Shopper Understanding & The Brand An exploration of shopper behaviour in the Irish multiples May 2010 0 Report Structure 1 2 3 4 5 • Introduction & Objectives Pages 2 - 15 • Market Understanding Pages 16 - 29 • Shopper Occasions Pages 30 - 45 • Shopper & Category Insights Pages 46 - 98 • Crisps • Soft Drinks • Tea • Dairy Spreads • Fresh Soups • Cheese • Yoghurt • Water • Implications 47-52 53 - 58 59 - 64 65 - 71 72 - 77 78 - 85 86 - 92 93 - 98 Pages 99 - 102 1 1 Introduction & Objectives 2 Background & Research Objectives BACKGROUND The area of shopper understanding has been identified as one of interest to Bord Bia’s client companies. Specifically, the emergence of a body of marketing theory around shopper occasions has seen the topic grow in importance for retailers. Shopper insights are currency for building strong customer relationships. Retailers are battling for shoppers and seek manufacturer partners who bring insights about how people shop that translate into ideas that increase traffic, category and aisle sales. RESEARCH OBJECTIVES The primary research objective is to demonstrate how shopper understanding can help Irish brands grow. Specifically, our research objectives are 1. To generate an understanding of shopper occasions amongst categories where Irish brands compete 2. To generate actionable insights on channel strategy at a category level 3. To develop recommended improvements for Irish brands to implement at the point of purchase 3 Why is shopper research important? Rightly, the majority of brands use research to understand its consumers, their lives, their consumption patterns, their relationship with the categories they consume and the brands they choose. But very often brand managers knowledge of shoppers isn’t always as strong. Knowledge about how and why consumers behave doesn’t necessarily equate to knowledge about how shoppers behave. This is partly because the shopper is not necessarily a consumer. A shopper is someone who shops in a store. They may, or may not, be consumers of what they buy. And they may behave differently on different shopping occasions. Even if the shopper is also a consumer, there are other influences that may dilute – or even override – their overall brand preferences. For instance time pressure, the nature of their shopping trip, who is accompanying them, promotions, whether they are buying as a gift and so on. Consumer Non-Shoppers Shopper Consumers Shopper Non-Consumers 4 Brands can leverage shoppers mental state ALPHA MODE = High involvement / high mental activity (Conscious) BETA MODE = Low involvement / low mental activity (Sub Conscious) Most people know the store they shop in. In the UK, for example, 80% of shoppers tend to shop one store for the main shop. This means that the store becomes what we can call a ‘learned environment’. They have a mental map of where things are in the store. Most of the time shoppers are doing what is know as ‘low involvement processing’ (beta mode mental activity). This is a mental state one step above the subconscious in which the brain is not consciously making choices or considering options but prompting action when known/learned signals come into view. This beta mode of shopping means that once looking at a display the eye works in a different way, looking left and right before it looks up and down creating a diamond or ellipse shape core field of vision. The eye registers more in the horizontal, which is why, within a display, horizontal blocking for a brand is more noticeable. FIELD OF VISION With shoppers behaving in such ‘predictable’ ways in store, the opportunities for marketers can be significant. 5 Brands need to master in-store interruption Shoppers look roughly straight ahead of them, a little lower than straight ahead, not normally far below thigh height (between about 1000mm and 1400mm). While walking by, they therefore tend not to look at the shelves straight on, but at an angle. Also, they will not be looking at the shelves immediately to their left or right, but at those 5-7 metres in front of them. These patterns of behaviour have important implications for brands, because brands have very limited space in which to ‘interrupt’ shoppers attention in store. In store POS and signage is one obvious way to attempt to grab consumers’ attention. But in many cases it fails. The key to developing the right messages for brands in store is understanding the shopper occasion. occasions can differ by category, however, examples of shopper occasions include… 6 Brands can use emotional capital in-store Mastering the art of in-store ‘interruption’ does not rely solely upon simple POS, category management and in-store visibility. Brands also can leverage the emotional associations shoppers have with a brand through in-store activation. The emotional capital of every brand is different, however, through the right shopper research a brand can unlock the power of the latent associations consumers have with that brand. This can make the brand’s activity in store even more powerful and more likely to interrupt shoppers who are shopping in ‘beta mode’. For example… BAILEYS The Baileys brand was an infrequent purchase. By unlocking the feminine equity of the brand Diageo developed a proposal for secondary display in areas of the store where shoppers would be likely to be shopping in an indulgent frame of mind, like confectionery, ice cream, cakes and even – quite radically – cosmetics! COCA COLA The Coca Cola brand has unlocked the emotion around its Christmas associations by designing innovative POS that stacks its bottles in-store in the shape of a Christmas tree. This is a classic example of leveraging the highly emotive to create impactful interruption in store… 7 Using shopper understanding research for Irish brands… The purpose of this shopper understanding research to help Irish brands unlock their true potential in-store by providing brand owners with: 1. An understanding of shopper occasions amongst categories where Irish brands compete 2. Actionable insights on channel strategy at a category level 3. And suggested improvements for Irish brands to implement at the point of purchase Category Dairy Spreads Tea Cheese Fresh Soup Soft Drinks Water Yoghurt Crisps Shopper occasions & Motivations to Purchase Brand Implications Our Output: Recommendations for how Irish brands can win in-store… 8 Qualitative Research Structure Mobile Groups Group No Criteria Categories Store Location 1 30-40 year