shoppers' research jaipuria 1

8/3/2019 Shoppers' Research Jaipuria 1

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Understanding

shoppers¶

behavior«

Shopper Research



AGENDA

WHAT IS SHOPPER RESEARCH?

WHY DO WE NEED TO STUDY SHOPPERs ?

DECOMPOSING SHOPPERS¶ DECISION MAKING

CASE OF ³HAND AND BODY LOTION´ HOW WE CONDUCT SHOPPER STUDY?



Each decision is framed in its own way.

Where do I

choose to shop?

Where do I

choose to shop?

What prompts my desire or

need to shop?

What prompts my desire or

need to shop?

Honey, we¶re out of

cereal...

They sell natural and

organic foods there and

the check out lines aren¶t

long

But which store?

Don¶t buy the one we got

last time...i want a healthier

one.

3



And now I¶ve chosen which

store.....

How do I react tothe environment

within?

The aisles are

well marked. At

least I can find

the cereal aisleeasily and be in

and out!

4



F inally....F inally.... I¶m in the aisle. How do I make my choices? I¶m in the aisle. How do I make my choices?

I¶ve got 5

minutes before

I¶m due to pick up the kids...

Whole grain?

Organic? We

haven¶t tried this

before...its good

they have a small

pack, let me get it

Buy

me!

Buy me!

Buy

me!

Buy

me!

Buy

me!

Buy

me!

5



The shopping process takes

the consumer through

several decision stages.

The shopping process takes

the consumer through

several decision stages.

Do these work in synergy for your

category and brand?

If I buy the cereal, I

get Rs. 12 off on the

Biscuits. I¶ll get

those as well.

Biscuits purchased

on impulse

planned cereal

purchase : brandleaped off the shelves and induced switching

Despite doing Pre-launch research,

spending so much in Advertising,

Channel commission «

Why my Brand is NOT taking off

???

6



Understanding how

one¶s target consumers

behave as shoppers in

different channelsand formats, and

leveraging this

intelligence to the

benefit of all

stakeholders, defined asbrands, consumers,

retailers and shoppers

What is Shopper Research?

7



More than 70% of purchasing

decisions are made in-storeDifferent modes of shopping and each

has a subtly different set of

requirements in-store

Most shopping is significantly

influenced by habits, conditioning andculture

Without any emotional influence, the

working memory discards and forgets

information in less than 18 seconds

Shoppers use multi-sensory cues with

which to evaluate and select or rejectproducts

Shopper are increasingly in auto-pilot

/grab µn¶ go mode

WHY TO STUDY SHOPPER ?

8



Shoppers don¶t waste huge amounts of energy on everyday shopping decisionsThey use Heuristics to make quick

decisions

As people spend more time in the store,

they become more purposeful, less likely

to explore, and more likely to grab their familiar products.

After getting "virtue" categories

(essentials), shoppers are more likely to

head over to locations that carry "vice"

categories (indulgences)

Difference in Behavior when shoppingalone than when shopping in groups.

They Bundle Products[ BEER & DI APER ]

HOW DO SHOPPERS¶ BEHAVE?



key to reaching shopper s lies in under standingthat the auto-pilot mode does get disrupted

«by external stimuli

Shopper s move into theexperimental mode ³your window of opportunity´´



Lets StartDIAGNOSIS



DECOMPOSING SHOPPERS¶

DECISION MAKING

Source : Nielsen



HOW DOES ITHELP A

MANAGER ?

A CASE OFHAND & BODY

LOTIONCATEGORY



leverageunseen channel potential

decode

shopping

modality

uncover

channelsynergy

uncover

brandsynergy

unlockunrealized brand opportunities

discover specific category dynamics (compared to cross category norms)

unique shopper mode segmentswhat¶s hot and what¶s not?



decode

categoryshopping

modality



Where does your category map on theInvolvement-Experimentation grid?

Involvement : How involvedare the consumer s in brandchoice evaluation?

