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Ranjgill

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Ranjgill

  1. 1. Incorporating TNS Retail & Shopper © TNS 2014 Evolution of the Russian shopper and the implications for research Ranj.gill@tns-global.ru
  2. 2. Incorporating TNS Retail & Shopper © TNS 2014 Win the brand battle by understanding where and how to influence the shoppers brand decision 2 stories… 2 Win the shoppers’ heart by providing a happy shopping experience Love and happiness The battle
  3. 3. The love and happiness story… 3
  4. 4. Incorporating TNS Retail & Shopper © TNS 1234 You need to continually work to understand the object of your affection 4 The Russian shopper is evolving  Shopper attitudes and priorities are changing  Channel usage is changing  Retailer usage is changing
  5. 5. Incorporating TNS Retail & Shopper © TNS 1234 Russian shoppers are becoming more money conscious 5 20 30 40 50 60 70 80 2008/1 2009/1 2010/1 2011/1 2012/1 2013/1 2014/1 % population % It is silly to spend money on luxury goods even if you have lots of money If I can't buy at once the thing I like, I will save money for its purchase It's better to make a purchase on credit without any delay rather than to save money for it I tend to spend money without thinking Save until can afford the purchase +3% Silly to spend money on luxury good, even if you have lots of money +7% Better to purchase on credit rather than save -3% Tend to spend money without thinking -8% Source: Marketing Index / TGI, Russia (cities 100+), N=60592 Lifestyle statements
  6. 6. Incorporating TNS Retail & Shopper © TNS 1234 They are less worried about the brand image and impact on status 6 20 30 40 50 60 70 80 2008/1 2009/1 2010/1 2011/1 2012/1 2013/1 2014/1 % population % I do not refrain from paying more for well-known brands I buy new products before most of my friends I like to buy things that make me look respectable Buy new products before most of my friends +4% Refrain from paying for well-known brands +4% Buy things that make me look respectable -8% Lifestyle statements Source: Marketing Index / TGI, Russia (cities 100+), N=60592
  7. 7. Incorporating TNS Retail & Shopper © TNS 1234 They are more ethically conscious 7 40 45 50 55 60 65 70 75 80 2008/1 2009/1 2010/1 2011/1 2012/1 2013/1 2014/1 % population % When I hear that a company damages environment, I don't buy its products I would be prepared to pay more for environmentally friendly products I buy fair trade products when available I like to buy products from companies who give something back to society Prefer to buy from companies that give back to society +7% Pay more for environmentally friendly products +2% Don’t buy from companies who I have heard damage the environment +3% I buy fair trade products when available -3% Lifestyle statements Source: Marketing Index / TGI, Russia (cities 100+), N=60592
  8. 8. Incorporating TNS Retail & Shopper © TNS 1234 Kiosks and Food markets are steadily declining 8 0 10 20 30 40 50 60 70 80 % population visit channel more than 2-3 times per month % Hypermarket/Supermarket Self-service stores Kiosks Food Market 2008 crisis Tobacco ban Hypermarket/supermarket +5% Kiosks -18% Food market -13% Online +1% Channel purchased more than 2-3 times per month Source: Marketing Index / TGI, Russia (cities 100+), N=60592 Self-service stores +4%
  9. 9. Incorporating TNS Retail & Shopper © TNS 1234 Magnit and Auchan have been the biggest winners in terms of awareness and traffic over the past 5 years. Pyaterochka has defended its position 2009 2014 Pyatiorochka Magnit Auchan Perekrestok Metro Karusel' Lenta O'KEY SPAR Billa Bakhetle 0 5 10 15 20 25 30 35 40 45 0 10 20 30 40 50 60 70 80 awareness, % visiting, % 2014/1 HY Russia Retailer awareness vs visit Source: Marketing Index / TGI, Russia (cities 100+), N=60592 Metro Auchan Grossmart Karusel' Lenta Magnit Paterson Perekrestok Pyatiorochka Ramstor 0 5 10 15 20 25 30 35 40 45 0 10 20 30 40 50 60 70 80 awareness, % visiting, % 2009/2 HY Russia A +24%, V +16% A +21%, V +9% A +10%, V +6% 9
