Download - Shopper Insight techniques summary
Ratera & van Galen How to win at Point of Purchase
2010
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Content
Ratera & van Galen overview
Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• In store intercepts/FGD
• Virtual shelf testing
• Video camera work
• Traffic flow monitoring
• Store auditing
Case studies
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Ratera & van GalenRatera & van Galen (R&G) is an independent market research and retailconsultancy firm working for both manufacturers and retailers across channels.We specialise into:
– Shopper research
– Trade marketing strategy
Our long-time expertise in shopping and decision making behaviour, combinedwith use of the most recent and sophisticated techniques, give us a strongposition in this area.
R&G originated in London, we had previous working experience in France, Holland, Spain, Switzerland and UK and was established in 1998 in Malaysia. Partner offices:
Asia: Bangkok, Dubai, Jakarta, Manila, Singapore, Beijing, Guangzhou and Shanghai
Europe: Amsterdam and Barcelona
We are members of The Ebeltoft Group, a global group of retail expertcompanies that work together on international projects and exchangeknowledge in their fields.
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Ratera & van Galen: The shopper research specialist
This book provides
practical advice about
shopper needs; retail
environments; shopper
trends; shopper
marketing strategies;
retailing relationships;
and effective packaging.
With contributions from:
Paco Underhill
Brian Harris
Herb Sorensen
Toon van Galen (Ratera
& van Galen)
Clients Ratera & van Galen
FMCG
&
related
Banking
Automotive
p PEERLESSPEERLESSp
Clients and partners
HM / SM
C-Store/
mini
markets
Sunshine
Pharmacies
Traditional trade/ sari sari, Chinese Medical Hall, on premise outlets
* Not direct clients: working experience with those retailers
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*Shedanvie * *
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Other
channels*
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Solutions to common problems that our clients face
Ideal category definition and grouping: What type of products belongtogether and for what reasons
Optimum category layout: How can we upgrade shoppers to buy more ormore premium goods from our category?
Purchase solutions driven by shoppers’ segmentation
Store layout adjusted to shoppers’ missions
Optimum range per channel
What are key decision factors when people buy this category and how dowe use them more effectively against our competitors?
How do we trigger impulse purchases in store?
Which promotion works best in the category?
Can we optimize the path to purchase communication in order to driveprofit?
What is the path to profit? Can we seduce shoppers to upgrade?
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Project set up
Gain agreement to conduct
research
Gain shopper insights
Key objective Methodologies
Presentation to retailers
In store interviews
Focus group discussions – FGDs
Store audits & scan data analysis
Traffic flow analysis
Retailer interviews
Workshop with Client teamDevelopment merchandising
strategy
Presentation to retailersGain retailer agreement to
implement
Implementation strategy
Evaluate project and identify
learnings
Client internal process/ post
interviews and measurement
Stage
1. Retailer presentation
2. Data review
Review of all relevant data from
TNS, Dunnhumby, Synovate,
Nielsen and/or other sources
3. Closing the gap
4. Presentation of
findings
6. Selling in to retail
partners
5. Implementation
strategy
7. Post review
Ongoing support to Client
Summarize relevant data to
identify key opportunities and
information gaps
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We track POS
communication
We film shopping
behaviour
We analyze
traffic flows
We
measure
space &
number
of sku’s
We
analyze
scan data
Virtual
shelf
testing
Eye tracking
Focus groups
We observe
browsing behaviour
prior to purchase
We interview
customers at
point of decision
Some of our methodologies
Loyalty card
solutions
Optimize
product and
assortment
We identify
hot & dead
spots in the
store and
in the shelf
Retailer interviews
We follow shoppers from
the beginning to the end
of their shopping trip
Trade Marketing Strategy based on shopper insight
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Trade marketing strategy
2
Shoppers
strategy
1
Category
strategy
3
Customer
strategy
Opportunity assessment
- Identify the definition and the
segmentation of the category based
on shopper needs
- Identify opportunities based on
shopper insights that deliver category
growth
Definition & segmentation Shopper understanding
- Measure POP material’s impact
- Define ideal message at POP
- Define optimum location of POP
materials
- Understand the shopper behaviour
including triggers and barriers for the
category at point of purchase in detail
POP tracking
Channel understanding
- Define excellent in-store execution
standards that will positively influence
shopper behavior
- Shopper behaviour difference by
channel
- POP vision by channel
- Ideal range and merchandisign by
channel In-store vision
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Content
Ratera & van Galen overview
Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• In store intercepts/FGD
• Virtual shelf testing
• Video camera work
• Traffic flow monitoring
• Store auditing
Case studies
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Category definition and segmentation steps
Step 1: Category Decision Tree
– What are current decision criteria
– Multi level: first level is by flavour, but what about next level, by pack type, price?
