Grocery, Dry & Chilled Foods Report 2014

SNAPSHOT

Independent Pulse Background

Stakeholder Management – Customer Satisfaction

From Wikipedia,            The importance of stakeholder management is to support an organization in achieving its strategic objectives by interpreting and influencing both the external and internal environments and by creating positive relationships with stakeholders through the appropriate management of their expectations and agreed objectives. Stakeholder Management is a process and control that must be planned and guided by underlying Principles. Stakeholder management, within business or projects, prepares a strategy utilizing information (or intelligence) gathered during the Survey that are common processes to them. In this example we focus on the “Decision Maker” ( Retailer ) and a face to face Rep. visitation

Annual Surveys – Chilled & Perishables / Grocery

Annual Survey – Café / Impulse Retailer

3rd Annual Survey – Convenience Pulse

Top Line Grocery Report Agenda

1 Introduction to Independent Pulse Research

Call Cycle Satisfaction

CVI – Customer Value Indicators

Food Brokerage Service Providers

2

3

4

Executive Summary 5

Research Methodology

•  7th consecutive year of annual industry service satisfaction survey with large number of

respondents from across the country and year on year benchmarking

•  Key Retailer, Key FMCG Supplier and Industry support

•  Specific support from Ritchies Supa IGA, Foodworks, Foodland SA & Supa IGA

•  Attractive incentives - $50 Myer gift vouchers for the first 100 fully completed

questionnaires & one Major Prize of a $1000 Gift Voucher offered to all respondents

•  Respondents had 12 weeks to complete and return survey – Period Mid August to Mid

Oct. 14

•  SPSS statistical program has been utilised to professionally analyse data and prepare

tailored reports

•  Industry Insights and Research Reports have been and will continue to be published in

•  Retail World providing Respondents with valuable feedback on the results of THEIR

Survey

Independent Pulse FMCG Survey Research

The INDEPENDENT PULSE Research enables the measurement of service and performance

of the key market Suppliers and Brokers who service Dry Grocery & Non Food, Beverage

& Snacks, Tobacco & Cigarette, Chilled and Perishables categories within the

Independent retail supermarket market channel. Specifically measured are:

v  Representative Call Frequency

v  Representative Overall Satisfaction

Representative Operational Performance Satisfaction Measures known as

Customer Value Indicators(CVI’s): •  Provides Valuable Information about their Products Pricing & Deals

•  Rep Effectively Merchandises, Rotates Stock & Organises Suggested Orders when Necessary

•  Rep assist with plan-o-gram changes and provide valuable shelf management advice

•  Rep Delivers Commitments on Agreed Plans and Acts with Integrity

•  Rep Understands my Business by Tailoring Activities and Continually Looks for Ways to Assist

with Sales and Profit

Independent Pulse Report Drill Downs

The Survey Results can be cross represented across a wide range of parameters

which helps Suppliers obtain a greater level of insight into key concerns of

Independent Retailers:

v  By State

v  By Turnover

v  By Branded Groups (Supa IGA, Ritchies, etc)

v  Metro Vs Regional

v  Tailored Benchmarking against like suppliers

v  Year on Year Benchmarking

v  Individual supplier “Regular Call” satisfaction

v  Specialised Conference Presentations (on request)

Testimonials

Ritchies Stores Pty Ltd has been committed to the Independent Pulse

survey for six years. It has been a valuable source of information and a

direct conduit for open and honest communication from our stores with

regards to the level of service they are receiving from our supplier

partners. It enables us to actively quantify and qualify the important key

drivers that our supplier partners deliver to each and every one of our

stores, whether metro or regional. It provides valuable feedback on

supplier call cycles, supplier engagement with store managers and

overall supplier understanding, assistance and value-adding to our

stores. We use this information to continuously raise the performance

level of our supplier partners and improve sales and profitability for the

suppliers and our stores.

Jarrod Swaine – National Marketing General Manager Ritchies Stores Pty Ltd

“ “

Testimonials

FoodWorks supports and participates in the annual Independent Pulse surveys, which we see as recognition of how important our stores’ views

and opinions are to the wider industry. So far, we have found it a

valuable tool to give our store owners a clear voice when it comes to

the relationships they have with suppliers and it provides invaluable

feedback that looks to forge and strengthen our supplier relationships.

