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SHOPPERS . . . What are THEY thinking and are YOU ready?

DeCA/ALA WW Partnership SummitJune 8-9, 2010

Shopper Insights - Focus

• Macro Culinary Trends– Fresh/Less Processed– Home and Comfort– Globalized Food Preferences– Reimagined Food Experiences– Green Consumption– Healthy Eating

• The Path to Purchase– Planning– Trip Decision– Purchases– Product Usage

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Shopper Insights Breakout- Your Role

• Open mind . . . expand your thoughts• Sharing of ideas of what you are doing.• Sharing of ideas of what could be done to capitalize on

these insights.

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Brainstorm ideas will be published and shared as a meeting follow up.

DeCAEAST

DeCAEUROPE

Industry, Distributors,

Media

DeCAWEST

Brainstorm Ideas!

DeCAHQs

MACRO CULINARY TRENDS

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Fresh/Less Processed: Cultural

• The FARM principles still apply with both health and quality being the drivers

Source: THG Healthy Eating Trends 2009 survey; N=1501

% Associating Attribute with High Quality or Healthy Items Used to Judge Healthfulness of Food

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Fresh/Less Processed: Culinary

• Continued success of certain away-from-home brands like Panera that position themselves as fresh/less processed.

• Menu descriptors at innovators have begun building more romantic descriptors that tell a narrative.

• New casual concepts like Paul Kahan’s and Chris Pandel’s keep menus and cooking simple, local and communicate the freshness of their ingredients.

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Home and Comfort: Cultural

• Driven by recession • Consumers rediscover the joys of home cooking• Comfort foods continue to shine• Comfort food NOW…

– Idealized heritage, Americana– Grandma’s recipes updated with a twist– Element of personalization– Sense of time and place– Indulgent yet nutritious– Real foods with high satiety value– NOT artificial/fake ingredients– NOT highly processed imagery– NOT a guilty pleasure

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Home and Comfort: 4-Year Trends on the Classics

Penetration of Comfort Foods Trended2005 2009 4-Year Growth

Chili 39.3% 43.9% 11.7%Fried Chicken 26.2% 28.2% 7.6%Ribs 26.2% 27.1% 3.4%Grilled Cheese 21.8% 25.6% 17.4%Macaroni & Cheese 10.2% 17.3% 69.6%Meatloaf 8.1% 9.6% 18.5%Waffles 7.7% 9.1% 18.2%Catfish 9.5% 9.0% -5.3%Chicken Fried Steak 7.9% 7.3% -7.6%Pot Roast 4.0% 5.2% 30.0%

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Globalized Food Preferences: Cultural

• Consumers are seeking new food experiences and global / ethnic flavor profiles

• Both Boomers (via travel) and Millennials (via their rapidly evolving taste preferences) are moving this trend forward 

• Regional flavors from America’s past play a role as well

• Food TV

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• Holistic Trends study clearly indicates opportunity in many ethnic-based spices and flavorings

• Five Spice• Jerk• Chutney• Chipotle

Common global street food offerings• Korean tacos• Thai noodles • Cuban coffee• Carolina BBQ• Pho• Armenian food (kebabs)

Globalized Food Preferences: Culinary

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Ethnic & Ethnic-Inspired Dishes:Penetration on Non-Ethnic Menus

83.2%

78.3%

77.7%

50.4%

48.3%

39.1%

25.1%

16.5%

13.9%

12.6%

6.0%

3.9%

Italian

Greek / Med

Mexican

Chinese

Cajun / Creole

Japanese

Spanish / Tapas

Thai

Indian

South American

Cuban

Korean

Globalized Food Preferences: Culinary

• Italian, Mediterranean and Mexican are very popular on mainstream menus…but also note the significant influence of Japanese, Spanish, Thai, Indian, and other world flavors 

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Reimagined: Culinary

• Reimagined Home Delivery– Use of community supported

agriculture• Reimagined Fruits, Vegetables and

Meats– Heirloom fruits & vegetables are no

longer exotic but now mainstream in most grocers• Examples include: purple carrots,

cara cara navel oranges, heirloom tomatoes, Christmas lima beans

– Heritage breed• Examples include: Mangelitsa pork,

Jidori chicken, Copper River salmon

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Reimagined: Culinary

• Reimagined Quick Serve Restaurants– Burger Joint: Danny Meyer’s Shake

Shack (NY), Red Mill Burgers (Seattle)– Fried Chicken: Dirty Bird (NY), Stroud’s

(KC)– Fish & Chips: Assault & Battered (NY)– Donut Plant: Crème Brule

• Reimagined Fine Dining – Create food limited only by their own

imaginations – food often characterized by whim, irony and playfulness

– Examples include Alinea, WD-50, El Bulli, Moto

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Green Consumerism: Cultural

 Local

• Local has both geographic and symbolic meanings.

