WindowOn...Shopping habits (2014 Issue 21)

INSIGHT | ANALYSIS | INFORMATION | TRENDS | REVIEWS | KNOWLEDGE | STATISTICS

Spending Habits

the essential guide to shopper trends from Shoppercentric

UK shoppers not ready to splash out Bricks and mortar still as important as on-line Over half of us love a bit of Christmas sparkle The pressure is on for retailers to inspire shoppers Plus new Thought Pieces, The Gossip... and all the usual regular features and revealing interviews

ISSUE twentyone november2014

ISSUE twentyone november2014

www.shoppercentric.com

ISSUE 21

|

NOVEMBER 2014

This edition of WindowOn is based on quantitative research among UK shoppers: 1,000 online interviews among grocery shoppers aged 18+.

Nationally representative quotas were placed on gender, age, social grade and geography.

ISSUE twentyone november2014

ISSUE twentyone november2014

PUBLISHED BY: Shoppercentric EDITOR: Lisa Hutchinson DESIGN: Mike Higgs

e: mikehiggs@mac.com

We welcome ideas for future articles and reports. Guidelines on our preferred format and style are available from Lisa Hutchinson e: Lisa.Hutchinson@shoppercentric.com

Š Shoppercentric 2014 All copyright is vested in Shoppercentric unless expressly stated otherwise. No permission is granted for reproduction, use or adaptation of the material, save as to provide for under Statute, and any such use must be accompanied by the appropriate accreditation.

2

WindowOn... Issue 21, November 2014

We show you how to turn shoppers into buyers.

Welcome...

Trends Research...

Danielle Pinnington,

Founder & Owner, Shoppercentric

Welcome to another edition of WindowOn...

Christmas is such a crucial time of year for the retail sector – make or break for many businesses. And as we emerge from the economic doldrums we thought it was time we took a seasonal look at shopper trends.

Since relatively early in the economic downturn we felt that the changes in shopper behaviour had the potential to become engrained, that once the upturn appeared shoppers would stick with their new prudent mindset, rather than reverting to pre-downturn type.

In this latest edition of WindowOn we can indeed see that prudent behaviour is the new normal – even when it comes to Christmas. So, keep focused on communicating with, and proactively selling to your potential shoppers/consumers at every opportunity.

We wish you all a successful and happy Christmas!

Shoppers keep their heads screwed on under their Christmas hats

2

Shoppers are still cautious with their spending.

A merry multichannel Christmas

4

Half of shoppers still prefer shopping in store.

Still suckers for Santa!

6

Christmas adverts still play a huge role in influencing shoppers.

Christmas crackers or soggy sprouts?

12

Retailers need to keep their shoppers spending.

THOUGHT PIECE

1&2

Thought Piece One Don’t ignore the shoppers who ignore you Talking to non-buyers could identify problems.

10

Thought Piece Two The squeezed middle What can retailers caught in the middle actually do?

16

Regular Features...

The BIG Picture...

The Gossip Shopper Talk...

From the High Street...

An experts own view

www.shoppercentric.com

WindowOn... Issue 21, November 2014

8 11 13 14 17

1

FEATURE

Shoppers keep their heads screwed on under their Christmas hats Whilst fewer of us claim to be making major reductions to our household spending this year compared with 2013, reflecting an increasing financial confidence, it seems that UK shoppers are not yet ready to throw caution to the wind, even for Santa.

By Penny Ericson

If retailers and brand owners are hoping that we are going to splash out on an extravagant Christmas in 2014 to give ourselves a big slap on the back for surviving the tough times, they’re likely to be sorely disappointed. Less than 1 in 10 of the shoppers we surveyed felt that they “deserved more treats this year”. And only 1 in 20 expect to spend more on their Christmas as a result of having extra money available.

