Hoe van trade marketing een positieve hefboom

maken in deze crisistijd?

Comment faire du trade marketing un levier

positif en ces temps de crise?

Dinsdag 24 maart 2009, om 13u

Pullman Brussels Airport Hotel, Diegem

Mardi 24 mars 2009, à 13 heures

Pullman Brussels Airport Hotel, Diegem
Trade Marketing in tijden van crisis

Trade Marketing en temps de crise

2
Economic recession and consumer strategies

Consumer Strategies
Basket - size

Buy Volume per occasion

different ?
Purchase frequency

Different mix ?
Shift to discounters ?
Shift to private label ?
Consumer response # 1: Buy different ? Yes, but…

FMCG+Fresh € growth
+6.05%

More Households Value growth

+0.95% +5.1

Calendar effect Price effect Volume effect

+0.84% +5.32% -1.1%

Basket volume per trip Shopping trips

-5.2% +4.12%
Consumer response # 1: Buy different ? Yes, but…

6,5
One need shop (fresh) 6,7
7,0
7,3 More small trips
10,4
One need shop (general) 10,1
10,6
11,4
9,9
Top up shop (fresh) 10,1
10,3
10
18,3
Top up shop (general) 18,5
18,6
19
28,7
Mainstream 29,4
28,1
28
18,8
Stock up shops 19
18,3
Less big trips
17,5
7,3
7,2
stock-up
All round stock up shop 7,0
6,8 all round stock-up
% baskets CY 06 % baskets Mat jun 07 % baskets CY 07 % baskets Mat jun 08
Consumer response # 1: Buy different ? Yes, but…

FMCG+Fresh € growth
+6.05%

More Households Value growth

+0.95% +5.1

Calendar effect Price effect Volume effect

+0.84% +5.32% -1.1%

Basket volume per trip Shopping trips

-5.2% +4.12%
Consumer response # 1: Buy different ? Yes, but…

Basket volume per trip

-5.2%

Average basket size Volume of category # purchase occasions

# per purchase occasion per category
categories in basket 136 categories analyzed 136 categories analyzed

From caddy to basket ?

Volume + ?

Increase frequency ?
Consumer response # 1: Buy different ? Yes, but…

The average number

of unique SKU's in the basket
2007 2008
s
9 8,7 Price
8,9
8,6 8,7 8,7 8,7
8,4 8,6
8,5 8,2 8,2 8,4 8,4
8,1 8,3 8,3 8,3
8,2
8
gu i
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ei
ril
rt
i

ok r

ve r

ce r
ri

r
au jul
ar

no b e

de be
be

be
se stu
aa
ua

ju
ap
nu

to
em

m
m
br
ja

fe

pt
Consumer response # 1: Buy different ? Yes, but…

Volume per trip

-5.2%

Average basket size Volume of category # purchase occasions

# per purchase occasion per category
categories in basket 136 categories analyzed 136 categories analyzed

Stockpiling

Increased volume Decreased volume

per purchase occasion per purchase occasions
categories categories
85 (62%) 51 (38%)
Consumer response # 1: Buy different ? Yes, but…

Basket volume per trip

-5.2%

Average basket size Volume of category # purchase occasions

# per purchase occasion per category
categories in basket 136 categories analyzed 136 categories analyzed

Increased purchase occasions Decreased purchase occasions

categories categories
49 (36%) 87 (64%)
Consumer response # 2: Different Mix in the basket ?
Gain & Loss between categories
YTD Aug 2007 versus YTD Aug 2008

Frozen food
+++
Fresh Food
++ - Home & Personal care
---

Dry Food
& beverages
--+
Consumer response # 3: Shift to Discounters ?

Points marketshare % € lost or gained 08 vs 07

Points market share lost or gained

Hypermarkets -1,5
Supermarkets -1,6
Full Range Discount 0,8
Hard Discount 1,6
Proximity 0,2
Consumer response # 3: Shift to Discounters ?

