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Re-inventing Shopper Insight
Elena Dionysiou – Key Accounts Regional Manager, South Europe
Bucharest 12th OctoberTrade Round Table – Magazine Progressiv
Understanding the role of brands in the changing Retail landscape in Romania
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Agenda
The Marketing Revolution
Understanding the role of brands in the changing Retail landscape in Romania
Key findings from shopper insight research in Romania compared to CEE
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Why is it important to studyshopper behavior in the store area?
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AvailableConsumer Demand
1945 - 1995 Since 1995
Few Outlets:Supermarkets, Drugstores
Many Outlets:Hyper, Super, Drugstores,Discounters, Convenience, Perfumeries, Dept Stores,
Pharmacies
Learnings from the European FMCG marketing Revolution A lasting
situation
Reasonable Number of Products
Expert Shoppers Selective Demand
Overabundance of Products
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Over abundance of FMCG products
400,000 Sku's
20 to 50 Sku's
Number of FMCG Items Available
Number of FMCG Items in an Hyper
Number of FMCG Items Purchased Annually
Number of FMCG Items in a Shopping Basket
20,000 to 50,000 Sku's
300 Sku's
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2
Channel /
Store
Shopper
IRI concept: need to understand the consumer’s three roles
CHANNEL/BANNER MARKETING
STOREMARKETING
6- Perceptions and expectations towards store and shelf space organisation
7- Role of the Brands in the Purchasing behaviour process and Purchase Hierarchy Decision
8 - Perception and understanding of Packaging9 – Role of Brands in new Product Launch
PRODUCT MARKETING
4- Shopping mission5- Role of Brands in
Stores/Channel selection (Depending: assortment, services, prices…)
1- Needs/wants states2- Perception, definition and
segmentation of the category3- Role of Brands in planning for
shopping
CONSUMER
End User1
3
Category /
Product
Buyer
Offer Marketing
Demand Marketing
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CUSTOM STUDYCUSTOM STUDY
Strategic + tactics
Answers client specific issue
Proprietary for each client
At segment levelAt segment level
At brand levelAt brand levelSpecific questionnaire and guides focussing on Client’s issues
SYNDICATED STUDYSYNDICATED STUDY
Strategic
Answer a general theme
Shared by all clients
At FMCG / category level
Similar questionnaire for all categories on main purchase behaviour characteristics.
How IRI Process for Shopper research works ?
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Innovative syndicated studies for over 12 years
FranceSpain
2003
FrancePortugal
20001997
France
1994
France
2005
USA
2004
UKItaly
GreeceGermany
Netherlands
Over 100,000 shoppers observed and interviewed in more than 100 categories in the past 12 years
2006
HungaryCzech Rep
Poland
By 2007
UAERussia
RomaniaBulgariaSerbia
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A deep understanding of the Shopper with a unique methodology and a wide Shopper Panel in Europe, US, Eastern Europe and Middle East:
Over 100,000 shoppers observed and interviewed in more than 100 categories in the past 12 years
Country benchmark
Channel benchmark
Category benchmark
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More than 80 Manufacturers have participated
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More than 80 Retailers took part in the Research
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The Marketing Revolution
Understanding the role of brands in the changing Retail landscape in Romania
Key findings from shopper insight research in Romania compared to CEE
Agenda
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Background: Retail landscape in RomaniaThe retail business structure has started to change in
Romania.
While consumers continue to shop at the lower end of the trade, the modern trade is gaining continuously in importance
There is rapid shifting in urban areas from smaller formats to larger formats. This is due to rapid expansion of the modern trade combined with a reduction of the traditional trade universe
Questions : For Manufacturers, how to enhance the role of Brands
and what is the appropriate assortment in each format ?
For Retailers, what is tomorrow’s winning format ?
