Delivering a 21st Century Benefit
Through Shopper Insights
Chris Burns
Director of Sales
DeCA’s Vision
Understand
deliver
our customers
and
a 21st Century
Commissary benefit
2
The DNA For Success
Articulating the
direction and
values of DeCA
Communications,
strategies and
metrics to enable
internal success
and performance
Shopper
Insights
Securing a
deeper
understanding of
patrons’ wants
and needs in the
shopping
experience
Concept
Team
Core team charged
with outlining the
strategy and rules
of engagement
New
Vision
Employee
Engagement
Industry
Engagement
Communications,
strategies and
metrics to enable
industry success
and partnership
3
Millions Of Data Points To Analyze…
4
Information Drives Decision Making
Defense
Manpower
Data Center
(DMDC)
American
Customer
Satisfaction
Index (ACSI)
Commissary
Customer
Service
Survey
(CCSS)
Nielsen
Homescan
Panel
Ad Hoc
Industry
Brand
Insights
Military
Shopper
Insights
Study (MSIS)
Shopper
Insights
POS and
Market Data
5
Shopper Insights Drive Success
Our Goal:
Integrate, align and
apply shopper insights
to deliver a 21st century
benefit for our patrons
6
Who Are Our Customers
Total Eligible
(including
Dependents)
12.2M
Total Eligible
Households
5.3M
Customers
Within 20 Miles
3.1M
Source: Defense Manpower Data Center, 2011 Commissary Customer Service Survey
7
Eligible Population Versus Commissary Users
We Must
Come up With
Strategies to
Get More
Eligible
Shoppers into
our Stores!
Eligible Households Within 20 Miles
Commissary Users
Source: Defense Manpower Data Center, 2011 Commissary Customer Service Survey
8
Understanding Those Who Do And Do
Not Use Their Commissary Benefit
Heavy
Shoppers
Light
Shoppers
NonShoppers
• Spend over $3,000/year in 34 trips
• Income: $30 to $50K+
• Age: Under 35 and 55+ (Bi-modal)
• Lifestage: Younger Bustling Families and Senior Couples
• Spend about $450/year in 7-8 trips
• Income: $100K+
• Age: 55+
• Lifestage: Established Couples and Empty Nesters
• Eligible shoppers who don’t shop the commissaries
• Income: Lower income
• Age: No specific age; typically male head of household
• Lifestage: Singles and small scale families
Source: Nielsen Homescan 52 Weeks Ending 12/31/11
Light Shopper A/O = 26.6%; Heavy Shopper A/O = 18.7%
9
FOCUS: Balance The Scale
Light
Shoppers
New
Patrons
Welcome!
• Source: Nielsen Homescan 52 Weeks Ending 12/31/11
• Light Shopper A/O = 26.6%; Heavy Shopper A/O = 18.7%
• Does not include Drug and Dollar visits
Heavy
Shoppers
Heavy shoppers
spend over 2X
more than total
shopper & over
4X more than
light shoppers!
10
Segmentation Helps Identify
And Target Shoppers
Shopper Segmentation
A multi-dimensional approach
that groups shoppers based on
a common set of attributes and
behaviors that are actionable.
11
Shopper Segmentation Framework
Segment
Age
Income
Family
Size
DeCA
Trip
Freq.
DeCA
Trip Size
Store
Portfolio
Breadth
DeCA
Loyalty
Life
Stage
Segment
One
Segment
Two
Demographic, attitudinal, and behavioral
characteristics
Segment
Three
Segment
Four
12
Targeting Shopper Segments
Military Lifestage/Behavioral Model
Single service member
•
•
•
•
Young unmarried
Lower income
Male
Frequent small convenience trips
On-installation family
•
•
•
•
•
Young families
Larger households - 2-3 children
Lower to moderate income
Shared shopping responsibilities
Frequent price/convenience stock ups
Off-installation family
•
•
•
•
•
Established Families
Smaller families with 1-2 children
Moderate to upper-moderate income
Female primary shopper
Less frequent price driven stock ups
Retirees
•
•
•
•
Older empty nesters
Wide range of income levels
Female primary shopper
Infrequent, but regular price-driven
stock up trips
13
Marketing To Single Service Members
Single Soldier “Stan”
My name is Stan. I am a 29 year old male soldier. I grew up in in
Oregon, but I am stationed at Fort Sam right now.
I am junior enlisted, so I earn less than $30K. Before signing up I
completed 2 years of college, which I plan to finish someday. I
live in an on-post apartment with a roommate which is
convenient, economical and fun.
I like the commissary because it is close and convenient (right on
my way home after work). I’ll often stop by after work to get
something I can make quickly for dinner rather than eating in the
chow hall.
Key Statistics
•Total Spend: $161/mo.
•Age: under 30 yrs.
•Income: less than $40K
•Family Size: 1
•Education: some college
•Trip Frequency: 1x/wk+
•Trip Driver: Convenience
Source: MSIS, CCSS.
I usually don’t buy a lot a one time so I can use the self checkout
to get in and out quickly. I also go there occasionally to stock our
fridge with food and sometimes spend over $100 on these visits –
mostly quick meals and snack items I can make in the
microwave. Sometimes we will cook a big meal for a group of
friends and the commissary is good for that, too, since it is close,
the selection is good and the price is right.
Even though I like the commissary I do about half my grocery
spending off-post - it is nice to get out of the military
environment once in a while.
Marketing To On-Installation Families
On-Base “Blummers”
We are a young family, 33 and 35 years old with three children. Life
is hectic, particularly when I am home between deployments. I am
proud to serve my country and my family is proud of my service which
means a tremendous amount to me.
