1 copyright ©2014 the nielsen company. confidential and proprietary. upcoming webinars march 18...
TRANSCRIPT
1Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
UPCOMING WEBINARS
March 18SUPER CONSUMERS, CHAPTER 2: MASS AND PRECISION MARKETING ACTIVATION
March 25MILLENNIALS: BREAKING THE MYTHS - "NO STRINGS ATTACHED" GENERATION
SECRETS OF SUCCESS
Todd HaleSVP, Consumer & Shopper InsightsMarch 4, 2014
HOW TO CAPITALIZE ON PRIVATE LABELS' UNTAPPED POTENTIAL
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
3
TODAY’S PRESENTER
TODD HALE
SVP, CONSUMER & SHOPPER INSIGHTS, NIELSEN
SECRETS OF SUCCESS
Todd HaleSVP, Consumer & Shopper InsightsMarch 4, 2014
HOW TO CAPITALIZE ON PRIVATE LABELS' UNTAPPED POTENTIAL
5Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
TABLE OF CONTENTS• Store Brands Landscape & Performance Update
• Top 10 Store Brand Retailers: Store Brand Share & Department Footprints Drivers of Behavior Demographic Connection Points Use of Single versus Multiple Store Brands Supply Sourcing Merchandising & Marketing Analytic Expertise
• How should branded manufacturers respond?
• Key Takeaways
STORE BRANDS LANDSCAPE
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
7
VALUE & CONVENIENCE WINNING
Source: Nielsen Scantrack, Total U.S., 52 weeks ending 12/21/2013 (vs. year ago), UPC-coded; *Club Stores, Dollar Stores, Mass-Merchandisers, Supercenters, & Military
Growth has slowed since end of ’12 – particularly in value & convenience channels
All Departments: Dollar Sales & Trend
8Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
FASTER STORE BRANDS GROWTH (VERSUS TOTAL STORE) IN ALL BUT VALUEStore Brands: All Departments – Dollar Sales & Trend
Source: Nielsen Scantrack, Total U.S., 52 weeks ending 12/21/2013 (vs. year ago), UPC-coded; *Club Stores, Dollar Stores, Mass-Merchandisers, Supercenters, & Military
Supermarkets drive a larger share of store brands sales than total store
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
9
GROWTH CHANNELS LESS DEVELOPED, BUT GAINING
Source: Nielsen Scantrack, Total U.S., UPC-coded;*Club Stores, Dollar Stores, Mass-Merchandisers, Supercenters, & Military
2009 2010 2011 2012 2013
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
10
JUST OUTPACING BRAND GROWTH IN ’12 & ‘13
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), UPC-coded
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
11
BUT OPPORTUNITY REMAINSDollar Share
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/26/2009 & 52 weeks ending 12/21/2013, UPC-coded
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
12
HIGH CONSUMER INTEREST% Saying they agree / strongly agree that store brands…
Source: Nielsen Homescan Survey (January 2014 n=19428)
But needle hasn’t moved much since interest peaked in 2009
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
13
GREATER DEVELOPMENT IN EDIBLE CATEGORIES
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), UPC-coded, 116 major category groupings
More than twice as many edible categories with 25+ Store Brand share
Store Brands: Dollar Share
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
14
WHERE ARE THE GROWTH OPPORTUNITIES?
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), UPC-coded, 116 major category groupings
Are they bigger in low or high share categories? What other considerations?
Store Brands: Dollar Share
Bottom 10
1. Computer/Electronic Prods 2. Beer 3. Deodorant 4. Gum 5. Tobacco & Accessories 6. Canning/Freezing Supplies 7. Wine 8. Liquor 9. Hair Care 10. Insecticides Repellants
Top 10
1. Milk 2. Eggs-Fresh 3. Sugar/Sugar Substitutes 4. Wrapping Materials Bags 5. Pain Remedies 6. Dessert/Fruit/Tops-Frozen 7. Unprep Meat/Seafood-Frozen 8. Fruit-Canned 9. Cheese 10. Shortening/Oil
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
15
BASIC EDIBLES DRIVE TOP SELLING CATEGORIES
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), 120 major categories, UPC-coded
Top ten highest selling store brand categories
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
16
BASIC EDIBLES DELIVER TOP SHARES TOO
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), UPC-coded, 120 major category groupings
Six of top ten store brands share categories losing share
Top ten highest store brands $ share
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
17
SOME BIG EDIBLE CATEGORIES STRUGGLING
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), 120 major categories, UPC-coded
Top ten largest declining (change in $ sales) store brands categories
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
18
TRIAL & ERROR AND FALLING DEMAND
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), 120 major categories, UPC-coded
Top ten fastest declining ($ % change vs. year ago) store brands categories
For new categories, was there sufficient research to ensure sound launches?
