5 examples of how our shopper insights can drive true growth...5 examples of how our shopper...
TRANSCRIPT
5 examples of how our shopper insights
can drive true growth
Roger Jackson, Global Vice President, Shopper Research: [email protected]
Sal Fiordelisi, Program Lead, Shopper Intelligence USA: [email protected]
Wade Duke, President, Shopper Intelligence North America, [email protected] Toll Free: 844-724-0047
© Copyright SMI
A Shopper Insight:
A previously unknown or un-adopted learning about the shopper and/or the shopper decision
process that we can leverage to improve business performance
What the shopper
thinks, needs,
does
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5 ways shopper insight can uncover routes to growth
Role of category to the store
How and when the purchase decision is made
Response to promotions
Brand buyers versus own label buyers
Targeting different users and occasions
© Copyright SMI
5 ways shopper insight can uncover routes to growth
Role of category to the store
How and when the purchase decision is made
Response to promotions
Brand buyers versus own label buyers
Targeting different users and occasions
© Copyright SMI
Understanding Role gives you ammunition for greater resources
The retailer cares about growing their business not yours.
Insights that build proposals will demonstrably drive additional revenue/profitfor the store are valuable. And your buyer needs to argue the case with his/her boss
With fact based insights they will get support….
More $
New shoppersExisting
shoppers spend more
Greater loyalty
Australia 20126 © Advantage International, Inc.
6
Lowdifferentiation
Highdifferentiation
High intentionalityLow intentionality
A framework we find powerful
Impact the trip
Build loyalty and spend
Australia 20127 © Advantage International, Inc.
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Lowdifferentiation
Highdifferentiation
High intentionalityLow intentionality
Hero categories“Give me a reason to
choose This store over competitors
Drive the Trip“Give me the best value
on basics & make it easy”
Drive the Basket “Give me an irresistible
deals on those little extras”
Differentiate via New & Treat “Entertain me with something new and
different”
e.g. Fresh Breade.g. Chilled Soup
e.g. Standard White Milke.g. Chocolate Biscuits
Broadly speaking 4 Category Types
Australia 20128 © Advantage International, Inc. 3.50
4.00
4.50
5.00
5.50
6.00
6.50
4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50
Hero categories
Drive the TripDrive the Basket
Differentiate via New and Treat
Different categories have different roles for retailers and shoppers
Lowdifferentiation
Highdifferentiation
Highintentionality
Lowintentionality ?
Australia 20129 © Advantage International, Inc.
Highdifferentiation
Lowintentionality
3.50
4.00
4.50
5.00
5.50
6.00
6.50
4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50
Hero categories
Highintentionality
• Lead on innovation• Pre-store advertising/ Catalogue• Promotion out of store• Simple Display, focus on OOS• Opportunity/ threat in Private
Label
Top 10 categories
Nappies
Pet Food
Fresh bread
Health Foods
Fresh Meat
Staple Veg
Continental Deli
Fruit
Long Life Milk
Coffee
Top 10 supplier brands
Fancy Feast (Cat Food)
Huggies (Nappies)
Vitasoy (Fresh Non-Dairy Milk)
Whiskas (Cat Food)
GWF (Bread)
My Dog (Dog Food)
Babylove (Nappies)
Wonder White (Bread)
Dilmah (Tea)
Pollident (Denture Care)
Australia 201210 © Advantage International, Inc.
Categories are not homogeneous
Breakfast bars and Biscuits category example
Most of category isHighly incrementaland intentional
A subset is less incremental and less planned
Adult snacking
Kids lunchbox
Case study – what Suppliers and Retailers do together with this framework
Australia 201212 © Advantage International, Inc.
Australia 201213 © Advantage International, Inc.
Top 10 for the shopper importance of PriceDisposable Nappies
Long-life milk
Chocolate Bags
Cola Soft Drinks
Hair Colour
Block Chocolate
Lunchbox Snack packs
Baby Wipes
Chocolate Sharepacks
Cake Mixes
Australia 201214 © Advantage International, Inc.