  10. 10. Incorporating TNS Retail & Shopper © TNS 1234 Karusel, Metro and Pyaterochka are investing most heavily in ATL advertising 10 808 839 811 724 456 474 658 052 661 511 770 152 487 455 643 316 101 244 263 161 518 254 032 499 212 439 300 126 068 995 122 838 679 94 470 022 83 051 750 74 184 060 KARUSEL (CHAIN OF SHOPS) METRO PYATEROCHKA O'KEY (HYPERMARKET) PEREKRESTOK (CHAIN OF SHOPS) LENTA MAGNIT (CHAIN OF SHOPS) NASH GIPERMARKET SEDMOY KONTINENT BILLA (SHOP) DIXY (FOODSTUFF) SELGROS AZBUKA VKUSA SPAR RUB TOP 20 retailers by advertising budget Source: Media Intelligence, Russia Includes: TV, Radio, Press, Outdoor
  11. 11. Incorporating TNS Retail & Shopper © TNS 1234 But ATL advertising alone is not enough to drive shoppers to the store 11 Source: Media Intelligence Source: Marketing Index / TGI, Russia (cities 100+), N=60592 Pyatiorochka Magnit Auchan Perekrestok Metro Karusel' 0 10 20 30 40 50 60 0 5 10 15 20 25 Ad spend share, % visiting, % 2014/1 HY Russia
  12. 12. Incorporating TNS Retail & Shopper © TNS 1234 How can you win the heart of the shopper?... … you need to provide a happy shopping experience 12
  13. 13. Incorporating TNS Retail & Shopper © TNS 1234 ““No one wakes up in the morning thinking ‘may I suffer the whole day’…” 13 The habits of happiness Ted2004 Similarly… No one walks into a store thinking; may I spend longer than I planned in this store may I find it difficult to find my products may I be disrupted continually may staff treat me badly Matthieu Ricard
  14. 14. Incorporating TNS Retail & Shopper © TNS 1234 If service is bad, or shoppers have to spend time searching for products, they are less likely to purchase and may not return again 14 40 45 50 55 60 65 70 75 80 85 2008/1 2009/01 2010/1 2011/1 2012/1 2013/1 2014/1 % population % I can refuse to buy something due to a bad service and will avoid this store in future I don't like when sales people in shops approach me right away with questions I don't like to spend much time at shops searching for a certain product Refuse to buy something due to a bad service and will avoid this store in future +2% Don't like when sales people in shops approach me right away with questions -1% Don't like to spend much time at shops searching for a certain product 0% Lifestyle statements Manufacturers can improve the situation Source: Marketing Index / TGI, Russia (cities 100+), N=60592
  15. 15. Incorporating TNS Retail & Shopper © TNS 1234 Searching is a negative experience… By combining eye tracking with neuroscience (EEG), we know that… Positive emotions are experienced only when the shopper finds products that match their needs Shoppers may scan as many as 116 products but actually reject 113 of them. No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No Yes No No No No No No No No No No No No No No No No Yes No No No No No No No No No No No No No No No No No No No Yes No No No No No No No No No No No No No No No No No No No No No No No 15
  16. 16. Incorporating TNS Retail & Shopper © TNS 1234 Making it faster and easier for shoppers to find the products they want is proven to increase shopper spending 16 4,48 2,78 2,91 3,06 2,57 2,29 0 - 10 11 - 20 21 - 30 31 - 60 60 - 120 120 + Time Taken to select first product (seconds) % Conversion to purchase Buy time Fast Slow Low High Faster buy time = higher conversion Faster buy time = more products bought
  17. 17. Incorporating TNS Retail & Shopper © TNS 1234 How can you make shopping faster and easier?... …you need to truly understand the shoppers’ needs, and then satisfy them 17
  18. 18. Incorporating TNS Retail & Shopper © TNS 1234 Let’s look at a case study within the cheese category, which is quite saturated and with no growth Great to consume …but difficult to shop 18
  19. 19. Incorporating TNS Retail & Shopper © TNS 1234 Insight: category laid out by product, does not match shopper search or consumer needs 19
  20. 20. Incorporating TNS Retail & Shopper © TNS 1234 Facilitate: category laid out by occasion/shopper search 20
  21. 21. Incorporating TNS Retail & Shopper © TNS 1234 Occasion based visuals Extra tasteful The family Cooking 21
  22. 22. Incorporating TNS Retail & Shopper © TNS 1234 Colour coding and description … outside store … inside store … in leaflets kvickly has made it easier for you to find the cheese you are searching - see the colors on the shelf 22
