ua promo review q1 2012

Q1 2012 vs 2011

Promo Review of food retailers in 20’top

RETAILERS

QUANTITATIV KPI Slides

1- LEAFLETS & OPERATIONS 4 - 8

26 -46

4- PROMO MECHANISMES 18 -22

3- PROMO PRESSURE & SHARE OF VOICE 14 -17

2- TRADE STRATEGY 9 -13

QUALITY KPI 23 -25



•Promo Pressure: Index of Promo visibility for a retailer, a category, a brand or a format . •Share of Voice Index of Promo visibility for a retailer, a category, a Brand or a format , in relative value , versus competitors. The share of voice index of Hiper-com shows the promo activity of retailers in the most exhaustive way, taking into consideration the quantity of promotional operations, the quantity of SKU or WU in Promo, the commercial space (in m²) where the promotion was valid and the number of days during the month of the period when the promotion was valid. •Weighted Unit ( WU): One or more SKU from the same family, being on the same promotion. (many flavors for juice, many colors for shampoo, many sizes for textile) •Consumer advantages: All additional trade mechanisms supporting the promo price and mentioned on the promo leaflet. •Promo price: Price on the leaflet (should be different from the shelf price) •Virtual Price: Promo price –all consumers advantages •ND: National distribution For one retailer = number of stores participating in a promotion/ Total number of that retailer’s stores. •Negative Promo: (Index)= Qty of promo cheaper somewhere else ( at the same date) / total qty of promo (for the concerned retailer) •Perimeter of analysis: UKRAINE : CC, Hyper, Super (Analysis for the Top 20 Retailers of this category)

VOCABULARY

http://www.hiper-com.com/en/share-of-voice/

http://www.hiper-com.com/en/share-of-voice/


1- LEAFLETS & OPERATIONS

Q1 2012 vs 2011

PROMO OPERATION*

*A Promo Operation is a set of leaflets issued by a store network. This set could consist of one leaflet till 15 or more regional variations

Q1 2012 vs 2011

Promo Op* 2012 2011 Growth Nat./Reg.

Promo Op National 203 171 18,71 % 75,75 %

Promo Op Regional 65 44 47,73 % 24,25 %

The quantity of Promo Op is growing in 2012 , with a trend to regional editions

PROMO OPERATION*


PO National Q1 2012 Growth BILLA 11 -1 FOZZY 11 -2 NOVUS 5 -3 OSKAR 4 2 TARGET 12 10 VARUS 29 17 АМСТОР 7 -4 БУМ 13 7 ВЕЛИКА КИШЕНЯ 14 -4 ЕКО-МАРКЕТ 9 4

PO National Q1 2012 Growth Караван 2 0 КРАЇНА КРАЙ 0 -3 МАРС 4 -3 МЕГА МАРКЕТ 1 -1 МЕТРО 52 10 ОБЖОРА 2 1 ПЕРЕКРЕСТОК 7 0 СІЛЬПО 5 -6 ТАВРИЯ В 13 8 ФУРШЕТ 2 0

NATIONAL PROMO OPERATIONS

Q1 2012 vs 2011




PROMO OPERATION*


REGIONAL PROMO OPERATIONS* Promo Op REG. Q1 2012 Growth

BILLA 10 6 FOZZY 0 0 NOVUS 11 11 OSKAR 0 0 TARGET 1 1 VARUS 0 0 АМСТОР 0 0 БУМ 0 -9 ВЕЛИКА КИШЕНЯ 2 1 ЕКО-МАРКЕТ 10 6

Promo Op REG. Q1 2012 Growth Караван 0 0 КРАЇНА КРАЙ 5 5 МАРС 0 0 МЕГА МАРКЕТ 0 0 МЕТРО 4 -9 ОБЖОРА 7 -4 ПЕРЕКРЕСТОК 0 0 СІЛЬПО 0 0 ТАВРИЯ В 2 2 ФУРШЕТ 13 11

Q1 2012 vs 2011




5 TOP TRAFFIC LEAFLET (by Promo Pressure)

МЕТРО ФУРШЕТ МЕТРО АМСТОР МЕТРО

Number of WU 345 190 225 202 214

Number of Stores 31 103 31 24 31

Number of Days 16 14 14 14 16

Pressure of PO (Indices v/s others)

100% 68% 67% 63% 61%

Q1 2012 vs 2011

AVERAGE NUMBER OF PAGE / PROMO OP

1,0 p

1,5 p

2,6 p

2,9 p

3,8 p

3,9 p

4,0 p

4,1 p

4,6 p

4,8 p

5,6 p

6,0 p

6,5 p

6,5 p

8,5 p

8,5 p

12,1 p

13,6 p

16,0 p

20,0 p

СІЛЬПО

ТАВРИЯ В

VARUS

БУМ

ОБЖОРА

ФУРШЕТ

МАРС

NOVUS

ПЕРЕКРЕСТОК

ЕКО-МАРКЕТ

BILLA

ВЕЛИКА КИШЕНЯ

FOZZY

TARGET

OSKAR

МЕТРО

АМСТОР

КРАЇНА КРАЙ

МЕГА МАРКЕТ

Караван

=

-2,4 +3,9

-5,3

+0,4

+0,6 -7,1 +2

+0,5 =

The number of pages per Promo Leaflet is either stable either decreasing The most significant cost cutting have been done at Metro , Furchet , Oskar and Target. The average leaflet in 2012 in lighter that in 2011 !! So at the end less promotions..

