1. Creating added value for the Belgian
based retail customers of LU-Belgium in
order to build stronger and future proof
margins
2. TABLE
OF
- Methodology
CONTEN
-
-
Industry analysis
Recommendations LU & LU retail customers
T
1. Quality
2. In-store experience
3. New product development
4. Pricing
5. Categorisation
6. Competitiveness LU
7. Summary
15. QUALITY
- BDB: 90% chilled bake-off TASTE
- Gira 2010
- Even low-end players (polarisation)
- Taste as purchase criterion
n = 51 n = 100 n = 49 n = 22
Baguettes local bakery Viennoiserie local bakery Baguettes supermarket Viennoiserie supermarket
80 80
70 70
60
60
50
40 50
30 40
20 30
10
20
0
10
0
16. QUALITY
- 80% of viennoiserie @ local bakery TASTE
- In line with in-depth interviews
- Cherry picking
100%
80%
80
60% 64.8 Other
56.2 Carrefour
50
40% Delhaize
Local Bakery
20%
0%
Breads Baguettes Bread rolls Viennoiserie
n = 162 n = 102 n = 162 n = 125
18. QUALITY
- ‘Daily Fresh Bread’ FRESHNES
- Carrefour Hyper / Planet
n = 51 n = 100 n = 49 n = 22
Baguettes local bakery Viennoiserie local bakery Baguettes supermarket Viennoiserie supermarket
80 80
70 70
60
60
50
50
40
30 40
20 30
10
20
0
10
0
19. QUALITY
- ‘Daily Fresh Bread’ FRESHNES
- Carrefour Hyper / Planet
- Freshness on product level
Interest in the indication of baking hours?
5%
15% 22%
n = 108
Totally agree
Rather agree
16%
Neutral
Rather disagree
Totally disagree
42%
20. QUALITY
FRESHNES
Perceived baking method ISB Baguettes
12% 6%
n = 240
Homemade
Freshly delivered by
an industrial bakery
37%
Frozen delivered by
an industrial bakery
45% No idea
21. QUALITY
- Independent samples t-tests FRESHNES
Consumers VS non-consumers
Purchasers VS non-purchasers
Local Bakery VS retail purchasers
No significant differences
22. QUALITY
FRESHNES
Perceived baking method ISB viennoiserie
4%
13% n = 240
Homemade
Freshly delivered by
an industrial bakery
40%
Frozen delivered by
an industrial bakery
No idea
43%
23. QUALITY
- Independent samples t-tests FRESHNES
Consumers VS non-consumers
Purchasers VS non-purchasers
Local bakery VS retail purchasers
People that do not purchase
viennoiserie in retail more often hold the
perception that ISB-viennoiserie is
homemade compared to purchasers.
26. QUALITY
- Cause: Personnel LOOK
- Consistency is key
Do you find product consistency important?