old, female, C2D Main Household Shoppers Cheese, Dairy Spreads Tesco Dublin 2 30-40 year old, female, C2D Main Household Shoppers Soft Drinks, Water SuperValu Galway 3 40-50 year old, female, BC1 Main Household Shoppers Yoghurts, Cheese SuperQuinn Dublin 4 40-50 year old, female, C2D Main Household Shoppers Fresh Soup, Tea SuperValu Fermoy 5 40-50 year old, female, C1C2 Main Household Shoppers Crisps, Soft Drinks Tesco Cork Accompanied Shopping Trips Shop No Criteria Retailer Shop No Criteria Categories 1 30-40 year old, Main Shoppers SuperQuinn 6 30-40 year old, Main Shoppers Tesco 2 40-50 year old, Main Shoppers SuperValu 7 40-50 year old, Main Shoppers SuperQuinn 3 40-50 year old, Main Shoppers Tesco 8 40-50 year old, Main Shoppers SuperValu 4 30-40 year old, Main Shoppers SuperQuinn 9 30-40 year old, Main Shoppers Tesco 5 30-40 year old, Main Shoppers SuperValu 10 40-50 year old, Main Shoppers SuperQuinn 9 Quantitative Research Structure Quantitative Research took the form of 1000 entry & exit interviews at stores around the country. Three of the major multiples agreed to participate in the research: Shoppers were interviewed before and after visiting the store. A brief five minute interview was administered to explore: The shopper archetype The shopper occasion Pre-store purchase intent, reason for store choice, presence of shopping lists & offer coupons Post-store actual purchase behaviour and influencers at the fixture 10 Quantitative Analysis of Sample Family Status - base 1007 Gender Profile - base 1007 5% 17% 51% 44% 83% MALE Children living at home No children living at home Store Sample - base 1007 33% 34% FEMALE Undeclared Age - base 1007 5% 13% 34% 18-21 28% 22-29 30-45 45-59 49% SuperValu 60+ Social Class - base 1007 33% Tesco 17% 35% 13% 1% SuperQuinn ABC1 C2D E F 11 Overview of research approach Shopper Archetypes Shopper occasions We begin by exploring a number of ‘shopper archetypes’ to understand ‘who’ shoppers are and what their typical shopping behaviours are? We then move on to an exploration of the core shopper occasions that exist and how that influences in-store shopper behaviour. And finally move onto a series of shopper insights at category level – to understand the implications for Irish brands. Shopper Insights 12 At the core of shopper research is understanding the shopper journey 1. Brand Equity Pre-Store • Pre-Disposition • Shopper Type • State of mind 4. Consumption 2. Store Experience • Product experience • Dynamics • Atmosphere • Layout 3. Point of Purchase • Price • Promotion • Placement • Pack Communication 13 This research focuses on 1. Brand Equity Pre-Store • Pre-Disposition • Shopper Type • State of mind • Channel/Retailer choice 4. Consumption 2. Store Experience • Product experience • Dynamics • Atmosphere • Layout 3. Point of Purchase • Price • Promotion • Placement • Pack Communication 14 The influence of journey stages differ depending upon the product category… 1. Brand Equity Pre-Store 3. Point of Purchase • Pre-Disposition • Shopper Type • State of mind • Channel/Retailer choice • Price • Promotion • Placement • Pack Communication Crisps Soft Drinks Tea Dairy Spreads Fresh Soup Cheese Yoghurt Water Greater influence pre-store Greater influence in-store 15 2 Shopper Archetypes 16 Understanding different types of shoppers The Quick Shopper The Browser Shopper Typologies The Careful Shopper The Bargain Hunter 17 The Quick Shopper Grocery shopping is a job, something to get over and done with. I don’t want to waste my time in a supermarket I have too many other things to fill my life. Autopilot shopping Knows the store layout Likes to stock-up Brand loyal Don’t necessarily enjoy shopping but view it as means of completing a list – mental or written. 18 Who is the Quick Shopper? 18-21 22-29 30-45 45-59 60+ TOTAL SAMPLE 5% 13% 34% 28% 17% THE QUICK SHOPPER 7% 19% 33% 27% 14% MALE FEMALE TOTAL SAMPLE 17% 83% THE QUICK SHOPPER 27% 73% ABC1 C2D E F TOTAL SAMPLE 49% 35% 13% 1% THE QUICK SHOPPER 56% 31% 12% 1% Quick shoppers are more likely to be younger and ABC1. Notably, this typology tends to be more male than is the norm. 19 The Careful Shopper Food shopping, in particular, is something to take seriously. Time is spent at the category fixture reviewing prices, brands, formats and ingredients. Engaged in store culture Immerse themselves in the experience of shopping High involvement Shopping is stimulating – but still a job so something to be conscientious about. Bargains aren’t the main focus but value is. 20 Who is the Careful Shopper? 18-21 22-29 30-45 45-59 60+ TOTAL SAMPLE 5% 13% 34% 28% 17% THE CAREFUL SHOPPER 1% 8% 39% 29% 23% MALE FEMALE TOTAL SAMPLE 17% 83% THE CAREFUL SHOPPER 10% 90% ABC1 C2D E F TOTAL SAMPLE 49% 35% 13% 1% THE CAREFUL SHOPPER 46% 37% 16% 1% Careful Shoppers are much more likely to be female and also tend to be older. 21 The Bargain Hunter Overtly price conscious and therefore treats grocery shopping as a challenge. Price and value are the key considerations so strategies are used to seek out the best value. Visit many retailers Offer ‘destinations’ drives their behaviour Shopping is a war and one that you have to constantly alert to to win. Word-of-mouth and advertising are relied upon for the latest greatest deals. 22 Who is the Bargain Hunter? 18-21 22-29 30-45 45-59 60+ TOTAL SAMPLE 5% 13% 34% 28% 17% THE BARGAIN HUNTER 4% 10% 35% 34% 16% MALE FEMALE TOTAL SAMPLE 17% 83% THE BARGAIN HUNTER 11% 89% ABC1 C2D E F TOTAL SAMPLE 49% 35% 13% 1% THE BARGAIN HUNTER 34% 53% 11% 2% Bargain Hunters again are more likely to be women and significantly more C2D than is the norm amongst the rest of the typologies. 23 The Browser Some of us genuinely enjoy the experience of shopping and love to take our time in the supermarket. Shopping as stimulation Sometimes an ‘idea’ and inspiration exercise for consumers Compromise on price for a more enjoyable shopping experience Food is to be enjoyed and so are new tastes. We know what we need but sometimes use the supermarket as a catalyst for purchases. 24 Who is the Browser? 