maximising npd through understanding shoppers prepared by: emilie coles - director, tns magasin...
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Maximising NPD through Understanding ShoppersMaximising NPD through Understanding ShoppersPrepared By: Emilie Coles - Director, TNS MagasinPrepared By: Emilie Coles - Director, TNS Magasin
March 2009March 2009
© Copyright TNS 2007
create the idea
ATL
experience
CONSUME
As an industry, we excel at creating and building great brands!
© Copyright TNS 2007
86% of npd
fails
within one year
Source: ac nielsen
I don’t need to tell you……
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create the idea
ATL
find and buy!
STORE
experience
CONSUME
We don’t always take into account the store……
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Shoppers do not always find what they are looking for, let alone what they are not looking for!……
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Getting new products to stand out is a
challenge!
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If life wasn’t difficult enough, we are in a
recession!
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What impact is this having on Food and Drink?
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consumer confidence and sentiment already heavily affected…
40
50
60
70
80
90
100
110
120M
ay-0
4
Au
g-0
4
No
v-04
Feb
-05
May
-05
Au
g-0
5
No
v-05
Feb
-06
May
-06
Au
g-0
6
No
v-06
Feb
-07
May
-07
Au
g-0
7
No
v-07
Feb
-08
May
-08
Co
nsu
me
r C
on
fide
nce
Source: TNS / Nationwide Consumer Confidence Index*Since May 2004 (Not seasonally adjusted)
Consumer Confidence Index
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…but the sentiment is not hitting food yet….
20.3 19.9
17.0
10.3
8.8
6.7
4.13.5 3.1
0.8
18.5
12.5
10.7 10.511.3
12.4
4.9 5.46.8
3.0
Eat
ing
out
Clo
thin
g &
Fo
otw
ea
r
Alc
ohol
&T
oba
cco
Mus
icE
nte
rtai
nm
ent
Sky
TV
Mob
ile p
ho
ne
Leis
ure
fac
ilitie
s
Ho
usin
g/
hous
eho
ld b
ills
Fo
od &
dri
nk
Tra
nsp
ort
/P
etro
l
He
alth
/P
erso
na
l Car
e
1st choice 2nd choice
We asked: ‘How would you cut back on spending?’
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4.7
9.2
6.0
-9.2
6.7
3.2
12.9
-9.3
5.9
10.8
4.9
-8.5
2.3
8.6
-2.9
-27
Multiples
Discounters
Tesco/JSconvenience
High Stconvenience
Total
Destination
Baskets
Trolley
‘High St convenience’ = indpendents, symbols, Wilkinsons, chemists, greengrocers etc.
High street convenience is losing out...
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-20000 -15000 -10000 -5000 0 5000
High St Conv Basket
Tescojs Conv Trolley
Tescojs Conv Dest
High St Conv Trolley
Mults Dest
Disc Dest
Tescojs Conv Basket
Disc Trolley
Disc Basket
Mults Basket
Mults Trolley Net switching - Spend
8 weeks ending 10 Aug 2008 Expected
As shoppers switch to Hypermarkets
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-15000 -10000 -5000 0 5000 10000 15000 20000 25000
High St Conv Dest
High St Conv Basket
Tescojs Conv Trolley
High St Conv Trolley
Tescojs Conv Basket
Mults Dest
Tescojs Conv Dest
Disc Dest
Mults Basket
Disc Basket
Disc Trolley Net switching - Spend
8 weeks ending 10 Aug 2008 Expected
And Hypers lose to discounters…
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65
4
-5
-9-10
-8
-6
-4
-2
0
2
4
6
8
Budget(Median -75%)
Standard(Median -25%)
Good (Medianprice)
Premium(Median +25%)
Super Prem(Median +75%)
The ‘Budget’ price band sees greatest growth rate this year – signs of shoppers trading down…
Gro
wth
in R
ST
sa
les
(Pa
cks)
© Copyright TNS 2007
Private brands and exclusive products generate between ¼ to almost ½ of sales for some leading retailers
And are growing more than 2x as fast as all food sales in recent years
Estimated Share of Sales from Private Label
Sources: Company reports, PLMA, Private Label magazine, and other trade press research.
Loblaws(Canada)
Safeway Albert-sons
Kroger Meijer A&P FoodLion
35%
29%
17%
25% 25%23%
17%
Target Tesco
46% 45%37%
Wal-Mart
Private label share is growing…and will be a threat
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100 100 98
106 10599 100 97
100 101104 104
108112 115 115
100 98 9693
103 105
113
98
fmcg total2)
100110 112 113 115
127131
248
recession
What is the reaction of industry and trade on advertising spend ?market leaders are cyclical and retailers anti-cyclical
advertising spend 2001=100
2001 2002 2003 2004 2005 2006 2007 2008
source: Thomson Media Control; Nielsen Media Research 1) 21 market leaders from groups, only TV 2) only TV 3) trade for fmcg, all media without dailies, leaflets 4) REWE campaign 5) Plus campaign 6) REAL-TV-campaign, Lidl TV-campaign
7) 32 premium brands only TV
6/
premiumbrand7)
5)
marketleader1)
retailers3
)
I II III IV108 99 95 87market leaders reduceadvertising spend – especially in the2nd half of the year
4)
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what does this mean?
