Shopper Research

Understanding shoppers behavior

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AGENDA
WHAT IS SHOPPER RESEARCH? WHY DO WE NEED TO STUDY Shoppers ? DECOMPOSING SHOPPERS DECISION MAKING CASE OF HAND AND BODY LOTION HOW WE CONDUCT SHOPPER STUDY?

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What prompts my desire or need to shop?

Dont buy the one we got last time...i want a healthier one.

Honey, were out of cereal...

Where do I choose to shop?

Each decision is framed in its own way.

They sell natural and organic foods there and the check out lines arent long

But which store?

And now Ive chosen which store.....

How do I react to the environment within?

The aisles are well marked. At least I can find the cereal aisle easily and be in and out!

Finally.... Im in the aisle. How do I make my choices?

Whole grain? Organic? We havent tried this before...its good they have a small pack, let me get it
Buy me! Buy me! Buy me! Buy me! Buy me! Buy me!

Ive got 5 minutes before Im due to pick up the kids...

The shopping process takes the consumer through several decision stages.
If I buy the cereal, I get Rs. 12 off on the Biscuits. Ill get those as well.

Do these work in synergy for your category and brand?

Despite doing Pre-launch research, spending so much in Advertising, Channel commission Why my Brand is NOT taking off ??? Biscuits purchased on impulse planned cereal purchase : brand leaped off the shelves and induced switching

What is Shopper Research?

Understanding how ones target consumers behave as shoppers in different channels and formats, and leveraging this intelligence to the benefit of all stakeholders, defined as brands, consumers, retailers and shoppers

WHY TO STUDY SHOPPER ?

More than 70% of purchasing decisions are made in-store Different modes of shopping and each has a subtly different set of requirements in-store Most shopping is significantly influenced by habits, conditioning and culture Without any emotional influence, the working memory discards and forgets information in less than 18 seconds Shoppers use multi-sensory cues with which to evaluate and select or reject products Shopper are increasingly in auto-pilot /grab n go mode

HOW DO SHOPPERS BEHAVE?

Shoppers dont waste huge amounts of energy on everyday shopping decisions They use Heuristics to make quick decisions As people spend more time in the store, they become more purposeful, less likely to explore, and more likely to grab their familiar products. After getting "virtue" categories (essentials), shoppers are more likely to head over to locations that carry "vice" categories (indulgences) Difference in Behavior when shopping alone than when shopping in groups. They Bundle Products[ BEER & DIAPER ]

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key to reaching shoppers lies in understanding that the auto-pilot mode does get disrupted
by external stimuli Shoppers move into the experimental mode your window of opportunity

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Lets Start DIAGNOSIS

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DECOMPOSING SHOPPERS DECISION MAKING

Source : Nielsen

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A CASE OF
HAND & BODY LOTION CATEGORY

HOW DOES IT HELP A MANAGER ?

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decode

shopping modality

discover
specific category dynamics
(compared to cross category norms)

unique shopper mode segments whats hot and whats not?

uncover

channel
synergy

leverage
unseen channel potential

uncover

brand
synergy

unlock
unrealized brand opportunities
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decode

category shopping modality

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Where does your category map on the Involvement-Experimentation grid?

high traction super slippery

INVOLVEMENT

Involvement : How involved are the consumers in brand choice evaluation?

super traction

slippery

Experimentalism : Do they shop on grab & go auto-pilot mode or do they experiment with different brands and engage in scrutiny shopping?

EXPERIMENTATION

Source : Nielsen
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Category Typology : Involvement vs. Experimentation

high traction super slippery

INVOLVEMENT

Toothbrush

32.0

Shampoos and Conditioners Hand and Body Lotion

Deodorant Toothpaste

Hand & Body Lotion is a super slippery category must keep shoppers engaged or they can defect to other brands or stores

27.0

Razors and Blades for Men Bar Soap

Body Wash

22.0

Razors and Blades for Women

17.0

Liquid Hand Soap

12.0 10

super traction
15 20 25 30 35

slippery

Source : Nielsen

EXPERIMENTATION

40

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What are the strategic implications?

INVOLVEMENT
high traction super slippery Constantly keep consumers engaged to ward off threat with advertising, buzz, new introductions, packaging and exciting promos

Dont cut back on ad spend even if share trends are stable. If your consumers defect, it is an uphill battle to win them back.

Challenging to displace brand leaders. If you are the leader, avoid radical brand repositioning which may disrupt auto-pilot mode. Weaker competitors can make lots of noise but it will fall on deaf ears. super traction

While they dont care much about the category, they experiment. Price and promos can easily tip them over.

slippery

EXPERIMENTATION
Source : Nielsen
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Hand & Body Lotion

impulse

purchase triggers
In-store

Impulse purchase (decision to buy category taken in the store) : 27% If shoppers are engaged, opportunity for incremental sales

Diagnosis Checked prices

Shoppers of hand & body lotion are Promotion impulsive, leaving 14 more manufacturers and retailers with a On special promotion 13 chance to increase sales.
Special display

Hand & Body Lotion 27

Vs norm

activation
New Product Activation : High Impact Promotion Activation : High Impact

Pack-induced browsing

This opportunity is dependent upon 22 the level of shopper engagement Browsed through several with the product and purchase 19 activation
Read pack/ingredients Attractive pack Pack stood out

18 5 4 10 2 1

Buzz Index

204

New brand/variant Signage/poster Out of stock

(indexed to personal care categories)

Source : Nielsen

Pre-store Habitual same as usual

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Hand & Body Lotion

impulse

purchase triggers
In-store Checked prices

Impulse purchase (decision to buy category taken in the store) : 27% If shoppers are engaged, opportunity for incremental sales

Diagnosis

Hand & Body Lotion 27 14

Vs norm

Due Promotion to consumers high

On special promotion

activation
New Product Activation : High Impact Promotion Activation : High Impact

involvement with the category, they 13 are highly tuned-into the category and display Specialare very much aware of new 3 products/ variants and promotions Pack-induced introduced. 22 that are browsing By manipulating these factorsBrowsed through several 19 with new, innovative introductions Read pack/ingredients promotions-18 and/ or attractive manufacturers and retailers can Attractive pack 5 achieve increased sales as shoppers will continue to be 4 Pack stood out engaged with the category.
New brand/variant Signage/poster Out of stock 10 2 1

Source : Nielsen

Pre-store Habitual same as usual

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37

Hand & Body Lotion

impulse

purchase triggers
In-store Checked prices Promotion
On special promotion Special display

Impulse purchase (decision to buy category Diagnosis taken in the store) : 27%

The key to triggering purchases If shoppers are engaged, lies in of hand & body lotion opportunity for incremental sales grabbing consumers attention.

Pack-induced browsing

Attention is focused most ctivation heavily on reading packs and Newconsidering ingredients, so we Product Activation : Highmust clearly associate the brand Impact with consumers desired product attributes.

Browsed through several Read pack/ingredients Attractive pack Pack stood out

Promotion Activation : HighImpact

The regular introduction of new brands/ variants, will generate buzz and interest among Buzz Index 204 consumers, and thus fuel (indexed to personal care categories) increased purchases.

New brand/variant Signage/poster Out of stock Pre-store Habitual same as usual Recently advertised Used coupon Spouses preference Kids preference Friend/rel recommendation

Hand & Body Lotion 27 14 13 3 22 19 18 5 4 10 2 1 37 6 13 6 2 3

Source : Nielsen

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Promotional Activation
25

high impact

Promos do engage shoppers and activate purchase

PROMOTIONAL ACTIVATED CHOICE

Liquid Hand Soap Toothpaste Body Wash Hand and Body Lotion

Toothbrush Deodorant Razors and Blades (NET) Shampoos and Conditioners

20

Bar Soap

15

low impact
6

Source : Nielsen

PROMOTIONAL ACTIVITY (% sales on promotion)

