Italian grocery overview & focus on inCOOP stores
-
Upload
alessandro-pintore -
Category
Marketing
-
view
129 -
download
3
Transcript of Italian grocery overview & focus on inCOOP stores
Trade Marketingproject
Italian grocery overview & focus on inCOOP stores
Summary• Italian Grocery overall situation
• Retailer analysis
• Category analysis
• Shelf analysis
• Retailer marketing tools analysis
• New ideas for category improvements
Economic trend
• Strong italian crisis in 2012-2013
period.
• Collapse of growth economic tax.
• The depth and the lenght of the crisis have
shoked italian families lifestyles, making
citizens more and more poor and iniqual.
• The families’ salary evolution shows, in a few
years, a reduction of 10% in real terms.
• Today 3 millions of italians are in a situation
of poorness, that is a social phenomenon
that influence the possibility to have an
adequate diet.
The worst postwar crisis obligate families to search savings in every need’s dimensions,
keeping unvaried only the indispensable purchases.
The receipt of this constant research for saving have been:
Today situation
1/2 Italians buy only the essential through promotions and offers
1/3 have simply reduced the quantity purchased
• Commercial
nomadism
• Promotions hunting
• Brand’s loyalty
reduction
• Private label
products
• First priceproducts
• Discount boom
• Cheaper product’s sectors
• Renounce to not essential
purchases
Afterthought of lifestyles
Stopping consumerism
excesses
Main driver in DPM:SAVINGS
Innovation in customer’s purchasing
behavior
• Attention to wastefullness
• Just-in time purchase
• Information research on internet
Italians who goes to distributor websites to check promotions: 50%.
Success of Social Media pages about
• doing groceries
• private label
• savings opportunity using the
electronic flier
Consumer 2.0Innovation pulled by crisis
Turnover 57 € Billion in 2012, with a negative trend (- 0,4%) compared to 2011.
Infra channel performances
Polarization of purchasing
behavior
Ready meals negative trend
Preparation of food at home
positive trend
Products with the greatest
growth trend:
Fresh packaged products
Meat
Cheese & salami
CPGConsumer Packaged Goods
Coop has made ethics a cornerstone of his enterprise system: in
fact, since December 1998 was the first European company to have
obtained the SA 8000 Certification.
The brand include all consumer’s cooperatives associated
with Coop Italia.
Stores are mainly diffused in North and
Centre of Italy,
but increasing in South and Islands.
The
biggest
cooperati
ves
Market leaderin the Italian wide
organized
distribution
13,1 B
16 Regions
56’900
7,7 mln
115
1’474
Coop ItaliaPerformance highlights
18,4 %
Coop AdriaticaPerformance highlights
18 ipercoop
158
supermarket
s
Emilia-
Romagna
Marche
Veneto
Abruzzo
High quality and premium price (especially InCoop and regional FiorFiore
Convenient store (time and location)
High focus on Private label (account for 30 % of all private label
sold in Italy)
Differences within private label (FiorFiore vs MonetaCheRide
Higher end, not many promotions if any
Main customers of InCoop are older/families, young professionals
More money to spend, no need for extra promotions
Often used to quick, last minute buys, people willing to spend that little bit more instead of going
all the way out of town for better deals
• Smaller:
Up to 1000 sqm
Convenience Stores
InCoop
• Small with base products, a
reasonably wide assortment with
most essential goods available.
Very few specific, specialised
products
• Large amount of Private Label
products
• Quick shopping
inCoopStore Format
Concept stores
Tutto Coop Solo Food in Parma sells only Private
Label
Stai Bene Coop in Bologna focussed on benessere
Le delizie di Coop Centro Italia in Perugia focused on
inCoopOrganisation and Store layout
Division’s Scenario
Since 2000, the category has evolved into combining high quality standards and product
innovation with "convenience“.
Increase of ready sauces compared to the past: the same data shows us that even the
national brand offer remains stable, with at least 70% of the market share. Today this data
must deal with the constant growth of the store brand, which has approximately 20% of the
market share.
Focusing just on service is no longer enough: in the future, quality and innovation will be
very important as positioning in the gastronomic area.