– It is considered fresher because it hasn’t traveledvery far

• Symbolically local food can be expressed through a product’s locale

– Locale expresses the distinct geography of a region which implies quality and taste attributes

– Seen as food with a face

Organic• Consumers understand organic to

mean raised or grown without pesticides or hormones

• Consumers believe that food produced in this way is inherently healthier

How Was It Grown?

Where Was It Grown? By Whom?

  Natural

• Consumers use the word natural to describe what they are seeking – nothing artificial and free of the “bad stuff”

• However, consumers are skeptical of “natural” as a marketing term as they think it is overused and therefore devalued

What’s In It?

Fresh• Fresh implies a shorter

distance of travel from the grower to the consumer’s hand

• Fresh implies real since the product is perishable

When Was It Grown?

Health and Wellness

• “Good health” goes beyond physical condition, as H&W trends show that the mind-body-spirit connection is what most consumers associate with the concept of well-being.

• Today’s health & wellness involves:– Wellness aspirations, including weight

control, cognitive health and energy, digestive health, defense and immunity, stress and relations, skin health and beauty.

– Health enhancers and risk prevention.– Ethical beliefs and preference, including

natural, organic and Fair Trade.

Sources: Iconoculture Point of View; The Futures Company Global Monitor, Consumer Targeting in Food & Drinks

Healthy Eating

Health eating is important to the majority of households

Source: Healthy Eating Trends 2009 survey; N=1501Question: Thinking about the amount of effort your household devotes to eating healthy, how important

would you say healthy eating is in your household?

4% 4%

24%

45%

23%

0%

10%

20%

30%

40%

50%

60%

Not at all important, we never worry about it

Hardly important Somewhat important Fairly important Extremely important, we always make healthy

eating choices

Importance of Healthy Eating

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17%

18%

18%

24%

26%

51%

64%

77%

Learning about who made the product

How many organic ingredients are listed on the label

Learning about how the product is made

How short the ingredient list is

Seeing what the product doesn't have

The quality of the ingredients

How fresh the product appears

The "nutrition facts" panel

Specificindicatorsof quality

Source: Healthy Eating Trends 2009 survey; N=1501Question: There are many ways to evaluate food and beverages. Which of the following statements describes

what you use to judge the healthfulness of products when shopping for food and beverages?

Items Used to Judge Healthfulness of Food

Healthy Eating

Consumers judge the

healthfulness of products

through more than just labels

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Health and Wellness

• Most consumers are looking to avoid fats, salt and processed sugars.– Over half of all consumers are avoiding:

• Cholesterol, trans fat, animal fat/butter, salt, HFCS

• There is still a push for presence of positive.– Consumers are seeking “added values” in their food and

drink.• Well over half of consumers say they are trying to get more

of many ingredients (e.g., fiber, Vitamin D, calcium, whole grain) regardless of the importance they place on healthy eating.

Source: Healthy Eating Trends 2009 Survey

When Eating Outside the Home, Focus on Health is Less Important

• Consumers have more control over healthy options when they are at home

• When dining out focus on social time, enjoyment and indulgence

– Consumers say they don’t want to overdo it, but that they allow themselves to order items they will enjoy, even if they are richer or heavier than things they would typically have at home

– Like with other indulgences, the goal is to avoid doing it too often or having too much

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• Health & wellness– Fresh/less processed offerings– Healthy eating initiatives

• Greater at-home opportunities– Make it easy for patrons to get everything they need to

prepare meals at home – Help patrons create restaurant-inspired meals at home

√ Meal Solution Centers / Recipe of the Week Stations– Help patrons make favorite comfort foods at home – ‘Brown bagging’ initiatives

• Global food preferences– Help patrons experience new foods and flavors

√ Increase sampling opportunities

Macro Culinary Food TrendsThought-Starters

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The Path to Purchase Food & Beverage

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Patrons Attitudes are Generally Favorable Towards Grocery Shopping

Feelings about shopping% Patrons Indicating

Index to Total US

I like shopping 37 101

Shopping is a chore, but is not a difficult one

36 99

I really enjoy shopping 14 115

I dislike shopping 4 72

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Compared to Total US, Patrons are more likely to indicate they enjoy shopping

Source: ACNielsen November 2009 What’s Cooking Survey

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Understanding the Entire Path-to-Purchase Leads to Successful Shopper Marketing

The Path-to-Purchase represents all aspects of how the consumer experiences a product or solution, from initial need state, to the shopping experience, and finally through product usage

Step 2

DURING AFTERBEFOREPath to Purchase™

User Satisfaction

Create Demand

Choose Outlet

NavigateStore

Make Selection

Step 3Step 4

Step 5

Step 1

?

