thailand promotion index - wordpress.com...executive summary: sep 2015 thailand promotion index1...
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What Promotion Insights?
What Promotion Data we Capture? The promotion we capture are the number of times a product appears in a brochure, the details of the brochure or Newspaper ads from retailers (date, duration and retailer) as well as the details of the product (brand, category, mechanics, price)
Why this information is important? In less than 2 years, despite the rise of digital retail and social network usage, the number of promotions published every month has more than doubled in Modern Trade, reaching 21,000 products. The frequency keeps growing. It means that Shoppers are increasingly more exposed to brochures and what they see in the mailers or in the Newspaper ads. Consequently, it means that the opportunity to be seen for a Brand in a brochure or a newspaper has become more important, from a shopper impact perspective, than the number of days a product has been in promotion. It also means that the alignment between brochures or Newspaper promotions and in-store
display is becoming critical to capture shoppers’ attention during their Path To Purchase. From a Brand Plan, Joint Business Plan or Category Management perspective, these new metrics become critical Activity Plan to support a Brand Sales & promotion strategy as well as yearly negotiations for Retailers. The risks of ignoring these metrics are to develop a strategy that would not integrate the evolution of the messages shoppers receive.
What about Nielsen? Nielsen data propose another perspective. They link the number of days a product has
been in promotion at a retailer and the impact on POS data. Nielsen data are extremely useful to measure Promotion’s effectiveness and Return on Investment. A3 Retail data focus more on 2 other critical dimensions: • What do shopper see, where and how often: frequency, share of voice, promotion price
index, promotion mechanics • What are the levels of promotion investments from retailers or manufacturers in specific
categories and channels
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Executive Summary: Sep 2015
☑ Thailand Promotion Index1
Overall promotion activities among Thai retailers remained relatively stable in Sep ’15, compared to Aug ’15, at 154%. While promotion activities in Personal Store and Hypermarket slowed down, Wholesalers ramped up its promotions during this period.
☑ Promotion Price Index2
In Jul ‘15, we introduced a new measure, Promotion Price Index2, which is aimed to capture price competition of basic commodities in the market.
Promotion Price Index for the month of Sep ‘15 is 98.7%, a 2 percentage decrease from previous month. Price decrease was driven by higher price competition in basic Baby Milk, Coffee and Pork.
☑ Retail Promotion Strategies
Compared to Sep ‘14 , most key retailers clearly put more weight in Grocery. Makro, for
example, increased Grocery Share of Voice within its promotion portfolio by 6%.
In contrast to Grocery, most retailers were decreasing proportion of Hard Goods and Fresh Produce category. Tesco and Makro decreased them share of promotion by 4%.
☑ Top Traffic Generating Brochures3
Big C and Makro, with its continued aggressive promotion strategies, dominated 2 out of Top 5 traffic generating brochures. The other from Tesco.
☑ Top 5 Promoted categories
Top 3 Promoted categories continued to be Rice & Flour, Seasoning. Share of Voice in Laundry product decrease from the last month.
The other Top Promoted categories were Snacks, whose Share of Voice increased significantly from last month.
1) Thailand Retail Promotion Index (TPI) is the number of promotions monthly featured in brochures and daily newspapers by 4 Leading
Retailers in Thailand: Tesco (Hyper and extra), Big C (Hyper and extra), Tops Supermarket/Superkoom and Makro (GM and Food Service).
The starting date - our base 100 is on January 2013.
2) See definition of Promotion Price Index in Glossary
3) Traffic Generating Brochure is a brochure that has more promotion products than another brochure, the more promotion product the
brochure has, the more we consider it can generate traffics.
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Thailand Promotion Index (TPI)
TPI is an index to measure promotion activities among all retailers in Thailand. The index is
calculated by comparing number of promotion items on printed media of the current month
vs reference month (January 2013)
156% 161% 159% 161% 150% 178%
202%
133% 126% 158% 154% 148%
0%
100%
200%
Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Thailand Promotion Index (OCT14 - SEP15)
Jan’13
= 100
0%
100%
200%
300%
Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Thailand Promotion Index by Retail Formats
CVS HYPERMARKET PERSONAL STORE SUPERMARKET WHOLESALER
Brand Name Pack # of
promo AVG price
(THB)
ENFAGROW A+ BABY MILK POWDER GROWING UP 1+ 360 MIND PLUS 1 BOX 3 BAG 550 GM 39 819.44
MILO 3 IN 1 3 IN 1 INSTANT CHOCOLATE POWDER 1 PACK 15 BAG 35 GM 31 93.26
MOO CHAMP NEM SAUSAGE 1 PCS 120 GM 28 63.29
MOO CHAMP MOO YOH 1 PCS 175 GM 28 63.29
SHANGARILA RESTAURANT MOON CAKE 1 PCS 28 100.43
Top 5 Promotion Items in Sep 15
102.2% 100.0%
102.6% 102.6% 102.6% 100.1% 99.7% 99.2%
100.9% 99.5%
100.7% 98.7%
90.0%
95.0%
100.0%
105.0%
110.0%
Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Promotion Price Index (OCT14 - SEP15)
Jan’13
= 100
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1) Retailer Price Index is the positioning of a product [or a group of product] at a retailer compared to the average selling price of the same product [or group of product] in the selected retailer scope. The Promotion Price Index is calculated on products that are simultaneously on promotion at all retailers in the scope at least one day during a calendar month.
2) Including the rebranding of Top Supermarket to Top Superkoom 3) Show the ratio percentage of number of promotion items in the selected category compared to all promotion items in all
categories for the same retailer during the same period.
