wgoir 13 april 2010 eng
TRANSCRIPT
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
What’s
Retailing?!
going on in
Which 50% of your promotions is really
effective?
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Conclusions
Promotion objectives differ between manufacturers and retailersBrand versus category and store consequences
Limited number of promotions result in Store Traffic
Promo pression is still growing!Prognosis GfK: 20% in 2015
Promotion results differ per target groupHouseholds go for the 1+1
HH met kinderenHH met kinderen
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Western wind creates more promotion pressure!
34%
USA
30%
UK
19%
SPAIN
15%
NL
17%
Germany
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Promotion pressure is growing!
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
NB: basis bestedingen (%)
supermarkten
116125 114 130 124 133 132 149 144
Promotion targets differ per retailer; adjust the promotion policy per retailer. Albert Heijn households with children for large shopping trips, C1000 traffic!
Ontwikkeling index
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Promotion share higher in small shopping trips; especially small shopping trips by households with children.
Huishoudens zonder kinderen / kleine shopping trip Huishoudens zonder kinderen / grote shopping trip
Huishoudens met kinderen / kleine shopping trip Huishoudens met kinderen / grote shopping trip
Basis: bestedingen, 2009
Promotie-aandeel 2009:14.5 (=100)
12.0 (=82)17.7 (=122)
15.7 (=108) 11.7 (=81)
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Theory of the ‘Sales Promotion Bump’
Sales Bump (uplift
)
Time (Source:Van Heerde en Neslin, 2008)
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Growth effects are positive for retailer and manufacturer. Timing effects only for consumers.
Sales Promotion Bump
(100%)
Growth Effects(33%)
Switch Effects(33%)
Timing Effects(33%)
(Source: Van Heerde en Neslin, 2008)
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Not all switch effects show equal results!
Switch Effects
CANNIBALIZATION CATEGORY SWITCH STORE SWITCHBRAND SWITCH
Suppliers’ perspective
Retail perspective
(Source:Van Heerde en Neslin, 2008)
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
2009 versie opvragen bij EFMI
PROF. LEEFLANG
(RUG)
TOM HEIDMAN(C1000)
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Prof. Leeflang: Avoid price promotions!
Avoid price
promotions
Nil effects on long term price promotions
Brand equity does not profit from price promotions
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Tom Heidman: Price promotions badly needed!
Price promotions badly needed;
Price promotions have a positive influence on price image;
Price promotions create traffic in stores!
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
What is meant by traffic?
Category
Traffic
Store
Traffic€ €
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Meat is the most import category to realize store traffic. However, this does apply to detergents. Yet, promotions on detergents could be of great interest to a retailer.
Store traffic
DetergetnsNational Brand: buy 2 pay 1
BeerNational Brand crate: Front or back page
MeatMinced ground beef: Discont 30%
0%
+ 5,2%
+ 5.7%
+ 3.4%
SoftdrinksNational Brand: Front page
+ 2,6%
Subject weeksSuccessful subject weeks:
Hamsterweken, Toeterweken, Euroweken
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Most traffic for the category is generated via National Brand and Multibuy promotions!
Category traffic: Detergents promotions
National brand promotions generate significantly more category traffic thanPrivate Label promotions
On average multibuy promotions generate more category traffic thanother promotion types like premium and single price off promotions
... but which type of multibuy promotion should I, being a retailer or manufacturer, bring in to achieve maximal category traffic?
+ 11.2% + 29.5%
+ 36.9%
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Buy 2, pay 1 promotions generate traffic for most categories. X for Y promotions are the least successful for multibuy promotions.
Category traffic: Detergents multibuy promotions: + 36.9%
X for Y promotion: e.g. 2 pieces for 5.99 + 29.9% (index 81)*
2e half price + 58.2% (index 158)
Buy 3, pay 3 + 48.5% (index 132)
Buy 2, pay 1 + 69.1% (index 187)
* Index 81: 29.9% (x for y) divided by 36.9% (overall multibuy)
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
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GfK Consumer Tracking What’s going on in Retailing – Laurent de Groof 15 april 2023
Category traffic: Detergents multibuy promotionsIndex per type of promotion: households with children vs overall
Households with children prefer 1 + 1 promotions
2e half price
HH with children
1+1
3 =2
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Conclusions
Promotion objectives differ between manufacturers and retailersBrand versus category and store effects
Limited number of promotions result in Store TrafficNational Brand: Frontpage
Promopressure is still growing!Prognosis GfK: 20% in 2015
Promotion results differ per target groupHouseholds go for the 1+1
HH met kinderenHH met kinderen
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Take aways
Understand the effect of your own promotions
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Take aways
Formulate the goals for your promotion policy together with your retailer
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
Take aways
Evaluate and show the expected effects once a year
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
ABSLaurent de Groof
Managing Consultant ABSTel: +31-(0)162-384 363
E-mail: [email protected]
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023
ABS proven to be
effective
ABS
Promotion Management
Media Management
Price Management
Target-Group Management
GfK Consumer Tracking
What’s going on in Retailing – Laurent de Groof 15 april 2023