The document provides an overview of Intermarché, the third largest French food retailer. It discusses how Intermarché has prepared for an ongoing "price war" in the mature and competitive French market. Through developing high quality private label products and insight-driven pricing strategies optimized with big data and data science, Intermarché has grown its market share from 2013 to 2019 while creating value for both customers and its business. The document introduces ActiveViam as a data solution provider that can help Intermarché continue innovating its pricing approaches through test and learn methods.
Presentation by Frode Nordseth, CEO SCM Spain/SVP Schibsted Classified Media.
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Tech is fundamentally changing the world around us at an exponential rate. Being at the forefront of the media business does not only mean adapting to survive, it means reinventing our core digital products.
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At an investor meeting in Copenhagen Schibsted told attendees what Schibsted will focus on in 2014.
Schibsted own
Subito.it Leboncoin.fr Blocket.se Finn.no Infojobs Car4you Hasznaltauto.hu willhaben.at mudah.my ...
and many other classified websites.
Digitalisation is transforming industries individually; the marketing of products is becoming more challenging due to an increasingly fragmented customer journey which has reached a new height of complexity. What about live marketing and its relevance for marketers?
Held by Stephan Peyer, Chief Development Officer, MCH Group SA (Switzerland), at UFI Open Seminar in Basel, June 20-22 2016
www.mch-group.com
At London Media we have a deep understanding of all things tech and have overseen some highly successful campaigns for leading brands, SMEs and smaller businesses.
If you're a tech business - big or small - we'd love to talk to you about your comms needs and how we can help.
We work on a retained basis for Virgin Media Business producing engaging content around tech trends for their website.
We have also been hired two years running to promote VMB’s #VOOM - the UK’s biggest business competition.
Our other work ranges from raising the profile of leading British consumer tech business, Bullitt Group, securing coverage in the likes of the Economist, FT and Telegraph, to launching peer-to-peer parking service spacehopper and ground-breaking food freshness technology It's Fresh.
Read on to learn about what we’ve achieved for various clients…
Airtouch had the pleasure to develop the website Sistalgia.es for the big multinational brand Bimbo.
Successfully launch Mobile and Web Products – We take care of everything.
Presentation by Frode Nordseth, CEO SCM Spain/SVP Schibsted Classified Media.
Schibsted Classified Media (SCM) is a leading online classifieds business in Europe. We have operations in several mature markets in Western Europe and in growing markets in Asia, Eastern Europe and Latin America.
EVP Frode Eilertsen spoke about Schibsted's digital transformation and our way forward at the Media Business conference in Oslo.
Schibsted, Google and Facebook were all invited to speak at the recent conference in Oslo, where the main theme was: “Swimming with the sharks” – on how the competition from global giants like Facebook and Google influence the media business.
Frode Eilertsen, Schibsted Media Group's EVP for Strategy and Digital Transformation, outlined our powerful effort into technology and advanced data analytics, and how we aim to build national ecosystems that have the potential to compete with Google and Facebook.
Tech is fundamentally changing the world around us at an exponential rate. Being at the forefront of the media business does not only mean adapting to survive, it means reinventing our core digital products.
Rian Liebenberg, Chief Technology Officer from Schibsted Media Group talked about how a 177-year legacy company catches warp speed digitally and pushes the boundaries beyond transformation.
At an investor meeting in Copenhagen Schibsted told attendees what Schibsted will focus on in 2014.
Schibsted own
Subito.it Leboncoin.fr Blocket.se Finn.no Infojobs Car4you Hasznaltauto.hu willhaben.at mudah.my ...
and many other classified websites.
Digitalisation is transforming industries individually; the marketing of products is becoming more challenging due to an increasingly fragmented customer journey which has reached a new height of complexity. What about live marketing and its relevance for marketers?
Held by Stephan Peyer, Chief Development Officer, MCH Group SA (Switzerland), at UFI Open Seminar in Basel, June 20-22 2016
www.mch-group.com
At London Media we have a deep understanding of all things tech and have overseen some highly successful campaigns for leading brands, SMEs and smaller businesses.
If you're a tech business - big or small - we'd love to talk to you about your comms needs and how we can help.
We work on a retained basis for Virgin Media Business producing engaging content around tech trends for their website.
We have also been hired two years running to promote VMB’s #VOOM - the UK’s biggest business competition.
Our other work ranges from raising the profile of leading British consumer tech business, Bullitt Group, securing coverage in the likes of the Economist, FT and Telegraph, to launching peer-to-peer parking service spacehopper and ground-breaking food freshness technology It's Fresh.
Read on to learn about what we’ve achieved for various clients…
Airtouch had the pleasure to develop the website Sistalgia.es for the big multinational brand Bimbo.
Successfully launch Mobile and Web Products – We take care of everything.
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lES VERGERS DE CHÂTEAUBOURG - UNIFRUIT
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The Print World’s Premier Trade Show - Meets GlobalChannelPartners & PrintMediaPartners the Print World’s Premier Channel Opportunities.