Promotion strategies
Key retailers’ Share of Voice3
Top5 promoted categories
Key retailers’ promotion activities
Retailer Price Index Evolution1
Nb B/C Nb N/P Nb I tems Nb B/C Nb N/P Nb I tems Nb B/C Nb N/P Nb I tems
Makro Food Retail 18 2 2,751 24 1 3,509 33.33% -50.00% 27.55%
Big C 5 43 2,553 6 29 2,501 20.00% -32.56% -2.04%
Tesco Lotus 3 30 1,236 3 29 1,723 0.00% -3.33% 39.40%
Tops Superkoom2 3 4 277 4 4 631 33.33% 0.00% 128.21%
Aug 15Retailer
Aug 14 Changes
Sep-14 Sep-15 Changes Sep-14 Sep-15 Changes Sep-14 Sep-15 Changes Sep-14 Sep-15 Changes
APPLIANCES & FURNITURE 20% 17% -3% 12% 14% 2% 13% 13% 0% 0% 0% 0%
FRESH PRODUCE 13% 14% 1% 22% 21% -1% 28% 24% -4% 31% 28% -3%
GROCERY 44% 50% 6% 44% 45% 1% 49% 54% 5% 65% 68% 3%
HARD GOODS 22% 18% -4% 8% 8% 0% 5% 2% -3% 4% 4% 0%
TEXTILE 1% 1% 0% 14% 13% -1% 4% 7% 3% 0% 0% 0%
Markets / RetailersBig C Tesco Lotus Tops Superkoom2Makro Food Retail
Total Retail Total Retail Total Retail Changing Changing
SOV SEP 2015 SOV SEP 2014 SOV AUG 2015 SEP 15 vs AUG 15 SEP 15 vs SEP 14
SEASONING 4.40% 4.60% 3.50% 0.90% -0.20%
LAUNDRY PRODUCTS 4.10% 4.20% 4.60% -0.50% -0.10%
SNACKS 2.80% 2.10% 1.90% 0.90% 0.70%
RICE & FLOUR 2.70% 3.10% 2.00% 0.70% -0.40%
COFFEES 2.20% 2.30% 2.60% -0.40% -0.10%
Markets
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Top Traffic Generating Brochure
💡 Key points 2 out of Top 5 Traffic Generating Brochures in Sep ‘15 are from Big C with focus on Big C discount all section. The other 2 Top Traffic Generating Brochures were from Makro with key theme on
business partnership with TT stores.
Items 584 550 533 512 508
Pages 20 32 28 28 24
Stores 107 107 68 68 131
Duration 14 14 14 14 14
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Category Flash Analysis
Category Flash Analysis provides summary information of promotion activities in the selected category
during the current month vs same month of last year.
The category selected during the month of Aug ‘15 is Growing Up 1+ as it is the top promoted
category of the month.
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Product Flash Analysis This analysis provides a snapshot of promotion activities of the selected product (SKU) including
promoting retailers, price range, price history and price comparison among promoting retailers.
In this analysis, ENFAGROW A+ was selected due to high level of promotion as well as significant
price decrease during the reporting month vs 12-month Historical Average Price.
It should be noted that significant price drop is a result of aggressive promotions by Big C and
Tops across all of its formats.
Moving Annual Total Price Trend from Oct14-Sep15 Comparison of Virtual Price each Retailer in Sep15
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Glossary
Retailers : Show the top 3 retailers that have the most promotion items in the selected category during the reporting
month. Also show the change in term of Share of Voice of the retailers vis a vis Share of Voice in the same month of last
year.
Share of Voice : Show the ratio percentage of number of promotion items in the selected category compared to all
promotion items in all categories during the same period.
Brands : Show the top 3 brands that have the most promotion items in the selected category during the reporting
month. Also show the change in term of Share of Voice of the brands vis a vis Share of Voice in the same month of last
year.
Private Label : Show the ratio percentage of number of House Brand promotion items in comparison to total number of
promotion items in the selected category. Also show the change in term of Share of Voice of House brands vis a vis
Share of Voice in the same month of last year.
Average Price : The average promotion price in every promotion items in the selected category during the period of
reporting month from all retailers.
Promotion Price Index : Promotion Price Index is a simple (non-weighted) average price of basic commodities being
promoted during the current month vs base month in hypermarket channel. The base month (where the index is 100%)
is January 2013.
Commodity products included in the calculation of Promotion Price Index are as follow:
• Breeze Excel 1 bag 2700 g
• Dumex Dumilk 3 Complete Care 1 bag 900 g
• NesCafe 3in1 Rich Aroma 1 pack 40 bags 19.4 g
• Fresh pork rump 1 kg
• Ovaltine 3in1 1 pack 20 bags 35 g
• Bencharong Sao Hai rice 100% 1 bag 5 kg
• Coca-Cola 1 pack 6 cans 325 ml
• Nestle Pure Life drink water 1 pack 12 bottles 600 ml
• Lactasoy 1 pack 6 brinks 250 ml
• Fresh Kaew Mungkorn (Dragon fruit) 1 kg
• Morakot Palm Oil 1 bottle 1,000 ml
Hit Products : Show 4 most promoted SKUs during the reporting month in the selected category during the period of
reporting month from all retailers.
Consumer Advantages : The ratio percentage of number of promotion items in the selected category that come with
Promotion Mechanics in comparison to number of total promotion items in the same category (including promotion
that does not contain promotion mechanics such as “New”). Also show the change of this same figures vis a vis the
figures in the same month of last year.
Calendar : Show how frequent the items in the selected category is promoted along the last 12 months. The color
codes in the Calendar are defined as follow;
Green The months that have more number of promotion items in comparison to the last 12 months. Blue The months that have average number of promotion items in comparison to the last 12 months. Red The months that have less number of promotion items in comparison to the last 12 months. Gray The months that have no promotion item.
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