Since 2007 the value has increased by an average of 4%
per year
The category trend which is shifting towards pesto and
white sauces at the expense of tomato-based sauces has
been stable in recent years.
Even if today the consumer has a larger range of choice
in terms of ready made dishes, the idea of a plate of
pasta still seems to represent one of the best solutions
for Italian people.
Confidence in the brand is key factor.
The desire for a different flavor can push the
impulse purchase
Consumers Profile
Penetration of the families is estimated to be 55%
57% of the volumes are purchased in the North of Italy. South
it is still very low
Life styles
Saving
timePurchase Value
and Areas
149 Northwest
140 Northeast
85 Centre and
Sardinia
46 South and Sicily
Target
Penetration
Choice’sparameters
In order to drive down the price of staple
foods
and develop its group identity
Coop Private Label
Students
Housewif
es
Workers
Jarred pasta saucetarget
Perceived Quality
Security
Ethic
Ecologic
Economic
Brand products needs to meet some requirements and fulfil
the following values
Why?
As we can see from the comments, the costumer feels secure and trusty of the Coop brand,and can use the product of other specifications.
Positive web feedbacks
The time is a very important variable for the worker cluster, they want to eat a good first meal in less time possible
Positive web feedbacks
Coop soucesCategory segmentation
Segmantation
Targeting
Expectations
Need & Use
Food
Workers
Cooking
Save time
Conservedgoods
Students
Recipes
Goodquality
Condimentsand saucesfor pasta
People not ableto cook a home
made sauce
Condiments
Affordableprice
Pre cookedsauces high conservation
Middle classpeople and
looking for a quick meal
Coop souces – Decision Making Tree
USE• Cooking• Condiment
1
2
4
3
5
7
6
9
8
10
TYPE OF SAUCE• Fresh• Ready to eat
PRICE < €2,50• Yes• No
PACKAGING FORMAT• Tetra Pack / Jar confection• Small/ Medium/ Large
TASTE• Light• Heavy
VEGETARIAN• Yes• No
MEAT• Yes• No
PROMOTION• Yes• No
RAW MATERIALS ORIGIN• Region A• Region B
PRODUCT PROCESSES• Industrial• Handcraft
A growing trend:Fior Fiore
Premium qualitative standard
Higher price than average
Superior idea of quality than the top
leaders products
PrivateLabel
Products
Availablein everyRetailCOOP
+ 280products
Fior Fiore +15%
Customers interested more in quality!
Organic products +20%
Origin
Traceabil
ity Social
Media
A main target customer for Fior Fiore
products are the foodies that are mostly
young and increasing, and they interested in
high quality food, but their goal is always the
families.
Overall idea of the
quality
The Barilla bolognese sauce - second in
market share with 4,8% - is the most
distribted with 92% of retailers in Italy.
Its average price per unit (with no promo) is
2€.
Tomato saucesCategory overview
MS: 34,3 %
Awd:
74,3%
8 on 10 firsts brands
Granragu Star -
26%Mutti
+345%
AVERAGE PRICE of branded tamato sauces varies from
€1.77(with promo) and €1.99,
lower of a 10% of prices found inside Incoop.The registered RANGE of all branded
sauces is from €0,92 to €4
The average PROMOTIONALINTENSITYof branded tomato sauces is 31,4%, with
a range between 6,3% and 66%,
far from the very low promotion leverage found inside InCoop.
The price of the sauce
inside inCoop is 10% more
of that mean (2,20€).
Shelf analysis
Consumer goal
orientation
Brand familiarity
Retail shelf displayShelf
segmentation
Category
segmentation
on the shelf
Ready madesoups
Ready madesauces
Cous cousMaccaroni salad
Rice salad
Rice
Brands
Brands packaging
Size
Type of sauce
Price
Product assortement
Product Label products
Tetra Pack
• Sugo al basilico• Ragù di carne alla
bolognese• Alle olive• All’arrabbiata• Pomodoro e ricotta
Vendor : Columbus Srl
Jar
• Sugo VongoleVendor: Le Bontà Srl.
