Planning The Path to Purchase

Introductory  Mee-ng:Shopper  engagement  in  the  Convenience  Channel

Presented  to:  Richard  Tyler

Monday, 8 July 13

• Neon  Marcomms  team  worked  with  Sue  McVie  at  CCE  for  several  years

• Known  for  channel  experBse,  parBcularly  out  of  home  

• We  helped  to  turn  channel  plans  into  customer  plans  across  all  channels  

• Successful  acBviBes  run  in  convenience  mulBples,  Symbols,  Delivered  wholesale,  C&C,  Roadside  and  Independents  for  naBonal  promoBons  like  Coke  Olympics  or  Bud  World  Cup  or  smaller  customer  markeBng  iniBaBves

• Many  of  the  principles  that  work  in  one  channel  can  be  adapted  and  applied  successfully  to  another

• Our  team  first  applied  an  Occasion-­‐based  strategy  to  the  on  trade,  but  have  since  related  this  approach  to  shopper  acBvaBon  in  grocery,  and  now  the  convenience  channel

Introduc-on

Planning The Path to Purchase

Monday, 8 July 13

• Category  leaders  in  delivered  wholesale  of  chilled  food  brands

• Unique  ‘Sale  or  return’  policy,  and  low  minimum  order  quanBBes  for  small  stores

• 400  Kerry  Fresh  vans,  26  depots  supply  14,000  customers

• MulBple  convenience  supplied  via  their  own  distribuBon  depots?

• Providing  customers  with  experBse  and  quality  markeBng  support

Kerry  Foods

Planning The Path to Purchase

Monday, 8 July 13

• Neon  Marcomms  was  born  from  top  10  BTL  agency  Dynamo  (now  Wax  CommunicaBons)  We  specialise  in  big  promoBonal  campaigns  for  big  brands,  always  with  a  strong  consumer  insight  at  the  heart.  We  always  ensure  while  Planning  The  Path  to  Purchase  (our  agency  mantra  )  that  people  are  moved  enough  to  buy  the  brands  we  acBvate.

• Our  thinking  became  Shopper  –  orientated  in  the  1990’s  as  retailer  power  in  the  UK  increased.  Clients  relied  on  us  to  develop  strategies  that  would  make  it  more  likely  that  their  acBvity  would  be  supported  in  store.  

• We  like  to  apply  the  same  rigorous  approach  to  all  channels  of  distribuBon

• Our  experience  covers  14  out  the  top  20  grocery  brands

• We’ve  worked  on  Cheese  Strings,  and  pitched  on  Rustlers!

Who  we  are

Planning The Path to Purchase

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Planning The Path to Purchase

Some  of  our  work

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Monday, 8 July 13

Planning The Path to Purchase

• Channel  will  conBnue  to  outperform  the  wider  UK  grocery  market,  and  will  be  worth  £42.6bn  in  2015  and    £46.2bn  by  2018,  up  nearly  £11bn  from  2013.

• Convenience  mulBples  were  the  fastest  growing  segment  in  the  12  months  to  April  2013,  with  sales  up  8.4%.  Given  the  opportuniBes  in  the  channel,  big  supermarket  chains  are  expanding  their  convenience  store  estates  and  using  their  scale  to  provide  shoppers  with  afracBve  product  ranges  and  consistent  in-­‐store  service.  Some  key  recent  developments  include:

• Sainsbury’s  announced  it  will  operate  more  convenience  stores  than  supermarkets  next  year  and  is  planning  to  open  around  100  new  convenience  stores  per  year

• Tesco’s  key  trading  priority  is  to  reach  the  shopper  by  becoming  the  best  mulB-­‐channel  retailer  and  to  tailor  ranges  accordingly.  Tesco  recently  announced  that  One  Stop,  a  wholly-­‐owned  subsidiary  of  Tesco,  is  to  begin  trialling  a  franchise  model  with  independent  retailers

• Morrisons  is  opening  its  first  M  Local  stores  (see  our  recent  store  visit)  and  is  planning  to  have  100  M  local  convenience  stores  open  by  January  2014,  primarily  in  London

• Asda  is  commifed  to  building  a  world  class  mulB-­‐channel  business.  Since  its  acquisiBon  of  Nefo's  UK  business,  Asda  has  been  learning  how  to  get  the  most  out  of  its  expanding  porjolio  of  small  format  stores  -­‐  stores  are  now  organised  to  meet  the  needs  of  convenience,  'top-­‐up'  and  'stock-­‐up'  shoppers

The  opportunity  in  Convenience

Planning The Path to Purchase

Monday, 8 July 13

There  are  2  main  opportuniBes  outside  of  Grocery

Main non-grocery

opportunities

30% c-store

Monday, 8 July 13

• In  the  US  57%  of  shopping  trips  are    occasion-­‐based

• Important  to  understand  the  difference  between  consumers  and  shoppers

• Research  helps  idenBfy  TRIP  MISSION  and  CONSUMPTION  

• IdenBfy  Need  -­‐>  Basket  Analysis  -­‐>  Deliver  Shopper-­‐centric  soluBon

Consumer:

How, where, why dothey consume / use?

