How Canadians Shop

Shopper Marketing Headcount

2

Source: 2008 GMA/Deloitte Shopper Marketing Study

Demographics is Destiny

3

Aging Canadian population

4

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036

2006

0-14

65+

Percentage of Population

Not good news for retailers

5

Annual # of

General

Stock-Up

Trips

Annual # of

Quick trips

Total annual

$ spent on

grocery

shopping

Single adult, no kids 26 68 $4,490

2+ adults, <49, no kids 35 74 $6,625

1+ adult(s), w/kids 38 77 $9,200

2+ adults, 50+, no kids 38 68 $7,100

Source: Environics’ Mental World of the Shopper, 2008

Population Increase from Immigration

6

-200

-100

0

100

200

300

400

500

1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051

Years

Thousa

nds

of pers

ons

Net Migration

Natural Increase

Observed Projected

Household Structure

7

Couples with

children

29%

Lone parent

families

9%

Couples without

children

25%

Other

10%

One person

27%

Source: Statistics Canada, Census of Population, 2006.

Shopping Responsibility

Single Male HH13%

Single female HH13%

Male Primary Grocery Shopper

14%Female Primary Grocery Shopper

35%

Shared Responsibility

38%

SingleHouseholds

8

Multiple Households

TRIP TYPES: Dynamic Segmentation

9

The Basic Trip Types

10

Source: Environics’ Mental World of the Shopper, 2008

The Basic Trip Types – By $ Value

11

Basic Trip Types by Region

12

125 137 137 Total Household

Trips Per Year

Base: West: N=507, Ontario N=634, Quebec=387, Atlantic=98

Change in frequency of trip types over last 6 months

13

LESS

Base: Went on trip in past 4 weeks – Quick Trip N=1314, General Stock Up Trip N=1390, Emergency Trip N=469, Personal Care Trip N=518

14%

18%

10%

11%

MORE

Quick Trips

General Stock Up Trips

Emergency Trips

Personal Care Trips 5%

10%

4%

13%

Who is the Shopper? – presence of children

15

Base: N= 1626 (Total Sample)

General Stock Up

Trip 27%

Emergency Trip 12%

Personal Care Trip 7%

Quick Trip 54%

Without kids49%

With kids5%

Without kids23%

With kids 4%

With kids2%Without

kids 6%

1%

With kids

What is the Mission? - General Stock Up Motivations

16

Base: N=1626 (Total Sample)

General Stock Up Trip

27%

Emergency Trip 12%

Personal Care Trip

7%

Quick Trip 54%

Non-Perishable Items Only

2%

Perishable Items Only

8%

CombinedItems 17%

17


General Stock Up

Trip 27%

Emergency Trip 12%


Quick Trip 54%

Regularly scheduled

6%

Sale/Promotion

3%

IngredientsGrab17%

Ran Out23%

What is the mission?

19


General Stock Up

Trip 27%

Emergency Trip 12%


Quick Trip 54%

Male without partner

25%

Female without partner

22%

Joint Trip7%

Regular Trip4%

Sale2%

IngredientsGrab9%

Out of Staples10%

Other1%

What is the Mission?

Segmenting trips to meet objectives

20


General Stock Up

Trip 27%

Emergency Trip 12%


Quick Trip 54%

11 am or Before

9%

After 11 am45%

Emergency

Trip

12%

The Emergency Trip

21

Time in Store: 14 minutes$ Spent: $16Time: Wednesday AfternoonSatisfaction: High

Need State:

Ingredients grabRan of out specific items

Key Trigger Items:

Milk 48%Bread / baked goods 30%Fresh fruit/vegetables 30%Meat 16%Other dairy 15%Pop / soft drinks 12%

The Personal Care Trip

22

Time in Store: 23 minutes$ Spent: $40Time: Wednesday Evening / Saturday MiddaySatisfaction: High

Need State:

Ran out of specific item(s)A regularly scheduled trip

Key Trigger Items:

