Collection Edition: BEER LEAFLETS

VOCABULARY

•Promo Pressure: index of promo visibility for a retailer, a category a brand or a format. This index can be counted by quantity of leaflets or quantity of promotions inside the leaflets. •Share of Voice: index of promo visibility for a retailer, a category a brand or a format in relative value versus competitors. The Share of Voice index of Hipercom shows the promo activity of the Retailers in the most exhaustive way, taking into consideration the quantity of promotional operations, SKU’s or SNU in

Promo, the commercial space (in m2) when the promotion was valid and the QUANTITY of days of the validity days of that specific promotion.

•Shopper Need Unit (SNU): One or more SKU from the same family, being on the same promotion (many flavors for juice, many colors for shampoo, many sizes for textile) •Consumer advantages: All additional trade mechanisms supporting the promo price and mentioned on the promo leaflet.

•Promo Price: Price on the leaflet (should be different from the shelf price) •Virtual Price: Promo price – (minus) all consumers advantages •Percentage Point (pp) = the unit for the arithmetic difference of two percentages.

SOVRETAILER A = 𝑃𝑟𝑜𝑚𝑜 ∗ 𝑀2 𝑤ℎ𝑒𝑟𝑒 𝑃𝑟𝑜𝑚𝑜 𝑖𝑠 𝑣𝑎𝑙𝑖𝑑𝑅𝑒𝑡𝑎𝑖𝑙𝑒𝑟 𝐴

𝑃𝑟𝑜𝑚𝑜 ∗ 𝑀2 𝑤ℎ𝑒𝑟𝑒 𝑃𝑟𝑜𝑚𝑜 𝑖𝑠 𝑣𝑎𝑙𝑖𝑑𝐴𝑙𝑙 𝑅𝑒𝑡𝑎𝑖𝑙𝑒𝑟𝑠

3

• The interpretation shows that this 2 KPI’s are somehow connected. Because the Evolution of PP as a incidence

on the ∆ SOV.

• They can be displayed on a 2D map with the following conditions

–x= Evolution vs. Y-1 (%) = Promo Pressure

–y= Evolution vs. Y-1 (pp) = ∆ SOV

–Bubble Size= SOV (%)

• The target is to models an evaluation of the player’s strategy.

• Each player belongs to a quadrant of the map. Each quadrant is relevant for a specific case.

x<0 -> less promotions. Cost oriented

policy.

y>0 -> a better relative position versus

other players.

Definitely a very clever strategy

x<0 -> less promotions, Cost oriented

policy.

y<0 -> a worst relative position versus

other players .

Regression. Good strategy only for

leaders, dangerous game for small

players

x>0 -> more promotions. Aggressive

investment policy.

y>0 -> a better relative position versus

other players.

Strategy of players in expansion

x>0 -> more promotions. Investment

policy.

y< 0 -> a worst relative position versus

other players

Strategy of giddy players in expansion

Impact on business:

“Offensive” should have a growth of leaflet promotional Turn Over, Y versus Y-1.

“Winner” should observe a growth of leaflet promotional share of voice.

If this is not the case, it is a Pyrrhic Victory: the leaflet promotion is not efficient.

VOCABULARY

x=0 & y=0 -> The same strategy as

previous year

4

CONTENT

Channels : Cash&Carry, Hypermarket, Supermarket, Hard Discount

Categories : Food-Non Food

Distribution : National leaflets

Indicator : SNU (Shopper Need Unit), M²*qty of SNU

Thematic : BEER

Period : Apr-Sept 2014 vs Apr-Sept 2013

CONTENT

1. ALL CATEGORIES SUMMARY

1.1. PROMO PRESSURE & SOV – RETAILERS

1.2. INDICATOR OF EXPENSIVENESS – RETAILERS

2. PROMO PRESSURE & SOV – BEVERAGES

3. BEER CATEGORY

3.1. PROMO PRESSURE & SOV – RETAILERS

3.2. INDICATOR OF EXPENSIVENESS - RETAILERS

3.3. PROMO PRESSURE & SOV – PRODUCERS

3.4. INDICATOR OF EXPENSIVENESS - PRODUCERS

3.5. PROMO PRESSURE & SOV – BRANDS

3.6. INDICATOR OF EXPENSIVENESS – BRANDS

3.7. SOV PRODUCERS INSIDE RETAILERS

3.8. PROMO PRESSURE & SOV – PRODUCERS INSIDE RETAILERS

3.9. INDICATOR OF EXPENSIVENESS – PRODUCERS INSIDE RETAILERS

3.10. CONSUMER ADVANTAGES

3.11. RETAILERS SUMMARY

3.12. TOP PRODUCT BY RETAILER

3.13. OPERATIONAL TRADE

SOV CATEGORIES (M²*qty of SNU)

Validity

Date:

30.04-13.05.2014

03.09-16.09.2014

17.09-30.09.2014

20.08-02.09.2014

09.07-22.07.2014

Qty of

SNU 643 628 599 591 572

Qty of

pages 72 64 64 64 64

Number

of days 14 16 14 14 14

PROCTER & GAMBLE 2002

UNILEVER 1755

HENKEL 996

NESTLE 948

COCA-COLA 694

MONDELEZ 586

HEINEKEN 575

Private Label 9528

+3,6%

-1,1pp

+1,1pp

0 pp

Apr-Sept 2014 vs. Apr-Sept 2013

TOP 5 catalogues 2014 (qty of SNU) TOP BRANDS (qty of SNU)

SOV RETAILERS (M²*qty of SNU) SOV PRODUCERS (M²*qty of SNU) SOV TYPE OF BRANDS (M²*qty of SNU)

Promo Pressure 2014 vs 2013

(M²*qty of SNU)

ALL

CATEGORIES

+0,9 pp

+2,3 pp -1,4 pp

-1,8 pp

8 *Percentage Point (pp) = the unit for the arithmetic difference of two percentages.