– Work out in detail what to do with smaller varieties, non standard pack sizes, cartons
Step 2: Assessment current category presentation
– Right location in store, adjacent categories
– Current layout shoppers likes & dislikes
– Find barriers in purchase process
– Sales and profit performance total category and for client
– POS material performance
Step 3: Develop and test new options
– Develop merchandising options, CDT is the base, use other key criteria:
– Shoppers rating
– Sales and profit driving
– POS material performance
Step 4: post testing
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Range tools
Range check via store audits and scan data analysis
Substitution analysis
In store quantitative assessment
Qualitative assessment via FGD’s
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Target the right shopper:
– Shoppers that buy another brand currently and are interested to change at regular
price
– Shoppers that use different brands and are open to become more loyal
– Shoppers that do not know your product yet
Use the right promotion:
– Multi buy, purchase with purchase, direct price off, every type has it’s different impact.
Aiming the same price off at all shoppers all the time has no proven impact on long
term sales but minimizes the profit
Who is the right target shopper for a promotion?
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The majority of promo spend is aimed at those that will
not switch to your brand
A combination of scan data analysis and shopper interviews will tell us
which part of the sales increase is really incremental and where it comes
from
% o
f s
ho
pp
ers
b
uyin
g
Subsidy existing buyers
Temporary buyers
Some of these might stick
with my brand
after promo
Temporary buyers
Brand A Brand A
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POP tracking
Recommended POS ad for each part in path of purchase
based on recall and phase of shopping trip
OUTSIDE STORE
Out of Sight
Out of
Category Zone
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Content
Ratera & van Galen overview
Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• (In store intercepts/FGD)
• Traffic flow monitoring
• Virtual shelf testing
• Video camera work
• Store auditing
Case studies
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100% & above- passing
90% - 99%
60% - 69% 20% - 29%
50% - 59% 10% - 19%
80% - 89% 40% - 49% 9% - 0%
70% - 79% 30% - 39%
% Passing
Shopper’s path in minimarket: hot spots near entrance,
many locations are never visited, shopper path is
inefficient
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Eye tracking glasses
This methodology is engaged to better illustrate the buying process of a
typical shopper, including which material or signage the respondent looks at
and for how long
Respondents are asked to wear special glasses* before entering the store /
aisle
The glasses then record their eye movement from the moment they enter
the aisle until they exit the aisle
*With 2 built in cameras, one pointing inwards to track the iris and another one pointing outwards;
Crosshair in the video footage will show where the shoppers are looking at
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Virtual shelf Re-creating a virtual shopping experience
Virtual shelf testing is a technique that is gaining popularity fast because it
generates savings in cost and time. It allows to test the purchase impact of
different shelf and pack options
What can be measured
– Choice / preference: Which SKUs are being put into the
shopping cart?
– Findability: How long does it take the individual respondent
to find a target SKU? How is findability affected by positioning
on the shelf, by surrounding competitive SKUs?
– Impact of marketing / communication: How is the purchace
probability influenced by (print) ads, TV commercials,
availability of a coupon etc.
– Changes in line-up: Cannibalization through line-extensions, effects of delisting
SKUs, loyality after relaunch of line-up
These studies are done using software from Harris Interactive Germany
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Content
Ratera & van Galen overview
Our services
– Trade marketing strategy based on shopper insight
– Areas of expertise
• Category definition and segmentation
• Optimum category layout: path to profit
• Ideal range
• Promotion
• POS communication
– Methodologies
• In store intercepts/FGD
• Virtual shelf testing
• Video camera work
• Traffic flow monitoring
• Store auditing
Case studies
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Shampoo example
BeforeConditioners on the
top, illogic range
Small bottles
Medium bottles
Big bottles at the
bottom
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New
grouping
by variant
Conditioners
next to matching
shampoo
Matching
conditioners for
all variants
After: Optimised range of conditioners and grouping of
shampoo by variant with matching conditioner next to it
Sales +13%
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Proposed planogram test leads to 22% higher
category sales and much more for the initiating brands
With this research the case to retailers to change the layout is compelling:
– Bring category flow in line with shoppers growth path to more expensive oils
– Explain benefits of different oils at point of purchase (demo’s, leaflets)
– Give consistent and better location to specialty oils across stores and retailers
– Use sub category signage to facilitate cross purchases and to stimulate experimenting with
different oils
– Develop cross promotions
– Range rationalization
– Optimum space per SKU
Refined oil Blended oil Soft oils
Refined oilBlended oilSoft oils
BEFORE
AFTER
Thank you
In case of any questions or enquiries
please contact Ratera & Van Galen
Ratera & van Galen Sdn Bhd
52-3, J 27/70A
Desa Sri Hartamas,
50480, Kuala Lumpur
Malaysia
Tel: 60 3 23008630
Fax: 60 3 23008631
www.rateravangalen.com