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Breakthroughs in
understanding shopper
            behaviour
Shopper marketing budgets are growing….


CAGR marketing budget growth

                           Total 2%

                           Shopper (manufacturer) 21%, (retailer) 26%*



…… creating a demand for better understanding of shopper
behaviour



 *Source : 2004-2010 estimated marketing budgets, source GMA/Deloitte Consulting LLP 2007 Shopper Marketing Study Results (Deloitte.com)




                                                                      2
Agenda



•   Development of a standardised in-store behavioural metric


•   New approaches to collaboration in manufacturer / retailer shopper data
    sharing


•   Situating shopper behaviours within 360° consumer understanding




                                       3
P.R.I.S.M
 A Revolutionary, New In-Store
      Behavioural Metric

           Presented by
    Donna McCabe, Kraft Foods
George Wishart, The Nielsen Company



                                      4
Dramatic shifts are taking place in the
     consumer marketplace…



               Shortcut to ARC In-Store Jan '08Pt1.lnk




                       video #1




                                                         5
Effective Shopper Marketing is crucial


According to Millward Brown:
 “In every CPG/FMCG category, the point of
  purchase is the critical moment of truth when a
  consumer facing a shelf of competing brands
  makes a decision to part with hard-earned
  money for just one of them.”

Nigel Hollis, Millward Brown, July 2006


                                                6
So, what is “Shopper Marketing” ?
  The GMA (Grocery Manufacturers Association)
   defines Shopper Marketing as:

• All marketing stimuli,
• developed based on a deep understanding of
  shopper behavior,
• designed to build brand equity,
• engage the shopper (i.e., consumer in ‘shopping
  mode’),
• and lead him/her to make a purchase
GMA (Grocery Manufacturers Association) & Deloitte Consulting


                                                                7
The paradigm has shifted from….
The relationship has changed, from…




      Consumers

                                Retail


         Brand



                                         8
To a more integrated view….



                NT




                                       PR
              ME




                                         EF
                         Consumer




                                           ER
            GE




                                            EN
          GA



                          Shopper




                                               C
       EN




                                                E
                     Retail         Brand



                         LEVERAGE
                                                    9
Driving to a powerful instore marketing plan
                                                      Design

               Retailer Strategy                       Aisle
     Brand                           In-Store
     Equity       SHOPPER           Marketing
                                       Plan         Promotion
               Purchase Barriers
                                                    Advertising
                                   • Brand equity
• Consistent promise                 fundamentals    Display
• idea,                            • Reflecting
• look and feel                      Shopper         Event/
                                     Insights       Sampling
                                                           10
Unfortunately, consumers are facing similar
      message overload in the retail
              environment…


                Shortcut to ARC In-Store Jan '08Pt2.lnk



                         video #2




                                                          11
So, how can manufacturers & retailers
 determine the most effective, impactful
allocation of their marketing investment?



             Introducing
              P.R.I.S.M.




                                            12
Marketing has changed due to evolving consumer
              & industry dynamics
  • Media fragmentation




                                            13
Marketing has changed due to evolving consumer
& industry dynamics
  • Consumers have evolved




                                            14
Marketing has changed due to evolving consumer
& industry dynamics
  • Retailers have evolved




                                            15
With 70% of the purchase decision made in
                 the store




                                       16
More Demanding
                                     Shoppers




The timing is right to create truly shopper
         Retailer
      Differentiation Why More
                                                     Manufacturers
                                                   Striving for Topline

centric stores      Shopper Centric
                        Stores?



                                   New Metrics




       Source: Interscope, 2008
                                                                          17
The In-Store “Medium” is
an unparalleled opportunity




                              18
Challenge is – No Metric




                           19
P.R.I.S.M. – Pioneering Research for an
             In-Store Metric




                                          20
The P.R.I.S.M. Consortium
LEAD SPONSORS                           CONSORTIUM MEMBERS

                CO-SPONSORS




                SUPPORTING RETAILERS




                CONSULTATIVE SPONSORS




                                                             21
Current & Future

                                       Shopper Marketing
                                     In-Store Audience Data

Shopper Marketing is the next marketing
                     1980s – 1990s


frontier            Loyalty Data
                Category Management

     1970s – 1980s

  Brand Management
     Scanner Data




                                                              22
A common industry metric to measure consumer
               reach in-store




                                           23
Auditor




Store Sensor




                   24
Retailer
        transaction-level
            scan data
                                           “Who’s in the store”
                                            Gross impressions/
               +                            audience by demo &
                                                  daypart
        In-store audience
P.R.I.S.M. measures the audience“What’slocation
                                     by in the store”
                                     Presence of in-store
in store and understands shopper patterns by
                 +
                          P.R.I.S.M.
                                         promotions

demographicpanel
         Household                          •ROI
                            Predictive       •Measurement &
                            Modeling        Applications – e.g.
               +                               Closure rates


         In-store audits




                                                                  25
P.R.I.S.M. provides the foundation for in-store
       planning, execution & evaluation
• Who was in the store?




                                                  26
P.R.I.S.M. provides the foundation for in-store
planning, execution & evaluation
• What is in the store?




                                                  27
P.R.I.S.M. provides the foundation for in-store
planning, execution & evaluation
• Was the investment effective?




                                                  28
Retailing Applications
  1. Marketing/Merchandising
  2. Shopper Conversion
  3. Operations/Supply Chain
  4. Store Layout
  5. Shopper Segmentation



                               29
Shopper Conversion




                                   0
                                       10
                                            20
                                                            30
                                                                           40
                                                                                          50
                                                                                                           60
                                                                                                                           70
                                                                                                                          66
                    SALTY SNACKS




                                                                                               51




                                                            27
                           BEER




                                                                           36
                                                                                     42
                    READY TO EAT
                      CEREAL                                          35
                                                                                39




                     FRESH BREAD
                      AND ROLLS
                                                                 30




                    SHELF STABLE




     Food
                                                                                39




                     JUICES AND
                                                                29




                       DRINKS
                                                                                                    The Opportunity Gap




     Retailer A
                                                  22




                            WINE
                                                       24
                                                                      34




                       CRACKERS
                                                      24
                                                                                                                                Shopper Conversion - Retailer A




                                                                           36




                          WATER
                                                      23
                                                                      34




                        COOKIES
                                                 21
                                                           26




                  FROZEN ENTREES
                                                 21




30
The audience data can be analyzed by store part and time

                       Retailer A - Thursday




                 Store Part #29 had a high
                  of 91% on Thursday but
                        a low of 13%
                       on Wednesday




                                                           31
New Technology will track the shopping trip and
monitor dwell time




                     DWELL MAP
                                                  32
Media & Marketing Applications
  1. In-Store Planning
  2. Evaluation
  3. Multi-Media Planning




