Kantar Worldpanel - quantifying shopper missions

© Kantar Worldpanel

BECAUSE NOT ALL TRIPS ARE EQUAL

SHOPPING MISSIONS

2 © Kantar Worldpanel

SOME BASIC GROCERY SHOPPING FACTS

= x

AN AVERAGE HOUSEHOLD CONTRIBUTES THIS TOWARDS THE MARKET …

Source: Kantar Worldpanel, Total Grocery, Data to 52w/e 7 th July 2013

© Kantar Worldpanel3

Source: Kantar Worldpanel, Total Grocery, Data to 52w/e 7 th July 2013

AS SHOPPERS WE MAKE 4 DIFFERENT TYPES OF SHOPPING TRIP

BEHIND THE AVERAGES 1) NOT ALL SHOPPING TRIPS ARE EQUAL…

© Kantar Worldpanel4

NEARLY HALF OF ALL GROWTH THIS YEAR COMING FROM ONLINE AND DISCOUNTERS

BEHIND THE AVERAGES 2) TWO CHANNELS ARE SEEING SOME ALARMING GROWTH

Source: Kantar Worldpanel, Total Grocery, Data to 52w/e 7 th July 2013

5 © Kantar Worldpanel

ConvenienceDiscountersOnlineSupermarketsTotal Market

For Tonight

Main Shop

Replenishment

Specific JourneyValue share of channel

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BEHIND THE AVERAGES 3) EACH CHANNEL HAS A DIFFERENT MISSION PROFILE

Source: Kantar Worldpanel, Total Grocery, Data to 52w/e 7 th July 2013

6 © Kantar Worldpanel

SHOPPER MISSIONS HELPS TO UNDERSTAND WHAT’S REALLY GOING ON

THERE’S SOME INTERESTING FLOW BETWEEN THE CHANNELS

(major switching movements)

General flow from

supermarkets to online

and discounters Switching losses

Switching gains

The heartland of on-line is still main shopping. But Replenishment trips are growing on-line – as shoppers gradually see it as an acceptable channel for this

type of trip.

Future? - As retailers continue to try and lock shoppers in with ‘delivery subscriptions’, we should continue to see good growth from replenishment trips

in this channel

SINGLE BIGGEST MOVEMENT – shoppers shifting their main shopping trips from

supermarkets to online. Big movement with masses of potential as only 1/5 shoppers

shopped on-line last year (and they still spent 75% of their money in physical stores)

Future? - If this continues it’s really interesting to think about shift in relevance of

the ‘traditional mission in the traditional channel’

Replenishment trips in Discounters seeing relatively strong growth – gained directly from supermarkets

Future? - The only losses seen here are within the channel – shoppers up-trading to main shop. Signs are that the Discounters could be growing for a good

while yet

SECOND BIGGEST MOVEMENT – it’s been well documented that this channel has been performing well. But it’s significant that the bulk of the growth is from younger shoppers seeing it as a suitable

channel to shift their main shopping into.

Future? – Along with up-trading shoppers up within the channel then this could be big - with the growth set to continue

Whilst supermarkets are losing ‘Main Shop’ spend to other channels, within retained trips there is evidence of up-

trading shoppers from Replenishment to Main Shops. This in part might be due

to voucher schemes encouraging shoppers to reach a certain amount

Future?- Supermarkets are likely to stick to these strategies, whilst also

looking to something else to stem the flow to Discounters

What we all think of when imagining grocery shopping. But ……FACT: ‘Main shopping in

supermarkets’ is only 1 in 12 of the trips we make

Future?- Supermarkets will increasingly need to satisfy shoppers in smaller more specific trips as ‘main shop’ reduces share of supermarkets’

revenues

Source: Kantar Worldpanel, Total Grocery, Data to 52w/e 7 th July 2013

7© Kantar Worldpanel

THIS IS HOW SHOPPERS ARE SHOPPING…

BENCHMARKING PERFORMANCE

Source: Kantar Worldpanel, Total Grocery, Data to 52w/e 7 th July 2013

…IS YOUR CATEGORY MISSING AN OPPORTUNITY?

Year on year value performance of groceries, by mission and channel

© Kantar Worldpanel

Kantar Worldpanel Shopper Missions

Benefits

Create a category strategy based on how shoppers shop

Quantify missions where opportunities exist from a retailer, category and or manufacturer perspective

Ability to overlay missions with Segmentations and Market Structure groups – develop targeted strategies against them

Describe performance and talk to customers in a common language

Truly understanding brand/product/channel performance …

© Kantar Worldpanel© Kantar Worldpanel

Because not all trips are equal

SHOPPING MISSIONS

http://www.kantarworldpanel.com/en/Expertise

For further information please visit: