shopper missions in f&g 2012

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Shopper Missions in the UK Food & Grocery Market 2012 SAMPLE EXTRACT

Evolution Insights Ltd Prospect House

32 Sovereign Street Leeds

LS1 4BJ Tel: 0113 389 1038

http://www.evolution-insights.com

Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies.

Further information is available at our website http://www.evolution-insights.com

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About Evolution Insights

2

As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight.

Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase.

We use a range of research methodologies to discover genuine insights. Our research incorporates a broad spectrum of robust qualitative and quantitative research techniques.

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Evolution offer a range of products & services for clients in the field of shopper research:-

Off-the-shelf research

Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery

Insight Plus

Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of publication, tailoring the scope to suit your needs

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As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further research requirements.

Contents


Contents

Kerry Foods - Shopper Missions Report Spring 2012 4

Report Summary 7 Main Shop 43 8 Introduction 44

Executive Summary 9 Shoppers’ Definition 45 Main Shop 10 Spend/Trips 46 Top-up Shop 11 Frequency 47 Meal For Tonight 12 Day of the Week 48 On The Go 13 Shopper pattern 49 Channels Overview 14 Channel Choice 50 Planning 15 Store Choice 51 Spend 17 Drivers of channel choice 52

Spend per Occasion 53 Methodology & Key 18 Summary 54 Methodologies 19 Key 20 Top-up Shop 55

Introduction 56 Shopper Missions: Framework 22 Shoppers’ Definition 57 Introduction to Shopper Missions 23 Shoppers Comments 58 Shopper Missions 24 Definition 59 Shopper Mission Definition 26 The Macro Environment 60 Path to Purchase 28 Trends From Abroad 61 The Shopper Context 30 Innovations 62 The Mission Context 31 Spend/Trips 64

Frequency 65 Shopper Missions - Overview 32 Day of the Week 66 Introduction 33 Purpose 67 Definition 34 Shopper pattern 68 Main Shop - Snapshot 35 Channel Choice 69 Top-up Shop - Snapshot 36 Store Choice 70 Meal for Tonight- Snapshot 37 Drivers of channel choice 71 Mission - Spend/Trips 38 Shopping Lists 72 Mission - Channel 39 Spend per Occasion 73 Mission - Life stage 41 Summary 74 Summary 42

Contents


Meal For Tonight 75 Online 107 Definition 76 Introduction 108 Shoppers Comments 77 Shopper Missions 109 Spend/Trips 78 Retailer 111 Frequency 79 Main Shop 112 Day of the Week 80 Top-up Shop 113 Shopper pattern 81 Mission profile index vs. all channels 114 Channel Choice 82 Summary 115 Drivers of channel choice 84 Spend per Occasion (Channel Average) 85 C-Store 116 Summary 86 Introduction 117

Main Shop 118 On-The-Go 87 Top-up Shop 120 Introduction 88 MFT 121 Definition 89 Mission profile index vs. all channels 122 The Market 91 Summary 123 Penetration 92 Eating Pattern 94 Frozen Food Stores 124 Weekly Profile 95 Introduction 125 Spend 96 Shopper Mission 126 Barriers to Purchase 97 Mission profile index vs. all channels 127 Channel share of most recent visit 99 Channel Rejections 128 Summary 99 Summary 129

Channel - Supermarket 100 Discount Stores 130 Introduction 101 Introduction 131 Main Shop 102 Shopper Mission 132 Top-up Shop 103 Mission profile index vs. all channels 133 MFT 104 Channel Rejections 134 Mission Profile Index 105 Summary 135 Summary 106

Contents


Planning 136 Introduction 137 Definition 138 Main Shop 139 Top-up Shop 140 MFT 141 Definition (2) 142 Meal Planning – Main shop 143 Meal Planning – Top-up 144 Pre-shop 145 Unplanned Items – Main Shop & OTG 146 Unplanned Items – Top-up 147 Shoppers Comments 148 Families 149 Future Meal Planning 150 Grouping meal ingredients in-store 152 Online 153 Summary 154

Spend 155 Introduction 156 Spend per Occasion (Channel Average) 157 Spend per Occasion (Supermarkets) 158 Spend per Occasion (Online) 159 Budgeting Online 160 Spend per Occasion (Multiple C-stores) 161 Spend per Occasion (Discounters & Frozen) 162 Summary 163

Methodology 164

Glossary

167

Report Summary

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This report takes an in-depth look at Shopper Missions in relation to the UK Food & Grocery industry. We will: Identify & define the different Shopper Missions Look at frequency, and shopper types identified with the missions Find which channels are related with which missions See how spend varies across missions Investigate the differences in planning of individual items, meals, and shops

Key (2)


You will also see the following images throughout the report:

Main Shop Meal For Tonight Replenishment of General Items

Specific Item/ Special Occasion

Introduction to Shopper Missions

In this section we will introduce our Shopper Mission definitions. These definitions will form the basis of this report and will be referenced throughout. By their nature missions are complex and numerous, but can be broadly categorised according to three key themes.