Top 10 for importance of availability
Disposable Nappies
Mixers
Blades and Razors
Feminine Hygiene
Long-life milk
Yoghurt
White Sliced Bread
Gourmet Yoghurt
Dairy Beverages
Cat Food
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5 growth driving insight arenas
Role of category to the store
How and when the purchase decision is made
Response to promotions
Brand buyers versus own label buyers
Targeting different users and occasions
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Understanding the path to purchase, the when and the how
If you know when the decisions are being made you can allocate resourceseffectively and argue that case to the retailer
Category Decision
Brand Decision
Ease of diversion
Pre storeIn store
Pre store In store
Loyal/small repertoire Disloyal/largerepertoire
© Copyright SMI
Understanding the path to purchase, the when and the how
If you know when the decisions are being made you can allocate resourceseffectively and argue that case to the retailer
Category Decision
Brand Decision
Ease of diversion
Pre storeIn store
Pre store In store
Loyal/small repertoire Disloyal/largerepertoire
Activation early in P2P Activation at fixture
Australia 201218 © Advantage International, Inc.
Case study: Winning additional secondary display feature in Mexican Foods
© Copyright SMI
Arguing for secondary display for Mexican meal components –
secondary siting
Mexican food is impulsive and
expandable
xx Rank (of 140)
n=414
Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR)Q12 What were the main reasons you planned to buy XXX on this occasion? (MR)Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)
Below benchmark (99.9% confidence)
Below benchmark (90% confidence)
In line with benchmark Above benchmark (90% confidence)
Above benchmark (99.9% confidence)
% of shoppers
x% All category average
Planned63%
Mexican cuisine
114
Requested14%
Particular use17%
Regular purchase
36%
Promo trigger6%
Try for a change
4%
No promo trigger59%
Internet info0%
Advert1%
Catalogue3%
Coupon2%
116 47 12 5
109
30
41
Promo trigger25%
No promo trigger15%
Display12%
Price / Specials
12%
Pack3%
Info in store4%
New5%
Unplanned36%
36 30
26
29
41
29
71% 27%
Mexican Foods is driven by Display
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5 growth driving insight arenas
Role of category to the store
How and when the purchase decision is made
Response to promotions
Brand buyers versus own label buyers
Targeting different users and occasions
© Copyright SMI
Understand incrementality of promotions
Retailer short term focus is maximising weekly sales
Tend to promote best sellers
But these are not often driving incremental growth, rather they drive “cupboard loading”.
Australia 201223 © Advantage International, Inc.
Case study: Arguing additional promotions for Premium Tea
Australia 201224 © Advantage International, Inc.
71%
Everyday tea purchase are about routine, regular behaviour
Planned 79%
Tea
xx Rank (of 178)
56
Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR)Q12 What were the main reasons you planned to buy XXX on this occasion? (MR)Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)
Requested8%
Particular use3%
Regular purchase
68%
Promo trigger
4%
Try for a change
1%
No promo trigger
75%
Internet info0%
Advert0%
Catalogue3%
Coupon1%
30 177 116 159
54
133
Routine regular purchase hence simplicity crucial for Tea shoppers particularly in Everyday Black. Facilitate the shop with easy navigation, direction at shelf and in stock.
Everyday Premium Green Infusions
79% 58% 56% 61%
Tea (N=305), Everyday Black (n=121), Premium Black (n=50), Green (n=34), Infusions (n=38)
Planned Regular Purchase
Australia 201225 © Advantage International, Inc.
Whereas Premium teas are well placed to trade shoppers up with impulse purchasing
Tea
xx Rank (of 178)Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR)Q12 What were the main reasons you planned to buy XXX on this occasion? (MR)Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)
27%
Promo Trigger
13%
No promo trigger
11%
Display6%
Price/Specials
7%
Pack0%
Info In Store
2%
New3%
Unplanned 20%
123 106
116
117
Everyday Premium Green Infusions
4% 10% 12% 3%
Tea (N=305), Everyday Black (n=121), Premium Black (n=50), Green (n=34), Infusions (n=38)
Impulse driven by Price
Price offers trigger a greater impulsive response in Premium Black and Green tea shoppers.
