The Way of Shopper Marketing Classified - Internal use1

Identifying Shopper Insights

Efrain Rosario- Global Director – Shopper Marketing, Commercial Leadership

info.shoppermarketing@coca-cola.com

Introduction to Shopper Insights

SHELF-SAVVY TOOLS

Tools and resources A suite of global tools exists to identify shopper insights.

High Frequency

Retail Audit Household Panel Brand BeverageBarometer (B )

3

Advanced Analytics

Moderate Frequency

Shop Alongs Point of Purchasematerial testing

Price Elasticity Studies

Low Frequency

MOTOR SONARConsumer Beverage Landscape (CBL)

Customer Transaction & Loyalty Card Data

Primary Research

Secondary Research

HOW Shopper Insights

Each tool addresses core questions.

HOW

Attitudes:

What brands do you prefer? 4 4 4Shopper’s lifestage and lifestyle factors? 4 4 4 4Preparation:

What type of pre-planning? 4 44

4 44How do shoppers decide which store?

Shopping Patterns:

What mission is the shopper on? 444

4How do they navigate the store and time spent? 4

4Is the shopper alone or with others? 4Decision Making:

What are they buying? 4 4 4 44

4 4 44Are they buying on impulse or planned?

How price elastic? 4 4 4What are drivers and barriers for beverages? 4 4 4Consumption:

Who are they shopping for and which occasions? 44

4 44Who is consuming and how? 4

Evaluation:

Will the shopper repeat purchase? 4 4 4

Retail Audit

Pre-

Shop

Durin

g-Sh

opPo

st-S

hop

HHPanel

POS/Loyalty

B3 Shop Along

Pricing Motor Sonar CBL

Shopper Insights

Global Insight Shopper Tools

HOW

SONAR 2.0Shopper Opportunity NeedsAttitude Research

WhatA shopper landscape study that allows us to understand shopping occasions and shoppers across multiple channels—who, what, when, where, why and how they shop

Provides insight into how shoppers use different channels to meet different needs

Provides customer understanding: shopper profiles,strengths and weaknesses, and PITA drivers

OutputShopping missions by shopper profilesRevenue and opportunity maps for channels by shopping missions

Channel and customer profilesCross-category shopping patterns and cross-channel shopping behaviors

Channel/customer imagery

Shopper Insights

Customer Transactional and Loyalty Card DataWhat

Secondary data analysis of existing purchase records

Provides understanding of price and promotion

elasticities,assortment optimization and impact of in-store cross-merchandising

Offers identification of most valuable shoppers and trackstheir behavior

OutputPurchase behavior understanding and shopping decision hierarchy

Adjacencies and basket-level analysis, assortment optimization

Loyalty analytics

Moment of Truth Opportunity ResearchWhat

Detailed within-channel study

Provides understanding of in-store shopper behavior and interaction

Offers insight into impact of merchandising and in-store activation on beverage choice, within a channel

Provides retailer satisfaction with TCCC System

OutputOBPPC architecture understanding based on consumption occasions

Learnings to develop/validate channel level picture of

success Customer collaboration workshops based on

shopperprofiles, shopping missions and shopping behavior

HOW Shopper Insights

Retail Audit (Scan Audit)What

Panel of stores/scanned universe of stores that represent volume off-take of the store universe covered on an ongoing basis

May include information on additional measures like distribution, stock inventory, select point of sale material, other store characteristics

OutputMarket tracking (category performance) and monitoring key business metrics such as volume/value share, distribution, etc.

Market structure (category/brand/pack at geography/ channel level)

Identifies leading indicators (forward share, SOVI, etc.)and tracks key business performance

Shop-Alongs

WhatShopper immersions to see in-store shopping behavior

Offers a mock shopping trip to compare expected

actionswith actual shoppers

Provides interviews with shoppers to ask questions along their shopping journey

OutputFirst-hand qualitative insights that add color and texture to understanding why shoppers do what they do

Used to gather insights or immersion for employees and customers to take off business hat and slide into shopper’s shoes

HOW Shopper Insights

Household Panel (and Home Scan)What

A study that monitors the household purchases of a sample panel which represents the household universe of a given geography

Measurement may be based on “diary” of purchases or items scanned at home after purchase

OutputProvides an ability to track PITA

Offers understanding of closure rate and purchase

frequency Indicates loyalty of shoppers to brands and

retailers

Provides insight into shoppers’ switching behavior

Point of Purchase Materials Pre-TestingWhat

Offers understanding of the interaction of different elements for point of purchase materials

Provides evaluation of different point of purchase materials on how materials “break through the clutter” and drive purchase interest

OutputOffers an optimal combination of point of purchase materialsfor specific brands within an occasion and channel (i.e. what key visual, background and message are the best combination)

Determines which point of purchase materials drive the highest purchase interest

HOW Shopper Insights

Advanced Analytics

WhatBased on secondary analysis of Retail Audit/Household Panel/Scanned Sales Data

Enables interrogation of data at store/customer/basket

level

Used for store-level modeling and opportunity identification

OutputOpportunity identification and market prioritization

Assortment optimization

Share among handlers, price compliance reports, etc.

Pricing Research

WhatUnderstand price elasticities of various brands and packs

Understand trade-offs that shoppers make between

packs,brands and price

Can be based on secondary data (purchase records or stores/households) and/or from primary survey using different pricing research techniques (conjoint, price sensitivity measure, etc.)

OutputPrice elasticity—by brand, pack,

channel Pricing strategy (OBPPC

strategy) Promotion and price

effectiveness

Volume decomposition (baseline vs. pricing/promotion driven)

HOW Shopper Insights

Before investing in Shopper Insights tools, consider capabilities and resources.

HOW

Research Dollars How big is your market’s overall research budget?Ensure that shopper research is given appropriate consideration within the marketing mix

Access to Analytic Resources

Do you have internal resources that can interpret the research?Do you have access to a third party analytic resource?Do available resources have the required skill to interpret the research?

Market Capability Research dollars Access to analytic

resources

Shopper Insights

Some tools are considerably easier to use and less expensive.Contact your local Marketing Strategy & Insight resource to determine the appropriate methodology for your business issue and get additional information on timing and cost.

HOW

Anal

ytic

Re

sour

ces

Research Costs

• POS/ loyalty

High

LowLow High

• Conjoint• Sonar

• POPM• HH Panel

• Shop-Alongs

• Retail/Scan

Shopper Insights