Experimentalism : Do theyshop on grab & go auto-pilotmode or do they experimentwith different brands andengage in scrutiny shopping?

super

traction

super

slippery

slippery

high

traction

EXPERIMENTATION

I N V O

L V E M E N T

Source : Nielsen



Deodorant

Liquid Hand Soap

Razor s and Blades for Men

Bar Soap

Razor s and Blades for

Women

Body Wash

Toothpaste

ToothbrushShampoos and

Conditioner s

Hand and Body Lotion

12.0

17.0

22.0

27.0

32.0

10 15 20 25 30 35 40

Category Typology : Involvement vs.Experimentation

high traction super slippery

slipperysuper traction

EXPERIMENTATION

I N V O L V E M E N T

Source : Nielsen

Hand & Body Lotion isa super slippery

category ± must keep

shoppers engaged or

they can defect to

other brands or stores



What are the strategic implications?

EXPERIMENTATION

I N V O L V E M E N T

Challenging to displace brand

leaders. If you are the leader, avoid

radical brand repositioning which

may disrupt auto-pilot mode.

Weaker competitors can make lots

of noise but it will fall on deaf ears.

hightraction

super

traction

super slippery

slippery

While they don¶t care much about

the category, they experiment.

Price and promos can easily tip

them over.

Don¶t cut back on ad spend even if

share trends are stable. If your

consumers defect, it is an uphill

battle to win them back.

Constantly keep consumers

engaged to ward off threat with

advertising, buzz, new

introductions, packaging and

exciting promos

Source : Nielsen



Hand &BodyLotion

Impulse purchase ( decision to buy category taken in the store) : 27%

activation

If shopper s are engaged, opportunityfor incremental sales

Buzz Index 204( indexed to personal care categories)

New Product Activation :

High Impact

Promotion Activation :

High Impact

impulse

In-store

Hand &

Body

Lotion

Vs

norm

Checked prices 27

Promotion 14On special promotion 13Special display 3

Pack-induced browsing 22

Browsed through several 19Read pack/ingredients 18

Attractive pack 5 Pack stood out 4

New brand/variant 10

Signage/poster 2

Out of stock 1

Pre-store

Habitual ± same as usual 37

Recently advertised 6Used coupon 13

Spouse¶s preference 6

Kids¶ preference 2

Friend/rel recommendation 3

purchase trigger s

DiagnosisShoppers of hand & body lotion

are more impulsive, leaving

manufacturers and retailers with

a chance to increase sales.

This opportunity is dependent

upon the level of shopper engagement with the product and

purchase activation«

DiagnosisShoppers of hand & body lotion

are more impulsive, leaving

manufacturers and retailers with

a chance to increase sales.

This opportunity is dependent

upon the level of shopper engagement with the product and

purchase activation«

Source : Nielsen



Hand &BodyLotion


activation



High Impact


High Impact

impulse

In-store

Hand &

Body

Lotion

Vs

norm

Checked prices 27






Signage/poster 2

Out of stock 1

Pre-store




Kids¶ preference 2


purchase trigger s

DiagnosisDue to consumers high

involvement with the category,

they are highly tuned-into the

category and are very much

aware of new products/ variants

and promotions that are

introduced.By manipulating these factors-

with new, innovative

introductions and/ or attractive

promotions- manufacturers and

retailers can achieve increased

sales as shoppers will continue

to be engaged with the category.

DiagnosisDue to consumers high

involvement with the category,

they are highly tuned-into the

category and are very much

aware of new products/ variants

and promotions that are

introduced.By manipulating these factors-

with new, innovative

introductions and/ or attractive

promotions- manufacturers and

retailers can achieve increased

sales as shoppers will continue

to be engaged with the category.

Source : Nielsen



Hand &BodyLotion


activation


Buzz Index 204( indexed to personal care categories)


High Impact


High Impact

impulse

In-store

Hand &

Body

Lotion

Checked prices 27






Signage/poster 2

Out of stock 1

Pre-store




Kids¶ preference 2


purchase trigger s

Diagnosis

The key to triggering

purchases of hand & body

lotion lies in grabbing

consumers¶ attention.

