Planning The Path to Purchase Introductory Mee-ng: Shopper engagement in the Convenience Channel Presented to: Richard Tyler Monday, 8 July 13
Planning The Path to Purchase
Introductory Mee-ng:Shopper engagement in the Convenience Channel
Presented to: Richard Tyler
Monday, 8 July 13
• Neon Marcomms team worked with Sue McVie at CCE for several years
• Known for channel experBse, parBcularly out of home
• We helped to turn channel plans into customer plans across all channels
• Successful acBviBes run in convenience mulBples, Symbols, Delivered wholesale, C&C, Roadside and Independents for naBonal promoBons like Coke Olympics or Bud World Cup or smaller customer markeBng iniBaBves
• Many of the principles that work in one channel can be adapted and applied successfully to another
• Our team first applied an Occasion-‐based strategy to the on trade, but have since related this approach to shopper acBvaBon in grocery, and now the convenience channel
Introduc-on
Planning The Path to Purchase
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• Category leaders in delivered wholesale of chilled food brands
• Unique ‘Sale or return’ policy, and low minimum order quanBBes for small stores
• 400 Kerry Fresh vans, 26 depots supply 14,000 customers
• MulBple convenience supplied via their own distribuBon depots?
• Providing customers with experBse and quality markeBng support
Kerry Foods
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• Neon Marcomms was born from top 10 BTL agency Dynamo (now Wax CommunicaBons) We specialise in big promoBonal campaigns for big brands, always with a strong consumer insight at the heart. We always ensure while Planning The Path to Purchase (our agency mantra ) that people are moved enough to buy the brands we acBvate.
• Our thinking became Shopper – orientated in the 1990’s as retailer power in the UK increased. Clients relied on us to develop strategies that would make it more likely that their acBvity would be supported in store.
• We like to apply the same rigorous approach to all channels of distribuBon
• Our experience covers 14 out the top 20 grocery brands
• We’ve worked on Cheese Strings, and pitched on Rustlers!
Who we are
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Planning The Path to Purchase
Some of our work
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Monday, 8 July 13
Planning The Path to Purchase
• Channel will conBnue to outperform the wider UK grocery market, and will be worth £42.6bn in 2015 and £46.2bn by 2018, up nearly £11bn from 2013.
• Convenience mulBples were the fastest growing segment in the 12 months to April 2013, with sales up 8.4%. Given the opportuniBes in the channel, big supermarket chains are expanding their convenience store estates and using their scale to provide shoppers with afracBve product ranges and consistent in-‐store service. Some key recent developments include:
• Sainsbury’s announced it will operate more convenience stores than supermarkets next year and is planning to open around 100 new convenience stores per year
• Tesco’s key trading priority is to reach the shopper by becoming the best mulB-‐channel retailer and to tailor ranges accordingly. Tesco recently announced that One Stop, a wholly-‐owned subsidiary of Tesco, is to begin trialling a franchise model with independent retailers
• Morrisons is opening its first M Local stores (see our recent store visit) and is planning to have 100 M local convenience stores open by January 2014, primarily in London
• Asda is commifed to building a world class mulB-‐channel business. Since its acquisiBon of Nefo's UK business, Asda has been learning how to get the most out of its expanding porjolio of small format stores -‐ stores are now organised to meet the needs of convenience, 'top-‐up' and 'stock-‐up' shoppers
The opportunity in Convenience
Planning The Path to Purchase
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There are 2 main opportuniBes outside of Grocery
Main non-grocery
opportunities
30% c-store
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• In the US 57% of shopping trips are occasion-‐based
• Important to understand the difference between consumers and shoppers
• Research helps idenBfy TRIP MISSION and CONSUMPTION
• IdenBfy Need -‐> Basket Analysis -‐> Deliver Shopper-‐centric soluBon
Consumer:
How, where, why dothey consume / use?
Consumer insightsBrand MktingR&D
Marcomms Innovation
Shopper:
How, where, why dothey shop?
Shopper insightsShopper MktingAccount Teams
In-storePath 2 PurchaseInfluencers / tactics
TRIP MISSION
CONSUMEROCCASION
Activation Opportunity
Key to Success: Understand Shopping Occasions + Offer relevant soluBon + Engage along P2P = Increased traffic and Basket Shop
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Trends driving growth• Our lives keep gepng busier• Grazing / snacking replacing tradiBonal meals• Snacking in convenience set to grow by 29% in
next 5 years• 75% of consumers say that they aspire to
healthy eaBng• ReducBon in disposable incomes has increased
adult lunch boxes• Purchases are impulse-‐led, (though visits are
osen driven by a primary purchase need)• Retailers stock ranges that meet consumer
occasions; lunch box, aser school, at work, post-‐work, on the move, sharing with family / friends
• Recognised quality brands outperform the rest• Shopper acBvaBons also linked to key
occasions
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• ConBnue to enhance and support Kerry Foods’ Category leadership in Chilled by providing retailers with insights, experBse and partner with them to acBvely grow their business
• We have done this in the on-‐trade for S&N Retail, and in workplace contract catering for
The opportunity in Convenience
CORE OCCASIONS -‐> KEY CONSUMER GROUPS
WORK WITH STORES TO BUSINESS PLAN AROUND THEIR STORE’S KEY GROUPS
ACTIVATION PLAN TAILORED TO STORE
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Our Approach
To understand:
• What your vision is
• Where you have got to
• How you work with your customers / structure / resource
• Where you believe that you can make a difference
• What role technology can play
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Occasion led à Ac-va-on
• Work with retail partners to give store managers the right tools / templates to grow their sales of chilled foods
• They work with your sales team and their line management to select the core occasion-‐based consumer groups from your definiBve list
• We create business planning templates that can be adapted to every store• Plans show how to set targets for a realisBc incremental sales uplis, which is agreed• The plan helps them to create the right ac8va8on plan for those key consumer
groups / occasions• AcBvity to a certain value (depending on that customer’s budget, and the size /
opportunity) is then selected / adapted from a generic matrix• Gives you control and economies of scale
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Business planning tools Retailer Compliance
• IncenBves and rewards for performance versus targets
• Regular review of performance / results to date
• Plan to cover: Merchandising & Display; planograms, signage, Hotspots, occasion drivers, ease of shop Quality; Freshness, Cleanliness, Equipment Price; VFM PromoBon; Occasions, seasonal, support naBonal on-‐packs
• Measured / monitored by merchandisers or mystery customers where possible
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Contact details:Neon Marcomms Ltd
12 Melcombe PlaceMarylebone
London NW1 6JJTel 0203 4273232
email [email protected]
Planning The Path to Purchase
Monday, 8 July 13