Consumer Shopper Consumer

Step 2

DURING AFTERBEFOREPath to Purchase™

User Satisfaction

Create Demand

Choose Outlet

NavigateStore

Make Selection

Step 3Step 4

Step 5

Step 1

?

Consumer Shopper Consumer

Source: Cannondale Associates

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Planning Purchases Usage• Creating a

shopping list

• Planning weekly meals

• Searching for and using more coupons

• Shopping closer to home

• Consolidating trips

• Shopping multiple formats for specific trip missions

• Sticking to list• Use of store

flyer and coupons for best deals

• Purchasing lower cost alternatives or eliminating

• Cooking more• Eating more

leftovers• Brown bagging

Trip Decision

Changes in Shopping Behavior Happen at Various Points in Purchase Process

Consumers are reevaluating how they buy, what they buy and where they buy

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Pre-Trip Activities% Trips Total US

Made and brought a shopping list 34Checked my pantry or refrigerator 23Asked other household members what they wanted 20Looked at sale items in a store circular or ad 20Brought manufacturers' coupons 19Brought this store's frequent shopper card 17Brought your own bag 14Checked for manufacturers’ coupons 13None of the above 37

Source: TNS Shopper 360; 2009 Survey; Total US

Creating a Shopping List is the Most Common Pre-trip Activity

Patrons Shopping Strategies Include Lists, Coupons and Store Circulars

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• Three-fourths of patrons use a shopping list

• Two-thirds use coupons

• Over half use a store circular

Source: ACNielsen November 2009 What’s Cooking Survey

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The Needs of the Trip Influence Channel Selection

Source: TNS Shopper 360; 2009 Survey; Total US

% Channel Trips Indexed to % Total U.S. Trips

Total US GrocerySuperCenter Club Mass Drug Dollar

Military Commissary

Need States % Index Index Index Index Index Index Index

Speedy Fill-In 17 106 100 94 100 65 112 65

Browsing 17 100 88 124 129 88 106 65

Urgent Item 13 77 100 62 131 208 123 38

HH Stock-up 13 115 131 123 38 8 23 262

Everyday Savings 12 67 175 183 142 33 200 225

Bargain Hunting 12 125 42 50 75 200 42 25

Just in Time Items 10 100 90 80 90 130 90 60

Immediate Consumption 7 86 57 43 57 86 100 43

Base= Total Trips 126,890 65,791 24,760 7,307 9,481 9,170 5,247 787

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Reasons for Store Choice% Trips Total US

I could get to this store quickly 29The everyday prices are usually lower at this store than at other stores

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I could quickly find and buy what I needed at this store

20

It’s a part of my regular routine 18This store carries all or almost all of the products I want to buy

17

I could easily find the products I wanted to buy because I know the layout of this store

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Source: TNS Shopper 360; 2009 Survey; Total US

Convenience is a Key Driver in Store Selection

How Patrons Decide Where to Shop% Patrons Indicating

Index to Total US

I go to different stores depending on the type of trip (i.e., stock-up vs. fill-in)

42 100

I just go to the same store all the time 36 110I often change stores because of interesting advertising or promotions

17 79

I go to different stores to buy different items 22 92

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Compared to the Total US, patrons are more likely to indicate they go to the same store all the time

Patrons Shop Different Stores Based on Their Needs

Source: ACNielsen November 2009 What’s Cooking Survey

Patrons are Making Multiple Trips During the Week to Pick Up Groceries

How Patrons Usually Shop for Dinners Served in an Average Week

% Patrons Indicating

Index to Total US

I buy most of the groceries I need for the week‘s dinners, but may do 1-2 additional small shopping trips

42 93

I buy all of the groceries I need for the week's dinners in one trip

39 105

I make several shopping trips during the week to buy groceries for the next few days