Evolution of retailer shares ( % value)

100% Base : All Channels

Aug-Sept-Oct HH w. children HH w. children HH w. children HH w. children

limited income limited income high income high income
Aug Sept Oct 07 Aug Sept Oct 08 Aug Sept Oct 07 Aug Sept Oct 08
Colruyt Group 19,8% 18,9% 22,3% 22,0%
Aldi 13,6% 16,0% 11,6% 11,8%
Lidl 7,5% 10,0% 6,8% 6,8%

Lower Income Higher Income

HH w. children HH w. Children
16% of FMCG 31% of FMCG
Consumer response # 4: Switch to private label ?

PLB share in % value and %volume

% value % volume
Aug-Sept-Oct Aug Sept Aug Sept
Oct 07 Oct 08
Aug Sept Aug Sept
Oct 07 Oct 08

Hyperm/Supermarkets/Full range +HD/prox 32,4% 34,1% 45,5% 46,9%

Hyperm/Supermarkets/Full range/prox 18,4% 18,9% 27,1% 27,4%

Relative price increases

are higher for PLB than for A Brands
Consumer response # 4: Switch to private label ?

PLB share in % volume

HH w. HH w. HH w. HH w.
children children children children
Aug-Sept-Oct All HH All HH
limited
income
limited
income
high
income
high
income
Aug Sept Aug Sept Aug Sept Aug Sept Aug Sept Aug Sept
Oct 07 Oct 08 Oct 07 Oct 08 Oct 07 Oct 08
All channels 41,2% 42,6% 48,1% 51,6% 42,1% 42,5%
Hyperm/Supermarkets/Full range +HD/prox 45,5% 46,9% 51,5% 55,2% 46,0% 46,2%
Hyperm/Supermarkets/Full range/prox /Lidl 33,3% 34,3% 37,6% 41,0% 33,5% 33,5%

Hyperm/Supermarkets/Full range/prox 27,1% 27,4% 28,6% 31,0% 27,3% 26,7%

Full range discounter 29,7% 30,5% 32,1% 34,2% 29,8% 29,9%

Lower Income Higher Income

HH w. children HH w. Children
16% of FMCG 31% of FMCG
The added value of Trade Marketing
 1
Retailer 2 Manufacturer
3
Retailer objectives 5 Manufacturer
& strategy Shopper insights objectives & strategy
4
Common category
6 vision

price promotion assortment

in-store presentation in-store communication co-marketing

trade communication
7
18
Implementation & evaluation
Step 2 – Determine what to do where
Economic Value

high
low

low high
low
Target Group Value
high

Collaborative Opportunities
©
 Small Groceries
Large Groceries Cafetaria,TeaShop
Self Service

Sport Centers
Restaurants
Wholesalers
SuperMarkets
Caterers
Schools

Hypermarkets

Copyright © 2007 - 2009 Equazion N.V.

p.20
 Reveal true cost and net pocket price
Price Leakages

Volume Payment Freight Promotions Bonuses

discounts terms
Allowance
Gross Sales price

Pocket price waterfall

Net Sales price

(= Pocket price)
PROFIT

Cost-to-Serve waterfall

COGS
Order Pickings Transport Account Sales
admin operations mgt rep visits

Marketing
Supply Chain
& Sales

Copyright © 2007 - 2009 Equazion N.V.

