Christophe Pirotte: Me mySHELF and I

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Christophe Pirotte: Me mySHELF and I

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Christophe Pirotte: Me mySHELF and I

  1. 1. me mySHELF and I choice at home vs choice on shelf
  2. 2. PARADOX of CHOICE Preoccupied by decisions maximize WELFARE  maximize FREEDOM  maximize CHOICE B. Schwartz, prof. Social theory and social action – studies link economy/psychology MAKE IT EASIER – NARROW DOWN CHOICE Effects of this choice Paralysis – no liberation Less satisfaction – more regret
  3. 3. THE SAUCE SHELF CONFUSION – FEELING UNCOMFORTABLE
  4. 4. DECISION POINT ?? <ul><li>HOME </li></ul><ul><li>AT SHELF </li></ul>WHERE DO THEY DECIDE? WHAT DO THEY DECIDE WHERE?
  5. 5. CASE STUDY <ul><li>OFF SHELF </li></ul><ul><li>ON SHELF </li></ul><ul><li>COMPARISON GERMANY </li></ul>
  6. 6. OFF SHELF
  7. 7. OFF SHELF 4 subsegments non-tomato sauces tomato sauces with additions pure tomato sauces meat sauces X People think in recipe Brand Producer Price People think in sub types
  8. 8. ON SHELF: brand prevails
  9. 9. Recipe and brand have different roles
  10. 10. Consumer mind HOME recipe SHOPPING LIST reminder generically written recall of choice recipe SHELF brand recipe price
  11. 11. What Barilla did <ul><li>Organising shelf according brand </li></ul><ul><ul><li>So consumers find it easy </li></ul></ul><ul><li>Within brand according 3 sub segments </li></ul><ul><ul><li>RTU sauces </li></ul></ul><ul><ul><li>Pure tomato is strictly speaking another category </li></ul></ul>
  12. 12. Examples of shelves Before After
  13. 13. Results <ul><li>Dramatic increase in sales </li></ul><ul><ul><li>Category as a whole increased </li></ul></ul><ul><ul><li>Re-organisation of the shelf </li></ul></ul><ul><ul><li>Visual merchandising </li></ul></ul><ul><li>Targets – results of this project </li></ul>> 10% +10% Volume PL > 8% +8% Value stable Volume Result Target
  14. 14. What to remember <ul><li>Consumer at home ≠ consumer on shelf </li></ul><ul><ul><li>Different decision criteria </li></ul></ul><ul><ul><li>Both on shelf and off shelf insight is needed </li></ul></ul><ul><li>Not necessary to reflect category perception on shelf – it is about easy to find </li></ul><ul><li>Not too many SKU’s  avoid confusion + paralysis </li></ul>
  15. 15. <ul><li>QUESTIONS? </li></ul>

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