  23. 23. Incorporating TNS Retail & Shopper © TNS 1234 Results ‒ 85% prefer new layout ‒ Greater cross- segment purchase ‒ ‘I’m trying more cheeses, confident that I’ll like them’ ‒ Rated number 1 Category Supplier (vs 14 previous) (Retailer: Kvickly Denmark) ‒ Category uplift ‒ Store profits uplift ‒ ROI in 10 months SHOPPER RESULTS RETAILER RESULTS FINANCIAL RESULTS 23
  24. 24. The battle… 24
  25. 25. Incorporating TNS Retail & Shopper © TNS 1234 How can you win the brand battle?... …you need to understand where and how to influence the shoppers brand decision 25
  26. 26. Incorporating TNS Retail & Shopper © TNS 1234 There are two types of shopper at shelf Decided …know what product they will buy Open …make some kind of decision at the shelf 26
  27. 27. Incorporating TNS Retail & Shopper © TNS 1234 83 81 81 78 76 76 73 69 67 66 66 66 65 60 Oral care Mayonnaise Sauce Personal wash Spreads Beer Deodorants Cheese Hair care Salty snacks Yoghurt Confectionery Skin care Ice cream To save time, shoppers stick to what they know and tend to make the brand decision pre-store 27 TNS R&S decision tree data Source: TNS decision tree studies
  28. 28. Incorporating TNS Retail & Shopper © TNS 1234 Which contradicts previous beliefs 75% of all decisions are made at the shelf 60-80% of shoppers are decided before the shelf 28
  29. 29. Incorporating TNS Retail & Shopper © TNS 1234 So to influence shoppers effectively you need to understand their entire ‘shopper journey’ 29 Triggers or occasion Brand commitment Pre store In store Purchase
  30. 30. Incorporating TNS Retail & Shopper © TNS 1234 Russian shoppers are influenced by many out of store touchpoints 30 35 34 43 52 36 16 Usually I only buy products whose advertising I have seen/heard Celebrities influence my purchase decisions People ask for my advice before buying new things Before buying something expensive I always ask friends' opinion I tend to be influenced by online reviews about products/brands I often post comments/reviews about products/brands online % population 2014 Out-of-store influences Source: Marketing Index / TGI, Russia (cities 100+), N=24482 TV Radio Print Social Digital
  31. 31. Incorporating TNS Retail & Shopper © TNS 1234 Some big questions if you are to influence shoppers along their journeys 1.What are the main shopper journeys for your category/brand? 2.Where along the journey does the shopper make a brand choice? 3.What are the most impactful touchpoints? 31
  32. 32. Incorporating TNS Retail & Shopper © TNS 1234 A product must be both ‘mentally available’ and ‘physically available’ for a shopper to purchase 32 Purchase Mental availability Physical availability “Get into repertoire” Consumer occasions “Get chosen within repertoire” Available in-store
  33. 33. Incorporating TNS Retail & Shopper © TNS 1234 You should find out which part of the path to purchase represents most opportunity to influence shoppers, and then invest there Mental Availability Physical Availability Triggers or occasion Brand commitment Pre store In store Purchase 33
  34. 34. Incorporating TNS Retail & Shopper © TNS 1234 First you need to understand the key occasions, channels, and missions for category purchase Mental Availability Physical Availability Triggers or occasion Brand commitment Pre store In store Purchase Relaxing at home With food at home Leisure out of home 50% 25% 20% Occasions Missions 53 20 12 7 Weekly shop Fill in Meal Specific trip Channels 40 35 20 5 Hyper Super Discounter Online 34
  35. 35. Incorporating TNS Retail & Shopper © TNS 1234 Then you need to understand how brand equity translate into purchase for our brands 100 Category buyers Repertoire Preference Overall Conversion (Purchase) 80 75 65 ? 35 Mental Availability Physical Availability Triggers or occasion Brand commitment Pre store In store Purchase
  36. 36. Incorporating TNS Retail & Shopper © TNS 1234 You need to know where decisions are made, so we can see where the brand wins, and where it loses 60 40 Brand decided pre store Brand decided in store 50% Won 10% Lost Won 15% Lost 25% 36 Repertoire 80 Overall Conversion (Purchase) 65 Mental Availability Physical Availability Triggers or occasion Brand commitment Pre store In store Purchase
