potential! explore opportunities’ -...

© GfK 2012 | Take the lead! Explore opportunities’ potential!| 31st May – 1st June, 2012

Take the lead! Explore opportunities’ potential!Daniela Petkova, Sandanski, May 31st – June1st , 2012


Have you met these people?


GDP +1.7%

Inflation +2.0%

2011 a year of sustaining 2010 economy levels despite the European turmoil.

Source: National Statistical Institute-Bulgaria

Real GDP (in %, BGN)

Inflation Rate


Unemploymen

tRate 2011

+10.1%

Net Wages

2011

698 BGN


Unemployment Rate (%)

Monthly 2010 2011

Average net wages, in BGN

Quarterly 2009 2010 2011

2011: High unemployment yet growing wages


2010

Source: GfK Bulgaria - Confidence Barometer January 2012 (N= 1000 respondents)

Recently there has been some recovery in Consumer Confidence but consumers are still not beginning to be more positive about the economic situation

Consumer Confidence Index* Dynamic

*Based on a conjunctive Index score across past / next 12 months HH financial situation, past / next 12 months general economy & current purchasing climate.


What are your household‘s financial expectations for the upcoming 12 months?

Do you intend to buy more, the same or less durables in the next 12 months?

Bulgarian Households expectations for 2012 are still skeptical

More

12%

Less

49%

The Same

14%

Better● Details● …

The Same

43% Worse

34% 9%

Source: GfK Bulgaria - Confidence Barometer December 2011 (N= 1000 respondents)


Bulgarian Households’ financial situation is critical.

We need to borrow in order to cope

We have to touch regularly our savings

We can barely make ends meet

We save a bit

What is your household‘s present financial situation?

11%

3%

65%

15%

0% We save considerably

Source: GfK Bulgaria - Confidence Barometer December 2011 (N= 1000 respondents) – no opinion does not appear

‘High unemployment and lack of confidence in better future have decreased households’ purchase intentions as well as their spending's on non-basic categories


Personal consumption:2011 vs. 2010


‘Contrary to the food basket a significant decrease is observed in categories not satisfying basic needs such as clothing as well as education, entertainment, sport and recreation baskets.


Basket Dynamics(% diff versus previous year – value based)

Dynamics in FMCG basket

Source: GfK Consumer Panel Services; based on monitored FMCG category range

© GfK 2012 | Take the lead! Explore opportunities’ potential!| 31st May – 1st June, 2012 ?High individualism

Growing expectations

More and more complex shopping patterns

Frustration with overwhelming marketing communication

Above 70% decisions made in-store

Decreasing loyalty towards shopping venues

Do we (retailers and suppliers) know

enough to be successful in wining shoppers’ hearts and

…. budgets?

Consumer = Shopper?„If people went to stores only in situations when they needed

something, and if they bought only products they actually needed, trade would go bankrupt very quickly”

Paco Underhill, CEO Envirosell


Do you know these people?


No more “average shopper”…

General market attitudes

Preferences towards purchase venues

Shopping patterns

Lifestyle


No more “average shopper”: Shopper deciphering is as difficult a task as ...

Counting all the black dots on this square...

© GfK 2012 | Take the lead! Explore opportunities’ potential!| 31st May – 1st June, 2012Source: GfK Bulgaria – Shopping Monitor 2012

No more “average shopper”… Segments of shoppers (sizes and dynamic)

“Me” Shoppers

Buying on impulse

Reckless Shoppers

Seeking quality

Savvy Shoppers

Price consciousness

Routine Shopper

Driven by convenience

Gregarious Shopper

Emotionally involved in shopping

Segment sizes in dynamic (2010 vs. 2011)


Who they are? “Me” Shoppers

PRE-PURCHASE: They receive and read leaflets.

They are mobile and use car for shopping

WHERE TO FIND THEM?In hypermarket or discounter formats because of the assortment range and good price quality ratio. Kaufland, Lidl and Billa are preferred shopping places

IN-STORE:They know PLs and purchase them for selected product categories. They are aware of organic foods and buy selected products by them

BASKET SIZE: Prefer to do large purchases.

KEY DRIVERS for the choice of main shopping place:

Good quality of the productsAssortment &variety of products

Good price quality ratio

Shopping Behavior

“I am one of the first consumers shopping for new products launch on the market.”

“I often happen to ‘go wild’ at a store and to spend much more impulsively than planned.”

“I often happen to buy ready to cook food as alternative of meals prepared at home.”

Freshness of the products

Large share aged 20-49


Who they are?

Source: GfK Bulgaria – Shopping Monitor 2012

PRE-PURCHASE: Majority of shoppers check leaflets and do their shopping accordingly

Majority of them do not use car for shopping

WHERE TO FIND THEM? In Discounters and superettes as Lidl, Carrefour and CBA are preferred shopping places.

IN-STORE: promotions influence their purchase decision

BASKET SIZE: They visit and shop from one and the same store and prefer to make smaller purchases.


Quick shoppingWilling & nice personal

Best deal SalesPrice reductions

Long opening hours

Savvy Shoppers

“I tend to calculate the price per liter or kilogram to make the most economy choice.”

“I try to buy products that are offered on promotion at a given moment.”

Aged 50+

Shopping Behavior


“I do most of my everyday shopping at one shop.”

Who they are? Routine Shoppers

PRE-PURCHASE: Majority of shoppers do not receive leaflets

Majority of them do not have car or if they have such don’t use it for purchases. In most of the cases they go to shop on foot.

WHERE TO FIND THEM?In the small neighborhood store, as they prefer traditional trade – counter food store format.

IN-STORE:Don’t know PLs and organic foods. Purchase is just a necessity. Willing to spend less time on it. Change in the store arrangement confuses them and make their shopping difficult

BASKET SIZE:They visit only one store and make mainly small purchases.


Willing & nice personal

ConvenienceProximity to home

Good prices in general

Shopping Behavior

Large share aged 60+“I do not like it when the store layout is changed-as then I feel lost and I do not know where to look for products.”


Who they are?

PRE-PURCHASE: read and shop in accordance with leaflets.

They are mobile and use car for shopping.

WHERE TO FIND THEM?shoppers in hypermarkets and supermarkets. Kaufland, Billa, Fantastiko and Evropa are preferred shopping places.

IN-STORE:buy PLs and organic foods

BASKET SIZE: both smaller and larger purchases as visit different stores but purchase mainly in one


Assortment & variety of the products

Good prices-quality ratio

Shopping Behavior

Pleasant environment

Gregarious Shoppers

“The shopping is pleasure for me.”

“When doing shopping, I happen to consult my partner.”

Large share of people aged up to 39 y.o.

Willing and nice personal


Who they are?

PRE-PURCHASE: don’t read leaflets.

They use car only for larger purchases.

WHERE TO FIND THEM?Traditional trade – counter food store format or supperets.Among the preferred stores for them are CBA, T Market, Magazin 345, shop in the neighborhood

IN-STORE:They know PLs but do not buy them.

BASKET SIZE: both small and larger purchases as in that way they can usually have fresh products.


Good quality of the productsProximity to home or workplace

Good prices of particular products

Shopping Behavior

Freshness of the products

Reckless Shoppers

“When everyday shopping the quality is key priority for me, regardless the price.”

“When shopping, I never use a shopping list.”

Prevail people aged 50+

Speed of checking out

No queues, quick shopping


Estimate potential of the new opportunities

What to be the further steps

Shoppers are moving target. Track your segments in their life-time.

Explore your target segments behavior in the store

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Thank you for your attention!

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