18-21 22-29 30-45 45-59 60+ TOTAL SAMPLE 5% 13% 34% 28% 17% THE BROWSER 4% 11% 27% 29% 29% MALE FEMALE TOTAL SAMPLE 17% 83% THE BROWSER 13% 87% ABC1 C2D E F TOTAL SAMPLE 49% 35% 13% 1% THE BROWSER 66% 16% 18% 0% Finally, the Browsers tend to be older and more up-market ABC1s. 25 Understanding the size of the typologies What type of shopper are you? – Base: 1007 The Browser 6% The Bargain Hunter 18% The Quick Shopper 48% The Careful Shopper 28% 26 Who makes a list? Careful shoppers and Bargain hunters are more likely to make shopping lists. Did you make a shopping list before visiting the store today? – base:1007 Yes 22% No 78% 16% of quick shoppers 29% of careful shoppers 29% of bargain hunters 12% of browsers 27 Who brings special offer coupons? Very little ‘coupon’ behaviour at the three retailers we surveyed – perhaps driven reliance on loyalty schemes as main source of reward in Tesco and SuperQuinn? Did you bring special offer coupons with you to the store today? – base:1007 Yes 7% No 93% 6% of quick shoppers 11% of careful shoppers 7% of bargain hunters 2% of browsers 28 Who reads about special offers in advance? Careful shoppers and Bargain hunters are more read about special offers before visiting the store. Did you read about any special offer before you visited the store today? – base:1007 Yes 20% No 80% 12% of quick shoppers 28% of careful shoppers 26% of bargain hunters 12% of browsers 29 3 Shopper Occasions 30 What are the main shopper occasions? There are six main shopper occasions… Main shopper occasions – base: 1007 Big stock-up; 2% Just passing and thought of something I needed; 19% Main weekly shop; 26% I am on a daily/routine shopping trip; 9% Last minute emergency; 5% Quick top-up shop; 39% 31 Who is shopping on these occasions? Careful shoppers and Bargain hunters are methodical in their shopping behaviour so tend to complete weekly shopping trips. By contrast, The Browser uses shopping as an inspiration for cooking so can complete a quick top-up shop frequently to ‘browse’ the store for ideas… Base: 1007 I was just passing by and thought of something I needed I am on a daily/routine shopping trip I am on a last minute/emergenc y shopping trip I am on a quick top-up shop AVERAGE 19% 10% 5% 40% 25% 1% The Quick Shopper 30% 11% 6% 39% 14% 1% The Careful Shopper 10% 9% 3% 37% 40% 2% The Bargain Hunter 10% 9% 6% 42% 33% 0% The Browser 13% 5% 7% 55% 16% 4% I am on a big I am on my main stock-up shopping weekly shop trip 32 Quick Shopper Mindset BETA MODE = Low involvement / low mental activity (Sub Conscious) Most of the time Quick shoppers are shopping in what is know as ‘low involvement processing’ (beta mode mental activity). This is a mental state one step above the subconscious in which the brain is not consciously making choices or considering options but prompting action when known/learned signals come into view. Quick shoppers tend to spend very little time at the supermarket shelf but, instead seek out their preferred brands or products that they recognise instantly. Their key shopping occasions are typically when they are ‘just passing’ or ‘topping up’ so purchase behaviour is driven by a relatively immediate need. Did you buy the same brand you intended before entering the store? base 145 Example: Fresh Soup – base 145 We examined pre-store and post-store purchase intentions for Fresh Soup. The vast majority of quick shoppers in the tea category (94%) had a brand in mind pre-store and stuck with that brand – making the shopping occasion very low involvement. By contrast Bargain Hunters hare more involved and so switch from pre-store intentions in greater numbers. 42% The Bargain Hunter The Quick Shopper 58% 8% 92% No Yes 33 Example of a typical Quick Shopper occasion Shopper Typology The Quick Shopper Typical occasion I was just passing by and thought of something I needed Shopper Mindset Beta Mode Key Shopper Journey Stage Reliance on brand preference Low Involvement Unconscious Shopping PRE-STORE Shopper seeks out preferred brand initially 34 Bargain Hunters’ Shopper Mindset ALPHA MODE = High involvement / high mental activity (Conscious) Bargain Hunters tend to be much more involved in their shopping occasions as they seek out the best deal or offer. As a result, we would describe the bargain hunters’ shopper mindset as alpha-mode – very high involvement with a high level of conscious activity. The Bargain Hunter, thus relies upon in-store signage and promotions to help them along their shopper journey. What were you thinking at the crisps shelf? – base 179 Bargain Hunters Who is the cheapest Example: Crisps – base 179 43% What else is on offer We asked respondents what were they thinking at the crisps shelf. Across the total sample 43% were interested in ‘who is the cheapest’. This figure rises to 62% amongst bargain hunters, with a further 30% looking for the best offer… 28% A new pack caught my eye 10% I should buy Irish 8% 62% 30% -% -% Other 5% 8% I only want enough for the weekend 5% -% Will they eat everything in the variety pack 2% -% 35 Example of a typical Bargain Hunter occasion Shopper Typology The Bargain Hunter Typical occasion I am on my main weekly shop Shopper Mindset Key Shopper Journey Stage Alpha Mode Reliance on brand preferences & POP High Involvement Conscious Shopping IN-STORE Shopper actively seeks out best prices – sometimes between stores 36 The Careful Shopper Mindset ALPHA MODE = High involvement / high mental activity (Conscious) BETA MODE = Low involvement / low mental activity (Sub Conscious) Careful Shoppers use both Alpha Mode and Beta Mode processing on their shopping trips. They approach some categories with high levels of involvements whilst others are routinely shopped with ‘quick shopper’ style behaviour relying upon in-store stimulus. What were you thinking at the yoghurt shelf? – base 63 (careful shoppers) Example: Yoghurt – base 63 Other, 8% I should buy Irish, 10% We asked respondents what were they thinking at the yoghurt shelf. Amongst Careful Shoppers the results illustrated how low and high-involvement processing is at work. Almost half of careful shoppers were looking for the ‘best prices’ whilst a significant second group were looking for their favourite brand. Shopping in this category – for careful shoppers – can be both conscious and unconscious… What is on offer/Who is the cheapest, 43% Where is my usual brand, 39% 37 Example of a typical Careful Shopper occasion Shopper Typology The Careful Shopper Typical occasion I am on my main weekly shop Shopper Mindset Shopper Journey Stage Alpha & Beta Mode Reliance on brand preferences & POP Medium Involvement Conscious Shopping PRE & INSTORE Shopper seeks out preferred brand & take cares on product choice, prices and promotions 38 The Browsers’ Mindset ALPHA MODE = High involvement / high mental activity (Conscious) Browsers are highly involved in the shopping experience and tend to spend time in the supermarket and at the fixture exploring food products for inspiration. The Browser is this a highly conscious shopper, keen to read labels, understand ingredients and often open to trying new things. In-store marketing and on-pack communications are essential to appeal to this shopper – however, there are fewer browsers than any other typology. Indeed many browsers tend to choose a retailer who they feel gives them the greatest choice – shopping is an experience for the browser. 