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welcome
Nick Jones EVP, RETAIL PRACTICE LEAD
Lilia Arroyo Flores SVP, STRATEGY DIRECTOR
Molly Garris DIRECTOR, DIGITAL STRATEGY
Enrique Márquez SVP, STRATEGY DIRECTOR
A Study ofHow Humans Shop"
A Shared Problem Today"
Awareness"
New News"
Distinctiveness"
Relevance"
Likeability"
Which shoppers matter most?
What modes do these shoppers exhibit?
What needs should I address in each of these modes?
Which touch points should I use to address these needs?
How Did We Do This Study?"
13,400 People
7 Markets
24 Categories
40 Touch points
60 Attitudes
22 Trips and Modes
40 Needs and Motives
132 Shop-alongs
88 Journals
The Categories"
CANADA
FRANCE
GERMANY
ITALY
SPAIN
Archetypes: I am... Modes: I do...
To
uch
Poi
nts:
I us
e...
Needs: I need...
The 6 Shopper Archetypes"
What We Mean By Archetypes"
A shopping mindset rather than a specific individual.!!!
HabitualSprinter
DollarDefaulter
QualitySeeker
StrategicSaver
PassionateExplorer
OpportunisticAdventurer
HabitualSprinter
DollarDefaulter
QualitySeeker
StrategicSaver
PassionateExplorer
OpportunisticAdventurer
ExpplolpPa
Esipppp
asExass
xps
psss
EEEEEEEEEEE paE p
TRENDY
alSeek
ae
uaee
QSeek
lSeekQSeek
aQeueeeeeSSS kkkS kek
akkSS ke
uue
QSQSSQQQSSQQ
eaee rn retuurrerr
nisreur
tuntutuun
rerreetnntntnuututnunnnu
uninn
bitrin
HaSp
brip
ababbbultllllu ertellarultearrrrrrrrrrrr
veeraSarategaveavevveavettra gg
ertte
FEELERS"Seek fun and pleasure from shopping!
THINKERS"Seek information to help validate decisions!
DOERS"Seek to minimize time and money spent!
I am a THINKER"
StrategicSaverLayers multiple saving strategies to maximize value
EXPE
RT
Quality SeekerChecks for quality credentials thoroughly and diligently
PassionateExplorerShops for the experience and to discover new trends
Opportunistic AdventurerBargain shops justfor spontaneous fun
HabitualSprinterDefaults to usual choices to minimize time and e!ort
PR ICE
DollarDefaulterLooks to the lowest price to simplify decisions
I am a DOER"I am a FEELER"
Note: Index vs. total.!
Functionally Driven" Emotionally Driven"
Quality Seeker
175
Opportunistic Adventurer
140
Habitual Sprinter
126
Passionate Explorer
129
Strategic Saver 137
Passionate Explorer
122
Strategic Saver 122
Opportunistic Adventurer
121
Dollar Defaulter
129
A World Of Difference"
The same person can be a different archetype in a different category!
It’s Important We Remember"
Looking At One Archetype Today"
Shopping Apparel With THE Opportunistic Adventurer"
OA"
226"
Opportunistic "Adventurer"
Deal Hunter!!Trend Watcher!!Social Shopper!!Impulse Purchases!!Touch / Feel Product!!Spontaneous Fun!
Archetype"Characteristics"
Modes!!Needs!!Touch points!
Effects"
PE!
TRENDY
82"
SS!OA!
92"
DD!
67"
HS!
226"
81"
34"
QS!
Bargain shops for spontaneous fun!
FROM: Opportunistic" Adventurer"
HS!
146"
PR ICE
DD!
158"
122"
OA! SS!
58" 35"
QS! PE!
TRENDY
27"
Looks for the lowest price or regular brand to simplify decisions!
TO: Dollar Defaulter"
Note: height based on % size of segment index vs. total!
Bargain shops for spontaneous fun!
PE!
TRENDY
75"
SS!
