The Shopper Marketing Model case Dr. Oetker frozen pizza
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1 The Shopper Marketing Model case frozen pizza TMA Congres 20 oktober 2009 Den Haag Allan Kamp Trade Marketing Manager A. Kamp /
2 Agenda Introduction The checklist Interactive session 13:30-15:00 uur The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product Shopper relevance Trade marketing 2
3 Agenda Introduction The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product Shopper relevance Trade marketing 3
4 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 4
5 The scope The frozen pizza market has tripled it s value in the past 10 years This growth has almost all been generated by In contrast to the trend of PL winning market share, the market share of PL is declining within the frozen pizza segment This year a retailer reduced the consumer price of Ristorante, other retailers followed this example The price of Ristorante has been reduced to the (psychological) level of less than 2 euros The price distance between Casa di Mama (2,80 euro) and Ristorante therefore increased
6 The scope set the playing field: FMCG 6
7 The scope set the playing field: FMCG select the product: Frozen pizza - traditional 7
8 The scope set the playing field: FMCG select the product: Frozen pizza - traditional frozen meals pizza ready to eat meals traditional deep pan mini 8 brand brand
9 The scope set the playing field: FMCG select the product: Frozen pizza - traditional frozen meals pizza ready to eat meals traditional deep pan mini 9 brand brand
10 The scope set the playing field: FMCG select the product: Frozen pizza - traditional select the distribution: traditional - supermarkets 10
11 The scope Regular Artisanal Frozen pizzas - FTN Regular Artisanal 11
12 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 12
13 Assessment generic trade marketing strategy set the playing field: FMCG select the product: Frozen pizza - traditional select the distribution: traditional - supermarkets assess the economic & target group value, and collaborative opportunities 13
14 Assessment generic trade marketing strategy economic value low high target group value low high obsolete brand focus sales focus brand & sales 14 visited by the consumer good fit (positioning) suitable to communicate adapted from: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. The Hague, 2007
15 Assessment generic trade marketing strategy economic value low high target group value low high obsolete brand focus sales focus brand & sales 15 visited by the consumer good fit (positioning) suitable to communicate adapted from: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. The Hague, 2007
16 Assessment generic trade marketing strategy set the playing field: FMCG select the product: Frozen pizza - traditional select the distribution: traditional - supermarkets assess the economic & target group value, and collaborative opportunities high/high/high existing activity channel activation branding objectives sales objectives 16
17 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 17
18 Shopper & consumer product Usage and attitude In this part, please use as benchmark all possible consumer products & services, including for instance cars, screws, mobile phones or tissues. To what extent is the consumer involved? To what extent does the consumer perceive significant differences between the competing products? pizza involvement perceived differences 18
19 Shopper & consumer product Usage and attitude In this part, please use as benchmark all possible consumer products & services, including for instance cars, screws, mobile phones or tissues. To what extent is the consumer involved? To what extent does the consumer perceive significant differences between the competing products? pizza involvement perceived differences
20 Shopper & consumer product Usage and attitude In this part, please use as benchmark all possible consumer products & services, including for instance cars, screws, mobile phones or tissues. To what extent is the consumer involved? To what extent does the consumer perceive significant differences between the competing products? pizza involvement perceived differences
21 Shopper & consumer product 5 variety seeking complex perceived differences routine or habitual cognitive dissonance 0 level of involvement 5 21 typology of buying behaviour
22 Shopper & consumer product 5 variety seeking complex perceived differences routine or habitual cognitive dissonance 0 level of involvement 5 22 typology of buying behaviour
23 Shopper & consumer product Is the shopper brand loyal? Does the shopper prefer manufacturer brands (brand sensitivity) over store brands? The lower the market share of private label and fancy brands, the higher the brand sensitivity. pizza brand loyalty brand sensitivity 23
24 Shopper & consumer product Is the shopper brand loyal? Does the shopper prefer manufacturer brands (brand sensitivity) over store brands? The lower the market share of private label and fancy brands, the higher the brand sensitivity. pizza brand loyalty brand sensitivity 24
25 Shopper & consumer product Is the shopper brand loyal? Does the shopper prefer manufacturer brands (brand sensitivity) over store brands? The lower the market share of private label and fancy brands, the higher the brand sensitivity. pizza brand loyalty brand sensitivity Not applicable Not applicable 25
26 Shopper & consumer product Sales promotions & price sensitivity To what extent do sales promotions result in a sales uplift? To what extent do sales promotions for this product result in brand switching? To what extent do sales promotions for this product result in stockpiling? To what extent do sales promotions for this product result in an increase in intensity? pizza sales uplift brand switching stockpiling intensity 26
