1. The Multi-Channel Shopper and the new
engagement landscape for retailers and
brands
Dr Alan Treadgold
Global Head of Retail Strategy
Leo Burnett Group
16th International Food Business Russia Summit
Moscow, February 2011

2. Multi-channel shopping:
The defining theme for
retailers and brands
2

3. Understanding the Multichannel
shopper: Our key questions
• Who is the multichannel shopper?
• Is there a “psyche” to multichannel shopping?
• What are the motivations (or barriers) to multichannel shopping?
• Are there different kinds of multichannel shoppers?
• What purpose do different channels serve?
• How do multichannel shoppers shop different product categories?

4. Our Research in Russia
13markets • Moscow
• St. Petersburg
• Novosibirsk
• Kazan
• Chelyabinsk
685
• Rostov-na-Donu
• Nizhny
Novgorod
• Ufa
• Volgograd
respondents
• Ekaterinburg • Perm
12
• Samara
• Omsk
categories
•Skin Care •Carbonated soft drink
10
•Laundry detergent •Chocolate bars
•OTC Medicine •Electronics
•Tobacco •Mobile phone hardware
channels •Hard Liquor
•Beer
•Automobiles
•Designer clothes
•Store •Mobile phone
•Web •In-home parties and door-to-door sales
•Mail order catalogue •Magazines
•TV (infomercials, home shopping channels) •Direct mail
•Land line telephone •Store produced newspapers, flyers, circulars

5. The Headlines

6. A highly engaged shopper…
86% of respondents use more than one
shopping channel when shopping a category
Across the 12 product categories, the average
shopper uses 5.2 channels to shop

7. Multichannel shoppers spend a lot
of time shopping
Time Spent Shopping for:
Packaged Goods Durables
Minutes Hours
250 60 52
200
200 50
40
150 30
Light 30 Light
100
Heavy 20 Heavy
50 22 10
0 0
*Note: Heavy multi channels shoppers defined as the heaviest 25% of shoppers within a category, Light MCS defined
as the bottom 25% in a category

8. They use all channels –
but online dominates
Channels used when shopping for:
MINUTES CPGs (in mins) HOURS Durables (in hrs)
250 60
52 HOURS
200 MINUTES
50 CIRCULAR
200
MAIL
40 MAGAZINE
150 IN‐HOME PARTY
30 HOURS MOBILE PHONE
30
LANDLINE TELEPHONE
100
20 INFOMERCIAL
MAIL/CATALOG
50 22 MINUTES 10
ONLINE
IN‐STORE
0 0
Light Multichannel Shoppers Heavy Multichannel Shoppers Light Multichannel Shoppers Heavy Multichannel Shoppers
*Note: Heavy multi channels shoppers defined as the heaviest 25% of shoppers within a category, Light MCS defined
as the bottom 25% in a category

9. While multichannel shoppers
share some common traits,there
aredifferent types of
multichannel shoppers

10. The 6 Key drivers of multichannel
shopping
Bargain Hunting Exploratory
Low Price Premium
List Driven Habitual

11. Profiling the Multi-channel
shopper in Russia
Bargain Hunting Exploratory
Opportunistic
Adventurer
11% / 95
Strategic Savvy
Saver Passionista
12% / 130 37% / 107
Low Price Premium
Dollar Quality
Defaulter Devotee
5% / 117 27% / 80
Efficient
Sprinter
8% / 121
List Driven Habitual
Percent: Heavy Multichannel Shoppers
Index: Heavy Russian Multichannel Shoppers / Total Shoppers in Russia
* Overall shopper archetypes are based on overall attitudes towards shopping

12. The multichannel shopper in Russia
compared with ‘the West’ –more about
style; less about saving money
Segment Name Western Russia Gap
Strategic Savers 29% 12% -17
Opportunistic Adventurer 15% 11% -4
Saavy Passionista 14% 37% +23
Quality Devotee 16% 27% +11
Efficient Sprinter 13% 8% -5
Dollar Defaulter 13% 5% -8
Source: Leo Burnett / Arc multichannel shopper research 2009 & 2011

