Breakthroughs in understanding in-store behaviour
As in-store marketing grows in importance, the need to plan and evaluate becomes ever greater. This session introduces advances in the measurement of behaviour using observational techniques, loyalty cards and survey data. These collaborative initiatives allow in-store to be understood and optimised as an integral component of the marketing mix.
Speakers: Sandy Livingstone, BMRB ; Joan Francolini, Donna McCabe, Kraft Foods; Koos Berkhout, LMG; George Wishart, Nielsen.
Facilitated by Kantar.
2. Shopper marketing budgets are growing….
CAGR marketing budget growth
Total 2%
Shopper (manufacturer) 21%, (retailer) 26%*
…… creating a demand for better understanding of shopper
behaviour
*Source : 2004-2010 estimated marketing budgets, source GMA/Deloitte Consulting LLP 2007 Shopper Marketing Study Results (Deloitte.com)
2
3. Agenda
• Development of a standardised in-store behavioural metric
• New approaches to collaboration in manufacturer / retailer shopper data
sharing
• Situating shopper behaviours within 360° consumer understanding
3
4. P.R.I.S.M
A Revolutionary, New In-Store
Behavioural Metric
Presented by
Donna McCabe, Kraft Foods
George Wishart, The Nielsen Company
4
5. Dramatic shifts are taking place in the
consumer marketplace…
Shortcut to ARC In-Store Jan '08Pt1.lnk
video #1
5
6. Effective Shopper Marketing is crucial
According to Millward Brown:
“In every CPG/FMCG category, the point of
purchase is the critical moment of truth when a
consumer facing a shelf of competing brands
makes a decision to part with hard-earned
money for just one of them.”
Nigel Hollis, Millward Brown, July 2006
6
7. So, what is “Shopper Marketing” ?
The GMA (Grocery Manufacturers Association)
defines Shopper Marketing as:
• All marketing stimuli,
• developed based on a deep understanding of
shopper behavior,
• designed to build brand equity,
• engage the shopper (i.e., consumer in ‘shopping
mode’),
• and lead him/her to make a purchase
GMA (Grocery Manufacturers Association) & Deloitte Consulting
7
8. The paradigm has shifted from….
The relationship has changed, from…
Consumers
Retail
Brand
8
9. To a more integrated view….
NT
PR
ME
EF
Consumer
ER
GE
EN
GA
Shopper
C
EN
E
Retail Brand
LEVERAGE
9
10. Driving to a powerful instore marketing plan
Design
Retailer Strategy Aisle
Brand In-Store
Equity SHOPPER Marketing
Plan Promotion
Purchase Barriers
Advertising
• Brand equity
• Consistent promise fundamentals Display
• idea, • Reflecting
• look and feel Shopper Event/
Insights Sampling
10
11. Unfortunately, consumers are facing similar
message overload in the retail
environment…
Shortcut to ARC In-Store Jan '08Pt2.lnk
video #2
11
12. So, how can manufacturers & retailers
determine the most effective, impactful
allocation of their marketing investment?
Introducing
P.R.I.S.M.
12
13. Marketing has changed due to evolving consumer
& industry dynamics
• Media fragmentation
13
14. Marketing has changed due to evolving consumer
& industry dynamics
• Consumers have evolved
14
15. Marketing has changed due to evolving consumer
& industry dynamics
• Retailers have evolved
15
16. With 70% of the purchase decision made in
the store
16
17. More Demanding
Shoppers
The timing is right to create truly shopper
Retailer
Differentiation Why More
Manufacturers
Striving for Topline
centric stores Shopper Centric
Stores?
New Metrics
Source: Interscope, 2008
17
22. Current & Future
Shopper Marketing
In-Store Audience Data
Shopper Marketing is the next marketing
1980s – 1990s
frontier Loyalty Data
Category Management
1970s – 1980s
Brand Management
Scanner Data
22
25. Retailer
transaction-level
scan data
“Who’s in the store”
Gross impressions/
+ audience by demo &
daypart
In-store audience
P.R.I.S.M. measures the audience“What’slocation
by in the store”
Presence of in-store
in store and understands shopper patterns by
+
P.R.I.S.M.
promotions
demographicpanel
Household •ROI
Predictive •Measurement &
Modeling Applications – e.g.