                                 33
The new In-Store metric will tie In-Store to other
marketing spending and total investment analysis




                                                     34
In-Store Activity                     Return On Investment Analysis
                   End Cap
                                                               Trade
                   Displays                                    Pricing
       Check                   In-Store
        Out                      Radio


 Pallet                                Floor
Displays                              Graphics
                   In-Store                                                Consumer
                                                  In-Store      ROI
                                                                           Promotion

  In-Store                          Sampling
     TV                             Programs

              Case
                           Shelf
             Stacker
                          Talkers
             Displays                                        Advertising




                                                                               35
Overall Marketing Campaign

             In-Store Activity             Return On Investment Analysis

                    End Cap                                 Trade
                    Displays                               Television
                                                           Pricing
       Check                    In-Store
        Out                       Radio        Magazines                Radio



 Pallet                                 Floor                                  Event
Displays                                 In-Store
                                       Graphics                              Marketing
                                                                             Consumer
                    In-Store            In-Store             ROI
                                                           CampaignRF        Promotion


  In-Store                           Sampling
                                            Cinema                           Internet
     TV                              Programs

               Case
                            Shelf
              Stacker                                Outdoor     Newspaper
                                                         Advertising
                           Talkers
              Displays




                                                                                 36
Impressions can be measured across
        multiple marketing options
                                                                   Need to develop
                               Avg. Weekly Gross Impressions (000)
                                Female 25-54 Northern California* appropriate CPMs
                         736
                                                                    across these
                                                526                    vehicles
                                                                                              269


       100                                                                                               100



Front End/Checkout   Runway - Rear     American Idol 30                         In-Aisle Shelf      Women's Service
    In-Store TV       Wall Display       Second Spot                               Talker             Magazine


                                           Source: Nielsen Media Research; Nielsen In-Store


                                                                                                                37
Extensive testing and early pilot programs confirm
      P.R.I.S.M. is valuable and ready for rollout
                                                             Today


                  Phase 1:                    Phase 2:                      Phase 3:
                    Test                   Scale and learn                   Rollout



Dates • 2006                            • 2007-early 2008             • 2008 and beyond

Scope • 10 stores, 4 retailers in U.S. • 169 stores, 17 retailers, 38 • Syndicate the service in
                                          banners representing 62%      the U.S.
                                          Total U.S. ACV              • Begin international
                                        • Projecting to 24,000(+)       expansion
                                          stores




                                                                                              38
Everybody Wins
• CPG manufacturers




                              39
Everybody Wins
• Agencies




                              40
Everybody Wins
• Retailers




                               41
Everybody Wins
• Media Companies




                             42
Bringing In-Store Measurement to Life




                                        43
P.R.I.S.M. -
How can we use the data to further advance
   shopper marketing understanding?




                                             44
P.R.I.S.M. offers unique insights and
long-awaited information
1.   Audience measurement
       -   who is in the store?
       -   audience counts
2.   In-store Marketing Presence
       -   what was in the store?
       -   presence of all in-store marketing stimuli
       -   knowing whether and which marketing in-store vehicles are
           present
3.   ROI/Efficiency/Effectiveness
       -   effectiveness/efficiency of in-store spending
       -   conversion (from exposure to purchase)
       -   planning and evaluation insights

                                                                       45
A range of unique in-store metrics

 •   Gross impressions
 •   Unduplicated impressions
 •   Gross rating points
 •   Frequency
 •   % reach
 •   Shopper conversion rate
 •   # of stores in which marketing vehicle was present
 •   % of stores in which marketing vehicle was present
 •   Average # of weeks in which marketing vehicle was present



                                                                 46
P.R.I.S.M. Data - Actual Examples




                                    47
P.R.I.S.M. audience size measurement
       Gross Impressions by Store Part
                Retailer A - 4 w/e 09/29/07

                              Total Store Females 55+     Males 25-54
Checkout Area Zone            17,877,042      3,721,803    3,166,048
Runway - Front                   99%             99%          99%       • P.R.I.S.M. can identify
Lobby Zone                       96%             95%          96%
In Aisle Zone                    92%             92%          92%
                                                                          audience size by storepart
Runway - Rear Wall               72%             72%          72%
Runway - Front Wall              61%             61%          61%
Produce Zone                     55%             57%          49%
                                                                          P.R.I.S.M. can highlight
Dairy Zone                       50%             44%          47%         differences in impressions
Runway - Rear                    46%             46%          46%         by demographic groups
Meat & Poultry Zone              42%             37%          41%
Runway - Perimeter               40%             40%          40%
Runway - Split Aisle             34%             34%          34%         P.R.I.S.M. data can be used
Frozen Food Zone                 28%             25%          26%
Deli Zone                        22%             19%          21%
                                                                          to determine optimal
Bakery Zone                      21%             19%          21%         placement of in-store
Seafood Zone                     20%             18%          20%
Promo-Seasonal Zone              13%             13%          13%
                                                                          display based on gross
Pharmacy Zone                     9%              9%           9%         impressions
Greeting Cards-Party Zone         6%              6%           6%
Floral Zone                       4%              4%           4%



                                                                                                       48
P.R.I.S.M. allows you to analyze a common
     metric (gross impressions) across all mediums

                          Female 25-54   Despite being the #1
                                          rated US television
One Week
TOTAL GROSS IMPRESSIONS        526,100   show, American Idol
                                          Gross Impressions
In-Store Audience                        lag behind a number
One Week
Retailer A                               of Retail Store Zones.
                  Gross Impressions
Storepart                Female 25-54
Lobby zone                1,155,489
Runway – Rear Wall          871,880
Runway – Front Wall         736,498
Produce Zone                713,231
Dairy Zone                  676,542


                                                                  49
Shopper Conversion rates from P.R.I.S.M. can be
   analyzed week to week to assess changes
           driven by in-store activity
              Cookies Shopper Conversion Rates
                        Aug-Sept 2007




                                                 Retailer A
                                                 Retailer B
                                                 Retailer C




                                                              50
P.R.I.S.M. can reveal how many shoppers had the
  opportunity to see various in-store executions

                  Impressions generated by a 1 week
                   pallet display in the runway front
                 generated nearly as many impressions
                       as a 6 week shelf banner.
                                   Kraft Bistro Deluxe
                   In-Store Activity   # of store/weeks   Impressions

                   Display – Pallet           1             5,393
                   Runway Front

                   Shelf Banners              6             7,823
                   Dry Dinner Mix Aisle

                   Total Impressions                        13,216


                                                                        51
The in-store marketing activity of competitive brands can
also be analyzed through P.R.I.S.M.
             More shoppers had the opportunity to see Kraft Deluxe
            displays in just 5 weeks driven by more display locations.