BEVERAGES

Legend*:

x= Evolution vs. Y-1 (%) = Promo Pressure

y= Evolution vs. Y-1 (pp) = ∆ SOV

Bubble Size= SOV (%)

*Indicator: M²*qty of SNU

*100% all beverages categories.

CATEGORIESEvol. Vs LY

(%)

Evol. Vs

LY (pp)

SOV

2014

(%)

AFB 7,7% -0,4 29,0%

WATER 4,6% -0,5 11,9%

BEER 27,1% 3,6 25,8%

WINES -0,3% -1,8 18,8%

SPARKLING 12,7% 0,1 1,9%

SPIRITS 2,2% -0,9 12,6%

Taking a look at the BEVERAGES category, it is easy to see that the retailers have focused on beer, giving less space to the other beverages categories.

10

BEVERAGES

Apr-Sept 2014 vs. Apr-Sept 2013

*Percentage Point (pp) = the unit for the arithmetic difference of two percentages.

BEER

Carrefour Market had an investment strategy and increased the quantity of promoted beer with 250,6%.

Apr-Sept 2014 vs. Apr-Sept 2013

Legend*:

x= Evolution vs. Y-1 (%) = Promo Pressure

y= Evolution vs. Y-1 (pp) = ∆ SOV

Bubble Size= SOV (%)

*Indicator: M²*qty of SNU

BEER

RETAILERSEvol. Vs LY

(%)

Evol. Vs

LY (pp)

SOV

2014

(%)

KAUFLAND 67,9% 6,3 25,7%

METRO 36,5% 1,2 18,1%

SELGROS 26,5% -0,1 15,8%

CARREFOUR 30,8% 0,3 11,6%

CORA 89,8% 2,6 7,9%

PENNY MARKET 32,3% 0,3 6,5%

LIDL 57,3% 0,8 3,9%

BILLA 25,9% 0,0 3,4%

MEGA IMAGE -27,2% -2,0 2,7%

CARREFOUR MARKET 250,6% 0,9 1,4%

PROFI 19,9% -0,1 1,4%

XXL MEGA DISCOUNT 57,9% 0,3 1,3%

REAL -96,7% -10,0 0,3%

REAL-AUCHAN -100,0% -0,4 0,0%

12

*Percentage Point (pp) = the unit for the arithmetic difference of two percentages.

BEER

In Carrefour Market almost all producers have adopted an investment strategy and increased the promoted beer articles compared to the previous year.

Apr-Sept 2014 vs. Apr-Sept 2013

Legend*:

x= Evolution vs. Y-1 (%) = Promo Pressure

y= Evolution vs. Y-1 (pp) = ∆ SOV

Bubble Size= SOV (%)

*Indicator: M²*qty of SNU

BEER

PRODUCERSEvol. Vs LY

(%)

Evol. Vs LY

(pp)

SOV 2014

(%)

HEINEKEN 186,3% -8,2 36,7%

URSUS 807,3% 16,4 26,7%

STARBEV 182,4% -5,4 22,2%

URBB 583,6% 3,3 6,7%

ROMAQUA 12,4% -7,0 3,3%

PROCER 0,0% 1,1 1,1%

Private Label 13,3% -2,3 1,1%

14

*Percentage Point (pp) = the unit for the arithmetic difference of two percentages.

BEER

PRODUCERSVirtual

PriceSaving %

SOV 2014

(%)

URSUS 2,6 0,0% 13,9%

STARBEV 3,2 0,0% 12,4%

URBB 3,4 0,0% 9,7%

BAVAROM 4,5 0,0% 8,3%

THAI BEVERAGE 3,0 0,0% 2,8%

GUANGZHOU 0,0 0,0% 0,0%

Private Label 10,1 5,2% 37,5%

The Private Label had the biggest Virtual Price and the biggest savings.

0,9%

Average

saving

4,5 Average

Virtual Price

Apr-Sept 2014

BEER

16

Legend:

x = Average Virtual Price

y = Average Saving (%)

Bubble size : SOV (%) *

*Indicator: M²*qty of SNU

16 5

14 7

12 3

11 5

9 2

7 3

7 -1

6 3

5 -2

1 0

Brand Qty of

SNU Evolution

vs Y-1

TOP BRANDS(qty of SNU) PROMO MECHANISMS

Products with Consumer advantages

66,2%

0%

-8,0 pp

Private Label

Products with consumer benefits :

Evolution vs Y-1 (%) :

Evolution vs Y-1 (pp) :

9,8 pp

0 pp

9,8 pp

0,8 pp

0,8 pp

0 pp

-17,5 pp

-18,2 pp

0 pp

0 pp

0 pp

0 pp

-0,2 pp

-1,2 pp

0 pp

-0,9 pp

0 pp

-0,4 pp

8 pp

BEER

Apr-Sept 2014 vs. Apr-Sept 2013

Average

Saving

8,7 % (-5,0 pp)

Average

Virtual Price

6,5 LEI (+1,5 LEI)

18 *Percentage Point (pp) = the unit for the arithmetic difference of two percentages.

For the full report, please contact us:

Florentina Vasile Leaflet Monitor Director

florentina.vasile@hiper-com.com

+40 (0) 743 216 282

Gabriela Gliga

Senior Analyst

gabriela.gliga@hiper-com.com

+40 (0) 728 938 569

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