We will look at the role of missions within the whole Path to Purchase and where it fits within the decision hierarchy…

…and how the mission is affected by both the shopper context and the mission context.


It is not as effective to take a retrospective only look at what they ended up doing, therefore our research use methodologies to establish the original reasons for their trip, and what they intended to buy. In this was we could establish what they had bought that they hadn’t intended to…and why. *It is always important to note that missions are not necessarily exclusive, and can often be made up of a number of sub missions.

Shopper Missions (2)

Mission + Store influences = Shop Characteristics


Shopper Missions’ Definition’s (2)


Main Shop

Top-Up Shop

On-The-Go

Meal For Tonight

Specific Need/Occasion

Replenishment of staple items

A household’s main/largest shop, which is usually planned and covers a

variety of categories

A shopping trip with the express purpose of buying products for consumption the

same evening

Relates to a reactive quick trip to a store for items that

the consumer has run out of, desires, or for a specific occasion

A quick trip to replenish key commodity items that are perishable

in nature.

Buying any food and/or drink for consumption that day on-the-go, i.e. outside the home

ATL

Channel Category

Need State Brand Type

Category Channel

Mission

Path To Purchase (2)

Consumer Mind-set

Shopper Decision Hierarchy


Evolution’s Path to Purchase Model

• Lists often help focus the shopper on the task in hand, reducing their susceptibility to interruption and impulse purchases.

• Transport to and from the store can influence the shopper’s behaviour in-store. Shoppers who walk or take public transport may be more constrained than those with cars in terms of their capacity to carry goods.

• Occasion - While top-up missions are often quick focused trips, those for a specific occasion can be more open to marketing.

• Liquidity is often variable relating to time of week/month and payment of salary, and can influence the shopper’s mental budget on a given mission.

• Focus is the degree of specificity that the shopper has towards their mission, for example it may be a strict mission with little openness to interruption.

• Time constraints can often influence store choice and degree of focus for the mission.

• Location is the current position of the shopper, for example they may be on foot in the high street on a broader shopping trip, or they may be at home planning their top-up as a specific visit in the car.

• The consumer shopper relationship reflects that fact that the shopper and consumer are not always the same. The motivations and behaviour of the shopper vary accordingly.

The ‘mission context’ is Evolution’s model for relating the purpose of a particular shopping trip. Different combinations of the component drivers influence store choice and in-store behaviour on different missions.

Shopper Missions: The Mission Context


List

Transport

Occasion

Liquidity

Focus

Time constraints

Location

Consumer shopper

relationship

Drivers of the mission context:

Here we can see what proportion of the total number of shopping trips are covered by each mission, compared to their proportion share of the total spend.

Mission - Spend/Trips


10%

22%

54%

15%

40%

16%

36%

8% Shopping trips…

Spend…

I’d get distracted and come out with twice as much stuff

if I went somewhere else

Single, no family.

A weekly shop that lasts me for the week

Young couple, no children

I shop twice each week and I can do

two full trollies Older family

I do one every other week because there are only two of us at home.

I tend to top up a lot. No children

Because we’ve run out of so much stuff

Young family, multiple children

It’s my regular big shop, I’ve run out of a lot of

things, we need food for the weekend...

Older family

I always go either Friday nights or

Sundays, there’s only eggs left in the fridge!

Young family

I’m buying for the rest of the week and the weekend, I usually do today or

Friday – my days off. The reason I’ve changed and decided to come to Tesco instead of Sainsbury’s is my £5 off £50

voucher which came from clubcard Young family, multiple children

It’s pay day and I need to fill the

fridge, freezer and fruit bowl

Young family

My list had got long enough and I needed hair gel, however it’ll be a

reduced main shop because the boys are at the child minders all

week and we’re eating out a lot at the weekend

Young family, multiple children

I’ve just got back from a week’s holiday and have nothing fresh in!

Single, no family

Main Shop – Shoppers’ Definition

Shoppers have varying views to what a large/weekly shop actually means to them. Indeed, what could constitute a main shop to one person (using number of categories bought only) may only constitute a top-up to another. An individuals circumstance has a big impact on this definition.