Australia 201226 © Advantage International, Inc.
Incremental
59%120
Would have bought the category & bought same as usual
37%63
Only bought because of promo
43%
104
Would have bought but bought more than usual
16%125
xx Rank (of 195)
x% All category average
32%63%
Regular Tea
Incremental
82%16
Would have bought the category & bought same as usual
15%183
Only bought because of promo
75%12
Would have bought but bought more than usual
19%89
32%63%
Speciality Tea
Promotion Response
Strong argument to increase promo exposure of Premium Tea to drive true growth
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5 growth driving insight arenas
Role of category to the store
How and when the purchase decision is made
Incrementality of promotions
Brand buyers versus own label buyers
Targeting different users and occasions
© Copyright SMI
Not all shoppers are the same
Easy assumption among retailers is that brand buyers are some how just illogical
But if you can prove a different need compared to own label buyers you can arguelogically to support brand activity
Australia 201229 © Advantage International, Inc.
Case study: Understanding Brand in a “commodity” category : Flour
Australia 201230 © Advantage International, Inc.
71%
We need to look first at how flour is bought:
Planned 89%
Flour
xx Rank (of 178)
9
n=300
Q9 You said you bought XXX in [RETAILER] on this particular shopping trip. Did you specially plan to buy XXX before you went to the store? (SR)Q12 What were the main reasons you planned to buy XXX on this occasion? (MR)Q14 What were the main reasons you decided to purchase XXX on this occasion? (MR)
% of shoppers
Requested9%
Particular use39%
Regular purchase
63%
Promo trigger
3%
Try for a change
2%
No promo trigger
88%
Internet info0%
Advert2%
Catalogue2%
Coupon1%
49 6 83 79
5
149
Top 10: PlannedParticular use
Cream 64%
Herbs 63%
Liquid Stock 49%
Herbs, Spices & Seasonings
44%
Mince 42%
Flour 39%
Cough and Cold products
38%
Batteries 37%
Medicinal 37%
Fresh Chicken Cuts 36%
Price is not as critical in these types of categories
Australia 201231 © Advantage International, Inc.
And how flour is used in the home
When intended to be used
Average Category
Flour
n=50773 n=272
Consumed/used straightaway after buying 18% 15%
Consumed/used the same day as bought but not
straightaway28% 24%
Taken home for future consumption on a
specific occasion36% 43%
Taken home with no specific occasion or use in mind
25% 25%
Consumed or used later but not in the home 3% 3%
For use in some other way 3% 4%
Need to talk about occasion/ recipe not priceRemind shoppers of the importance of their choice to their recipe to drive value
Australia 201232 © Advantage International, Inc.
Net Favourable in Flour vs Brand X
3.5 3.63.5 3.4
2.9
3.4
2.7 2.8 2.8
2.12.0
3.1 3.1
2.6
1.5
2.0
2.5
3.0
3.5
4.0
Imp
ortan
ce (1-5
)
Flour
n=300
xx Rank (of 178)
28 164 15620 74145 153100149 -125 64 7555
Q25 … how important is each statement to you when shopping for XXX in [RETAILER]? (SR)
Avg Category
96 -
Below benchmark (99.9% confidence)
Below benchmark (90% confidence)
In line with benchmarkAbove benchmark (90% confidence)
Above benchmark (99.9% confidence) * Select categories only
Brand X delivers on premium
When I buy premium Flour in [RETAILER], I really notice the
difference(agree minus disagree)
Category – 17%Brand X – 48%
Australia 201233 © Advantage International, Inc.
Brand X significantly outperforms the category on willingness to “spend more for better”
Performance: Net Favourable (% Agree 7,8,9 minus % disagree 1,2,3)
Range of ratings for statement: All categories
Q23 ….how much you agree or disagree when shopping for XXX in [RETAILER] ….. (SR)
xx Rank (of 178) x% All category average
Brand X can drive premium and higher ASP into Flour
Australia 201234 © Advantage International, Inc.