6% 1%
15% 29% n = 241
Totally agree
Rather agree
Neutral
Rather disagree
Totally disagree
49%
27. QUALITY
- Packaging influences look LOOK
Observation:
Bag not always next to product
F2 users paper bags
In-depth interviews:
duality in responses bread bag OK but to large
plastic viennoiserie bag OK
for non-sticky viennoiserie
28. BLISTERS LOOK
THAT CAN
FILLED
BE
SHOPPER
BY
S
7
BREAD BAG
WITH
WINDOW
8 MOTIVATE
PERSONNEL
31. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
32. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
33. EXPERIENCE
INTERIO
- Neutral to negative perception
R
- Revamp of Carrefour Planet
- Independent samples t-test
comparison of interior
attractiveness retail / local bakery
People find the interior of local
bakeries more attractive
38. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
39. EXPERIENCE PRODUCT
INFORMATIO
Negative health perception (dieting)
Stress benefits of bread products (except viennoiserie)
Nutritional value versus cereals
Fiber
Energy supplier
Faster saturation
40. EXPERIENCE PRODUCT
INFORMATIO
- VS local bakery:
lower degree of social interaction
41. EXPERIENCE PRODUCT
INFORMATIO
- Appreciation of extra product information
Ingredients (allergies)
Baking method
Origin 5% 2%
26%
24%
n = 107
43%
42. EXPERIENCE PRODUCT
INFORMATIO
DISPLAY
PRODUCT
12
INFORMATION
43. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
44. EXPERIENCE BREAD
- Bread odour = No. 1 SCENT
- Stimulation of impulse purchase
- Enhance freshness perception
- Biggest reminiscent sense power
3% 1%1% n = 241
13%
82%
45. EXPERIENCE BREAD
SCENT
… But bread scent is less present in retail
Totally agree
Rather agree
Neutral Local bakeryn = 154
Supermarket n = 109
Rather disagree
Totally disagree
0.00 20.00 40.00 60.00
46. EXPERIENCE BREAD
SCENT
13 ISB
STRONGER
BREAD SCENT
IN
HOW
- Bread scent diffusers
- One oven in the middle of the ISB department
- Ventilation system which transfers bread scent
- Add scent to the bread packaging
47. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
48. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
49. EXPERIENCE PRODUCT
AVAILABILIT
- Respond to the more demanding shoppers:
Bake-off flexibility
In-store audits: some take advantage of bake-off
High labour cost
- In-depth interviews:
Neutral to annoying if no product availability
50. EXPERIENCE PRODUCT
AVAILABILIT
Lack of bread availability is most annoying (84%)
n = 185
Viennoiserie
Yes
Baguette
Neutral
No
Bread
0 10 20 30 40 50 60 70 80 90
51. EXPERIENCE PRODUCT
AVAILABILIT
Planning of baguette and viennoiserie purchases
Yes
n = 109
Neutral Local bakery
Supermarket
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
53. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
54. EXPERIENCE RECIPES O
- Spotted at local bakeries PACKAGING
- Increase packaging attractiveness
- Possibility for cross-promotions
6%
13%
13%
n = 106
35%
33%
55. EXPERIENCE RECIPES O
PACKAGING
15
INTRODUCE
PACKAGING
RECIPES
56. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
57. EXPERIENCE SELF
SCANNING
- Successfully launched
- In-store audits
Failures to recognize bar codes: printing quality
Lack of bar codes
- Self-payment issue Delhaize
Condition 1: only purchase non-barcoded goods
Condition 2: no loyalty card
Inconvenient screen overview when solved
58. EXPERIENCE SELF
SCANNING
Shoppers only buying bread products
when visiting supermarkets
1%
n = 109
25%
Daily
Weekly
53%
Monthly
Less than monthly/Never
21%
59. EXPERIENCE SELF
SCANNING
16
IMPROVE
SELF
SCANNING
- Better structure of the selection screens for bread products
- Updated picture catalogue
- Quality printers at each retailer
- Check barcode availability
60. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
61. EXPERIENCE
GRIPPERS
- In-store audits: no usage or struggling
- In-depth interviews: 2 extremes in opinion
- Survey: no usage for bread rolls
n = 18
44% 45%
Both viennoiserie and buns
Unused
Only for viennoiserie
Only for buns
11%
62. EXPERIENCE
GRIPPERS
17GRIPPERS
IMPROVING
- No abolishment
- Increase usability:
Hole in the packaging and hook at each shelf
Gripper with rubberized handle
- Increase hygiene: cleaning on a daily basis
- Look outside of the gripper-box:
Primary shoppers Delhaize and Carrefour: pensioners
63. IN-STORE EXPERIENCE
Interior
Baking hours
Self-scanning
Use of grippers
Product availability
Product information
Bread scent
Reservation of bread products
Recipes on packaging
64. EXPERIENCE
RESERVATIO
- Spotted at local bakeries and Panos
- No interest from interviewees
Difficult to mention pick-up time 3% 5%
Importance of autonomy
13%
42%
n = 108
37%
67. NPD
VARIETY
NEED
I like to try out new products
2% 12%
17%
n = 237
Totally agree
Rather agree
23% Neutral
46% Rather
disagree
68. NPD
VARIETY
For which products do you want NEED
more variety?