Attention is focused most

heavily on reading packs andconsidering ingredients, so

we must clearly associate the

brand with consumers¶

desired product attributes.

The regular introduction of

new brands/ variants, willgenerate buzz and interest

among consumers, and thus

fuel increased purchases.

Diagnosis

The key to triggering

purchases of hand & body

lotion lies in grabbing

consumers¶ attention.

Attention is focused most

heavily on reading packs andconsidering ingredients, so

we must clearly associate the

brand with consumers¶

desired product attributes.

The regular introduction of

new brands/ variants, willgenerate buzz and interest

among consumers, and thus

fuel increased purchases.

Source : Nielsen



Bar Soap

Body Wash

Deodorant


Liquid Hand Soap

Razor s and Blades

(NET)

Toothbrush

Toothpaste

Shampoos and

Conditioner s

15

20

25

6 11 16

Promotional Activation

PROMOTIONALACTIVITY (% sales on promotion)

high impact

low impact

P R O M

O T I O N A L A C T I V A T E D C H O I C E

Promos do engage shoppers

and activate purchase

Source : Nielsen



Bar Soap

Body Wash

Deodorant


Razor s and Blades

(NET)

Toothbrush

Toothpaste

Shampoos and

Conditioner s

15

20

25

30

35

40

45

50

55

15 20 25 30

New Introduction Activation

high impact

low impact

C O N S U M E R P E R C E P T I O N O F

C A T E G O R Y I N N O V A T I O N / C H A N G E

CATEGORY CARDIO(% new skus introduced in past 2 years

LiquidHand Soap

Note: Outlier

New introductions catch

attention in the category

Source : Nielsen



INSIGHTSHand &BodyLotion

The highly involved and experimental nature of shopper s makes it aprecarious category that requires much attention on the part of manufacturer s to keep consumer s¶ engaged.

Shopper interest and purchase is peaked by new introductions,

promotions, outside recommendations (buzz) and strong pack designs.

Each of these mar keting activities should support a strong productpositioning that clearly identifies key, desirable product attributes,which, in turn, will encourage shopper engagement with the category

and lead to incremental sales opportunities.



decode

shoppingmode

segments



Shopping mode segments

Uninvolved

Auto-pilots

Uninvolved

Auto-pilots

23%

Deal SeekersDeal Seekers

TrendsettersTrendsetters

Engaged

Browsers

Engaged

Browsers

Discerning

Auto-pilots

Discerning

Auto-pilots

27%22%

17%

11%

Source : Nielsen



Shopper engagement

Low involvement

No

Low impulse

High involvement

Somewhat

Low impulse

Med-Highinvolvement

A lot

High Impulse

Med involvement

Somewhat

Med Impulse

High involvement

A whole lot

High Impulse

uninvolved auto-

pilots (23%)

uninvolved auto-

pilots (23%)

discerning auto-

pilots (27%)

discerning auto-

pilots (27%)

engaged browsers

(22%)

engaged browsers

(22%)deal seekers (17%)deal seekers (17%) trendsetters (11%)trendsetters (11%)

auto-pilot experimental

i n v o l v

e m e n t

e n j o y s h o p p i n g

f o r H a n d & B o d y

L o t i o n s ?

i m p u l s e

p u r c h a s e

i n c i d e n c e

Source : Nielsen



Shopping modes & Trigger s

Kids preference

Buy the same one

Buy the same one

Checked prices

Spouse preference

Read pack label Browsed several Smelled lotion

New brand / variant

Coupon

In-store promotion Checked prices

Coupon Advertising Friend¶s

recommendation Spouse preference Kids preference

In-store promotion Visual pack appeal Read description

New brand / variant Tested lotion on skin Smelled lotion Special display Merchandizing

p r e - s t o r e

i n - s t o r

e

uninvolved auto-

pilots (23%)

uninvolved auto-

pilots (23%)discerning auto-

pilots (27%)

discerning auto-

pilots (27%)

