July 2015 Thailand Promotion Index

Jul 2015

Thailand Promotion Index

Contact : Danai K. ([email protected] ; 02 938 2660)

mailto:[email protected]



We turn Store intelligence into Point of Purchase Solutions.

GO TO MARKET INSIGHTS

What Promotion Insights?

What Promotion Data we Capture? The promotion we capture are the number of times a product appears in a brochure, the details of the brochure or Newspaper ads from retailers (date, duration and retailer) as well as the details of the product (brand, category, mechanics, price)

Why this information is important? In less than 2 years, despite the rise of digital retail and social network usage, the number of promotions published every month has more than doubled in Modern Trade, reaching 21,000 products. The frequency keeps growing. It means that Shoppers are increasingly more exposed to brochures and what they see in the mailers or in the Newspaper ads. Consequently, it means that the opportunity to be seen for a Brand in a brochure or a newspaper has become more important, from a shopper impact perspective, than the number of days a product has been in promotion. It also means that the alignment between brochures or Newspaper promotions and in-store

display is becoming critical to capture shoppers’ attention during their Path To Purchase. From a Brand Plan, Joint Business Plan or Category Management perspective, these new metrics become critical Activity Plan to support a Brand Sales & promotion strategy as well as yearly negotiations for Retailers. The risks of ignoring these metrics are to develop a strategy that would not integrate the evolution of the messages shoppers receive.

What about Nielsen? Nielsen data propose another perspective. They link the number of days a product has

been in promotion at a retailer and the impact on POS data. Nielsen data are extremely useful to measure Promotion’s effectiveness and Return on Investment. A3 Retail data focus more on 2 other critical dimensions: • What do shopper see, where and how often: frequency, share of voice, promotion price

index, promotion mechanics • What are the levels of promotion investments from retailers or manufacturers in specific

categories and channels



Executive Summary: Jul 2015

☑ Thailand Promotion Index1

After 2 months of decreasing promotion, promotion activities in Jul ‘15 started to heat up again, increasing from 126% in Jun ‘15 to 158% in Jul ‘15. The increase was mainly driven by 3 key channels: Hyper, Super and CVS, while Wholesales slightly slowed down their promotion efforts from previous month.

☑ Promotion Price Index2

This month, we introduce a new measure, Promotion Price Index2, which is aimed to capture price competition of basic commodities in the market.

Promotion Price Index for the month of Jul ‘15 is 99.5%, a 1.4 percentage decrease from previous month, and signals higher price competition in response to gloomy economic outlook and declining consumer confidence.

☑ Retail Promotion Strategies

Compared to Jul ‘14 , most key retailers clearly put more weight in Grocery. Tesco, for example, increased Grocery Share of Voice within its promotion portfolio by 9%.

In addition to Grocery, most retailers were also increasing proportion of Fresh produce. Tops, on the other hand, decreased its proportion of Fresh produce promotion by 4%

☑ Top Traffic Generating Brochures3

Big C, with its continued aggressive promotion strategies, dominated 2 out of Top 5 traffic

generating brochures. The other 2 were from Makro, who used to lead this domain, and 1 was from Tops Superkoom.

☑ Top 5 Promoted categories

Top 3 Promoted categories continued to be Laundry products, Seasoning, Coffee. Share of Voice in Laundry product has continued to increase for the last couple month.

The other Top Promoted categories were Baby universe and Personal care, whose Share of Voice increased significantly from last month.

1) Thailand Retail Promotion Index (TPI) is the number of promotions monthly featured in brochures and daily newspapers by 4 Leading

Retailers in Thailand: Tesco (Hyper and extra), Big C (Hyper and extra), Tops Supermarket/Superkoom and Makro (GM and Food Service).

The starting date - our base 100 is on January 2013.

2) See definition of Promotion Price Index in Glossary

3) Traffic Generating Brochure is a brochure that has more promotion products than another brochure, the more promotion product the

brochure has, the more we consider it can generate traffics.



