asia’s shopping safari...•practical, quality and control •satisfy daily needs •fresh, savvy...

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ASIA’S SHOPPING SAFARI THE HUNT IS ON Connie Cheng 21 October 2014

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Page 1: ASIA’S SHOPPING SAFARI...•Practical, quality and control •Satisfy daily needs •Fresh, savvy and practical •Satisfy immediate needs and shortages •Spontaneity, Convenience

ASIA’S SHOPPING SAFARI

THE HUNT IS ON

Connie Cheng 21 October 2014

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Connie Cheng Head of Shopper Insights Nielsen Southeast Asia, North Asia and Pacific Email: [email protected]

TODAY’S PRESENTER

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TODAY: MORE SHOPPERS OUT THERE

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TOMORROW: EVEN MORE OPTIONS EVERYWHERE

BRANDS, PRODUCTS AND CATEGORIES

IN-STORE INFLUENCES AND INNOVATIONS

CHANNELS

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HOW DO YOU NAVIGATE

ASIA’S SHOPPING SAFARI?

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EVOLVE OR DISSOLVE

From To

I know all customer segments for my brand

I know all key shopper segments for my brand

They are walking into my store

Their baskets can tell me why they stepped in, what’s in demand and how they shop in-store

Safe strategies: • Price • Promotion

Smart strategies: • Smart pricing • Innovation • Impulse

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SHOPPER

who’s who

STORE

why before buy

STRATEGY

non-price plays

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SHOPPER

who’s who

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THE STORE: A JUNGLE OUT THERE With diverse shoppers across developing and developed Asia, can you satisfy all?

FRESH AND FREQUENT

I like to shop everyday to provide fresh and healthy food for my family

57%

SMART PRAGMATIST

I know how to get maximum value out of a shopping trip

6%

FRUGAL BUDGETERS

I buy only what I want, and can accommodate within my budget

9%

EVOLVED HEALTHY

I know the benefits of good products and will spend to get them

16%

QUALITY SPENDERS

I pick up the best of everything, price is no issue

9%

PRICE AND PROMO OBSESSED

There is always a cheaper alternative or a better deal

3%

Source: Nielsen Shopper Trends 2014

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FRESH AND FREQUENT

FEMALE 25 – 49

Visits: • Traditional grocery • Minimarts • Supermarkets

VISITS

2.2 STORES IN THE PAST MONTH

“I like to shop every day to provide fresh and healthy food for my family.” Price aware

Open to switching brands for good deals

10 Source: Nielsen Shopper Trends 2014

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DECODING THE FRESH AND FREQUENT SHOPPER “Shops every day for freshness”

1 store for…

Another for…

WHY THEY BUY

… immediate, fresh food needs

… stocking up the pantry

Enjoys taking advantage of deals in her

trusted stores and brands

LOYAL OR FICKLE?

Source: Nielsen Shopper Trends 2014 11

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WHERE THEY SHOP

DOs DON’Ts

• enjoy shopping (97%) • compare store brands (60%)

• prefer well organised stores (94%)

• buy healthy options (92%)

• take advantage of deals (91%)

• buy additional items in store (91%)

Average shopping frequency/month

15.7 Traditional

grocery

11.7 Wet

markets

5.6 Minimarts

4.3 Super-

markets

3.4 Hyper-

markets

HOW THEY SHOP

DECODING THE FRESH AND FREQUENT SHOPPER “Shops every day for freshness”

12 Source: Nielsen Shopper Trends 2014

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EVOLVED HEALTHY

YOUNGER AGE GROUPS

(18–34)

Visits: • Traditional grocery • Minimarts • Supermarkets

VISITS

2.1 STORES IN THE PAST MONTH

“I know the benefits of good products and will spend to get them!”

No budget constraints

Cares for quality and eco-friendly products

Prefers healthier options

13 Source: Nielsen Shopper Trends 2014

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SMART PRAGMATIST

Visits • Traditional grocery • Supermarkets • Minimarts

VISITS

2.4 STORES IN THE PAST MONTH

“I know how to get maximum value out of a shopping trip!”

