vulnerability. parity. leadership. using shopper perceptions to drive brand decisions
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research strategy creative
Vulnerability. Parity. Leadership. Using Shopper Perceptions to Drive Brand Decisions
IIR Shopper Insights in Action Wednesday, July 13, 2011
“Do NOT touch merchandise on display”
“Do NOT bother the staff”
“Ask for assistance ONLY IF you are goingto make a purchase”
“Do NOT thank the staff for a free look”
“Do NOT complain about the hours of operation or make personal enquiries”
What Perception are YOU creating?
Watt International | Overview
Line of Business: Integrated Retail Agency
In business since 1966
We help brands find ways to sell MORE things, to MORE people, MORE often.
The Integrated Retail Agency
The US economy will experience a double-dip recession
1. Strongly agree
2. Agree
3. Disagree
4. Strongly disagree
5. We’re already in one.
What’s the Perception? What’s the Reality?
Measuring Shopper Perceptions: Brand Loyalty Switch Factors
Brand Loyalty Switch Factors
Price
Convenience
Quality
Selection
Pleasure
Social Conscience
Features
$
The Seven Brand Perception dimensions are classified in three ways:
• Vulnerable – poor retention; low conversion possibility
• Leadership – strong retention; high conversion possibility
• Parity – does not materially impact retention or conversion
A comparative index score, where Core Shopper data reflects “retention”, and Non-core shopper data reflects “conversion”.
Brand Perception Index: How it works
Which gets higher priority in your business:
1. Retaining /growing your existing consumer base 2. Attracting/converting new consumers 3. A balance of both 4. We don’t distinguish our priorities in that way
Brand Perception Index
Specific to your market/category, do you know:
1. How your Core shoppers (and Non-Core shoppers) rank the importance of each Factor in your category?
2. How your brand stacks up against each Factor vs. the competition?
Price Index
Convenience Index
Quality Index
Selection Index
Pleasure Index
Social Conscience Index
Features Index
$
Quality
Convenience
Pleasure
Selection
Social Conscience
Features
Parity
Price
Retention indices (Core shoppers) Dallas, Texas
- Vulnerable Leadership +
The brands/products we buy
Who’s calling the shots now?
The places we buy them
Generation M:
• Born after 1990: The coming consumer generation
• Don’t know life without the internet
• Short attention spans
• Don’t trust advertising – look to their social network
• Mobile technology is a commodity
• Sensitive to our environment
• Developing their consumer DNA during the global recession.
Compared to Gen X and Y, Generation M – the coming consumer generation – will be;
1. More brand loyal 2. Less brand loyal 3. Demonstrate about the same brand
loyalty
The next generation of shoppers will be more informed, less brand loyal and will rely on their social networks to make informed
buying decisions.
Flexibility and adaptability will be key.
Is your brand ready?
Tesco’s “Buy one get one free” has turned into: “Buy one, get one free… later”
Traditional, innovative ways to change the Path to Purchase
Social media and mobile connectivity have changed the Path to Purchase and
dramatically increased the importance of understanding the “Perception” of your brand
The Value of a Brand
Positive Brand Value = Reality
Perception
Engaging shoppers in the brand using social media
Shopkick - a smartphone application that registers shoppers as they walk through the door, earning them points and prizes toward the purchase of store items.
10,000 new shoppers and raised online sales by 130 percent.
Virtual supermarket – an opportunity to tap into shopper’s down-time
To download a copy of our Digital Marketing 2011 report (and other free reports), see the back of the handout
Company Executives = 80%
Question: Does your company deliver a ‘superior experience’ to its customers?
Service Perception
Customers = 8%
Company Executives = 80%
Customers = 8%
Question: Does your company deliver a ‘superior experience’ to its customers?
Service Perception
LOTS of ways to demonstrate “service”
Quality Perception
What a simple, great way to allow shoppers to experience the primary benefit
Out of stock perception: What does “Out of Stock” mean to the shopper?
71(or 29% below the industry average)
131(or 31% above industry average)
*Total weighted index of OOS occasions and frequency of OOS products
If the shopper is willing to swap brands, then is the retailer perceived as “out of stock”?
*Total weighted index of OOS occasions and frequency of OOS products
As a CPG, do YOU know if a shopper is willing to “swap you out” if you’re not on the shelf?