Thailand Promotion Index (TPI)

TPI is an index to measure promotion activities among all retailers in Thailand. The index is

calculated by comparing number of promotion items on printed media of the current month

vs reference month (January 2013)

114% 111%

156% 161% 159% 161% 150% 178%

202%

133% 126% 158%

0%

100%

200%

Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

Thailand Promotion Index (AUG14 - JUL15)

Jan’13

= 100

0%

100%

200%

300%


Thailand Promotion Index by Retail Formats

CVS HYPERMARKET PERSONAL STORE SUPERMARKET WHOLESALER

Brand Name Pack # of promo AVG price (THB)

MILO 3 IN 1 3 IN 1 INSTANT CHOCOLATE POWDER 1 PACK 15 BAG 35 GM 34 94.29

MOO CHAMP NEM SAUSAGE 1 PCS 120 GM 32 59.00

NESCAFE RED CUP INSTANT COFFEE 1 BOX 400 GM 32 198.28

MOO CHAMP MOO YOH 1 PCS 175 GM 32 59.00

HI-Q 1-PLUS SUPER GOLD SYNBIO PROTEQ BABY MILK POWDER GROWING UP 1+ 1 BOX 4 BAG 600 GM 32 1185.31

Top 5 Promotion Items in Jul 15

102.2% 102.0% 102.2% 100.0%

102.6% 102.6% 102.6% 100.1% 99.7% 99.2%

100.9% 99.5%

90%

95%

100%

105%

110%


Promotion Price Index (AUG14 - JUL15)

Jan’13

= 100



1) Retailer Price Index is the positioning of a product [or a group of product] at a retailer compared to the average selling price of the same product [or group of product] in the selected retailer scope. The Promotion Price Index is calculated on products that are simultaneously on promotion at all retailers in the scope at least one day during a calendar month.

2) Including the rebranding of Top Supermarket to Top Superkoom 3) Show the ratio percentage of number of promotion items in the selected category compared to all promotion items in all

categories for the same retailer during the same period.

Promotion strategies

Key retailers’ Share of Voice3

Top5 promoted categories

Key retailers’ promotion activities

Retailer Price Index Evolution1

Nb B/C Nb N/P Nb I tems Nb B/C Nb N/P Nb I tems Nb B/C Nb N/P Nb I tems

Makro Food Retail 15 2 2,456 14 1 2,061 -6.67% -50.00% -16.08%

Big C 4 47 2,655 5 49 3,090 25.00% 4.26% 16.38%

Tesco Lotus 3 40 1,797 4 38 1,872 33.33% -5.00% 4.17%

Tops Superkoom2 6 4 1,078 4 12 730 -33.33% 200.00% -32.28%

Jul 15Retailer

Jul 14 Changes

Jul-14 Jul-15 Changes Jul-14 Jul-15 Changes Jul-14 Jul-15 Changes Jul-14 Jul-15 Changes

APPLIANCES & FURNITURE 14% 12% -2% 15% 12% -3% 16% 10% -6% 0% 0% 0%

FRESH PRODUCE 15% 17% 1% 14% 15% 1% 17% 17% 0% 27% 23% -4%

GROCERY 49% 51% 2% 51% 54% 3% 52% 61% 9% 69% 74% 5%

HARD GOODS 20% 19% -1% 9% 9% 1% 5% 7% 2% 3% 3% -1%

TEXTILE 2% 1% -1% 11% 10% -2% 10% 5% -5% 0% 0% 0%

Markets / RetailersBig C Tesco Lotus Tops Superkoom2Makro Food Retail

Total Retail Total Retail Total Retail Changing Changing

SOV JUL 2015 SOV JUL 2014 SOV JUN 2015 JUL 15 vs JUN 15 JUL 15 vs JUL 14

LAUNDRY PRODUCTS 5.00% 4.80% 4.70% 0.30% 0.20%

SEASONING 3.80% 3.30% 5.30% -1.50% 0.50%

COFFEES 3.00% 2.30% 2.60% 0.40% 0.70%

BABY UNIVERSE 2.90% 2.00% 1.90% 1.00% 0.90%

PERSONAL CARE 2.80% 2.10% 1.70% 1.10% 0.70%

Markets



Top Traffic Generating Brochure

💡 Key points 2 out of Top 5 Traffic Generating Brochures in Jul ‘15 are from Big C with focus on seasonal event as well as price. The other 2 Top Traffic Generating Brochures were from Makro with key theme on

business partnership with TT stores.

