SHOPPERS IN STORES
WHAT WINS THEIR WALLETS?
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
PRESENTATION SPEAKERS
Nikhil Sharma
Daniel Jenski
VP, Consumer & Shopper Analytics,
Nielsen
Associate Director of Consumer Analytics,
Mondelēz International
#Consumer360
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
SHOPPER QUIZ
• % of CPG sales that occur in brick & mortar stores?
96%
• % of brand decisions that are made in-store?
67%
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SHOPPING IS BECOMING MORE COMPLEX
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
EXPONENTIAL GROWTH
of product advertisement
24,000 NEW
retail stores since 2009
50% INCREASE
in SKUs in 7 years
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ALL MARKETERS WANT TO DRIVE GROWTH BY
OPTIMALLY SERVING THE SHOPPER
However, the manufacturer and retailers mindset can be different
DRIVE GROWTH
RETAILER
EXCESSIVE CHANGE
MAY DISRUPT
SHOPPERS
More Shoppers
More Trips
More Items
SHOPPERS
GOAL
Optimally serve shoppers
Grow sales
Maximize profitability
DRIVE GROWTH
MANUFACTURER
MORE INNOVATION
TO ENGAGE &
RETAIN SHOPPERS
#Consumer360
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TECHNOLOGY CAN HELP DRIVE GREATER
ALIGNMENT IN SHOPPER MARKETING
MEASURED
CHANGE
RETAILER
GOAL
RAPID
CHANGE
TECHNOLOGY =
a KEY enabler!
Optimally serve shoppers
Grow sales
Maximize profitability
MANUFACTURER
#Consumer360
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
IN FACT, TECHNOLOGY IS ALREADY BEING USED
EXTENSIVELY IN SHOPPER MARKETING
geo-location based advertising
PLACE
prior lists & recommendation services
virtual store technology, shelf imaging
PLAN
PURCHASE
smartphone payment methods
digital ethnography
DEMAND
Path to Purchase
ENGAGE
social advertising
BUY
CONSUME
EVALUATE
social listening
technology enabled consumption tracking
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TODAY WE WILL DEMONSTRATE HOW TWO
TECHNOLOGIES ARE HELPING TO WIN IN-STORE
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
1
What is it
used for?
What
benefit does
it drive?
Virtual Store
2
Image Recognition
Easier Testing
Better Execution
“Understand what to do in-store”
“Ensure it actually gets done”
• Shelf layout
• Pack and Price Architecture
• Merchandising
• Compliance
• Availability
• Visibility
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
1
Virtual Store
Easier Testing
“Understand what to do in-store”
#Consumer360
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VIRTUAL STORE TECHNOLOGY
Online platform to measure in-store shopping behavior
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Consumers can
navigate virtually
Can customize any retail
environment from big box to
small format – traditional to
Modern trade
Virtual Store
Can help optimize: price,
promotion, assortment
packaging, new product
impact and more!
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MONDELĒZ WANTED TO LEVERAGE VIRTUAL
STORE TESTING
The multipack business for Biscuits had been decreasing for years
while the multipack business for Salty Snacks had been growing
There were many hypotheses about the cause and the possible solutions:
Alternative pricing & promotion strategies?
New Pack counts or varieties?
Alternative shelf layout?
How do we test these ideas in an efficient & cost-effective way without alienating shoppers?
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
VIRTUAL STORE GIVES MONDELĒZ A ‘SAFE’
TESTING ENVIRONMENT
Study Design
•
21 shelf sets
•
400 monadic (stand-alone) reads
•
Screened for primary grocery shoppers 18-65 who
purchased cookies, crackers or salty snacks in the last 6
months
• MDLZ Multi-pack buyers
• MDLZ Multi-pack non-buyers
• Salty Snack multi-pack buyers
• Moms/Dads w/kids ages 2-5, 6-12, 13-17
•
Virtual Store Demo
Included post-survey questionnaire
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
WE WERE ABLE TO TEST VARIOUS SCENARIOS…
1
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
… AND QUANTIFY THE EXPECTED IMPACT
Reduce unit count in an
existing multi-pack product
Mondelez
would lose
2.6 Million
Units to
competing
brands!
Brand Impact
We tested
Category Impact
Our Retail
Partner
would sell
1.4 Million
fewer Units
of the
category!
27 such ideas … in only 12 weeks!
