fact: in-store decision rate

Ready to go

shopping ?

May 11th 2010

Contents

Ready to go shopping ?

The power of ISDR ?

Do all roads lead to the same purchase ?

What is the ISDR made of ?

Net ISDR : a new concept !

A-brands : aim at the heart !

Ready to go

shopping ?

Smaller, faster and easier…

4Th December 2009 : “Delhaize plans to triple, in the

next 3 years, the number of store openings of new formats”

http://www.okay.colruytgroup.be/okay/static/fr.shtml

Reduced shopping times !

« The average number of minutes at the shop floor decreased, so also exposure time of brand category decreased »

Consumer Shopping Habits Survey 2008 ; Executive Summary ; June 2009

43%57%

Total shopping trips2007

59%41%

Total shopping trips2008

0 to 15 minutes shopping trips

More than15 minutes shopping trips

http://www.gfk.com/ps_benelux/index.nl.html

Do I have time to spend for shopping ?

(18% : don’t know)

National universe ; PRP 18-54 years

They enjoy taking their time to shop and explore the

different products on the shelves

They try to spend as little time as possible at the

store% 38 44 %

The shopper’s sprint !

L’Art du marketing ; E-learning HEC ; Barbara E. Kahn (University of Miami School of Business) ; January 2010

“It takes about 12 seconds between the

moment a shopper approaches a linear and the moment he puts the

article in his supermarket trolley, and he considers on average

only 1,2 brand”

“The speed with which he decides thus lets think that his choice is founded on his memory”

12 seconds…

The power of ISDR ?

Instore marketing : who knows ?

International network (1936) Belgium : Popai Benelux

Knowledge centre for ‘Marketing at-Retail’ Collect up-to-date information Make the medium ‘Instore’ measurable & plannable

market research (surveys), courses & trainings, meetings & publications

Independent association (membership) Pop suppliers, retailers, communication & consultancy

agencies & brand manufacturers

new logo !

The In-Store decision rate

Consumer Shopping Habits Survey 2008 ; Executive Summary ; June 2009

Product & brand are planned

One has planned a certain type of product, but not a specific brand

A certain brand is planned but in the end another brand is bought

A product is bought that was not mentioned as « planned » before entering the store

GENERALLY PLANNED

SPECIFICALLY PLANNED

SUBSTITUTE

UNPLANNED

In-Store decision rate

(ISDR)

% of purchases where final

decision is made in the store

36% (average FMCG)


Do all roads lead to the

same purchase ?

The Iast shopping trip in Fact - (questions)

STEP 1

Types of products

bought during the last

shopping trip

Amongst the 40 FMCG

categories

STEP 2

PLANNED PURCHASES

Types of products bought

& planned before the

visit in store

STEP 2.1

Brand chosen in advance &

purchased brand

Or

Brand chosen in advance & other brand

bought

Or

Brand chosen in store

STEP 2.1.1


& usually chosen

for that kind of purchase

Or


& not usually chosen

but attractive in store

The Iast shopping trip in Fact - (questions)

STEP 1

Types of products

bought during the last

shopping trip

Amongst the 40 FMCG

categories

STEP 3

UNPLANNED PURCHASES

Types of products bought

& not planned before the

visit in store

STEP 3.1

Purchased brand is probably the brand

which would be bought in case of planned purchase

Or

Purchased brand is probably not the

brand which would be bought in case of

planned purchase

Or

Don’t know

Purchased productsPlanned purchases

Planned brand + brand bought

Planned brand + other brand bought

Unplanned brand

Usual brand

Other brand

Unplanned purchasesUsual brand

Other brand

Don’t know

The last shopping trip in Fact - (plan)

Brand « before »


Usual brand

Usual brand

Brand « in store »

Planned brand + other brand

bought

Other brand

Other brand

What is the ISDR made of ?

How strong is the influence of the POS ?

