Brands cannot succeed at traditional trade without engaging the shopkeepers who control almost every aspect of it. We present a framework for understanding the motivations of traditional trade’s gatekeepers – and influencing their decisions.

1. Share this
1
Intelligence Applied
Traditional trade’s gatekeepers
Content themes:
■■ Brain game
■■ Finding faster growth
■■ Connected world
■■ Research excellence

2. Share this Intelligence Applied
2
Traditional trade’s gatekeepers
Shopkeepers don’t just provide the
location for traditional trade to happen –
they influence almost every aspect of it.
If brands are to succeed in this space, they
need a framework for understanding and
influencing these gatekeepers.

3. Share this Intelligence Applied
3
Traditional trade’s gatekeepers
In a dimly lit store in the Philippines, categories elbow
one another out of the way on straining shelves as if
part of a madcap game of retail Tetris. A woman is
peering at a selection of shampoo bottles that she’s
picked out, watched carefully by another, more elderly
woman behind the counter. As the shopper seems to
make her decision, picking up a bottle and moving
towards the counter, the older lady holds up a finger,
begging her attention. She happens to sell a bottle of
conditioner that goes excellently with that particular
brand of shampoo and would work wonderfully with
the younger woman’s hair. The shopkeeper then
rummages beneath the counter for a few seconds
before emerging with the promised bottle. It’s all part
of the personalised service that keeps her customers
coming back to the shop – and besides there was no
way she could fit this bottle on the shelf as well.
When you step into the world of traditional trade, the
shopkeeper is always a key part of the picture. At an
Indian railway station, he’s reaching into the fridge
hidden behind him to find the perfectly sized water
bottle to sit on a counter – and replace the one a
hurrying commuter bought a second ago. In Vietnam,
he waves to a couple of chairs perched outside his
store on the street, where a mother and her daughter
can sit and enjoy the crisps and drinks he’s selling
them. These are the guardians of traditional trade.
They are the gatekeepers for products in a world
where there is often no direct contact between the
shoppers themselves and products hidden away
in the dimly lit, cluttered environment. They are
the custodians of the shopping experience in an
environment where often the role of shelves is to
protect products from rodents rather than offer an
enticing display, where agreed planograms are a rarity,
and where product viability is a matter of chance.
And they are the embodiment of the challenges
and opportunities that the traditional trade channel
represents for brands. The traditional shopkeeper
controls the category context every time he or she
When you step into the
world of traditional trade,
the shopkeeper is always
a key part of the picture.
Tara Prabhakar
Regional Managing Director,
Retail & Shopper APAC, TNS
selects which of the available products they will
squeeze onto the shelves; the shopkeeper can act as
brand spokesperson, sampling agent or endorser; or
can just as easily condemn a brand to a future hidden
in the back of the store.

4. Share this Intelligence Applied
4
Traditional trade’s gatekeepers
You can’t win in traditional trade without
understanding, engaging and influencing traditional
shopkeepers – but faced with so many individuals
making their own intuitive judgments about the
best way to lure shoppers and close a deal, not to
mention the wide variety of different relationships
between shopkeepers, manufacturers and customers,
where can you possibly begin?
Most brands operating in rapid-growth markets
know that traditional trade matters. It represents
the only shopping experience for many in emerging
middle classes, and a preferred option for many
shopping missions amongst wealthier demographics
as well. For those at the Bottom of the Pyramid, it is
the channel through which they will first encounter
and start to form loyalty towards brands. Yet
recognising the importance of a channel is one thing;
developing a meaningful and manageable strategy
for it is quite another. And if brands are to plan for
growth in traditional trade, then they need to make
sense of the myriad of individuals controlling it.
If brands are to plan for growth in traditional trade,
then they need to make sense of the myriad of
individuals controlling it.

5. Share this Intelligence Applied
5
Traditional trade’s gatekeepers
Building relationships with active intermediaries
This involves brands moving beyond the modern trade
mentality of dealing with invisible retailers who create
consistent, conversion-friendly environments where
products can speak directly to shoppers. Shopkeepers
are active intermediaries, who will influence the
shopping environment, the shopper’s psychology, and
above all, the visibility and attractiveness of the products
that he or she sells. They are also extremely individual
intermediaries, with their own life needs, loyalties
and aspirations that have a direct influence over the
way they wield this influence. In traditional trade,
understanding the shopkeeper’s needs is arguably
as important as understanding those of the shopper.
This sounds intimidating, complex and confusing, but
TNS’s work in traditional trade proves that it doesn’t
have to be. The framework that we have developed
for planning traditional trade strategies, includes a
tried-and-tested approach for identifying the different
types of shopkeeper, categorising their relationships
to both products and shoppers, and understanding
which of the levers of shopper choice brands need
them to pull.
The shopkeeper’s influence is both psychological and
physical. He or she designs the physical environment
of the store, making decisions about which products
are displayed where, and how to balance their own
need to quickly access and dispense products with
the need to draw shoppers’ attention. However,
the shopkeeper also defines the store in terms of
perceptions, permissions and emotions: everything
from whether products feel accessible and shoppers
feel invited to touch, through to the confidence with
which they are able to make decisions, and the sense
of fulfillment of the experience as a whole.

