Ratera & van Galen is an independent market research and retail consultancy firm that specializes in shopper research and trade marketing strategy. They use various methodologies like in-store intercepts, focus groups, video monitoring, and traffic flow analysis to understand shopper behavior. Their services help clients with category definition, category layout, ideal product ranges, promotions, and point-of-purchase communication to drive profit through an improved shopper experience.

1. Ratera & van Galen
How to win at Point of Purchase
2010

2. Content
 Ratera & van Galen overview
 Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• In store intercepts/FGD
• Virtual shelf testing
• Video camera work
• Traffic flow monitoring
• Store auditing
 Case studies
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3. Ratera & van Galen
Ratera & van Galen (R&G) is an independent market research and retail
consultancy firm working for both manufacturers and retailers across channels.
We specialise into:
– Shopper research
– Trade marketing strategy
Our long-time expertise in shopping and decision making behaviour, combined
with use of the most recent and sophisticated techniques, give us a strong
position in this area.
R&G originated in London, we had previous working experience in France,
Holland, Spain, Switzerland and UK and was established in 1998 in Malaysia.
Partner offices:
Asia: Bangkok, Dubai, Jakarta, Manila, Singapore, Beijing,
Guangzhou and Shanghai
Europe: Amsterdam and Barcelona
We are members of The Ebeltoft Group, a global group of retail expert
companies that work together on international projects and exchange
knowledge in their fields.
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4. Ratera & van Galen: The shopper
research specialist
This book provides
practical advice about
shopper needs; retail
environments; shopper
trends; shopper
marketing strategies;
retailing relationships;
and effective packaging.
With contributions from:
Paco Underhill
Brian Harris
Herb Sorensen
Toon van Galen (Ratera
& van Galen)
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5. Clients Ratera & van Galen
FMCG
&
related
p
p PEERLESS
PEERLESS
Banking
Automotive

6. Clients and partners
* * * * *
HM / SM *
* * * *
* Shedanvie * * * Sunshine * *
* * *
* *
C-Store/
mini
markets * * *
Pharmacies * * *
Other Traditional trade/ sari sari, Chinese Medical Hall, on premise outlets
channels*
* Not direct clients: working experience with those retailers

7. Solutions to common problems that our clients face
 Ideal category definition and grouping: What type of products belong
together and for what reasons
 Optimum category layout: How can we upgrade shoppers to buy more or
more premium goods from our category?
 Purchase solutions driven by shoppers’ segmentation
 Store layout adjusted to shoppers’ missions
 Optimum range per channel
 What are key decision factors when people buy this category and how do
we use them more effectively against our competitors?
 How do we trigger impulse purchases in store?
 Which promotion works best in the category?
 Can we optimize the path to purchase communication in order to drive
profit?
 What is the path to profit? Can we seduce shoppers to upgrade?
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8. Project set up
Stage Key objective Methodologies
Gain agreement to conduct
1. Retailer presentation Presentation to retailers
research
Summarize relevant data to Review of all relevant data from
2. Data review identify key opportunities and TNS, Dunnhumby, Synovate,
information gaps Nielsen and/or other sources
In store interviews
Focus group discussions – FGDs
3. Closing the gap Gain shopper insights Store audits & scan data analysis
Traffic flow analysis
Retailer interviews
4. Presentation of Development merchandising
Workshop with Client team
findings strategy
5. Implementation
Implementation strategy Ongoing support to Client
strategy
6. Selling in to retail Gain retailer agreement to
Presentation to retailers
partners implement
Evaluate project and identify Client internal process/ post
7. Post review
learnings interviews and measurement
99

9. Some of our methodologies
We film shopping Virtual
We track POS behaviour shelf
communication We
testing measure
space &
We analyze number
traffic flows of sku’s
We interview
customers at
point of decision We
analyze
We observe scan data
browsing behaviour
prior to purchase We identify
hot & dead
We follow shoppers from spots in the
the beginning to the end store and
of their shopping trip in the shelf
Eye tracking Optimize
Loyalty card product and
Focus groups solutions assortment
Retailer interviews
10

10. Trade Marketing Strategy
based on shopper insight

11. Trade marketing strategy
1 2 3
Category Shoppers Customer
strategy strategy strategy
Definition & segmentation Shopper understanding Channel understanding
- Identify the definition and the - Understand the shopper behaviour - Shopper behaviour difference by
segmentation of the category based including triggers and barriers for the channel
on shopper needs category at point of purchase in detail - POP vision by channel
- Ideal range and merchandisign by
Opportunity assessment POP tracking channel In-store vision
- Identify opportunities based on - Measure POP material’s impact - Define excellent in-store execution
shopper insights that deliver category - Define ideal message at POP standards that will positively influence
growth - Define optimum location of POP shopper behavior
materials
12

12. Content
 Ratera & van Galen overview
 Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• In store intercepts/FGD
• Virtual shelf testing
• Video camera work
• Traffic flow monitoring
• Store auditing
 Case studies
13