39 Example of a typical Browser occasion Shopper Typology The Browsers’ Typical occasion Typical occasion I am on a quick top up shop Shopper Mindset Shopper Journey Stage Alpha Mode Reliance on POP as stimulation High Involvement Conscious Shopping In-store Shopper may have an occasion based need but will take a little time to browse the fixture 40 Brand Commitment x Shopper Typology Did you buy the same brand you intended when you went inside? – base:1007 The Quick Shopper 12% The Careful Shopper 13% yes no 88% The Bargain Hunter 18% 87% The Browser 25% 82% 75% The purchase decision for the majority of food and drinks brands we looked at are decided upon pre-store. 41 The Point of Purchase Index In order to illustrate further the differences between the various shopper typologies, we have produced a point of purchase index. This index illustrates how each shopper typology is influenced by in-store point of purchase material relative to one another – Browsers and Bargain Hunters score highest on the index illustrating how point of purchase is more important as stimuli to those groups…. POP Index Explained: We asked our respondents did they buy the same brand as intended before going into the store. Across the total sample (and all categories) 86% of respondents bought the brand. The remaining 14% of respondents were influenced by what they saw in-store in some way. We use this 14% as our ‘baseline’: So 14% 14% = an index of 1 Quick Shoppers: 12% Careful Shoppers: 13% Bargain Hunters: 18% Browsers: 25% 14% = 0.86 14% = 0.92 14% = 1.26 14% = 1.78 In order to illustrate the relative scale of influence we then multiply each of the typology indexes by they segment size to produce the chart on the next slide…. 42 POP not as big an influence for the majority Above the line are segments who ‘over-index’ on POP influence – in other words this are the shoppers who are most influenced by instore stimuli. The Browser The Bargain Hunter INDEX = 1 The Careful Shopper The Quick Shopper The vast majority of shoppers stick with the brand they intended to buy regardless of POP. The two largest shopper segments – Careful Shoppers and Quick Shoppers actually under-index on Point of Purchase influence – revealing how in food and drinks pre-store influencers are critical. 43 Reasons for Brand Commitment Why did you choose the brand you did? – base 1007 Personal/Family Favourite 52% Best value Irish 13% 7% Quality brand Special offer/promotion 19% Personal Family Favourites, Irishness and brand Quality account for 78% of reasons consumers offer for brand purchase in the eight categories we examined. But as we will see there are variances by food/drink category and other factors such as format and pack innovation can influence decision-making. 9% 44 4 Shopper & Category Insights 45 Category Insights: Overview Crisps Crisp shoppers rely on visibility of special offers in-store. Soft Drinks Yoghurt shoppers want to stock-up with special offer multi-packs. Tea Tea shoppers want to stock-pile their favourite brand. Dairy Spreads Dairy Spread shoppers want the best quality brand. Fresh Soups Fresh Soup shoppers want to try new recipes and products. Cheese Cheese shoppers want a bit more excitement. Yoghurt Soft drink shoppers rely on in-store offer visibility. Water Irish shoppers want value added in water. 46 Crisps: The decision-hierarchy 47 Crisps Shopping occasions Shopping occasions for crisps– base 160 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 12% 27% 28% I AM ON MY MAIN WEEKLY SHOP I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP 29% 38% 5% 5% I AM ON A DAILY ROUTINE SHOPPING TRIP 8% 10% 18% 18% I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED TOTAL SAMPLE CRISPS Crisp purchasing in the multiples is typified by ‘stocking up’ behaviour with 12% of crisp buyers on a ‘big stock up shop’ compared with 2% of the wider sample. 48 Crisp Purchase Decision-Making Over 1 in 3 crisp shoppers either changed from the brand they had in mind pre-store or simply didn’t have a brand in mind pre-store. Did you buy the same brand of crisps as you intended before you went into the store? – base 152 DIDN'T HAVE A BRAND IN MIND, 8% Crisp purchasing is, therefore, quite reliant upon in-store point of purchase stimulus compared to other categories. YES, 63% NO, 29% This is a challenge for brands, particularly when price and special offer play such a significant role in purchase decision-making. occasion For Me Now Brand Flavour Format Price/Offer For Family Later Format Price/Offer Brand Flavour For Party Later Format Price/Offer Brand Flavour 49 Crisps: Key Pre-Store Influences Top of mind Irish Brands Tayto King Hunk Dory’s Perri Irish Brand Equity A category where the importance of Irishness is understood but increasingly undermined by price competition Key Shopper Typology The Bargain Hunter: Over 50% of bargain hunters choose the crisps they buy based on in-store POP factors such as price/offers. Shopper Mind-State High involvement Conscious Rational Shopping Awareness of prices and offers is important 50 Crisps: Key POP Influences Price Promotion Shoppers increasingly aware of competition on prices driven mainly by Walkers. Irish brands of crisps are perceived to be ‘a bit more expensive’ sometimes than their UK counterparts and own label products. Shoppers are on alert for mutli-pack offers (BOGOFF) again driven by Walkers. Irish brands perceived to be ‘less likely’ to make very competitive offer in-store yet UK competitors have built reputation for this. Crisps Placement Packaging Aisle ends are the expected location of low priced/promoted multi-packs. A case of more is more in this category – but not for everyone. Careful shoppers don’t want to over-stock the cupboards for health reasons so six pack is still order of day - but again with an eye on price competitiveness. The Bargain Hunter in particular seeks out aisle ends in crisp category. 