When you get your cleaning shop, your

shampoos, the wine, the beer

No family

It’s when I go on my own, I never take the 4

year old Young family

It’s when I take my big recycled bags

Older family

It’s when I spend the most

Post-family


Top-up Shop - Shopping Lists


Demographic profiles of shoppers illustrate little variance in relation to use of a written shopping list. The exception to this is elderly shoppers aged 65-74 who, our research suggests, are the most likely to use a written shopping list.

Top-up missions are by their nature typically reactive to specific needs. This is reflected in the vast majority of top-up shoppers using either a written list or at least a good idea in mind before they enter the store.

*This refers to the items that drove the mission, i.e. the initial reason for their shopping trip. Whilst conducting this shop, other items are purchased which were unplanned. (We are not suggesting that 75% of items are planned)

OTG - Penetration (2)


Over 80% of adults in Great Britain aged 18-74 who did a top-up shop in the last two weeks bought fresh food.

Penetration of the different on-the-go shopper missions as a proportion of the UK population

With a growth in shopping on-the-go we examined the separate on-the-go missions to see where this growth is coming from. All four on-the-go missions are being undertaken more regularly than last year, with the most significant growth in the breakfast on-the-go market.

23.0

53.0

17.5

56.5

0

10

20

30

40

50

60

70

80

Breakfast Lunchtime Evening Snacking (foodand/or drink eaten

between meals)

%

• The on-the-go market has grown in all missions, driven by increased time and financial pressures, a faster pace of life and a general change in the work life balance.

• 23.0% of the people say that they shop for breakfast on-the-go at least once a week. This has increased by almost half (49.4%) of last years market.

• 53.0% of people shop for lunch on-the-go at least once a week, making it the second most popular on-the-go mission.

• 17.5% of people regularly shop for evening meals on-the-go at least once a week, making it the least common on-the-go mission.

• 56.5% of people buy snacks on-the-go in between meals. This market has also grown compared to last year, demonstrating an increase of 17.7% in snacking on-the-go, now making it the most popular on-the go mission.

49.4%

8.2%

8.2%

17.7%

• Here we can in essence measure the extent of store loyalty amongst shoppers. With barriers such as location removed when shopping online, it is interesting to see where shoppers shop online, compared to offline. Here we can see that Tesco shoppers are the most loyal with 82% choosing to also shop with them online. Sainsbury's fair the worst with less than half (47%) of their in store shoppers choosing them as their online retailer and a quarter choosing instead to shop online with Tesco.

• Perhaps of most interest is the destination of Morrisons shoppers who also shop online. With Morrisons are yet to launch their online offering, and half of their online shoppers using Tesco.com, we suggest that Morrisons may struggle to regain the loyalty of its shoppers whom have already established comfort and routine with a different online retailer.

Tesco’s have placed a lot of emphasis on their online propositions and in turn have become the most popular online retailer. Not only have they been successful in securing loyalty from their own supermarket shoppers, they have also attracted a significant share of shoppers from other retailers, most noticeably Morrisons’ shoppers.

Online - Retailer


Online grocery retailer used by multi-channel shoppers, by offline retailer

Tesco.com has been particularly successful at not only driving high levels of store loyalty among Tesco shoppers, but attracting significant proportions of other Big 4 shoppers through its universal appeal and leadership in online grocery.

82.1

19.4

24.9

50.4

3.8 5.1

47.3

12.6

6.3

70.0

7.1

21.0

3.5 1.8 7.7

5.0 0.5 0.5 1.8 0.8

2.5 1.8 8.3

5.9 1.0 0.9 1.8 4.2

0.3 0.5 1.2 0.0 0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Tesco Asda Sainsbury's Morrisons

%

Tesco.com Sainsburys.co.uk Asda.co.uk

Ocado.com Waitrose.com Amazon.co.uk Grocery

Planning – Definition (2)


Category – The category which the shopper plans to buy. This is the most basic information the shopper plans in advance.

Flavour – The flavour or type the shopper plans to buy.

Size – The size or quantity the shopper plans to buy.

Brand – The brand the shopper plans to buy within that category.

Example Cheese Cathedral City Mature White 200g

When we talk about shoppers planning to buy items, we need to think about the level of planning that takes place. There are four different levels, outlined below, that can be known for each item prior to the shop. The amount of information known tells us the level of planning that has gone into the item. The more planned the item is, the less likely the shopper is to stray.

The shopper can know any combination of these, with the item ranging from 25%-100% planned (if they know all levels of detail).

Methodology

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Secondary and desk research

Preliminary quantitative

survey

Main quantitative

survey Focus groups

Shopper Diary’s

Accompanied shops

Insights

• Evolution carried out a preliminary survey of around 100 shoppers to test questions for the main survey.