Need to prove role of brands
in-store & maximise our
spend!
Trading down to private label
O.L GrowsHome
Purchase
Less brand power ATL
storeUnderstand Shoppers!
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what are we dealing with in-store?
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80% shopping is
done in beta mode…
sub conscious
low involvement
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this makes it difficult for NPD to have real
cut though
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Shopper principles for successful
NPD1. Use a consistent visual cue TTL
2. Launch in the right place in-store and on shelf
3. Activate using the right mechanics at the right time
4. Ensure pack stands out/is recognisable
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1. Create a visual cue that can be
communicated TTL
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a visual cue could could be…..
logo
shape
icon
colour
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a visual cue links short term and long term memory
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Establish what the
visual cue is for the brand and communicate
this in the entire campaign
Need
Purchase
Home
Purchase
Visual Cue
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Gillette Fusion:
visual trigger – orange & blue = stand out TTL
Press (lads mag)
TV
in-store
on-pack
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create the idea
Find and buy!
Experience
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create the idea
Find and buy!
Experience
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2. Launch NPD in the
right place in-store
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There are hot and cold spots in stores
Store penetration should influence where we
launch new products COLD
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Taking into account mindset as well…
Great traffic
Great location?
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Two thirds of passingtraffic will not interact
Gondola ends offer a prime location for new product
launches
This space could be better utilised
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Doesn’t have to be so complicated
Shopper flow
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Launch NPD in the right place on shelf
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Most categories have a visual hot spot on the fixture known as the “diamond”
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This is driven by eye movement …….
We look 15-30 degrees downwards, search
Horizontally, in a 1-2 m vision cone
1-2 metres
SEARCH HORIZONTALLY15-30 degrees
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The diamond occurs around signpost brands……
signpost
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Locate NPD in the diamond hot spot to gain visibility
signpostNPD NPD
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Support further with on shelf highlighters – e.g picture framing
signpostNPD NPD
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3. Activate NPD in the
right place at the right time
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Is this the right place?
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Eye Level??
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Content relative to time …
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Right format right content?Babylicous
1
2
3 4 5
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Right format, right content?
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Right format, right content?
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Visit/PurchaseVisit/Purchaseon Impulseon Impulse
Planned Planned to SKUto SKU
High Engagement/Time SpendHigh Engagement/Time Spend
Low Engagement/Time SpendLow Engagement/Time Spend
Confusion/Complex Decision
Auto PilotMilk
Semi-ImpulseCleaning
Involving/EngagingSkincare
NPD execution needs to take account of category roles
Yoghurts
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Need
Purchase
Home
Purchase
Role of the touchpoints for new product launch will change depending on the category …..
T.V & PressDoor DropsCoupons
Engaged Audience
Dis-Engaged Audience
Simple visual cuesLinking to ATLClear signpostingProduct Stand Out
Pre-store
shop the store
shop the category
Functional Benefits
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Need
Purchase
Home
Purchase
Role of the touchpoints for new product launch will change depending on the category …..
T.V & PressDoor DropsCoupons
Engaged Audience
Engaged Audience
Linking to ATLTheatreCommunicationEducation
Pre-store
shop the store
shop the category
Emotional Benefits
skin
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4. Ensure pack has stand out through strong
colourshape & matches shopping style
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Shoppers recognise products using colour and shape
Over 2/3rds fixations are on colour
General Learning
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Simple, Ownable Colourshape – has stand out
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EngagingSearching for on pack information/education
Staple Commodities
Packaging acts as a signpost
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In Summary…• To maximise the success of new products, we must consider the role
of the store as a touchpoint and how people shop our categories
• There are some clear actions we can take to maximise the success of our launches:
1. Use a consistent visual cue TTL – simple and clear
2.Launch in the right place in-store and on shelf
Gondola end execution
Eye level & signposting
3.Activate using the right mechanics at the right time
Format, content and location
4. Ensure pack stands out
Colourshape
Right cues, right category!
© Copyright TNS 2007
…….Shopper Behaviour Properly Explained.Shopper Behaviour Properly ExplainedTNS MagasinTNS MagasinKings Head PlaceKings Head PlaceMarket HarboroughMarket HarboroughLEICSLEICSemail: [email protected]: [email protected]