=

-21,5

-9,5

+0,4 -1,3

+1,1 +2,7

-0,8 -3,9

-2,3

Q1 2012 vs 2011


2 - TRADE STRATEGY

Q1 2012 vs 2011

WU* TYPOLOGY (Brands, Private Labels, Unbranded )

* WU = one ore more SKU from the same family, visible on one picture (e.g. various flavors)

6,22% (-2,4%)

80,29% (+4,70%)

13,49% (-2,67%)

Private Label

Brand

Unbranded

Brands are over represented in the promo leaflets if we benchmark with other country. There is still room for the Private Label development . The reduction of non braded articles shows also a strategy of retailers to reduce the space for promotions without budget and to catch promo budgets via the leaflet editions.

Share of Brands for the medium leaflet

Q1 2012 vs 2011

WU* TYPOLOGY Retailers Nb of WU/OP (Q1 ‘12 – Q1 ’11) Private label /OP (Q1 ‘12 – Q1 ’11) Brand /OP (Q1 ‘12 – Q1 ’11)

BILLA 65 WU -12 6,3% +0,3% 79,6% -2,9%

FOZZY 100 WU +53 1,9% +0,1% 80,3% -3,4%

NOVUS 23 WU -6 6,5% -10,8% 79,8% +11,2%

OSKAR 60 WU -185 2,1% -2,6% 87,0% +16,9%

TARGET 24 WU -15 / / 95,2% +4,2%

VARUS 21 WU -27 / / 83,3% +8,3%

АМСТОР 133 WU +27 0,3% -0,4% 90,0% +2,3%

БУМ 24 WU +5 / / 78,2% +12,6%

ВЕЛИКА КИШЕНЯ 31 WU -4 2,8% +0,4% 89,0% +1,2%

ЕКО-МАРКЕТ 64 WU +6 6,2% -0,9% 80,0% +3,0%

* WU one ore more SKU from the same family, visible on one picture (e.g. various flavors)

Q1 2012 vs 2011

WU TYPOLOGY Retailers Nb of WU/OP (Q1 ‘12 – Q1 ’11) Private label/OP (Q1 ‘12 – Q1 ’11) Brand/OP (Q1 ‘12 – Q1 ’11)

Караван 148 WU +5 16,3% +10,0% 79,7% -10,2%

КРАЇНА КРАЙ 161 WU -55 / / 86,1% +5,4%

МАРС 43 WU +10 / / 93,6% -5,5%

МЕГА МАРКЕТ 81 WU +15 / / 100,0% +0,8%

МЕТРО 71 WU -35 11,8% -3,1% 74,6% +6,0%

ОБЖОРА 42 WU +17 13,2% +4,0% 78,1% +4,4%

ПЕРЕКРЕСТОК 44 WU +0 / / 79,7% +2,3%

СІЛЬПО 1 WU -10 0,0% -18,7% 100,0% +43,9%

ТАВРИЯ В 16 WU -50 14,9% +4,4% 53,1% +0,8%

ФУРШЕТ 32 WU -68 4,4% +2,1% 85,2% -1,8%

WU* TYPOLOGY

* WU one ore more SKU from the same family, visible on one picture (e.g. various flavors)

Q1 2012 vs 2011

AVERAGE PRICE (virtual) AVERAGE VIRTUAL PRICE (Regional and Federal Promo price)

* Price in UAH

154,8 - 128,7

50,0 +31,6 42,8

- 70,1 41,6 +9,4 34,9

+1,7 34,9 +1,9

31,9 +5,6

30,2 +1,2

29,9 +10

29,4 - 6,9

28,5 - 20,1

26,4 +0,3

25,9 - 3,9

25,3 +4,6

24,8 +4,6

23,1 +5,4

20,8 - 0,1

20,6 +2

17,8 +2

16,2 +0,5

МЕТ

РО

СІЛ

ЬПО

FOZZ

Y

КРА

ЇНА

КРА

Й

Кар

аван

МЕГ

А М

АРК

ЕТ

ПЕР

ЕКРЕ

СТО

К

АМ

СТО

Р

ЕКО

-МА

РКЕТ

TAR

GET

OSK

AR

ТАВР

ИЯ

В

ФУ

РШЕТ

NO

VU

S

ОБЖ

ОРА

BILL

A

БУМ

МА

РС

ВЕЛ

ИК

А К

ИШ

ЕНЯ

VA

RU

S

The average virtual Price value per Promo Op is between 40 & 20 UAH Metro is a specific case because of B to B expensive promotions not benchmark able with other players. Fozzy & Oskar reduce Price Level of more than 50% to match with the global price perception