30% n = 141
20%
% of non consumers
wanting more variety
10%
% of consumers
0% wanting more variety
69. NPD
VARIETY
- Variety from a retail point of view
NEED
Baking instruction
PLU-number
Logistical adaptation
Low levels of in-store testing of new ISB-products
Monthly variation not possible
71. NPD
HEALTH
Importance of health
when buying products
Viennoiserie
Baguette
None
Bread rolls
Bread
n = 241 0% 20% 40% 60% 80% 100%
72. NPD
- White whole grain bread HEALTH
incredible for Belgian market
- Increase in the number of food allergies
- In-store personnel indicates growing demand for
functional bread products
74. NPD
- In-depth interviews indicate CHILDRE
children have an influence on ISB-
purchase behavior. N
In 2004, $330 billion was spend due to pester
Power (children 4-12)
Introduction of cute looking ISB-products
78. NPD
BAGUETTE
Purchase intention bread products?
% top-two box answers % top-box answers
Ciabatta with real olive oil
Baguette with dried tomatoes…
Roll with Provencal herbs
One person bread
Soft whole-wheat or multigrain…
Baguette with tigerdecoration
Fresh pannini roll n = 241
0 5 10 15 20 25 30 35 40 45 50
79. 22 1. Ciabatta
2. Dried tomato basil
3. One person bread
80. BAGUETTE
Custom tables:
Significant difference between
shopper demographics and purchase intentions:
One-person bread Singles, students
Baguette with dried tomatoes and basil Students, HH with kids
Ciabatta with real olive oil Students, singles, HH w kids
Roll with Provencal herbs Students
81. Purchase intention viennoiserie?
VIENNOISERI
Chocolate viennoiserie with more…
Croissant with richer butter taste
E
Chocolate viennoiserie with white…
Viennoiserie with apple-cinnamon
Croissant with yellow pudding
Viennoiserie with raspberry jam
Viennoiserie with banana
Viennoiserie with strawberry jam
Viennoiserie with honey
Viennoiserie with orange/chocolate
Viennoiserie with caramel
Viennoiserie with creme brulee
Viennoiserie with gingerbread
Viennoiserie with lemon
0 5 10 15 20 25 30 35 40 45 50
% top-two box answers % top-box answers
82. 23 1. With more
chocolate
2. Richer butter taste
3. White chocolate
83. VIENNOISER
E
Custom tables:
Significant difference between shopper
demographics and purchase intentions :
With more chocolate Singles, students, HH with kids
With richer butter taste Students and HH with kids
With white chocolate Singles, Students, HH with kids
85. PRICING
- Polarisation of the market; Economic downturn
- Retail price adjustments according to the competition:
Colruyt no viennoiserie
- Puratos: price is no purchase criterion
≈ survey
cherry-picking
- In-depth interviews:
Not price-conscious, only in local bakery
Conscious of price differences
Logic if price differences within viennoiserie
86. PRICING
Higher willingness to pay for filled viennoiserie
7% 14% 9% 1% 14%
6%
25%
29%
44%
51%
Filled viennoiserie is worth Logic if price difference
more than non-filled n = 71 within viennoiserie
87. PRICING
PRICING
… But does retailer want to increase price level?
- Retailer perspective:
Operational difficulties
Problem at cashier
Cross-promotional issue
Hard but feasible (BDB)
Requirement: quality increase
90. CATEGORISATION
- Retailer perspective Shopper perspective
- Puratos study: remodeling Wallmart ISB
- In-depth interviews:
Choice overload
Variety need
Mere categorisation effect
- ISB responsible people:
Undetailed planograms, both in F1 and F2
Gut feel or randomly chosen structure
91. CATEGORISATION
- Independent samples t-test:
People believe that the clarity of the product
offer is significantly lower in retail.