Consumer insightsBrand MktingR&D

Marcomms Innovation

Shopper:

How, where, why dothey shop?

Shopper insightsShopper MktingAccount Teams

In-storePath 2 PurchaseInfluencers / tactics

TRIP MISSION

CONSUMEROCCASION

Activation Opportunity

Key  to  Success:  Understand  Shopping    Occasions  +  Offer  relevant  soluBon  +  Engage  along  P2P  =  Increased  traffic  and  Basket  Shop

 

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Trends  driving  growth• Our  lives  keep  gepng  busier• Grazing  /  snacking  replacing  tradiBonal  meals• Snacking  in  convenience  set  to  grow  by  29%  in  

next  5  years• 75%  of  consumers  say  that  they  aspire  to  

healthy  eaBng• ReducBon  in  disposable  incomes  has  increased  

adult  lunch  boxes• Purchases  are  impulse-­‐led,  (though  visits  are  

osen  driven  by  a  primary  purchase  need)• Retailers  stock  ranges  that  meet  consumer  

occasions;  lunch  box,  aser  school,  at  work,  post-­‐work,  on  the  move,  sharing  with  family  /  friends

• Recognised  quality  brands  outperform  the  rest• Shopper  acBvaBons  also  linked  to  key  

occasions

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• ConBnue  to  enhance  and  support  Kerry  Foods’  Category  leadership  in  Chilled  by  providing  retailers  with  insights,  experBse  and  partner  with  them  to  acBvely  grow  their  business

• We  have  done  this  in  the  on-­‐trade  for  S&N  Retail,  and  in  workplace  contract  catering  for  

The  opportunity  in  Convenience

CORE  OCCASIONS  -­‐>  KEY  CONSUMER  GROUPS

WORK  WITH  STORES  TO  BUSINESS  PLAN  AROUND  THEIR  STORE’S  KEY  GROUPS

ACTIVATION  PLAN  TAILORED  TO  STORE

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Our  Approach

To  understand:

• What  your  vision  is

• Where  you  have  got  to

• How  you  work  with  your  customers  /  structure  /  resource

• Where  you  believe  that  you  can  make  a  difference

• What  role  technology  can  play

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Occasion  led  à Ac-va-on

• Work  with  retail  partners  to  give  store  managers  the  right  tools  /  templates  to  grow  their  sales  of  chilled  foods

• They  work  with  your  sales  team  and  their  line  management  to  select  the  core  occasion-­‐based  consumer  groups  from  your  definiBve  list

• We  create  business  planning  templates  that  can  be  adapted  to  every  store• Plans  show  how  to  set  targets  for  a  realisBc  incremental  sales  uplis,  which  is  agreed• The  plan  helps  them  to  create  the  right  ac8va8on  plan  for  those  key  consumer  

groups  /  occasions• AcBvity  to  a  certain  value  (depending  on  that  customer’s  budget,  and  the  size  /  

opportunity)  is  then  selected  /  adapted  from  a  generic  matrix• Gives  you  control  and  economies  of  scale

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 Business  planning  tools                    Retailer  Compliance

• IncenBves  and  rewards  for  performance  versus  targets

• Regular  review  of  performance  /  results  to  date

• Plan  to  cover:     Merchandising  &  Display;  planograms,  signage,  Hotspots,  occasion  drivers,       ease  of  shop     Quality;  Freshness,  Cleanliness,  Equipment     Price;  VFM     PromoBon;  Occasions,  seasonal,  support  naBonal  on-­‐packs

• Measured  /  monitored  by  merchandisers  or  mystery  customers  where  possible

Monday, 8 July 13

Contact details:Neon Marcomms Ltd

12 Melcombe PlaceMarylebone

London NW1 6JJTel 0203 4273232

email nick@neonmarcomms.com

Planning The Path to Purchase

Monday, 8 July 13