51 Crisps: Category Insight Crisps Crisp shoppers rely on visibility of special offers in-store. What were you thinking at the crisps shelf? – base 179 Who is the cheapest 43% What else is on offer 28% A new pack caught my eye 10% I should buy Irish 8% Other 5% I only want enough for the weekend 5% Will they eat everything in the variety pack 2% Price and value are the key influencers for crisps in the multiples. Irish brands have no choice but to respond with competitive offers. 52 Soft Drinks 53 Soft Drinks Shopping occasions Shopping occasions for soft drinks – base 172 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 12% 27% 28% I AM ON MY MAIN WEEKLY SHOP I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP 35% 38% 5% 5% I AM ON A DAILY ROUTINE SHOPPING TRIP 7% 10% 18% I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED TOTAL SAMPLE 25% SOFT DRINKS Soft drink purchasing in the multiples is characterised by ‘stocking up’ and is part of shoppers weekly repertoire. Soft Drinks is a category that is now fundamentally driven by special offer deals on major brands. Note: Small base at “Just passing by and thought of something I needed” means the scores for this occasion should be treated with caution in this context. 54 Purchase Decision-Making in Soft-Drinks The power of large multi-national brands such as Coca Cola means many soft drinks products are intended purchases before a shopper gets to a store. Value, Price, Special Offers and Format Deal all play an influential role in shaping purchase decisions at the point of purchase. However, these decisions may be almost ‘instant’ with shoppers relying on visibility and instant recognition of an offer at aisle ends to convert them to purchase. The instant nature of shopper decisions in the soft-drinks category is illustrated by virtue of the fact that almost counter-intuitively we find Quick Shoppers over-index on POP influence in this category: POP Index – Soft Drinks Quick Shopper – 1.25 Quick Shoppers are influenced by what they see in-store more than any other typology. Bargain Hunter – 0.4 Visibility of offers drives this behaviour Average – 1.0 . Careful Shopper – 0.45 occasion For Me Brand Flavour/Variant Format Price/Offer For Family Price/Offer Brand Flavour Format For Party Price/Offer Brand Flavour Format 55 Soft Drinks: Key Pre-Store Influences Top of mind Irish Brands Consumers struggle to recall ‘Irish’ Soft Drinks brands. When prompted they suggest… Club Finches TK Irish Brand Equity A category where the importance of Irishness has been undermined by the power of international brands Key Shopper Typology The Quick Shopper 55% of soft-drink shoppers and a group that overindexes on POP influence. Shopper Mind-State Medium involvement Rational & Emotional Some subconscious shopping 56 Soft Drinks: Key POP influences Price A category that is hugely price driven in the multiples and very difficult for Irish brands to ‘win’ on price competition. Coca Cola, 7Up, Fanta & Pepsi are now expected to offer some offer of real value to shoppers Promotion BOGOFF is very common so bargain hunters, quick shoppers and careful shoppers are tuned in to those offers. Soft Drinks Packaging Placement Aisle ends are critical. Pack format is also hugely important and the multi-national brands ‘own’ many aisle ends and fixtures via the diversity of their pack formats. 57 Soft Drinks: Category Insight Soft Drinks Soft drink shoppers rely on in-store offer visibility. What were you thinking at the soft drinks shelf? – base 160 What do i have a home/can I stock up 17% Where is my favourite A new pack caught my eye Are there any specials 20% 10% 53% 58 Tea 59 Tea Shopping occasions Shopping occasions for soft drinks – base 172 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 12% 27% 29% I AM ON MY MAIN WEEKLY SHOP 38% 42% I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP 5% 4% 10% 12% I AM ON A DAILY ROUTINE SHOPPING TRIP I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED 12% TOTAL SAMPLE 18% TEA Broadly Tea purchase occasions are in line the purchase occasions for other categories – with one exception – the ‘big stock up shop’ where 12% of tea purchases are made. Tea is a category that consumers like to stock up on… 60 Tea Purchase Decision-Making Did you buy the same brand of tea as you intended before you went into the store? – Base: 157 Over 90% of the tea shoppers stuck with the brand of tea they had in mind pre-store. DIDN'T HAVE A BRAND IN MIND, 1% NO, 8% Commitment to tea brands – in the mainstream at least – is profound. YES, 91% Everyday Brand Format Price/Offer Special Requirements Type/Flavour Brand Format occasion Price/Offer 61 Tea: Key journey moments – Pre-Store Top of mind Irish Brands Barry’s Lyon’s Bewley’s Irish Brand Equity Key Shopper Typology Shopper Mind-State A category where the importance of Irishness is critical and shoppers have learned to ‘stockup’ on their favourites The Careful Shopper & The Bargain Hunter Low involvement - emotional 62 Tea: Key journey moments – POP Price Promotion The Bargain Hunter and the Careful Shopper are both interested in price but in many cases even they are so committed to an ‘Irish’ brand of tea that they may not switch brands. Shoppers rely on bulk offer to stock-up on a preferred brand – bargain hunters and careful shoppers in particular are prone to ‘stocking up’ as a mode of shopping behaviour. Tea Placement Packaging Given the importance of offers and ‘BOGOFFs’ aisle ends are a store hot-spot for tea shoppers Again the emphasis on bulk buying comes through with a focus on ‘extra-free’ packs and banded offers. 63 Tea: Category Insight Tea Shoppers want to stock-pile their favourite brand What were you thinking at the tea shelf? – base 145 A new pack caught my eye Are there any offers Where is my favourite 10% NPD and innovation is also influencing shoppers at POP – keeping the category ‘new and fresh’. 