- Product labeling: sometimes unclear or wrong
- Need for better categorisation of the ISB offer
When comparing top answers (items which scored 4 & 5 out 5 most often) we can clearly see taste and freshness are the main purchase criteria driving people to the local bakery for their viennoiserie and baguettes purchases. Linking this information to the graph below, which shows us that 80% of the respondents still opt to go to the local bakery for their viennoiserie purchases, indicates that the current quality of the viennoiserie offer within ISB might benefit from an upgrade. When looking at baguettes, we can see that that taste is a smaller driver compared to viennoiserie at a local bakery. Furthermore, we notice that taste is a bigger purchase driver for baguettes than viennoiserie in a supermarket.
When comparing top answers (items which scored 4 & 5 out 5 most often) we can clearly see taste and freshness are the main purchase criteria driving people to the local bakery for their viennoiserie and baguettes purchases. Linking this information to the graph below, which shows us that 80% of the respondents still opt to go to the local bakery for their viennoiserie purchases, indicates that the current quality of the viennoiserie offer within ISB might benefit from an upgrade. When looking at baguettes, we can see that that taste is a smaller driver compared to viennoiserie at a local bakery. Furthermore, we notice that taste is a bigger purchase driver for baguettes than viennoiserie in a supermarket.
Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
Purchasers van het product, nietvn product binnen retail
Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
We see that 58% of the bread consumers indicate they like to experiment with new products within the ISB-department. When asking more specifically if shoppers are looking for more variety within the supermarket's ISB department 44% of the supermarket shoppers reports to be looking for some kind of additional variety.
The graph below shows that on product level supermarket shoppers are especially looking for variety within the viennoiserie and bread category (approximately 26% and 19%). One other remarkable finding is that the percentages of ISB-shoppers that are non-consumers of a certain product seem to be looking for more variety within the baguettes. Enlarging the baguette range should therefore have the biggest impact in attracting new baguette purchasers.
SPECIALITY vs. LOCAL PRODUCT
SPECIALITY vs. LOCAL PRODUCT
SPECIALITY vs. LOCAL PRODUCTONE PERSON BREAD => LOWER AVERANGE => EXPLAIN
SPECIALITY vs. LOCAL PRODUCTONE PERSON BREAD => LOWER AVERANGE => EXPLAIN
: improve the overall performance of a group of products shopper decision tree
How?Categorisation exercise interviewees
Bread loaves: 1st level: Basic breads (white versus brown) Special breads (Bio-, grain- and sweet breads)2nd level: Shape (round, square, special)
Baguettes:1st level: basic versus special baguettes2nd level: white versus brown within the basic baguettes, ciabatta versus with herbs within the special baguettes.
Baguettes:1st level: basic versus special baguettes2nd level: white versus brown within the basic baguettes, ciabatta versus with herbs within the special baguettes.
Bread rolls:1st level: basic versus special bread rolls2nd level: shape (round, oval, square)
Bread rolls:1st level: basic versus special bread rolls2nd level: shape (round, oval, square)
Viennoiserie:1st level: Based on ingredientBasics: chocolate, raisins, butter, cream, mini viennoiserieSpecials: pecan nut, speculoos…Special sweets: cakes, donuts, beignets, muffins, etc.
Viennoiserie:1st level: Based on ingredientBasics: chocolate, raisins, butter, cream, mini viennoiserieSpecials: pecan nut, speculoos…Special sweets: cakes, donuts, beignets, muffins, etc.
Viennoiserie:1st level: Based on ingredientBasics: chocolate, raisins, butter, cream, mini viennoiserieSpecials: pecan nut, speculoos…Special sweets: cakes, donuts, beignets, muffins, etc.