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
19
MOST FAST GROWING ARE ALREADY TOP SELLERS
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), 120 major categories, UPC-coded
Top ten fastest growing (change in $ sales) store brands categories
Only two non-edible categories part of the mix
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
20
NON-EDIBLES DRIVING FAST GROWING
Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/21/2013 (vs. year ago), 120 major categories, UPC-coded
Top ten fastest growing ($ % change vs. year ago) store brands categories
INNOVATION OR EMULATION?Is our store brands industry better
at true innovation?
Or is our industry better at emulating brand successes?
TOP TEN STORE BRAND RETAILERS
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
23
SUPERMARKETS DOMINATE TOP TEN
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
Limited assortment/extreme discount formats lead the way
Store Brands $ Share of Total Store
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
24
SHOUT OUT TO SOME NOT ON OUR TOP TEN LIST
Source: Company websites
Marketside – a big secretSuperiority in packaging visuals for their
Culinary Circle line
Simply Balancedproduct launch
Brand-like building engagements for their
store brands
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
25
GAPS IN DEPARTMENT ASSORTMENT
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
Store Brand $ Share Index versus Channel
Share Index versus channel is: 120 or greater between 80–12080 or less
Most under-developed in health & beauty, general merchandise and alcoholic bevs
Aldi
Save-A-Lot
Wegmans
Dollar General
Costco
H-E-B
Kroger Grocer Corp
Hannaford
Safeway-Corp
Stater Bros
Dairy Deli Frozen Meat FreshProduce
DryGrocery
Non-Food Health &Beauty
GeneralMerch
AlcoholicBevs
DRIVERS OF BEHAVIOR
27Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
SUPERMARKETS LEAD CONVERSION RATES IN ALL BUT THREE DEPARTMENTSStore Brands Department Buyer Conversion
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, % of store brand shoppers who buy store brands
Cross-Channel Ranking: 1st 2nd 3rd 4th 5th
Total Store
Dry Grocery
Dairy
Frozen
Fresh Produce
Meat
Non-Food
Deli
Health & Beauty
Alcoholic Bevs
General Merch
Supermarkets Mass withSupercenters
Warehouse Clubs Drug Stores Dollar Stores
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
28
ALDI, H-E-B & KROGER BEST AT CONVERSION
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, % of store brand shoppers who buy store brands
Only Dollar General, Safeway & Stater Bros converting less than 90%
Store Brands Buyer Conversion
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
29
H-E-B # 1 DEPARTMENT CONVERTER; KROGER NO. 2
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, % of store brand shoppers who buy store brands
Store Brands Buyer Conversion Retailer Ranking by Department
Dry Grocery
No. 1 in
Dairy
Deli
Frozen Meat
Non-Food
Health & Beauty
GeneralMerch
No. 1 in
Fresh Produce
No. 1 in
Alcoholic Bevs
No. 1 in
30Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
H-E-B, KROGER & COSTCO DRIVE LARGER ANNUAL STORE BRANDS BUYING RATEStore Brands $ Buying Rate
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, Item $ Per Item Buyer
But interesting to see Aldi holding No. 4 position
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
31
SUPERMARKETS CAPTURE MORE FREQUENT TRIPS
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, Item Trips Per Item Buyer
Fewer trips from Aldi, Costco, Save-A-Lot & Dollar General
Store Brands Buying Frequency
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
32
COSTCO WINS PER TRIP SPEND
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, Item $ Per Item Trip
Aldi No. 2
Store Brands $ Per Trip
33Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
NATIONAL GROCERS LEVERAGE DEALS TO WIN% Store Brands $ On Deal
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items, % Item $ On Deal
Are those levels really necessary or do we need more effective promotions?