11

16

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New Introduction Activation

55

CONSUMER PERCEPTION OF CATEGORY INNOVATION / CHANGE

50

high impact

Shampoos and Conditioners Razors and Blades (NET) Hand and Body Lotion Body Wash

45

40

Toothbrush Toothpaste

New introductions catch attention in the category

35

30

Deodorant

25

Note: Outlier
20

Bar Soap
15

Liquid Hand Soap

low impact
25 30

15

20

Source : Nielsen

CATEGORY CARDIO (% new skus introduced in past 2 years

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Hand & Body Lotion

INSIGHTS

The highly involved and experimental nature of shoppers makes it a precarious category that requires much attention on the part of manufacturers to keep consumers engaged. Shopper interest and purchase is peaked by new introductions, promotions, outside recommendations (buzz) and strong pack designs. Each of these marketing activities should support a strong product positioning that clearly identifies key, desirable product attributes, which, in turn, will encourage shopper engagement with the category and lead to incremental sales opportunities.

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decode

shopping mode segments

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Shopping mode segments

Trendsetters

11%

Uninvolved Auto-pilots

23%
Deal Seekers

17%

22%
Engaged Browsers
Source : Nielsen

27%
Discerning Auto-pilots

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Shopper engagement
uninvolved auto-pilots (23%) discerning auto-pilots (27%) engaged browsers (22%) deal seekers (17%) trendsetters (11%)

experimental auto-pilot

gi es up mn ppohs y o ne l i j es ahcr y do B & dna Hr o up f t ne m v ov n el i ec ned c n ?s not oL i i i

Low involvement

High involvement

Med-High involvement

Med involvement

High involvement

No

Somewhat

A lot

Somewhat

A whole lot

Low impulse

Low impulse

High Impulse Med Impulse High Impulse

Source : Nielsen

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Shopping modes & Triggers

uninvolved auto-pilots (23%) discerning auto-pilots (27%) engaged browsers (22%) deal seekers (17%)

Least Challenging & Most diff. to retain trendsetters (11%)

experimental auto-pilot

Kids preference

Buy the same one

Spouse preference

Coupon

e o s- e p r t r

Buy the same one

Coupon Advertising Friends recommendation Spouse preference Kids preference

Checked prices

Source : Nielsen

e o s- n r t i

Read pack label Browsed several Smelled lotion New brand / variant

In-store promotion Checked prices

In-store promotion Visual pack appeal Read description New brand / variant Tested lotion on skin Smelled lotion Special display Merchandizing

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Channel & Mission

uninvolved auto-pilots (23%) discerning auto-pilots (27%) engaged browsers (22%) deal seekers (17%) trendsetters (11%)

experimental
$store

auto-pilot

Club

Mass $store

Grocery Pharmacy

Pharmacy $ store

r eppohs no ss m l ennahc i i

Restock

Restock

Entertainment Non-food

Special Offer Restock

Entertainment

Source : Nielsen

?des ahcr up not o y h w i l

Season change Replenish lotion Replenish lotion stock winter stock at home at home Needed a smaller Replenish lotion stock Replenish lotion stock bottle for travel / at office at office carrying in bag Someone at home Had an urgent need requested it for lotion at that moment and didnt have it Felt dissatisfied with the current lotion

Season change winter

Season change winter Pampering self Felt dissatisfied with the current lotion Saw a new lotion type

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How do shopping modes and decision rules intersect?

uninvolved auto-pilots (23%) discerning auto-pilots (27%) engaged browsers (22%) deal seekers (17%) trendsetters (11%)

experimental Everyday non auto-pilot Special Needs greasy Indulgent Therapeutic Indulgent Naturals Therapeutic

e u no s c e d l r i i s ne m es t g

Special Needs

therapeutic
driven Therapeutic by rules focused on restorative and replenishment benefits

non-greasy
looking for an everyday lotion, vetoing on greasiness, consistency

naturals
driven by Special Needs rules focused on natural, gentle, nonartificial products

e u no s c ed l r i i s ne m es t g

indulgent
decision rules focused on pampering and scent, other indulgences

special needs
more restrictive rules based on a special skin condition or need, reducing consideration set