+ Closure rates
In-store audits
25
26. P.R.I.S.M. provides the foundation for in-store
planning, execution & evaluation
• Who was in the store?
26
27. P.R.I.S.M. provides the foundation for in-store
planning, execution & evaluation
• What is in the store?
27
28. P.R.I.S.M. provides the foundation for in-store
planning, execution & evaluation
• Was the investment effective?
28
30. Shopper Conversion
0
10
20
30
40
50
60
70
66
SALTY SNACKS
51
27
BEER
36
42
READY TO EAT
CEREAL 35
39
FRESH BREAD
AND ROLLS
30
SHELF STABLE
Food
39
JUICES AND
29
DRINKS
The Opportunity Gap
Retailer A
22
WINE
24
34
CRACKERS
24
Shopper Conversion - Retailer A
36
WATER
23
34
COOKIES
21
26
FROZEN ENTREES
21
30
31. The audience data can be analyzed by store part and time
Retailer A - Thursday
Store Part #29 had a high
of 91% on Thursday but
a low of 13%
on Wednesday
31
32. New Technology will track the shopping trip and
monitor dwell time
DWELL MAP
32
34. The new In-Store metric will tie In-Store to other
marketing spending and total investment analysis
34
35. In-Store Activity Return On Investment Analysis
End Cap
Trade
Displays Pricing
Check In-Store
Out Radio
Pallet Floor
Displays Graphics
In-Store Consumer
In-Store ROI
Promotion
In-Store Sampling
TV Programs
Case
Shelf
Stacker
Talkers
Displays Advertising
35
36. Overall Marketing Campaign
In-Store Activity Return On Investment Analysis
End Cap Trade
Displays Television
Pricing
Check In-Store
Out Radio Magazines Radio
Pallet Floor Event
Displays In-Store
Graphics Marketing
Consumer
In-Store In-Store ROI
CampaignRF Promotion
In-Store Sampling
Cinema Internet
TV Programs
Case
Shelf
Stacker Outdoor Newspaper
Advertising
Talkers
Displays
36
37. Impressions can be measured across
multiple marketing options
Need to develop
Avg. Weekly Gross Impressions (000)
Female 25-54 Northern California* appropriate CPMs
736
across these
526 vehicles
269
100 100
Front End/Checkout Runway - Rear American Idol 30 In-Aisle Shelf Women's Service
In-Store TV Wall Display Second Spot Talker Magazine
Source: Nielsen Media Research; Nielsen In-Store
37
38. Extensive testing and early pilot programs confirm
P.R.I.S.M. is valuable and ready for rollout
Today
Phase 1: Phase 2: Phase 3:
Test Scale and learn Rollout
Dates • 2006 • 2007-early 2008 • 2008 and beyond
Scope • 10 stores, 4 retailers in U.S. • 169 stores, 17 retailers, 38 • Syndicate the service in
banners representing 62% the U.S.
Total U.S. ACV • Begin international
• Projecting to 24,000(+) expansion
stores
38
44. P.R.I.S.M. -
How can we use the data to further advance
shopper marketing understanding?
44
45. P.R.I.S.M. offers unique insights and
long-awaited information
1. Audience measurement
- who is in the store?
- audience counts
2. In-store Marketing Presence
- what was in the store?