6. Share this Intelligence Applied
6
Traditional trade’s gatekeepers
Individual – and intuitive
The minds making these decisions are finely tuned
to the different levels of need that their shoppers
experience, and often vastly experienced when it
comes to marshalling limited, poorly lit space to
address them effectively. Traditional shopkeepers
are some of the most intuitive salespeople on the
planet. The examples given at the start of this
piece all show their radar in action. Our Filipino
storekeeper knows that his is not an environment
for seeking out and comparing packaging – and so
a personal recommendation is a far more effective
means of closing a sale than leaving the shopper
to make their own mind up. At the Indian railway
station, in contrast, our shopkeeper knows that
harassed commuters will make instinctive, snap
decisions about whether and what they need to buy
before getting onto the train. A bottle of water is a
proven draw, and will enable her to upsell quickly by
recommending large-portioned snacks to hoard for
a potentially unpredictable journey. Choose too large
a bottle of water to sit on the counter though, and
commuters will hurry straight past – it looks far too
heavy to carry with them.
Those Indian commuters may be rushing, but
traditional shopkeepers in other contexts know that
time and space to enjoy snacks and drinks are an
important part of the transaction. In modern trade,
even spontaneous indulgence purchases are packed
into bags and taken home to consume. In traditional
trade, as in our Vietnam example, they are usually
consumed then and there, on the premises.

7. Share this Intelligence Applied
7
Traditional trade’s gatekeepers
Serving the shopkeepers
The individual needs that traditional shopkeepers
address vary across cultures and between rural
and urban environments – and so, therefore, do
the strategies they may adopt to address them.
Brands seeking to gain influence and share within
the traditional channel must demonstrate that they
understand these nuances: Are women expected to
serve, shop or both? How far must shoppers travel
on foot – and what basket size are they therefore
prepared to fill? What is the influence of social
norms on the range of categories that can be openly
displayed? To take one example, it would be pointless
to supply high-visibility POS displays and branded
bags for alcohol brands in India, where discreet
service under the counter is the only way to meet
society’s expectations.
These variations in shopkeeper scenarios can appear
bewildering – even within one market, let alone
across regions or internationally. The key question is:
can they be translated into a cohesive strategy that
can enlist and engage traditional trade’s gatekeepers
at scale?

8. Share this Intelligence Applied
8
Traditional trade’s gatekeepers
as this in the community? Are shoppers predisposed
to defer to the shopkeeper’s judgment and
recommendation? Are brands an established currency
for trust in their own right, or do they depend upon
shopkeeper recommendation and endorsement?
The motivations of shopkeepers flow directly from
these factors and we have identified three motivations
at play – survival, identity and social equity. The owner
of an informal (illegal) kiosk in a busy financial district
is motivated by survival. He needs to transact quickly,
preserving his goods and store from heat or rain
and avoiding drawing too much attention from the
authorities. For the owner of a more formal grocery
store, it’s about standing out from the competition –
and status within the community, which might require
differentiation from rival stores nearby. When stores
have become established as dominant community
hubs, the motivation shifts again to the quest for
social equity. Now the shopkeeper seeks to maintain
his or her position in the community by providing
services that move their interactions with shoppers
beyond the purely transactional. Brands can become
allies in the shopkeeper's endeavour to demonstrate
A planning framework for traditional trade
TNS has used our two decades of experience
researching traditional trade to develop a planning
framework that captures the essential differences
between the situations that traditional shopkeepers
find themselves in. These variables, part of our larger
planning framework for traditional trade strategies,
help to identify the key needs and motivations
for shopkeepers – and therefore the approaches
that brands can take to aligning the gatekeepers’
interests with their own.
First there are the physical variables: the nature of
the shop itself, from a chair and wares on the street
side to more formal grocery stores; the question of
whether shoppers can enter the store itself or must
be served through a kiosk window; the location, with
all its implications for competition, catchment area
serviced and types of shopper targeted. Then come
the psychological variables: the types of mission the
shopkeeper’s customers tend to be engaged upon,
and therefore the degree to which they prioritise
saving time, money or angst. And finally, there are
the cultural variables: what is the role of a store such
At a glance
Tailoring solutions to shopkeeper scenarios
Addressing survival needs:
■■ Robust packaging (protection from heat and rain)
■■ Small, discreet and accessible pack sizes
■■ Store protection (rain covers, umbrellas)
Addressing identity needs:
■■ Close, visible collaboration
■■ Status enhancement through co-branded initiatives
■■ Tailored pricing and assortments for local competitive
advantage
Addressing social equity needs:
■■ Community-focused initiatives
■■ Branded store environments
■■ Support for social hubs