Source : Nielsen
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Rules & Moments of Change

uninvolved auto-pilots (23%) discerning auto-pilots (27%) engaged browsers (22%) deal seekers (17%) trendsetters (11%)

experimental
e u no s c ed l r i i s ne m es t g
Non-greasy Special Needs

auto-pilot Therapeutic

Special Needs

Indulgent

Therapeutic

Indulgent Naturals Does not look like a premium product Looks like a prescription product Dont like the way it feels on the skin Dont like fragrance Previous bad experience Came up in conversation Recommendation Advertising Someone in family liked it Merchandizing Tried it at someones home / office Internet blog

Too expensive

Dont want one with fragrance Consistency is too thin / watery Not suitable for sensitive skin Previous bad experience Out of stock Someone in family liked it

Looks like a prescription product

Too expensive

s e u o ev l r t

Out of stock

Out of stock Pack caught attention Coupon In-store promotion

Source : Nielsen

s ne m m dee N t o

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Assortment
uninvolved auto-pilots (23%) discerning auto-pilots (27%) engaged browsers (22%) deal seekers (17%) trendsetters (11%)

experimental
Suave Private label

dna b r

auto-pilot Lubriderm

Vaseline

Gold Bond Cetaphil

Suave Aveeno Olay Neutrogena Private label

Dove

Dove Curel

Fragrance Free

Fragrance Free Aloe

Fresh / clean Nuts & Spice Cocoa Butter

ec na gaf r r

Cocoa Butter Citrus

Fruit Nuts& spice Herbal Fresh / clean Firming Skin smoothing Age defying Aroma therapy

Medicated / sensitive skin Everyday moisturizing Extra moisturizing Extra moisturizing Replenishing / UV protection nourishing skin Large X- Large

Ultra healing Tanning Replenishing / nourishing Aroma therapy Travel Small Medium size Tube

ez s i

y er av t i

Ultra healing Tanning

Large Tube

Bottle with pump Source : Nielsen

kc ap

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Opportunity : Incremental sales and profitability

Weak price veto rules
Incremental sales opportunity

discerning auto-pilots
Steady revenue stream for more premium offerings. Not easily swayed by cheaper prices or promos in other stores

trendsetters

profitability opportunity

engaged browsers

deal seekers uninvolved auto-pilots

Low category impulse incremental sales opportunity High category impulse
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Strong price veto rules

Source : Nielsen

uncover

channel

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Shopper Missions Defined

Re-stock Immediate Intermediate Special Offer Entertainment

To re-stock my home

A routine shopping trip to buy items for TODAY

A routine shopping To take trip to buy items advantage of a for the NEXT DAY special offer or TWO

To purchase a non- food item

To get an urgently To get items needed item or needed for a two quickly MEAL that will be eaten today or tomorrow To get ready-toeat items to eat/ drink right away or before I return home

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Pharmacy

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Pharmacy | Shopping mode segments

High category impulse Incremental sales opportunity

engaged browsers

trendsetters

uninvolved auto-pilots

deal seekers
Pharmacy Leverage trendsetters & deal seekers

Low category impulse

Source : Nielsen

discerning auto-pilots

Opportunity : Could attract engaged browsers by making the shopping experience more engaging

Pharmacy

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Grocery

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Grocery | Shopping mode segments

High category impulse Incremental sales opportunity

engaged browsers trendsetters

Threat : deal seekers make channel profile vulnerable. They can switch channels if they find better deals elsewhere. Opportunity : Attract discerning auto-pilots on restocking mission to drive steady stream of profitable revenue. Attract engaged browsers / trendsetters by offering trendy products and making the shopping experience more engaging.

deal seekers uninvolved auto-pilots discerning auto-pilots Grocery

Low category impulse

Source : Nielsen

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uncover

brand

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Promotion activation
In-store Promotion activated choice
high impact

Curel Lubriderm Olay

Dove Jergens

Private label Suave Neutrogena

Vaseline Aveeno Gold Bond

Nivea

Eucerin
low impact

Promotional activity (% sales on in-store promos)

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HOW To DO IT ?

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Common Methods Used

Accompanied shopping Unaccompanied shop In-store interviews Post purchase analysis Eye Tracking

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TO SUM UP

A deep understanding of key shopper insights help managers to make brilliant use of all assets which shoppers see our brands, packages, equipment, merchandising, pricing and messaging which convert a shopper into a buyer

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