Category Information What it provedInsight
Result
Flour Highly planned for a specific use
Bought for a specific occasion
Brand X commands a higher price premium
Flour is not 100% commodity
Can trade up via Brand X
Execute this via specific use/ occasion
Combined with a new commercial package the brand received additional space and support for a program of promotional activity
Summarising the argument to the buyer:
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5 growth driving insight arenas
Role of category to the store
How and when the purchase decision is made
Incrementality of promotions
Brand buyers versus own label buyers
Targeting different users and occasions
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Differentiate by shopper types
Classic marketing theory is to understand what motivates different consumers, identifythe most attractive segment, then target them
This applies in the same way to shoppers
We have built successful growth strategies by identifying differences based on eg:
By Intended recipient/userBy GenderBy Usage occasionBy Age
Australia 201237 © Advantage International, Inc.
Case study: Merchandising “Premium” in Red Wine
Australia 201238 © Advantage International, Inc.
Supplier wanted to pioneer a new merchandising strategy to drive trade up in Red Wines
n=
I don't mind paying a bit more for some types of [Cat] in [Ret]
Average Category 8429 19%Total Wine 2017 24%Total Wine without Cask 1597 27%Total Beer 3307 15%White Bottled 572 24%Red Bottled 648 35%Sparkling White 176 18%French Champagne 150 15%Cask Wine 420 15%Sparkling (incl Champagne) 377 16%
Australia 201239 © Advantage International, Inc.
Male Wine shoppers want ideas and inspiration
Total WineAverage Liquor
MaleWine
n= 8429 727
Improve how the products in XXX are laid out and positioned on shelf so it is easier and quicker to shop
13% 14%
Improve signage and information at the shelf so it is easier and quicker to shop
17% 18%
More ideas/ inspiration/ explanation at shelf to make XXX more enjoyable and easier to shop
15% 19%
Australia 201240 © Advantage International, Inc.
Dan Murphy’s shoppers are more likely to be men buying for “later” than other retailers
72% Male
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5 ways shopper insight can uncover routes to growth
Role of category to the store
How and when the purchase decision is made
Response to promotions
Brand buyers versus own label buyers
Targeting different users and occasions
Australia 201242 © Advantage International, Inc.
Program Introduction
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This is an already well proven tool, seeking to become a global standard
ASI Pilot Countries ASI Planned 2014 -15
In exploration
SI Pilot programs operating in Australia (since 2008) UK and France (since 2013) • rolling out to 5 additional countries in 2014/15
CANADA
USA
UK
SPAIN
NETHERLANDS
FRANCE
AUSTRALIA
GEOGRAPHICAL MARKETS COVERED
GERMANYBELGIUM
SOUTH AFRICA
NEW ZEALAND
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A common reference - valued by retailers so highly effective for suppliers
“Shopper Intelligence is well embedded across the business at Coles. It is a key component in our suite of insights driving Customer and Category planning and is hard-wired into category level templates that Category Managers use to make decisions everyday (e.g. range reviews)”
David Brown, Category Insights Manager - Grocery Food, Coles Supermarkets, Australia
“Shopper Intelligence adds strong evidence to our category knowledge and completes past shopper research. Its innovative methodology gives a solid benchmarking of the role of our category in growing our retailers’ sales, allowing us to determine the right levers of action. A big advantage of the system is it’s quick to turn into action and present to buyers.”
Stanislas de Maleissye, Category Marketing Director,General Mills, France
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This new system provides a more cost efficient and contextual solution than
multiple custom projects
Existing sources provide behavioral data
… but little forward looking “why” understanding from shoppers themselves
Historically, you need customised research to get any real insights about what shoppers think and want. That’s expensive, time consuming and often infrequent.
Scan Data
Panel
Loyalty Card
An Industry system provides significant cost economies, engages retailers better, andprovides unique benchmarking capability
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What is it?
