maximising npd through understanding shoppers prepared by: emilie coles - director, tns magasin...

Maximising NPD through Understanding ShoppersMaximising NPD through Understanding ShoppersPrepared By: Emilie Coles - Director, TNS MagasinPrepared By: Emilie Coles - Director, TNS Magasin

March 2009March 2009

create the idea

experience

CONSUME

As an industry, we excel at creating and building great brands!

86% of npd

within one year

Source: ac nielsen

I don’t need to tell you……

create the idea

find and buy!

experience

CONSUME

We don’t always take into account the store……

Shoppers do not always find what they are looking for, let alone what they are not looking for!……

Getting new products to stand out is a

challenge!

If life wasn’t difficult enough, we are in a

recession!

What impact is this having on Food and Drink?

consumer confidence and sentiment already heavily affected…

Source: TNS / Nationwide Consumer Confidence Index*Since May 2004 (Not seasonally adjusted)

Consumer Confidence Index

…but the sentiment is not hitting food yet….

20.3 19.9

4.13.5 3.1

10.7 10.511.3

4.9 5.46.8

ilitie

1st choice 2nd choice

We asked: ‘How would you cut back on spending?’

Multiples

Discounters

Tesco/JSconvenience

High Stconvenience

Destination

Baskets

Trolley

‘High St convenience’ = indpendents, symbols, Wilkinsons, chemists, greengrocers etc.

High street convenience is losing out...

-20000 -15000 -10000 -5000 0 5000

High St Conv Basket

Tescojs Conv Trolley

Tescojs Conv Dest

High St Conv Trolley

Mults Dest

Disc Dest

Tescojs Conv Basket

Disc Trolley

Disc Basket

Mults Basket

Mults Trolley Net switching - Spend

8 weeks ending 10 Aug 2008 Expected

As shoppers switch to Hypermarkets

-15000 -10000 -5000 0 5000 10000 15000 20000 25000

High St Conv Dest

High St Conv Basket

Tescojs Conv Trolley

High St Conv Trolley

Tescojs Conv Basket

Mults Dest

Tescojs Conv Dest

Disc Dest

Mults Basket

Disc Basket

Disc Trolley Net switching - Spend

8 weeks ending 10 Aug 2008 Expected

And Hypers lose to discounters…

Budget(Median -75%)

Standard(Median -25%)

Good (Medianprice)

Premium(Median +25%)

Super Prem(Median +75%)

The ‘Budget’ price band sees greatest growth rate this year – signs of shoppers trading down…

Private brands and exclusive products generate between ¼ to almost ½ of sales for some leading retailers

And are growing more than 2x as fast as all food sales in recent years

Estimated Share of Sales from Private Label

Sources: Company reports, PLMA, Private Label magazine, and other trade press research.

Loblaws(Canada)

Safeway Albert-sons

Kroger Meijer A&P FoodLion

25% 25%23%

Target Tesco

46% 45%37%

Wal-Mart

Private label share is growing…and will be a threat

100 100 98

106 10599 100 97

100 101104 104

108112 115 115

100 98 9693

103 105

fmcg total2)

100110 112 113 115

127131

recession

What is the reaction of industry and trade on advertising spend ?market leaders are cyclical and retailers anti-cyclical

advertising spend 2001=100

2001 2002 2003 2004 2005 2006 2007 2008

source: Thomson Media Control; Nielsen Media Research 1) 21 market leaders from groups, only TV 2) only TV 3) trade for fmcg, all media without dailies, leaflets 4) REWE campaign 5) Plus campaign 6) REAL-TV-campaign, Lidl TV-campaign

7) 32 premium brands only TV

premiumbrand7)

marketleader1)

retailers3

I II III IV108 99 95 87market leaders reduceadvertising spend – especially in the2nd half of the year

what does this mean?

Need to prove role of brands

in-store & maximise our

spend!