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Understanding the role of brands in the changing Retail landscape in Romania
2
Shopper
PRODUCT MARKETING
CONSUMER
End User1
3
Buyer
Reasons for Shopping at discounters
- Shopping mission - Role of the Brand in Stores/Channel selection (Depending: assortment, services, prices…)
– Purchase habits – Assortment– Brand– Private labels – Pricing– Impact of Promotion
At Channel / Retailer levelAt Category / level
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Benefits of the research
How to enhance the role of Brands and what is the appropriate assortment in each format?
Understand the place of each category within each shopping mission taking the shopper to each individual channel / retailer
Specific channel shopper’s insights
Role of the brands in attracting shoppers to stores
Role of promotions: recruit or build loyalty
Role of price
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Methodology1. Focus Groups
Respondents:Women between 25 and 45 years old with at least one child living at home Should be responsible for carrying out the main shopping for the family
Bucharest, Timisoara, Brasov, Costanta
2. Quantitative InterviewsFace-to-face interviews
Respondents:at the exit of the stores purchased at least 2+ shopping bags
1200 interviewsHypermarketsSupermarketsCash & CarryDiscountersTraditional GroceryPharmacies
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General Report:Perception of the different channels: general image, quality offered, assortment, pricing
Expectation towards the different attributes for each channel: offer, brands, private labels, services
Shopping habitsType of Shopping mission (routine, immediate need, specific purchase, top up)Frequency of coming to the storePurchasing planning (Shopping list)Time spent to do the shopping Other channel / stores visited
Store preferencePreferences / Criticism / Reasons for shopping in specific stores
Shopper’s demographics per channel: age, gender, occupation, family size
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Specific Category insights:
Where do shoppers normally purchase specific categories?
Do shoppers plan in advance to buy branded products?
For planned categories, what is the main criteria shoppers know before reaching the store? (price, brand, fragrance, quantity etc)
Main reasons for buying a product (price, brand, fragrance, quantity etc)
What do shoppers do if they cannot find the product / brand they want?
Preference in buying retailers own brandvs. well-know national / international brands
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The Marketing Revolution
Understanding the role of brands in the changing Retail landscape in Romania
Key findings from shopper insight research in Romania compared to CEE
Agenda
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Key Shopper Insights
Perception of the different channels in Romania
Store preference
Shopping habitsType of Shopping mission (routine, immediate need, specific purchase, top up)Frequency of coming to the storeTime and money spent to do the shopping Purchasing planning (Shopping list)
Romania Scorecard – Some Categories
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• Seen as conveying an approachable and familiar atmosphere in a simple manner. Appreciated as being common and popular/ being there every time one needs something
• In the same time, seen as keeping track with times/ not remaining behind with anything
• Seen as conveying an approachable and familiar atmosphere in a simple manner. Appreciated as being common and popular/ being there every time one needs something
• In the same time, seen as keeping track with times/ not remaining behind with anything
Modern/ spontaneous character
Special/ Sophisticated
Common/ Popular
HYPERMARKETHYPERMARKET
SUPERMARKETSUPERMARKET
• Seen as implying a very modern and up-to-date shopping style, since offering a very large range of products and brands, well-disposed on the shelves, in a single place
• Seen as offering a warm and pleasurable atmosphere to do shopping. Perceived as being very close to people, permanently coming with appealing offers
• Seen as implying a very modern and up-to-date shopping style, since offering a very large range of products and brands, well-disposed on the shelves, in a single place
• Seen as offering a warm and pleasurable atmosphere to do shopping. Perceived as being very close to people, permanently coming with appealing offers
• Perceived as being rather exclusivist/ addressing a small segment of consumers
• Not very approachable/ seen as rather distant and rigid
• Perceived as being more preoccupied by their personal success than to satisfy clients’ needs or to create a pleasant atmosphere
