Retail research

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Grocery shopping influence

2015

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The way we shop is constantly changing

“Shopping Habits”49% now shop in Aldi or Lidl, compared to 24% in 201224th November 2015

“How Christmas shopping habits are changing”13th August 2015

“Customer shopping habits pop back to the 70s, says John Lewis”16th October 2015

“Supermarkets must adapt as weekly shop dies out, says industry chief”6th October 2015

“How People Buy: An investigation into the consumer decision journey”

“The death of the weekly supermarket shop”5th October 2014

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Why are we talking about this?

Changesin grocery shopping

…

Challenge to attract

and maintain shoppers

…

Rise of the discount grocery stores…

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Our aims

What influences people’sdecision to shopwhere they shop

Opportunities to overcomethe challenges faced

by supermarkets

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How we did it

Asked to select supermarkets they think are best basedon different occasion and different product aisle

Respondents answered about where they shop and why

Verbatim collected about individual items or rangesthey’re prepared to make a special trip for

2,000 nat rep sample of the UK

Desk research from industry reports and planning tools

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What did we find out?

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Key findings

Little & often Differentiation

Tailoringthe message

Growing popularity forsmaller top up shops- suit busy lifestyles

Consumers struggle to find much difference betweenthe major supermarkets

Different age groups have entirely different reasons for shopping where they

shop

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Key findings






shop

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A ‘little and often’ approach to grocery shopping

32%“I tend not to do a main weekly shop any more”

43%“Smaller top up shops suit my lifestyle”

Source: GNM Grocery survey 2015, base 2127

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Little & often in the marketplace now

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Shopping more often meanswe shop in more places

Source: TGI Clickstream, Q2 2015Base: All adults who have shopped with: Aldi, Asda.com, Asda, CoOp, Iceland, Lidl, M&S, M&S Simply Food, Morrisons, Ocado, Sainsbury’s Tesco, Waitrose, Watrose.com

+

+56%

35%UK main shoppers, number of different

stores shopped at in last week

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Key findings






shop

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A convenient location is the main reason people choose where to shop

Location Best prices

44%51%

Q: Please choose the top 3 reasons why you decide to use a particular supermarket for your grocery shopping?

Loyalty scheme

28%


Top priority 2nd priorityTop priority

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Age alters your priorities a great dealUnder 35’s Over 55’s35-54’s

Advertising& wom

Other facilities

Price sensitive

Offers/promotions

Loyalty scheme

Opening times

Good parking

Freshness/quality

Customer service


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One message fits all?Tesco, Brand Guarantee

National Pressquals, mids & red

tops

Television

Source: Nielsen Ad Dynamix Jan-Nov 2015

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Key findings






shop

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Differentiation is problem


“There is little difference between the major

supermarkets”

45%

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Major supermarkets are scoring lowerfor differentiation

Source: Lightspeed GMIMINTEL

Attitudes towards and usage of selected supermarket brands, August 2015

Lidl Aldi

M&S Simply Food

Asda

Tesco

Sainsbury’sMorrisons

Waitrose

Iceland

The Co-operative

60

50

40

30

20

10

0

0 10 20 30 40 50

Trust (%)

Diff

eren

tiat

ion

(%)

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Campaigns can be very similar…

Source: Nielsen Ad Dynamix Mar-Apr 2015

?

?

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Campaigns can be very similar…


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…across a number of supermarkets


? ? ?

?

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…across a number of supermarkets


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Lack of differentiation means likelihood toswitch is high


“I will often switch shopif it proves to be quickerand more convenient”

49%

Lots of supermarkets claim to be cheapest. Have you noticed any major differences between retailers on price? Does it affect where you shop?”

Difficult to create a point of difference with pricing

Source: Mintel, Supermarkets Nov 2015 (discussion group verbatim)

“Sainsbury’s can often be more expensive for most

things. Then again, sometimes Tesco is more

expensive for some products yet Asda can be

more expensive for others. Generally there

isn't much of a difference.”

Female, 25-34, C2

Lots of supermarkets claim to be cheapest. Have you noticed any major differences between retailers on price? Does it affect where you shop?

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Own label products are growing in popularity and can be a key differentiator

Source: Mintel

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People will make a special trip for some items


Tesco – their ‘free from’ range is extensiveand amazing

German sausagesfrom Lidl

Be good to yourselffrom Sainsbury’s

Gourmet ready mealsfrom M&S

Co-op for theirbakery items

Iceland party fayre rangeSimply the best

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M&S has carved a real niche in this area focusing on quality of their own label

Which supermarket is best for a special occasion meal?

25% 13% 13%


M&S for special occasions. Always a good range of nice food, flowers also of high quality

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Standing out from the crowd is key to building an influential retail brand…

To become more influential, retailers need brand activity that…

• Says interesting things • Is innovative• Is inspirational

Source: Guardian Influential Brands research 2015

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10.0 20.0 30.0 40.0 50.0 60.0 70.00%

10%

20%

30%

40%

50%

60%

70%

…and influential brands have greater brand loyalty

Overall influence score

Bra

nd lo

yalty

Source: Guardian Influential Brands research 2015

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addressing these themes in media planning

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Newspapers are a little and often media platform

National newspaper specialist sections

National newspaper ads - print

National newspaper ads - print + digital

National newspaper editorial

National newspaper - all paid

National newspaper - all paid + editorial

110

128

166

175

223

317

“The adverts are there constantly, so they are like a constant reminder,‘Look, I’m available,’ ‘Do you really want to buy me? I’m here, come and get

me’”Steven, 40, Mirror reader

Source: Newsworks, How people shop, 2015

3xMore effective

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Targeting the message on Guardian platforms

Under 35’s Over 55’s35-54’s

Education

Film

Environment

Travel

Media

Source: TGI clickstream 2015 Q3Base: all adults

Fashion

Observer Food MonthlyWeekend magazine

Culture

Media

Observer magazine

The Observer

Saturday Guardian

Observer Food Monthly

Life & Style

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3000+

Panel of Guardian Readers

Cross Platform Campaign Effectiveness Testing

The average food and drink campaign tested delivered above average results*

Ad recall

Left a positive impression of the advertiserThe campaign was relevant

Audience testing on the Brand Aid panel

+6%

+33%

+7%

Source: GNM Brand Aid Panel*compared to average campaign tested on the Guardian

Creative Pre-Testing

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Create a point of difference:Kerrygold: Tales of City Sue | Print

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Create a point of difference:Kerrygold: Tales of City Sue | Online

35,000+ unique visitors

6,000+ competition entries

+58% increase in brand

favourability

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Key take outs

Little & often Tailoring the message

Differentiation

Cater for a little and often

approach to grocery

shopping

Gentle persistent

reminders for ‘little and

often’ advertising approach

Appeal to different

audiences.Tap into what’s

important to them

Testing to understand what works

well

Build on strength of own

label ranges

Inspiring and interesting

communications

Boosting influence