NielsenShopperCredentialsClient

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Confidential & Proprietary Copyright 2010 The Nielsen Company

UnderstandingShoppers


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The Nielsen approach to shopper

What is shopper management? What makes a shopper study successful?

How do we really understand shoppers? What do we know?


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What isshopper

management?


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Defining Shopper Management

SHOPPER MANAGEMENT IS.

the art and science of

understanding and impacting

how, when, where and whyshoppers make purchases to fulfill

consumer needs


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Connecting the shopper & consumer

consumer

CONSUMPTIONEXPERIENCE

INFLUENCE ON

FUTURE PURCHASES

shopper

PLAN

PLACE

PURCHASE

DECISION


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The Shopper Decision Loop

shopper

PLAN

PLACE

PURCHASE

Channel / Retailer Drivers

Location Convenience Price Range Quality

HabitShopping Trip Main Grocery Top Up Meal for Tonight

Specific Occasion Emergency Promo item

Pre-Store Influences

Ads, CataloguesCategory Role

Destination / Routine

Decision Rules Buy favourite brand Buy acceptable brand onspecial

Who / Where / What / Why/ When

Shopper Profiles Pre / In Store

Planned / Impulse Category / Brand / Format Influencing Factors Triggers / Barriers Time of Day / Day of Week


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What makes ashopper study

successful?


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Three keys to shopper success

Needs to be actionable with retailers

Must deliver the facts

Focus on driving sales


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Successful shopper studies

Must be actionable with retailers

Communicate & demonstrate real shopper insights

Show consistent findings from multiple data sources

Admit nothing is perfect, be transparent

about what didnt work

what could have been done better

Take a category approach

what can your brand do for them


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Successful shopper studies

Must deliver the facts

70% of decisions are made at the shelf

70% of shoppers plan to buy the category beforethey enter the store

70% of products that are touched are bought 70% of statistics are made up on the spot

30% of statistics are wrong


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Shopper sales driversConversion, Spend & Trips

TripsSpend

Number of shoppers Frequency

Incidence Channel

Retailer

Mission

Conversion

Category Brand

Product

Number of packs Pack size

Price


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Retain buyers and increase theirspend and frequencyRetain

Engage category shoppers

(in the aisle) and activate purchaseRecruit

Attract non category shoppersto my categoryReach

ChannelShoppers

CategoryShoppers

Buyers

Shopper conversion strategy


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Promotions impact Spend & Trips

TripsSpend

Shallower discountsmore often

Unique offers

Catalogues

Deeper discountsless often

Multi-buys

Displays


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Identify level of category opportunity

Four shopper types Planned purchase

Impulse purchase Lost sales

Missed opportunity

Level of planning Category Brand

Product

Purchase triggers /

barriers

Planned Lost Sale

MissedOpportunityImpulse

Buyers Non-Buyers


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How do wereally

understandshoppers?


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MerchandisingServices

MerchandisingServices

ShopperPanel

ShopperPanel

AdvancedAnalyticsAdvancedAnalytics

Retail

Measures

Retail

MeasuresSales Analysis

Price and PromoAnalysis

Planogram and SpacePlanning

Category Management

Basket Analysis

Market Structure

Trade Planner

Shopper Optimiser

DeltaQual CognitiveInterviews

AccompaniedShops

Observation and Eye Tracking AssortmentOptimization

DeltaQual Groups

Neuro-Testing

Neuro-Testing

Assessment ofcognitive and

emotional responsesfor complete in-store

experience analysis

Shopper InterviewsVirtual Shopping

ShopperInsights

ConsumerResearch

ConsumerResearch

Nielsen has all the right tools


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Marketers need to understand

what shoppers think,say and do. However

these three things do notalways match


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What do we

know?


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We know that

Shoppers are habitual Making it easy to shop is a good thing

Understanding shoppers is not just about instore research

Shoppers dont always do what they say


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Shoppers are habitual

~70% plan to buy the category(Nielsen Shopper Studies)

50%+ buy their usual product(Nielsen Shopper Modality)

They have a repertoire of 2.5 brands(Nielsen Bases)

~66% will buy the same brand next trip(Nielsen AAC/CPS)


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Current Layout

(Manufacturer block)

Trial Layout

(Flavour block)

Layout did not reflect shopper behaviour

can we make it easier to shop


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Easier to shop means sales increase

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Confi dential & Proprietary Copyright 2010 The Nielsen Company

Change in Sales (Trial Versus Control Stores)

10%

17%

10%7%

2% 1%5%

9%

1%6%

4%2%

Total Category Segment 1 Segment 2 Segment 3 Segment 4 Segment 5

Volume Uplift Value Uplift

Sales improved in trial stores

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87%

75%

Control Store Trial Stores

Category conversion from shopped to bought

Trial stores have higher conversion

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Type of Purchase

45%

43% 6%

5%

52%

50%

Trial Stores

Control Store

Grab & Go Browsed Products Compa red Products

Shoppers find what they need quickly

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Preferred grouping o f section