68"
DD!
145"
OA!
167"
QS!
95"45"
HS!
Researches, creates multiple strategies to save money and !retain quality!
TO: Strategic Saver"FROM: Opportunistic" Adventurer"
PE!
TRENDY
82"
SS!OA!
92"
DD!
67"
HS!
226"
81"
34"
QS!
Note: height based on % size of segment index vs. total!
FROM: Opportunistic" Adventurer"
PE!
TRENDY
82"
SS!OA!
92"
DD!
67"
HS!
226"
81"
34"
QS!
Bargain shops for spontaneous fun!
Note: height based on % size of segment index vs. total!
PE!
222"
59"
OA!SS!
128"
44"
DD!
158"
QS!
57"
HS!
Seeks to discover and experience new trends, quality and value.!
TO: Passionate Explorer"
Q: "But how can that happen?"
A: "How people regard a category affects their mindset & behaviour towards that category"
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
RIS
K"
©Leo Burnett Co. Inc. 2007 !
Answers the question:"How much risk is there in making a wrong brand decision in this product category?!
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
REWARD"
©Leo Burnett Co. Inc. 2007 !
Answers the question:"How rewarding is it to think
about/choose amongst brands in this product category?!
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
Risk Reward n=5,000!
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
Leo Burnett Co. Inc. 2007 !
Appliances
Cell Phones
Banking
Kitchen Redesign
Car Insurance
Sports Equipment
Yogurt
Fashion
Soda
OTC
Hotels
Packaged Meat
Confectionary Cereal
Dairy
Cosmetics
Beer
HDTV
QSRs
Organic Food
Casual Dining
Auto
Laundry
Canned Food
Shopping Modes (I Do)"
What We Mean By Modes"
Discrete activities that people undertake while shopping!!
14%"Changing!Altering !an existing decision!
Note: % of people who engage in the trip!
Eight Dominant Modes (I Do)!
27%"Re-Stocking!Replenishing many items!
38%"Go-Getting!On a specific task!
37%"Bargain Hunting!Scouting!for deals!
29%"Pit-Stopping!Filling-in for an immediate need!
41!
29%"Exploring!Engaging and discovering!
23%"Cruising!Passing time for fun!
42%"Learning!Doing due diligence!
Note: DARK – Dominant | MEDIUM - Prevalent | WHITE - Absent
Learning!
Go-Getting!
Bargain Hunting!
Pit-Stopping!
Exploring!
Re-Stocking!
Cruising!
Changing!
Strategic Saver
Habitual Sprinter
Passionate Explorer
Dollar Defaulter
Quality Seeker
Opportunistic Adventurer
Archetype "[I am]!
Shopping Apparel With THE Opportunistic Adventurer"
Deal Hunter!!Trend Watcher!!Social Shopper!!Impulse Purchases!!Touch / Feel Product!!Spontaneous Fun!
OA"
226"
Opportunistic "Adventurer"
Cruising for fun!
Scouting for the deal!
Modes"Trip"Type"
Fun!!Bargains!!Inspiration!!
Archetype "[I am ]!
Modes"[ I do ]!
Learning! Go-Getting! Bargain Hunting! Pit-Stopping! Exploring! Re-Stocking! Cruising! Changing!
Strategic Saver
Habitual Sprinter
Passionate Explorer
Dollar Defaulter
Quality Seeker
Opportunistic Adventurer
Shopper Needs"
What We Mean By Needs"
Motives and goals people have in various shopping modes.!!!!!
25% "Treat!An escape or indulgence !
19% !Inspiration!To express my individuality !
8 Basic Shopper Needs (I Want)!
% of people who express the need !
39% "Efficiency!To minimize time and effort !
35% "Special Offers!Exclusive or limited offers !
35% "Flexibility!Convenient access 24/7 !
50% "Best Price!Find best savings!
38% Information!To validate a decision !36% "Advice!Unbiased expert input !