 © Copyright, Nexum — confidential
Selling ideas
Negotiations
Internal

Needs Analysis
Preparation THE NEGOTIATION
PENDULUM
RATIONAL IRRATIONAL
Presenting a solution
The influencing
• Argumentation
Preparation Information Strategic
Cycle • Objections issues

Concessions
Techniques
Client

Conclusion NO &
Tactics
Final
Decision
YES

Selling
Influencing Negotiating

Specific skills & behaviors Specific skills & behaviors

Shopper segmentation
 Shopper segmentation

Retailer C
Target groups
ALL HOUSEHOLDS
Spend per household Frequency of purchase
Category Retailer C
eatable oil and fat 50,1 10,7
sandwich filling 27,2 7,9
hot drinks 49,8 7,9
seasoning & flavouring 34,0 10,5
soup, bouillons 21,2 5,0
rice and pastas 14,7 6,2
breakfast products 38,2 6,4
baking and dessert products 20,5 6,7
dairy 86,6 14,6
meals 51,1 7,0
meat & poultry 274,4 14,1
eggs 17,7 6,2
ice cream 23,9 4,2
non alcoholic drinks 129,1 13,0
alcoholic drinks 164,9 9,5
bread and bread substitutes 41,6 10,8
groceries 26,2 5,7
biscuits and cookies 53,9 10,8
snacks 15,5 3,3
salted snacks 18,2 7,1
confectionary 20,5 5,7
chocolate products 39,3 7,6
potatoes 33,7 6,7
fruit 121,2 13,6
vegetables 89,3 14,3
cheese 73,4 12,0
fish and seafood 68,5 7,0
animal food and products 74,7 9,9
nutritional meal 19,1 5,2
non food categories 35,0 5,1
home care products 65,4 10,0
detergents (aids) 53,5 5,0
personal care 86,3 8,5
others 91,4 6,2
Shopper segmentation
 Shopper segmentation
Retailer
HML for total FMCG
Target groups
Heavy FMCG Medium FMCG Light FMCG
Light HML for retailer At retailer Elsewhere At retailer Elsewhere At retailer Elsewhere

Non Buyers Value 0,0 763.252,9 0,0 948.406,9 0,0 1.436.805,0

Penetration 0,0 1,8 0,0 3,8 0,0 8,0
Occassions 0,0 17.852,6 0,0 25.482,6 0,0 44.982,9

Medium Heavy Value

Penetration
1.255.972,0
6,2
1.367.853,0
6,2
1.089.093,0
6,6
672.886,0
6,6
1.089.093,0
4,5
171.096,1
4,5

Shoppers Occassions 1.089.093,0 50.475,0 1.089.093,0 28.405,8 1.089.093,0 8.003,3

Medium Value 242.487,0 1.513.599,0 449.385,6 1.680.198,4 449.385,6 1.331.891,0

Penetration 4,4 4,4 8,2 8,2 13,3 13,3
Occassions 449.385,6 46.658,8 449.385,6 67.604,8 449.385,6 62.051,2

Light Value 51.038,2 3.072.706,8 83.397,7 2.799.985,3 83.397,7 3.600.291,4

Penetration 7,5 7,5 11,3 11,3 24,3 24,3
Occassions 83.397,7 92.954,2 83.397,7 99.302,9 83.397,7 144.602,9

Heavy
Shoppers
Category Heavy
Category Medium Light
buyers category
The added value of Trade Marketing
Grondig uitgevoerde TM activiteiten

(Trade marketing audit –2008)

 Niveau van Trade Marketing
STRATEGICAL
HIGH

TACTICAL TACTICAL
LOW HIGH

(Trade marketing audit –2008)

STRATEGICAL
LOW
“Trade marketing, category management, key-account
management, shopper marketing…
Geef het beestje een naam. Uiteindelijk komt het allemaal op
hetzelfde neer: hoe slagen fabrikanten en retailers er in maximale
groei te realiseren, gecombineerd met maximaal rendement.
Waar zijn de overeenkomsten, waar liggen de meningsverschillen,
zoek de gemene deler om die maximale resultaten te behalen”

(Dirk Depoorter – Colruyt)

(Trade marketing audit –2005)
 Thanks!

www.ld-co.com
 Luc Desmedt
De Cauwerstraat 47
9100 Sint-Niklaas

e- luc.desmedt@ld-co.com
t- +32 478 42 40 13
f- +32 15 28 39 50
w- http://www.ld-co.com

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