retail & shopper - tns canada

Retail & Shopper

Retail &Shopper

TNS Approach to Shopper

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TNS 2010

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Over 1400

shopper projects completed in 2009, in over 40

countries, with the world’s leading consumer companies and the major retailers

TNS is the world’s leading shopper research agency

Retail &Shopper

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The TNS proposition is further strengthened by partnerships with

sister WPP companies, including virtual reality experts Red Dot Square

Solutions and retail intelligence and consultancy specialists Kantar Retail.

Specialist acquisitions in US, UK and China and over 30 years of

shopper expertise and knowledge are backed by an unrivalled range of leading techniques and an integrated approach to providing solutions

Our shopper practice is led by specialists

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Issues and Context

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More than ever the store is an essential location to influence brand purchase decisions

Media fragmentation has made it harder to reach brand consumers on mass

Over 40% of decisions are made at the point of purchase

Investment in new product development, new technology, brand building activity is all wasted if a shopper doesn’t select your product in-store

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Shopper fragmentation

Increasing retailer diversity

Promotions don’t cause long-term effects

The retail environment is becoming more challenging

Retailers’

demanding category growth

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Today’s new marketing challenge

BUY

SELL

WANT Consumer

Shopper

Retailer3

1

2

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We observe research shifting from consumer to shopper

Stra

tegi

c ad

vant

age

Tact

ical

adva

ntag

e

incubating scaling culturally embedding

Small scale impact, as ad hoc programs drive positive return

Growth in impact as scale programs; also growth in costs

Significant margin improvements and new growth due to integration / optimization

Tenure of shopper marketing effort

Source: 2008 GMA/Deloitte Shopper Marketing Study

62% of FMCG businesses have a budget for shopper research

78% of FMCG clients will increase their shopper budget over the next 3 years

53% of retailers say that shopper is a strategic growth enabler

Source: The Hub 2010, Online survey in developed markets of business stakeholders

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Brand Supplier

Category Advisor

Category Captain

Strategic Partner

Brand Tactics

Category Tactics

Category Strategy

Store Layout

Increased insight requirement

TNS work with many client organisations who are at different stages of shopper understanding & sophistication

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The Path to Purchase Toolkit

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Category experienceMerchandising

AssortmentAt fixture decisions

Need

Purchase

Store layoutShopping route

Flow and adjacenciesIn-store comms

Shopper segmentationChannel choice

Retailer choiceShopping missions

Category definition

In-store marketingPackaging

Promotions

TNS helps clients influence shopper behaviour and decisions all along the “Path to Purchase”

Shop the Store

Shop the Category

Select the Product

Pre-store Context

TNS has further developed the concept of the Path to Purchase -

the journey every shopper takes -

beginning with the idea of going shopping and ending with a purchase.

Our approach is based upon 3 fundamental beliefs.

1. Improving conversion on the Path to Purchase is key to success

2. Shoppers and consumers have different behaviours, needs and motivations

3. Observational techniques must be used to understand shopping behaviour properly

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Test new in-store concepts to find the best approaches for improving shopper conversion

Test new in-store concepts to find the best approaches for improving shopper conversion

Understand the shopper at each step on the Path to Purchase and assess the effectiveness of in-

store levers in helping to convert shoppers to purchasers

Understand the shopper at each step on the Path to Purchase and assess the effectiveness of in-

store levers in helping to convert shoppers to purchasers

3. Test

Monitor the shopper response to changes in the retail environment

Monitor the shopper response to changes in the retail environment

4. Monitor

The Path to Purchase Toolkit

Integration of insights to create in-store solutions that drive brand and category performance

Integration of insights to create in-store solutions that drive brand and category performance

1. Diagnose

2. Create

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Understand the shopper at each step on the Path to Purchase and assess the effectiveness of in-store levers in helping to convert shoppers to purchasers

Pre Store ContextCategory Definition & SegmentationCategory Usage OccasionsShopping MissionsShopper SegmentationReasons for Store Choice