Functional! Rational! Emotional!
Best Price!
Efficiency!
Information!
Advice!
Special Offers!
Flexibility!
A Treat!
Inspiration!
Note: DARK – Dominant | MEDIUM - Prevalent | LIGHT - Absent
Needs"[Vary By!Archetype] !
Strategic Saver
Habitual Sprinter
Passionate Explorer
Dollar Defaulter
Quality Seeker
Opportunistic Adventurer
Shopping Apparel With THE Opportunistic Adventurer"
Deal Hunter!!Trend Watcher!!Social Shopper!!Impulse Purchases!!Touch / Feel Product!!Spontaneous Fun!
OA"
226"
Opportunistic "Adventurer"
Needs"
Shopping to express individuality (230)!
I shop to feel savvy or victorious(154)!
Part of the fun of buying a product is immersing myself in the store environment (174)!
I enjoy “hunting” for great bargains and deals (124) !
What she doesn’t need is as interesting as what she does need…"
Deal Hunter!!Trend Watcher!!Social Shopper!!Impulse Purchases!!Touch / Feel Product!!Spontaneous Fun!
OA"
226"
Opportunistic "Adventurer"
What She Doesn't Need"
Quality (85)!
Research (62)!
Peer Info (70)!
Sustainability (72)!
Convenience (88)!
Expert sources (69)!
It’s Important We Remember"
Like Modes… "!Needs vary by category because the RISK REWARD and Archetype vary by category!
Expert recommendation (160)!Reviews & peer reco’s (152)!Get extra perks or services (151)!
Impress others (192)!Be inspired (179)!
Feel sense of accomplishment (171)!Validate my decision (161)!See, touch, try a demo product (148)!
When She Redesigns Her Kitchen…"
228"Passionate Explorer"
PE"
Researcher!!Quality Obsessed!!Trend Follower!!Eco Correct!!High End Brand!!Price Insulated!!
Needs"
Needs"[I want]!
Best!Price! Efficiency! Information! Advice! Special Offers! Flexibility! A Treat! Inspiration!
Archetype "[I am]!
Modes"[I do]!
Learning! Go-Getting! Bargain Hunting! Pit-Stopping! Exploring! Re-Stocking! Cruising! Changing!
Strategic Saver
Habitual Sprinter
Passionate Explorer
Dollar Defaulter
Quality Seeker
Opportunistic Adventurer
Touch Points "(I Use)"
What We Mean By Touch Points"
Tools and channels people use to meet their shopping needs!!Some are physical e.g. specific store types!!Others are digital, traditional and even human!!!!!
Touch Points (I Use) 40 Touch Points "
59% "Broadcast Media!Passive media!
32% "Tools to interactand share!
64%"Promo Vehicles!Tools that deliver !news and offers!
59% "Expert Sources!
56%"Local Shops!
55% "Specialized Retail!
61% "Value Center!One-stop discount retailers!
PromotionalVehicles!
Value Centers!
Expert Sources!
Broadcast Media!
Specialized Retail!
LocalShops!
Engagement Tools!
Touch Points"[I use]!
Strategic Saver
Habitual Sprinter
Passionate Explorer
Dollar Defaulter
Quality Seeker
Opportunistic Adventurer
Shopping Apparel With THE Opportunistic Adventurer"
Deal Hunter!!Trend Watcher!!Social Shopper!!Impulse Purchases!!Touch / Feel Product!!Spontaneous Fun!
OA"
255"
Opportunistic "Adventurer"
Cruising for fun!
Department!Value Centre Discount!Supercentre!
Scouting for the deal!
Touchpoints"Retail website!Mobile!Social Site!Mag/Newsp/Radio!!
Best Price
Efficiency Information Advice Special Offers Flexibility A Treat Inspiration
Learning! Go-Getting! Bargain Hunting! Pit-Stopping! Exploring! Re-Stocking! Cruising! Changing!
