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10 Shopper
Insights that You Must
Know and
Dos&
Don’ts
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These shopper insights are importantbecause …
• Contribute to our knowledge andunderstanding of in-store shopperbehaviour
– Use this knowledge to adapt in-store environments
to better meet shopper needs
– Use this knowledge to help brand wins at the pointof sale
• Highlight the importance the store
environment has on the shopper – Better assess shopper needs when developing retail
strategies and category solutions
– Understand the implications of shopper insights
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Where do these insights come from?
• Extensive shopper researchcarried by Zdology andResearch International Chinaacross a number of categories
– 100+ shopper researchprojects
– 3000 hours of in-store video
• Partnership projects with majorretailers
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3
5
7
9
Shoppers have difficulty making decisionsShoppers want to feel smart when making decisions
Shoppers’ limited ability to process too much information
Shoppers use memory to give meaning to objects
Shoppers need consistent messages in and out of the store
Discontinuity creates triggers to attract shoppers’ attention
Shoppers recognize visual stimuli most easily
Shoppers use familiar segments to speed up their selection process
Shoppers’ tunnel vision and “boomerang” behaviour
Shoppers need to be reminded of the items they need
10 SHOPPER INSIGHTS
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4
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1. Shoppers have difficulty makingdecisions
• More choices, more difficult to make a selection• It is very common for shoppers not to know exactly what
they want.• Shoppers need information/education to make a decision.
1
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1. Shoppers have difficulty makingdecisions
1
0
20
40
60
80
100
120
1996 2000 2004 2006
Avg. # SKUs Carried by a Supermarket - Shampoo
Source: CCFA Chain Store Annual Report
• 46% shoppers spend3min+ in front of shelf
• 52% shoppers pick up3+ products
Source: Mini-Market Shopper Research
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1. Shoppers have difficulty makingdecisions
• More choices, more difficult to make a selection• It is very common for shoppers not to know exactly what
they want.• Shoppers need information/education to make a decision.
1Dos
• Education in store throughrelevant POS materials
• Train promoters on how to
facilitate shoppers‟ selectionprocess
Don’ts
• Assume shopper know how tochoose products
• Overwhelm shoppers with POP
materials!
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• Shoppers want tomake a wise and
smart decision.• They also want to be
seen by peers asmaking the right
choice.
I Want “Cheap”
I Want “Value”
I Want to Be Smart!!!
2. Shoppers want to feel smart whenmaking decisions
2
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Do you think theshopper will feelsmart with thispromotion?
2. Shoppers want to feel smart whenmaking decisions
2
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• Shoppers want to make a wise and smart decision.
• They also want to be seen by peers as making the rightchoice.
Dos
• Focus on how to make shoppersfeel that they‟ve made a smart
decision rather than on the deal
per se• Emphasize “Smart Choice” in
promotional activities.
Don’ts
• Disappoint shoppers, even afterthe sale (e.g. high-low pricestrategy)
2. Shoppers want to feel smart whenmaking decisions
2
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3. Shoppers’ limited ability to process too
much information• The mind can only process 5-7 pieces of information
• Thousands of stimuli exist in a store: – Some information is compressed
– Some information is screened out
• Too much information leads to “lock out”
Result: Only less
than 50% of shoppersare able to recall anyavailable POSM!
3
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3. Shoppers’ limited ability to process too
much information
3Dos
• Stimuli need to be clear and
unambiguous• Create relevant in-store
communications that helpshoppers make the right choice
Don’ts
• Overwhelm shoppers with clutter
in store and on the shelf
• The mind can only process 5-7 pieces of information
• Thousands of stimuli exist in a store: – Some information is compressed
– Some information is screened out
• Too much information leads to “lock out”
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What’s this
brand?
4. Shoppers use memory to give meaningto objects
• Shoppers need to be given a clear stimulus in order toaccess their memory.4
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What’s this
brand?
• Shoppers need to be given a clear stimulus in order toaccess their memory.
4. Shoppers use memory to give meaningto objects
4
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What’s this
brand?
4. Shoppers use memory to give meaningto objects
4
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• Shoppers need to be given a clear stimulus in order toaccess their memory.
4. Shoppers use memory to give meaningto objects
4Dos
• Use visual stimuli that areconsistent with what shoppersknow for better memory retrieval
• Use existing pathways – colour,shape, font…
• Merchandising tools need tohave meaning
Don’ts
• Use non-standard font, colour orshape
• Use visuals that inconsistent with
those used in other channels: e.g.TV ad, print
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5. Shoppers need consistent messages inand out of the store
5
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• Shoppers need consistent messages to make thetransition from consumers to shoppers.
5. Shoppers need consistent messages inand out of the store
5Dos
• Use 360-degree communication
• Align above- and below-the-lineactivity
• In-store communication alsoneeds to be aligned withshoppers‟ needs and mission
Don’ts
• Don‟t break the dialogue at POS
by sending a different and/ orirrelevant message.