• Perceived as being rather exclusivist/ addressing a small segment of consumers
• Not very approachable/ seen as rather distant and rigid
• Perceived as being more preoccupied by their personal success than to satisfy clients’ needs or to create a pleasant atmosphere
• Unappealing in terms of imagesince not implying anything new/ modern
• Rather obsolete type of store/ reminding of Communist period of time, since offering a narrow range of products
• Unappealing in terms of imagesince not implying anything new/ modern
• Rather obsolete type of store/ reminding of Communist period of time, since offering a narrow range of products
• Perceived as keeping track with times/ being modern and dynamic
• Associated with the “specialist”/ expert type, since offering secure and safe products
• Seen as having a touch of refinement and sophistication
• Perceived as keeping track with times/ being modern and dynamic
• Associated with the “specialist”/ expert type, since offering secure and safe products
• Seen as having a touch of refinement and sophistication
• Seen as having a wide range of products and brands
• Very unappealing appearance – not caring itself/ having un untidy aspect
• Seen as having a wide range of products and brands
• Very unappealing appearance – not caring itself/ having un untidy aspect
Perceived Images of the Channels in Romania
CASH-AND-CARRYCASH-AND-CARRY
Mature / controlled character
TRADITIONAL GROCERY
TRADITIONAL GROCERY
DISCOUNTERDISCOUNTER
PHARMACY PHARMACY
Note: Qualitative part of the study was carried out by Synovate
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Store Selection: Main Reasons for Store Preference
CZ HU PO ROI can find all the products I need 42% 53% 47% 40%Doing shopping is faster 26% 43% 40% 36%
The location of the store is convenient 62% 43% 53% 39%
I know products are going to be cheap 32% 22% 26% 21%
0%
10%
20%
30%
40%
50%
60%
70%
CZ HU PO RO
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Global perspective of shopping trip missions across Europe
European Research : Average All categories, All stores
Shopper
CONSUMER
Overall Trip Mission
Europe AVG
Czech Rep. Results
Poland Results
Hungary Results
Romania Results
Business Strategy
Routine Shopping (weekly, monthly)
47% 37% 22% 41% 25% Building loyalty (C&C, HM)
Small Current Purchases (fresh, top up)
22% 34% 44% 32% 45% Recruiting (SM,HD)
Urgent needs 15% 16% 25% 15% 28% Store nearby
Specific occasion
17% 13% 8% 12% 2% Recruiting (C&C)
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40%
20%
35%
9%
60%
50% 62%
65%
24%
64%
HM SM Discounters Traditional trade store Cash & Carry
For specific purchases: forspecial occasion (eg.birthday, back-to-school) orbecause of specific offer(promotion?) For emergency purchases(urgently needed products)
For small current purchases(ex: fresh products)
For big routine shopping(weekly ? monthly. Ex.Household basic needs)
Q5 - What is the main reason for coming to this store today? Nb of respondents: 1200
C&C, and HM, followed by HD have the highest percentages for routine shopping
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Shopping Habits Romania Vs. CEE
020406080
100
Main Store for Shopping 0
20
40
60
80
Less than 30 min. in Store
0
10
20
30
40
50
More Money Spent0
20
40
60
Frequency: At least once a week
% %
% %
Romanians spend less time and less money in the store in comparison with the other countries which is in line with the high % of small current purchases
CEE Romania
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About 50% of Romanian Shoppers decide at home what to purchase. High Opportunity for In-store marketing.
CEE RO
05
1015202530354045505560
Shopping List
Pre-planned purchases are also heavily dependable on the category
The most planned categories are processed meat, water, coffee, CSD and toothpaste: linked to basic and high frequent consumption.
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Romania Scorecard : Selected categories in all channels
Average 25 categories Coffee
Breakfast Cereal CSD Detergents
72%
43%
64%
37%
76%
72%
56%
79%
50%
57%
43%
66%
41%
55%67%
Toothpaste
In general, I buy well-knownbrands 76% 82% 83%
I know in advance that I will buythis product in this store 47% 59% 52%
I choose between 2 or 3 brands I trust in 59% 60% 50%
Good Price is why I buy from thisstore 40% 43% 45%
If I didn't find the product I wouldsubstitute 60% 57% 50%
The brand has an important role especially for coffee and Toothpaste
Higher brand predetermination on well-known brands
High substitution on most categories, especially for Breakfast Cereal and CSD
common to switch between 2-3 well trusted brands
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