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SMART Study - Modern Retail Shopper\'s Insights


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A syndicated study to understand food and grocery shoppers attitudes and behaviour.

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SMART Study - Modern Retail Shopper\'s Insights

  2. 2. Cities across the country are in varied stages of Modern Retail development; It isModern Retail in India crucial for all stakeholders in Retail to understand shopper behaviour in these types of markets for precisely tailored decision-making Source: Jones Lang LaSalle (Retail: Off the beaten Track) Markets Socio-Economic Situation Modern Retail Presence of National Brands Mature Strongest Socio-economic fundamentals Highest no. of malls Highest Presence Most National Brands Present, New Projects are increasingly Transitional Large Middle class, Above Average Incomes International brands starting to taking shape arrive High growth High Income, High Brand Awareness Substantial no. of malls planned “the next retail destinations” Increased demand for modern Part of medium term expansion Emerging Growing Incomes, Rising Aspirations retail catching attention plans 2
  3. 3. Modern Retail Expanding on their presence in the Mature and Transitional markets, Retailers in India have now started looking at High Growth and Transitional markets. In the past two years, the growth in malls in the smaller towns (55%) is more than twice that of metros (24 %) “…enormous opportunity in non-metro urban markets; the large consumption base there was only marginally affected by the recession, and now has enhanced purchasing power.” - Ashok Rajgopal (E&Y) V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to open 40 outlets over the next three years, starting with 13 stores in 2011. These would come up in Tier-II and Tier-III cities at an overall investment of about Rs 80 crore After stabilising its operations in the larger cities, Spencer’s is now focused on expanding the bigger format stores in 12-14 clusters in the country 3
  4. 4. Food and Food and Grocery spearheads this thrust into smaller towns with retailers likeGrocery Retail Future Group planning to enter 10-12 new towns every year Though just 6-7% of FMCG sales at the all India level, Organized Retail already accounts for 25%+ of sales in large cities Food accounts for more than 60% of Indias US$350 billion retail market. FDI limits in Multi-Brand Retail may be eased soon Grocery retailers seeing faster growth than non-grocery retailers after the financial crisis in 2008 Modern grocery retailers managed to double market share from 1% in in 2005 to 2% in 2010 despite slowdown caused by the financial crisis 4
  5. 5. Objective As a Food/Grocery Marketer, do you frequently wish you could answer the FMCG following questions with certitude? Who buys my products / category in Modern Trade*? How can I better target them with my ATL / BTL promotional efforts? To what extent do discounts / promotions affect purchases in my Category in Modern Trade? How is my category shopped across Modern Trade channels? When does a shopper choose Modern Trade over Traditional Trade? What comprises the Shopper Basket in Modern Trade? How can I use that information to improve the sales of my brand(s)? * For the purpose of the study, Modern Trade is defined as Retail Chain Stores as well as independent Self-Service Grocery Stores which are similar to Supermarkets 5
  7. 7. Deliverables … the following solutions General Shopping Behaviour FMCG Two Types of Reports In-Depth Category Report Channel-Specific Retailers Individual Reports Reports 7
  8. 8. Deliverables Report on General Shopping Behaviour in Modern Trade  General Shopping Behaviour in Modern Trade  Who shops at Modern Trade channels?  Visit Incidence and Visit Frequency of the Major Stores  Key Visit Motivations by Channels  Visit Metrics by channel – Time Spent, Money Spent  Profiling shoppers and shopping behaviour by Visit Motivations  Key Categories Purchased by Visit Motivations and Demographics  Data reported at All India and Town Class levels *Study incorporates the existing as well as the proposed new implementation of Socio-economic Classes * For the purpose of the study, Modern Trade is defined as Retail Chain Stores as well as independent Self-Service Grocery Stores which are similar to Supermarkets 8
  9. 9. Deliverables Sample Output: General Shopping Behaviour 9
  10. 10. Deliverables Category Reports  How is the category shopped?  Shopper Profile: Who buys my category?  Detailed Demographics profile, Lifestyle Attributes, Attitudes to Shopping  Channel Profile: Where is my category bought from?  What are the key Visit Motivations that lead to purchase of my category?  Basket and Adjacency Analysis :  Identify categories exhibiting higher purchase frequency and synergy with my category by channel  Shopper Behavior:  Brands Purchased  Planned / Unplanned Purchase  Purchases on Discount/Promotion  Preferred store for category  Data reported at All India and Town Class levels Report Available for Select Key Categories 10
  11. 11. Deliverables Sample Output: Category Report Frequency: what % of total baskets contain both your product and the potential adjacency. Relevance: tells you how well your product “goes with” the potential adjacency, Synergy: tells you how much more often your category and the potential adjacency are purchased together than their individual probabilities would predict, 11