27 Shopper & consumer product Sales promotions & price sensitivity To what extent do sales promotions result in a sales uplift? To what extent do sales promotions for this product result in brand switching? To what extent do sales promotions for this product result in stockpiling? To what extent do sales promotions for this product result in an increase in intensity? pizza sales uplift brand switching stockpiling intensity 27
28 Shopper & consumer product Sales promotions & price sensitivity To what extent do sales promotions result in a sales uplift? To what extent do sales promotions for this product result in brand switching? To what extent do sales promotions for this product result in stockpiling? To what extent do sales promotions for this product result in an increase in intensity? pizza sales uplift brand switching stockpiling intensity 28
29 Shopper & consumer product Sales promotions & price sensitivity To what extent do sales promotions result in a sales uplift? To what extent do sales promotions for this product result in brand switching? To what extent do sales promotions for this product result in stockpiling? To what extent do sales promotions for this product result in an increase in intensity? pizza sales uplift brand switching stockpiling intensity 29
30 Shopper & consumer product Sales promotions & price sensitivity To what extent do sales promotions result in a sales uplift? To what extent do sales promotions for this product result in brand switching? To what extent do sales promotions for this product result in stockpiling? To what extent do sales promotions for this product result in an increase in intensity? pizza sales uplift brand switching stockpiling intensity
31 Shopper & consumer product Ristorante wk 01 wk 05 wk 09 wk 13 wk 17 wk 21 wk 25 wk 29 wk 33 wk 37 wk 41 wk 45 wk 49 wk 01 wk 05 wk 09 wk 13 wk 17 wk 21 wk 25 wk 29 wk 33 wk Effect promotions come on top >80% of the pizzas bought are eaten within the first week
32 Shopper & consumer product Are shoppers price sensitive? pizza price sensitivity
33 Shopper & consumer product Are shoppers price sensitive? pizza price sensitivity
34 Shopper & consumer product To what extent is the consumption of this product expandable? pizza expandable consumption 34
35 Shopper & consumer product To what extent is the consumption of this product expandable? expandable consumption pizza
36 Shopper & consumer product Shopping behaviour Does the shopper plan to buy the product (not the brand) before entering the store? (= is it on his written or mental shopping list) When the shopper decides to buy the product, does he look for a specific brand? (=brand hunting = the shopper doesn t decide on the shop floor what brand to choose; instead he has an outspoken top of mind preference for a specific brand) pizza planned purchase product planned purchase topping brand hunter 36
37 Shopper & consumer product Shopping behaviour Does the shopper plan to buy the product (not the brand) before entering the store? (= is it on his written or mental shopping list) When the shopper decides to buy the product, does he look for a specific brand? (=brand hunting = the shopper doesn t decide on the shop floor what brand to choose; instead he has an outspoken top of mind preference for a specific brand) pizza planned purchase product planned purchase topping Not applicable Not applicable brand hunter 37
38 Shopper & consumer product Shopping behaviour Does the shopper plan to buy the product (not the brand) before entering the store? (= is it on his written or mental shopping list) When the shopper decides to buy the product, does he look for a specific brand? (=brand hunting = the shopper doesn t decide on the shop floor what brand to choose; instead he has an outspoken top of mind preference for a specific brand) pizza planned purchase product planned purchase topping Not applicable Not applicable Not applicable Not applicable brand hunter
39 Shopper & consumer product Shopping behaviour Does the shopper plan to buy the product (not the brand) before entering the store? (= is it on his written or mental shopping list) When the shopper decides to buy the product, does he look for a specific brand? (=brand hunting = the shopper doesn t decide on the shop floor what brand to choose; instead he has an outspoken top of mind preference for a specific brand) pizza planned purchase product planned purchase topping Not applicable Not applicable Not applicable Not applicable brand hunter Not applicable Not applicable Not applicable
40 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 40
41 Distribution product Is the use of second placement above average in the store? Is the use of displays above average in the store? pizza 2nd placement displays 41
42 Distribution product Is the use of second placement above average in the store? Is the use of displays above average in the store? pizza 2nd placement displays 42
43 Distribution product Is the use of second placement above average in the store? Is the use of displays above average in the store? pizza 2nd placement displays
44 Distribution product Is the product very visible in the store? pizza visibility 44
45 Distribution product Is the product very visible in the store? pizza visibility
46 Distribution product Is the price positioning within the chosen channel high, relative to the other products sold in the channel. pizza price positioning 46
47 Distribution product Is the price positioning within the chosen channel high, relative to the other products sold in the channel. pizza price positioning
48 Distribution product Is the product rotation above average? If you consider both the Euro and percentage margin, is the overall profitability per unit sold above average? pizza rotation profitability 48