The surveys also assist our merchandise team to see where

we can continue to improve and open up the channels of the

communication between suppliers and stores, with the long- term view to increase sales and profitability on both sides of the business. As robust

supplier relationships become even more imperative to remain

competitive in the marketplace, we see Independent Pulse surveys

providing valuable information that will contribute to the foundation for

successful relationships.

Midhat Massoud - General Manager – Merchandise, FoodWorks

“ “

Panel Supplier Satisfaction: 5 Point Rating Scale

We have developed a new unique qualified five point satisfaction rating scale, that provides clarity to satisfaction measurements with the real

opportunity to develop focused & accurate outcomes for participating

suppliers

Successful Companies understand ALL Stakeholders

The framework •  The framework of the service-profit chain consists of the following elements:

–  Profitability & Revenue Growth – Most companies strive towards profit and growth –  Retailer Loyalty – Companies with profit and growth are characterized by a large number

of loyal customers and that execute well against their KPI’s and brand plans –  Retailer Satisfaction – Loyal customers result from satisfied customers by having service

designed and delivered to meet targeted customer needs –  External Service Value – Satisfaction depends on the company’s ability to create value for

the Retailer customer through a well defined service concept –  Employee Retention – Value is created by loyal employees –  Employee Productivity – Satisfied and loyal employees are far more productive

–  Employee Satisfaction – Employee loyalty is driven by employee satisfaction –  Employee Capability – To engage employees and ensure employee satisfaction the

company has to build up the best possible internal quality through effective workplace design, job design, employee selection and development, employee rewards and recognition, and tools for serving customers.

Strikeforce AMC B.I.G. Strategic National Club Sales CCS CrossMark Creative Activation Liaise Marketing Masterbrokers Sales Link Team works

Coca-Cola Amatil Ferrero Aust. Frucor Lindt & Sprungli Mars Confectionary JC’s Quality Nuts Scalzo Foods

Schweppes Beverages Smiths Snackfoods SBA Snack Brands Stuart Alexander Wrigley

AB World Foods Arnott’s Campbell Beiersdorf Cantarella Bros Cerebos Foods Colgate-Palmolive CSR Décor Energizer GlaxoSmithKline Heinz Wattie’s Johnson & Johnson Kellogg’s Kimberly-Clark Lion Co. Menora Foods Nestlé Manassen Foods McCain Foods

Mondelez Int. Parmalat Procter & Gamble Reckitt Benckiser Riviana Foods Sanitarium San Remo SCA Simplot SPC Twinings & Co. Unilever – Streets Unilever – Lipton Valcorp

Grocery, Dry & Chilled Food Suppliers Annual Survey period Mid August to October 2014

GROCERY DRY & NON-FOODSERVICE PROVIDERS BEVERAGE & SNACK FOOD SERVICE PROVIDERS

FOOD BROKERAGE SERVICE PROVIDERS

Respondent Profile The Key Decision Makers

INDEPENDENT RETA I LER

Respondent Profile

18%

27%

35%

20%

Under 30

31-40

41-50

Over 51

Age Unit

Manager 1%

Dept / Grocery /

Store Manager

70%

Purchasing Manager

2%

Owner / Manager

26%

Role

N = 374

3%

12%

15%

13%

14%

43%

< 3yrs

4-6 yrs

7-10 yrs

11-15 yrs

16-20 yrs

> 20 yrs

Years of Experience 32% 68%

Gender

Store Profile

N = 374

5%

5%

11%

25%

28%

26%

Unsure/Not specified

Upto $5m

$5 to $10m

$10 to $15m

$15 to $20m

Over $20m

Turnover

Free standing

store 12%

Shopping Strip 28%

Shopping Centre/

Mall 30%

Store type

NSW 20%

VIC 25% QLD

30%

SA/NT 15%

WA 8%

Tas 2%

State

Metro 64% Rural 36%

Store Profile

N = 374

32%

30%

15%

9%

3%

2%

2%

2%

1%

1%

1%

1%

1%

Supa IGA IGA

FoodWorks Supa IGA Foodland

Supa IGA Drakes Progressive IGA

SPAR Supa IGA Fishers

Ritchies IGA Supa IGA Chris's

Supa IGA Cornettes Foodland

Other

BANNER GROUP

Retail World

Retail World Readership

N = 374

Yes 88%

No 12%

Retail World Circulation

N = 374

2%

34%

21%

12%

31%

Just myself

1 to 5 people

6 to 10

11 to 15

Over 15 people

Which magazines do you refer to, to make business decisions?