DEMOGRAPHIC CONNECTION POINTS
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
35
ARE YOU FOCUSED ON NEW OR EXISTING BUYERS?
Drive 43% of sales: Do you understand what drives these buyers to spend so much?
Source: Nielsen Homescan, Total U.S., 52 weeks ending 09/14/2013, UPC-coded
1/5 of Store Brands Buyers
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
36
TOP STORE BRANDS BUYERS SPEND 3X MORE
Source: Nielsen Homescan, Total U.S., 52 weeks ending 09/14/2013, UPC-coded
They make more trips, spend more per trip & are less deal prone
Store Brand Buying Behavior
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
37
A 10 PT. SHARE SWING FOR TOP SPENDERS
Source: Nielsen Homescan, Total U.S., 52-weeks ending 09/14/2013, UPC-coded
All Category Dollar Shares
Over 1/4th of dollar sales for Top Buyers is devoted to Store Brands
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
38
TOP SPENDERS DRIVEN BY NEED FOR VALUE?
Source: Nielsen Homescan, 52-weeks ending 9/14/2013; *Index = demographic group / total U.S. * 100
Top Store Brands Buyers Index* – Over to Under Developed Segments
80 or <> 80, < 120120 or >
1 Member HH
2
3 to 4
5+
Kids < 6
6 to 12
13 to 17
No kids < 18
Income < $20k
$20k - $29.9k
$30k - $39.9k
$40k - $49.9k
$50k - $69.9k
$70k - $99.9k
$100k +
White
African-American
Asian
Hispanic
Female Head < 35
35 to 44
45 to 54
55 to 64
65+
No Female Head
Not a HS Grad
HS Grad
Some College
College Grad
Total All Departments
39Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
DIVERSE CONNECTION POINTS AT THE EXTREMES OF INCOME% of Account Dollar Sales
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
Save-A-Lot & Dollar General have greater opportunity to build sales from economically challenged; Costco, Wegmans & Safeway from affluent
40Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
DIVERSE CONNECTION POINTS AT THE EXTREMES OF HOUSEHOLD TYPES% of Account Dollar Sales
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
Save-A-Lot & Dollar General have greater opportunity to build sales from small households; Stater Bros & H-E-B from large households
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
41
WINNING THESE AGE GROUPS IS CRITICAL
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
% of Account Dollar Sales
Most best-of-breed retailers are well positioned to win among the two age groups most important to top spend store brands buyers
42Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
DIVERSE CONNECTION POINTS AT THE EXTREMES OF AGE% of Account Dollar Sales
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
H-E-B & Wegmans have greater opportunity to build sales among younger;Stater Bros, Save-A-Lot & Dollar General from older
43Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
SIMILAR CONNECTION POINTS IN TERMS OF KID VERSUS NO KID HOUSEHOLDS % of Account Dollar Sales
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
Makes for tough assortment decisions as kid households drive sales
44Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
H-E-B & STATER BROS HAVE STRONG DRAW FROM HISPANICS% of Account Dollar Sales
Source: Nielsen Homescan, 52 weeks ending 9/28/2013, UPC-coded items
Opportunity for all as Hispanics have strong attitudinal connection with store brands
USE OF SINGLE OR MULTIPLESTORE BRAND LABELS
46Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
BEST OF BREED WIN WITH SINGLE & MULTIPLE STORE BRANDSNumber of Store Brands:
Source: Company websites
Is there room for rationalization for those with multiple store brands?
