 150 g & impulse pack - Korkunov box 200g * - 3 parcels (all United Confectioners) *Korkunov in 2009 had bigger volume share vs. Raffaello Source: IPSOS, Pralines Shopper Research, February & April 2009
  11. 11. Category Shopper Findings IN-STORE INTERVIEWS q Primary purchase occasion Ø To go with tea (parcels and boxes ~ 100 RUR) 41% q Festive occasions are still very strong Ø Guest & Parties (boxes) -19% Ø Gifting (boxes) -17% 36% Source: IPSOS, Pralines Shopper Research, February & April 2009, in-store interviews: 1600, Moscow, St. Petersburg, Rostov-on-Don
  12. 12. Category Shopper Findings Ø Decision drivers: (%) Total IN-STORE INTERVIEWS I have already bought these 62 BRAND pralines and I like them known product (62%), Specifics of taste and formula 45 favourite taste (45%) 33 Acceptable price manufacturer/brand (27%) Producer company 27 PRICE Good value for money 18 is also high at 33%. Producer country 12 Brand 11 Beautiful pack 9 I wanted to taste novelty 5 Another person asked me 4 Different tastes in one pack 4 Source: IPSOS, Pralines Shopper Research, February & April 2009
  13. 13. Category Shopper Findings Ø Shoppers welcome in Pralines: - wide choice - clear shelf structure - with navigation POSM Ø Most Attractive promos: - price-promos - increased pack size Ø Attractive Pralines presentation: - Teatralisations - Branded shelves, stands, dispensers Source: IPSOS, Pralines Shopper Research, February & April 2009
  14. 14. Shopping Missions in the Channel IN-HOME For Several Specific product Grab & Smthng to Parties & Special INTERVIEWS Stock up Days Top up for today Go indulge occasions For a kid Metro 6.19 -1.90 -3.29 -3.44 -3.35 -0.44 5.78 0.18 Hypermarket 14.87 -1.33 -7.41 -8.38 -8.66 -0.86 11.89 -1.25 / : Positive/ Negative fit between Mission and Channel 58% of Metro Customers are SCO (services, companies, offices & private demand) ; 11% - HORECA; 31% - Traders** Knowledge of Shoppers Missions helps to Optimize Store Main Missions in C&C and Hypermarkets: s Assortment, Layout and Promotions Programmes Stock-up & For Several Days; Parties & Special Occasions; Something to Indulge is present but not the strongest Assortment: Assortment Popular brands Big boxes for the Festive table and for Gifting Medium and small packs for tea-drinking and to indulge oneself Layout: should reflect package design & size; Promotions: Good deal purchase for frequent missions; Striking promo-actions for seasonal occasions 14 Source: Ipsos Pralines Shopper Research; **Internal Metro Data
  15. 15. Categories Location based on Shopper Missions MORE IMPULSE PURCHASE Pastry & Patisserie Biscuits-Waffles-Ginger bread c asion «TEA DRINKING» Traffic Flow Biscuits-Waffles-Ginger bread Chocolate Tablets & Bars Parcels-Marshmallow-Fruit jellies Pralines in Boxes MORE PLANNED PURCHASE ccasion «Gifting-Guests-Parties» Tea & Coffee
  16. 16. Category Decision Tree Category Layout Structured by brands: 1. Brand is a Clear Price indicator for many, hence, display separately medium and premium brands. 2. Within planogram of each brand a clear structure of SKUs by weight/size 3. Parcels & Boxes to be laid out in different aisles. Source: IPSOS, Pralines Shopper Research, February & April 2009
  17. 17. Visual Anchor of the Category Visual anchor through the strongest brand in the category q Raffaello as the Boxes Anchor Brings shoppers in the aisle Helps to orientate Traffic Flow *Raffaello = 100% brand awareness, >17%* market share Brand of the Year in Pralines in 2009 Source: Nielsen Retail Audit, National Urban, Sept-March 2010
  18. 18. Shopper Based Concept Accounting for: q Occasions & Missions q Shopper Decision factors (Decision tree) q Brand as recipe and price tier q Visual Anchor
  19. 19. Shopper Based Layout Visual Anchor Visual Anchor Traffic Flow
  20. 20. Planograms Based on: Sales in RUR Sales in MetroUnits Total Income Shelf Stock coverage Professional assortment Own Brands
  21. 21. New Concept Implementation Results Department manager: It s excellent I asked: Why? Department manager: Now I know where to put each item and suddenly customers see the products much better
  22. 22. New Concept Implementation Results Store staff knows exactly where and how many facing to put of each item No more guts feeling but planning Increasing Department manager s productivity: - saving up to 20% of time, previously spent on shelf-wars with suppliers Planogram effect in Turnover Growth + 3% in this category (implementation case in SPb)* * Source: Metro Internal data, 1 month past implementation in SPb excluding seasonality
  23. 23. Key Learnings q Include in the project Market or Shopper based Targets for Shelf Share/Inventory Optimization q Plan a compact ad-hoc shopper research for more accurate assessment of project results q Navigation brings emotions and clear structure in shopping
  24. 24. Next Steps q Study more Market & Shopper potential information q Update and Follow-up for planograms effectiveness q Consider navigation materials for easy and pleasant shopping
  25. 25. Thank you «Ferrero-Russia» Space management « etro Cash&Carry»