engaged browsers

(22%)

engaged browsers

(22%) deal seekers (17%)deal seekers (17%) trendsetters (11%)trendsetters (11%)

auto-pilot experimental

Source : Nielsen

Least Challenging

& Most diff. to

retain



Channel & Mission

$store

Restock

Replenish lotion

stock at home

Replenish lotionstock at office

Club

Restock

Replenish lotionstock at home

Replenish lotionstock at office

Someone at home

requested it

Mass $store

Entertainment Non-food

Season change -winter

Needed a smaller bottle for travel /carrying in bag

Had an urgent

need for lotion at

that moment and

didn¶t have it Felt dissatisfied with

the current lotion

Grocery Pharmacy

Special Offer Restock

Season change -winter

Pharmacy $ store

Entertainment

Season change ±winter

Pampering self Felt dissatisfied

with the current

lotion

Saw a new lotiontype

c h a n n e l

s h o p p e r

m i s s i o n

uninvolved auto-

pilots (23%)

uninvolved auto-

pilots (23%)

discerning auto-

pilots (27%)

discerning auto-

pilots (27%)

engaged browsers

(22%)

engaged browsers


auto-pilot

w

h y l o t i o n p u r c h a s e d ?

experimental

Source : Nielsen



How do shopping modes and decision rules inter sect?

Everyday nongreasy

Special Needs

Special Needs

Therapeutic

Indulgent Therapeutic Indulgent

Naturals

uninvolved auto-

pilots (23%)

uninvolved auto-

pilots (23%)

discerning auto-

pilots (27%)

discerning auto-

pilots (27%)

engaged browsers

(22%)

engaged browsers

(22%)deal seekers

(17%)

deal seekers

(17%)trendsetters (11%)trendsetters (11%)

auto-pilot

d e c i s i o n r u l e

s e g m e n t s

Therapeutic

Special Needs

therapeutic

naturals

special needs

non-greasy

indulgent

experimental


s e g

m e n t s

driven by rules focused on µrestorative¶ andµreplenishment¶ benefits

driven by rules focused on µnatural¶, µgentle¶, µnon-

artificial¶ products

more restrictive rules based on a special skincondition or need, reducing consideration set

looking for an everyday lotion,vetoing on greasiness,consistency

decision rules focused onpampering and scent, other indulgences

Source : Nielsen



Rules & Moments of Change

Non-greasy Special Needs

Too expensive

Out of stock

Special Needs Therapeutic

Don¶t want one withfragrance

Consistency is toothin / watery Not suitable for sensitive skin

Previous badexperience

Out of stock

Someone in familyliked it

Indulgent

Looks like aprescription product

Out of stock

Pack caughtattention

Therapeutic

Too expensive

Coupon In-store

promotion

Indulgent Naturals

Does not look like apremium product

Looks like a

prescription product Don¶t like the way it

feels on the skin Don¶t like fragrance Previous bad

experience

Came up inconver sation

Recommendation Advertising Someone in family

liked it Merchandizing Tried it at someone¶s

home / office Internet blog

N e e d

m o m e n t s

v e t o

r u l e s

uninvolved auto-

pilots (23%)

uninvolved auto-

pilots (23%)

discerning auto-

pilots (27%)

discerning auto-

pilots (27%)

engaged browsers

(22%)

engaged browsers

(22%)deal seekers

(17%)

deal seekers

(17%)trendsetters (11%)trendsetters (11%)

auto-pilot


s e g m e n t s experimental

Source : Nielsen



Assortment

Suave Private label

Fragrance Free

Everydaymoisturizing

Extra moisturizing UV protection

Large

Vaseline Lubriderm Gold Bond Cetaphil

Fragrance Free Aloe

Medicated /sensitive skin

Extra moisturizing Replenishing /

nourishing skin

X- Large

Bottle with pump

Suave Aveeno Olay Neutrogena Private label

Fresh / clean Nuts & Spice Cocoa Butter

Ultra healing Tanning Replenishing /

nourishing Aroma therapy

Travel Small Medium size

Tube

Dove

Cocoa Butter Citrus

Ultra healing Tanning

Large

Dove Curel

Fruit Nuts& spice Herbal Fresh / clean

Firming Skin smoothing Age defying Aroma therapy

Tube

uninvolved auto-

pilots (23%)