31% 59% At the fixture thoughts are very simple in the tea category – the majority of shoppers are focusing on their favourite brand and look out for offers… 64 Dairy Spreads 65 Dairy Spreads Shopping occasions Shopping occasions for dairy spreads – base 160 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 1% 27% I AM ON MY MAIN WEEKLY SHOP 38% 38% I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP 36% 5% 4% I AM ON A DAILY ROUTINE SHOPPING TRIP I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED TOTAL SAMPLE 10% 10% 10% 18% DAIRY SPREADS The main weekly shop is the key occasion for Dairy Spreads as shopper stock-up on a stable they need week in, week out. 66 Dairy Spread Shopper Typologies DAIRY SPREADS SHOPPER TYPOLOGIES – base 190 THE BROWSER, 5% THE BARGAIN HUNTER, 21% The shopper typology of greatest importance to the Dairy Spread category is the Careful shopper – 43% of our Dairy THE QUICK Spread buyers were careful shoppers. SHOPPER, 31% Purchase of Dairy Spreads for these shoppers combines both caution around the best ‘deal’ but also around the product itself. Irishness is hugely important but shoppers are noticing functional benefits increasingly from non-Irish brands and lower prices from shops own-brand. THE CAREFUL SHOPPER, 43% The challenge for Irish brands is to maintain perceived quality through communications on-pack and innovation. 67 Dairy Spread Purchase Decision Making Did you buy the same brand you intended to buy before you went into the store? DIDN'T HAVE A BRAND IN MIND, 7% NO, 11% The brand is still a huge influence for shoppers in this category as over 82% of shoppers stuck with the brand they had in mind pre-store. YES, 82% Everyday Brand Size Variant Price Special Requirement Functional benefit Brand Size Price occasion 68 Dairy Spreads: Key Pre-Store Influences Top of mind Irish Brands KerryGold DairyGold Low Low KerryMaid Irish Brand Equity Irishness is critical but the main Irish brands are relatively undifferentiated – functional benefits are mainly associated with overseas brands Key Shopper Typology Shopper Mind-State The Quick Shopper Low involvement – Emotional 45% of all dairy spread purchases are made by the quick shopper Because many shoppers rely upon brands to cue quality 69 Dairy Spreads: Key POP Influences Price Price is becoming a key influencer at the fixture for ‘generic’ dairy spreads that are under threat from ‘me too’ own label products. Functional spreads are perceived to be very expensive. Promotion Shoppers complain of how few offers exist in the Dairy Spreads category. Dairy Spreads Packaging Placement Again, the chilled cabinet is one that facilitates little in the way of browsing. The packaging colour of the category is ‘gold’. Although functional spreads are cutting through with their different colour packaging palate. 70 Dairy Spreads: Category Insight Dairy Spreads Shoppers want the best quality spread and increasingly see new products that challenge the quality of traditional Irish favourites. What were you thinking at the dairy spreads shelf? – base 174 Are any on offer? 7% I'd like to buy some of them but they are too expensive 26% A new pack caught my eye I should buy Irish Where is my favourite? 24% 15% 28% Shoppers are noticing ‘functional benefit’ spreads such as benecol, flora proactive but barriers to purchase exist – taste, price. An opportunity for Irish spreads to target. 71 Fresh Soup 72 Fresh Soup Shopping occasions for fresh soup – base 160 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 4% 27% I AM ON MY MAIN WEEKLY SHOP 29% 38% I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP 29% 5% 8% 10% I AM ON A DAILY ROUTINE SHOPPING TRIP 13% 18% 17% I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED TOTAL SAMPLE FRESH SOUP The Quick Top-Up Shop is a key occasion for Fresh Soup shoppers – even in the multiples – meaning convenient ready to use formats are increasingly driving purchase behaviour. Shoppers often want to consumer fresh soup straight away. 73 Fresh Soup Purchase Decision-Making Special Offers and Brand Commitment account for about two thirds of purchases in Fresh Soup. Why did you choose the brand you did? – base 160 On special offer 38% My usual brand 36% Wanted to try something different 10% An interesting flavour 10% Can heat straight away occasion But it is notable a further third of purchases are driven by innovation in pack design or even product composition. A lot of these purchases are for the shopper themselves. 6% For special meal Brand Flavour Format Price/Offer For me now e.g. lunch Format Flavour Brand Price/Offer For family Type/Flavour Format Price/Offer Brand 74 Fresh Soup: Key Pre-Store Influences Top of mind Irish Brands Avonmore Cully & Sully Irish Brand Equity Irishness is valued in this category but occasion specific purchasing means pack format is increasingly influential. Key Shopper Typology Shopper Mind-State Low involvement – emotional The Quick Shopper & Medium involvement - rational 75 Fresh Soup: Key POP Influences Price Price is playing an important influencing role at POP on shopping occasions for ‘the family’ where large volumes are required. Litre packs of Fresh Soup dominate that space but private label is fighting hard for shoppers’ minds with lower prices. Promotion The family purchase occasion encourages shoppers to look for ‘bulk buying’ value. Extra fills and BOGOFF are the real stand out promotions for shoppers. Fresh Soup Placement Packaging As with cheese, the chilled nature of the category doesn’t encourage browsing so this is a low involvement purchase with shoppers making decisions quickly and relying on highly visible stimulus such as promotions or packaging… The quick shopper in particular is relying upon pack formats as a ‘cue’ in their purchase decision-making process. Particularly when purchasing soup for immediate consumption e.g. microwaveable formats. 76 Fresh Soup: Category Insight Fresh Soups Fresh Soup shoppers want to try new recipes and new products. What were you thinking at the fresh soup shelf? – base 120 That's a new product 12% How does this compare to other brands Are there any offer I should buy Irish A new pack caught my eye 15% 10% 11% 17% 35% Where is my favourite Pack innovations is interrupting some consumers at the fresh soup fixture 77 Cheese 78 Cheese Shopping occasions Shopping occasions for cheese – base 160 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 1% 27% 28% I AM ON MY MAIN WEEKLY SHOP 38% 42% I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP I AM ON A DAILY ROUTINE SHOPPING TRIP I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED TOTAL SAMPLE 5% 5% 10% 11% 18% 14% CHEESE Cheese purchasing occurs in-line with the shopper occasion pattern identified across the sample. However, it is notable that the category is more frequently shopped on a ‘quick top-up shop’ & a casual ‘just passing by’ shop. This illustrates the low involvement and quick nature of purchasing in the mainstream cheese category. 