                    Kraft Deluxe       Competitor
# of store/weeks        5                     6

Display Location   Display Pallet    Endcaps
                   Endcap
                   Case Stacker
                   Wall & Slatwall

Locations          Runway Front      Runway Rear Wall
                   Lobby Zone         Runway Split Aisle

Impressions          31,961            28,039


                                                                         52
P.R.I.S.M. data may be applied to answer many
additional questions such as…
Can investment in aisle reinvention drive increases in aisle traffic
and shopper conversion rates sufficient to result in positive ROI?




                                                                       53
And…   • Which aisle placement will drive the greatest
         exposure and shopper conversion rate for my
         mega display?
       • Which type of display will yield the best ROI?




                                                      54
And many other questions…
• Is the execution of in-store media in line with targeted goals?
• Are there other storepart locations that provide a more
  favorable audience rating and alignment with category
  shopper traffic?
• Are there other in-store media types that should be used to
  drive brand volume and category closure rate?
• Is the ROI more favorable for one type of in-store execution
  than another?
• Are my in-store marketing activities as effective as my
  competitors?




                                                                55
P.R.I.S.M. analytics …
   A powerful tool for retailers and manufacturers
• Keeping the Shopper at the center

• Delivering leveragable insights into
  Shopper in-store traffic, closure rates,
  and ROI for in-store spending

• Examining impressions, impact and
  ROI of media spending across all
  mediums, including the store




                                                     56
New approaches to collaboration in manufacturer / retailer
shopper data sharing
ECR Berlin 2008
Koos Berkhout
Presentation overview


 •   Introduction

 •   Data challenges in collaboration

 •   Benefits of a single platform

 •   Case study

 •   Summary
Company Overview

 •   Own and operate customer loyalty programmes
     – Nectar UK
     – Air Miles Middle East
     – Aeroplan Canada



 •   International Business Development
     – Launched in: UK, Canada, Netherlands, Spain, Middle East
     – Grocers: Safeway, A&P, IGA, Sobeys, Albert Heijn, Eroski,
       Spinneys, Sainsbury’s



 •   Insight & Communication
     – Customer analytics
     – Insight sharing
     – Customer targeting
LMG Insight & Communication Division
Data-driven collaboration can go wrong in many areas

 • There is an abundance of data sources, each with                • People working across companies
   its own limitations and data traps                                introduce additional challenges

 • ePOS
    – Comprehensive, cross-retailer view
    – Does not provide insight into who
                                                                   • Organisations tend to have their own
                                                                     product hierarchies and category definitions
 • Panel
    – Adds the customer dimension to the cross-sector view         • Different data sets can be used to answer
    – Provides directional information only – becomes less           (parts of) the same question
      reliable in questions requiring granularity
                                                                   • Choosing the best analysis technique and
 • Loyalty Card                                                      which insights to show can be subjective
    – Accurate view of how what customers do on a very
      granular level                                               • Interpretation of results can vary
    – No cross-retailer view, data provides limited insight into
      why shoppers behave the way they do

 • Market Research
    – Captures broader range of data can be providing better
      insight into why
    – Shoppers don’t always do what they say they do, survey
      content is subjective
A single platform addresses many sources of inconsistencies

                                  LMG Analysts



               Manufacturer                      Retailer




Uniform front-end guiding
 Uniform front-end guiding
users through phrasing
 users through phrasing
business questions in aa
 business questions in
consistent way                                   Central set of modules
                                                  Central set of modules
 consistent way
                                                 containing definitions,
                                                  containing definitions,
                                                 analysis methodologies
                                                  analysis methodologies

             Single source
              Single source
             containing 100%
              containing 100%
             transactional and
              transactional and
             customer data
              customer data
Self Serve Live Case Study
A single insight platform enables more effective collaboration
between retailers and manufacturers

 •   Organisational alignment and data quality are critical

      –   Manufacturers and Retailer use the same system

      –   Agree on consistent definitions in order to make customer data common language

      –   100% data available over a sufficient time period


 •   The right technology determines the success

      –   Quick – Reports built and delivered in minutes

      –   Fast – Data available 3 days after the end of each trading week

      –   Simple – Intuitive portal simple to use and provides actionable insight

      –   Intelligent – Portal structured around key business questions
Thank you
k.berkhout@loyalty.co.uk
Situating shopper behaviours within
   360° consumer understanding
     Using this insight to drive
     differentiated strategies


         Sandy Livingstone

         BMRB / TGI Europa
          ECR Berlin 2008
As discussed earlier . . .




                             Consumer

                              Shopper

                       Retail           Brand
In-store planning is still disconnected
   In-store planning is frequently conducted without
   sufficiently close reference to:
        central marketing communications strategy
        other wider picture issues such as attitudinal and cultural
        differences across markets
   At best this misses an opportunity to build
   differentiation with real value to the consumer
   At worst it results in poorly directly activities which
   can undermine longer term brand health
A short story of Brand X
    How, apparently this brand came to decide on its
    in-store targeting strategy
    Why subsequent sales data disappointed and led
    to uncertainty
    How 360° data revealed new levels of insights,
    comparable across countries
    How this influenced future European strategy
    How it inspired a platform for specific actions with a
    retail customer
Misunderstanding derived from an incomplete
picture
    Brand X, a new snack product was launched across 3
    European markets in early 2005
    Based on demographic data on category consumption,
    assumptions were made by the sales team as to the target
    market, for example:
          that the core was 18-34 year old females
          that the major competitor was a category leader
    A post-launch analysis showed that this hypothesis was
    clearly incorrect leading to concern over direction of trade
    support
    Could more detailed analysis of other data help find a way
    forward?
Brand X profile in France



      A highly summarised example of output
Brand X Users: 2.4 million in France
                       Two thirds are female, younger (spread within the 15-34 age
                       group) and therefore more likely to be single and to be
                       students. However some have started their families, and 44%
   About them




                       have children in their household. An average number work,
                       however given a quarter are in full time education and with
                       skews towards homemakers and unemployed, they are
                       slightly more likely to finding it hard on their personal income
                       (though by background, HH income is above average).
                       Marked skew to the north half of France with a core group
                       living in larger cities and Paris.

                      Have more spare time than many with a third spending 2.5
                      hours a day on leisure activities. Most of their weekdays
                      are at college, some work part time or spend a lot of time
 Regular activities




                      caring for children. Often use the Internet, some may use it
                      at their campus for study or for staying connected with
                      friends. They like to hang out with friends after school or
                      work at fast food restaurants, cafés and bars are also into
                      sports (football, swimming, badminton) and particularly
                      sociable activities such as bowling, snooker etc. They rely
                      on TV heavily or books and Bande Dessinées for
                      relaxation. Some try to win some extra money from
                      machines, scratch-cards or the lottery. Those with families
                      are active theme-park goers (Parc Astérix, Walibi) and
                      others attend cultural sites/events in Paris.



Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F Base: Brand X users
Impulsively driven by clothes, fashion and socialising


             Fashion is everything                                                 Impulsive trialists – love
                                                                                   anything even superficially new (e.g.
             (and is disposable)                                                   packaging or gadgets)


     Compulsive shoppers /                                                              Try to affirm themselves through their
     browsers / spenders                                                                appearance

                                   gain                        Aspire to                          Out and about            enjoy having a good
                                                                                                  night out
Experiencing Enjoy diversity esteem and
and difference                                                 stand out
                                                                                                 Look for guilt free treats. Indulge
                                                                                                 themselves but may feel tension being
                                                                                                 aware of calories
            Forward-looking, ambitious
             and up for Challenges                                                                Love being   Young and Youthful
                                                                  Pleasure in everything; food, affection,
                                                                  shopping or their home
   Reactive to and engaged
   with ads and promotions
                                                                                                          Spenders, not good at saving
                                    Music an important thing in life                                      or managing money

Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F
Foods and Diet
                                                    Snack/ Foods more likely to consume often
                       Other choc Bar choc         Chewing        Ice cream (bars Sweets                                       Savoury                  Cereal
                                                                                                                     Mints     snacks     Boxed choc     bars
                                                    gum               & sticks)
            Snack
            Food




                        RTE Breakfast cereal       Salad dressing cream
                                                                Ice                        Sweet                  Cheese in Delicatess Meat &    Milk    Frozen
                                           Mayonnaise
                      desserts                                                             biscuit                 portion      en     Poultry          vegetable

                      Connecting with friends and family through food in




                                                                                              Top confectionary
                      a non-traditional French manner (no
     Food strategy




                      structure/control). Sweet tooth, like to treat
                      themselves without avoiding sugars/fats. They like


                                                                                                   brands
                      fast food and pizza and many go for easy options
                      such as takeaway. Many like experiencing new
                      things and some eat in restaurants especially
                      Greek/Turkish, Italian and exotic foods. Some opt
                      to diet products or skip meals to keep their weight
                      down. Many compensate with sport and overall
                      keep fit.



Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F Base: Brand X users
Brand Y comparative profile
Key values for each brand

                                       Similarities                                              Key values pulling
                                                                                                 consumers apart



                                                                                                       Culture
                                                                                                     Environment
                   Image conscious/
                                                              Spending                                  Home
                      keeping up




                                          Connecting                                                 Diet tension
                                                                                                      Superficial
                                                                                                       novelty




Source: Enlightenment / Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F
Discoveries
   Real differences exist between Brand X consumers
   and those of its competitors
   Not just a challenger sub-set: these were evident
   throughout:
        Demographics
        Mindset
        Lifestyle
   This warranted a further investigation into
   attitudinal differences in greater depth
Starting point: a map using 250+ attitudinal
statements against category brands in Germany
                                    I consider myself interested in
                                               the arts Brand X


                                                        Brand L
                           It's worth paying more for organic food

                                         BrandI M
                                                really enjoy any kind of shopping
        Milkinis
             A designer label improves a person's image
                                                                                                  It is important my household is equipped with the latest technology
       I find it difficult to say no to my kids
                 I always think of the calories in what I eat                              To do my shopping by internet makes my life easier
                                                                                                                                                                         Lion Bar
                                                                                             We rarely sit down to a meal together at home                      Nuts
                                                                                                                                                             Real men don't cry
                                                                               DoveBounty                                     I don't have time to spend preparing
                                 Tender       Most of the time I'm trying to lose weight                                                          Banjo
                                                                                           There's little I can do to change myDuploand cooking food
                                                                                                                                    life
                             I think fast food is all junk
                             I consider myself to be a spiritual person                                    Contraception is a woman's responsibility
                                                                                                                                              Kit Kat Pick up Twix Snickers
I would never think of taking a package holiday Celebrity endorsement influence                          I like taking risks Mars Bar
                                                             my purchase decision.               Daim          Milky Way        I loathe doing any form of housework
      I don't want responsibility I'd                           Brand Y                                                                     The point of drinking is to get drunk
         rather be told what to do                          I find that I'm easily swayed
                                                                  Brand people's views
                                                               by other   A    Nussini
     I always look for the light/diet        Brand B                                                                        I would like to set up my
                                                                                     Nutoka             Aldi - Other choc own business one day
       versions of food and drink                      I sometimes send off for goods
    Caramac faith is really important to me
           My                                       services or info packs advertised in         Kinder Maxi                A woman's place is in the home
                                                      newspapers mags on TV or radio
                                                                                            When doing the household
                                          Maltesers                                         shopping I budget for every
                                                                                                         penny
                        I often enter competitions featured on packets or labels




                                                                                                     Enlightenment / Europa TGI 2007 February (Oct05 - Sep06)
Brand Positioning in
Germany                                 Distinctive
                                          niche
Sophistication                          position is
                                                                 Premiumisation                                                  Early adoption
                                               Brand X
                                        confirmed

                                            Brand L
             Brands L and M
              are Brand X’s
                   closest           Brand M
    Milkinis competitors from
                 this axis of
               interpretation
                                                                                                                                                   Lion Bar
                                                                                                                                            Nuts
                                                                     Rolo                                                      Banjo
                       Tender
                                                                 Dove Bounty
 Feminine                                                                                                      Duplo Kit Kat
                                                                                                                               Pick up   Masculine
                                                                                                                                              Snickers
                                                                                                                                         Twix
  Values                                                                          Daim    Milky Way      Mars Bar
                                                                                                                                          Values
                                                      Brand Y
                                                       Brand A   Nussini           Aldi - Other choc
                                   Brand B                            Nutoka
                                                                               Kinder Maxi
 Caramac

                                Maltesers



Reactivity                                                       Price-oriented                                                  Conservatism


                                                                                             Enlightenment Europa TGI 2007 February (Oct05 - Sep06)
Observed differences by country

                    Core territory    Opposing values
                       values
  Great Britain      Fashion /           Convention
                    materialism


  France          Trialism based on      Contrarian /
                      promotion           Rebelling


  Germany           Premium /           Conservatism
                   sophistication
Recommendations by country
                     In-store strategy                Potential tactics


 Great Britain   •   Reinforce fashion values     •   Glamour magazine
                 •   Leader of its own category   •   Range away from main
                 •   Increase frequency           •   Checkout displays


 France          •   Refresh novelty value        •   Rolling price promotions
                 •   Permanent new interest       •   Series of tie-ins with other trial
                 •   Increase penetration             increasers in other categories


 Germany         •   Support sophistication       •   Premium display
                 •   Avoid carving small niche    •   No price or “cheap” promotions
                 •   Widen appeal outside core    •   Competitions as link to
                                                      aspirational
Generating new sales from this insight

A retailer/manufacturer partnership approach
built on differentiation
The potential amongst non-users is sized by
 creating a closely matched “look-alike” group . . .