Q1 2012 vs 2011


3 – PROMO PRESSURE & SHARE OF VOICES

Q1 2012 vs 2011

PROMO PRESSURE Growth *

*The Promo Pressure growth is calculated in WU promoted x commercial m². A growth < 0 means a mix of less WU promoted and/or less commercial m².

The promo pressure of every retailer's:

-Supermarket: -3,62% -Hypermarket: -19,70% -Wholesale +80,16% - Cash & Carry: -20,17%

- 15,14%

Growth v/s Y-1

Q1 2012 vs 2011

The Promo Pressure Growth is Negative v/s Y-1, But we have seen previously that the number of Promo Operation was growing. This situation result of less pages per promo operations , as we have seen in slide 9. The big player reduce the number of pages, by consequence the number of promo. The growth of edition didn’t compensate the pages downsizing, and at the end the promo pressure growth is negative. The phenomenon is similar for all formats except for Wholesaler, but their weight is not enough to change the trend.

PROMO PRESSURE* GROWTH TOP 20 FOOD RETAILERS

2,29%

79,45%

58,13%

-50,70%

375,31%

16,42%

-20,00%

15,11%

-19,53% 124,91%

1,35%

19,62%

-23,92%

-22,15%

-32,57%

23,19%

0,64%

-96,50%

-31,33% 23,84%

BILLA

FOZZY

NOVUS

OSKAR

TARGET

VARUS

АМСТОР

БУМ


ЕКО-МАРКЕТ

Караван


МАРС


МЕТРО

ОБЖОРА


СІЛЬПО

ТАВРИЯ В

ФУРШЕТ

*The Promo Pressure growth is calculated in WU promoted x commercial m². A growth < 0 means a mix of less WU promoted and/or less commercial m².

The detailed promo pressure growth by player shows the correlation between number of pages downsize and promo pressure reduction. .

Q1 2012 vs 2011

Share of voice of retailers

0,10% -0,1%

0,20% -0,10%

0,20% -4,3%

0,20% -0,1%

0,30% +0,1%

0,50% -0,4%

0,50% +0,1%

0,60% +0,6%

0,70% +0,5%

1,00% +0,2%

1,10% +0,6%

1,10% +0,5%

2,40% +1,2%

3,10% +1,7%

3,20% +0,9%

3,40% +2%

3,70% +0,5%

4,30% -0,5%

14,40% -1,4% 58,70% -1,9%


МАРС

СІЛЬПО

ТАВРИЯ В

БУМ

OSKAR



TARGET

Караван

NOVUS

ОБЖОРА

VARUS

FOZZY

BILLA

ЕКО-МАРКЕТ

ФУРШЕТ


АМСТОР

МЕТРО

100%=Total FOOD Retailers Q1 2012

The consequence of this strategy, changes, for the first quarter of 2012 the ranking of the players in terms of share of voice If Metro , Amstor and Kichienia , could keep their leading position because a limited down sizing , regarding their last year share of voice, all other player like Oskar , Tvria , Cilpo Mars and Mega are joining the end of the share of voice ranking. The most important increase is showed by Eco-Market with +2% The most important decrease is showed by Cilpo with -4,3%

Q1 2012 vs Q1 2011

4- PROMO MECHANISMES


Q1 2012 vs 2011

PROMO MECHANISMS *

*Promo Mechanisms are all added advantages given to shoppers like BOGOF, loyalty programs, presents, special discounts, gratuity

In 2012 almost 60%of promotions are supported by one or more Promo Mechanism. This trend growth about 12% versus last year

PRODUCTS WITH CONSUMER ADVANTAGES

Q1 2012 Growth v/s Y-1

57,05 % +12,56 %

Q1 2012 vs 2011

PROMO MECHANISMS*

2,82% +1,02%

0,12%

0,64% +0,41%

2,42% -2,41%

0,79% +0,31%

3,11% +0,95%

38,55% +3,95%

18,76% +4,86

Бесплатно

Игры и конкурсы от производителей

Подарок

Шоковая цена

Акции по бонусной системе

Виртуальный лот

Немедленная скидка

Перечеркнутая цена


57,05 % +12,56 % Q1 2012 Growth v/s Y-1

PROMO WITH CONSUMER ADVANTAGES

PRODUCT WITH CONSUMER ADVANTAGES BY TYPE OF MECHANISMS

Q1 2012 vs 2011

What kind od Promo Mechanisms are used, and how did their frequency growth v/s last year.