Strategic Saver
Habitual Sprinter
Passionate Explorer
Dollar Defaulter
Quality Seeker
Opportunistic Adventurer
Promo!Vehicles! Value Centers! Expert !
Sources!Broadcast
Media! Specialized Retail! Local! Shops!
Engagement Tools!
Needs"[I want]!
Archetype "[I am]!
Modes"[ I do]!
Touch Point"[I use]!
What Did We Learn"
Risk Reward, Quantitative, n=5000 regular brand users and brand decision makers !
2. "Shopping journeys typically involve more than one mode""""High risk and high reward categories have much longer and more complex journeys than we imagined.!
1. Archetype effects everything"!People fall into six distinct shopping archetypes (mindsets) that effect how they view and shop a given category.!
Key Findings"
Key Findings"
3. Multiple, rather than singular needs are the norm for shoppers regardless of category.""""Every archetype has dominant and secondary needs, so not all are of equal importance to you or them.!
4. Not every archetype is created equally when it comes to touch points."
!Every archetype does not require the same number of touch points to influence behaviour.!!!
Risk Reward, Quantitative, n=5000 regular brand users and brand decision makers !
What Does This All Look Like"
What Does This Provide Us"
Which SHOPPERS matter most!
What MODES these shoppers exhibit!
What NEEDS have to be addressed!
Which TOUCH POINTS matter most!
Drive Efficiency!!
& "!
Effectiveness!
Turning Shoppers" Into Buyers"
Hispanic population growth projected to outpace ethnic groups over the next 40 years
Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative
+42%
Total
+1%
WhiteNon-Hispanic
+56%
Black
+142%
Asian
+167%
Hispanic
Projected U.S. Population Growth from 2010 - 2050
U.S. Latinos are 52 million strong
Source: Geoscape: American Marketscape Data Stream 2010 Series
1,151,228 born every year
95,936 born every month
3,152 born every day
131 born every hour
2010-2015 Estimates
Hispanics are a young populationMedian Age
Non-Hispanic Whites Hispanics
17.6 17.3
5.6
10.611.4
12.6
17.1
11.812.8
14.0
15.6
10.5
13.6
6.8
8.77.8
3.62.3
< 5 years 5 to 14years
15 to 24years
25 to 34years
35 to 44years
45 to 54years
55 to 64years
65 to 74years
75years +
28 37
perc
enta
ge
Latinos are young and connected
Source: Nielsen
Stream 6:15 hours of video per month
Watch 33 hours of TV per week
Send/receive 941 texts per month
Hispanics are connected
Hispanic General Population
47%
18%
90% 81%
31% 33%57% 46%
Hispanics have influence
Source:Selig center of Economic Studies/University of Georgia 2009Central Intelligence Agency-World FactBook
Poland Argentina Greece
Israel South Africa Netherlands
Hispanics are the 13th largest economy in the world
Ahead of ...
20152010
$1 Trillion buying power
$1.5 Trillion buying power
51 million Hispanics in
the U.S.
50% growth in purchasing
power by2015
Source: 2012 Nielsen State of the Hispanic Consumer Report
Hispanics have enormous purchase power
Nothing Happens Until it Happens at the Store…
A void in the market
AcceptedHispanicShopper
Learnings
The most comprehensive tool for understanding Latino shoppers
Yogurt SodaConfectionary
Cereal
Beer
AppliancesBanking
Car Insurance
OTC
Hotels
Cosmetics
Canned Food
Laundry
Cell Phones and Carriers
Fashion
15 categories
Yogurt
Soda
Confectionary
Cereal
Beer
Appliances
Computer
Banking
Car Insurance
OTC
Hotels
Dairy
Cosmetics
Canned Food
Laundry
Fashion
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
Computer
Cereal
FashionCereal
Fashion
Fem Care
Fem Care
Hair Products
Computer
Hair Products
Archetype dominance
9%
15%
12%
25%
20%
19%
45090
90
66
200
136 450
2%
11%
6%
38%
22%
21%
Strategic Saver
PassionateExplorer
OpportunisticAdventurer
HabitualSprinter
DollarDefaulter
QualitySeeker
The Question is… Why?
