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Present and Future of Promotion at Point of Sale

The need for innovation in the promotion concept

Presented in

Consumer Adhoc


Nowadays, every shopper is looking for different things at their point of sale 28%

17%

45% • Price

• Offers and promotions • Store card advantage • Visits several outlets looking at price

Offers

Price and Offers

• Store card advantage • Offers and promotions • Distribution of brand

Price

11%

21%

Brand-loyal/seeker

• Brand-loyal/seeker

• Home delivery

• Does not use store cards

• Shop over the Internet or by phone

• Does not look for offers

19%

55% Brands and Services

Internet shopping – Young people

3%

• Brands

• Telephone shopping

• Time

• Home delivery

• Service

Complete

Delivery – Older people

Consumer Ad-Hoc


The majority do not fall for just any promotion If they find a product on promotion (%)‌ Primarily standing out ‌

They do not even consider it, they buy the

Cosmetics Chocolate

19,7 19,7

product they were going to buy

If it is among their

42,4 42,4

more regular brands, they buy it They buy

29,5 29,5

more units They take advantage of it, regardless of the brand

8,4 8,4

Sliced loaf Soups Biscuits Fabric softeners Detergents Milk Preserves Oils Cellulose products Bakery products Sweets Bleaches

Consumer Ad-Hoc


Preferring the more rational advantage, without conditioning their emotional choice ‌ the brand A preference that is understood after finding out that buyers (%):

Promotions preferred by the buyers (%)

Advantages card

Gift

More units/

3,8 3,8

45.2 Get used to buying the same brand

4,8 4,8

43,6 43,6

more product

Discount direct

47,7 47,7

Have 2 or 3 brands

38.2 Have no preferred brand

16.6

Consumer Ad-Hoc


But what does a promotion mean? “A series of activities whose purpose is to make something known or increase its sales.� RAE

Promoting is to raise or make commercial items and qualities, valuable, ...


The Point of Sale is determinant for the promotion of innovations; generating a greater impact on the intent to buy Future intention of consumption among those who recall the product, by medium 90 80 72 70

65 62

60

55 48

47

50

43

45

43

31 30

26

25

22 20

50

49

38

37

40

55

53

50

16

18

21

26

34

33

37

36

26

22

10

%

0

Point of Sale

Advertising

Both

April 2008 wave. 9995 online interviews

The intention of consumption - average of the last 15 innovations – would vary if consumers recall having seen the product ‌

Solely at the Point of Sale

49.4

Solely from Advertising

In both 29.4

53.6 Consumer Ad-Hoc


Making the innovation known about, is also a form of promotion

15 1

4

8

45

Location Promotional Hanging billboard

14 7 39 613 19 44 43

1 3 36 2528 34 17 37 2426 33 40 2229 32 16 30 41 2335 27 38

20

10 11 9 12

Location Products of the Year “Grand Prize for innovation”

2 5 18 21 31 42

Adhoc Product of the Year Promotion study at Alcampo. September 2997, 50 EyeCam® interviews

Consumer Ad-Hoc


However, it must stand out in a special, differentiated way The promotion stands out more in the areas with lower promotional saturation, with more isolated promotions, which make them unique 4

The promotion/hanging billboard stands out above the norm (EyeShare速, viewing quota) in the following sections:

High Exposure

>120

Samll Peque単o Electrical Electrod. apliances

Cured

charcuter鱈a meats Yohurts yogures

<80

Low Exposure

1.Cured meats 2.Small electrical appliances 3.Yoghurts and dairy desserts

80-120

1

3

'

Entrada Entrance

Entrada Entrance

Adhoc Product of the Year Promotion study at Alcampo. September 2997, 50 EyeCam速 interviews

Consumer Ad-Hoc


At what point does promotional stimulation become excessive

â&#x20AC;&#x153;

of every 10 buyers have not noticed it , or cannot answer on recall of the advertising or billboard at the Point of Saleâ&#x20AC;? Source: In-Store interviews in Studies done at till exits


An

overload of information

and communication at the Point of Sale causes

the buyer not to pay any attention to them, and the PLV ends up being perceived as .

just another piece of decoration

Source: TNS Qualitative In-Store

Consumer Ad-Hoc


W

ith so many categories in the store being shopped subconsciously for habituated purchases, retailers need to offer significant benefit in terms of convenience or value to make any new concept work in-store. At the same time, continuous over-claiming, low impact price deals and poor product development have devalued our traditional mechanics to make them meaningless. I think it likely that by 2015 price will no longer be a competitive tool: everyone will have to sell at the same low price unless they can demonstrate a palpable difference. Convenience may well be the factor that attracts the premium. In consequence, in-store layout and communication will be based on the â&#x20AC;&#x2DC;life shapesâ&#x20AC;&#x2122; of a storeâ&#x20AC;&#x2122;s shoppers.

Siemon Scamell-Katz Founder of TNS Magasin

Consumer Ad-Hoc


The buying experience as …

value The total value of our sales proposal is the sum of the …

Intrinsic value of the product

Traditional ‘Promos’

From the Reason …

… to the Emotion!