• Pesto Rosso sicilianoVendor: linea Fiorfiore
Competitors (Jar)
Sapori del Borgo
Condimento pasta sarde
Barilla
AmatricianaOlive
Ragù bolognese Arrabbiata
Basilico Pesto Siciliana
Genovese
Tigullio
Pesto genovese 190g Pesto genovese senza aglio
Saclà
PestoContadina
De Cecco
Ragù Bolognese
Negotiation Power:Retailer vs Regional/ National/ International Brands
Basilico Basilico /
1,06 € - 100 1,81 € - 171 /
Ragù Bolognese Ragù Bolognese Ragù Bolognese
1,47 € - 100 2,20 € - 150 2,70€ - 184
Arrabbiata Arrabbiata /
1,06 € - 100 1,81 € - 171 /
Olive Olive /
1,35 € - 100 1,98 € - 147 /
CoopTetra pack 390g
Barilla Glass400g
DeCecco Glass400g
Coop Glass FiorFiore line 180g Barilla Glass 190g
Pesto alla siciliana Pesto alla siciliana
3,90€ - 100 2,21€ - 57
Price range
Private Label Analysis
Values of COOP private label products
• Convenience
• High quality
• Safety
• Ethicality
• Sustainability
• The basket “ready”of private
lable product is increaingly taking
a greater portion of the market.
• Particularly the consumpion of
ready made souces, with a coop
brand, in the last year, appears
to be increased by more than
7%.
• Excellence
• High quality
• Passion
• Selection of the best raw
material
• High machining quality
• Revival of tradition in a
modern key interpretation
Very good quality/
price ratio
Coop Private Label
sauces, in Tetrapack
• huge assortment ( six
proposals)
• cheap price
• target : price seeker
“Fiorfiore” line products
• medium range of assorment
( 4 proposals)
• high price
• target : wealthy people who
are looking for the highest
quality
pesto genovese
Sugo alla norma
ragù carne chianina
pesto rosso siciliano
4
varieti
es
Private Label AnalysisSuccess Key Factors
Avoid
CANNIBALIZATION
using different
positioning
Space Location
Loose visibility
Loose the push to purchase created by pasta
the impulse purchase
Comparing two different retailers InCoop
in Bologna we can confirm that
• Relatively standardized assortement
• Similar display
• Similar shelf allocation
Near to the pasta shelf
Near to the pureed
tomatoes shelf
or
Souces category located in the middle of the store, before entering in aarea dedited to fresh food, meats and cheese counted, yogurt and dairyproducts.
Mostly located in front of the “pureed tomatoes” shelfOn the right of the pasta’s shelf
Traditional media
• Coop, as a very structured and complex retailer, has a differenciated
promotion strategy based on the territory, with different fliers on single
areas. inCoop presents different flyers on single stores.
• Special events are rarely set on inCoop stores, maybe because of their
corner structure. Something special during inaugurations. Coop in general
instead use to promote a lot events, in general focus on habits and
informations. (‘Mi illumino di meno’, environment lectures, ‘L’educazione al
consumo consapevole’, ecc…)
• Loyalty card ‘socio coop’ is often used to guarantee extra discounts in-store,
rewards after the collection of a fixed amount of expence and also discounts
in other places like cinemas or libraries.
• Coop magazines (InCoop, NuovoConsumo, CoopInforma, CON) are
delivered for free to coop associates, with focus on editorials about the
cooperative, sostainibility of products, events, purchaise suggestions and
advices.
Promotions
• InCoop, as convenient store, normally uses less the promotion leverage to attract
clients.
• InCoop, considering the ‘not wide’ assortment, can hardly promote a massive
discount selection.
• Sauces are promoted more in other Coop channels like IperCoop and Coop, but still
you can find some occasional promotions also inside InCoop (ex: ‘Passata di
pomodoro Cirio’, 30% discount)
• SocioCoop card is often used to garantee to affiliates of the cooperative some
exclusive discount, also in the category. (Sughi ricchi Barilla, 30% disc.)