Shopping is complex
“In order to win with Latino Shoppers, brands need to understand the Mindset and Strong Heritage that influences the
way they eat, clean, cook, and ultimately how they buy and consume goods.”
Source: Forbes, “Big Data Shows Hispanics Will Change Business Models”
Key Considerations3
1Consumer is not boss.CULTURE is boss.
22
For LatinosShopping is their playground
The playground
I want to be the 1st to have it.
Multi-dimensional
32%338 index
like to hear & give opinions & write reviews
Multi-touchpoint
36%200 index
I like to try new products
Multi-sensorial
45%284 index
I enjoy shopping with my children
Multi-generational
45%375 index
Store
Meet Social Expectationsvs.
Accomplish Individual Dreams
Index To General
Market
125
Typically shopped
Index To General
Market
139
Mindsets
Cell Phones
Kitchen Redesign
Sports Equipment
Fashion Electronics
Cosmetics
“wants”
“needs”
Cereal
Dairy
Beer
Laundry
Soda
Canned Food
Packaged Meat Fresh
Pharmacy
The Habitual Sprinter shopping journey
The Passionate Explorer shopping journey
They go to different stores to accomplish their goals.
But they can be one and the same person.
Habitual Sprinter
Passionate Explorer
The Challenge
Capture both mindsets and be the place that helps Hispanics
take care of their “basic needs” so they can
spend time on their “fun wants”.
All in the same store.
The opportunity: save time shopping to spend time shopping.
2 Shopping is a SOCIAL activity.
32
Latinos are social
Shopping is a social activity
Shopping is meant to be done with others
29%290 index
Word of mouth is key
37%217 index
Social media is the key enabler of collaboration
48%155 index
Share opinions and reviews
36%200 index
Fashion
[ High Risk ]
[ Low Risk ]
[ High R
eward ][ L
ow R
ewar
d ]
Fashion
Fashion
The dominant shoppers Fashion
Opportunistic Adventurer Fashion
Passionate Explorer
The tension
Collaborate
vsCompete
Ideal thing Right thing
The tension
vs
Recommendations
Social influencers bring inspiration and possibilities
42
Recommendations
Leverage peer-to-peer’s influence before, during and after the purchase
43
Make it easy for her to see what her friends like
Uniqlo digital hangers show how many people like each garment
Recommendations
44
Mobile & social media
Make it easy for her to see what her friends like
Help people by using technology to bring
trends to life
Help a few experience the latest products
3 Value means MORE THAN low price.
45
46
Recommendations matter
They want to get tailored advice and recommendations
48%200 index
55%145 index
The like to touch, feel and smell a product
before buying
Trust their senses
49%258 index
Visual cues are important
They judge product quality by product
packaging
Value does not mean buying cheap. It means getting more than what you pay for.
61%139 index
Multi-touchpoints inform decisions when shopping
Multi-touchpoints inform better
decisions
Won’t buy a product over lower quality even if it is on sale
45%128 index
Not willing to compromise
Laundry
Making the right choice is serious business
Wants to make sure she gets more than
she pays for
A wrong purchase decision carries
frustration as she feels she is
affecting her family
Wants as much information as
possible to make sure she makes
safe bets
Before going to the store
“I need to know the product, know it will give results, it is what I want.”
“I find out about products from TV.”
“I make sure a product works, or I look for
someone to talk to me about the product.”
In the laundry aisle
“I leave detergents for the end. It is my space to smell
and have some time for myself. It is like choosing a personal perfume that you
wear on your clothes.”
“I start to read the details of the products that interest me - the
packaging, the pictures...”
Minimize risk!
Avoid the package
regret effect!
Get her to the top of the social shopping game leaderboard
Make it risk free
Hispanics are leveraging digital incentives.