Trading down to private label

O.L GrowsHome

Purchase

Less brand power ATL

storeUnderstand Shoppers!

what are we dealing with in-store?

80% shopping is

done in beta mode…

sub conscious

low involvement

this makes it difficult for NPD to have real

cut though

Shopper principles for successful

NPD1. Use a consistent visual cue TTL

2. Launch in the right place in-store and on shelf

3. Activate using the right mechanics at the right time

4. Ensure pack stands out/is recognisable

1. Create a visual cue that can be

communicated TTL

a visual cue could could be…..

colour

a visual cue links short term and long term memory

Establish what the

visual cue is for the brand and communicate

this in the entire campaign

Purchase

Visual Cue

Gillette Fusion:

visual trigger – orange & blue = stand out TTL

Press (lads mag)

in-store

on-pack

create the idea

Find and buy!

Experience

create the idea

Find and buy!

Experience

2. Launch NPD in the

right place in-store

There are hot and cold spots in stores

Store penetration should influence where we

launch new products COLD

Taking into account mindset as well…

Great traffic

Great location?

Two thirds of passingtraffic will not interact

Gondola ends offer a prime location for new product

launches

This space could be better utilised

Doesn’t have to be so complicated

Shopper flow

Launch NPD in the right place on shelf

Most categories have a visual hot spot on the fixture known as the “diamond”

This is driven by eye movement …….

We look 15-30 degrees downwards, search

Horizontally, in a 1-2 m vision cone

1-2 metres

SEARCH HORIZONTALLY15-30 degrees

The diamond occurs around signpost brands……

signpost

Locate NPD in the diamond hot spot to gain visibility

signpostNPD NPD

Support further with on shelf highlighters – e.g picture framing

signpostNPD NPD

3. Activate NPD in the

right place at the right time

Is this the right place?

Eye Level??

Content relative to time …

Right format right content?Babylicous

Right format, right content?

Visit/PurchaseVisit/Purchaseon Impulseon Impulse

Planned Planned to SKUto SKU

High Engagement/Time SpendHigh Engagement/Time Spend

Low Engagement/Time SpendLow Engagement/Time Spend

Confusion/Complex Decision

Auto PilotMilk

Semi-ImpulseCleaning

Involving/EngagingSkincare

NPD execution needs to take account of category roles

Yoghurts

Purchase

Role of the touchpoints for new product launch will change depending on the category …..

T.V & PressDoor DropsCoupons

Engaged Audience

Dis-Engaged Audience

Simple visual cuesLinking to ATLClear signpostingProduct Stand Out

Pre-store

shop the store

shop the category

Functional Benefits

Purchase

Role of the touchpoints for new product launch will change depending on the category …..

T.V & PressDoor DropsCoupons

Engaged Audience

Linking to ATLTheatreCommunicationEducation

Pre-store

shop the store

shop the category

Emotional Benefits

4. Ensure pack has stand out through strong

colourshape & matches shopping style

Shoppers recognise products using colour and shape

Over 2/3rds fixations are on colour

General Learning

Simple, Ownable Colourshape – has stand out

EngagingSearching for on pack information/education

Staple Commodities

Packaging acts as a signpost

In Summary…• To maximise the success of new products, we must consider the role

of the store as a touchpoint and how people shop our categories

• There are some clear actions we can take to maximise the success of our launches:

1. Use a consistent visual cue TTL – simple and clear

2.Launch in the right place in-store and on shelf

Gondola end execution

Eye level & signposting

3.Activate using the right mechanics at the right time

Format, content and location

4. Ensure pack stands out

Colourshape

Right cues, right category!

…….Shopper Behaviour Properly Explained.Shopper Behaviour Properly ExplainedTNS MagasinTNS MagasinKings Head PlaceKings Head PlaceMarket HarboroughMarket HarboroughLEICSLEICSemail: emilie.coles@tns-global.comemail: emilie.coles@tns-global.com

maximising npd through understanding shoppers prepared by: emilie coles - director, tns magasin...

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