2

WindowOn... Issue 21, November 2014

Attitudes to Christmas Spending (%)

44

32

29

I need to keep a tight budget

There is too much pressure to get carried away with Christmas

The economic downturn has taught me to be careful, and I want to keep it that way

It seems that many shoppers are wary of the heart ruling the head over the festive season, with 1 in 3 recognising that there is too much pressure to get carried away. Old habits, initially driven by necessity, appear to die hard as many shoppers seem determined to retain a cautious approach to spending: 29% agreeing that the economic situation has taught them to be careful and they want to keep it that way. Indeed 44% claim they need to keep a tight budget this Christmas – a figure rising to 60% among those lacking confidence in the present economy.

The powers that be may be telling us that the UK is in growth again, but this can feel like a fairly hollow message if day-to-day reality finds most shoppers still feeling the pinch. 60% of the shoppers in our survey are experiencing rising costs while their income remains static and a further 15% are dealing with a job loss or

22

9

5

Christmas is once I feel we deserve We have more a year, and I like it more treats this money available to be special year, so I expect to this year, so I spend more than expect to spend last year more than last year

pay reduction. No wonder then that shoppers will use their carefully honed savviness to make their money stretch further this Christmas: 65% claim they will be chasing the best prices they can find for their gifts, whether these are to be found in store or online.

We’re not talking parsimony – the tills will still be ringing this Christmas – but with new money-saving tools in our armoury it seems that a merry Christmas can also be a smart one.

Retailers and brands cannot rest on their laurels and expect the festive spirit alone to work its magic. Shoppers will be looking to squeeze the most value from their Christmas spending, to make every penny count, so retailers and brands need to earn their custom through keen pricing and genuine added value. The market must stand up to some very switched-on, critical inspection this year, with complacency likely to be punished – and let’s all raise a hot toddy to that!

WindowOn... Issue 21, November 2014

3

FEATURE

A merry multichannel Christmas It’s been a tough year so far for many retailers, with the continuing pressure on shopper spending and the march of competitors online. And Christmas doesn’t look like it is going to give any respite, particularly in relation to the online challenge because when it comes to finding the perfect presents, online will be as important this year as bricks and mortar:

By Susie Spencer

78

Methods shoppers plan to use for present shopping (%)

77

20 SHOPS

4

DESKTOP LAPTOP

WindowOn... Issue 21, November 2014

CATALOGUE

19 TABLET

14 MOBILE PHONE

3 INTERNET TV

For some shoppers etailing enables them to pander to their inner Bah-Humbug because going online means they can avoid the Christmas crowds. This is particularly true of 25-44 year olds and those with children. It seems the parent version of Christmas spirit may well be found in a glass of wine as they peruse the options on their laptop while the kids are asleep, as opposed to running the gauntlet of the elves trying to drum up trade for Santa’s grotto.

many shoppers are still reluctant to delegate the responsibility of their gastro-Christmas to an online picker and would rather retain control of the trolley themselves.

There is, however an upside, as the big story emerging this Christmas is when clicks and bricks come together through Click&Collect.

1 in 3 shoppers expect to use this delivery option at Christmas and 1 in 4 agree that it will make a big difference to their Christmas shopping this year.

And yes, there is evidence that shoppers will be ‘show-rooming’ this Christmas, taking full advantage of the multi-channel retail-scape So we can expect a lot of shoppers hotfooting around them to combine hands-on browsing it to a number of stores to collect their online with internet bargain-hunting: orders. This means there is a 30% of shoppers agree that huge opportunity for bricks & For some shoppers they “like to go in store but mortar retailers to really lay on etailing enables them then buy online once I’ve seen the ambience, and roll out the to pander to their inner tempting displays to play to what I want”. their strengths and encourage Bah-Humbug because But before bricks & mortar incremental purchasing. If going online means retailers succumb to the they could tempt each of those they can avoid the ghost of Christmas Future, customers to pick up just one it’s worth knowing that 1 in extra item in addition to their Christmas crowds. every 2 shoppers agree that parcel collection, that could they “prefer shopping in-store so I know I am deliver a seriously big uplift in sales. And if getting exactly the right present”. After all, no you are a Scottish retailer it is worth noting that one wants little Ollie telling them this is the shoppers in your region are the most likely to worst Christmas ever because Yoda wasn’t in click and collect in this way (41%) – so dust off that particular Lego set! What’s more, shoppers the tinsel and start planning your Christmas show concern about online orders not turning displays. up on time, particularly if they live in London – who’d have thought our confident grand The smartest retailers this year will be those who metropolis was actually full of anxious shoppers capitalise on this blend of clicks and bricks that waiting for the postman to ring the doorbell? combines value and convenience with control and confidence. And by encouraging online On top of those potential weaknesses in the shoppers to store to collect their goods, they online offer, it seems UK shoppers continue to will create a fantastic opportunity to remind have trust issues around buying their Christmas shoppers of the enjoyment and inspiration groceries online: half as many shoppers expect that can be provided within those brick walls. to shop online for the perfect mince pies or A merry multi-channel Christmas indeed! brussels sprouts vs in-store. It appears that