MAINLY FEMALES, NO SKEWS FOR AGE

Ready to browse

Promotion conscious

14 Source: Nielsen Shopper Trends 2014

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KOREA INDONESIA Promotion sensitivity

FRESH AND FREQUENT

SMART PRAGMATIST

EVOLVED HEALTHY

Changes store or brand

Buys within preferred store or brand

No change 4

5

35

47

60

47

17

55

63

39

20

6

SMART PRAGMATIST

Buys more for immediate needs,

actively switching to stores or brands on

promotions

EVOLVED HEALTHY

Shops for immediate needs, stock-ups and

leisure and have little interest

in promotions

Source: Nielsen Shopper Trends 2014

SMART SHOPPERS HUNT DOWN DEALS, HEALTHY SHOPPERS STOCK UP

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STORE

why before buy

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ASIA ON A MISSION: TO SHOP, STOCK OR SNACK

51%

32%

50%

19% 17%

33%

25%

34%

48%

67%

18%

15%

13%

18%

35% 37%

17%

11%

37%

17%

11%

10%

10%

21%

7%

17% 14%

14%

23%

10%

10%

13%

25%

9% 23%

9%

9% 11%

9%

8%

5%

4%

1%

2%

8% 8% 10% 15%

10% 13%

29% 6% 14%

6%

19%

7% 4% 5% 5% 10% 14% 5% 8% 8% 3% 25%

Australia Korea New Zealand Singapore China India Indonesia Malaysia Philippines Thailand Vietnam

Leisure, Special offers/occasions

Urgent/On the go

Meal preparation

Everyday Non-Food

Pantry stock up

Regular large pantry restock

DEVELOPED DEVELOPING

Source: Nielsen Shopper Trends 2014

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MISSIONS DRIVE STORE CHOICE

Source: Nielsen Shopper Trends 2014

LARGE PANTRY RESTOCK

PANTRY STOCK-UP

EVERYDAY NON FOOD

MEAL PREP

URGENT

ON THE GO

Traditional grocery

45%

Supermarkets

58% Convenience

51% Hypermarkets

58% Convenience

60% Minimarkets

49%

Supermarkets

44% Hypermarkets

39% Hypermarkets

41% Supermarkets

43%

Traditional grocery

44%

Hypermarkets

46%

Convenience

44%

Traditional grocery

29%

Minimarkets

34% Wet markets

34% Supermarkets

38%

Traditionl grocery

37%

2.2 stores in past 4 wks

2.2 2.2 2.8 2.3 2.5

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REGULAR PANTRY STOCKING

EVERYDAY NEEDS/ MEAL PREPS

URGENT ON THE GO

THAILAND INDONESIA

VIETNAM INDONESIA

KOREA SINGAPORE

• Convenience Store (76%) • Hypermarket (52%)

• Traditional Grocery (73%) • Minimarts (66%)

• Super/Hypermarkets (97%) • Convenience (61%)

• Supermarkets (94%) • Wet markets (53%)

• Wet markets (90%) • Traditional grocery (78%)

• Traditional grocery (79%) • Minimarts (75%)

DIFFERENT STORES CAN SERVE THE SAME MISSION Channel distinction is blurring

Source: Nielsen Shopper Trends 2014

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RE FLO

W

STORES ARE CATCHING ON SHOPPER TRENDS

Food for now

Food for later

Top-up shop

Matrix for electronics

Traders for business

Molly’s for pet supplies

SMART LAYOUT SMART FORMAT

- Special spend - Family outing

GOODBYE CATEGORIES, HELLO MISSIONS

We’ve seen store formats evolving to meet shopping missions

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• Satisfy predictable needs for frequently used HH items

• Practical, quality and control

• Satisfy daily needs • Fresh, savvy and practical

• Satisfy immediate needs and shortages

• Spontaneity, Convenience and access

LARGE PANTRY

RESTOCK

44%

PANTRY STOCK-UP

15%

EVERYDAY, NON-MEAL

PREP

16%

MEAL PREP

6%

NEED IT NOW

11%

ON THE GO

4%

ENABLE THE MISSION…..