1 2 - 10 11 - 35 70 +
SUPPLY SOURCING
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
48
MOST TOP TEN OUTSOURCE PRODUCTION Supply Sourcing
Source: Company websites
1. Aldi 2. Costco3. Dollar General4. Hannaford5. H-E-B 6. Save-A-Lot7. Stater Bros 8. Wegmans
NOT IN RANK ORDER
1. Kroger Grocery-Corp 2. Safeway-Corp
Outsourced Combination of Outsourced & Manufacture Their Own
MERCHANDISING & MARKETING
50Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
ONLINE ENGAGEMENTS & PROMOTION SUPPORT GETTING BETTER, BUT HOW MUCH IS NEEDED?Merchandising & Marketing
Source: Nielsen observations
1. H-E-B2. Aldi3. Kroger Grocery-Corp 4. Safeway-Corp5. Save-A-Lot 6. Dollar General 7. Wegmans 8. Hannaford9. Stater Bros 10. Costco
Online Engagement
1. H-E-B2. Kroger Grocery-Corp 3. Safeway-Corp4. Wegmans5. Save-A-Lot6. Aldi7. Dollar General 8. Hannaford 9. Costco 10. Stater Bros
Quality of Promotions
Some really good online
engagements, but those on the
bottom make you search for their store brands
Temporary price reductions still
most prominent deal;
use of digital coupons & recipe
ideas for some
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
51
EYE-CATCHING IN-STORE MERCHANDISING; ITS OWN WEBSITE & ARRAY OF SOCIAL MEDIA
Source: Todd Hale (in-store photo); Kroger, http://www.simpletruth.com/; The Cincinnati Enquirer
52Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
PROMOTION “BEST PRACTICES” FROM ONLY TWO ON OUR TOP TEN LIST Top Ten Store Brands Promotions (alpha order)
Source: Supermarket News & Wegmans
1. Brookshire brands hit the road
2. CVS quizzes Beauty buyers
3. Food Lion requests before-and-after photos
4. H-E-B GIVES TLC TO BABY BRAND
5. Loblaw links brands to better health
6. Target makes a scene at Grand Central
7. Walgreens ice cream stars in reality show
8. WEGMANS PUTS CHEFS TO THE TEST
9. Whole Foods gives away free product
10. Winn-Dixie beefs up Facebook game
STORE BRANDS 2014: THE CONNECTED CONSUMER
ANALYTIC EXPERTISE
54Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
LOW INVESTMENTS IN ANALYTICS COMPARED TO NATIONAL BRAND INVESTMENTSAnalytic Expertise
Source: Nielsen observations
1. Aldi 2. Costco3. Dollar General 4. Hannaford5. H-E-B 6. Save-A-Lot7. Stater Bros 8. Wegmans
NOT IN RANK ORDER
1. Kroger Grocery-Corp 2. Safeway-Corp
Use basic POS or panel data metrics to drive assortment & pricing decisions; competitive store
visits
Few using more complex analytics
to test new product concepts; simulate product launches; conduct ad copy and/or weight
testing; or understand white
space opportunities from a consumer
demand perspective
Simple Complex
HOW SHOULD BRANDEDMANUFACTURERS RESPOND?
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
56
COLLABORATE WITH YOUR RETAIL PARTNERS
Be current in branded vs. store brand pricing analytics
Show why your brand assortment aligns well w/store brand assortment
Identify promotional partners Take a collaborative approach to
how you assess branded versus store brand risks & opportunities
Use excess capacity for store brand production
The Basics
Create account-specific integrated shelf set plans
Help retailers migrate to digital communication
Provide recipes or “how to” solution content
Identify white space opportunities in & outside of your categories
Show retail partners how to connect w/consumer segments
The Next Level
KEY TAKEAWAYS
58Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
KEY TAKEAWAYS – NO BLUEPRINT FOR SUCCESS
Don’t get caught up in the competition, get caught up in what your shoppers want!
Best of breed store brands retailers show diversity in:
What departments they choose to engage
The behaviors in which they drive sales
The types of shoppers they can connect with
And in how they nurture their store brands via:Use of Single vs. Multiple Store Brands • Supply Sourcing •Merchandising & Marketing • Analytic Expertise
59Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
KEY TAKEAWAYS – TOP TEN WIN WITH:
Organizational Focus
Operational Excellence
Shopper Understanding
THANK YOU
Copy
right
©20
14 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
61
Q & A
THANK YOU FOR JOINING US• If you have follow-up questions or want more information,
please contact your Nielsen Professional Services rep
• If you are not a current Nielsen client, please contact us
Phone: 800.553.3727
Email: [email protected]
• If you have any questions regarding the content of this webinar, you can also contact Todd Hale:
[email protected] http://www.linkedin.com/pub/todd-hale/a/353/613
@ToddHaleNielsen