Tomorrow’s Shopper
- the evolution of shoppers in Ireland and
the UK
Insight Session
16 September 2013
Paula Donoghue
Insight & Brand Manager
Agenda
• Key drivers shaping tomorrow’s
shopper
• Global examples of how companies
have responded
• Key take outs for Irish food & drink
companies
Drivers shaping tomorrow’s shopper
landscape?
1. Economic pressures
continue to dominate
• Rising food prices
• Disposable income down
6.5% in UK
• Basket cost
12% in ROI
And are
Changing how people shop
Aldi and Lidl combined share of grocery
market (%)
14
12
10
2/3 are preplanning
their food shop
Choice of retailer
8
7.1
7.9
8.8
9.9
10.6
15
6
4
2
0
2008
2009
2010
2011
4.7
5.1
5.2
5.3
2008
2009
2010
2011
2012
2013
14
12
10
8
6
4.4
6.9
4
2
0
2012
2013
Changing how people shop
Trips per household
60.0
‘Little & often’
54.2
55.9
56.3
12 w/e 20 March '11
12 w/e 18 Mar '12
12 w/e 17 Mar '13
50.0
40.0
Average spend per trip
€ 25.00
€ 22.30
€ 21.60
€ 21.80
12 w/e 20 March '11
12 w/e 18 Mar '12
12 w/e 17 Mar '13
€ 20.00
€ 15.00
€ 10.00
Trips per household
60.0
58.8
59.5
58.9
55.0
40 %
50.0
45.0
40.0
12 w/e 20 March '11
‘Mini Main’
12 w/e 18 Mar '12
Average spend per trip
sold
on promotion
£15.00
12 w/e 17 Mar '13
£14.09
£14.54
£15.21
12 w/e 20 March '11
12 w/e 18 Mar '12
12 w/e 17 Mar '13
£10.00
Sources: The Journal, Feb 2013; IGD 2013, Kantar Worldpanel
Own label
continues to grow
Growth of Own Label & Branded in the Total Market – 12 w/e
8%
6%
Own Label
(& No Brand
Name)
4%
2%
0%
Branded
-2%
-4%
-6%
J
J
A
S
O
O
N
D
J
F
M
A
M
J
J
A
S
S
O
N
D
J
F
M
7%
6%
Own Label
(& No Brand
Name)
5%
4%
Branded
3%
2%
1%
0%
J
J
A
S
O
O
N
D
J
F
M
A
M
J
J
A
S
S
Source: Total Grocery – 12 w/e data to 17 March 2013
Source: Kantar Worldpanel
O
N
D
J
F
M
2. Convenience
Smaller formats
affecting formats
10% in last 2 years and
due to grow by
12%
by 2015
3. Trust & Transparency
• Desire for great transparency
• Shoppers doing more pre
purchase research
• Popularity of local foods rising
4. Technology creates tipping point in shopper behaviour
By 2015, 9 in 10
will own a
smartphone
4G
=5x
download
speeds
By 2015, 1 in 4
will own a tablet
Brands and retailers must develop a
multi-channel approach
94%
purchased
online in 2012
€62
ave spend per
€22
instore
shop online vs.
M Commerce set to rise by
115%
By 2015, 50% of all
online sales will be social
Purchase path has gone from
this….
Awareness
Consideration
Preference
Purchase
Loyalty
…..To the
multi-dimensional
Purchase Fish
Four drivers shaping tomorrow’s
shopper
 Continued
economic pressure
Economic pressure
 Expanding needs around
convenience
 Transparency & Openness
 TECHNOLOGY
Global Examples to the Drivers
Demonstrating
Tailored suggestions for product use at till
brand value
Demonstrating product versatility
on-shelf
KEY TAKEOUT FOR IRISH BRANDS:
Demonstrate value to drive loyalty with price sensitive
shoppers
Offering personalised promotions,
pricing and value propositions
Coupons on fixture for easier savings
Personalised pricing and benefits
KEY TAKEOUT:
‘Coupon cutting’ is being replaced with targeted
offers using technology at POP
Enabling research & recommendation
at the point of purchase
Shopper reviews and expert knowledge on-shelf
Tailored, real time reviews based on personal profiles
KEY TAKEOUT:
Food and drink brands have to be where shoppers are
researching and sharing
Building trust through greater
transparency
Transparency around social and
environmental credentials at
point of purchase
Visibility of real-time supply
chain for individual products
KEY TAKEOUT:
Technology will transform transparency
Championing
origin and local
Crowd sourcing shopper views
on local foods
produce in-store
Championing local ingredients
instore
KEY TAKEOUT:
Locally sourced food and drink maintains strong
appeal to shoppers
Flexible fulfilment and delivery at
the point of need
Continued rise of ‘Click and Collect’
grocery model
New channels for
brand access and delivery
KEY TAKEOUT:
Flexibility becoming a key requirement for
shoppers as they move into multiple channels
Connecting with shoppers on their
Virtual supermarkets on-the-go
daily path
Innovative vending solutions
KEY TAKEOUT:
Almost any location has potential to be a
retail outlet
Key takeaways for Irish food &
drink companies
What do winning brands need to do to
succeed with tomorrow’s shopper?
1. Continue to respond to challenge
of own-label
2. Work with retailers to engage
shoppers at point of purchase
What do winning brands need to do to
succeed with tomorrow’s shopper?
3. Have a transparent supply chain
4. A proactive and comprehensive
digital strategy, with multi-channel
presence
What do winning brands need to do to
succeed with tomorrow’s shopper?
5. Effective data management
capabilities
Tomorrow’s Shopper
- the evolution of shoppers in Ireland and
the UK
Insight Session
16 September 2013
Paula Donoghue
Insight & Brand Manager