WindowOn... Issue 21, November 2014

5

FEATURE

Still suckers for Santa!

Funny isn’t it? Most of the time we sophisticated shoppers are reluctant to admit the influence of advertising on our shopping habits, unless we are cunningly pouncing on a killer deal. But pop a carol in the background and a bit of Christmas glitter and it seems a different story.

By Sharon Hodgson

Cynical shoppers, so alive to the wiles of retailers and brands, appear quite happy to be sold to at Christmas, with 65% of our survey participants readily admitting to being influenced by Christmas TV adverts. Nor, it seems, are trees being felled in vain in the pursuit of those all-important festive pounds: 1 in 4 shoppers agree that they take notice of retailer magazines or of leaflets through the door when planning where to shop at Christmas.

What’s more, early birds really are catching worms – even in September! We can all moan and groan about Christmas displays appearing in stores when it’s still 23 degrees outside, but some shoppers have already started their Christmas shopping. Which is, after all, why these early displays are there. When Selfridges in London unveiled its Christmas display in an unseasonal July, the store sold 2,000 Christmas baubles in the first seven days…

6

WindowOn... Issue 21, November 2014

The chattering classes can throw their hands up in horror at the marathon-like run up to Christmas, but the truth is that many shoppers are already off their blocks and away. At the time of asking (late September), 1 in 3 of our shoppers had already started their Christmas shopping, rising to a staggering 44% for those with kids. Of course like any long-distance event the trick is to pace yourself, and these front-runners are most likely to have only completed a minority of their shopping (55% a small amount only and 19% around a quarter of what they plan to buy) – so there is still plenty to play for as the temperatures drop.

Though a doubtlessly smug 7% say they have done all or mostly all of their Christmas shopping already. (Frankly the less said about them the better.)

Those who have started Christmas shopping by end September

BY AGE GROUP

BY TYPE

BY LOCATION

44% 38%

37% 31%

SINGLE WITH HOUSEHOLDS KIDS

Shoppers making an early start appear to be adopting a fairly practical mind-set, getting organised and sweeping up bargains, rather than being swept along by the more emotional Christmas giddiness that might kick in later.

As one Costco shopper puts it: “It’s too early but if you don’t buy it now, it’s gone.” But as the nights draw in and the big day approaches it seems that most of us still love the retail theatre that surrounds Christmas – and we all know that happy shoppers are more likely to spend money. 55% agree that window displays and Christmas decorations make the shopping experience more enjoyable and 51% welcome special Christmas product displays in store.

Cheesy tunes however divide opinion: 49% find Christmas music adds enjoyment but 40% would happily pull the plug! And daft hats might be better saved for the dinner table: 6 in 10 shoppers say that staff in Christmas hats will actually put them off visiting stores.