                     I like to treat myself to foods that are not good for me
                     I avoid sugar (no)
                     I often eat between meals, I keep eating snacks
                     I think fast food is all junk (disagree)
                     I don't pay sufficient attention to what I eat
 Brand X             I really look after my health (no)
   63% of            Because of my busy lifestyle, I don't take care of myself as well as I should
   Brand X           Our family spends a lot on food
 consumers           I often buy useless things
have at least        I often buy, on impulse, products I hadn't thought of
  7 of these         I dress in a young style
 variables in        I like to keep up with the latest fashions
 their profile
                     I like others to look at me
                     I spend a lot of my spare time with friends every day
                     I want to get to the very top in my career
                     Marital status: Single/Living alone


                  Among snacks consumers, people who have at least 7 of these variables in
                         their profile are 43% more likely to be Brand X consumers
. . . Creating a potential of 16.5m consumers

                            Snacking
                        consumers who are
                        non-users of Brand
                                X




                                                               Potential of
                                                               16.5m extra
                                                               consumers


           Among other snacks eaters 39% have a very similar
                 attitudinal profile to Brand X’s users
The opportunity for Brand X / Retailer A
                                  No particular affinity between these
                                    consumers identified and any
                                            specific brands.
                                  Their consumption of competitive
                                         products is average




                                                   Their potential affinity with
                                                    Brand X is quite unique
                                                    making this a promising
                                                          target market




      Opportunity to create a
   differentiated platform from           Stronger likelihood to be
   which to drive consumption               Retailer A shoppers
               / sales
Creating a shared, differentiated platform:
Brand X / Retailer A in partnership
       Health and diet                            Indulgence                            Premiumisation
Eating is a short break to fuel and       Indulgence is not really achieved        Not really about quality for its own
          escape pressure                       via sensorial pleasure                             sake
• Convenient / easy solutions /          • Rather it is through the notion of     • Notion is more one of
  quick fix                                having transgressed                      extravagance
• Often on the go                        • Treating generates feelings of         • Usually expressed only on
• Follow impulsions / avoid rules          guilt as well as of pleasure             occasions




                                    Pleasure obtained from the category positioned
                 as a well-being treat / mental break necessary to a healthy and balanced lifestyle
                        (similar function as a massage or some down-time in a Starbucks etc.)
                              • No relation to premium quality snacks or to healthy options
Conclusions
Conclusions
  Survey data can provide the missing insight vital to maximise in-store
  differentiation and ROI.
  We recognise that relatively few make intelligent use of it:
        The volume of data being processed from other sources can be
        overwhelming and gives the illusion of completeness
        There is an inherent difficulty in reconciling findings with other data
        sources
  We are hopeful that in future these barriers will be reduced:
        we have already worked with P&G on a project to tie into Nielsen data
        we are investigating ways of working with loyalty card systems
  Meanwhile make use of differentiating insight already available
Panel Q&A




            89

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Bo4.5 ECR Europe Forum '08. Breakthroughs in understanding in-store behavior Shopping Behaviour

