comportamiento compra 2006

Understanding Understanding ““Quick TripsQuick Trips””

NACDS MarketplaceSan Diego Convention CenterJune 24-27, 2006

Key Issues and Challenges for RetailersKey Issues and Challenges for Retailers

• Competitive Retail Environment

• Slow Growth

• Financial Pressure

• Inventory And ROI

Consumers are Stressed Out!Consumers are Stressed Out!“I am so busy and in such a hurry all day that by evening I’m too worn out to fix a meal or do anything that requires much in the way of time or effort.”

“I’m constantly looking for new ways to get the household chores (like shopping, cooking, cleaning) done faster.”

TodayToday’’s Retail Environments Retail Environment

• Too Many Retail Stores• Too Many Choices• Not Enough Time• Consumers Looking for Shopping Convenience• Total # of Shopping Trips Declining

BATH & BODY WORKSBATH & BODY WORKS

How to Succeed in a Challenging EnvironmentHow to Succeed in a Challenging Environment

• Retailers Can Grow Their Sales By:– Increasing Their Shopper Base– Driving Shopping Frequency– Building Baskets

• Leveraging Categories and Brands That Impact One or More of These Components

Quick TripsQuick Trips –– The New BattlegroundThe New Battleground

• 64% of All Shopping Trips Are Quick Trips • The Average Basket Is $20• Fill in Trips Are Another 12% of Shopping Occasions

Averaging Just $50• After Pharmacy, Beauty Products Are the 2nd Most

Frequently Purchased Items in Quick Trip Baskets

New Economic Model New Economic Model ––Achieve Increased Share of Quick Trips!Achieve Increased Share of Quick Trips!

• Design Store Layout for Improved Ability by Customers to Get in and Out Quickly

• Focus on “Immediate Need”Products

• Encourage Impulse Purchasing of Full Price/High Margin Products to Increase Value of the Quick Trip Shopping Basket

Key Industry Initiative Led by Coty With a Key Industry Initiative Led by Coty With a Number of Important Strategic PartnersNumber of Important Strategic Partners

ADVISORY BOARDDr. Len Lodish – Professor at The Wharton School of BusinessDr. Robert Blattberg – Professor at Kellogg School of Management, Northwestern University

CannondaleCannondale2006 Industry Shopper Study2006 Industry Shopper Study

2006 Industry Shopper Study2006 Industry Shopper Study

• Understand shopper attitudes and behaviors

• Identify actions at retailer segments that• Enhance the shopping experience• Differentiate the retail segments

• Online study among • 5,000+ primary shoppers• HBC, groceries, household basics

• 1,100 retail banners evaluated

• Fall 2005

Objectives

Methodology

Source: Cannondale Associates Industry Shopper Study, 2006

Tools to Understand Shopper ChoiceTools to Understand Shopper Choice

• Signage• Close by• One stop• Easy to find

items• Quick in & out• Store hours

• Store services• Helpful sales

people• Clean store• Fun to shop

• Shopper card program

• Promotions• Everyday low

prices

• Store brands• Wide selection• Name brands• Latest / unique

products• Consistent

selection• Quality

merchandise• Product

availability

• Time spent• Spending• Frequency

AttitudesBehaviors

Convenience Selection Discounting Store Environment

20.6%

23.5%29.4%

26.4%

Shoppers Confirmed the Lack of Shoppers Confirmed the Lack of Retail Banner LoyaltyRetail Banner Loyalty

• Over two thirds shop 5+ retail banners• Over one quarter shop 10+ banners

# Retail banners shopped in past 3 months


What factors can attract and retain shoppers?

50 80 110 140

Frequency

Time Spent

Spending

Quick In and Out

Close By

Store Hours

Good Signage

Easy to Find Items

One Stop

Promotions

Shop Card Program

EDLP

Store Services

Helpful Sales People

Clean Stores

Fun to Shop

40 70 100 130 160

Quick In and Out Access is ImportantQuick In and Out Access is Important

Behaviors

Convenience

Discounting

Store Environment


40 70 100 130 16040 70 100 130 160

Quick!

Store Services

Shopper Card

Programs

Attitude and Behavior Indices Relative to Retailer Average

Clusters Emerged Based on Shopper Clusters Emerged Based on Shopper Attitudes and BehaviorsAttitudes and Behaviors

Behavior index measured by spending, shopping frequency and trip timeAttitude index measured by performance of convenience, selection, discounting and store environment factors, weighted by importance of the factors to the shoppers at that retailer


Index of Shopper Attitudes and Behaviors at Retailer Relative to Average

KmartRite Aid

Dollar GeneralFamily Dollar

Dollar Tree

99c Only

7-Eleven

am/pm

Circle K ExxonMobil

Shell BP

SuperTargetWegmansSafeway

PublixKroger

H-E-BGiant FoodAlbertsons

Walgreens

Eckerd

CVS

Target

Wild Oats

Whole FoodsTrader Joe's

Behavior

Attitude

Routine Replenishment

Experience Makers

Quick Trips

Big Shops

Sam's Club B.J.'s

Wal-Mart

Wal-Mart SC

Stop & Shop

Sav-A-Lot

Food Lion

Costco

Which Channels Get the Quick Trips?Which Channels Get the Quick Trips?