COUPLES

25%

SCOTLAND

55+

24%

NORTH

18-34 35-54

25%

MIDLANDS

TOTAL SAMPLE

22%

35%

29%

SOUTH WEST/ WALES

25%

SOUTH EAST

31%

LONDON

31%

Attitudes to Christmas Theatre makes experience enjoyable puts me off shopping

55%

61%

55%

51%

49% 40%

13% Window displays

16% decorations

17%

15% special displays in-store

music

staff in christmas hats

So what can we conclude from all this? That despite our sensible, prudent selves, we love a bit of Christmas sparkle to tempt us to open our wallets. And that’s where strong Christmas campaigns and great visual merchandising are still likely to pay dividends. Deck the halls and let’s be jolly!

WindowOn... Issue 21, November 2014

7

8

WindowOn... Issue 21, November 2014

thebigpicture Cannings Free Range Butchers, Melbourne

by Lisa Hutchinson You do not often see butchers looking like this! This completely free range butchers in Melbourne is a beautiful, elegant shop that you would not necessarily see anywhere else. The shop is designed using timber, stone and polished chrome and looks like a perfect place for a quality shopping experience. The founder, professional butcher Sam Canning opened his first shop in July 2010. Wouldn’t this make you buy more for Christmas? www.canningsfreerangebutchers.com.au

Sam Canning

WindowOn... Issue 21, November 2014

9

THOUGHT PIECE ONE Written by Kristen Davis

Don’t ignore the shoppers who ignore you You may have noticed that increasingly business is focusing on big data, and looking to make the most of the opportunity such data can present.

Yet there is a risk inherent in data from buyers or do-ers – that it gives a one dimensional perspective to your business picture. To get a more rounded picture we believe you need to also look at those who don’t buy – those who big data may not include.

We all know that shoppers unconsciously smooth their purchase journey by eliminating what they don’t want in order to focus on what they do want. Yet all too often research is about what goes into the basket and not what falls out of the basket and why.

Typical reasons for elimination relate to core marketing issues not just shopper marketing, so the learnings and implications can reach across your business from brand perception to fixture layout. To turn the situation around you need to re-wire the rejectors’ thinking, in order to get them to consider your product.

And this can only be achieved by a clear understanding of their current thinking: l What beliefs do they bring to store –

and where did these come from? l At what point is your brand eliminated –

is it just your brand or a sector issue? l What have your competitors got that

you haven’t – how does this manifest itself at fixture?

Let’s look at an example: a whole chicken on sale in Tesco for £2. Anyone buying this would talk about incredible value, how Tesco are helping hard pressed families cope with tighter household spending. So, an apparent success story – unless you talked to nonbuyers. Non-buyers were shocked to see

10

WindowOn... Issue 21, November 2014

a whole chicken at £2 – not because it was such good value, but because it was too good to be true. For them, this pricing called into question the quality of the product and therefore the credibility of Tesco.

So, by taking the time to talk to non-buyers you are better placed to identify problems, and opportunities. You may even find that you are not the only brand being eliminated, and that the action required is broader than a simple fix from the marketing team. Re-wiring shoppers in order to reverse elimination can require action from retailers, the category, or the brand, and can stretch from in-store theatre to pack design.

You could argue that what we are investigating are simply barriers to purchase – but the key point is that you need to know in which part of the non-buyers’ journey these barriers present themselves in order to re-wire the shopper with the right message at the right time. Of course buyers can tell us about barriers too, but their barriers may be less fundamental as they have clearly found a way around them to make their purchase. Non-buyers’ barriers are a whole new ball game.

So, next time you commission shopper research, don’t eliminate non-buyers from your thinking just because they have eliminated you from theirs. After all, getting it right for them could deliver incremental sales.

Compiled, conjured up & cobbled together by Lisa Hutchinson

Little Waitrose- Kings Cross This really is a Little Waitrose, which to be honest is easily overlooked if you are a busy commuter.

Yet if you do manage to follow the floor stickers to the door, you find a perfectly formed travel format: food to go welcomes you in, flowing into meals for tonight, with ambient and chilled essentials opposite, and finally the news and impulse section. So, it covers most travellers immediate needs, in an environment that has the reassuringly straightforward Waitrose way about it.

But what struck me most was the amount of busy staff in what is a very tightly packed space.