9. Share this Intelligence Applied
9
Traditional trade’s gatekeepers
their autonomy, their connections, and their unique
grasp of local needs. Providing a social space for
youngsters to gather and watch a football match,
or one for factory workers to discuss the news over
a cup of tea and a cigarette, perhaps even a private
place with access to a phone for small-town romance
to blossom: all demonstrate this essential alignment
with the local community.
Each of these different sets of motivations suggests,
in turn a different approach from brands. For our
informal kiosk owner, we would consider smaller
pack sizes with robust designs and accessible price
points, but also branded, portable rain shelters or
heat-resistant pack formats – approaches that trade
meeting a shopkeeper need for greater brand visibility.
Formal grocery owners seeking standout from the
competition are likely to value a more collaborative
approach built around co-branded advertising or
collaboration on pack design that certifies their key
partner status. Alternatively, competitive pricing
or superior assortments could provide a valued
advantage over neighbourhood rivals. Established
community hubs need a brand approach that adds
value to the community experience: co-branded
seating or menus at the many shops that serve as
social and dining centres.
These opportunities all have one thing in common:
they represent applications of brand power that
consciously and credibly address the shopkeeper
need first and foremost. Sometimes this is implicit,
in the development of formats for our informal kiosk,
for example; on other occasions it involves active
dialogue and a demonstration that the brand can
and will adapt to the local needs that the shopkeeper
has become the conduit for.

10. Share this Intelligence Applied
10
Traditional trade’s gatekeepers
Delivering scalable insights through dialogue
The motivations of shopkeepers are one of many
different aspects within the TNS traditional trade
planning framework, which also covers areas like
shopper motivation and merchandising success
conditions. The nature of traditional trade though,
ensures that shopkeeper motivations are one of
the most significant. Understanding the context in
which traditional shopkeepers operate helps both to
identify opportunities – and to flag potential issues
with distribution or service, which often lie behind
a willingness to recommend rivals (the dreaded
“push”). The great value of a planning framework
for traditional trade is that it multiplies the value of
these insights, revealing common themes in a brand’s
relationship to retailers that can be adapted to other
markets as well.
Traditional trade may appear intimidatingly varied,
but the three-way relationship between shopkeeper,
shopper and brand gives it a distinct, consistent
pattern when it comes to the factors that influence
success. By cataloguing the different factors that
shape shopkeepers’ needs and relationships, we
have created a tool for decoding traditional trade
– and that’s the essential starting point for making
brands a more active part of it.
Understanding the
context in which
traditional shopkeepers
operate helps both to
identify opportunities
– and to flag potential
issues with distribution
or service

11. Share this Intelligence Applied
11
Traditional trade’s gatekeepers
About Intelligence Applied
Intelligence Applied is the home of the latest thinking from TNS, where we discuss the issues impacting
our clients, explore what makes people tick and spotlight how these insights can create opportunities for
business growth.
Please visit www.tnsglobal.com/intelligence-applied for more information.
About TNS
TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and
customer and employee relationships, based on long-established expertise and market-leading solutions.
With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone
else and understands individual human behaviours and attitudes across every cultural, economic and political
region of the world.
TNS is part of Kantar, the data investment management division of WPP and one of the world’s largest
insight, information and consultancy groups.
Please visit www.tnsglobal.com for more information.
Get in touch
If you would like to talk to us about anything you have read in this report, please get in touch via
enquiries@tnsglobal.com or via Twitter @tns_global
You may be interested in...
It’s time to meet the new Cambodia >
The marketer’s guide to Indonesia >
About the author
Tara Prabhakar is Regional Managing
Director, Retail & Shopper APAC, and
a key figure in the development of the
TNS planning framework for activating
traditional trade. For more information
about our approach to the traditional trade channel,
contact Tara at tara.prabhakar@tnsglobal.com