Items 682 533 517 509 500 Pages 22 28 28 44 28 Stores 107 107 65 41 65

Duration 12 13 14 14 14



Category Flash Analysis

Category Flash Analysis provides summary information of promotion activities in the selected

category during the current month vs same month of last year.

The category selected during the month of Jul ‘15 is Colas as it is the top promoted category of the

month.



Product Flash Analysis This analysis provides a snapshot of promotion activities of the selected product (SKU) including

promoting retailers, price range, price history and price comparison among promoting retailers.

In this analysis, Coca-Cola was selected due to high level of promotion as well as significant

price decrease during the reporting month vs 12-month Historical Average Price.

It should be noted that significant price drop is a result of aggressive promotions by Big C and

Tops across all of its formats.

Moving Annual Total Price Trend from Aug14-Jul15 Comparison of Virtual Price each Retailer in Jul15



Glossary

Retailers : Show the top 3 retailers that have the most promotion items in the selected category during the reporting

month. Also show the change in term of Share of Voice of the retailers vis a vis Share of Voice in the same month of last

year.

Share of Voice : Show the ratio percentage of number of promotion items in the selected category compared to all

promotion items in all categories during the same period.

Brands : Show the top 3 brands that have the most promotion items in the selected category during the reporting

month. Also show the change in term of Share of Voice of the brands vis a vis Share of Voice in the same month of last

year.

Private Label : Show the ratio percentage of number of House Brand promotion items in comparison to total number of

promotion items in the selected category. Also show the change in term of Share of Voice of House brands vis a vis

Share of Voice in the same month of last year.

Average Price : The average promotion price in every promotion items in the selected category during the period of

reporting month from all retailers.

Promotion Price Index : Promotion Price Index is a simple (non-weighted) average price of basic commodities being

promoted during the current month vs base month in hypermarket channel. The base month (where the index is 100%)

is January 2013.

Commodity products included in the calculation of Promotion Price Index are as follow:

• Breeze Excel 1 bag 2700 g

• Dumex Dumilk 3 Complete Care 1 bag 900 g

• NesCafe 3in1 Rich Aroma 1 pack 40 bags 19.4 g

• Fresh pork rump 1 kg

• Ovaltine 3in1 1 pack 20 bags 35 g

• Bencharong Sao Hai rice 100% 1 bag 5 kg

• Coca-Cola 1 pack 6 cans 325 ml

• Nestle Pure Life drink water 1 pack 12 bottles 600 ml

• Lactasoy 1 pack 6 brinks 250 ml

• Fresh Kaew Mungkorn (Dragon fruit) 1 kg

• Morakot Palm Oil 1 bottle 1,000 ml

Hit Products : Show 4 most promoted SKUs during the reporting month in the selected category during the period of

reporting month from all retailers.

Consumer Advantages : The ratio percentage of number of promotion items in the selected category that come with

Promotion Mechanics in comparison to number of total promotion items in the same category (including promotion

that does not contain promotion mechanics such as “New”). Also show the change of this same figures vis a vis the

figures in the same month of last year.

Calendar : Show how frequent the items in the selected category is promoted along the last 12 months. The color

codes in the Calendar are defined as follow;

Green The months that have more number of promotion items in comparison to the last 12 months. Blue The months that have average number of promotion items in comparison to the last 12 months. Red The months that have less number of promotion items in comparison to the last 12 months. Gray The months that have no promotion item.



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July 2015 Thailand Promotion Index

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Transcript of July 2015 Thailand Promotion Index