PROMO MECHANISMS *

Q1 2012 Evol./N-1 Бесплатно 2,82% + 1,02% Бесплатно (+) 2,09% + 0,91% Бесплатно (включено) 0,72% + 0,10% Игры и конкурсы от производителей 0,12% - Подарок 0,64% + 0,41% Шоковая цена 2,42% -2,41% Акции по бонусной системе 0,79% + 0,31% Возврат бонусных денег в виде бумажных купонов 0,20% + 0,10% Накопление баллов за покупку 0,20% + 0,16% Отрезной купон 0,38% + 0,04% Виртуальный лот 3,11% + 0,95% 2 по цене 1 1,08% + 0,11% 3 по цене 2 1,01% + 0,65% Другие виртуальные лоты 0,10% -0,11% Немедленная скидка + виртуальный лот 0,92% + 0,30% Немедленная скидка 38,55% + 3,95% Немедленная скидка по карте покупателя 1,24% -1,44% Стандартная немедленная Скидка 35,63% + 6,29% Счастливые часы 1,67% -1,03% Перечеркнутая цена 18,76% + 4,86%


PRODUCT WITH CONSUMER ADVANTAGES BY TYPE OF MECHANISMS

Q1 2012 vs 2011

PROMO MECHANISMS*

39,32% +12,03%

90,11% +36,59% 86,10%

+1,83%

97,53% +2,08%

4,91% -2,79%

84,88% -7,24%

73,85% -21,84%

92,89% -5,47%

67,20% +51,82%

83,28% +2,62%

59,28% -5,92%

91,48% -1,35%

99,09% +0,23%

35,70% -6,12%

58,48% +17,33%

86,81% +9,51%

98,39% -0,64%

100,00% +16,26%

99,17% +1,89% 95,21%

+4,19%

Products with consumer advantages by retailer


Q1 2012 vs 2011

QUALITY KPI


Q1 2012 vs 2011

INDICATOR OF PROMOTIONAL AGRESSIVENESS

0,09% -2,04%

0,25% -0,21%

0,33% -0,77%

0,42% -4,08%

1,23% 1,23%

3,05% +2,86% 20,06% +12,37%

29,46% +28,86%

29,79% +6,60%

32,07% +11,38%

38,01% +7,93%

66,85% -22,80%

67,46% +6,27%

72,57% -6,15%

75,20% +75,20%

75,33% +0,03%

80,00% -0,49%

81,07% +44,62%

82,56% +3,04%

94,84% +1,64%

FOZZY


БУМ

OSKAR


ЕКО-МАРКЕТ

TARGET

ТАВРИЯ В

ФУРШЕТ

МЕТРО

МАРС

NOVUS

Караван

BILLA

ОБЖОРА

VARUS

СІЛЬПО

АМСТОР



The indicator of promotional aggressiveness is the rate of use of the most aggressive promo mechanism: -Virtual lot (e.g. 2 products for the same price) - Standard Immediate Discount

Q1 2012 vs 2011

INDICATOR OF READABILITY

15,3

13,2

11,8

11,5

11,1

10,9

10,7

10,5

9,7

8,3

8,2

8,1

8,1

7,4

7,0

5,7

5,1

5,1

3,7

1,0

FOZZY

ЕКО-МАРКЕТ


BILLA

ОБЖОРА

АМСТОР

МАРС

ТАВРИЯ В


МЕТРО

VARUS

ФУРШЕТ

БУМ

Караван

OSKAR

NOVUS



TARGET

СІЛЬПО

(Number of WU/Pages)

Q1 2012 vs 2011

RETAILERS

Q1 2012 vs 2011



BILLA


FOZZY


NOVUS


OSKAR


TARGET


VARUS


АМСТОР


БУМ


ВЕЛИКАКИШЕНЯ


ЕКО-МАРКЕТ


КАРАВАН


МАРС


МЕГАМАРКЕТ


МЕТРО


ОБЖОРА


СІЛЬПО


ТАВРИЯ В


ФУРШЕТ

Thank you for your attention. For questions or live comment of these results, feel free to contact us:

Hipercom Monitoring is also available in : Russia, Kazakhstan, Poland, Romania, Hungary, Serbia & Croatia

Giovanni COLIN Account manager - Ukraine [email protected] +380 (0)930007335

HiperCom Monitoring-Kiev ул. Ярославов Вал, дом 13/2, литера «Б», офис 3, Киев

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ua promo review q1 2012

Business

promo price

promo op regional

negative promo

wuin promo

promo mechanismes18

quantity of promo op

promo op national203

regional promo operations