Note: Quick trips = 1-5 itemsFill-in trips = 6-12 itemsStock-up trips = more than 12 items

% of Trips Per Trip Type

20%

21%59%

24%

25%51%

25%

25%50% 38%

27%

35%

Club Grocery Supercenter Mass

59%23%

18%

60%23%

18%

68%19%

14%

80%11%

9%

More Stock-Up

Trips

Dollar Small Format/Value Drug

More Quick Trips

C-Store

Stock-Up Fill-In Quick


$110

$66

$63

$49

$41

$29

$23

$17

$10

Club

Grocery

Supercenter

Mass

Health

Drug

Small Format Value

Dollar

C-Store

$/Trip Typical

Shoppers Spend Less on all Trip Types at Shoppers Spend Less on all Trip Types at Smaller Format StoresSmaller Format Stores

$10

$13

$12

$19

$18

$21

$21

$22

$29

$10

$24

$33

$26

$52

$78

$103

$110

$154

$33

$30

$30

$25

$14

$17

$10

$6

$45

Quick Fill-In Stock-Up

Source: Cannondale Associates Industry Shopper Study, 2006.

Quick Trips Can Take Almost as Long as Quick Trips Can Take Almost as Long as Stock Ups!Stock Ups!

Quick

17

25

21

21

33

23

31

29

34

16

34

39

45

50

72

77

83

96

36

38

30

35

24

21

25

12

43

Fill-In Stock-Up

Note: Quick trips = 1-5 itemsFill-in trips = 6-12 itemsStock-up trips = more than 12 items



66

64

56

50

44

39

35

34

19

Supercenter

Club

Mass

Grocery

Dollar

Health

Small Format Value

Drug

C-Store

Time Spent/Trip (Min) Typical

IRI Shopper InsightsIRI Shopper Insights

Understanding Trip Understanding Trip MissionsMissions

Focused on Shopping Trip BehaviorFocused on Shopping Trip Behavior

Stores & Banners

Consumers Products & Brands

- Food stock-up- Food+HBC stock-up- Food + Home Care

- Perishables fill-In- Non-food fill-in

- Meal solution- BWS & tobacco

- Beer/Wine/Spirits- Tobacco- Beverage+snack- Health/personal care

Predominant Product Types Vary by Trip Type

$50 +

$30-80

$20-50

< $40

Spending

15 +Stock-Up many categories

5 - 15Fill-In several categories

2 - 10Special Purpose

1-5Urgent NeedQuick Trip

# ItemsTrip Mission

Trips Cluster by Purpose & SizeTrips Cluster by Purpose & Size

Prepare household for the coming weeks

Routine fill-in on heavy-use categories

Buying for a specific need/event (not routine)

We’re out, we need it, we have to make a trip for it

Shopper Mindset

All Trips

Pantry Stocking

Fill In Special Purpose

Urgent NeedTr

ip

Mis

sion

Trip Types are Driven by the BasketTrip Types are Driven by the Basket

Large/Medium TripsFood stock up -large/med/smallStock up w/ HHold Stock up w/ HBC, medical, personal careStock up w/ alcoholNon grocery stock up

Small TripsMilk runDisaster recoveryPersonal careUrgent home med needsThirst quencherCigarette runAlcohol trip

Medium TripsBev & HHold fill inDairy/snacks perishables fill in Non perishable food & HHold fill inLarge personal care & HHold supplyLarge gen merch & HHold supply

Medium/Small TripsMeal timePersonal care & HHold supplyGen merch/HHold supplyCocktail partyBeer & buttsGen merch/auto supplyBooze refill

Trip

Ty

pes

Quick Trips Dominate Both Quick Trips Dominate Both Trip Frequency and $ SpendingTrip Frequency and $ Spending

• Trip Missions differ in both frequency and dollar importance

10%12%14%

64%

24%

15%

22%

39%

Frequency Spending

Urgent NeedSpecial PurposeFill InPantry StockingAll Purchases

Trip Missions Differ on Frequency, Trip Missions Differ on Frequency, Spending and VarietySpending and Variety

