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The A to Z of Global Shopper Insights

Date: Jan 09 Gill Aitchison +44 20 8861 8223 // Fabio Martins +44 208 861 8747 Nobody’s Unpredictable
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is for Attraction, Availability and Action

The most effective way is Visual attraction


Think colours, shapes, logos – be but careful with in store pollution
But you can’t sell what isn’t on the shelves
The fast moving lines are often not replenished sufficiently quickly and
shoppers are frustrated when their favourite items are out of stock
If your shopper insights don’t lead to Actions in store, are they really
useful?

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Ipsos Global Shopper – the A to Z of shopping
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is for Behaviour

What people say they will do and what they actually do when
shopping can be very different

But measuring how long people spend shopping at a fixture or how


many items they smell may not give shopper insights

Finding out WHY they are doing it is key


Then you can address their needs in a relevant and differentiated way

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Ipsos Global Shopper – the A to Z of shopping
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is for Consistency

Brand messages should be consistent


Mass communication creates the desire but in store we need to create
the need to buy:
Re-connect with the message at point of sale in a relevant way with a
different objective (sales)

A globally consistent framework for research enables you to answer


local issues with consistent approaches

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Ipsos Global Shopper – the A to Z of shopping
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is for Decisions and Decision Trees

Too many choices will cause confusion. You need to:


Get the right number of SKUs for the category to maximise both sales
and customer satisfaction
Lay out the fixture in a way that explains the true Decision tree hierarchy
to keep shoppers happy
Identify the correct decision tree for a category and implementing at
fixture will uplift shopper satisfaction and sales

Brand A Product Format C


Brand A Pack Format 3 8%
10%
Brand A Pack format 2
18% Brand A Product Format C 2%
Brand A – Pack format 1 8%
20%
1%
Brand D – Special offer
n = xxx 2%
1%
Brand E – Pack format A
Brand D – Pack format A 55%
47%
Brand C – Pack format A
29% 14%

Brand B – Promo pack 36%


23%
36% 5
Ipsos Global Shopper – the A to Z of shopping
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is for Energy and Experiment

Energise your customers by inspiring them at point of sale


Even the dullest categories will have loyal consumers! Energise your
profitable loyals to maximise returns by focusing in store on what
connects them with your brand
Experiment before new product launches
Shopper Labs allow you to confidentially avoid costly mistakes

Ipsos
Shopper
Lab UK

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Ipsos Global Shopper – the A to Z of shopping
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is for Format & Familiarity

Optimise your category offer to meet the needs of the different


Retailers’ formats
Understanding the types of shopper, their attitudes and beliefs and
the missions for which they use a particular format will enable you to
offer the right brands at the right prices in the right configuration
Don’t underestimate the need for Familiarity – shoppers want to be
able to find what they are looking for easily. If you want to change
layouts, it must make it easier for the shopper

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Ipsos Global Shopper – the A to Z of shopping
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is for Grocery and Gifts

It dominates Retail sales – so understanding the key shopping


missions for Grocery will allow you to find opportunities for your
category
43% of people agree that Grocery shopping is an enjoyable part of their
lives! (Ipsos study in 22 countries, Nov 2008 )
Don’t forget your shopper may not be your consumer – when buying
for others your shopping criteria may change. Gift purchasing

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Ipsos Global Shopper – the A to Z of shopping
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is for Habits

Habits mean that people don’t always notice what’s in front of them
You need to capture your shoppers by giving them an unconventional
point of focus – ten years ago it was floor stickers, today technology can
help (e.g. bluetooth marketing)
Understanding which stimulus materials can break the habit in
advance of launching it in store will allow you to focus your in-store
marketing in areas which yield the greatest return:

Attention – What awareness does your stimulus create? Is it


noticed when shopping?
Interest – Does it make you stop and interact with the brand at the
shelf? What does it say about the brand?
Motivation – Does it make you buy the brand?
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Ipsos Global Shopper – the A to Z of shopping
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is for Innovation and Ipsos

Developing new products without considering how they will work in


store is a recipe for failure of new products
Your existing products can still innovate in store on shelf through
pricing, packaging and promotion
You didn’t expect us to leave Ipsos out! Ipsos can help you with
both your innovation and shopper insights

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Ipsos Global Shopper – the A to Z of shopping
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is for Jargon and JAG

RFID, BOGOF, LFL, MPM,


Are you up to speed with the language of Retail?
Can you talk with your retailers beyond price cutting?
JAG
Use JAG carefully to get a triple win: Retailer, Manufacturer and
Shopper

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Ipsos Global Shopper – the A to Z of shopping
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is for Knowledge

Never forget that you are a shopper too! Think like a shopper when
you interpret data
Shopper knowledge can be derived from various survey techniques
and data sources – it’s how you interpret it that makes the difference

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Ipsos Global Shopper – the A to Z of shopping
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is for Learning and Lost Sales

Learn through your mistakes – it is better to fail while trying than to


fail through inertia
Often it is as important to know why you didn’t sell than why your
promotion gave you more volume
Lost sales come from people who give up because they can’t find
what they’re looking for – make sure your products are both
available and visible on shelf

Did you intend to buy?

%Yes % No
Did you buy? Did you buy?