+

Value from buying experience

1 2

The Setting, feelings and emotions adapted to the product The Technology, the faster purchase that is more pleasant and, above all, customised (adapted to each customer) Consumer Ad-Hoc


The appearance can help us ...

Consumer Ad-Hoc


The appearance of the setting attracts the customer, keeps them in the establishment for longer … ...and they buy more What do the buyers want in the shop of the future?

‘To

guarantee optimisation of time, offer easy shopping in a

pleasant atmosphere,

starting with factors like the lighting or the

ambiental contamination.

elimination of

Source: Data published - Estudio Tienda del Futuro Alimentaría/Food shop of the future Study – carried out by TNS

Consumer Ad-Hoc


Technology can help us ...

Consumer Ad-Hoc


Technology can help us ...

Consumer Ad-Hoc


Making the shopper’s life easier, a more pleasant and efficient buying experience The smart cart will let you locate products in store, check prices and promotions, upload recipes and even checkout

Muy attractive atractivo Very

Seguro lo utilizarán Likelihood to use

65%

en primer lugar

57%

Total

41% 18%

23%

Total

Americas

Reino Unido UK

España Spain

Alemania Germany

China China

Japan Japón Asia

Francia France

9%9%

19%

Europe Europa

18%

17% 16%

Canada Canadá

France Francia

Asia

32%

Reino Unido UK

17% 8% Alemania Germany

10% Japan Japón

China China

USA USA

Americas

35% 28%

España Spain

32%

25% 23%

Canada Canadá

23%

43% 37%

28% 24%

USA USA

52% 39%

Innovación votada First place innovation votes

Europe Europa

Source: TNS Study on Measuring Retail Futures. January, 2008. 4,500 online interviews

Consumer Ad-Hoc


Providing useful, specific information for each customer, and at the right place just in time Walk near your favourite shops and your mobile phone will tell you about sales, products and special promotions Seguro lo Likelihood utilizarán to use

novedoso

76% 31%

25%

Total

48% 38%

35%

45% 37%

Europe Europa

Americas

Asia

España Spain Reino Unido UK

Francia France

Canadá Canada Total

Alemania Germany

16%

7%

Reino Unido UK

España Spain

Alemania Germany

Japón Japan

Asia

39%

78% 72% 80% 71%

13%

5% 4%

Francia France

8%

5%

Americas

13%

16% 12%

China

7%

Canadá Canada

8%

16% 13%

USA

18%

50% 43%

Japón Japan

26%

80%78%

77% 69%

China

47%

Cree se Believe in Use usará en 2015 by 2015

Muy Newness

USA

Muy Very atractivo* attractive

Europe Europa

Source: TNS Study on Measuring Retail Futures. January, 2008. 4,500 online interviews

Consumer Ad-Hoc


Present and Future of Promotion at Point of Sale The need for innovation in the concept of promotion

The value the buying experience offers to the consumer-shopper, brings value to our store and our brand.

TNS Consumer Adhoc


TNS Retail & Shopper Insights A unique solution that covers the shopper’s entire journey, and translates it out into business steps and pointers for growth for manufacturer/chain Brand BrandEquity Equity ((predisposición predisposition)) ) (predisposición PRESTORE

Shopper type Type of occasion State of mind Channel choice Pre- planning

Definir the el universo deof Define universe competencia competence

Segmentar la categoría y encontrarthe nueva forma Segment category de pensar el and find a new mercado way of market

Understand the role of the category Entender el rol de la categoría Performancias Performances and SWOT ySWOT - Argumentarios Arguments

philosophy

Retailer choice Retailer experience

STORE

Store layout Store dynamics Store atmosphere Shopping style Shopping basket

P.O.S. P.O.P. Point of Sale)

Shopping route In- store advertising

Choose the Elegir las acciones operational actions operativas Quantify the impact of the Cuantificarprior el impacto de las decisions to decisiones antes actuar implementing them

Assess the growth pointers Evaluar las pistas Understand the de crecimiento shopper’s buying Entender el proceso de process compras del shopper

Shelf layout Signage Promotions Pack standout Pack communication

Transaction Transaction Seals SealsPurchase Purchase (decisión) (decision) (decisión)

Métricas Buyingde behaviour Comport. DeMetrics Compra

Integración Integration Panel and Adhoc

Soluciones In-store In-store solutions Brand Equity

Tecnología Shopper Insight Insight technology

Emotions In-store emotions In-store -

¨Shopping Misiones missions and Need Needstates states

Cualitativos Qualitative High-end Retail

Estudios Studies of de Decisiones Decisions of deShopper’s Shopper Journey

Videoand and Eye tracking

Consumer Ad-Hoc


Retail & Shopper Insights the new Research frontier

Camí de Can Calders, 4 08173 Sant Cugat del Vallès (Barcelona) t+34 93 581 9454

Julián Camarillo, 42 (Edificio Treviso) 28037 Madrid t +34 91 432 8704 consumer.es@tns-global.com www.tns-global.es

Consumer Ad-Hoc

TM the sixth sense Consumer of business Ad-Hoc


Retail Promotions