- presence of all in-store marketing stimuli
- knowing whether and which marketing in-store vehicles are
present
3. ROI/Efficiency/Effectiveness
- effectiveness/efficiency of in-store spending
- conversion (from exposure to purchase)
- planning and evaluation insights
45
46. A range of unique in-store metrics
• Gross impressions
• Unduplicated impressions
• Gross rating points
• Frequency
• % reach
• Shopper conversion rate
• # of stores in which marketing vehicle was present
• % of stores in which marketing vehicle was present
• Average # of weeks in which marketing vehicle was present
46
48. P.R.I.S.M. audience size measurement
Gross Impressions by Store Part
Retailer A - 4 w/e 09/29/07
Total Store Females 55+ Males 25-54
Checkout Area Zone 17,877,042 3,721,803 3,166,048
Runway - Front 99% 99% 99% • P.R.I.S.M. can identify
Lobby Zone 96% 95% 96%
In Aisle Zone 92% 92% 92%
audience size by storepart
Runway - Rear Wall 72% 72% 72%
Runway - Front Wall 61% 61% 61%
Produce Zone 55% 57% 49%
P.R.I.S.M. can highlight
Dairy Zone 50% 44% 47% differences in impressions
Runway - Rear 46% 46% 46% by demographic groups
Meat & Poultry Zone 42% 37% 41%
Runway - Perimeter 40% 40% 40%
Runway - Split Aisle 34% 34% 34% P.R.I.S.M. data can be used
Frozen Food Zone 28% 25% 26%
Deli Zone 22% 19% 21%
to determine optimal
Bakery Zone 21% 19% 21% placement of in-store
Seafood Zone 20% 18% 20%
Promo-Seasonal Zone 13% 13% 13%
display based on gross
Pharmacy Zone 9% 9% 9% impressions
Greeting Cards-Party Zone 6% 6% 6%
Floral Zone 4% 4% 4%
48
49. P.R.I.S.M. allows you to analyze a common
metric (gross impressions) across all mediums
Female 25-54 Despite being the #1
rated US television
One Week
TOTAL GROSS IMPRESSIONS 526,100 show, American Idol
Gross Impressions
In-Store Audience lag behind a number
One Week
Retailer A of Retail Store Zones.
Gross Impressions
Storepart Female 25-54
Lobby zone 1,155,489
Runway – Rear Wall 871,880
Runway – Front Wall 736,498
Produce Zone 713,231
Dairy Zone 676,542
49
50. Shopper Conversion rates from P.R.I.S.M. can be
analyzed week to week to assess changes
driven by in-store activity
Cookies Shopper Conversion Rates
Aug-Sept 2007
Retailer A
Retailer B
Retailer C
50
51. P.R.I.S.M. can reveal how many shoppers had the
opportunity to see various in-store executions
Impressions generated by a 1 week
pallet display in the runway front
generated nearly as many impressions
as a 6 week shelf banner.
Kraft Bistro Deluxe
In-Store Activity # of store/weeks Impressions
Display – Pallet 1 5,393
Runway Front
Shelf Banners 6 7,823
Dry Dinner Mix Aisle
Total Impressions 13,216
51
52. The in-store marketing activity of competitive brands can
also be analyzed through P.R.I.S.M.
More shoppers had the opportunity to see Kraft Deluxe
displays in just 5 weeks driven by more display locations.
Kraft Deluxe Competitor
# of store/weeks 5 6
Display Location Display Pallet Endcaps
Endcap
Case Stacker
Wall & Slatwall
Locations Runway Front Runway Rear Wall
Lobby Zone Runway Split Aisle
Impressions 31,961 28,039
52
53. P.R.I.S.M. data may be applied to answer many
additional questions such as…
Can investment in aisle reinvention drive increases in aisle traffic
and shopper conversion rates sufficient to result in positive ROI?
53
54. And… • Which aisle placement will drive the greatest
exposure and shopper conversion rate for my
mega display?
• Which type of display will yield the best ROI?
54
55. And many other questions…
• Is the execution of in-store media in line with targeted goals?
• Are there other storepart locations that provide a more
favorable audience rating and alignment with category
shopper traffic?
• Are there other in-store media types that should be used to
drive brand volume and category closure rate?
• Is the ROI more favorable for one type of in-store execution
than another?
• Are my in-store marketing activities as effective as my
competitors?
