stephen schueler: non-food as a business engine
TRANSCRIPT
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Non-food as a business Non-food as a business
engine engine
in Food retailin Food retail
Stephen Schueler Procter and Gamble
4 Feb 2011
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Who wants to increase your market
share?
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What determines your ability to drive market
share?
YOUR SHOPPER!
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Top drivers to increase your market
share:
Attract NewShoppers
Attract NewShoppers
Build Loyalty of Existing Shoppers
Build Loyalty of Existing Shoppers
Win with High Spenders
Win with High Spenders
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WHY NON-FOOD CATEGORIES WHY NON-FOOD CATEGORIES
ARE IMPORTANT TO WIN ARE IMPORTANT TO WIN
WITH SHOPPERS?WITH SHOPPERS?
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1.Non-Food has strong potential with
your existing shoppers
food
Dairy 59
Juice 49
Cheese 44
Biscuits 46
non-food
Hand Dish 28
Fem Care 31
Shampoo 32
Dentifrice 34
Size of the prize = 400 mln.$ for HM channel
% of store shoppers buying category in this store (Hypermarkets)
% of store shoppers buying category in this store (Hypermarkets)
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2. Non-Food helps shoppers to choose
your store for Bulk Shopping
Bulk shopping Refill shopping
Laundry & Home Care Bakery
Coffee & Tea Milk& Dairy
Shampoo & Shower Fruits & Vegetables
Toilet Paper & Towels Soft drinks& Juices
Fem Care Cheese
Oral Care Fresh Meat & Poultry
Fresh Meat & Poultry Snacks
Cheese Toilet Paper & Towels
Soft drinks & Juices Coffee& Tea
Fruits & Vegetables Oral CareNon-food categories are highlightedNon-food categories are highlighted
Top powerful categories that define shoppers’ satisfaction
by the store:
Value of Bulk trip = 4.7x Value of Refill trip Value of Bulk trip = 4.7x Value of Refill trip
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How to leverage non-food to How to leverage non-food to
win Your Shopperwin Your Shopper
Three Business Ideas:1. Improve Shopping
experience in Beauty Care.
2. Leverage Innovation in Non-Food − Attract new Shoppers− Get disproportionate share by
being first with new item.
3. Win with Young Families – Heavy Spenders
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… win her man
Importance of Russia
WE
Being attractive to men, %
90 41
Having stylish feminine clothes, %
89 57
She needs to be beautiful to…
1. Russian consumers are “Thirsty for
Beauty”
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P&G is committed to develop Beauty business
in Russia• Plays in 12 out of 13 Beauty Categories• Market leader in 5 out of 12• Focus on Category Development to drive
basket size
HAIR CARE EXAMPLE: Conditioners /Treatments – significant growth potential
vs. Shampoo behind increase in penetration and
consumption
• Plays in 12 out of 13 Beauty Categories• Market leader in 5 out of 12• Focus on Category Development to drive
basket size
HAIR CARE EXAMPLE: Conditioners /Treatments – significant growth potential
vs. Shampoo behind increase in penetration and
consumption
45 5288
335
0
50
100
150
200
250
300
350
Penetration CDI
CONDITIONERS
SHAMPOOS
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P&G is committed to develop Beauty business
in RussiaHow to capture Conditioner/treatment growth potential:
1. Conditioner/treatment driven innovation
2. Shelving by collection: co-location of Shampoo/Conditioner/Treatments
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Beauty Categories will are the most
sensitive to shopping atmosphere and
new innovation• Beauty Department Objective within Food
retailer: Create better Shopping Environment:
• Enjoyable/emotional• Spends more time/ browsing • Trying new things
• Beauty Department Objective within Food retailer:
Create better Shopping Environment:• Enjoyable/emotional• Spends more time/ browsing • Trying new things
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2. Attract new shoppers via
innovation
45% of Russian 45% of Russian shoppersshoppers
are experience-driven. This means that they:• enjoy shopping and like shop around before making a purchase;• need a comfortable shopping experience;• are driven by new items.
are experience-driven. This means that they:• enjoy shopping and like shop around before making a purchase;• need a comfortable shopping experience;• are driven by new items.
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Non-food suppliers are investing heavily
in TV
creating strong demand for new
productsTop 10 advertisers, GRPs
2009 2010
Food 289 655 311 713
Non-Food 705 404 768 122
1 Procter & Gamble 94 255 121 511
2 Henkel Group 56 036 65 010
3 L'Oreal 74 592 64 457
4 Unilever 57 651 53 005
5 Reckitt Benckiser 48 764 47 458
6 Beeline 26 858 32 665
7 MTS 29 159 27 453
8 Megafon 27 265 25 278
9 Kalina 13 952 21 704
10 Colgate-Palmolive 17 938 21 419
Period: Jan-Dec 30" 18+ Russia
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1. In-Store Support – massive in-store communication linked to TV
2. On-line announcement of new product launches/marketing campaigns
Get Disproportionate share of New
Items!
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3. Winning with Young FamiliesChild birth is a point of change in values Now baby
is #1, #2 and #3 spending priority
Now she has less time in her new role: =>she visits less stores and shop more in E-commerce
(Intensity Ind=124);
Now she has less time in her new role: =>she visits less stores and shop more in E-commerce
(Intensity Ind=124);
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Spending Index Total Russia Modern Trade
Young parents 113 112
Mature parents 120 101
Parents with teenagers 106 94
Families w/o children 121 97
Adults 87 108
Seniors 81 86
Families spend more, especially younger ones… especially in Modern
Trade
GFK, 2009GFK, 2009
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Baby Diapers is the biggest category
in moms basket
Moms with 0-36 babies, Shoppers of Hypermarkets
1HY 10, HM shoppers
Moscow
Russia w/o
Moscow
Diapers & Wipes 32,9 42,7
Baby Food 27,3 38,2
Clothes & Shoes 15,7 5,6
Toys 4,9 4,0
Baby Laundry 5,7 4,5
Cosmetics & Hygiene 5,3 3,8
Other 8,1 1,1
GFK, 2009GFK, 2009
• Baby Diapers is the Destination categories for Young Moms • Shoppers Basket is 4x times bigger in case diapers are in
• Baby Diapers is the Destination categories for Young Moms • Shoppers Basket is 4x times bigger in case diapers are in
Total Basket Spending on Baby, % in value
Total Basket Spending on Baby, % in value
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Help her in the new role of being a motherPampers Charity program
Partnering with Retailers and leading websites
Pampers Charity programPartnering with Retailers and leading websitesP&G donates 1 vaccine
for UNICEF with every
purchased pack of
Pampers
Communication tools:
- Internet (mail.ru)
- In-Store
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Let’s work together to win with your
shopperLeverage top non-food categories to win with your consumer:Bring in New Shoppers:
•Co-Marketing programs (e.g. Pampers Unisef)
•E-media partnership with Manufacturers
Drive Loyalty of Existing Shoppers:•Drive Basket via regimen Beauty Purchases
•Novelties exploitation in-Store;
•Improve Shopping Experience on Beauty
Attract Heavy Spenders•Win with Young Families by leveraging Diapers as destination
category
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THANK YOU