Well organized, pleasant

Well organized, pleasant

Special deals Buy what

I need Pay more for time saving

Well organized, pleasant

Pay more for quality

Pay more for quality

Well organized, pleasant

Special deals Buy what

I need Pay more for time saving

SHOPPING MISSIONS

ENABLE THE MISSIONS TO DRIVE IN-STORE TACTICS

Source: Nielsen Shopper Trends 2014

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LET’S TALK ABOUT MEN Male shoppers are less sensitive to promotions and prefer brands they trust

ON-THE-GO SHOPPERS

(1.6Xs more than females)

MARRYING LATER

MORE DIVORCES

Sources: Nielsen Shopper Trends 2014, Asia Research Institute

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TRADITIONAL MALE PRODUCTS

HOME CARE AND HYGIENE

CONFECTIONARY AND SNACKS

MEAL PREPARATIONS AND BEVERAGES

Air freshener

Bar soap Batteries

Chocolates Biscuits Ice Cream

Bottled water

Wine Fresh

meat/seafood Packaged

rice

Beer Razor Shaving foam

What men buy more than women (categories with >50% male shoppers among 54 categories)

CHINA

56%

KOREA

44%

INDONESIA

16%

AUSTRALIA

13%

INDIA

11%

HE’S BUYING MORE FOR THE HOUSE

Source: Nielsen Category Shopper Fundamentals Study 2014

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HE’S MORE INVOLVED NOW

“Men-only” products growing

50% faster

than “total personal care”

Use 7 different personal care products

every 2 months

At least 1 in 4 shoppers are male

Growing 2Xs in last 4 years

Sources: Nielsen Research; Nielsen Shopper Trends 2014 24

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AUSTRALIA INDONESIA SINGAPORE

HE NEEDS DIRECTIONS To locate products in the store

25

47

20 17 15

42

18 21 19

51

21 15 13

Sole decision Largely sole Limitedbrand to

satisfyothers

specificbrand to

satisfyothers

TOTAL MALE FEMALE

22 18

41

20 20 15

45

20 24

20

36

20

Sole Decision Largely soledecision

limitedbrand to

satisfyothers

specificbrand to

satisfyothers

TOTAL MALE FEMALE

37

23 21 20

31

23 25

22

41

23

18 18

Sole decision largely soledecision

limitedbrands to

satisfyothers

specificbrands to

satisfyothers

TOTAL MALE FEMALE

Largely sole

decision maker

Largely sole

decision maker

Sole decision maker

Largely sole

decision maker

Sole decision maker

Sole decision maker

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STRATEGY

non-price plays

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DEVELOPED

8%

2% 2% 2%1%

0%

9%8%

5%

Korea HK Taiwan Singapore Australia NZ Thailand Malaysia Philippines

RETAIL ASIA: OPTIMISTIC OUTLOOK? MORE STORES

MORE CHOICES

Vietnam

75% Philippines

20% Indonesia

20% Korea

14%

% growth of food and beverage choices in the last 5 years

Growth in MT stores in the last 5 years

DEVELOPING

Source: Nielsen Retail Index 2014

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MORE CHOICES = LESS STORE LOYALTY?

Stores visited

Korea 3.6

Australia 3.5

Hong Kong 3.2

New Zealand 2.2

Singapore 1.9

Taiwan 1.8

Asia Pacific shoppers visited 22% more stores now than five years ago

DEVELOPED ASIA

> 2 STORES

Stores visited

Indonesia 2.4

China 2.2

Malaysia 1.7

Philippines 1.6

Thailand 1.5

India 1.4

Vietnam 1.4

DEVELOPING ASIA

1-2 STORES

Source: Nielsen Shopper Trends 2014

APAC 2009: 1.8 APAC 2014: 2.2

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SUPERMARKETS ARE BIG ON PROMOTIONS As much as hypermarkets in China and Indonesia

% Spent on Promotion by Channel

42%

34%

29% 29%

38% 41%

35%

29%

24%

13%

40%

19% 20% 19%

58%

SINGAPORE AUSTRALIA CHINA INDONESIA THAILAND

Hypermarket Supermarket CVS/Minimarkets Online

Source: Nielsen Consumer Panel

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YET PRODUCTS ARE NOT FLYING OFF THE SHELVES With fragmentation and slowing growth rate…..