%Yes %no %Yes %no


Success Lost Seduced Missed conversion
(w%) Sale (x%) (y%) (z%)

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Ipsos Global Shopper – the A to Z of shopping
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is for Missions

Missions are the reasons why people are shopping today – they
should describe expected behaviour (e.g. time in store, store/format
choice, number of items, amount spent etc – Know in which mission
you are most likely to make a sale and where and when impulse
purchasing is more likely
Understanding which missions occur in which channel enable you to
target shoppers with right range and at right price points
3 6 5 4 8 8
12
10 Mission 8
12 15 8
14 25
8
6 Mission 7
27
16
13
34 10
23 5 4 Mission 6
37 37 5

3 14 22 Mission 5
7 31 28

5 Mission 4
13 7
31
6 19
17 34 Mission 3
46
28
33 22
Mission 2
18 21 20
6 7 8
Mission 1
Hyper - Super- C-stor es Petrol Disc- Cash & Over the Drug
markets markets Stations ounter s Car ry Counter stores
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Ipsos Global Shopper – the A to Z of shopping
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is for Navigation

Help your shoppers navigate the store, wasting time searching for
something that has been relocated is frustrating!
64% of the world’s population like shops that always have things in the
same place.

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Ipsos Global Shopper – the A to Z of shopping
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is for Observation

People can rarely explain how they shop - it is only by observing


behaviour that you can truly understand your category
But while observation shows us what is happening, it must be
complemented with surveys to understand the reasons why people
have behaved as they did

Videos help illustrate


behaviour

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Ipsos Global Shopper – the A to Z of shopping
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is for Price and Promotion and Profit

Price and Promotional activities do not necessarily drive long term


profit – although they may help short term volume
Research can help drive discussions between manufacturers and
retailers beyond pricing and promotion
Profit comes from having the right range, well merchandised to
attract the right shopper to the store

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Ipsos Global Shopper – the A to Z of shopping
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is for Qualitative and Queues

While in China, people might see a queue and join it, in other
nations the majority would actively avoid them
Shopper understanding is one of the most country specific pieces of
research that can be done
Qualitative insight is key to gaining true shopper knowledge – but
beware of the differences between real insight and just describing
behaviour

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Ipsos Global Shopper – the A to Z of shopping
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is for Reminding and Range

Remind your shoppers that they really want to buy your brand
Try to get it onto their shopping list (direct mail/coupons/advertising)
Cross merchandise – have you got the sauce to go with the meat? Are
the right products adjacent to each other?
Trigger their mindset at POS
Too much choice is not necessarily a good thing
57% of Indian shoppers would prefer a smaller range (compared with
24% globally)

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Ipsos Global Shopper – the A to Z of shopping
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is for Segmentation
Shoppers behave differently
because of their beliefs & attitudes – WHO they are
when on different shopping missions – WHY shopping today
Shopper insights use these segments to target different
retail/channel strategies
i.e. Place a particular SKU in one Retail outlet rather than another
because it better matches the shopper types & missions and you will sell
more!

A B C D E

26% 24% 15% 17% 18%

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Ipsos Global Shopper – the A to Z of shopping
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is for Tunnel vision

When people are shopping they often don’t see large signs or
stimulus – because they are focused on what they are looking for
however they may notice what is next on the shelf – therefore
adjacencies are important - if they are relevant they may trigger
additional sales
E.g. dog treats next to dog food
Nappy wipes next to nappies
Hair styling next to shampoo & conditioners etc

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Ipsos Global Shopper – the A to Z of shopping
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is for Understanding and Uplift

Shopper understanding is even more critical in turbulent economic


times
Sales uplift can come from many areas – understand where your
weaknesses are (Attention, Interaction or Motivation) to make the
most gains

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Ipsos Global Shopper – the A to Z of shopping
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is for Value

Value for your values!


Value is more than value for money – depending on your beliefs you
will value different criteria (e.g, Quality, Environment)
Whilst some believe that store experience is irrelevant “You don’t
take the store home with you”, others are driven exclusively through
experience.

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Ipsos Global Shopper – the A to Z of shopping
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is for Wants

Shoppers want to have a pleasurable experience when shopping –


this will make them more likely to buy what they WANT rather than
just what they NEED
Shoppers want the following:
Range, Quality, Value, Friendly staff, Facilities (easy parking etc)
Emotional satisfaction gained from being a smart shopper and having a
good shopping experience

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Ipsos Global Shopper – the A to Z of shopping
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is for Excitement

Is different in different regions


Latam want gifts and promotions, enjoy Grocery shopping and seek
personal attention in shops
60% of BRIC countries love shopping where there are demonstrations and
sampling (compared to 32% in W Europe)

70

60

50

40

30

20

10

0
LATAM BRIC APAC E EUROPE N AMERICA W EUROPE

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Ipsos Global Shopper – the A to Z of shopping
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is for Yesterday

While your past can help as a guide, it is with good shopper research
that you can reshape your future.
A complete shopper programme will be informed by yesterday, observe
behaviour today and simulate the future
So analyse your sales historically for calibration purposes but look for
simulations to test out future scenarios

14
Residual
12 Model
Actual
10
8
6
4
2
0
Jul-04
-2 Jul-05 Jul-06 Jul-07

-4

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Ipsos Global Shopper – the A to Z of shopping
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is for Zones

Knowing which areas of the store are hot and cold zones and why …
allows you to intelligently distribute categories to maximise revenue per
square meter (foot)
Sophisticated store mapping or simpler conversion ratios of passed
by/glanced/interacted/bought can be effective too

1 0

6 .7 5

5 .5 0

4 .2 5

1 .7 5

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Ipsos Global Shopper – the A to Z of shopping
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Want to know more? Give us a call or e-mail:

Global Shopper: Your local contact is:


Gill Aitchison or Fabio Martins
+44 207 861 8000
Gill.Aitchison@ipsos.com
Fabio.Martins@ipsos.com

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Ipsos Global Shopper – the A to Z of shopping
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