49 Distribution product Is the product rotation above average? If you consider both the Euro and percentage margin, is the overall profitability per unit sold above average? pizza rotation profitability 49
50 Distribution product Is the product rotation above average? If you consider both the Euro and percentage margin, is the overall profitability per unit sold above average? pizza rotation profitability
51 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 51
52 Other product characteristics Is the product growing fast? Is product penetration high, relative to the product s full potential? In what stage of the product lifecycle is the product? pizza growth penetration PLC 52
53 Other product characteristics Is the product growing fast? Is product penetration high, relative to the product s full potential? In what stage of the product lifecycle is the product? pizza growth penetration PLC 53
54 Other product characteristics Is the product growing fast? Is product penetration high, relative to the product s full potential? In what stage of the product lifecycle is the product? pizza growth penetration PLC
55 Other product characteristics Is the product growing fast? Is product penetration high, relative to the product s full potential? In what stage of the product lifecycle is the product? pizza growth penetration PLC growth growth growth growth growth
56 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 56
57 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 57
58 Shopper chosen distribution To what extent does the shopper enjoy visiting the chosen distribution channel overall (level of fun shopping)? overall pizza fun shopping
59 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 59
60 Other distribution characteristics Does the chosen distribution experience a lot of competition (competition intensity)? overall pizza intensity of competition
61 The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product 61
62 Assessment generic trade marketing strategy set the playing field: FMCG select the product: Frozen pizza - traditional select the distribution: traditional - supermarkets assess the economic & target group value, and collaborative opportunities high/high/high existing activity channel activation branding objectives sales objectives 62
63 U&A perceived differences pizza Nederland brand loyalty SP sales uplift brand switching stockpiling intensity Shop. Behav. price sensitivity expandable consumption planned purchase product Not applicable Not applicable
64 pizza Shop. Behav. Distr. brand hunter Not applicable Not applicable Not applicable visibility price positioning Other prod. Charact. rotation profitability growth penetration PLC growth growth growth growth 64 growth
65 Assessment generic trade marketing strategy Trade marketing & the sales objectives - Grow the market Increase the intensity, largely through up-selling () - Grow the market share By increasing the market share of Casa di Mama Emphasis on brand/product penetration 65
66 Assessment generic trade marketing strategy Trade marketing & the sales objectives - Grow the market Increase the intensity, largely through up-selling () - Grow the market share In short: By increasing the market share of Casa di Mama Emphasis on brand/product penetration - Grow the value and profitability of the category of traditional pizza s - Do this: by increasing the penetration and the intensity of pizza s by using the s Casa di Mama brand as cornerstone to drive category growth and profitability 66
67 Agenda Introduction The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product Shopper relevance Trade marketing 67
68 Shopper relevance easy to shop value choice experience service 68
69 Shopper relevance value easy to shop choice as is supermarket channel 69 experience service
70 Shopper relevance value experience easy to shop service choice as is to be supermarket channel 70
71 Shopper relevance value easy to shop choice as is experience service traditional pizza category 71
72 Shopper relevance value experience easy to shop service choice traditional pizza category as is to be 72
73 Shopper relevance value easy to shop choice retailer as is category as is experience service 73
74 Shopper relevance value easy to shop choice retailer to be category to be experience service 74
75 Shopper relevance retailer = category (to be) yes no retailer: as is = to be yes no align use category as a lever motivate defend 75
76 Shopper relevance retailer = category (to be) yes no retailer: as is = to be yes no align use category as a lever motivate defend 76
77 Shopper relevance value easy to shop choice art isanal as is experience service 77
78 Shopper relevance value easy to shop choice art isanal to be experience service 78
79 Shopper relevance value easy to shop choice as is to be experience service 79
80 Shopper relevance easy to shop value choice ret ailer t o be art isanal t o be experience service 80
81 Shopper relevance retailer = category (to be) yes no retailer: as is = to be yes no align use category as a lever motivate defend use Casa di Mama as a lever to restore the profitability of the segment 81
82 Agenda Introduction The checklist The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product Shopper relevance Trade marketing 82
83 product category/segment/product/sku brand easy to shop value choice behaviour shopper consumer/characteristics/need state experience service distribution channel/subchannel/format/ retailer/banner trade marketing 83
84 Trade marketing 84 increase the share of promotions ( lower the share for Ristorante )
85 Trade marketing 85 increase the share of items ( lower the share for Ristorante )
86 Trade marketing 86 increase the in-store visibility (results form other actions)
87 Vragen / opmerkingen Allan Kamp akamp@oetker.nl
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