Volume Growth Rate , 1H 2014 vs. 1H 2013

13.4 -4.5

8.2 -3.0

4.7 -0.3

0.7 1.0

Indonesia

Vietnam

Thailand

Philippines

Source: Nielsen Retail Index 2014

0.8 -1.6

Korea

0.2 1.1

Australia

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HOW LOW PRICES RANK IN STORE CHOICE Out of 27 attributes

“Prices decreased”

Source: Nielsen Shopper Trends 2014

LOW PRICES ARE NOT PRIORITY FOR SHOPPERS Shoppers who think

prices have increased

21 23 26

5 5 26

1 2 3

78%

69%

91%

62% 5 2 7 11

3

25

21

2011 2012 2013 2014

AUSTRALIA

THE PHILIPPINES

INDONESIA

THAILAND

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18% 16% 15%

9% 7%

17% 17% 8%

7% 7%

32% 42%

23% 31%

50%

27%

37% 32%

38%

57%

33%

22%

20%

20%

28%

11%

30%

24% 28%

8%

13%

18%

AUSTRALIA KOREA HK TAIWAN SINGAPORE NZ THAILAND CHINA INDONESIA MALAYSIA VIETNAM

Change Store Actively Search Change Brands

Thai, Korean, Malaysian and Chinese shoppers are most responsive to promotions

Shoppers claimed response to promotions

LESS THAN 15% OF SHOPPERS SWITCH STORES DUE TO PROMOTIONS

DEVELOPED DEVELOPING

Source: Nielsen Shopper Trends 2014

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SO WHAT’S YOUR STRATEGY TO

NAVIGATE ASIA’S SHOPPING

SAFARI?

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ARE YOU PRICING SMARTLY?

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ASIA: WHO BUYS WHAT ON PROMOTIONS? Top 5 categories - % spent on promotions

SINGAPORE

HEALTH-CONSCIOUS SHOPPERS

Source: Nielsen Consumer Panel

79%

ORAL SLIMMING

70%

ESSENCE OF

CHICKEN

66%

ADULT DIAPERS

65%

LIQUID MILK

64%

ICE CREAM TUBS

THAILAND

PERSONAL CARE AND BEVERAGES

55%

SHAMPOO

54%

FABRIC SOFTENER

51%

DISPOSABLE DIAPERS

51%

TONIC FOOD

DRINKS

50%

INSTANT COFFEE

AUSTRALIA

APPETITE FOR SNACKS AND BEVERAGES

80%

BOXED CHOCOLATES

73%

SOFT DRINKS

65% 62%

BAKERY SNACKS

61%

ICE CREAM ENERGY/ SPORTS/ ICED TEA

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BE SELECTIVE WITH PRICING AND PROMOTIONS

Source: Nielsen ScanTrack

Thailand sales vs. discount analysis

Softdrink

Snacks

Energy Drink

Instant Coffee

Detergent

Drinking Water

RTD Tea/Coffee

Instant Noodle

Liquid Milk

Cooking oil

Fruit Juice

Shampoo

Biscuit

Moist.Face

Fabric Softener

Toothpaste Egg

Pre-packed rice

Essence of Chicken

Sugar

Functional Drink

0

45

90

0 1 2 3 4 5 6 7 8 9

% DISCOUNT

% S

ALE

S U

PLI

FT

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MORE PROMOTIONS = MORE SALES?

Source: Nielsen Category Shopper Fundamentals Study 2014

Diapers

CSD

Coffee

Shampoo

Laundry Detergent

Toothpaste

Razors for men

Infant formula

Facial moisturizer

Canned Tuna

Margarine and Butter

Packaged Rice

Vitamins and Supplements

BOUGHT MORE ON PRICE PROMOTIONS

BOUGHT MORE ON REGULAR PRICE

AUSTRALIA

JAPAN SINGAPORE

KOREA

CHINA

INDIA

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ARE YOU CONSTANTLY INNOVATING?

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ATTENTION SEEKERS IN THE AISLE: NEW PRODUCTS AND INTERESTING PACKAGING

47%

18%

12%

12%

11%

Pack New product POSM Check out Product Trial

What do in-store browsers look for?

