Europe’s Fastest Growing Online Market Research Agency

• Established in 1999

• 150+ Research professionals

• 200+ Leading clients

• Projects in more than 50 countries worldwide

• Offices in Hamburg, Rotterdam, London, Madrid, Paris and New York

• European panel of 850.000 consumers and global access (GER: 130.000)

SHOPPER

As Close as Being There

We believe that the key to successful shopper research:replicating reality as closely as possible, in conjunction with‘being there, capturing the moment’

Scan product

Online shelves:•Zoom in / zoom out•Pick up / place back•3D rotation•Shopping cart functionality•Feature cards•With / without pricing

At home online surveys

My Tasks

Buy Shampoo

Preparing dinner?Maak een foto of een serie foto’s van de bereiding van uw dagelijkse hoofdmaaltijdTrack Heineken!Maak gedurende 1 dag foto’s van alles waar u Heineken tegenkomt.Buy a shampoo?Maak een foto of een serie foto’s het kopen van shampoo. U kunt ook een toelichting toevoegen

Clothing trendsMaak een foto of een serie foto’’s van alle dingen waar u trots op bent

Real-time ReportingiPhone/Android app

Shopper- Benefits

• Customised SHOPPER provides a Category Manager solution tailored and customised around your needs

• Fully Evaluative Offering a well-rounded perspective with evaluative and diagnostic qualitative and quantitative feedback

• Latest Techniques Including a suite of state-of-the-art online techniques, visually appealing and motivating with normative database and in-house design expertise

• Delivers the base for Growth Provides a solid foundation for improving Product and Category performance at the place of purchase

• Proven Methodology Chosen by numerous key FMCG’s around the world

PACT©

SHOPPER

Offering solutions for a broad range of Category Manager questions

SHOPPER© 7

MetrixLab’s SHOPPER SUITE©

Shopper segmentation

Orientation & SDT

Assortment & Range

optimization

Packaging, POS & Pricing

What different types of shoppers can be

distinguished in my category and what does that mean for

me?

What is the shopper decision process and what does that mean for the optimal shelf

configuration?

How can I optimize my assortment or range to maximize reach &

profit?

What is the effect of a new packaging, POS

material or price changes/promotions

on my performance at the point of purchase?

• Orientation Process

mapping

• Unveil (unconscious)

shopper decision tree

(SDT) by out of stock

simulation

• Evaluation of

alternative shelf

configurations

• TURF or conjoint

exercise

• Optimize assortment

to fulfill needs of

different segments

• Optimize

assortment/range to

maximize reach

• Holistic methodology

for pack testing: shelf

impact,

communication &

business impact

• Market simulation

models based on

conjoint methodology

• Segmentation based

on main purchase

criteria

• Segmentation based

on shopping attitudes

or behavior

• From consumer to

shopper

SHOPPER© 8

Shopper orientation & Shopper Decision Tree information is used to demonstrate category leadership and optimize shelf configuration

Orientation & SDT

What is the shopper decision process and what does that mean for the optimal shelf

configuration?

• Orientation Process

mapping

• Unveil (unconscious)

shopper decision tree

(SDT) by out of stock

simulation

• Evaluation of

alternative shelf

configurations

Shopper Orientation & SDT

is about understanding the path to purchase:- Level of planning- Type of planning- Orientation activities- Store choice drivers- In-store influencers

Shopper Decision Tree: selecting the product when in front of the shelf (or online store)

Information is used to optimize trade marketing plans, demonstrate category leadership and optimize the shelf

Mapping the path to purchase

Using ‘drag&drop’ we let recent shoppers select those activities that occurred during their path to purchase, and the order in which they occurred. Next, we let them indicate how instrumental they were in making a decision.

Planned purchase (60%) Impulse Buy (40%)

What triggered the purchase?

Seeing the product in the store

Promotion

Seeing other people own/use it

Hearing/reading about it

Seeing an online ad

Specific functional need

Old one broke

What sort of planning activities / where?

At home Store selection

In-store

Online price check

spec check

Recommendations

Info gathering store visits

Offer

Prices

Distance

Quality / staff

Reliability

In-front of shelf decision making best replicated through CDT

exercise

Shelf cards

Pack info

Staff recommendation

10

Shopper Decision Tree – understanding the decision making process in front of the shelf

• The objective is to understand what happens in the mind of consumers when in front of the shelf, buying a product. It is about understanding the trade-offs that consumers make – and understanding which type of decision criteria (product characteristics) are most relevant in making a final choice

• The SDT (Shopper Decision Tree) analysis derives the importance of product characteristics when making a purchase. Stated importance measures are at risk of over-rationalization

• The information is mostly applied to the shelf organization (planogram) with an eye on maximizing ease of shopping, up-selling and trial behavior

11

The SDT is derived through an out-of-stock exercise

• The SDT is derived through an Out-Of-Stock exercise. This is a 2-step iterative process

1. Shoppers are asked to explore the shelf and select the products that they have actually purchased in the last week / on last shopping trip.