BenchmarkingMeasures of shopper perceptions, attitudes, behaviors at a category level. 90% standardized, 10% customizable for any category. Insights from comparisons.
Large scale
Categories
Channels & Retailers
120+ quota’d sample per category, per retailer = huge sample for robust benchmarks, eg 260,000+
All major categories covered plus segment level detail to specific sponsor request. Highly granular
Propose all major channels: Supers, Mass, Club, Drug, Dollar, On line and specialists. 20 + major national and regional retailers quota’d and reported. One source to measure your whole business.
A large scale, cost efficient quantitative Industry program benchmarking Categories with Shoppers across Channels and Retailers
ShoppersShopper interviewed on line within 24 – 72 hours of shop so highly recent. Each evaluates one category and one retailer for depth of insight
Cost efficientLarge savings intrinsic from standardized shared fieldwork process and automated reporting. 30% cost of equivalent custom research
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This is a “whole of store” program
+
c.80 Departments and Macro Categories Client-Defined
Categories / SegmentsChilled Food
Meals
Cooked Meats
Pizza
etc
Dry Grocery
Household
Fresh
Meals
Italian
Snack
Mexican
etc
Category coverage is built on sponsors needs based on a core platform of 80+
major categories
Benchmark across categoriesBenchmark to competitors
Track change
Often supplierled
© Copyright Advantage International/SMI
What might the USA launch sample look like?
We need to agree with sponsors which retailers and categories to cover.The minimum sample per retailer per category drives statistical robustness
Clients may choose to “boost” sample on bigger customers and categories
Category Coverage (tba)
Total Resulting SampleBanners
Per Category
Quota Sample Fresh and Chilled
Packaged Grocery/BWS Health and Beauty
Household and Gen Merch Coverage
Mass Walmart 150 20 35 30 15 100 15,000
Target 150 20 35 30 15 100 15,000
Club Costco 150 15 35 30 15 95 14,250
Sams 150 15 35 30 15 95 14,250
National Supers Kroger Corp (main banner) 150 20 35 30 15 100 15,000
Safeway Corp (main banner) 150 20 35 30 15 100 15,000
Ahold Corp 150 20 35 30 15 100 15,000
On LineComposite of Amazon,Walmart, Safeway, Target, Kroger 150 20 35 30 15 100 15,000
Drug CVS 120 0 20 30 10 60 7,200
Walgreens 120 0 20 30 10 60 7,200
Dollar Dollar General/Family Dollar 150 10 25 20 10 65 9,750
Regionals BJs 120 20 35 30 15 100 12,000
(to be agreed) HEB 120 20 35 30 15 100 12,000
Publix 120 20 35 30 15 100 12,000
ShopRite 120 20 35 30 15 100 12,000
Rite Aid 120 20 35 30 15 100 12,000
Kmart 120 20 35 30 15 100 12,000
Albertsons Legacy 120 20 35 30 15 100 12,000Delhaize 100 20 35 30 15 100 10,000
Meijer 100 20 35 30 15 100 10,000
Supervalu 100 20 35 30 15 100 10,000
Totals 22 2,730 256,650
© Copyright 2014 Advantage International/SMI
2014 UK Full Content Summary
1
Category DNA1a 1b 1c 1d 1e 1f
Category Role(Traffic/Spend)
Intentionality/Differentiation Framework
Shopping Mode(Grab Go vs Browse)
Fixture Impact (slower/faster)
Category Emotion (positive/negative)
Barriers to Purchase(customised)
2
Category Performance Indicators2a 2b 2c 2d
Overall Recommend Factor Importance Factor Performance (NF) Performance ImportanceMatrix
3
Path to Purchase3a 3b 3c 3d 3e 3f 3g 3h
Purchase Triggers(Planned vs
Unplanned)
What Planned Conversion(planned to buy)
Promotional Response
(incrementality)
Where bought from
POP improvements
Decision Hierarchy
(switch/walk)
Category substitutes
4
Consumer Dynamics4a 4b 4c 4d 4e 4f 4g
Who bought for When to be used
Expandability Repertoire Closed/open minded Private Label Trial Private Label Repeat
5
Shopper Profile5a 5c 5d 5e 5f 5g 5h 5i
Age/Gender Household Composition
HH income & occupation
Who shopped with
Trip Mission Frequency of purchase
(store/category)
Basket Spend Why chose this store
6
SI Category Mindset Model6a 6b
Category Fingerprint Cross Store Typologies
Plus the ability to add custom content for your categories
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You can mine in depth insights by slicing and dicing the “data cube”
Insights can be viewed through multiple Consumption and Shopper lenses to help pinpoint solutions, eg
Brand Vs Private Label
By Major Brand
Key Demographics
By Brand bought
By Shopper type
Retailer Loyalty
Category Spend
Mission
“How do shoppers of my brand compare?”