GENERALLY PLANNED

SPECIFICALLY PLANNED

SUBSTITUTE

UNPLANNED

TOTAL IN-STORE DECISION RATE 36%

-

-

-

- 27%

3%

13%

56%

44%





Unplanned brand

Usual brand

Other brand


Other brand

Don’t know

Also an ‘ISDR’ in Fact !

Unplanned purchases


bought

Unplanned brand

Popai’s ISDR

GROSS ISDR

Substitute = 3%

Unplanned = 27%

Generally planned

= 13%




Unplanned brand

Usual brand

Other brand


Other brand

Don’t know

One step further in Fact !

Brand « before »


Usual brand

Usual brand

Brand « in store »


bought

Other brand

Other brand

NET ISDR

NET ISDR : a new

concept !




Unplanned brand

Usual brand

Other brand


Other brand

Don’t know

Moment of brand choice ?

56%

9%

20%

Brand « before » = 86%

73%

27%

3%

4%

2%NET ISDR= 9%

National universe ; PRP 18-54 years ; base = total purchases during the last shopping trip ; average 40 FMCG categories

ISDR & In-Store activation : do not confuse !

Planned Notplanned

Brand before

Brand in store

PurchasesNET ISDR

GROSS ISDR

National universe ; PRP 18-54 years ; base = total purchases during the last shopping trip

79% 21%

71% 29%

58% 42%

89% 7%

86% 9%

80% 11%

33%

45%

59%

DRINKS 79% 21% 34% 89% 7%

Average 73% 27% 44% 86% 9%

SNACKS 58% 42% 59% 80% 11%

Average 40 FMCG

A-brands : aim at

the heart !

I keep my choice in mind !

Average 40 FMCG

Low planned categories

Middle planned categories

High planned categories

9.0%

9.8%

8.5%9.6%


Average of planned

purchases

73% 80%65%45%

NET ISDR

A-brand or not, I decide once and for all !

Average 40 FMCG

Low A-brands categories

Mid A-brands categories

High A-brands categories

9.0%

9.7% 10.2%

8.1%


Preference for A-brands

61% 77%55%29%

NET ISDR

How do the FMCG sectors behave ?


Vitamins & mineral salt

products

Pils beer

Probiotic drinks

Cola drinks

Chocolate

Breakfast cereals

Milk

Coffee

Hair styling products

Body care products

Face care products

Stain remover

Chips

Cheese

Yoghourt

Canned food

Deep-frozen food & ready

meals

Fruit juice

Special beers

Soda

Still mineral water

Washing up products

Deodorant

Biscuits

Sugar candy

Household products

WC products

Soap & shower gel

Shampoo & conditioner

1st quintile

2.1%2nd quintile

5.9%3rd quintile

8.2%4th quintile

11.9%5th quintile

15.8%

Jam

Candy bars

Ice-cream

Ready desserts

Dressings

Oil & butter

Energy drinks

Toothpaste & buccal hygiene

Tissues

Washing products

Toilet tissue & kitchen roll

Average NET ISDR

PRE-SHOPPING STIMULI

I’ve bought things that were not planned !

National universe ; PRP 18-54 years

I try a product for which I saw or heard an advertising

Attracted by a new variety, a new taste, …

The person accompanying me asks to buy a product

5%

5%

9%

29%

31%

33% 42%

36%

34%

Factors externalto the store

Attracted by the way a product is showed up…

Guided by the senses through the shelves

Attracted by a special action in store…

2%

5%

7%

13%

15%

22% 29%

20%

15%

Factors related to the point of sale

Attracted by an in-store promotion

0%

0%

19%

0%

0%

53%

Total

72%

Price / benefitVery regularly

Regularly

In a few words…

Shopping process is speeding up…

ISDR (Popai) : let’s put it in the right perspective ! based on a majority of unplanned purchases

NET ISDR based on brand’s choice in store planned or unplanned : people choose « at home » ! no matter the type of product (A-brand or not) FMCG sector is a more important factor

Creating a preference for the brand

is fundamental !

Conclusions