I graduated from college with an engineering degree before I joined
the service which has given me great opportunities. I am a mid-level
officer and my wife works part time. We are doing OK financially, but
need to be careful of what we spend and we use the WIC program to
help with our youngest. My wife does a great job of managing our
family budget, which is always tight.
Key Statistics
•Total Spend: $395/mo.
•Age: 30-40 yrs.
•Income: $40-$90K
•Family Size: 2-5
•Education: college grad.
•Trip Frequency: 1+ x/wk
•Trip Driver: price/conv.
Source: MSIS, CCSS.
We live on base because it is more economical, convenient to
work, and feels safe. We are pretty loyal to the commissary and rely
upon it to make ends meet; we go there at least once a week. We like
the commissary for its low prices, convenient location, great sales,
plus just feeling safer there.
However, we still like to explore the variety and take outings to
stores off-base where we can be more relaxed. We end up spending
about half our grocery dollars there. When we go outside the gate we
are typically looking for:
• A fun and relaxing environment
• Great sales that we have seen in store fliers or websites
• Unique or specialty items that are only sold there
Marketing To Off-Installation Families
Off-Post “Olivers”
I would call us a settled family. We are both 38 years old and have
2 kids at home. I graduated from college before the service and my
husband got part way through and never went back. Both my husband
and I have been in the service for quite a while – I am a mid-level
officer and my husband is senior enlisted.
With both of us working life is crazy, particularly if one of us is
deployed. Even though we both work, money always seems to be
tight. We have a budget and are disciplined about following it.
We use the commissary for most of our big grocery trips which is
about 1 or 2 times a month. It is inconvenient to drive all the way
there and deal with getting onto post and the crowds at the store, but
we can save over $100 in one trip so it’s worth it.
Key Statistics
•Total Spend: $390/mo.
•Age: 30-50 yrs.
•Income: $60-$100K
•Family Size: 2-4
•Education: college grad.
•Trip Frequency: 1+ x/wk
•Trip Driver: price/conv.
Source: MSIS, CCSS.
Otherwise we shop locally – it’s less stressful, quicker, and if you
study the flyers, collect coupons, and look on the stores’ websites you
can find good prices there too. As a result we end up spending more
than half our dollars locally.
The commissary is about saving money – good everyday prices, great
sales when you find them and coupons in the store. But it’s not very
close to home, takes a long time to get in/out, is crowded and
sometimes stresses me out. Has limited hours and I never know what
will be on sale so I can’t plan my trip very well.
Marketing To Our Retirees
Retired “Ron”
I retired from the military with 25 years of service so I take
advantage of great benefits like the commissary and other base
services like the exchange and cheap gas. We are both in our late
50’s and our kids are grown up and on their own. Neither of us
ever attended or finished college.
With our fixed income, we watch what we spend. We regularly
look at all the flyers, coupons we get in the mail, and on-line to
help us plan and save money. We are exceptionally proud of being
an ex-military family and love to visit the base. It’s a long trip so
we usually end up going only about once a month.
Key Statistics
•Total Spend: $358/mo.
•Age: >50 yrs.
•Income: $40-$90K
•Family Size: 2-3
•Education: college grad
•Trip Frequency: 1-2x/wk
•Trip Driver: price/pride
Source: MSIS, CCSS.
The main reason for the trip is stocking up on groceries at the
commissary – especially the great deals on meat, frozen foods, and
canned goods. We will often end up with two full carts and spend
over $300. We particularly enjoy the safe environment, premium
brands, coupons in the store, and the good selection. The only
challenges are that it is a long drive, takes a long time to get
through the store, and we don’t get any information about what is
on sale so it is hard to plan our trip.
For all our other shopping needs, which includes most of our
perishable foods, quick trips between visits to the commissary,
and to take advantage of sale items, we will go to the local grocery
stores or Wal-Mart.
Shopper Insights To Drive And
Bring Our Vision To Life
Shopper/Patron Segmentation
• Who, What, When, Where and Why
• Segmentation Model
• Go-to-Market Plan
Brand Development
• Brand Identity
• Brand Positioning
• Brand Marketing
Shopper/Patron Marketing
• Message (Brand, Benefit, Education)
• In-Home, On-Installation and In-Store
• Pre-Trip Planning
18
Current Initiatives To Improve
The Patrons’ Experience
• Loyalty card being developed – September rollout
• Patron Communication of Savings
– Store operations utilizing signage to communicate perimeter
savings – destination departments
• Produce Initiatives
– Establishing career path, reviewing both the USDA requirement
& physical inventory process
• Pre-order / Pre-pay Test for Guard & Reserve Sites
• Promotional package being streamlined to enable
efficiency at field level
19
Current Initiatives To Improve
The Patrons’ Experience
• Commissary of the future
– Perimeter focus – what should perimeter & center store look like
– Store flow, layout and adjacencies being reviewed
– Future planogram software will help enable store specifics
– SKU optimization continuous – increase in-stock availability
– Category indexing & contribution to total sales
• Speed to market on new items & approved planograms
in place is being emphasized
• Marketing plan is being developed to integrate initiatives
20
Complete
integrated
marketing plan
Deploy loyalty
card
Identify
additional
initiatives to
enhance the instore
experience &
layout
actionable plans
FY2013
Identify key
strategies &
tactics to
engage targeted
shopper
segments
Next 180 Days
Next 90 Days
What We Will Do Next…
Begin to
execute
strategies and
tactics to
engage targeted
shopper
segments and
enhancement of
the in-store
experience
21
22