  • 2. Shopper marketing budgets are growing…. CAGR marketing budget growth Total 2% Shopper (manufacturer) 21%, (retailer) 26%* …… creating a demand for better understanding of shopper behaviour *Source : 2004-2010 estimated marketing budgets, source GMA/Deloitte Consulting LLP 2007 Shopper Marketing Study Results (Deloitte.com) 2
  • 3. Agenda • Development of a standardised in-store behavioural metric • New approaches to collaboration in manufacturer / retailer shopper data sharing • Situating shopper behaviours within 360° consumer understanding 3
  • 4. P.R.I.S.M A Revolutionary, New In-Store Behavioural Metric Presented by Donna McCabe, Kraft Foods George Wishart, The Nielsen Company 4
  • 5. Dramatic shifts are taking place in the consumer marketplace… Shortcut to ARC In-Store Jan '08Pt1.lnk video #1 5
  • 6. Effective Shopper Marketing is crucial According to Millward Brown: “In every CPG/FMCG category, the point of purchase is the critical moment of truth when a consumer facing a shelf of competing brands makes a decision to part with hard-earned money for just one of them.” Nigel Hollis, Millward Brown, July 2006 6
  • 7. So, what is “Shopper Marketing” ? The GMA (Grocery Manufacturers Association) defines Shopper Marketing as: • All marketing stimuli, • developed based on a deep understanding of shopper behavior, • designed to build brand equity, • engage the shopper (i.e., consumer in ‘shopping mode’), • and lead him/her to make a purchase GMA (Grocery Manufacturers Association) & Deloitte Consulting 7
  • 8. The paradigm has shifted from…. The relationship has changed, from… Consumers Retail Brand 8
  • 9. To a more integrated view…. NT PR ME EF Consumer ER GE EN GA Shopper C EN E Retail Brand LEVERAGE 9
  • 10. Driving to a powerful instore marketing plan Design Retailer Strategy Aisle Brand In-Store Equity SHOPPER Marketing Plan Promotion Purchase Barriers Advertising • Brand equity • Consistent promise fundamentals Display • idea, • Reflecting • look and feel Shopper Event/ Insights Sampling 10
  • 11. Unfortunately, consumers are facing similar message overload in the retail environment… Shortcut to ARC In-Store Jan '08Pt2.lnk video #2 11
  • 12. So, how can manufacturers & retailers determine the most effective, impactful allocation of their marketing investment? Introducing P.R.I.S.M. 12
  • 13. Marketing has changed due to evolving consumer & industry dynamics • Media fragmentation 13
  • 14. Marketing has changed due to evolving consumer & industry dynamics • Consumers have evolved 14
  • 15. Marketing has changed due to evolving consumer & industry dynamics • Retailers have evolved 15
  • 16. With 70% of the purchase decision made in the store 16
  • 17. More Demanding Shoppers The timing is right to create truly shopper Retailer Differentiation Why More Manufacturers Striving for Topline centric stores Shopper Centric Stores? New Metrics Source: Interscope, 2008 17
  • 18. The In-Store “Medium” is an unparalleled opportunity 18
  • 19. Challenge is – No Metric 19
  • 20. P.R.I.S.M. – Pioneering Research for an In-Store Metric 20
  • 21. The P.R.I.S.M. Consortium LEAD SPONSORS CONSORTIUM MEMBERS CO-SPONSORS SUPPORTING RETAILERS CONSULTATIVE SPONSORS 21
  • 22. Current & Future Shopper Marketing In-Store Audience Data Shopper Marketing is the next marketing 1980s – 1990s frontier Loyalty Data Category Management 1970s – 1980s Brand Management Scanner Data 22
  • 23. A common industry metric to measure consumer reach in-store 23
  • 25. Retailer transaction-level scan data “Who’s in the store” Gross impressions/ + audience by demo & daypart In-store audience P.R.I.S.M. measures the audience“What’slocation by in the store” Presence of in-store in store and understands shopper patterns by + P.R.I.S.M. promotions demographicpanel Household •ROI Predictive •Measurement & Modeling Applications – e.g. + Closure rates In-store audits 25
  • 26. P.R.I.S.M. provides the foundation for in-store planning, execution & evaluation • Who was in the store? 26
  • 27. P.R.I.S.M. provides the foundation for in-store planning, execution & evaluation • What is in the store? 27
  • 28. P.R.I.S.M. provides the foundation for in-store planning, execution & evaluation • Was the investment effective? 28
  • 29. Retailing Applications 1. Marketing/Merchandising 2. Shopper Conversion 3. Operations/Supply Chain 4. Store Layout 5. Shopper Segmentation 29
  • 30. Shopper Conversion 0 10 20 30 40 50 60 70 66 SALTY SNACKS 51 27 BEER 36 42 READY TO EAT CEREAL 35 39 FRESH BREAD AND ROLLS 30 SHELF STABLE Food 39 JUICES AND 29 DRINKS The Opportunity Gap Retailer A 22 WINE 24 34 CRACKERS 24 Shopper Conversion - Retailer A 36 WATER 23 34 COOKIES 21 26 FROZEN ENTREES 21 30
  • 31. The audience data can be analyzed by store part and time Retailer A - Thursday Store Part #29 had a high of 91% on Thursday but a low of 13% on Wednesday 31
  • 32. New Technology will track the shopping trip and monitor dwell time DWELL MAP 32
  • 33. Media & Marketing Applications 1. In-Store Planning 2. Evaluation 3. Multi-Media Planning 33
  • 34. The new In-Store metric will tie In-Store to other marketing spending and total investment analysis 34
  • 35. In-Store Activity Return On Investment Analysis End Cap Trade Displays Pricing Check In-Store Out Radio Pallet Floor Displays Graphics In-Store Consumer In-Store ROI Promotion In-Store Sampling TV Programs Case Shelf Stacker Talkers Displays Advertising 35
  • 36. Overall Marketing Campaign In-Store Activity Return On Investment Analysis End Cap Trade Displays Television Pricing Check In-Store Out Radio Magazines Radio Pallet Floor Event Displays In-Store Graphics Marketing Consumer In-Store In-Store ROI CampaignRF Promotion In-Store Sampling Cinema Internet TV Programs Case Shelf Stacker Outdoor Newspaper Advertising Talkers Displays 36
  • 37. Impressions can be measured across multiple marketing options Need to develop Avg. Weekly Gross Impressions (000) Female 25-54 Northern California* appropriate CPMs 736 across these 526 vehicles 269 100 100 Front End/Checkout Runway - Rear American Idol 30 In-Aisle Shelf Women's Service In-Store TV Wall Display Second Spot Talker Magazine Source: Nielsen Media Research; Nielsen In-Store 37
  • 38. Extensive testing and early pilot programs confirm P.R.I.S.M. is valuable and ready for rollout Today Phase 1: Phase 2: Phase 3: Test Scale and learn Rollout Dates • 2006 • 2007-early 2008 • 2008 and beyond Scope • 10 stores, 4 retailers in U.S. • 169 stores, 17 retailers, 38 • Syndicate the service in banners representing 62% the U.S. Total U.S. ACV • Begin international • Projecting to 24,000(+) expansion stores 38
  • 39. Everybody Wins • CPG manufacturers 39
  • 42. Everybody Wins • Media Companies 42
  • 44. P.R.I.S.M. - How can we use the data to further advance shopper marketing understanding? 44
  • 45. P.R.I.S.M. offers unique insights and long-awaited information 1. Audience measurement - who is in the store? - audience counts 2. In-store Marketing Presence - what was in the store? - presence of all in-store marketing stimuli - knowing whether and which marketing in-store vehicles are present 3. ROI/Efficiency/Effectiveness - effectiveness/efficiency of in-store spending - conversion (from exposure to purchase) - planning and evaluation insights 45
  • 46. A range of unique in-store metrics • Gross impressions • Unduplicated impressions • Gross rating points • Frequency • % reach • Shopper conversion rate • # of stores in which marketing vehicle was present • % of stores in which marketing vehicle was present • Average # of weeks in which marketing vehicle was present 46
  • 47. P.R.I.S.M. Data - Actual Examples 47
  • 48. P.R.I.S.M. audience size measurement Gross Impressions by Store Part Retailer A - 4 w/e 09/29/07 Total Store Females 55+ Males 25-54 Checkout Area Zone 17,877,042 3,721,803 3,166,048 Runway - Front 99% 99% 99% • P.R.I.S.M. can identify Lobby Zone 96% 95% 96% In Aisle Zone 92% 92% 92% audience size by storepart Runway - Rear Wall 72% 72% 72% Runway - Front Wall 61% 61% 61% Produce Zone 55% 57% 49% P.R.I.S.M. can highlight Dairy Zone 50% 44% 47% differences in impressions Runway - Rear 46% 46% 46% by demographic groups Meat & Poultry Zone 42% 37% 41% Runway - Perimeter 40% 40% 40% Runway - Split Aisle 34% 34% 34% P.R.I.S.M. data can be used Frozen Food Zone 28% 25% 26% Deli Zone 22% 19% 21% to determine optimal Bakery Zone 21% 19% 21% placement of in-store Seafood Zone 20% 18% 20% Promo-Seasonal Zone 13% 13% 13% display based on gross Pharmacy Zone 9% 9% 9% impressions Greeting Cards-Party Zone 6% 6% 6% Floral Zone 4% 4% 4% 48