  37. 37. Incorporating TNS Retail & Shopper © TNS 1234 You need to compare performance against your competitors Repertoire Preference Pre store conversion In store conversion Overall conversion Brand X 80 75 60 40 65 Competitor 43 38 44 35 39 Competitor 31 35 31 41 37 Competitor 30 38 22 19 20 Competitor 16 24 12 7 10 37 Mental Availability Physical Availability Triggers or occasion Brand commitment Pre store In store Purchase
  38. 38. Incorporating TNS Retail & Shopper © TNS 1234 And identify which touchpoints have the biggest influence Pre-store Ads in retail folders Outdoor posters In store Price labels Promotions Pre-store Radio ad Blogs/forums Retailer websites In store Leaflet with product info Pre-store TV ad Friends & family In store Packaging Reach Impact 38 Mental Availability Physical Availability Triggers or occasion Brand commitment Pre store In store Purchase
  39. 39. Incorporating TNS Retail & Shopper © TNS 1234 These insights help us to be precise about the actions needed to grow the brand and the category Overcome barriers 4. How can I gain shoppers? Improve reach, relevance, purchase conversion 2. Why do I lose shoppers? Pre-store or in-store 3. Where do I lose shoppers? Which touchpoints to invest in 5. Where do I need to invest? Which occasions, mission and channel 1. What do I target? 39
  40. 40. Incorporating TNS Retail & Shopper © TNS 1234 How can we accurately capture the entire shopper journey?... ...we need to ask the right questions, ‘In the moment’ 40
  41. 41. Incorporating TNS Retail & Shopper © TNS 1234 Asking shoppers ‘why’ is often ineffective  They post-rationalise, or can’t remember  They don’t know or can’t articulate 41
  42. 42. Incorporating TNS Retail & Shopper © TNS 1234 The typical at-home/online survey scenario Understanding brand choice by lager drinkers 42
  43. 43. Incorporating TNS Retail & Shopper © TNS 1234 Many claim they choose a brand out of their consideration set 69% bought a brand in their consideration set 31% did not Why? Of all consumers who made a choice 43
  44. 44. Incorporating TNS Retail & Shopper © TNS 1234 Traditional recall survey generates a high number of responses… Recall survey 3.8 influences mentioned per respondent 44
  45. 45. Incorporating TNS Retail & Shopper © TNS 1234 …but shows the usual set of deciding factors 0 5 10 15 20 25 30 35 40 45 50 Recall survey The price Special offer Well-known brand Drinks menu Brand not available Friends Try something new Complement food Match the occasion Drinks display 45
  46. 46. Incorporating TNS Retail & Shopper © TNS 1234 Asking questions ‘In the moment’ generates more accurate and insightful data Recall survey IN-MOMENT (e.g. Mobile in the place of purchase) 3.8 1.4 influences mentioned per respondent influences mentioned per respondent 46
  47. 47. Incorporating TNS Retail & Shopper © TNS 1234 …and reveals ‘real’ deciding factors 0 5 10 15 20 25 30 35 40 45 50 Recall Mobile The price Special offer Well-known brand Drinks menu Brand not available Friends Try something new Complement food Match the occasion Drinks display 47
  48. 48. Incorporating TNS Retail & Shopper © TNS 1234 We are piloting research approaches on mobile 48 We are committed to where this type of research is done ‘in-the- moment’ on a mobile device. We believe it will deliver many benefits: -Allow us to track shoppers before they buy a product and capture their category interactions close to the moment they happen to improve recall of the interactions -Allow us to get closer to the purchase decision and capture more intuitively, the barriers and triggers to purchases We are actively looking to pilot these studies with clients.
  49. 49. Incorporating TNS Retail & Shopper © TNS 1234 Implications for manufacturers Win the brand battle by identifying where and how to influence the shoppers’ brand decision Implications for Researchers Ask the right questions, in the moment Closing summary 49 Implications for manufacturers Win the shoppers’ heart by providing a happy shopping experience. Focus on making shopping faster and easier Love and happiness The quest
  50. 50. Incorporating TNS Retail & Shopper © TNS 1234 Thank You 50

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