Advanced Strategy - Growth - Innovation - Leadership - Profitability - Alliances - Scenarios - Technology reaches 150 primary & 58 secondary countries
Manufacturers - Distributors - Dealers - Print Associations - Print Media - Print Consultants - Print Events/Exhibitions - Major & Trade Printers / Packagers/Creatives/Publishers - Education/Academic/Research Institutions.
Exclusive Channel Summit - Library - KeyNoteS - Academy - Scenarios - Analytics - Programs - Networks - Markets - Research
Find out more on: http://bit.ly/2JiNhro
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A short selection with key results of the international most influential brand survey by Ipsos. This deck shows the results of the Belgian leg of the survey. The survey ran end 2014. Focus of the survey is to measure the influence brands have on our life. If you want to find out more about the survey or your brand contact gerd.callewaert@ipsos.com.
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Storytelling about how the environment, sales potential and customer experience are being damaged by the status quo of final mile deliveries – and a solution to all three problems.
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A.I.F. INGREDIENTS
ARMOR PROTÉINES
BAlPE CRÊPES MACHINES
EPI INGREDIENTS
FIT
lES VERGERS DE CHÂTEAUBOURG - UNIFRUIT
SECMA CABON
VINPAI
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The 2016 EMEA Benchmarks Report provides brands and agencies with key insights into the complex world of converging TV and digital video. Whilst broadcast TV continued to command the lion’s share of media spend in all European markets, digital video investments
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Objective is to reach the market share by 2 % in Indian retail industry through B2C channels and break even
Initiatives taken by Carrefour in India:
Before FDI:
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Talks with Pantaloons group for Joint Venture
Assumptions:
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Plans to open B2C stores in metro cities
Similar to Higher quality at a better price in food retail_ActiveViam_Intermarche (20)
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Higher quality at a better price in food retail_ActiveViam_Intermarche
1. Antoine Devos
Head of Pricing and
Commercial Performance
Intermarché
David Owen
Retail Sales Director
ActiveViam
2.
3. • #3 Largest French food retailer
with a 15% market share
• #4 French food manufacturer
• Stores are independently owned
• Stores from 7,500 to 72,000 sq.ft.
• 2 000+ stores in France
• $35B Revenue in 2018
Introducing Intermarché
“Manufacturer and retailer”: an identity, a strategy, since 1969.
4. We live a “price war” on a mature and competitive market
95.9
100.0
92.7
101.8
90
92
94
96
98
100
102
104
2013 2014 2015 2016 2017 2018
Overall
National Brands
Private Labels
Source : IRI France
CPG Price variations between 2013 and 2018
6. 20.3 19.6
14.2
11.7 11.3
10.3
4.6
19.9
21.6
15.0
10.9
10.1 10.8
5.9
Carrefour
Group
Système ULeclerc Auchan
Group
Intermarché
Group
LidlCasino
Group
+2,0 pts
+0,8 pt
+0,5 pt
+1,3 pts
Year 2013
Year 2019
Source : Kantar WorldPanel
Market Share variation between 2013 and 2019
And we are among the “winners”
7. “Higher quality products at a better price” ?
Our vision : “We are manufacturer and retailer to
help you eat a little bit better everyday”
8. Our strategy : create value through good and affordable
private label products
Being customer-centric
to optimize price image and maximize margin-mix
Value for clients Value for our business
9. Deploying insight-driven pricing at a larger scale
Pricing with perfect
precision is essential
Big data
Data
Science
Pricing
rules
Monitoring
10. One use case : price gap optimization in yogurts category
Big data
Data
Science
Pricing
rules
Monitoring
0%
10%
20%
30%
40%
50%
60%
70%
80%
10% 20% 30% 40% 50%
Flavoured custard
Fromage Frais
VolumeshareforPrivate
label(%)
Price gap Private Label vs Nat. brand (%)
+15% volumes
in 12 months
+5pts of volume
share
Cannibalisation
of other flavours
+8%
more expensive
than
price leader
positionning
11. Pricing is a (never-ending) journey !
Test & learn approach
For both team, management and features innovation
12. ActiveViam
• Data solution provider since 2005 in
Americas, Europe, APAC
• Integration of AI/ML with advanced analytics
• Highly adaptable
Editor's Notes
Hello everyone, I’m Antoine Devos. I’m very glad… and stressed to be with you today.
Let’s start with a few words on my career : I have a 9 years experience in the retail sector : 5 years as a management controller in the clothing industry, the las 4 years in pricing :
Two years as a pricing manager for Leroy Merlin, the largest home improvement retailer in France
And almost two years now as the head of pricing and commercial performance at Intermarché, one of the major French groceries retailer…
… In fact, the third largest food retailer in France with a revenue of 35 billion € and a 15% market share.
Intermarché has been created 50 years ago, and counts today more than 2000 stores covering most of the French territory : as a matter of fact the average distance between two Intermarchés in under 20km or approximately 10 miles !
But what makes us different/special is our unique model : Manufacturer and retailer. Each store is independently owned, but together, our private owners, collectively invested to build the 4th French food manufacturer with 62 plants, 11000 employees. And fun facts : we are both the biggest French fishing fleet and the first producer of diapers !