  • 49. P.R.I.S.M. allows you to analyze a common metric (gross impressions) across all mediums Female 25-54 Despite being the #1 rated US television One Week TOTAL GROSS IMPRESSIONS 526,100 show, American Idol Gross Impressions In-Store Audience lag behind a number One Week Retailer A of Retail Store Zones. Gross Impressions Storepart Female 25-54 Lobby zone 1,155,489 Runway – Rear Wall 871,880 Runway – Front Wall 736,498 Produce Zone 713,231 Dairy Zone 676,542 49
  • 50. Shopper Conversion rates from P.R.I.S.M. can be analyzed week to week to assess changes driven by in-store activity Cookies Shopper Conversion Rates Aug-Sept 2007 Retailer A Retailer B Retailer C 50
  • 51. P.R.I.S.M. can reveal how many shoppers had the opportunity to see various in-store executions Impressions generated by a 1 week pallet display in the runway front generated nearly as many impressions as a 6 week shelf banner. Kraft Bistro Deluxe In-Store Activity # of store/weeks Impressions Display – Pallet 1 5,393 Runway Front Shelf Banners 6 7,823 Dry Dinner Mix Aisle Total Impressions 13,216 51
  • 52. The in-store marketing activity of competitive brands can also be analyzed through P.R.I.S.M. More shoppers had the opportunity to see Kraft Deluxe displays in just 5 weeks driven by more display locations. Kraft Deluxe Competitor # of store/weeks 5 6 Display Location Display Pallet Endcaps Endcap Case Stacker Wall & Slatwall Locations Runway Front Runway Rear Wall Lobby Zone Runway Split Aisle Impressions 31,961 28,039 52
  • 53. P.R.I.S.M. data may be applied to answer many additional questions such as… Can investment in aisle reinvention drive increases in aisle traffic and shopper conversion rates sufficient to result in positive ROI? 53
  • 54. And… • Which aisle placement will drive the greatest exposure and shopper conversion rate for my mega display? • Which type of display will yield the best ROI? 54
  • 55. And many other questions… • Is the execution of in-store media in line with targeted goals? • Are there other storepart locations that provide a more favorable audience rating and alignment with category shopper traffic? • Are there other in-store media types that should be used to drive brand volume and category closure rate? • Is the ROI more favorable for one type of in-store execution than another? • Are my in-store marketing activities as effective as my competitors? 55
  • 56. P.R.I.S.M. analytics … A powerful tool for retailers and manufacturers • Keeping the Shopper at the center • Delivering leveragable insights into Shopper in-store traffic, closure rates, and ROI for in-store spending • Examining impressions, impact and ROI of media spending across all mediums, including the store 56
  • 57. New approaches to collaboration in manufacturer / retailer shopper data sharing ECR Berlin 2008 Koos Berkhout
  • 58. Presentation overview • Introduction • Data challenges in collaboration • Benefits of a single platform • Case study • Summary
  • 59. Company Overview • Own and operate customer loyalty programmes – Nectar UK – Air Miles Middle East – Aeroplan Canada • International Business Development – Launched in: UK, Canada, Netherlands, Spain, Middle East – Grocers: Safeway, A&P, IGA, Sobeys, Albert Heijn, Eroski, Spinneys, Sainsbury’s • Insight & Communication – Customer analytics – Insight sharing – Customer targeting
  • 60. LMG Insight & Communication Division
  • 61. Data-driven collaboration can go wrong in many areas • There is an abundance of data sources, each with • People working across companies its own limitations and data traps introduce additional challenges • ePOS – Comprehensive, cross-retailer view – Does not provide insight into who • Organisations tend to have their own product hierarchies and category definitions • Panel – Adds the customer dimension to the cross-sector view • Different data sets can be used to answer – Provides directional information only – becomes less (parts of) the same question reliable in questions requiring granularity • Choosing the best analysis technique and • Loyalty Card which insights to show can be subjective – Accurate view of how what customers do on a very granular level • Interpretation of results can vary – No cross-retailer view, data provides limited insight into why shoppers behave the way they do • Market Research – Captures broader range of data can be providing better insight into why – Shoppers don’t always do what they say they do, survey content is subjective
  • 62. A single platform addresses many sources of inconsistencies LMG Analysts Manufacturer Retailer Uniform front-end guiding Uniform front-end guiding users through phrasing users through phrasing business questions in aa business questions in consistent way Central set of modules Central set of modules consistent way containing definitions, containing definitions, analysis methodologies analysis methodologies Single source Single source containing 100% containing 100% transactional and transactional and customer data customer data
  • 63. Self Serve Live Case Study
  • 64. A single insight platform enables more effective collaboration between retailers and manufacturers • Organisational alignment and data quality are critical – Manufacturers and Retailer use the same system – Agree on consistent definitions in order to make customer data common language – 100% data available over a sufficient time period • The right technology determines the success – Quick – Reports built and delivered in minutes – Fast – Data available 3 days after the end of each trading week – Simple – Intuitive portal simple to use and provides actionable insight – Intelligent – Portal structured around key business questions
  • 66. Situating shopper behaviours within 360° consumer understanding Using this insight to drive differentiated strategies Sandy Livingstone BMRB / TGI Europa ECR Berlin 2008
  • 67. As discussed earlier . . . Consumer Shopper Retail Brand
  • 68. In-store planning is still disconnected In-store planning is frequently conducted without sufficiently close reference to: central marketing communications strategy other wider picture issues such as attitudinal and cultural differences across markets At best this misses an opportunity to build differentiation with real value to the consumer At worst it results in poorly directly activities which can undermine longer term brand health
  • 69. A short story of Brand X How, apparently this brand came to decide on its in-store targeting strategy Why subsequent sales data disappointed and led to uncertainty How 360° data revealed new levels of insights, comparable across countries How this influenced future European strategy How it inspired a platform for specific actions with a retail customer
  • 70. Misunderstanding derived from an incomplete picture Brand X, a new snack product was launched across 3 European markets in early 2005 Based on demographic data on category consumption, assumptions were made by the sales team as to the target market, for example: that the core was 18-34 year old females that the major competitor was a category leader A post-launch analysis showed that this hypothesis was clearly incorrect leading to concern over direction of trade support Could more detailed analysis of other data help find a way forward?
  • 71. Brand X profile in France A highly summarised example of output
  • 72. Brand X Users: 2.4 million in France Two thirds are female, younger (spread within the 15-34 age group) and therefore more likely to be single and to be students. However some have started their families, and 44% About them have children in their household. An average number work, however given a quarter are in full time education and with skews towards homemakers and unemployed, they are slightly more likely to finding it hard on their personal income (though by background, HH income is above average). Marked skew to the north half of France with a core group living in larger cities and Paris. Have more spare time than many with a third spending 2.5 hours a day on leisure activities. Most of their weekdays are at college, some work part time or spend a lot of time Regular activities caring for children. Often use the Internet, some may use it at their campus for study or for staying connected with friends. They like to hang out with friends after school or work at fast food restaurants, cafés and bars are also into sports (football, swimming, badminton) and particularly sociable activities such as bowling, snooker etc. They rely on TV heavily or books and Bande Dessinées for relaxation. Some try to win some extra money from machines, scratch-cards or the lottery. Those with families are active theme-park goers (Parc Astérix, Walibi) and others attend cultural sites/events in Paris. Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F Base: Brand X users