• Incremental discount are sometimes used to push bigger voulmes of sales inside
inCoop, trying to simulate a double-channel strategy. (‘Più ne compri più li sconti’,
inCoop Firenze)
• Coop gives the chance to select a limited number of product where you can apply
discounts, building a customized promotion offer. (30% of discount on 2 products)
Advertising
• Coop Tv and outdoor ADV push strongly on environmental respect and try
to position the Coop brand as a premium one in term of quality. Both
emotional and informational spots are often used with well known
testimonials.
• On Youtube channel spots about tradition and family values are present to
communicate an identity of the brand related to the territory and to add
value to new categories of bio category of private lable.
• The payoff ‘La Coop sei tu’ used in spots try to enfisize the association
structure of this retailer, very close to their customers… However this
solution has created a communication crisis few months ago, with workers
who builded a counter-spot to complain about their low salaries.
• Flyers are often used for promotions, focusing on products instead of brand
image.
New Media
• Coop website is used mainly for institutional communication, events and
new product lines promotion (like club 4/10). However an e-commerce
website has been added, but only for non-food product.
• Blog like ‘La cucina di casa Coop’ shares recipies divided by categories that
can be rated by customers.
• Coop uses Facebook managing different pages for their sub-structures
(coop Adriatica) or areas (coop Lombardia) or particoular categories
(Fiorfiore PL) with suggestion, recepes and products.
• Twitter on the other hand is used on more institutional way, with official
Coop Italia page, also here with different kind con contents (reports, events,
promotions, announcments, ecc…).
• Youtube, as previously seen, is widley used to communicate the brand
identity of coop. To be linked to the respect of territory and people
strenghten the idea of the cooperative.
• On mobile side coop is really active, with different applications: Coop
Supercard, Coop@home, Coop Hello Family.
Foodies, people who want to be creative with their food
and who recognise quality.
People with some money to spend:
• Among older people, who can also interact
with the “gastronomy guy”.
• Young professionals, something nice and
quick.
Category improvementProposal
• Move sauces to the gastronomy area and rotate.
– Include a small description of the product, and
provide alternatives of use and recipes for the
customer through the gastronomy employee.
• Mainly FiorFiore because it is related to the brand image
of coop.
Target(
s)
..
more!
Proposal
Introduce to InCoop store a wider assortment of regional sauces with private
lable FiorFiore, strenghtening the actual Coop branding strategy with a more
accurate communication and positioning plan of this high-end/premium price
PL.
Give to local producers or enterprises who find hard to
position their products the chance to sell their sauces
with Private Label brand.
Category improvementProducts & Services
New
Products
Services
Gastronomy Employee can
• Give information on products
• Provide feedback
• Provide suggestions for usage (ie. Other than
pasta)
• Recipe next to the shelf.
Unique sauces strongly linked and tradition to a particular region.
Already using what the brand is trying but expanding the range of
different regional delicacies..
Explore a wider range of sauces flavours to understand if some market segment has not completely
reached his maturity and fulfil it with new products.
Could eventually put some other FiorFiore products on the shelf, if it is related to the
product and/or recipe we are suggesting.
Push a particular sauce related to the region in which it is being sold.
Interchange recipes with the extra FiorFiore products once every two weeks.
We can therefore differentiate small shelves by region.
Would be good if synced across Italy on FB for information, but can still be divided by
Category improvementSocial Media
Social media campaign about Fiorfiore products exists, but the shelf
positioning can be improved.
This would make it again more engaging for the customer.
Social Media
Add feature to already existing apps or create new app which informs
you which sauce is available at your nearest InCoop though geo-
localisation.
If Geo-localisation is off:
– When installing app, you can put in your area of residence and
when there is a new offer it sends the new sauce and the page of
recipe suggestions to the person.
The offers can also be accessed through Facebook.
Category improvementNew Media Development
Get people to post pictures of how they used
the sauces on Pinterest, promoting the contest
via Facebook FiorFiore page and reward
winners with Coop coupons.
Regional Challange: have different sauces in
different areas and then make a challenge
between the two.
Whoever wins gets the sauce on the
Category improvementNew Media Development
Buying the product + having the app, 10%
discount
Rating sauce after purchase, another 10% off
the next time.
A QR code can be used on the jar to scan it
immediately with the app and guarantee an
immediate and time-saving rating procedure.
– Can be applied to any particular label with a
premium price.