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TRANSCRIPT
Canadian Meat Council 91st Annual Conference
Halifax, Canada
Presented by: Peter Townsend
Todays Discussion
• Great opportunity to differentiate your category in Grocery Retail
• New opportunities to present solutions at retail • Introduce Shopper Marketing
• Collaboration Required • Better Positioning
• More Focus
• More Support
• Leap Frog other Categories in the Store
Everyone in the Grocery Game
Competition for Shopper Trips is Intense
85 78
72 59
1998 2000 2004 2009
Supermarket Trips per household
• Mass, Club and Drug stealing trips from Grocery Stores
What does a Grocery Store Look Like?
Consumer Perspective
Consumer Confessions
Competitive Landscape
Competitive Spectrum Mass Specialized
Grocers will need to capitalize on importance of fresh in order to differentiate from competitors
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Bakery
Dairy
Meat
Produce
Importance in determining grocery store choice
This Weeks Flyers
Key Takeaways
Retailer Perspective
Focus on Centre of the Store
Focus on Centre of the Supply Chain
Focus on Trade Spend Focus on Weekly Flyer
Focus on ‘Product Out’ vs ‘Customer In’
Focus on Procurement and Logistics
Focus on ‘Pull vs ‘Push’ Focus on ‘Passive’ vs ‘Active’ Retailing
Overwhelming Data In
tern
al D
ata
POS
Transactional Time Stamp
Number
Dollars Price
Units
Loyalty
Customer Info Points
Profiles Lifestage
Segmentation
Operations Store Layout
Planogram Holding
Marketing Campaigns Promotions
Competitive
Outputs:
• Purchases • Dollar Sales • Items
• Development • Market Segments • Profiles
• Turns
• Market Share
Customers also bring part of the equation
Path to Purchase Tracking
Linking Customer – Cart – Path & Purchase
New Measurements New Math
Measure Customer Conversion
Conversion now measured not on visitors to the store alone but shoppers to the specific merchandising area.
Time as a measure
Meat Performance Dwell Time Traffic
Call to Action
Niche
• Few stop to shop, but those that do..buy
Leaders
• Shoppers who pass here stop to shop and buy
Under Developed
• Few stop to shop, few who do …buy
High Interest
• Shoppers stop to shop, but do not buy
VitalQuadrant Anlysis
Effective Merchandising
Poor Merchandising
Effective Merchandising
Attractive Merchandising
Key Takeaways
Pinpoint where your best shoppers travel
Identify Products that lend themselves to Impulse sales
Position Basket Size Enhancers for Optimal Exposure to Store Traffic
Manufacturer Perspective
Over 35% of volume sold on Promotion
Trade Spending is approx 20% Cost of Sales
Private Label is always threating
Fight for Shelf Space Collaboration with Retailer is Difficult
New Product Research and Development
Category Management Focus
Marketing Budget Unaligned
In Store Shopper Reach
One 4 Week In Store Program at Wal-Mart • 200M Million Trips • 60M Households Combined Audience of Top 2 Programs
Think of the store opportunity
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# H
ou
seh
old
Vis
its
pe
r w
ee
k
(Mill
ion
s)
Source: ACNielsen Channel Blurring and Wall Street Journal Super Bowl Figures represent number of viewers
Use the Store to Communicate with Customers
• Breakfast/Lunch/ Dinner • Seasonal ( BBQ/Holiday) • Party ( Birthday, Superbowl)
Permanent End Cap
Yogurt Category Communication
Fully Leverage Technology to capture trips and improve
Experience
In Store Media
Kiosks
Digital Signs
On Cart
Hand Held
Mobile
Shelf
RFID
Shopper Marketing Playbook
• Build customer relationships
• Pre and In-Store Equity
• Move Beyond Promo Price to Targeted Messages
Promo/Price
• Actionable Insight to manage growth
Place/ Product
Planograms Store Layout
Mobile Loyalty Programs
End game is loyalty and growth
Add Stores to Market
Add Customers
to Store
Add Trips to Store
Add items to Basket
Add Profit to Basket
Consumer Decisions
Where is….
I can’t find the product I bought last time?
What am going to buy?
What’s on promo?
Do I have a coupon for that?
I need it now…
Branded or PL?
How much do I need?
What goes with this?
Forgot my shopping list…again!!
Make it easier for the Customer
Winning in the Customer Centric Retail Era
Will require the ability to: • Focus on Fresh
• Differentiates Grocery from other ‘Food’ Stores • Understand ‘end to end’ Customer Levers you can pull to deliver a
superior Fresh Experience
• Intensify Shopper Knowledge • Mine Data for information and Insights
• Success of Planograms • Assortment • Loyalty Data for Customer Behaviour and Preferences
• Shift from Category Management to Shopper Marketing • Fulfill Customers Mission Based Demand Issues
• Collaborate – Manufacturers and Retailers