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MONDELĒZ DEVELOPED TANGIBLE IDEAS TO
REVERSE THE DOWNWARD BUSINESS TREND
Consider
downsize
carefully
Launch
new sizes
Don’t be too
aggressive with
new size promo
Maintain key
flavors in line
Larger sizes can work
on bottom shelf,
but smaller sizes tend
to perform better
at eye level
Do not include
constant consumables
in a multipack shelf
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
WE IMPROVED OUR RETAIL PARTNERSHIPS &
REALIZED SEVERAL OTHER BENEFITS
Quicker Relative
To In-Market
Testing
No Need To
Manufacture
Test Products
No
Inconvenience
To Our Retail
Partners
Cheaper
Relative To InMarket Testing
Able To Test
Results In Mass
and Grocery
Formats
Tested More
Ideas Compared
To In-Market
Testing
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THE VIRTUAL STORE TECHNOLOGY IS A POWERFUL
SOLUTION TO DRIVE IMPACT AT RETAIL
The Benefits:
Confidential and secure
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Does not disrupt retailers
Comprehensive and powerful management tool
Less expensive and faster
Flexible
Global solution
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
2
Image Recognition
Better Execution
“Ensure it actually gets done”
#Consumer360
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
EXECUTION AT RETAIL IS CRITICALLY IMPORTANT
INNOVATION
MARKETING
As an industry, we invest
significantly here…
EXECUTION
… but often fall
short here
#Consumer360
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
WHAT IS REALLY HAPPENING IN STORE?
?
“What you think is happening”
vs.
“What is actually happening”
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IMAGE RECOGNITION TECHNOLOGY
Smartphone based technology to help improve in-store execution
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Revolutionary technology that
applies automatic image
recognition to the tracking of
in-store implementations
Transforms digital
photographs taken at the
point of sale into planograms
Shelf Imaging
Allows you to track and
evaluate the status of
planogram compliance & key
KPI’s such as ‘share-of-shelf’
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
SHELF IMAGING ALLOWS YOU TO FIX ISSUES AT
RETAIL IN A NEARLY REAL TIME MANNER
Picture of Actual Shelf
Planogram of Actual Shelf
“How Well Are We Doing?”
“What Should We Fix?”
Real
Agreed
Differences
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
A HEALTH & BEAUTY MANUFACTURER USED IMAGE
RECOGNITION TO EXECUTE BETTER AT RETAIL
BUT
Long history of being a
leading innovator in the
skin care category
Had significant
opportunities to improve
how they tracked &
executed in-store
Current methods of tracking execution were sub-optimal
Manually collected self reported data + Time consuming consolidation process = Long timeframe for shelf changes
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
EXECUTION IMPROVED SIGNIFICANTLY RESULTING
IN SUBSTANTIALLY LOWER OPPORTUNITY COST
Food For Thought…
Stores Meeting Minimum
‘Share of Shelf’ Requirement
• What are your sales
from promotions?
(Indexed to 100)
February
May
35
39
For a brand with nearly $45MM in
sales from promotions…
+11%
$4.5 Million
Improvement in
Execution!
Incremental Sales
Opportunity!
• How well are your
promotions executed
at retail?
• What could an 11%
increase in
promotional sales
mean for your
business?
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
IMAGE RECOGNITION TECHNOLOGY CAN
DELIVER OTHER SUBSTANTIAL BENEFITS
Granular
Data
Quick
Turnaround
Lower ‘opportunity cost’
for retailers
High
Accuracy
Improved shopper
satisfaction
More effective sales
force deployment
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TECHNOLOGY CAN DRIVE TANGIBLE OUTCOMES
AND MORE EFFECTIVE SHOPPER MARKETING!
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
1
Virtual Store
2 Image Recognition
Easier Testing
Better Execution
“Understand what to do in-store”
“Ensure it actually gets done”
#Consumer360
26
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
IN-STORE TECHNOLOGIES CAN PROVIDE A MYRIAD
OF BENEFITS
Scalability
Deploy at scale compared to some traditional methods
Cycle Time
Significantly improve ‘time to market’
Privacy
Shopper Disruption
Offer privacy against competitors
Result in limited to no disruption to the shopper
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
AN ISSUE-FOCUSED APPROACH REMAINS KEY TO
APPROPRIATE USE OF TECHNOLOGY
Clearly identify the issue
you’re looking to solve
Set clear objectives/
measures of success
Think through various
approaches and tools
Determine whether and
what part technology can
play in the full solution
#Consumer360
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