$ Price Index Key influencers of store choice – total shoppers
Rewarding your loyal customers is becoming price of entry
Rewarding your loyal customers is becoming price of entry
Is there room for more CPG Loyalty Programs?
In-store couponing can help manage price perception
Price Perception Most retailers measure their actual competitive pricing, but how about measuring the perception?
Brand Perception Measuring the Seven Dimensions that influence where people shop
According to Walmart shoppers, how much do they save by shopping at Walmart for groceries vs. Publix?
1. 5% 2. 10% 3. 20% 4. More than 25%
Main store Shopped
Wal-Mart Publix Winn Dixie Food Lion
Wal-Mart - +31% +23% +18%
Publix -5% - +6% +2%
Winn Dixie -3% +17% - +3%
Food Lion -6% +14% +10% -
Price Perception: National Brands
+31% 31
-5%5%
According to Target shoppers, how much do they save by shopping at Target for groceries vs. Kroger?
1. 5% 2. 10% 3. 20% 4. More than 25%
Main store Shopped
Kroger Target Tom Thumb HEB
Kroger - +11% +18% +20%
Target +11% - +21% +25%
Tom Thumb -1% 0% - +17%
HEB +6% +7% +8% -
Price Perception: National Brands
+11%1
+11% 1
Competitive Differential: Provides a indication of how close your brand loyalists are to switching, and vice versa, based on Brand Loyalty Switch Factors
$
What is the average “perceived” price advantage required to make shoppers shift loyalty from their current grocery store?
1. 5% 2. 10% 3. 20% 4. More than 25%
Average discount range affecting switching behavior = 25%
8 12
4 3
15
25
28
18 27
32
40
42
40
41
35
10
9
11
15
4
17
9
27
14 14
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
TOTAL WAL-MART PUBLIX WINN DIXIE FOOD LION
Discount over 40% Discount between 30% and 39% Discount between 20% and 29% Discount between 10% and 19% Discount less than 10%
8 12
25
28
40
42
10
OTAL WAL-MART
27 27
Wal-Mart
Core Non-Core
Publix
Core Non-Core
Winn Dixie
Core Non-Core
Food Lion
Core Non-Core
Social Conscience Index
Natural
Locally-sourced
Organic
Environmentally sensitive
Local community engagement
Charitable causes
Performance index: Social Conscience
Walmart doesn’t get enough credit for its social conscience
Kroger
Core Non-Core
Target
Core Non-Core
Tom Thumb
Core Non-Core
Central Market H-E-B
Core Non-Core
Pleasure Index 96 72 90 91 94 91 121 146 cleanliness 100 79 96 112 101 94 104 115
tidiness 99 77 92 114 109 93 100 116
An enjoyable place to shop 97 69 101 116 97 84 104 131
Staffattitude 101 76 84 84 109 102 106 138
Staff knowledge 102 65 74 71 97 97 127 167
In-store sampling 79 55 90 55 54 74 177 215
Inspiring 82 71 89 54 58 75 171 199
Educational 87 69 84 47 69 89 160 195
Performance index: Pleasure
Central Market HEB is off the chart for “pleasure”…even more so for Non-core shoppers!
115 1
116 1
131 3
138 3
167 6
215 1
199 9
195 9
And finally… Which of the following retailers scored higher from Non-Core shoppers than Core shoppers on ALL Brand Perception indices?
1. Publix 2. Target 3. Kroger 4. Walmart
Brand Performance Index: Summary
Kroger
Core Non-Core
Target
Core Non-Core
Tom Thumb
Core Non-Core
Central Market H-E-B
Core Non-Core
Price 127 126 93 108 100 97 80 68
Quality 102 79 78 68 95 97 126 156
Convenience 111 102 94 112 103 98 92 88
Pleasure 96 72 90 91 94 91 121 146
Selection 102 92 96 100 102 96 100 112
Social Conscience 93 68 87 82 79 86 141 164
Features 120 105 93 102 100 101 87 93
There is a disconnect between the message outside the store and the experience within it
research strategy creative
Vulnerability. Parity. Leadership. Using Shopper Perceptions to Drive Brand Decisions
Thanks for listening!
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