uninvolved auto-

pilots (23%)

discerning auto-

pilots (27%)

discerning auto-

pilots (27%)

engaged browsers

(22%)

engaged browsers


b r a n d

f r a g r a n c e

v a r i e t y

s i z e

auto-pilot

p a c k

experimental

Source : Nielsen



Opportunity : Incremental sales and profitability

trendsetter s

engaged

browser s

deal seeker s

discerningauto-pilots

uninvolvedauto-pilots

Weak priceveto rules

Strong price

veto rules

Low category

impulse

High category

impulseincremental sales opportunity

p r o f i t a b i l i t y o p

p o r t u n i t y

Incremental

sales

opportunity

Incremental

sales

opportunity

Steady revenue stream for more

premium offerings. Not easily

swayed by cheaper prices or

promos in other stores

Steady revenue stream for more

premium offerings. Not easily

swayed by cheaper prices or

promos in other stores

Source : Nielsen



uncover

channel



Shopper Missions Defined

To re-stock myhome

A routineshopping trip tobuy items for TODAY

To get anurgentlyneeded item or

two quickly

To get ³ready-to-eat´ items toeat/ drink rightaway or beforeI return home

A routineshopping trip tobuy items for the NEXT DAY or TWO

To get items needed for a

MEAL that willbe eaten todayor tomorrow

To takeadvantage of aspecial offer

To purchase anon- food item

Re-stockRe-stock ImmediateImmediate IntermediateIntermediate Special Offer Special Offer EntertainmentEntertainment



Pharmacy



Pharmacy | Shopping mode segments

trendsetter sengagedbrowser s

dealseeker s



Low category

impulse

High categoryimpulse

Pharmacy

I n c r e m e n t a l s a l e s o p p o r t u n i t y

Pharmacy ± Leverage trendsetters & deal

seekers

Opportunity : Could attract engaged browsersby making the shopping experience more

engaging

Pharmacy ± Leverage trendsetters & deal

seekers

Opportunity : Could attract engaged browsersby making the shopping experience more

engaging

Source : Nielsen



Grocery



Grocery | Shopping mode segments

trendsetter s

engagedbrowser s

dealseeker s



Low category

impulse

High categoryimpulse

Grocery

I n c r e m e n t a l s a l e s o p p o r t u n i t y

Threat : deal seekers make channel profile vulnerable. They can

switch channels if they find better deals elsewhere.

Opportunity : Attract discerning auto-pilots on restocking

mission to drive steady stream of profitable revenue.

Attract engaged browsers / trendsetters by offering trendy

products and making the shopping experience more engaging.

Threat : deal seekers make channel profile vulnerable. They can

switch channels if they find better deals elsewhere.

Opportunity : Attract discerning auto-pilots on restocking

mission to drive steady stream of profitable revenue.

Attract engaged browsers / trendsetters by offering trendy

products and making the shopping experience more engaging.

Source : Nielsen



uncover

brand



Promotion activation

Private label

Aveeno

Olay

Curel

Neutrogena

Lubriderm

Gold Bond

Eucerin

Nivea

Jergens

Dove

Suave Vaseline

Promotional activity (% sales on in-store promos)

I n - s t o r e P r o m o t i o n

a c t i v a t e d c h o i c e

high impact

low impact



HOW To

DO IT ?



Common Methods Used

Accompanied shoppingUnaccompanied shop In-store interviews Post purchase analysis

Eye Tracking



³A deep understanding of keyshopper insights help

managers to make brilliant use

of all assets which shoppers

see ±our brands, packages,equipment, merchandising,

pricing and messaging ±which

convert a shopper into a

buyer ́

TO SUM UP «

shoppers' research jaipuria 1

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