Let them try the product.
Help her choose the right product
Gain mobile ad drove key brand engagement and helped shoppers find the right scent
Help her choose the right product
Reward her for influencing others
Give her more incentive to share
Tesco Share and Earn gives users rewards for sharing their purchases
You are leaving money on the table.Having a Hispanic strategy won’t alienate. It will enhance your mainstream strategy.Lead. Learn. Enlarge.1+1=3. Use differences to discover, validate or bring dimension to your findings. The new mainstream is already here.
gracias.
Everything but the norm:
Global Trends 2013Molly Garris
Ultimately, the path to purchase has changed.
People are shopping more often,
in more places and across more channels.
4key shoppingneeds
efficiency
assurance
value
inspiration
efficiency
efficiency simply makeA PURCHASE
GET IN/ out quickly
FIND SPECIFIC brand/product
Habitual Sprinter
TRENDS‣ Hybrid formats
‣ Alternative forms of check out and payment
‣ New ways to fulfill orders / pick up goods / deliver goods
efficiency
Make Visits Faster and More Relevant
Get In and Out Quickly
Long Lines Disappear
Even Wallets are Going Away
24/7 Access
Beat Showrooming: Buy Online, Pick Up in Store
Buy Online, Pick Up 24/7
How about Same Day Delivery?
Auto-Delivery
assurance
Passionate Explorer
EXPE
RT
QualitySeeker
assurance WeighPROS/CONS
UNBIASED advice
see, TOUCH, demo, TRY
assurance
TRENDS‣ Better understanding quality
‣ Research tools
‣ Social Shopping
Offer Transparency
Offer Traceability
Bring in the Tablets
Have the Experts On Hand
Let them Snoop
Enable them to Poll Friends
Provide Purchase Protection
Challenge the Competition Head On
value
value
PRICEWORTH of a product or serviceSpecial OFFERS
PR ICE
Dollar Defaulter
Opportunistic Adventurer
StrategicSaver
value
TRENDS‣ Discount Stores and Private Labels
‣ Deals and Pricing Strategies
‣ Going Beyond Price
Aldi and Lidl Gain Share
Dollar Stores Cash In
11,000 Stores!
Retailers are Forced to Price Match
Innovative Pricing Strategies are Being Explored
But isn’t enough ENOUGH?
Retailers Must Add Value in Fresh Ways
New site, KinderStuff, also Addresses Little Needs
New Amazon site, Aggregift, Aids in Group Gifting
The Brands (and Frats) are Catching On
Brands Let Consumers Weigh In
Product Innovation is Being Pushed
The Ultimate Goal is not just to Push Sales but to Gain Loyalty
inspiration
inspirationa TREAT
EMOTIONAL needs
EXPERIENCE
Passionate Explorer
inspiration
TRENDS‣ Better and more interactive ways
to learn about and select products
‣ A fun or more unique way to shop
‣ The “Wow” factor
Open a World of Flavor
Relax and Recharge with the Family
Ease Fitting Room Frustrations
Have a Destination, not a Dressing Room
Dial up the Wow
Brands are Harnessing the Excitement too
Finding Meansto Engage with Customers in Unforgettable Ways
Experiences Don’t Necessarily Mean Costly Executions
Or Just for the Tech Savvies
Have Fun, Be Memorable
There’s no silver bullet.
In order to get ahead, start by:
‣ Better understanding your shoppers, their behaviors and needs
‣ Activate the right touch points
‣ Implement tests to gather actionable learnings
Nick Jones EVP, RETAIL PRACTICE LEAD
[email protected] 312.220.4533
Lilia Arroyo Flores SVP, STRATEGY DIRECTOR
[email protected] 312.220.6391
Molly Garris DIRECTOR, DIGITAL STRATEGY
[email protected] 312.220.5228
Enrique Márquez SVP, STRATEGY DIRECTOR
[email protected] 312.220.5433
thank you