Executing Shopper Insights Conference Showcasing how fact-based shopper insights lead to value growth in the category olive oil London, February 18-19 th
Every decision matters
Focus on FMCG
2D 3D
Most Dutch need help in their kitchen (and in-store)
1 Determine and track shopping missions 2 Identify purchase barriers along path to purchase 3 Understand online shopping behaviour and the digital shopper journey 4 Leverage the opportunities of enhanced virtual research online Key research topics identified by the industry (Nov 13)
Urgent need for understanding shopper behavior in emerging markets The digital world reroutes the path to purchase Measure effectiveness of instore shopper marketing activities Scalable solutions & global capabilities Surveys include new means of shopping demand (ZMOT) Launch of online shopper research in a virtual 3D store Trends reflected in our development
ASSORTMENT OPTIMIZATION PRICING STRATEGY SHOPPER DECISION TREE How to select the most optimal assortment? PRODUCT LAUNCH How to optimize profitability and win market share? PLANOGRAM TESTING How to influence consumers along their shopper journey? PACKAGE DESIGN What is the sales potential of a new product? What is the impact of POS materials or different shelf lay-outs? What is the impact of a new package design? Research services using the Simstore virtual store environment
ASSORTMENT OPTIMIZATION PRICING STRATEGY SHOPPER DECISION TREE How to identify the most relevant touch points and how to learn how shoppers reason? What are the distinctive segments in the category and how do shoppers substitute between products, brands and segments? How to select the most optimal How to optimize profitability and How to influence consumers along their shopper journey? PRODUCT LAUNCH PLANOGRAM TESTING PACKAGE DESIGN What is the impact of POS materials or different shelf lay-outs? What is the impact of a new package design? Which shelf layout supports trading upwin and/or ease of selection? assortment? market share? What is the relative importance of product attributes? What is the sales potential of a new product? Research services using Shopper the Simstore decision virtual tree store environment
How to identify the most relevant touch points and how to learn how shoppers reason? What are the distinctive segments in the category and how do shoppers substitute between products, brands and segments? Which shelf layout supports trading up and/or ease of selection? What is the relative importance of product attributes? Shopper decision tree
11 Drive revenue growth from a shopper s perspective
HOT COLD Category vision DeOleo 12
Virtual shopping simulations Interactive questionnaire 42 SKUs +/- 15 minutes N= 1620 Bought olive oil in the past 12 months Research set up 13
At which supermarket do you buy your olive oil and why? 80% 70% 60% 50% 40% 30% 72% (A,E) 59% 55% 70% 68% 62% 61% 61% 54% 63% 60% 49% 55% 55% (E) 38% 49% 45% 33% 37% (E) 29% 44% 42% 36% 20% 19% 10% 0% Relatively low Appealing price Olive oil I need is prices of olive oil offers easy to find Wide range of olive oil Wide choice in A-brands Assortment with special olive oils Renewing assortment Wide choice of large packs AH (A) (n=768) Jumbo (C) (n=199) PLUS (E) (n=84) Major opportunities at PLUS Retail 14
Schap oud + verhaal Olive oil in-store at PLUS Retail 15
Please buy olive oil for... Select & buy Product is out-of-stock. Please choose alternative. Purchase simulations based on specific shopping missions. 16
Behavioural based category segmentation provides input to optimize communication (packaging), product development and shelf layout. 17
Substitution between Bertolli and Carbonell: (Re)positioning? 18
No presence in premium segments: Big opportunity for DeOleo! 19
Category segmentation reflects the category vision: Daily (Hot) versus Special (Cold). 20
Daily use Private label Small bottles Large bottles Brand Bertolli Carbonell Special occasions Premium brand Premium private label EV natural EV with additives Shelf lay-out matches the category segmentation. 21
45% 42% (B) 40% 38% (B) 35% 30% 25% 29% 32% 28% (A) 20% 15% 10% 14% 12% (A) 5% 5% 0% Daily (A) Specials (B) Baking or roasting Cooking in wok Salad or dressing Other Consumers seemed to be mixed up 22
1 Limited knowledge about usage Educate shoppers to facilitate variety seeking behaviour 2 A purchase planned at home Use disruptive measures to facilitate up trading 3 However, many aspects have not been decided pre-store Entice shoppers at the shelf New shopper insights helped to identify opportunities for growth. 23
1 Increase category value by lifting the emotional values and focus on trading up 2 Increase category value by educating consumers and promote variety seeking behavior Hypothesis 24
INSPIRATION Wooden shelves provide more inspiration and focus on the A-brands TRADING UP Signing communicates advantage of buying large bottles Scenario 1: Shelf lay-out supporting trading up 25
VARIETY Signing communicates both hot and cold applications HEALTH Carbonell neck tags focus on informing the shopper about Omega-3 Scenario 2: Shelf lay-out supporting variety seeking 26
35% 30% 30% (B) Percentages of purchased products per sub-segment 25% 25% 25% (B) 20% 15% 10% 5% 0% 19% 20% (A) 15% (A) 15% (A) 12% (A) 10% 9% 8% (A) 6% (A) 1% 2% 3% 2% Small bottle Large bottle Bertolli Carbonell Premium oil AH Excellent Special usage Flavored oil Trading up/ Inspiration (A) (n=796) Variety/ Health (B) (n=807) POS materials affect shopping behaviour! 27
60% 50% 51% (B) This shelf seduces me to buy.. 40% 42% 30% 20% 23% 28% (A) 10% 0% 'Value packs' Trading up/ Inspiration (A) (n=796) Different kinds of olive oil Variety/ Health (B) (n=824) The purpose of POS materials is reflected in shopping behaviour. 28
29 New shelf lay-out PLUS Retail
400 350 300 +0% +10% 305 336 250 246 247 200 150 100 50 0 Control stores Pre Post Test stores Results: +10% category value growth! 30
31 EVERY DECISION MATTERS