13. Category definition and segmentation steps
 Step 1: Category Decision Tree
– What are current decision criteria
– Multi level: first level is by flavour, but what about next level, by pack type, price?
– Work out in detail what to do with smaller varieties, non standard pack sizes, cartons
 Step 2: Assessment current category presentation
– Right location in store, adjacent categories
– Current layout shoppers likes & dislikes
– Find barriers in purchase process
– Sales and profit performance total category and for client
– POS material performance
 Step 3: Develop and test new options
– Develop merchandising options, CDT is the base, use other key criteria:
– Shoppers rating
– Sales and profit driving
– POS material performance
 Step 4: post testing
14

14. Range tools
 Range check via store audits and scan data analysis
 Substitution analysis
 In store quantitative assessment
 Qualitative assessment via FGD’s
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15. Who is the right target shopper for a promotion?
 Target the right shopper:
– Shoppers that buy another brand currently and are interested to change at regular
price
– Shoppers that use different brands and are open to become more loyal
– Shoppers that do not know your product yet
 Use the right promotion:
– Multi buy, purchase with purchase, direct price off, every type has it’s different impact.
Aiming the same price off at all shoppers all the time has no proven impact on long
term sales but minimizes the profit
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16. The majority of promo spend is aimed at those that will
not switch to your brand
 A combination of scan data analysis and shopper interviews will tell us
which part of the sales increase is really incremental and where it comes
from
Subsidy existing buyers
% of shoppers buying
Temporary buyers
Some of these might stick
with my brand Temporary buyers
after promo
Brand A Brand A
17

17. POP tracking
Recommended POS ad for each part in path of purchase
based on recall and phase of shopping trip
Out of
Category Zone
Out of Sight
OUTSIDE STORE 18

18. Content
 Ratera & van Galen overview
 Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• (In store intercepts/FGD)
• Traffic flow monitoring
• Virtual shelf testing
• Video camera work
• Store auditing
 Case studies
19

19. Shopper’s path in minimarket: hot spots near entrance,
many locations are never visited, shopper path is
inefficient
100% & above- passing 60% - 69% 20% - 29%
% Passing 90% - 99% 50% - 59% 10% - 19%
80% - 89% 40% - 49% 9% - 0%
70% - 79% 30% - 39%
20

20. Eye tracking glasses
 This methodology is engaged to better illustrate the buying process of a
typical shopper, including which material or signage the respondent looks at
and for how long
 Respondents are asked to wear special glasses* before entering the store /
aisle
 The glasses then record their eye movement from the moment they enter
the aisle until they exit the aisle
*With 2 built in cameras, one pointing inwards to track the iris and another one pointing outwards;
Crosshair in the video footage will show where the shoppers are looking at
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21. Virtual shelf
Re-creating a virtual shopping experience
 Virtual shelf testing is a technique that is gaining popularity fast because it
generates savings in cost and time. It allows to test the purchase impact of
different shelf and pack options
 What can be measured
– Choice / preference: Which SKUs are being put into the
shopping cart?
– Findability: How long does it take the individual respondent
to find a target SKU? How is findability affected by positioning
on the shelf, by surrounding competitive SKUs?
– Impact of marketing / communication: How is the purchace
probability influenced by (print) ads, TV commercials,
availability of a coupon etc.
– Changes in line-up: Cannibalization through line-extensions, effects of delisting
SKUs, loyality after relaunch of line-up
 These studies are done using software from Harris Interactive Germany
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22. Content
 Ratera & van Galen overview
 Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• In store intercepts/FGD
• Virtual shelf testing
• Video camera work
• Traffic flow monitoring
• Store auditing
 Case studies
23

23. Shampoo example
Before
Conditioners on the
top, illogic range
Small bottles
Medium bottles
Big bottles at the
bottom
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24. After: Optimised range of conditioners and grouping of
shampoo by variant with matching conditioner next to it
Sales +13%
Conditioners
next to matching
New shampoo
grouping
by variant
Matching
conditioners for
all variants
25

25. Proposed planogram test leads to 22% higher
category sales and much more for the initiating brands
BEFORE
Refined oil Blended oil Soft oils
AFTER
Soft oils Blended oil Refined oil
 With this research the case to retailers to change the layout is compelling:
– Bring category flow in line with shoppers growth path to more expensive oils
– Explain benefits of different oils at point of purchase (demo’s, leaflets)
– Give consistent and better location to specialty oils across stores and retailers
– Use sub category signage to facilitate cross purchases and to stimulate experimenting with
different oils
– Develop cross promotions
– Range rationalization
– Optimum space per SKU
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26. Thank you
In case of any questions or enquiries
please contact Ratera & Van Galen
Ratera & van Galen Sdn Bhd
52-3, J 27/70A
Desa Sri Hartamas,
50480, Kuala Lumpur
Malaysia
Tel: 60 3 23008630
Fax: 60 3 23008631
www.rateravangalen.com
info@rateravangalen.com