  • 73. Impulsively driven by clothes, fashion and socialising Fashion is everything Impulsive trialists – love anything even superficially new (e.g. (and is disposable) packaging or gadgets) Compulsive shoppers / Try to affirm themselves through their browsers / spenders appearance gain Aspire to Out and about enjoy having a good night out Experiencing Enjoy diversity esteem and and difference stand out Look for guilt free treats. Indulge themselves but may feel tension being aware of calories Forward-looking, ambitious and up for Challenges Love being Young and Youthful Pleasure in everything; food, affection, shopping or their home Reactive to and engaged with ads and promotions Spenders, not good at saving Music an important thing in life or managing money Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F
  • 74. Foods and Diet Snack/ Foods more likely to consume often Other choc Bar choc Chewing Ice cream (bars Sweets Savoury Cereal Mints snacks Boxed choc bars gum & sticks) Snack Food RTE Breakfast cereal Salad dressing cream Ice Sweet Cheese in Delicatess Meat & Milk Frozen Mayonnaise desserts biscuit portion en Poultry vegetable Connecting with friends and family through food in Top confectionary a non-traditional French manner (no Food strategy structure/control). Sweet tooth, like to treat themselves without avoiding sugars/fats. They like brands fast food and pizza and many go for easy options such as takeaway. Many like experiencing new things and some eat in restaurants especially Greek/Turkish, Italian and exotic foods. Some opt to diet products or skip meals to keep their weight down. Many compensate with sport and overall keep fit. Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F Base: Brand X users
  • 76. Key values for each brand Similarities Key values pulling consumers apart Culture Environment Image conscious/ Spending Home keeping up Connecting Diet tension Superficial novelty Source: Enlightenment / Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F
  • 77. Discoveries Real differences exist between Brand X consumers and those of its competitors Not just a challenger sub-set: these were evident throughout: Demographics Mindset Lifestyle This warranted a further investigation into attitudinal differences in greater depth
  • 78. Starting point: a map using 250+ attitudinal statements against category brands in Germany I consider myself interested in the arts Brand X Brand L It's worth paying more for organic food BrandI M really enjoy any kind of shopping Milkinis A designer label improves a person's image It is important my household is equipped with the latest technology I find it difficult to say no to my kids I always think of the calories in what I eat To do my shopping by internet makes my life easier Lion Bar We rarely sit down to a meal together at home Nuts Real men don't cry DoveBounty I don't have time to spend preparing Tender Most of the time I'm trying to lose weight Banjo There's little I can do to change myDuploand cooking food life I think fast food is all junk I consider myself to be a spiritual person Contraception is a woman's responsibility Kit Kat Pick up Twix Snickers I would never think of taking a package holiday Celebrity endorsement influence I like taking risks Mars Bar my purchase decision. Daim Milky Way I loathe doing any form of housework I don't want responsibility I'd Brand Y The point of drinking is to get drunk rather be told what to do I find that I'm easily swayed Brand people's views by other A Nussini I always look for the light/diet Brand B I would like to set up my Nutoka Aldi - Other choc own business one day versions of food and drink I sometimes send off for goods Caramac faith is really important to me My services or info packs advertised in Kinder Maxi A woman's place is in the home newspapers mags on TV or radio When doing the household Maltesers shopping I budget for every penny I often enter competitions featured on packets or labels Enlightenment / Europa TGI 2007 February (Oct05 - Sep06)
  • 79. Brand Positioning in Germany Distinctive niche Sophistication position is Premiumisation Early adoption Brand X confirmed Brand L Brands L and M are Brand X’s closest Brand M Milkinis competitors from this axis of interpretation Lion Bar Nuts Rolo Banjo Tender Dove Bounty Feminine Duplo Kit Kat Pick up Masculine Snickers Twix Values Daim Milky Way Mars Bar Values Brand Y Brand A Nussini Aldi - Other choc Brand B Nutoka Kinder Maxi Caramac Maltesers Reactivity Price-oriented Conservatism Enlightenment Europa TGI 2007 February (Oct05 - Sep06)
  • 80. Observed differences by country Core territory Opposing values values Great Britain Fashion / Convention materialism France Trialism based on Contrarian / promotion Rebelling Germany Premium / Conservatism sophistication
  • 81. Recommendations by country In-store strategy Potential tactics Great Britain • Reinforce fashion values • Glamour magazine • Leader of its own category • Range away from main • Increase frequency • Checkout displays France • Refresh novelty value • Rolling price promotions • Permanent new interest • Series of tie-ins with other trial • Increase penetration increasers in other categories Germany • Support sophistication • Premium display • Avoid carving small niche • No price or “cheap” promotions • Widen appeal outside core • Competitions as link to aspirational
  • 82. Generating new sales from this insight A retailer/manufacturer partnership approach built on differentiation
  • 83. The potential amongst non-users is sized by creating a closely matched “look-alike” group . . . I like to treat myself to foods that are not good for me I avoid sugar (no) I often eat between meals, I keep eating snacks I think fast food is all junk (disagree) I don't pay sufficient attention to what I eat Brand X I really look after my health (no) 63% of Because of my busy lifestyle, I don't take care of myself as well as I should Brand X Our family spends a lot on food consumers I often buy useless things have at least I often buy, on impulse, products I hadn't thought of 7 of these I dress in a young style variables in I like to keep up with the latest fashions their profile I like others to look at me I spend a lot of my spare time with friends every day I want to get to the very top in my career Marital status: Single/Living alone Among snacks consumers, people who have at least 7 of these variables in their profile are 43% more likely to be Brand X consumers
  • 84. . . . Creating a potential of 16.5m consumers Snacking consumers who are non-users of Brand X Potential of 16.5m extra consumers Among other snacks eaters 39% have a very similar attitudinal profile to Brand X’s users
  • 85. The opportunity for Brand X / Retailer A No particular affinity between these consumers identified and any specific brands. Their consumption of competitive products is average Their potential affinity with Brand X is quite unique making this a promising target market Opportunity to create a differentiated platform from Stronger likelihood to be which to drive consumption Retailer A shoppers / sales
  • 86. Creating a shared, differentiated platform: Brand X / Retailer A in partnership Health and diet Indulgence Premiumisation Eating is a short break to fuel and Indulgence is not really achieved Not really about quality for its own escape pressure via sensorial pleasure sake • Convenient / easy solutions / • Rather it is through the notion of • Notion is more one of quick fix having transgressed extravagance • Often on the go • Treating generates feelings of • Usually expressed only on • Follow impulsions / avoid rules guilt as well as of pleasure occasions Pleasure obtained from the category positioned as a well-being treat / mental break necessary to a healthy and balanced lifestyle (similar function as a massage or some down-time in a Starbucks etc.) • No relation to premium quality snacks or to healthy options
  • 88. Conclusions Survey data can provide the missing insight vital to maximise in-store differentiation and ROI. We recognise that relatively few make intelligent use of it: The volume of data being processed from other sources can be overwhelming and gives the illusion of completeness There is an inherent difficulty in reconciling findings with other data sources We are hopeful that in future these barriers will be reduced: we have already worked with P&G on a project to tie into Nielsen data we are investigating ways of working with loyalty card systems Meanwhile make use of differentiating insight already available
  • 89. Panel Q&A 89