• Detailed secondary and desk research is conducted to define the topic area, macro drivers and trends, scope and examples within the research topic.

• Initial insights gained are used to help further design the main survey.

• A main survey is completed by at least 1,000 UK adults who are the primary household shopper for food & grocery.

• Focus groups are carried out to further enhance the secondary research and main quantitative survey.

• Accompanied shops were carried out with 20 shoppers in order to gain a better understanding of the difference between what the planning and the outcome of the shop.

• 20 shoppers kept a diary for the whole of March 2012, which detailed each shop conducted in that period. Set questions were asked which the shopper filled out both pre- and prior to the shop.

• Comprehensive and detailed assessment of all the data received was then used to uncover insights.

• Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources.

Methodology

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Evolution’s methodology

Methodology: Quantitative Research


Spend

Planning of meals

Level of planning of shop

Retailers used and Drivers of store choice

Frequency of Shopper Missions (Online & Offline) and days shopped

Demographic profiling

Main topics of questions in quantitative survey • Detailed shopper insights were gained from a survey of 1,033 primary shoppers. The samples were fully representative of the UK population.

• The survey contained questions relating to topics outlined to the left – in addition to standard demographic profiling questions

• The questions were designed to give maximum insight into shopper’s motivation and behaviour

• Additional questions were asked to give further insights into general behaviour and attitudes into price comparisons.

• The survey was carried out during Spring 2012.

Glossary


Glossary


ABC1C2DE – Socio demographic profile using job type (if applicable).

Above the line (ATL) – Advertising using the main 5 media types of television, press, radio, cinema, and posters to promote brands.

App – A smartphone application

Approach – the way a shopper typically builds their online shopping basket

BBE date – Best before end date

Below the line (BTL) – Advertising using non-media communication. Typically sales promotions as short-term incentives, largely aimed at consumers in-store.

Big Four – The largest four grocer retailers in the UK by market share.

Budget - An estimate of income and expenditure for a set period of time

Cashback – money shoppers can claim back.

Category driver – key influences driving the growth of any given category

Channel – Retail distribution type for example supermarket, c-store, CTN

Circumstances – The circumstances of the shopper when and where they undertake their shop

Demographic – Characteristics of the population (including sex, race, age and income).

Digital media – digital marketing medium for example social media, mobile, digital signage.

Digital shopper marketing – Shopper marketing that utilises digital media

Disposable income – income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

DSM – Digital shopper marketing

E-commerce - buying and selling of products or services over electronic systems such as the Internet and other computer networks

Economic climate - the general condition of the economy in a particular country or in the world

e-retailer/e-tailer – a retailer which trades online.

Favourites – a feature of some online food and grocery retailers that allows shopper to access a list of products they have bought in the past, most often or most recently.

FMCG – Fast moving consumer goods, often used to refer to a manufacturer.

Food and grocery - Foodstuffs and various household supplies

Food Standards Authority’s traffic light system – a colour coded system to show the levels of fat, saturated fat, sugars and salt in food products.

Impulse – A sudden wish or urge that prompts an unplanned act or feeling

Index - A statistical measure of change compared to an average.

Journey - the path of the shopper through the website.

Main Shop - Main household shops, usually planned covering most categories.

MFT – Meal for Tonight

M-commerce - buying and selling of products or services over mobile electronic systems such as the smartphones

Mental budget - An often subconscious budget most shoppers possess before and during a shopping trip, which influences overall and individual item spend.

Microsite – Internet website dedicated to a particular brand, using a different (branded) URL

Modality – The way a shopper behaves in-store.

OTG – On the GO (mission type)

Primary shopper – the main shopper in a household.

Promotion – Discounts and offers

Retail driver - key influences driving a shoppers choice of retailer

Shopper context – Evolution’s model for determining the profile of an individual shopper.

Shopper marketing – Any marketing activity aimed at the shopper throughout their path to purchase.

Shopper mission – the reason/purpose of the shopping trip from the shopper’s perspective.

Smartphone – An internet enabled mobile phone device that runs applications (‘apps’).

Socio-demographic - Characteristics of the population (including sex, race, age and income).

Stock up mission - Planned, infrequent and typically high volume. Typically once a month

Technologically savvy – someone who is up-to-date with and uses technology regularly.

Top-up - A shopping mission to buy food and grocery for the home in between the main household shop. It excludes food and drink on the go, newsagent products and takeaways

Contact us

Evolution Insights Ltd

Prospect House 32 Sovereign Street

Leeds LS1 4BJ

Telephone: 0113 336 6000

e-mail: [email protected]

Web: http://www.evolution-insights.com

Company No. 07006001

Country of Incorporation: United Kingdom

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shopper missions in f&g 2012

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