Shopping the Store

Shopping the Category

Select the Product

Shopper Behaviour, Motivations & Decisions

Effectiveness of

In-store Levers

Store Layout MerchandisingAssortmentPOS & In-store MarketingPackagingPromotions & Price

Shopper Behaviour, Motivations & Decisions

Effectiveness of

In-store Levers

1. Diagnose

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Concept Tests

On-Line Shelf Test

Virtual Reality

Controlled Store Tests

Concept Tests

On-Line Shelf Test

Virtual Reality


Pre-Store ContextQualitative GroupsOn-Line Interviews

Shopping the StorePathTrackerExit Interviews

Shopping the CategoryShopnographyFilming or ObservationsIn-Store Interviews

Select a ProductEye-TrackingQualitative Interviews

Pre-Store ContextQualitative GroupsOn-Line Interviews




3. Test

RFID PathTracker

Worldpanel

Mystery Shopping

Observations

In-Store Interviews

RFID PathTracker

Worldpanel

Mystery Shopping

Observations

In-Store Interviews

4. Monitor

1. Diagnose

The Path to Purchase Toolkit Techniques

Workshops

Super Shoppers

Workshops

Super Shoppers

2. Create

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Pre-Store ContextQualitative GroupsOnline Interviews




Pre-Store ContextQualitative GroupsOnline Interviews




1. Diagnose

The Path to Purchase Toolkit Techniquesonline

qualitative

Path Tracker

Observation

Eye tracking

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Concept Tests

Online Shelf Test

Virtual Reality


Concept Tests

Online Shelf Test

Virtual Reality


3. Test


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RFID PathTracker

Worldpanel

Mystery Shopping

Observations

In-Store Interviews

RFID PathTracker

Worldpanel

Mystery Shopping

Observations

In-Store Interviews

4. Monitor


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The Path to Purchase links to commercial needs …

Select the Product

Shop the Category

Pre-Store Context

Shop the Store

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Commercial Challenge Research Questions to Be Answered Path to Purchase Toolkit

How do we create strategies to meet shopper expectations for each channel and mission?

How do shoppers define the category and what is the competitor set?How should products be grouped and segmented to appeal to shoppers?How do shoppers articulate features and benefits of different products within the competitor set and thus choose between them?What consumer needs are being met by different products? What are key factors driving store and channel choice?What are the main shopping missions for the category? How can category shoppers be targeted?

How do we optimise store design to improve category exposure?

What are the prevailing shopping pathways around the store?How many shoppers Visit, Stop and Purchase within each aisle?Which shoppers are visiting which categories How does conversion and shopper path vary by mission or shopper type?Where are the hot and cold zones in terms of traffic volume?Across the shopper base, and by mission or shopper type how do these vary?How hot are the promotional gondola ends and promotional aisles?Are shoppers more likely to avoid the aisle if there is a promotional gondola on the end?

How do we convert more shoppers to purchasers?

•

How easy is it for shoppers to find the category in store?What is the level of conversion to purchase for the category? What are the barriers to purchase for the category?How do shoppers interact with the fixture and products? What is the level of pre-planning that exists in the category?What choices and decisions are made at the shelf?What promotions influence purchasing behaviour and decisions?Why are shoppers shopping the category?What are the perceptions of the category layout?What are the purchase triggers and drivers?

How do we increase our share of shopper selections?

Where on the fixture do people look? Where are the visual hot spots?What are the visual cues shoppers are using to navigate the category? Where should products be positioned to maximise visibility?What packaging has most stand out on shelf?What POS or in-store communication is actually seen?What promotional activity is actually seen and what are shoppers perceptions of recalled promotions?How effective is each element of the existing in-store marketing?What messaging is prompting an action in-store?

… and research questions

Select the Product

Shop the Category

Pre-Store Context

Shop the Store

Retail & Shopper

Contact TNS for more information

Retail & Shopper

retail & shopper - tns canada

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