At a time when service is becoming increasingly important it was good to see that Waitrose recognise the need to keep travel format shelves well stocked, and to help shoppers get to what they want or need as quickly as possible.

Of course the more exciting news will be when Waitrose open the supermarket and cookery school at Kings Cross – we can’t wait to take a peek.

Happy Birthday to Shoppercentric We have been talking to your customers for 10 years! A big thank you to all our wonderful clients who trust us to do a great job and keep coming back for more.

No wonder we love our job!!

This card was designed by one of our kids!

WindowOn... Issue 21, November 2014

11

FEATURE

Christmas crackers or soggy sprouts?

Christmas comes but once a year – and it is a hugely important date in the retail calendar. Planning starts at least as soon as last year’s decorations have been packed away, and as everyone knows there is no guarantee shoppers will come. So, dare we look into a crystal ball to predict this season’s winners and losers?

By Danielle Pinnington

Well, we think the department store sector will see some big wins, and that’s not just because John Lewis are bound to have another highly innovative advert up their sleeves. It appears that department stores as a whole tend to be most effective in keeping their year long shoppers spending in their stores – with a conversion level of 86%.

The real winners in the mists of our crystal ball, however, appear to be the pureplay internet retailers. Their conversion is 140% - the only example of a sector where more shoppers plan to shop for Christmas presents than use throughout the year. This offers such retailers a terrific opportunity to showcase their ranges, and their systems, in order to impress the uninitiated and build online custom for the rest of the year. Here’s hoping their delivery systems don’t buckle under such pressure, or there could be some glum faces round the tree on Christmas morning.

12

WindowOn... Issue 21, November 2014

But for each winner there is almost always a loser – and at Christmas the loser is likely to be the retailer or brand who put their Scrooge face on this season. The fact is that at Christmas shoppers aren’t just shopping from a list, they are looking for presents with a difference, and for retailers who inspire them. So their interest can be caught way beyond their usual retail horizons.

Think about your own list (have you done it yet?) It isn’t just a list of specific items, it is bound to have names of people you need to buy for as well. You know what they like, but you also know that if you buy them something too predictable they might think you’ve stopped caring! So when you go present shopping you want the perfect solution to hit you between the eyes and you may well stray into unfamiliar territory hoping to find fresh ideas.

Shopper Talk...

Real words from the high street.

Brought to you from the keen ears of the Shoppercentric team...

We put the tree up on 1st Dec, and I even love the shopping bit. I like food shopping, present shopping. I like it to be personal.

I’ll start buying stuff at the end of November if I spot good deal to bulk buy and save for Xmas It’s so commercialised, so expensive, I dread it

That is the difference at Christmas, and that is the pressure retailers are under. Department stores appeal not just because they have loads of different departments but also because they tend to put lots of effort in. Not just gondola ends or pallet stacks, but beautiful displays of Christmas products; not just tinsel and baubles, but theatre with its own dedicated space, adding real ambience. They recognise the power of inspiration at Christmas and hence they reap the rewards.

Of course not every retailer has the range or space of a department store – nor the funding.

But every store has a range, space, a window and funding is relative. All it takes is desire, imagination and the understanding of what will appeal to shoppers.

But don’t just take it from us. We’ll leave the last word to some of the shoppers we interviewed: Make the shops more Christmassy, plus make the shoppers feel appreciated Give us ideas now for something different for presents this year. No pressure there then!!

As soon as we’re through bonfire night which is a big party night for us, then I start to buy and put away when I see things I like I do watch the pennies but at Xmas you do have that ‘stuff it’ attitude and worry about it after Xmas It’s manic at Xmas in the supermarkets – the trolleys are more like a stock car race I start planning in Sept – on the prowl for bargains – things that will keep. I start looking for deals then – all year even I would rather spend money on having a nice Xmas at home rather than going out There’s nothing Christmassy about shopping online I will go to every shop and hunt out 2014 the bargains DEC

Diary Dates...

