The Way of Shopper Marketing Classified - Internal use

How PITA Drives Retailer Growth Potential: A Publix Beverage Opportunity

Jack Conter - Director, Tools & Capabilities,

Category Management

Info.shoppermarketing@coca-cola.com

Driving Retailer Growth Potential with

PITA

Prepared by: Jack ConterJuly 12, 2013

(Publix Beverage Opportunity Example)

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How can we help Retailers influence shopper behavior in store and capture growth potential?

Focusing on foundational shopper behavior: • Metrics

• Drivers

• Influencers

“It all begins with the Shopper”

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Often times we are asked by Retailers to help achieve total store and category growth potential

• How can we bring in more shoppers?• How can we increase trip frequency?• How can increase basket size?• Are they buying the beverage category?• What and how much do they buy?• How loyal are shoppers to a Retailer?• Is the Retailer capturing their fair share of

shopper beverage needs?• How can we convert more shoppers into

buyers?

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Understanding the growth potential at Publix begins with foundational shopper behavior

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Foundational shopper behavior can be measured with PITA

Projected household

Shoppers in a Retailer’s stores

% of Retailer’s Shoppers who purchased the

measured item in the latest 52

weeks?

How frequently did the Retailer’s

shoppers purchase the measured item

in the latest 52 weeks

How much was the average measured item purchase by

the Retailer’s shoppers in the latest 52 weeks

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Nielsen Homescan provides the source for PITA foundational shopper metrics

Nielsen National Account Shopper Template

Nielsen National Account Shopper TemplateFact Definitions

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Let’s use PITA to understand the Publix current situation for total measured sales

119,281 100.0% 158.7

MEASUREMENT Total Store All

UPC Coded Products

$39.15

85,359 100.0% 20.8 $55.12

21,839 100.0% 30.5 $41.00

Total Outlets

13,471 100.0% 23.2 $36.54

12,763 100.0% 33.9 $39.66

Source: Nielsen Homescan 52 weeks ending Q1, 2013

Publix delivers the highest Total Store transactions that are enhanced with trip dollars on par with the national competitive set

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What is the Publix current situation for the Beverage Category?

119,281 99.7% 46.6

MEASUREMENT Total Beverages

$8.09

85,359 75.8% 10.6 $7.48

21,839 90.3% 17.6 $9.07

Total Outlets

13,471 82.8% 13.6 $9.41

12,763 89.0% 18.8 $8.45

Source: Nielsen Homescan 52 weeks ending Q1, 2013

Publix still drives the highest Total Beverage transactions mixed with trip dollars that are close to par with the national competitive set

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What is the Total Carbonated Soft Drinks (SSD) current situation at Publix?

119,281 94.3% 21.5

MEASUREMENT Total Carbonated

Soft Dinks SSD

$6.47

85,359 53.0% 7.0 $5.81

21,839 75.7% 10.4 $7.61

Total Outlets

13,471 63.3% 7.7 $7.66

12,763 69.9% 8.9 $6.55

Source: Nielsen Homescan 52 weeks ending Q1, 2013

A SSD opportunity for Publix emerges with Trip Frequency and Transaction size versus the national competitive set

What is the math behind PITA?Publix Total US - SSD Category Example

Source: Nielsen Homescan 52 weeks ending Q1, 2013

12,763

8,923 / 12,763 = 69.9%

12,081 Buy Carbonated Soft Dinks SSD somewhere682 Do not buy Carbonated Soft Dinks SSD

8,923 Buy Carbonated Soft Dinks SSD at Publix

3,158 Buy Carbonated Soft Dinks SSD, but not at Publix

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Publix Total US - SSD Category Example

Source: Nielsen Homescan 52 weeks ending Q1, 2013

406,406

79,246 / 8,923 = 8.9

# of Trips where Carbonated Soft Dinks SSD were purchased

Total # of Publix Trips by Carbonated Soft Dinks SSD Buyers (000’s)

327,160

79,246

# of Trips where Carbonated Soft Dinks SSD were not purchased

8,923 # of Households buying Carbonated Soft Dinks SSD at Publix

$518,598

$518,598 / 79,246 = $6.55

What is the math behind PITA?

Total Dollars paid for Carbonated Soft Dinks SSD at Publix ($000’s)

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What are the drivers we can use to influence these foundational PITA shopper metrics?

Buyer ConversionItem Buyers / Retail Shoppers = Buyer Conversion

Item Buyers:Of those 30 shoppers,

20 actually buy the measured item in the

Retailer

Retailer Shoppers:30 shoppers who buy the

measured item and shop at the Retailer, although they may not have purchased the measured item in the

Retailer

A Shopper only has to buy the category once in a year to be considered converted!

Buyer Conversion:The 67% of shoppers who buy

the measured item in the Retailer are known as Buyer

Conversion (20/30= 67%)

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Trip ConversionItem Trips / Retail Trips = Trip Conversion

Retailer Trips:10 shopping trips made by

measured item buyers in the Retailer, although they may not have purchased the measured

item in the Retailer

Item Trips:Of those 10 shopping trips, 3 trips included the purchase of the measured item in

Retailer

Trip Conversion:The 30% of shopping trips

by the measured item buyers who buy the

measured item in the Retailer are known as

Trip Conversion(3/10 = 30%)

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Buying Rate (Item $ per Item Buyer)Total Outlets - Total Beverages example

Purchase Frequency:Average number of shopping trips (purchase occasions) on which the measured item was

purchased in the Retailer (46.7)

Buying Rate:Annual measured item $

spent per Household.(46.7 x $8.09 = $377.60)

Purchase Size:Average measured item

$ per Shopping Trip in the Retailer

($8.09)

X $8.09 =

Source: Nielsen Homescan17

What are the drivers to influence a Retailer’s PITAPublix Total US - SSD Category Example

Buyer ConversionWhat % of SSD

Shoppers buy the SSD Category at Publix

73.9%

Item BuyersHow many SSD Category Shoppers buy at Publix

(000’s)8,923

Retailer ShoppersHow many SSD

Category Shoppers buy anywhere (000’s)

12,081

÷

Trip ConversionWhat % of Publix Trips

include the SSD Category

19.5%

Item TripsHow many Publix trips

included the SSD Category purchase (000’s)

79,246

Retailer TripsHow many Publix trips

did SSD Category Buyers make (000’s)

406,406

÷

X

Buying RateHow much the Publix Shopper spends on the SSD Category

each year$58.14

Purchase FrequencyHow often they buy the SSD Category in Publix

8.9

Purchase SizeHow much they spend

each Publix trip they buy the SSD Category

$6.55Source: Nielsen Homescan 52 weeks ending Q1, 2013 18

Shopper Behavior InfluencersBOGOS, Advertising, Bonus Packs,

Bundling, IC Coolers, Coupons, Displays, Messaging, Point of

Influence, POS, Promotions, Weekly Circulars, TPR’s, and special coupon

offers

Shopping behavior influencers are the driving levers

12,763 69.9% 8.9SSD Category $6.55Buyer Conversion

What % of SSD Shoppers buy the SSD

Category at Publix73.9%

Buying RateHow much the Publix

Shopper spends on the SSD Category each year

$58.14

Source: Nielsen Homescan 52 weeks ending Q1, 2013

Publix Total US - SSD Example

Trip ConversionWhat % of Publix Trips

include the SSD Category

19.5%

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The Way of Shopper Marketing Classified - Internal use

THANK YOUFor additional information please visit the Shopper/Customer Marketing

Community at www.KOSCMarketing.com