Post on 20-Jun-2015
Non-food as a business Non-food as a business
engine engine
in Food retailin Food retail
Stephen Schueler Procter and Gamble
4 Feb 2011
Who wants to increase your market
share?
What determines your ability to drive market
share?
YOUR SHOPPER!
Top drivers to increase your market
share:
Attract NewShoppers
Attract NewShoppers
Build Loyalty of Existing Shoppers
Build Loyalty of Existing Shoppers
Win with High Spenders
Win with High Spenders
WHY NON-FOOD CATEGORIES WHY NON-FOOD CATEGORIES
ARE IMPORTANT TO WIN ARE IMPORTANT TO WIN
WITH SHOPPERS?WITH SHOPPERS?
1.Non-Food has strong potential with
your existing shoppers
food
Dairy 59
Juice 49
Cheese 44
Biscuits 46
non-food
Hand Dish 28
Fem Care 31
Shampoo 32
Dentifrice 34
Size of the prize = 400 mln.$ for HM channel
% of store shoppers buying category in this store (Hypermarkets)
% of store shoppers buying category in this store (Hypermarkets)
2. Non-Food helps shoppers to choose
your store for Bulk Shopping
Bulk shopping Refill shopping
Laundry & Home Care Bakery
Coffee & Tea Milk& Dairy
Shampoo & Shower Fruits & Vegetables
Toilet Paper & Towels Soft drinks& Juices
Fem Care Cheese
Oral Care Fresh Meat & Poultry
Fresh Meat & Poultry Snacks
Cheese Toilet Paper & Towels
Soft drinks & Juices Coffee& Tea
Fruits & Vegetables Oral CareNon-food categories are highlightedNon-food categories are highlighted
Top powerful categories that define shoppers’ satisfaction
by the store:
Value of Bulk trip = 4.7x Value of Refill trip Value of Bulk trip = 4.7x Value of Refill trip
How to leverage non-food to How to leverage non-food to
win Your Shopperwin Your Shopper
Three Business Ideas:1. Improve Shopping
experience in Beauty Care.
2. Leverage Innovation in Non-Food − Attract new Shoppers− Get disproportionate share by
being first with new item.
3. Win with Young Families – Heavy Spenders
… win her man
Importance of Russia
WE
Being attractive to men, %
90 41
Having stylish feminine clothes, %
89 57
She needs to be beautiful to…
1. Russian consumers are “Thirsty for
Beauty”
P&G is committed to develop Beauty business
in Russia• Plays in 12 out of 13 Beauty Categories• Market leader in 5 out of 12• Focus on Category Development to drive
basket size
HAIR CARE EXAMPLE: Conditioners /Treatments – significant growth potential
vs. Shampoo behind increase in penetration and
consumption
• Plays in 12 out of 13 Beauty Categories• Market leader in 5 out of 12• Focus on Category Development to drive
basket size
HAIR CARE EXAMPLE: Conditioners /Treatments – significant growth potential
vs. Shampoo behind increase in penetration and
consumption
45 5288
335
0
50
100
150
200
250
300
350
Penetration CDI
CONDITIONERS
SHAMPOOS
P&G is committed to develop Beauty business
in RussiaHow to capture Conditioner/treatment growth potential:
1. Conditioner/treatment driven innovation
2. Shelving by collection: co-location of Shampoo/Conditioner/Treatments
Beauty Categories will are the most
sensitive to shopping atmosphere and
new innovation• Beauty Department Objective within Food
retailer: Create better Shopping Environment:
• Enjoyable/emotional• Spends more time/ browsing • Trying new things
• Beauty Department Objective within Food retailer:
Create better Shopping Environment:• Enjoyable/emotional• Spends more time/ browsing • Trying new things
2. Attract new shoppers via
innovation
45% of Russian 45% of Russian shoppersshoppers
are experience-driven. This means that they:• enjoy shopping and like shop around before making a purchase;• need a comfortable shopping experience;• are driven by new items.
are experience-driven. This means that they:• enjoy shopping and like shop around before making a purchase;• need a comfortable shopping experience;• are driven by new items.
Non-food suppliers are investing heavily
in TV
creating strong demand for new
productsTop 10 advertisers, GRPs
2009 2010
Food 289 655 311 713
Non-Food 705 404 768 122
1 Procter & Gamble 94 255 121 511
2 Henkel Group 56 036 65 010
3 L'Oreal 74 592 64 457
4 Unilever 57 651 53 005
5 Reckitt Benckiser 48 764 47 458
6 Beeline 26 858 32 665
7 MTS 29 159 27 453
8 Megafon 27 265 25 278
9 Kalina 13 952 21 704
10 Colgate-Palmolive 17 938 21 419
Period: Jan-Dec 30" 18+ Russia
1. In-Store Support – massive in-store communication linked to TV
2. On-line announcement of new product launches/marketing campaigns
Get Disproportionate share of New
Items!
3. Winning with Young FamiliesChild birth is a point of change in values Now baby
is #1, #2 and #3 spending priority
Now she has less time in her new role: =>she visits less stores and shop more in E-commerce
(Intensity Ind=124);
Now she has less time in her new role: =>she visits less stores and shop more in E-commerce
(Intensity Ind=124);
Spending Index Total Russia Modern Trade
Young parents 113 112
Mature parents 120 101
Parents with teenagers 106 94
Families w/o children 121 97
Adults 87 108
Seniors 81 86
Families spend more, especially younger ones… especially in Modern
Trade
GFK, 2009GFK, 2009
Baby Diapers is the biggest category
in moms basket
Moms with 0-36 babies, Shoppers of Hypermarkets
1HY 10, HM shoppers
Moscow
Russia w/o
Moscow
Diapers & Wipes 32,9 42,7
Baby Food 27,3 38,2
Clothes & Shoes 15,7 5,6
Toys 4,9 4,0
Baby Laundry 5,7 4,5
Cosmetics & Hygiene 5,3 3,8
Other 8,1 1,1
GFK, 2009GFK, 2009
• Baby Diapers is the Destination categories for Young Moms • Shoppers Basket is 4x times bigger in case diapers are in
• Baby Diapers is the Destination categories for Young Moms • Shoppers Basket is 4x times bigger in case diapers are in
Total Basket Spending on Baby, % in value
Total Basket Spending on Baby, % in value
Help her in the new role of being a motherPampers Charity program
Partnering with Retailers and leading websites
Pampers Charity programPartnering with Retailers and leading websitesP&G donates 1 vaccine
for UNICEF with every
purchased pack of
Pampers
Communication tools:
- Internet (mail.ru)
- In-Store
Let’s work together to win with your
shopperLeverage top non-food categories to win with your consumer:Bring in New Shoppers:
•Co-Marketing programs (e.g. Pampers Unisef)
•E-media partnership with Manufacturers
Drive Loyalty of Existing Shoppers:•Drive Basket via regimen Beauty Purchases
•Novelties exploitation in-Store;
•Improve Shopping Experience on Beauty
Attract Heavy Spenders•Win with Young Families by leveraging Diapers as destination
category
THANK YOU