3%

10%

6%

10%

59%

79%

6%

20%

Dont know

Products grouped by category

Products grouped by brands

Leave it as is

Control Store

Trial Stores

Leave as it is

norm: 54%

Shoppers prefer the new layout


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23

Identify the iconic signaturesA look inside the virtual store


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Virtually real

Base: Stated and Virtual ShopAll respondents (n=1528); ActualNielsen Homescan (MAT 26/12/2009)

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Virtual spend in line with actual

Average Category Spend

$6.70

$8.58

$7.40

Stated (last purchase) Virtual Shop Actual (Homescan)

Base: Stated and V irtual ShopAll respondents (n=1528); ActualNielsen Homescan (MAT 26/12/2009)

No promotionsin Virtual Shop

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Segment share in line with actual

Base: Stated and V irtual ShopAll respondents (n=1528); ActualNielsen Homescan (MAT 26/12/2009)

Virtual Shop

4%

10%

13%

17%

27%

34%

Segment 6

Segment 5

Segment 4

Segment 3

Segment 2

Segment 1

Actual Homescan

3%

7%

14%

21%

21%

34%

Segment 6

Segment 5

Segment 4

Segment 3

Segment 2

Segment 1

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Resulting in higher conversion & spend

Index (Test Vs Existing)

93 10395 102

0

100

200

Retailer 1 Retailer 2

Conversion $ Spend

Better thanexisting

Worse thanexisting

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Harder to find what you want in retailer 1

Couldn't find what I wanted

18%

27%29%

22%

Retailer 1 Retailer 2

Exis ting Test

Base: Virtual ShopNon Buyers (n= 123)


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Understanding decision making at retail

Business issue

Understanding decision making amongst consumers and

impact of in store activities on purchase amongst shoppers

Methodology

DeltaQual using a combination of focus groups,

ethnographic sessions and in depth interviews

Result Changed brand positioning and provided key insights for

the Get Animated campaign along with ways to create andcapitalize on the Delta moments in the Grocery,Convenience and Route channels


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DeltaQual client feedback

Johanna Campbell, Marketing Manager Frucor

Nielsen successfully translated the

consumer wisdom drawn throughDeltaQual cognitive interviewing and

converted them into actionable

recommendations for Frucor whilstpresenting it in a passionate, interactive,

engaging and convincing manner


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Confidential & Proprietary Copyright 2010 The Nielsen Company David Ogilvy (The Father of Advertising)

The consumer does notbehave as they say, they donot say what they think and

they do not think what theyfeel


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Th i f h ib i d i d i


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The importance of the attributes is determined usingregression modelling

Diet Brand B

2 Litre

Regular Brand A

2 Litre

Diet Brand C

2 Litre

Diet Brand B

2 Litre

Respondent 2

Regular Brand A

2 Litre

Regular Brand A

6 pack

Diet Brand A

24 Pack

Regular Brand A

12 PackRespondent 1

Choice 4Choice 3Choice 2Choice 1

% Attribute Importance

50

34

16

Brand

Type

Size

CarbBev

Brand A Brand B

Single 6 Pack 12 Pack 24 Pack

Regular Diet

CaffeineNo

Caffeine

Diet Regular

Cola Non-Cola Other

Single 6 Pack 12 Pack 2 Litre 6 Pack 12 Pack 24 Pack

CaffeineNo

Caffeine

2 Litre

MostImportant

LeastImportant

The less consistent the purchasing of an attribute is, the lower it willbe in the purchase hierarchy


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What shoppers say Vs what they do

Brand

Private Label

Flavour

Pack Size

Segment

Health ClaimPack Type

Discounted

Low..Claimed Importance...High

V

aried..

PurchaseBehaviour.....

Co

nsistent Routine

Repertoire

Rule

Review


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STRONG RESONANCEto Messag ing

LOW RESONANCEto Messaging

Deep Subconsc ious Response testingis a neurolog ica l me asurem ent o fhow we ll consume rs take aw ay key

messages/concepts.

NeuroFoc us captures the subjec t sp rec og nitive response to the keymessages and/ or prod uc texperienc e befo re she/ he ha s timeto think ab out it and ap ply socialfilters

EXCEPTIONAL

GOOD

LEVEL 2

LEVEL 1

LEVEL 4

LEVEL 3

LEVEL 5

NO RESONANCE

Understanding subconscious response


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Identify the iconic signatures

Sales up 11%

http://thearf-org-aux-assets.s3.amazonaws.com/ogilvy/cs/Ogilvy-09-CS-Cheetos.pdf


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Our clients


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Thank you

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NielsenShopperCredentialsClient