13. Why…
are people multichannel
shopping?

14. Perceptions of Risk and Reward explain
levels of multichannel shopping
HIGH RISK
EG: Banking EG: Designer Clothing
LOW HIGH
REWARD REWARD
EG: Household Basics EG: Books
LOW RISK

15. Risk / Reward perceptions and the
Russian Shopper
Burden High Risk Passion
Automobiles
86%
Electronics
89%
Smart
Phones
92%
Designer Clothes
Skin Care 85%
Products High
Low
Reward 94% Reward
Over The Counter
Medications Hard
Liquor Candy
63%
57% Beer
52%
63%
Laundry Carbonated
Detergent Soft Drinks
70% 51%
Routine Low Risk Entertainment
*Note: Numeric % represents the percent of category shoppers shopping 3 or more channels

16. In Russia the presence of the different Shopper
archetypes varies widely when viewed through
the lens of the type of product being purchased
Consumer Package Goods
Skin Care 162
Laundry detergent
OTC Medicine
Tobacco
Hard Liquor 123
Beer
Carbonated soft drink 123
Chocolate bars
91
Durables 39
Electronics
Mobile phone hardware 37
Automobiles
Designer clothes
Consumer Package Goods Durables
Quality Efficient Dollar Strategic Opportunistic Savvy
Devotee Sprinter Defaulter Saver Adventurer Passionisita

17. When are the different
engagement channels
being used in the shopping
journey?

18. The experience in Russia – less focus on
one or 2 engagement channels only
EARLY
Assess needs. Gather ideas.
113 Learn. Consider options
106
Trigger
THROUGHOUT 113
To Start 112 MIDDLE
Shopping PROCESS Define criteria
Compare options
Seek advice
Experience
133 106
105 114
115
LATE
123
105 Select. Buy
INDEX: Likelihood of using a channel in a phase

19. Example: The electronics
‘path to purchase’ in Russia
35.0
30.0
% of electronic shoppers
25.0
20.0
Store
15.0 Web
10.0
5.0
0.0
Beginning Early Middle Late End
Search Purchase

20. Implications for
Retailers and Brands
20

21. #1
Effectively engaging the multi-
channel shopper requires 3 lenses
of insight
1 2 3
Shopper Channel
Category Within a category
Depending on the
The most essential lens different shoppers
category and the
for understanding the employ very different shopper, channels
multichannel shopping shopping strategies, or vary in their ability
is the category “archetypes,” each to address different
with its distinct shopper needs
motives

22. A 360oapproach is
mandatory for effective
shopper engagement

23. Mobile commerce will
be the next key
engagement platform
for many

24. New School
Convenience:
The whole
world in your
hands
(50% of US shoppers will
have a smartphone by
Christmas 2011)

25. Retailers must
re-imagine the role of
their stores

26. “Multichannel defines the new
landscape. Retailers are going
to have to adapt and make sure
they’re not disintermediated.”
Ian Cheshire – CEO, Kingfisher Group UK
NRF Convention, NYC, 01/11

27. Re-imagining the role of
the retail store - dial up
experience, stimulation
and ideation

28. Apple, NYC

29. Sainsbury’s:
Inspirational food ideas instore

30. And finally...
Strong brand ideas must be at
the heart of winning in the
multichannel landscape

31. The key questions
What kind of retail experience do I want to offer?
What is the compelling brand idea to bring the desired
experience to life?
What does the physical store experience need to be?
How should the brand idea be delivered across
multiple channels?

32. Tesco: The brand idea is at the heart
of their multichannel strategy
The kind of retail experience
you want to offer
The store that makes shopping easy
Define the experience with
a compelling brand idea
Optimise the physical stores
to deliver the desired
experience
Use the brand idea to help
determine how to deliver
your brand across multiple
channels

33. Thank You
And if you’d like to know more:
Alan Treadgold
Global Head of Retail Strategy
Tel: +44 (0)7958 694045
alan.treadgold@leoburnett.co.uk