55
56. P.R.I.S.M. analytics …
A powerful tool for retailers and manufacturers
• Keeping the Shopper at the center
• Delivering leveragable insights into
Shopper in-store traffic, closure rates,
and ROI for in-store spending
• Examining impressions, impact and
ROI of media spending across all
mediums, including the store
56
57. New approaches to collaboration in manufacturer / retailer
shopper data sharing
ECR Berlin 2008
Koos Berkhout
58. Presentation overview
• Introduction
• Data challenges in collaboration
• Benefits of a single platform
• Case study
• Summary
59. Company Overview
• Own and operate customer loyalty programmes
– Nectar UK
– Air Miles Middle East
– Aeroplan Canada
• International Business Development
– Launched in: UK, Canada, Netherlands, Spain, Middle East
– Grocers: Safeway, A&P, IGA, Sobeys, Albert Heijn, Eroski,
Spinneys, Sainsbury’s
• Insight & Communication
– Customer analytics
– Insight sharing
– Customer targeting
61. Data-driven collaboration can go wrong in many areas
• There is an abundance of data sources, each with • People working across companies
its own limitations and data traps introduce additional challenges
• ePOS
– Comprehensive, cross-retailer view
– Does not provide insight into who
• Organisations tend to have their own
product hierarchies and category definitions
• Panel
– Adds the customer dimension to the cross-sector view • Different data sets can be used to answer
– Provides directional information only – becomes less (parts of) the same question
reliable in questions requiring granularity
• Choosing the best analysis technique and
• Loyalty Card which insights to show can be subjective
– Accurate view of how what customers do on a very
granular level • Interpretation of results can vary
– No cross-retailer view, data provides limited insight into
why shoppers behave the way they do
• Market Research
– Captures broader range of data can be providing better
insight into why
– Shoppers don’t always do what they say they do, survey
content is subjective
62. A single platform addresses many sources of inconsistencies
LMG Analysts
Manufacturer Retailer
Uniform front-end guiding
Uniform front-end guiding
users through phrasing
users through phrasing
business questions in aa
business questions in
consistent way Central set of modules
Central set of modules
consistent way
containing definitions,
containing definitions,
analysis methodologies
analysis methodologies
Single source
Single source
containing 100%
containing 100%
transactional and
transactional and
customer data
customer data
64. A single insight platform enables more effective collaboration
between retailers and manufacturers
• Organisational alignment and data quality are critical
– Manufacturers and Retailer use the same system
– Agree on consistent definitions in order to make customer data common language
– 100% data available over a sufficient time period
• The right technology determines the success
– Quick – Reports built and delivered in minutes
– Fast – Data available 3 days after the end of each trading week
– Simple – Intuitive portal simple to use and provides actionable insight
– Intelligent – Portal structured around key business questions
66. Situating shopper behaviours within
360° consumer understanding
Using this insight to drive
differentiated strategies
Sandy Livingstone
BMRB / TGI Europa
ECR Berlin 2008
68. In-store planning is still disconnected
In-store planning is frequently conducted without
sufficiently close reference to:
central marketing communications strategy
other wider picture issues such as attitudinal and cultural
differences across markets
At best this misses an opportunity to build
differentiation with real value to the consumer
At worst it results in poorly directly activities which
can undermine longer term brand health
69. A short story of Brand X
How, apparently this brand came to decide on its
in-store targeting strategy
Why subsequent sales data disappointed and led
to uncertainty
How 360° data revealed new levels of insights,
comparable across countries
How this influenced future European strategy
How it inspired a platform for specific actions with a
retail customer
70. Misunderstanding derived from an incomplete
picture
Brand X, a new snack product was launched across 3
European markets in early 2005
Based on demographic data on category consumption,
assumptions were made by the sales team as to the target
market, for example:
that the core was 18-34 year old females
that the major competitor was a category leader
A post-launch analysis showed that this hypothesis was
clearly incorrect leading to concern over direction of trade
support
Could more detailed analysis of other data help find a way
forward?
71. Brand X profile in France
A highly summarised example of output
72. Brand X Users: 2.4 million in France
Two thirds are female, younger (spread within the 15-34 age
group) and therefore more likely to be single and to be
students. However some have started their families, and 44%
About them
have children in their household. An average number work,
however given a quarter are in full time education and with
skews towards homemakers and unemployed, they are
slightly more likely to finding it hard on their personal income
(though by background, HH income is above average).
Marked skew to the north half of France with a core group
living in larger cities and Paris.