“Which shoppers are the biggest
opportunity?”
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Shopper Intelligence comes with a highly developed “toolkit” to support application
• National performance overview & rankings
• National brand rankings and reports
Overall National Reports
• Category and Channel Overviews
• Retailer Overviews
• Brand Reports
Automated PPT “decks”
• Category Scorecards
• Point of Purchase “Storyboards”
Issue based summaries
• Quick access to main data component
• Easy navigation by measure category, channel, retailer
On Line Dashboard
• Contains all Shopper Intelligence content
• Pre-prepared charts covering most analysis requirements
PPT libraries
• Ability to “slice and dice” the entire databaseTailored analysis
• On site consulting support to land the main insights included
Support
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Key Performance Indicators
Factor Summary Shopper Needs
SAVE MONEY When I want to save money, XXX is one of the main products in [RETAILER] that helps me
PRICE The prices are great on the XXX products I buy in [RETAILER]
OFFERS I often find good special offers on the XXX products I want to buy in [RETAILER]
QUALITY The quality of the XXX products I buy is great in [RETAILER]
PREMIUM When I buy premium XXX products in [RETAILER], I really notice the difference
HEALTH * The type of XXX I buy in [RETAILER] helps me with the health & well-being of me/my family
SOCIAL RESPONSIBILITY XXX does minimal harm to the environment and is made/sourced ethically
* Measured in relevant categories only
Factor Summary Execution
INNOVATION There are often appealing new ideas in XXX in (RETAILER)
ASSORTMENT [RETAILER] has a good range of XXX products
LAYOUT After I’ve found XXX in [RETAILER], I can easily find the type of XXX I want
OOSI rarely or never have to leave the store or switch to another type of XXX because [RETAILER] are out of stock of my preferred choice
ENJOY It is quite enjoyable and/or interesting to shop for XXX in [RETAILER]
We can add custom measures to individual sponsor business issues
Summary Satisfaction
Overall Satisfaction Recommend shopping for XXX at [RETAILER]
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Our Dashboard
A web portal that enables flexible analysis of the data base
How have clients used this data?
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Application of Shopper Intelligence
Applications: Develop Sell - in Track
Category StrategyWhat are the best bet growth drivers of the category?
Choose the right strategies
Win customersupport of our
proposals
Measure successover time
Joint Business PlansDelivering shopper goals in each customer?
Use key insights for each retailer to underpin plan
Unique data set for each retailer
Retailer specifictracking
Shopper MarketingHow do we leverage our brands and budgets most effectively in path to purchase ?
Identify most effective marketing strategies
Link to retailer goals and issues to gain
agreementMeasure results
Organization CapabilityPutting “Customer” and “Shopper” understanding into the heart of our thinking across the business
Key benefits summarized
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This large scale systematic approach provides a unique set of
benefits
All Categories and retailers measured identically with quotas
Consistent over time = Insight from trends
Highly developed toolkit = Fast insights for commercial users
Objective, shared platform with retailers = Achieves traction with buyers
Common fieldwork and reporting platform = Cost efficiency
Cross category & competitor benchmarking
=