Total stores of 2400 including stores in other European countries like Belgium, Portugal and Poland
If there are some competitors in the audience, they could probably testify that, the French food market is mature and the level of competition is high.
And in a mature market, where value is stable, with no more freeland to conquer, everyone is battling to maintain its market share… almost buying it through agressive promotions and never-ending price drops !
In fact, as we can read on this graph from IRI data, that prices have decreased by around 4% between 2013 and 2018.
It’s even worse fort the National brand items that have decreased by more than 7% in 5 years. To gain market shares, competition almost « commoditized » those national brands products, like Coca cola. Why ? Because those products are on the shelves of every retailer, it’s easy to follow and compare the prices fort both clients and competitors…
CPG = Consumer packaged goods
As our company motto is : « tous unis contre la vie chère », in English : « all united against expensive life »
Any one can easily understand that we’ve been part of this price war. We even implemented a home-made pricing tool to shoot prices down massively ! I call it pricing with a bazooka.
With one simple pricing strategy : erasing last month prices to aligne to the latest prices applied by the price leader.
We created a pricing tool that would only focus on competition alignement. A tool that is bombing the place ! Every Month ! Erasing, former pricers to align (with a coefficient) to the lowest price applied by the competitors.
And then my team has to do its best to avoid collateral damage :
Each pricing analyst spends 10 days per month cleaning the mess : correcting any mistake done by the competitor-alignement machine and restorate price consistency.
Only price fixing, only price production. No customer analysis, no scenario, no optimization. Zero intelligence, zero data empowerment…
I GUESS THAT IT SOUNDS FAMILIAR TO SOME OF YOU HERE, IN THE AUDIENCE
But apparently it worked ! In the last five years, with have increased or market share by almost 1 point without any buyout of a competitor.
Interesting fact : the companies that invested the most in their price positionning are those who in the meantime improved the most their market share.
No 100% correlation but for sure one of the main variables to explain it !
So why am I here, telling you my story ? If we are in a commodity-like market, and if manufacturing lower prices, even if its painfull / time consuming makes you gain market share, there is no room for « higher quality products at a better price »
Here comes our challenge !
Our challenge as a company and as a pricing department !
Good Price positionning will always be a basic for a mass market supermarket chain, but there is space to do it more efficiently.
-> To
But We have a vision : « We are manufacturer and retailer to help any one eat a little bit better every day
Pricing must embody this vision
And we want to start a pricing journey to ensure our vision :
Keeping decreasing the prices of national brands, lowering our margins rates and threatening our private labels volumes. In you
How to implement a pricing strategy that empowers this vision ?
How we ensure that we sell more and more private label products, with a good quality at an affordable price (as being discount is in our DNA, and as we adress all the people from France, no segmentation possible) to more and more customers !
New customer expectations :
-> Consumers have new definitions of quality
-> New ways to prepare meals are growing in popularity
-> Customer service expectations are evolving
This corporate strategy must be embodied by our pricing strategy.
VALUE FOR CLIENTS
Offering private label products thats suits their needs and wallet.
-> Answering to what consumers say : they want to buy food that is tasty and good for their health, and also for the environment, the others (for instance the farmers)
-> and answering to what consumer do : keeping in mind that puchasing power is under constraint and keeping prices attractive
VALUE FOR OURSELVES
How to create a virtuous circle : producing the right product, at the right price positioning so that we can get volumes to keep investing :
-> on our plants to meet the new consumers needs
-> on our stores to refresh constantly our concept with news features and services
We decide with our board to empower pricing with data and a digital tool !
So they gave us a good sniper riffle to be more precise. Alright, no more weapon analogy ! We can’t be precise and tackle thousands of products ! We need a powerful tool
I could continue on my former analogy saying that we need to remplace the bazooka with snipers. But it would not do the work. Because our people number is limited and the insights unlimited, we can’t succeed even if they transform themselves into shoot efficient prices with
Big data : aggregating internal and external data sets
Data science : uncovering customer-insights
Turn insights : into evolving products clusters and adjust price rules parameters accordingly
Run and compare and follow up price scenarios impacts within a data analytics platform (from global perspective to the finest granularity)
That what we choosed Activeviam is all this features in the same platform
Yogurt category is a category where our private label products have a poor price index against the price leader : we are 8% more expensive
And it is very costly to invest to decrease our prices for the all category to reach a better index : over 10m€ investment
The board did not want to spend that much money
Taking into account only competitor prices we would only know that is average price gap on the market is 30%. But is it efficient price-image and margin wise speaking ?
Using big data from our sales transactions, we found interesting insights : there is a price gap for each consumer need !
We understood that they were no need to sale at a 30% price decrease the fromage frais and that we could maintain a 50% volume share with only 20% price decrease in comparison to the national brand item.
We have a possibity to raise prices of Fromage Private label item without wide cannibalization from national products. Maximizing our revenue and margin, even if it deteriorates our price index it wil have almost no impact on our price image…
Conversely, we have some price gap issue with the vanilla flavour custard
There is no perfect answer. Things are moving all the time starting with your team and your understandin