2. For each product that they purchased, they are confronted with an imaginary out-of-stock situation. They are asked which product from the shelf they would have purchased instead. This step is repeated up-to 5 times and ends when they would no longer buy or go to a different store

12

Resp.1

Resp.1

Resp.1

Resp.2

Resp.3

Initialchoice

1streplacement

2ndreplacement

3rdreplacement

4threplacement

5threplacement

XX

XX

Resp.3 X

The trade-offs that shoppers make reflect the importance of specific product characteristics. The level of loyalty to these underlying dimensions is indicative of their importance

13

SDT output example• In this example for cheese, we see that consumers are primarily driven by the origin

of the cheese and intended usage application, when buying cheese. These should be the two main dimensions for organizing the shelf

Attribute Explanation Rank # Importance%

Origin Domestic cheese; Foreign cheese 1 95%

Application On bread; In a meal; In-between snack 2 89%

VariantSliced cheese; Block cheese;

Spreadable; Cubes 3 63%

Brand type A-brand; Private Label, Fancy Label 4 61%

Absolute priceHigh (> €5); Medium (€2,50-5,00);

Low (< €2,50) 5 58%

Pack typeFoil Wrap; Hard Case; Plastic Cup;

Alu Foil 6 57%

Relative priceHigh (> €15/kg); Medium (€10-15/kg);

Low (< €10/kg) 7 30%

Age/Flavor Aged; Ripe; Young; Grass; Soft; Fresh; With herbs; Raw Milk 8 25%

Specific brandPresident; Arla; Philadelphia;

La Vache; 9 21%

14

SDT: output applied to optimization of shelf lay-out

1. Origin

Meal preparation and topping

2.

Ap

plicati

on

PL

A-B

ran

d

On bread In-between snack

Domestic Foreign

Raw

Mil

k

Soft

Ch

eese

Sp

read

ab

leBlock Sliced

Online Shelf Buy Test for business case development• The objective of the Online Shelf Buy Test is to build a business case for a specific shelf lay-out by

quantifying the projected revenue.

• It allows retailers and manufacturers to quickly and efficiently test the impact of alternative shelf lay-

outs, category compositions, pack sizes and POS-materials.

• Respondents are asked to shop the shelf as they normally would, imaging it is the newly organized

shelf in the store where they normally shop.

• The solution is scalable, allowing for revenue projections of multiple alternative shelves.

SHOPPER© 16

Assortment and range build-up optimization can have a significant direct impact on efficiency

Assortment/ Range

optimization

How can I optimize my assortment or range to maximize reach &

profit?

• TURF or conjoint

exercise

• Optimize assortment

to fulfill needs of

different segments

• Optimize

assortment/range to

maximize reach

Assortment / Range Optimization

Is about determining the optimum size and composition of a range at category or brand level

Appropriate tools include:- Value Perception Test - Out-of-stock Game- MaxDiff- Shelf Buy Test

SHOPPER© 17

Range build-up perceptions often demonstrate poor understanding of how ranges are actually built-up

Lowest price Highest price

78%

75%

72%

65%

56%

44%

Ideal Store

Specialty Shop

Farmer’s Market

SupermarketSelf-serve

SupermarketDeli

SupermarketFresh-chilled

Lowest quality Highest quality

• Drag & drop question type is used to map product ranges or stores on a price/value line or a quality

line.

Range Optimization questions invariably zoom in on questions around perceived differentiation and added reach/frequency

• Range Composition at the category and brand level questions are very relevant – as they can have a

significant impact on cost of operations and missed opportunities

• Tools include TURF, Out-of-Stock and MaxDiff

• Key measures are additional reach, frequency/variance and differentiation

SHOPPER© 19

Shopper Marketing Mix Optimization can have a significant direct impact on sales

Packaging, POS & Pricing

What is the effect of a new packaging, POS

material or price changes/promotions

on my performance at the point of purchase?

• Holistic methodology

for pack testing: shelf

impact,

communication &

business impact

• Market simulation

models based on

conjoint methodology

-Shopper Marketing Mix Optimization

Optimization of packaging and pricing can be among the most effective instruments for improving margins and contributing to the bottom line

Appropriate tools include:- PACT Design Test- CBC Choice Based Conjoint- POS Materials evaluation

20

Our pack design testing solution is seen as best-in-class by many designers because it very actionable

Search Evaluate Decide Consider

Stopping Power shelf test

Brand & ProductIdentification Test

Focus TrackerDesign Hierarchy Test

Category Purchase Drivers

Brand Values Product Benefits

Find-Time shelf test

First Impression(KPI)

Overall Pack Appeal(KPI)

Purchase Intent(KPI)

Dot Techniquedesign likes/dislikes

Preference from the shelf

OR

The Focus Tracker technique can be applied to understand how consumers scan the shelf – helpful when testing alternative lay-outs or POS materials

PACT© 22

36% 11% 44% 38% 45% 35%=picked up..%

65%

48%

60%

57% Display A

Display B

Ring C

Label D

Base case: no POS

POS material can have a significant impact on stopping power (measured in % picked up from shelf)

Without any POS material 44% of people

buy this blenderThis increases as

follows with various different placements of

POS material: in, and around.

A. Behind product 1.

B. Behind product 2.

C. Inside product

D. Attached to handle

Choice Based Conjoint - used for ‘what-if’ scenario analysis for price and promo optimization

• Repetitive choice exercise in which respondents trade-off products, prices and promotions. The output feeds into a

market simulator which is used to project the impact of price and promo changes.

End Slide

New Product Development & Innovation

UK Contact :

Chris Kingsland

+ 44 (0) 20 3178 6277 Direct+ 44 (0) 7958 332 764 MobileC.kingsland@metrixlab.com