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6. Discontinuity creates triggers to attractshoppers’ attention
• The mind ignores what it knows and focuses ondifferences6
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6. Discontinuity creates triggers to attractshoppers’ attention
• The mind ignores what it knows and focuses ondifferences6
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6. Discontinuity creates triggers to attractshoppers’ attention
6Dos
• Enhance shelf design &merchandising tools by using:
– Different shelf layouts
– Different lighting intensities
– Different flooring – Curved designs
– Different colour patterns
Don’ts • Design without any discontinuous,
stimulating element
• The mind ignores what it knows and focuses ondifferences
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7. Shoppers recognize visual stimuli mosteasily
From “flashy” visuals …
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… to more subtle but
unique approaches.
7. Shoppers recognize visual stimuli mosteasily
7
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7. Shoppers recognize visual stimuli mosteasily
What’s this ?
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• Shoppers can process information in visual form (e.g.pictures) much more easily than words.
7. Shoppers recognize visual stimuli mosteasily
7Dos
• Use pictures/visuals
• Simple words such as SAVE,SALE, FREE…
Don’ts
• Use wordy text in POS materials(shoppers won‟t read them!)
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8. Shoppers use familiar segments tospeed up their selection process
8• Shoppers first sort out what is not relevant, thenchoose among the remaining products.
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8. Shoppers use familiar segments tospeed up their selection process
8Catfood
Cattreats/ toys
Catlitter
Pethealth
Dogwalking
Dogtreats/ toys
Dogfood
• Seven distinct category segments have been identified• Little association between cat and dog food• Pet health segment is associated with both cat and dog
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• Shoppers first sort out what is not relevant, then chooseamong the remaining products.
8. Shoppers use familiar segments tospeed up their selection process
8Dos
• Make it easy for the shopper tosort out what is and is notrelevant
• Organize products based on howshoppers make decisions
• Think about needs-based shelflayout
Don’ts
• Organize products on the shelf ina way that is not aligned withshoppers‟ selection logic.
• Organize the store in a way thatshoppers need to spend moretime to find the brand they want.
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9. Shoppers’ tunnel vision and“boomerang” behaviour
• Shoppers have a tunnel vision whenviewing fixtures at eye level.
• Also, if they cannot find what they wanthalf-way down the aisle, they usually turn
round and leave the fixture.
Module 1 2 3 4 5 6 7 8
Shelf 1
2
3
4
5
6
7
8
Eye level
6% - 10%
4% - 5%
3% or below
Corridor side
% of interaction
9
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• Shoppers have a tunnel vision when viewing fixtures ateye level.
• Also, if they cannot find what they want half-way down
the aisle, they usually turn round and leave the fixture.
9. Shoppers’ tunnel vision and“boomerang” behaviour
9Dos
• Place relatively weak brands ateye level, so they stand a betterchance to be noticed
• Place your brands close to themain entrance of the fixture
Don’ts
• Don‟t expect shoppers to go the
extra mile to find your brandbecause they won‟t!
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10. Shoppers need to be reminded ofthe items they need
10Planned but not purchased
instant noodle Planned and Purchase instant
noodle Not planned but purchased
instant noodle
Impulse purchase rate analysis
Why? – In-store triggers
No
Yes
Closure rate analysis
Why? – In-store barriers
Details of preplan
Planned to buy instant noodle?
Yes
Purchased
instant noodle or not?
Changed Plan or not?
Why? –
In-store impacts
Yes
74%
26%
12%
62%
33%
No
71% of shoppers make their final purchase decision in store!
100%
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10. Shoppers need to be reminded ofthe items they need
10Not planned but purchased
instant noodle
Impulse purchase rate analysis
Why? –
In-store triggers
26% Impulse Purchase
3
6
29
61
Reasons for Impulse Purchase - (%)
Base=All Hypermarket Impulse Purchasers
I was reminded by in-store stuff
It is on promotion now
Recommended by accompanier
Recommended by promoter
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10. Shoppers need to be reminded ofthe items they need
• „Breakfast solution‟ – “Squeeze a minute into your morning”
• Reminding shoppers to buytheir morning fresh juice withtheir newspaper.
10
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10. Shoppers need to be reminded ofthe items they need
10• Simple “meal solution” approach. • Increasing value of purchase with pasta and cook sauces.
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• Grouping categories in line with shoppers‟ logical
selection process triggers their memory and leads tomore sales – whether planned, unplanned or impulse.
10. Shoppers need to be reminded ofthe items they need
10Dos
• Organize the fixture aroundshoppers‟ needs and mission to
make the most of their limitedtime at POS
• Create in-store solution centers
Don’ts
• Use secondary displays withillogical category adjacency
• Arrange the fixture based on
what makes sense to theCategory Manager!
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Summing up
• Consumers and shoppers are twosides of the same coin, henceconsistency is needed in ourcommunications.
• The store environment has
enormous impact on shoppersand their behaviour.
• In order to influence shoppers toour advantage, understandingwhat makes them “tick” isfundamental.
• Therefore, shopper insights arekey to win “in the last mile”.
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Thank you for your attention!