Getting Inside The Mind of the Shopper

What’s driving the shopper

• Unemployment still a problem• Housing prices remain weak• Foreclosures, foreclosures…• Consumer lack-of-confidence• The impact on shopping patterns

Where we are

• The new age of frugality• The new age of simplicity• The importance of

differentiation

The questions we face

• How are lifestyle and other pressures affecting store selection and shopping

• How do today’s consumers describe their needs and how do those needs influence behavior

• How do supermarkets meet today’sshoppers’ needs

• How can understanding need states translate into competitive advantage

Who is the shopper?

Time

Money

Personal

Family

State of mind

I am the KEEPER:Care for Family

“I consider grocery shopping to be a very important job and take it

seriously. I want to do a good job for my family. I buy what people ask for

and what I think will please them, but I always make a decision that ensures

it’s good for them.”

I am the QUARTERMASTER:

Efficient Stock-Up“I don’t like to grocery shop, so on

my major trips I buy everything I can. I like to have a lot of things on

hand, so I can avoid making an additional trip to the store.”

State of mind

State of mind

I am the BANKER:Smart Budget Shopper

“I have a planned grocery budget that I don’t want to exceed. I’ll

stock-up on bargains and I want the store to make it easy for me to

find for savings.”

State of mind

I am the SEEKER: Discovery

“I like to browse during my grocery shopping trips. Every

trip is a little different. I look for new ideas, new recipes, new

foods–and even some non-grocery products, like clothes.”

State of mind

I am DESPERATE:Specific Item

“I need something right away: a specific food, ingredient,

prescription medicine, or alcoholic beverage. If it’s not on the shelf,

I’m likely to go to the next store.”

I am RELUCTANT: Reluctance

“If I could, I’d rather have somebody else do my shopping

or do it online – anything to avoid going to the store. Right now, I put little time or effort into my

shopping trips.”

State of mind

I am the HUNTER: Bargain-Hunting

Among Stores“On my grocery trips, I am looking

for bargains on a limited number of specific products that I want to buy.

I go to the store that is offering the best deals on these products.”

State of mind

I am the COURIER:Small-Basket Grab & Go

“Bread, milk, bananas, and beer. In and out in a few minutes. That’s

what I’m here for.”

State of mind

State of mind

I am HUNGRY:Immediate Consumption

“I’m thirsty, I’m hungry, or I am out of cigarettes.”

36% get real accomplishment from

shopping

25% say shopping isan unpleasant necessity

30% say “I cook because my family

needs to eat”

55% find cooking a source of satisfaction

Polarized views rule

36% get real accomplishment from

shopping

25% say shopping isan unpleasant necessity

30% say “I cook because my family

needs to eat”

55% find cooking a source of satisfaction

Polarized views rule

Supermarkets are facing strong competition

Consumer Commitment Across Competition(TRI*M Index, by Channel)

101

106

100

93

93

91

87

80Convenience Stores

Drug Stores

Total Supermarkets

Supercenter

Mass Merchandiser

Dollar

Warehouse Club

Limited Assortment

TRI*M Index 70 – 100 = Strong Relationship | Over 100 = Very Strong Relationship

Clear positioning produces stronger commitment

Consumer Commitment Within Supermarkets(TRI*M Index by Type of Supermarket)

109

100

96

89Supermarket Main Tier

Price Oriented

Upscale Supermarkets

Natural/Organic

TRI*M Index 70 – 100 = Strong Relationship | Over 100 = Very Strong Relationship

Overview of the Tool

StoreExperience

Need StatePrioritization

Need State Opportunity

Need StateSelection

Need State Overview

Step1

Step2

Step3

Step4

Step5

Step 1Overview of the nine shopping-occasion-based need states

Step 2How do you compare to your competition?

Your store experience vs. (insert competitor here)

• Atmosphere

• Product

• Price/Promotion

• Store Service

• Convenience

Step 3How well are you satisfying the needs of shoppers?

Assessing your overall ability to serve

Competition is Dominant

(33)

Equal to Competition

(100)

Dominant vs. Competition

(166) 136

127123

114

101

96

75

67

55

Care forFamily

Smart Budget - Shopping

EfficientStock-up

Bargain-HuntingAmong Stores

Specific Item

Reluctance DiscoverySmall Basket

Grab & GoImmediate

Consumption

Step 4Which need states fit you best?

Care for family

Need States AverageTransaction Size

Care for Family

What is the size of the need state?

% ofSupermarket Trips

% of Total Supermarket

Spending

$110 20% 28%

Step 5Which need state do you want to own?

Beginning to position and brand your store(s)

• Select your primary need state• Review the details in this tool to be

sure you have a comprehensive understanding of all the information related to this need state

From more information visit:

www.CCRRC.org