Shampoo / Conditioner 45%Prescription Medicine 36%Toothpaste 34%Shaving Products 28%Anti-Perspirant / Deodorant 27%Over-the-counter Medicine 20%

Personal Care

Trip

7%

The Quick Trip – Male, Without Partner, Ingredients Grab

24

Time in Store: 17 minutes$ Spent: $25Time: Tuesday, Thursday, Sunday AfternoonsSatisfaction: High

Key Trigger Items:

Bread / baked goods 44%Meat 44%Milk 41%Fresh fruit and vegetables 35%Pop / soft drinks 20%Other dairy 19%

Male, without Partner, Ingredie

nts Grab9%

Net Channel Performance

5057 61

53 54

1112

1113 14

1915 11 18 16

4 2 1 2 39 5 4 5 84 7 9 7 51 2 3 2 1

TOTAL: All Trip

Types

Total Quick

Trips

Male, Without

Partner

Female,

Without

Partner

Joint

Other

Convenience Stores

Drug Stores

Club / Warehouse Stores

General Merchandise Stores

Discount Grocery Stores

Regular Grocery Stores

30

Base: Total N=1620, Total Quick Trips N=623, Male Without Partner N=246, Female Without Partner N=242, Joint N=135

Quick Trips(by who goes on trip)


50 54 54

30

56

1113 11

18

1419

22 21

35

214

8 1011

79

1 1 214 1 0 2 11 1 2 2 1

TOTAL: All Trip

Types

Total General

Stock Up Trips

Fresh Items Non-Perishable

Items

Both Fresh &

Non-Perishable

Items

Other

Convenience Stores

Drug Stores





31

General Stock Up Trips(by trip motivator)

Base: Total N=1620, Total General Stock Up Trips N=707, Fresh Items N=454, Non-Perishable Items N=51, Both N=202


32

Base: Total N=1620, Emergency Trips N=136, Personal Care Trips N=154

50 52

9

11 6

0

1917

26

4

2

9

9

62

415

11 2 1

0

TOTAL: All Trip Types Emergency Trips Personal Care Trips

Other

Convenience Stores

Drug Stores



Discount Stores


Emergency

Trips

Personal

Care Trips

TOTAL

CANADA

%

Male,

Without

Partner

Female,

Without

Partner Joint Fresh Items

Non-

Perishable

Items

Both Fresh &

Non-

Perishable

Items Total Total

IGA 8

Sobeys 7

Safeway 6

No Frills 5

Loblaws 4

Food Basics 4

A local independent grocery store 4

Metro 3

Real Canadian Superstore 8

Wal-Mart 7

Costco 4

Shopper’s Drug Mart / Pharmaprix 5

GENERAL MERCHANDISE / SUPERSTORES

CLUB / WAREHOUSE STORES

DRUG STORES

INDEX

Quick Trips General Stock Up Trips

GROCERY STORES

Channel Performance (Store Primarily Shopped At)

33

Total Canada

Base: Total N=1620, Male Without Partner N=246, Female Without Partner N=242, Joint N=135, Fresh Items N=454, Non-Perishable Items N=51, Both N=202, Emergency Trips N=136, Personal Care Trips N=154

= Over indexed

= Under indexed

Channel Conversion by Trip Type (Considered and Used)

34

Base: Quick Trips N=623, General Stock Up Fresh Items N=202, General Stock Up Non-Perishable Items N=51, General Stock Up Fresh & Non-Perishable Items N=454, Emergency Trips N=136, Personal Care Trips N=154

