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The materials herein are proprietary to Willard Bishop may not be copied, reproduced or disclosed in any manner without prior written permission from Willard Bishop. Copyright © Willard Bishop, 2013. All rights reserved. Any logos, design marks, company names or product names contained herein are the sole property of their respective owners.
Craig RosenblumPartner
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MANUFACTURERSRETAILERS
Willard Bishop | Snapshot
DATA PRODUCTS AND OPTIMZATION TOOLS
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DATA PRODUCTS AND OPTIMZATION TOOLS
Activity Based Costing Retail Pricing/Promotion Strategies
Localization Strategies Shopper Relevancy
eCommerce Channel Development
Collaborative Performance Product Positioning
Willard Bishop | Practice Areas and Productssample list only
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Everybody Please Stand Up
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Please sit down if you’ve ever purchased from:
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Please sit down if you’ve ever purchased from:
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Two Companies. 100% Market Penetration.A Gazillion Dollars.
How are we to compete?
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Only Two Ways to Compete
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PriceDifferentiation
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How to Differentiate
eCommerce
Service Levels
Quality
Assortment
Offers
Pricing
Formats Targeting
Prepared Foods
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Change in Behaviors
• Less brand loyal
• Very price-conscious…but willing to pay up sometimes
• Convenience-driven and very social/connected
• Fresh, N&O and Specialty appeal
• Still like their brick-and-mortar, traditional supermarkets
• Down-sizing households
• Eating less, but eating healthier
• Local products and community’s importance grow
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Shifting Formats Non-Traditional is the Only Growth Segment
Supercenter45%
Warehouse Club22%
Drug14%
Mass12%
Dollar6%
Military 1% +5.1%
Traditional Convenience Non-Traditional
90% 50% 48% 47%
8%
16% 15% 14%
2%
34% 37% 39%
Dollar Share by Channel*(Rounded)
+5.7%
+4.5%
+9.6%
+2.7%
+3.1%
Breakout of Non-Traditional with Growth Percentages
* Excludes eCommerceSource: Willard Bishop, The Future of Food Retailing; June 2013
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Get Ready for the Next TLA
Shopper Driven Merchandising
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Shopper Driven Merchandising Current Focus is on the How
Loyalty CardEmail
Snail Mail
In-Store
Personalized
Coupons
Mobile InternetCirculars
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The Value of SDM is in the “What”
• Pricing and Promotion
• Product Assortment
• Format
• Space Allocations
Household-Oriented Merchandising
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Leading Change Agents
• Understanding the Digital Consumer
• Social Media
• Responsive eCommerce
• Prepared foods
• Fresh, natural and organic
• Less brand loyal
• Limited assortment
• Extreme value formats
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The Millennial’s BFF
It takes 26 hours for the average person to report a lost or stolen wallet.
It takes 68 minutes for them to report a lost phone.
Did you know?
Source: Unisys
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Going Mobile
There are 6.8 billion people on the planet.
5.1 billion of them own a cell phone.
Did you know?
Source: Mobile Marketing Association Asia
4.2 billion own a toothbrush.
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Speed Counts
of all mobile searches result in action within one hour
The average person responds
to email in 90 minutes
The average person responds
to a text in 90 seconds
Source: CTIA.OrgSource: Mobile Marketer
70%
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Reach. Reward. Retain.
Mobile coupons get 10 times the redemption rate of traditional coupons
Source: Borrell
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New Rules of Engagement
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New Rules of Engagement | eMart
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New Rules of Engagement | Budweiser
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Beyond the Webvan Hangover
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eCommerce is Getting Its Grove On
Worldwide eCommercebusiness will double to $1.5 billion
In 2 years….
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eCommerce is Getting Its Grove On
eCommerce business will account for 8% of total sales
In 1 year….
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Ranking Kroger’ eCommerce Business
14 Trader Joe’s Co. $10,300,000
15 Giant Eagle, Inc. $9,900,000
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Other eCommerce Notables
100 Orders per WeekHigh Volume Stores
Filling 500+ Orders per Week
Offers Home Delivery
eCommerce we continue to evolve and be the price of poker for many retailers. It will put huge pressures on stores with large square footages.
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Omni Channel | It’s Everywhere
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&
Paper or Plastic?
ClickCollect
Inside
Curbside
Drive Thru
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Wheel or No Wheel?
• Warehouse
• Dark Store
• FedEx/UPS
• Direct from Store
• Locker/Kiosk
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Wait. I’m Confused!
• The endless aisle is growing
• Limited assortment formats are growing
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Without Confusion there is No Growth
Growth appears on the periphery
LimitedAssortment
EndlessAisle
TRADITIONAL SUPERMARKETS
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Growth is Still Viable, Provided….
LimitedAssortment
EndlessAisle
TRADITIONAL SUPERMARKETS
• You know where to look for opportunities
• You take the appropriate action once discovered
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Top 7 Growth Opportunities
+3.4% Traditional Grocery
88%Disruptive New Products
17%
11%
10%
10%
7%
5%
eCommerce
Fresh Format
N&O Non-Foods
Extreme Value
Prepared Foods
Limited Assortment
Sources: Willard Bishop 2013 Future of Food Retailing, eMarketer.com, Packaged Facts,Organic Trade Association, Store Brands Decisions, & Information Resources
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&
Additional Growth Opportunities
MergersAcquisitions
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Mergers & Acquisitions Will Increase and Become More Diverse
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Omni Channel
Integrate your path-to-market to capture sales
everywhere.
1
Disruptive NewProducts
Streamline your product
development process and
focus on truly disruptive offerings
3
Shopper Driven Merchandising
Use BI and shopper
insights to improve
merchandising decisions and
agility
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ValueEquation
Define your competitive pillars; then pursue and
promote them relentlessly
4
Growth in Traditional Channels
Prepared foods, private label and new formats will
continue to capture growth
5 Focus Areas for 2014
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Craig RosenblumPartner
[email protected]
847-756-3726
The mantra for 2014 is business wisdom,which is intelligence applied.