  12. 12. Deliverables Channel Reports: Supermarkets and Hypermakets  Shopper Behaviour within a channel  Visit Frequency  Visit Motivations  Visit Type (Planned / Unplanned)  Visit Metrics: Time Spent, Amount Spent  Shopper Profile – Demographics, Attitude to Shopping  Shopping Experience at the channel  Channel Perceptions  Loyalty Card Ownership  Basket Contents  Data reported at All India and Town Class levels Report Available for: 1. Supermarkets (More, Food Bazaar, Nilgiri’s, Reliance Fresh etc) 2. Hypermarkets (Spencer’s Hyper, More Megastore, Big Bazaar, Spar, Hypercity etc) 12
  13. 13. Deliverables Channel Specific Reports: Shopper Behaviour within a channel 13
  14. 14. Deliverables … and there’s more!  Brandscapes can create customized reports to suit your exact needs  This includes:  Custom Reports  Store Level Analysis 14
  16. 16. Target Group: The study is geared to target the primary decision maker in everyCoverage household we approach • Primary FMCG Decision Maker in the Household • 20-45 years old • SEC ABC • Shops at Modern Trade outlets at least once a month for Food and Grocery* For the purpose of the study, Modern Trade is defined as Retail Chain Stores as well as independent Self-Service Grocery Stores which are similar to Supermarkets 16
  17. 17. Methodology The Data Collection Process Qualitative Phase Quantitative Phase Quantitative Phase Focus Group Discussions Stage I: Listing Interviews Stage II: Post Shopping Visit 17
  18. 18. Qualitative Phase: 12 Focus Group Discussions across Market Types and different types ofMethodology Decision Makers Mature Transitional High Growth Emerging Total Markets Young Female 1 1 - - 2 25 – 35 years Young Male - 1 1 - 2 25 - 35 years Older Female, 1 1 1 1 4 35 – 50 years Older Males 1 1 1 1 4 35 - 50 years TOTAL 3 4 3 2 12 18
  19. 19. Methodology Quantitative Phase: Deployed in Two Stages Stage – II Post Shopping Visit Interview Recruitment: • Primary FMCG Decision Maker • 20 – 45 years • SEC ABC • Shops at Modern Retail outlets at least once a month for Food and Grocery • Respondent incentivised to contact Field Team after next Shopping Visit for Stage II Stage – I Door to Door Listing 19
  20. 20. Two Stage Data Collection to capture shopper habits along with actual store visitMethodology behaviour, Purchase Receipt collected to accurately reflect transactions Stage I: Door-to-Door Listing Stage II: Post-Shopping Visit Bill Collection + Interview • Awareness / Visit Frequency : Key Retailers • Key Visit Motivations • Reason for Visit • Purchase Incidence : Key Categories • Was visit Planned / Unplanned • Purchase Frequency: Key Categories • Was a Shopping list used? • Total Monthly Spend on Grocery • Time Spent in store • Store Perceptions • Mode of Commute • Profiling Data • Mode of Payment – Cash / Credit / Coupons • Demographics • Alone / Accompanied • Attitudes to Shopping Recruitment for Stage II • Shopping Experience • Household Composition • Bill Analysis** to capture: • Type of Household (Joint / Nuclear) • Basket Contents / Size • No. of Earning Members in Family • Categories Purchased • Monthly Household Income • Brands Purchased • Durable Ownership • Planned / Unplanned Purchases • Discount, if any • Day of week / Time of Day • Bill Amount ** Actual Bill from Visit is collected for analysis Data weighted for Age X SEC 20
  21. 21. Coverage 8500 interviews in 19 cities across 4 key market types, followed by 3275 grocery bills and visit metrics Market Growth Stage Level Reporting Phase I - Listing Phase II – Post-Visit Mature 2000 800 Delhi 1000 400 Mumbai 1000 400 Transitional 2400 900 Ahmedabad 400 150 Bangalore 400 150 Chennai 400 150 Hyderabad 400 150 Kolkata 400 150 Pune 400 150 High Growth 2400 900 Indore 400 150 Jaipur 400 150 Kochi 400 150 Ludhiana 400 150 Surat 400 150 Vadodara 400 150 Emerging 1700 675 Coimbatore 400 150 Nagpur 400 150 Raipur 300 125 Trivandrum 300 125 Udaipur 300 125 All India Total 8500 3275 * For the purpose of the study, Modern Trade is defined as Retail Chain Stores as well as independent Self-Service Grocery Stores which are similar to Supermarkets 21
  22. 22. Categories Typical Categories in basket* FOODS HOME CARE PERSONAL CARE Staples Laundry detergents Skin care creams and Cooking Oils/ Vanaspati Dishwashing products lotions Packaged Tea/ Coffee Disinfectants Shampoos & Cold Beverages Toilet Cleaners Conditioners Packaged Spices Air Fresheners Hair colouring products Poultry & Non-Veg Mosquito/ Insect Repellants Talcum Powders Milk and Dairy Products Bathing soaps/ shower gels Perfumes Frozen Foods Toothpastes Deodorants Instant Foods Antiseptic creams & liquids Lipsticks & Nail Polish Instant Mixes, Instant Pasta, Instant Noodles, Packaged Soup, RTE Foods Biscuits and Snacks Biscuits/Cookies, Chips, traditional snacks * Category quotas will be monitored for those categories which have been pre-subscribed to 10 August 2011 22
  24. 24. Timelines Proposed timelines Activity Timeline Launch of Fieldwork September 2011 General shopping behaviour in Modern Trade Dec 2011 – Jan 2012 Category and Channel Reports 3-4 weeks post request Reports can be made available from Dec 2011 10 August 2011 24
  25. 25. Investment Investment Required Report Type Early Bird Offer* (INR) Regular Price (INR) General Shopping Behaviour in Modern Trade 4,00,000/- 5,00,000/- Category Reports (Single category) 4,00,000/- 5,00,000/- Channel Reports (Single channel) 3,50,000/- 4,40,000/- * Early Bird pricing eligibility limited to subscriptions confirmed before 25th August and advance payment received before 31st August Costs are exclusive of Service Tax which would be charged at prevailing GOI rates Payment Terms 50% advance payment on subscription to a report 50% payment on report delivery 10 August 2011 25