79 Cheese Shopper Typologies CHEESE SHOPPER TYPOLOGIES - base 203 Unsurprisingly, 43% of the cheese shoppers we spoke to were ‘quick shoppers’, illustrating the ‘fast paced’ nature of cheese purchase behaviour. THE BROWSER, 3% THE BARGAIN HUNTER, 22% THE QUICK SHOPPER, 43% Cheese purchasing for the mainstream consumer is driven by recognition of a preferred brand – particularly amongst quick shoppers. Notably, careful shoppers are more inclined to take time to look for offers on own label cheeses – as are bargain hunters. THE CAREFUL SHOPPER, 32% 80 The cheese purchase decision-making Did you buy the same brand of cheese as you intended before you went into the store? – base 203 DIDN'T HAVE A BRAND IN MIND, 9% However, 25% of shoppers are uncommitted to their cheese brand and so are open to generic or own label offers. NO, 16% Decision-making is almost instant in this category with the type of cheese – usually cheddar – a given. The brand plays a key role – with ‘Irishness’ a factor even in own-label cheese. YES, 75% occasion Three quarters of shoppers have a brand of cheese in mind before going into a store and bought that brand at the fixture. Everyday Type Brand Format Price/Offer Special occasion Type Brand Format Price/Offer For now Type Brand Format Price/Offer 81 Cheese: Key Pre-Store Influences Top of mind Irish Brands Irish Brand Equity Key Shopper Typology Shopper Mind-State Low involvement Kilmeaden Dubliner Mitchelstown Galtee Easy-Singles Charleville Irishness is critical as an imprimatur of quality – but brand commitment is overshadowed by commitment to type of cheese The Quick Shopper 43% of cheese shoppers are quick shoppers. Sub-conscious shopping Decisions made instantly Perceived brand ‘quality’ is huge influencer prestore. 82 The cheese category field of vision Many of the cheese shoppers we spoke to described how the shopping the category is like looking at a ‘yellow’ wall. Irish cheese is dominated by cheddar blocks with very little else interrupting the shoppers’ in-store experience – excepts for stores that have dedicated premium cheese fixtures. The yellow wall… The own label threat… Own label cheeses are fueling an homogenous look and feel to the cheese fixture and so brand owners need to invest in unique quality packaging to stand-out from emerging low-cost alternatives… 83 Cheese: Key POP influences Price Promotion Pricing on mainstream cheese is considered to be reasonably price competitive by shoppers. The range and choice of mainstream cheese brand available creates a sense of competitiveness in the category. Cheese is not a category that shoppers readily associate with special offer promotions. But prestore promotion – in the form of advertising is playing a significant role in influencing shoppers. The brand is very important in this category. Cheese Placement Shoppers tend not to spend too much time ‘browsing’ the cheese fixture – mainly because chilled cabinets are a cold environment. Packaging But pack innovation is playing an important POP influence for shoppers as new formats allow brands to achieve greater ‘stand out’. Zip lock bags and re-sealable packaging – in particular. 84 Cheese: Category Insight Cheese Cheese shoppers want a bit more excitement… What were you thinking at the cheese shelf? – base 145 How does this compare to other brands 15% Are there any offer 10% I should buy Irish 11% A new pack caught my eye Where is my favourite 15% 49% Brand commitment is strong in this category but the importance/presence of Irishness as a consideration is also a threat as own-label cheese are gaining in-roads as viable alternatives. New packaging ‘catching shoppers’ eyes’ is an essential means of reinforcing quality cues. 85 Yoghurt 86 Yoghurt Shopping occasions Shopping occasions for yoghurts – base 172 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 2% I AM ON MY MAIN WEEKLY SHOP 24% 27% 38% I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP 43% 5% 6% 10% I AM ON A DAILY ROUTINE SHOPPING TRIP 12% I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED 14% TOTAL SAMPLE 18% YOGHURT Yoghurt purchasing occurs in-line with the shopper occasion pattern identified across the sample. However, like cheese, the category is more frequently shopped on a ‘quick top-up shop’ & a casual ‘just passing by’ shop. This indicate yogurt is something of a ‘low involvement’ purchase. 87 Yoghurt Purchase Decision-Making Did you buy the same brand of you intended before to buy before you went into the store? – Base 178 DIDN'T HAVE A BRAND IN MIND, 5% Despite special offers playing an important role when shopping for the family, yoghurt shoppers tend to ‘stick’ with the brands they intend to buy pre-store. NO, 12% But ‘stocking-up’ behaviour in this category means the multi-pack format is very important to shoppers. Multi-packs allow shoppers to feel they are getting a good deal. YES, 83% For Me occasion For Family Brand Flavour Format Price Offer Functional Benefit Brand Flavour Format Format Price/Offer Brand Flavour Price/Offer 88 Key Shopper Typology in Yoghurt The Point of Purchase Index for Yoghurt reveals the Quick Shopper should be a major concern for Irish brand owners. Quick Shoppers are the largest segment and they over-index on the influence of Point of Purchase… Average Point of Purchase Influence: 17% So using 17% as our baseline – 17% 17% = 1 Yoghurt POP Index by Shopper Typology Quick shoppers are influenced by factors at the fixture such as price, offer, format The Quick Shopper – 1.53 The Careful Shopper – 0.88 The Quick Shopper; 1.53 The Browser – 0.07 The Bargain Hunter – 1.18 The Bargain Hunter; 1.18 INDEX = 1 The Careful Shopper;0.88 The Browser; 0.07 89 Yoghurt: Key Pre-Store Influences Top of mind Irish Brands Irish Brand Equity Key Shopper Typology The Quick Shopper: Yoplait Glenisk Irish brands are highly valued in this category because of our strength as a dairy producer. 42% of Yoghurt Shoppers are Quick Shoppers – many of whom rely upon familiarity and brands. But also many of whom make decisions at the fixture. Shopper Mind-State Low-Medium involvement Rational & Emotional Some subconscious shopping 90 Yoghurt: Key POP Influences Price Promotion Price is, of course, playing a role but consumers tend to judge prices in this category via ‘value’ and what they can get in a multi-pack format. Notably, little or no reference at all to POP promotion in the category across the research. An opportunity to ‘interrupt’ shoppers with fridge merchandising? Yoghurt Placement Packaging Chilled category means shoppers ‘seek out’ the yoghurt section – very little expectation of aisle end offers. However, category blocking is playing an important role for consumers – i.e. kids, functional, organic etc. Multi-pack formats are the order of the day for many consumers but, notably, some brands have achieved stand-out via larger single serve formats e.g. Glenisk. 