N = 374

2%

9%

60%

69%

IGA Life Tasmania

The Australian Retailer

IGA Contact

Retail World

Favourite section

N = 374

1%

5%

7%

16%

19%

24%

25%

32%

36%

52%

International news

Leaders profile

News

Fresh section

Advertisements

Business section

Behind the brand

Retail news

Product development

Category review

What would you like to see more of in Retail World?

N = 374

25%

28%

32%

37%

42%

Recommended retail price

Product code

Contact details

Sampling

Promotions

What business reviews would you like to see more of?

N = 374

7%

10%

12%

15%

19%

26%

27%

32%

35%

44%

Franchising

Recruitment & training

Transport, logistics & warehouse

Financial services

Energy management

Technology: security

Business solutions

Store equipment

Technology: POS

In store service

How would you prefer to receive your trade news?

N = 374

6%

6%

17%

18%

68%

Tablet/ipad

Newspaper

E newsletter

Digital online

Print: magazine

How would you prefer to receive your trade news?

N = 374

10%

21%

24%

24%

29%

13%

21%

15%

17%

24%

13%

23%

QR codes

Digital shelf media

In store TV's

Smartphone Apps

1 Most Effective

2 Effective

3 Least Effective

Testimonials

Strikeforce AMC has been a long-term supporter of the Independent Pulse survey. In this time, AMC has been awarded ‘most preferred food brokerage

service provider’ for six consecutive years. We are once again extremely pleased with this year’s results and take great pride in being recognised for our

best-practice merchandising and sales representation services.

The Independent Pulse survey assists Strikeforce AMC to adopt

a targeted approach that ensures we satisfy the needs of the independent supermarket channel. This allows us to stay at the forefront and work more

effectively with the store personnel during their regular weekly calls. The survey insights have been instrumental in our training, staff development and assisting

Strikeforce AMC to build a team which has consistently delivered results year on year.

Strikeforce AMC is committed to achieving the highest levels of customer service, so we genuinely value the feedback and look forward to achieving

great results in the future.

Michael Bartholomew – CEO, Strikeforce AMC

“ “

Testimonials

CCA is committed to the independent trade. We aim to be a valued partner by developing long-term sustainable relationships grounded in exceptional service and

developing business-building initiatives driven by category insights. Therefore, it is

extremely pleasing for CCA to be recognised as the number one supplier in Overall Satisfaction as measured by the Independent Pulse survey.

Thank you to all the independent retailers for their support, and to all of the members

of the CCA field team for their ongoing focus and dedication.

Dominic Biasi – General Manager, CCA Wholesalers and Global Accounts

“ “ Schweppes Australia is committed to enhancing the service and support that we provide to our customers. It is extremely pleasing to see that our

independent grocery retailers have recognised these efforts in the 2013

Independent Pulse Survey. We value the feedback that is given, as it enables us to continue to improve the support that we provide to our customers. We would like to

thank all of the retailers that participated in this survey and look forward to

continuing to work with them in 2014. Carissa Ward – National Sales Manager, Grocery Operations, Schweppes Australia

“ “

Example Only: Respondent Feedback Snippets!

Owner/Manager, $20-25M turnover Foodworks in QLD

“New team much better & more focused”

Owner/Manager, $20-25M turnover Supa IGA in NSW

“Helps packing on stock”

Owner/Manager, $20-25M turnover Supa IGA in SA

“Excellent rep” Owner/Manager, $15-20M turnover

Supa IGA in NSW

“Service levels have dropped”

“Learn from both the Good

and the Bad!”

Independent Pulse research captures quantitative and qualitative data providing concise

outcomes for suppliers, industry specific insights and a low cost opportunity for future

individual supplier syndicated research. The data is analyzed across all Value Indicators

thereby providing a rich cross sectional understanding for the Suppliers.

The Research Analysis captures Respondent Insights on :

v  Most and Least Preferred Suppliers insights for each Supplier segment

v  Most Important Service factors

v  Current Key Issues in relation to Market Competition and Prices

v  Insights into Improving Supplier Service to the Market

v  Respondent Demographics and Store Profile

v  “Regular Call” Break outs

v  Year on Year benchmarking

Independent Pulse: Research Objectives

Independent Pulse Terms & Conditions of Use

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