Have more spare time than many with a third spending 2.5
hours a day on leisure activities. Most of their weekdays
are at college, some work part time or spend a lot of time
Regular activities
caring for children. Often use the Internet, some may use it
at their campus for study or for staying connected with
friends. They like to hang out with friends after school or
work at fast food restaurants, cafés and bars are also into
sports (football, swimming, badminton) and particularly
sociable activities such as bowling, snooker etc. They rely
on TV heavily or books and Bande Dessinées for
relaxation. Some try to win some extra money from
machines, scratch-cards or the lottery. Those with families
are active theme-park goers (Parc Astérix, Walibi) and
others attend cultural sites/events in Paris.
Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F Base: Brand X users
73. Impulsively driven by clothes, fashion and socialising
Fashion is everything Impulsive trialists – love
anything even superficially new (e.g.
(and is disposable) packaging or gadgets)
Compulsive shoppers / Try to affirm themselves through their
browsers / spenders appearance
gain Aspire to Out and about enjoy having a good
night out
Experiencing Enjoy diversity esteem and
and difference stand out
Look for guilt free treats. Indulge
themselves but may feel tension being
aware of calories
Forward-looking, ambitious
and up for Challenges Love being Young and Youthful
Pleasure in everything; food, affection,
shopping or their home
Reactive to and engaged
with ads and promotions
Spenders, not good at saving
Music an important thing in life or managing money
Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F
74. Foods and Diet
Snack/ Foods more likely to consume often
Other choc Bar choc Chewing Ice cream (bars Sweets Savoury Cereal
Mints snacks Boxed choc bars
gum & sticks)
Snack
Food
RTE Breakfast cereal Salad dressing cream
Ice Sweet Cheese in Delicatess Meat & Milk Frozen
Mayonnaise
desserts biscuit portion en Poultry vegetable
Connecting with friends and family through food in
Top confectionary
a non-traditional French manner (no
Food strategy
structure/control). Sweet tooth, like to treat
themselves without avoiding sugars/fats. They like
brands
fast food and pizza and many go for easy options
such as takeaway. Many like experiencing new
things and some eat in restaurants especially
Greek/Turkish, Italian and exotic foods. Some opt
to diet products or skip meals to keep their weight
down. Many compensate with sport and overall
keep fit.
Source: Enlightenment Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F Base: Brand X users
76. Key values for each brand
Similarities Key values pulling
consumers apart
Culture
Environment
Image conscious/
Spending Home
keeping up
Connecting Diet tension
Superficial
novelty
Source: Enlightenment / Europa TGI 2007 February (Oct05 - Sep06) Universe: All Adults 15+ in F
77. Discoveries
Real differences exist between Brand X consumers
and those of its competitors
Not just a challenger sub-set: these were evident
throughout:
Demographics
Mindset
Lifestyle
This warranted a further investigation into
attitudinal differences in greater depth
78. Starting point: a map using 250+ attitudinal
statements against category brands in Germany
I consider myself interested in
the arts Brand X
Brand L
It's worth paying more for organic food
BrandI M
really enjoy any kind of shopping
Milkinis
A designer label improves a person's image
It is important my household is equipped with the latest technology
I find it difficult to say no to my kids
I always think of the calories in what I eat To do my shopping by internet makes my life easier
Lion Bar
We rarely sit down to a meal together at home Nuts
Real men don't cry
DoveBounty I don't have time to spend preparing
Tender Most of the time I'm trying to lose weight Banjo
There's little I can do to change myDuploand cooking food
life
I think fast food is all junk
I consider myself to be a spiritual person Contraception is a woman's responsibility
Kit Kat Pick up Twix Snickers
I would never think of taking a package holiday Celebrity endorsement influence I like taking risks Mars Bar
my purchase decision. Daim Milky Way I loathe doing any form of housework
I don't want responsibility I'd Brand Y The point of drinking is to get drunk
rather be told what to do I find that I'm easily swayed
Brand people's views
by other A Nussini
I always look for the light/diet Brand B I would like to set up my
Nutoka Aldi - Other choc own business one day
versions of food and drink I sometimes send off for goods
Caramac faith is really important to me
My services or info packs advertised in Kinder Maxi A woman's place is in the home