7 in 10 packaging or new products

NEW PRODUCT

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Packaged rice

Canned tuna

Energy drinks

Bleach (household usage)

Mouthwash

Pain remedies/aspirin

Body lotion

Hair Conditioner

Packaged (dry/ powdered) soup

Sho

pp

er p

erce

pti

on

of

cate

gory

inn

ova

tio

n/c

han

ge

% of new SKUs launched in the past 2 years

New Product Launch Activation

Low impact – low cardio

Low impact – high cardio

High impact – low cardio

High impact – high cardio

NOT ALL NEW LAUNCHES ARE SUCCESSFUL

NEW PRODUCT

Source: Nielsen Category Shopper Fundamentals Study 2014

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Shoppers are looking for new and compelling reasons to justify full price

Source: Nielsen Category Shopper Fundamentals Study 2014

DRIVE TRIAL WITH THE RIGHT PRODUCTS

Beer

CSD

Crisps

Shampoo

Toilet Cleaner

Laundry Detergent

Diapers

Yoghurt

Biscuits/Cookies

Cooking Oil

Dishwash Liquid

Face Moisturizer

Fruit Juice

Infant mik

Body Wash

Batteries

Body moisturizer

Energy Drinks

Feminine Products

Vodka

Margarine

Low experimentation

Average Experimentation

High Experimentation

JAPAN SINGAPORE

KOREA

AUSTRALIA CHINA INDIA

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ARE YOU CAPITALISING ON IMPULSE SHOPPERS?

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Are you seizing these opportunities?

Source: Nielsen Category Fundamentals 2014

IMPULSE PLANNED REMINDER

“I decided to buy <category> once in

the store”

“I wanted <category>, but only recalled the

need in the store”

“I planned to purchase <category> before I arrived at the store”

DECIDED

OPPORTUNITY TO INFLUENCE

34% Across 17 categories in 14 countries

ONE-THIRD OF CATEGORY DECISIONS ARE INFLUENCED IN-STORE

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BASKETS CAN GROW WITH IMPULSE/REMINDERS In-store triggers drive sales significantly

Reminder = needed item, but only recalled the need once in store

Planned = needed item and planned to buy before arriving at the store

True Impulse = didn’t specifically need the item, but decided to buy in store

Planned vs. impulse percentage

Source: Nielsen Category Shopper Fundamentals Study 2014

60 24

17

SINGAPORE 57 30

12

KOREA

64

27

9

INDIA

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Which of these do you recall happening recently?

MULTITUDE OF IN-STORE TOUCHPOINTS DO THE JOB

Source: Nielsen Category Shopper Fundamentals Study 2014

32%

41%

51%

Mar

gari

ne/

bu

tter

Pac

kage

d r

ice

Can

ned

tu

na

Dri

ed p

asta

Ener

gy d

rin

ks

Vit

amin

s/su

pp

lem

ents

Pac

kage

d (

dry

/po

wd

ered

) so

up

Bat

teri

es

Mo

uth

was

h

Shav

ing

crea

m

Bo

dy

loti

on

Fem

inin

e p

rod

uct

s

Hai

r C

on

dit

ion

er

84 78 90 73 122 129 102 90 104 116 110 94 100

95 100 98 95 115 102 105 90 102 105 107 100 93

122 113 116 125 66 72 100 116 91 84 78 106 100

Category Touch-points (i.e. advertising, conversations, friends recommendations, promotions)

FMCG norm Pre-store

In-store

Don’t remember any Ind

ex v

s To

tal

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PERSUADE WITH IN-STORE MARKETING THAT RESONATES

Fresh meat & fish

Margarine / butter

Packaged rice

Canned tuna

Dried pasta

Energy drinks

Vodka/flavored vodka

Batteries

Bleach (household

usage)

Mouthwash

Vitamins/supplements

Shaving cream

Pain remedies/aspirin

Body lotion

Feminine products

Conditioner

Packaged (dry/ powdered) soup

Invo

lvem

ent

Experimentation

AVAILABILITY: Avoid out-of-stock, radical brand or store repositioning that disrupts auto-pilot

VISIBILITY • Interrupt shopper journey to drive conversion • POS that utilise imagery to tantalize the senses and

achieve impactful in-store presence

CALL TO ACTION: Overlay POS with a short action oriented banner and clear message

ACTIVATION: Keep a close eye on competitive pricing and ensure promos tip the scale to your advantage

Source: Nielsen Category Shopper Fundamentals Study 2014

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THE HUNT IS ON…..

KNOW GROW ACT

STRATEGY

non-price plays

SHOPPER

who’s who

STORE

why before buy