91 Yoghurt: Category Insight Yoghurt Yoghurt shoppers want to stock-up with special offer multi-packs. What were you thinking at the yoghurt shelf? – base 155 Where is my favourite brand 40% Are there any specials 35% A new pack caught my eye 9% I only buy Irish yoghurt Other 11% 5% The focus on special offers centers around multi-pack special offers. But Irishness and ‘new packs’ are also in shoppers thoughts at the fixture – small brands can stand out because of the routine nature of this shopping occasions but need to offer value via multi-pack offers. 92 Water 93 Water Shopping occasions Shopping occasions for water – base 160 I AM ON A BIG STOCK-UP SHOPPING TRIP 2% 4% 27% 27% I AM ON MY MAIN WEEKLY SHOP 38% I AM ON A QUICK TOP UP SHOP I AM ON A LAST MINUTE/EMERGENCY SHOPPING TRIP I AM ON A DAILY ROUTINE SHOPPING TRIP 34% 5% 6% 10% 5% 18% I WAS JUST PASSING BY AND THOUGHT OF SOMETHING I NEEDED 24% TOTAL SAMPLE WATER Water shopping occasions are reflective of typical shopper occasions in the multiples with shoppers buying water in a range of situations. Consumers tend to buy water as the need it so some of the multiples water shoppers were literally ‘passing trade’ shoppers who had an immediate need for water. 94 Water Purchase Decision-Making The key challenge facing Irish water brands, not unlike soft-drinks brands, is shoppers are stocking up on big name brands at discount prices. Water has become a commodity purchase for many shoppers with the brand slipping in importance on the decision-tree. For me now Still Size/Format Brand Price/Offer Sparkling Brand Price/Offer Flavoured Brand Price/Offer Still Price/Offer Size/Format Brand Sparkling Price/Offer Size/Format Brand Flavoured Price/Offer Size/Format Brand occasion For family 95 Water: Key Pre-Store Influences Top of mind Irish Brands Ballygowan Tipperary Kerry Spring Rockwell Isca Irish Brand Equity Key Shopper Typology Shopper Mind-State Irish names offer a reassuring sense of quality but increasingly the category is becoming generic. The Bargain Hunter & The Careful Shopper account for over 50% of water shoppers and are often driven by price and special offers. Medium involvement rational 96 Water: Key POP Influences Price Promotion The water category in the multiples is increasingly becoming all about price. Value is the order of the day with major international brands squeezing prices to rock bottom. In-store POP is hugely influential via banded offers and multi-packs. These offers are now expected by shoppers. Water Placement Packaging Offers at aisle ends are expected but discounts multi-pack bottles of water are also now common and shoppers have begun to rely upon ‘bulk’ on the fixture as a cue to value. New formats are rare in the main water fixture – in the multiples – convience formats such as sport tops play a less influential role in supermarkets. But multipack formats are shaping brand choice. 97 Water: Category Insight Water Irish shoppers want value added in water… What were you thinking at the water shelf? – base 174 How much can I carry? Where are the lunchbox packs? 7% 10% Who is cheapest this week? How many can i get? 31% 12% Are there any offers? 40% Tipperary Kid’s bottles is a great example of NPD that is standing out at the fixture. 98 5 Implications 99 Category Implications THE SHOPPER JOURNEY DIFFERS BY CATEGORY Brand owners can use this research to frame their shopper strategy for their brands by answering three questions: 1. Who are the shopper typology you want to target? 2. What is shopper occasion you want to target? 3. What is the shopper insight? PRIORITISING THE SHOPPER TYPOLOGY FOR YOUR BRAND This research provides a category level snapshot of the key shopper typologies – brand owners need to decide which type of shopper they want to target in first place. By understanding the purchase decision-making process for a category, the brand owner can develop strategies that will reach our identified shopper typologies in-store. Within those shopper typologies, differing modes of shopping occur at a category level. this research reveals a number of different modes of shopping behaviour in the multiples. Brand owners need to recognise if their brand is reaching shoppers who are ‘highly involved’ in their shopping trip or simply shopping subconsciously. THE SHOPPER JOURNEY DIFFERS BY CATEGORY The importance of journey stage to an individual category should not be underestimated. Some food and drinks categories are heavily reliant upon the in-store experience (regardless of who the shopper is) whilst other categories are driven by perceptions of products and brands pre-store. Brand owners need to decide if they want to drive shoppers to a store with brand messages and communication – or simply ‘interupt’ shoppers when they get to the store. This research reveals that some categories simply cannot rely on in-store interuption – the brands need to live a larger life pre-store by creating an image and set of associations that is compelling for shoppers. 100 Shopper Strategy Screener; Example Cheese Who is the shopper typology we want to target? What shopper occasions are they likely to be on? THE QUICK SHOPPER; 43% of cheese shoppers Cheese is purchased across a range of occasions and is a routine purchase. LOW INVOLVEMENT Cheese shopper want a bit more excitement. What is the shopper insight we need to address? IMPLICATION Mainstream cheese brand need to create excitement on-shelf as Quick shoppers are in beta-mode, subconsciously shopping. OPPORTUNITY Pack Innovation. 101 Category Implications: Conclusions Summary Crisps Irish brands must demonstrate they are competitive via in-store visibility. Soft Drinks Irish brands must remind shoppers they are Irish in-store. Tea Irish brands must facilitate stocking up. Dairy Spreads Irish brands must constantly reinforce their quality through innovation. Fresh Soups Irish brands must offer value through new formats. Cheese Irish brands must constantly reinforce their quality through communications. Yoghurt Irish brands must facilitate stocking up with multi-pack format offers. Water Irish brands must facilitate stocking up with multi-pack format offers. 102