newspapers mags on TV or radio
When doing the household
Maltesers shopping I budget for every
penny
I often enter competitions featured on packets or labels
Enlightenment / Europa TGI 2007 February (Oct05 - Sep06)
79. Brand Positioning in
Germany Distinctive
niche
Sophistication position is
Premiumisation Early adoption
Brand X
confirmed
Brand L
Brands L and M
are Brand X’s
closest Brand M
Milkinis competitors from
this axis of
interpretation
Lion Bar
Nuts
Rolo Banjo
Tender
Dove Bounty
Feminine Duplo Kit Kat
Pick up Masculine
Snickers
Twix
Values Daim Milky Way Mars Bar
Values
Brand Y
Brand A Nussini Aldi - Other choc
Brand B Nutoka
Kinder Maxi
Caramac
Maltesers
Reactivity Price-oriented Conservatism
Enlightenment Europa TGI 2007 February (Oct05 - Sep06)
80. Observed differences by country
Core territory Opposing values
values
Great Britain Fashion / Convention
materialism
France Trialism based on Contrarian /
promotion Rebelling
Germany Premium / Conservatism
sophistication
81. Recommendations by country
In-store strategy Potential tactics
Great Britain • Reinforce fashion values • Glamour magazine
• Leader of its own category • Range away from main
• Increase frequency • Checkout displays
France • Refresh novelty value • Rolling price promotions
• Permanent new interest • Series of tie-ins with other trial
• Increase penetration increasers in other categories
Germany • Support sophistication • Premium display
• Avoid carving small niche • No price or “cheap” promotions
• Widen appeal outside core • Competitions as link to
aspirational
82. Generating new sales from this insight
A retailer/manufacturer partnership approach
built on differentiation
83. The potential amongst non-users is sized by
creating a closely matched “look-alike” group . . .
I like to treat myself to foods that are not good for me
I avoid sugar (no)
I often eat between meals, I keep eating snacks
I think fast food is all junk (disagree)
I don't pay sufficient attention to what I eat
Brand X I really look after my health (no)
63% of Because of my busy lifestyle, I don't take care of myself as well as I should
Brand X Our family spends a lot on food
consumers I often buy useless things
have at least I often buy, on impulse, products I hadn't thought of
7 of these I dress in a young style
variables in I like to keep up with the latest fashions
their profile
I like others to look at me
I spend a lot of my spare time with friends every day
I want to get to the very top in my career
Marital status: Single/Living alone
Among snacks consumers, people who have at least 7 of these variables in
their profile are 43% more likely to be Brand X consumers
84. . . . Creating a potential of 16.5m consumers
Snacking
consumers who are
non-users of Brand
X
Potential of
16.5m extra
consumers
Among other snacks eaters 39% have a very similar
attitudinal profile to Brand X’s users
85. The opportunity for Brand X / Retailer A
No particular affinity between these
consumers identified and any
specific brands.
Their consumption of competitive
products is average
Their potential affinity with
Brand X is quite unique
making this a promising
target market
Opportunity to create a
differentiated platform from Stronger likelihood to be
which to drive consumption Retailer A shoppers
/ sales
86. Creating a shared, differentiated platform:
Brand X / Retailer A in partnership
Health and diet Indulgence Premiumisation
Eating is a short break to fuel and Indulgence is not really achieved Not really about quality for its own
escape pressure via sensorial pleasure sake
• Convenient / easy solutions / • Rather it is through the notion of • Notion is more one of
quick fix having transgressed extravagance
• Often on the go • Treating generates feelings of • Usually expressed only on
• Follow impulsions / avoid rules guilt as well as of pleasure occasions
Pleasure obtained from the category positioned
as a well-being treat / mental break necessary to a healthy and balanced lifestyle
(similar function as a massage or some down-time in a Starbucks etc.)
• No relation to premium quality snacks or to healthy options
88. Conclusions
Survey data can provide the missing insight vital to maximise in-store
differentiation and ROI.
We recognise that relatively few make intelligent use of it:
The volume of data being processed from other sources can be
overwhelming and gives the illusion of completeness
There is an inherent difficulty in reconciling findings with other data
sources
We are hopeful that in future these barriers will be reduced:
we have already worked with P&G on a project to tie into Nielsen data
we are investigating ways of working with loyalty card systems
Meanwhile make use of differentiating insight already available