37%

21%

36%

23%

19%

8%

19%

30%

19%

11%

PERSONAL

CARE TRIPS

Fresh & Non-

Perishable

Items

Non-

Perishable

Items Only

Fresh Items

Only

QUICK TRIPS

GENERAL STOCK UP

TRIPS

44%

31%

65%

20%

59%

49%

64%

18%

51%

51%

Store ConsideredConversion

RateStore Used

19%

4%

18%

5%

6%

4%

12%

18%

12%

5%

= Real Canadian Superstore

= Wal-Mart

Considered Wal~Mart for Personal Care Trip. Shopped At….Shopper’s Drug Mart / Pharmaprix 52%Real Canadian Superstore 10%Pharma Plus / Rexall Pharma Plus 7%Other drug store 7%Safeway 6%

Triggering Conversion from Consideration to Usage

Real Canadian Superstore

Is less expensive than other stores

Cares about my needs

Fits my style

Is easy to shop inChanges to meet the needs of today’s shoppers

I feel good after shopping in this store

Is fun to shop inI trust that they are giving me the best deals

Wal~Mart

Products are easy to find in the store

Is open at convenient hours of the day

Fits my style

The aisles are easy to navigate

Is less expensive than other stores

Is easy to shop in with kids

Items I am looking for are always in-stock

35

Communication

36

Checking Flyers before Last Trip

37

Male Female

Checked Online

4% 12% 5% 6% 10% 7% 9% 6%

Checking Flyers by Trip Type

38

General Stock Up Trip

Personal Care Trip

Quick Trip

38%

44%

65%

69%

53%

CombinedItems

Perishable Items Only

Non-Perishable Items Only

% Who checked the flyer and shopped the store ….

39

How do you feel?

40

Emotional benefits by trip type

41

I felt rushed because I had limited time

I enjoyed the peace and quiet of shopping by myself

I enjoyed spending time with my spouse / partner

I enjoyed spending time with my child / children

I liked looking for new products in the store

I felt like I was doing something good for my family

I had fun picking out treats for myself

I managed to accomplish a lot while shopping

I felt relieved that one of my chores was complete

It cheered me upFresh Items only

Non-Perishables only

Both Fresh & Non-Fresh Items

Projector

Emotional benefits by channel

42









I took pleasure in choosing items needed for an event / occasion

It cheered me up





Projector

Emotional benefits by banner

43




I enjoyed spending time with my child / children







It cheered me up

IGA

No Frills

SafewaySobeys

Real Canadian Superstore

Wal-Mart

Costco

Projector

Emotional benefits by social values

44






I had fun picking out treats for myselfI managed to accomplish a lot while shopping



It cheered me up

Anxious Materialists

Traditionalists

Established

Modern Middle Class

Adaptive Achievers

Liberal Progressives

Projector

Drivers of Satisfaction

45

Drivers of Satisfaction

46

47

The Path to Purchase

The Purchase Process

Brand Commitment

Category Involvement

Purchase?


Brand Commitment


Purchase

Trip Type

Value

Shopper Involvement

Impulsivity

Shopper Involvement

Enjoyment of the process

Social involvement

Length of time at the shelf

Innovation seeking


Brand Commitment


Purchase

Loss

Risk GainShopper

Involvement

Gain Value

Impulsivity

Trip Type

The Purchase Process: Potato Chips

Brand Commitment


Purchase


Brand Commitment


Purchase

Loss Gain Value


Brand Commitment


Purchase

Loss

Risk GainShopper

Involvement

Gain Value


Brand Commitment


Purchase

Loss

Risk GainShopper

Involvement

Gain Value

Impulsivity

Fun to shopBenefit seekingDetached

The Purchase Process: Frozen Meals

Brand Commitment


Purchase

Loss

Risk Gain

Gain Value

Impulsivity

Information seekingLoss avoidanceLow enjoyment

Shopper

Involvement

The Purchase Process: Laundry

Brand Commitment


Purchase

Loss

Risk Gain

Gain Value

Impulsivity

Trip TriggerDiscount Hunting within Brand

Shopper

Involvement

59

• Demographics is Destiny

• Trip Types: Dynamic segmentation to meet objectives

• Emotional needs vary by values and by trip type

• Path to purchase: In store understanding needs new metrics

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How Canadians Shop

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