Growing sales by understanding and influencing shoppers along their path to purchase

Shopper Connections enables Trade and Marketing teams to focus on which levers to pull – from pre store to in store levers – in order to maximize sales of a given category or brand in a retailer.

Specifically to answer:

• Whatarekeyinfluencingfactorsalongthepath-to-purchase?

• Istherearelevantsegmentationofshoppersfollowingdifferentpaths-to-purchase?

• Howdoesmybrandperforminthedifferentpaths-to-purchaseandwhatshouldIdomaximizesalesineachpath?

• HowcanIhelptheretailertomaximizecategorysales(e.g.IncreaseShare-of-Wallet,increaseinplannedsales,etc)

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Connections : a tool within the MarketQuest*Shopper suite 3 Core Measures:

P2P Segments

Shoppers followdifferentpaths-to-purchase.We segmentshoppersaccordingtothewaytheydecideoncategory(Plannedvs.Unplannedbuying)andhowtheychoosebrands(Finders/Decidersmetric).Thisp2psegmentationframeworkprovidesaclear roadmap for shopper marketing vs. consumer marketing.

Performance on Pre-Store and In-Store Levers

Weidentifythekeyleverswhichinfluenceshoppersontheirpath-to-purchase and assess for each brand the relativestrengths and weaknesses on each of these levers.

Shopper Effect Index

Bylinkingtogetherpre-storebrandpreferenceswiththefinalchoicestheymakeusingtheIpsosproprietaryShopperEffectIndex(SEI),wecandeterminewhetherbrandsgettheirfairshare at point of purchase.

ACTIVATION

Unde

rst

anding Path to Purchase

Reta

iler S

ales

G

rowth Category Sales Grow

th

Brand Sales Growth

Relative importance of the different paths to purchase (biscuits category).

Brand X is especially underperforming in all paths, except for the planned decider path.

Performance of Brand X on in-store sales levers Closing the gap vs. other brands on assortment and pack sizes could potentially lift sales by 21 k Tons

ASSORTMENT Increase the number of varieties ...1.PRICE Reduce pack sizes to reduce the perceived price …2.

!//

CurrentVolume

‘Size of the prize’A

ssor

tmen

t

Pric

e

38k Tons

59 k Tons18 k Tons

3 k Tons

Estimates of potential brand growth

Dummy data (for illustration purposes of method)

REACH: % shoppers reached

IMPACT on biscuits purchase

Displays

Seen at entrance

In store signs

Right packsize

Seen inmain aisle

Right variety

Availablein store

In-storecoupons

PricereducFon

Seen at check--out

Seen other promoFons

Is not tooexpensive

Attractive packaging

Brand performance

Very goodperformance

Very Badperformance

Dummy data (for illustration purposes of method)

54%

19%8%

UNPLANNEDFINDER

% SHARE OF PURCHASE

% SHARE OF PURCHASE

% SHARE OF PURCHASE

20%

PLANNEDFINDER

99

92

49

PLANNEDDECIDER

UNPLANNEDDECIDER

% SHARE OF PURCHASE SEI:

SEI:

SEI:

SEI:

n=834

56

Path-to-purchase triggers Informing/ planning Retailer choice Purchasing

STORE

INSTORE

FINDING

PLANNED FINDER UNPLANNED FINDER

INSTORE

DECIDING

PLANNED DECIDER UNPLANNED DECIDER

PLANNED/UNPLANNED CATEGORY PURCHASE

HOME

HO

W B

RAN

D IS

SEL

ECTE

D

TOTALDECIDERS:

3388%%

TOTALFINDERS:

6622%%

TOTAL PLANNED: 7744%% TOTAL UNPLANNED: 26%

5544%% 88%%

1199%%2200%%

n=834

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SHOPPER*CONNEC TION

About Ipsos MarketQuestIpsosMarketQuestistheIpsosMarketingpracticeaimingatunderstandingconsumers,shoppersandmarkets todrive business growth.

Our experts help their clients identify business opportunities,definethebestpositioningfortheirbrands,allocate their Marketing investments and develop winning strategies at the point of sale.

Ipsosistheonlyglobalagencywithadedicatedpracticeinthis area, under-pinned by a powerful and validatedphilosophy centered on people and human motivations. Our solutions are based on simplified metrics and always linkedtobusinessoutcomes,throughanextensiveusageof activation sessions and simulations.

IpsosMarketingisaspecializationofIpsos,aglobalmarketresearch company which delivers insightful expertise across sixspecializations:advertising,customerloyalty,marketing,media,publicaffairs research,andsurveymanagement.Withoffices in84countries, Ipsoshastheresourcestoconduct research wherever in the world our clients do business.InOctober2011Ipsoscompletedtheacquisitionof Synovate. The combination forms the world’s third largest market research company.

In2012, Ipsosgeneratedglobal revenuesof€1.789billion,Marketing researchcontributing tomore than50%ofIpsos revenues.

Visit www.ipsosmarketing.com to learn more

Collects diagnostic data throughout the path to purchase from trigger to final SKU purchased

Identifies which in store levers are working at both category and brand level

Works with the Sudoku workshop funnel to turn insights into actionable strategy at channel or retailer level

Can track perceptions of shopper effect index over time

Your brands are operating in a dynamic retail environment. So it is important to measure strength of the brand in the mind and strength of the brand at point of purchase simultaneously and overtime.Forinstance,yourbrandequitymaybedecliningandyour sales improving. Only Connections allows to diagnose such observations in a correct way.

Getting more people intothe Store

Store shoppers into theCategory

Convert theshoppers

IncreaseQuantity/Frequency

IncreaseBrand Value

Purchase triggers

Pre path-to-purchase brand preferences

Pre-store planning of category

Understanding how and about what shoppers inform themselves (inc. on line vs off line interactions)

What are the key touchpoints

Shopping mission

Channel/ Retailer choice

Drivers behind retailer choice

Planned vs unplanned purchases

How do they make brand choices (‘finders’ vs ‘deciders’)

In-store touchpoints/ influences

Difference vs pre-path-to-purchase preference

Informing/Planning Purchasing

Path-to-purchasetriggers

Retailerchoice

Path-to-purchasetriggers Informing/planning Retailer choice Purchasing

Seen biscuits inmain aisle

Seen pricereduction

Seen biscuits atdisplay

Seen in storecoupons

Seen otherpromotions

(‘extra product’)

Seen biscuits atcheck-out

In storeadvertising

Seen biscuits atentrance

Has a largerange ofvarieties

Is not tooexpensive

Always availablein

this store

Has the rightpack sizes

Has an attractivepackaging ATTITUDINAL

EQUITY’

Brand A - GroceryWhy are sales increasing if consumer equity is eroding?

SALES

SHOPPEREFFECTS INDEX

This brand is overachieving due

to its strengthin-store with

shoppers

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SHOPPER*CONNEC TION

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