11 108

31Source: ACNielsen November 2009 What’s Cooking Survey

Patrons are More Likely to Browse and Go Up and Down the Aisles

In-Store Behavior% Patrons Indicating

Index to Total US

I generally know which parts of the store have the items I want and just visit them

35 86

I go up and down all the aisles and pick up items I want when I see them

27 117

I know what I want, go straight to where it is, and get out as quickly as possible

17 90

I like to take my time and browse all parts of the store

13 123

32Source: ACNielsen November 2009 What’s Cooking Survey

Patrons are Likely to Know the Prices of Most of the Items and Notice Price Changes

Price Awareness% Patrons Indicating

Index to Total US

I know the prices of most of the items and always notice when the price changes

46 97

I don't necessarily know all the prices but I generally notice when the price changes

34 108

I know all the prices of the grocery items I buy regularly

10 82

I don't know about or notice the prices of grocery items

3 102

33Source: ACNielsen November 2009 What’s Cooking Survey

Patrons Have a Broad Definition of What it Means to “Cook”

What Patrons Consider “Cooking” % Patrons Indicating

Index to Total US

Preparing most of the food using boxed helper products

77 100

Preparing from scratch using basic ingredients 77 98Barbequing 64 101Baking frozen food in the oven 41 104Reheating leftovers 37 104Adding a few ingredients to a prepared meal 33 108Microwaving a frozen meal 24 95Serving a store bought prepared meal 16 100

34Source: ACNielsen November 2009 What’s Cooking Survey

Most patrons associate cooking with taking care of their family

Dinner Decisions are Influenced by What is on Hand

How Dinner Decisions are Made% Patrons Indicating

Index to Total US

I look in the fridge/pantry and decide what to cook 74 110I think of dishes I know how to make 54 107I ask others in the HH what they want to eat 52 116I decide based on how much time I have to cook 49 103I cook whatever is quickest/easiest to make 43 102I plan the meals as I shop for groceries 41 91I look for recipes and make a shopping list 30 101I cook whatever takes the least amount of time to clean up

18 106

I use websites or other guides to plan meals for the week 12 95

35Source: ACNielsen November 2009 What’s Cooking Survey

Compared to the Total US, patrons are more likely to indicate to seek input from others in the household

Of the Patrons Who Eat at Home, Two-thirds Indicate Eating Dinner Together

Who Eats Dinner at Home% Patrons Indicating

Index to Total US

The entire family/all HH members eat together 66 109I eat alone 15 74Most/all HH members eat at different times 10 113

36Source: ACNielsen November 2009 What’s Cooking Survey

Compared to the Total US, patrons are somewhat more likely to eat dinner together

• Patrons attitudes are generally favorable towards grocery shopping. – Compared to US average, patrons are more likely to browse and go up and

down the aisles• They are making multiple trips to the grocery store during the

week and shop different stores based on their needs.• Patrons are aware of prices for most items and are likely to

notice price changes.– Patrons shopping strategies include shopping lists, coupons and store

circulars• Dinner is often decided by what’s on hand and will frequently

include the entire family.– Most patrons associate cooking with taking care of their family

Path to Purchase Summary

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• Continue to communicate savings as many patrons are shopping other value channels and are aware of price and price changes.

Improve signage to show savings and improve price awareness.

Build club section outside of regular aisle to stimulate club sales.

• Encourage stock-up to ensure patrons have the items they need on hand for every meal occasion.

• Leverage existing in-store behavior (browsing and going up and down the aisles) to build the basket.

• Help patrons continue to take care of their families and connect over food by offering meal ideas/solutions based on current trends (e.g., fresh/less processed, classic comfort foods, ethnic-inspired dishes, etc.)

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Path to PurchaseThought-Starters

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• What patrons consider “cooking”: Set up stations around the store to provide ideas for breakfast areas, salads, meal solutions, trying different types of produce, etc.

• Help patrons plan their path to purchase in the commissary√ Leverage the online shopping list√ Provide links to coupons / circulars√ Build database of patrons to send information

• Since patrons really enjoy shopping, create a social club sampling event with coffee and cookies, etc.

√ How can we make shopping more fun in store?

Path to PurchaseThought-Starters

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The Evolving Shopper / Patron . . . Are YOU Ready?

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Brainstorm ideas will be published and shared as a meeting follow up.

Share YOUR

brainstorm ideas!

DeCAEAST

DeCAEUROPE

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DeCAWEST

Industry, Distributors,

Media