11$1,610$9816Pantry Stocking

7$ 938$5019Fill In

4$6,621$41161Total

2$2,981$28106Urgent Need

5$1,092$5520Special Need

Super Cat/TripAnnual $$/TripTrip Freq

2$2,981$28106Urgent Need

• Milk Runs and Thirst Quenching are the top 2 CPG reasons for Quick Trips

• HBC purchases such as Personal Care and Home Medical needs represent another 10% of UN trips

Necessities Drive Quick TripsNecessities Drive Quick Trips

24.019.3

14.0

5.3 5.0 5.0 3.0

Non CPG Run Milk Run Thirst Quencher DisasterRecovery

Personal Care Home MedNeeds

CigaretteRun/Alcohol Trip

Total US – IRI Trip Data – Urgent Need Trip Mission

% of Urgent Need Trips

1 3 1 3 3 2 1Median

# of UPCS

Who is the Quick Trip Shopper?Who is the Quick Trip Shopper?

• Singles and married couples without children

• Metro/city dwellers where large shopping trips to grocery/mass merchandisers are less likely

Group Name Cluster Name AgeMarital Status Income Urbanicity Net Worth

Bommer Singles City Mixers 36-45 Single Middle Downtown Metro <$100KMixed Singles Urban Scramble 24-35 Single Low Downtown Metro <$100KOur Turn Downtown Boomer 46-66 Married Middle Downtown Metro $100K-$249KModest Means Penny Pinchers 46-67 Single Lowest City & Surrounds $100K-$249KActive Elders Clubs & Causes 66-75 Married Upper Middle Outer Suburbs & Towns $100K-$249K

Top Personicx Lifestage and GeoDemographic Groups Based on Urgent Need Shopping Mission Frequency

Trip Frequency and Spending Trip Frequency and Spending HBC TripsHBC Trips

7

$107

6

$74

8

$51

13

$2234

$56

PantryStocking

Fill In SpecialNeed

UrgentNeed

Total

HH Annual HBC Trip Frequency Avg $ Spent Per Trip

HBC Quick Trips Drive a Higher Value HBC Quick Trips Drive a Higher Value Shopping Basket Shopping Basket

ANTI-SMOKING PRODUCTS 47.92$ HAIR GROWTH PRODUCTS 41.36$ FRAGRANCES - WOMEN'S 34.40$ WEIGHT CONTROL CANDY/TABLETS 33.43$ WEIGHT CON/NUTRITION LIQ/PWD 32.08$ BREATH FRESHENER SPRAYS/DROPS 31.39$ VITAMINS 30.31$

PERSONAL THERMOMETERS 27.77$ SHAVING LOTION/MENS FRAGRANCE 26.56$ ADULT INCONTINENCE 24.85$ GASTROINTESTINAL - TABLETS 24.84$ SUNTAN PRODUCTS 24.48$ EYE/CONTACT LENS CARE PRODUCT 24.43$ COSMETICS - FACIAL 23.14$ FOOT CARE PRODUCTS 23.05$ NASAL PRODUCTS 22.96$ SKIN CARE 22.91$ CONTRACEPTIVES 22.77$ BATH/BODY SCRUBBER/MASSAGERS 22.68$ BLADES (Excl Blades w/Razors) 22.30$ INTERNAL ANALGESICS 21.80$ COLD/ALLERGY/SINUS TABLETS 21.79$ SLEEPING REMEDIES 21.64$ COSMETICS - LIP 21.48$ MOIST TOWELETTES 21.31$ COSMETICS - EYE 21.29$

Avg $/Trip = $21.55

Avg $/Trip with Category in Basket: All Outlet – Urgent Need Trips

$30+ Basket

Identify & Leverage Category StrengthsIdentify & Leverage Category Strengths

Total Trips

$ per Trip

Total U.S. - All Outlets – All UPC Coded Trips

Frequent purchase occasion

High per trip spend

SoapVitamins

Toothpaste

Cosmetics

Shampoo

Internal Analgesics

Deodorant

Fem Hygiene

Home Health Care Kits

Anti SmokingHair Growth

Mens FragranceWomens Fragrance

Moist Towelettes

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

High per trip spend

Frequent purchase occasion

0

10

20

30

40

50

60

0 10,000 20,000 30,000 40,000 50,000

Leverage Category Strengths: Leverage Category Strengths: Quick TripsQuick Trips

Trips per Year

$ per Trip

Total U.S. - All Outlets/Urgent Need Trips with Upc-coded products

Soap

Vitamins

Toothpaste

Cosmetics Internal Analgesics

Fem Hygiene

Cold/Allergy

Home Health Care Kits

Anti Smoking

Hair Growth

Women’s FragrancesWeight Contr

Tablets

Coty Action Coty Action &&

Project Next StepsProject Next Steps

Thank you!Thank you!

Questions?Questions?

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