2014 2015 DEC

JAN

2015

Speaking at Popai Winter Seminar JAN December 4th Location: London Transport Museum, Covent Garden Piazza, London, WC2E 7BB

Speaking at Semex UK Dairy Conference, Glasgow, January 2015 Location: Radisson Blu Hotel, Glasgow

WindowOn... Issue 21, November 2014

13

An Independent Retailer Perspective

A View from the High Street Duck Pond Market

By Lisa Hutchinson

Food and craft markets have become increasingly popular in recent years and have become an important addition to a local area or city. Many of the UK Christmas markets are now on a par with their continental counterparts and offer the gorgeous smells of the festive season and great destinations to find unique and unusual gifts.

The recent Lidl advertising campaign depicted a beautiful farmers market in the country to entice their customers to the quality of their food. This led me to investigate a local market near me and find out more behind the scenes‌ Duck Pond market started as a Christmas market in 2008. Caron Pook the founder, has always liked markets and going to them and in 2008 decided to walk into The Great Barn in Ruislip and asked if she could have a market there. They agreed very easily so Caron had to quickly find stallholders and customers. She advertised for stallholders on Netmums for £20 a stall and before long she had secured 36 stalls and printed 100’s of flyers promoting the market. After 1000 visitors coming to that market Caron has never looked back and Duckpond Market is a now a very successful group of markets.

From that initial success, Caron now has 1200 stallholders across five locations and has employed managers to oversee each one as there are now markets running at the same time across her venues. Communities and councils have come to Caron wanting her to hold markets in their local area: The council in Richmond approached her about starting a market to pull people further up the high street and give the area a family vibe, the Pinner community has embraced the markets in the area as an antidote to the closing shops in the high street and Ruislip now holds three markets a month. On the 1st

14

WindowOn... Issue 21, November 2014

Sunday there is a Foodies Market which has recently been renamed from a farmers market as it offers the opportunity to expand into more world foods like French deli/Italian foods etc. The 2nd Sunday offers a new concept where it has given the opportunity to offer something back to the community. The Sunday Sessions is a day of live acoustic acts, stand-up comedy, street food, a Lego session and craft tables. Every third Sunday is the craft and artisan food market.

Caron believes that if you attract the five senses a market cannot fail to be a lovely place to be.

She ensures there is amazing food and drink to smell and buy and music to listen to. There may be buskers or bands/choirs that will entertain the marketgoers and there will be beautiful craft stalls to look at. Food plays a huge role in the success of running a market and people come out for the great quality food, but the crafts keep them there. People like to see different things than they can find on the high street and there is the added incentive that the goods come from local producers.

Having a stall at a market is a great way to set up a business. With the challenges of high rental costs on the high street it is a fantastic way to test the environment with instant feedback and promotion of the offering. I spoke to Cara and Nicki who run Moss Makes…

Caron has an incredible 37 Christmas events at all the markets coming up before Christmas – we think she deserves a lie down! Here is a taster of upcoming events:

You will probably find them with their head in a skip or rummaging through items at a car boot sale. Cara and Nicki love to make old furniture beautiful again from things that people have discarded. They paint, stylise and personalise furniture, turn plastic toys into bookends by cutting them in half and spray painting them and they have turned an old chest of drawers into shelving units and old cups and saucers into bird feeders.

Ruislip Artisan Food & Craft Market December 20th & 21st Ruislip Foodies Market December 7th Richmond Artisan Food & Craft Market EVERY Sunday to Christmas, reopening on February 1st.

Black Park Artisan Food & Craft Market December 6th & 7th Pinner Artisan Food & Craft Market December 13th The Sunday Sessions December 7th (more info on website) www.thesundaysessions.org Highgate Craft, Food & Vintage Fair December 14th

From the stallholder view

In addition to the stall they use Facebook and Instagram to promote their products. Cara says: “Once you are in the market as a stallholder you can develop and expand. You are talking to your customers face to face and asking them what they want. It is a great way to come up with new ideas and keep producing functional, unique items.”

Recently they have been making Christmas bunting, Christmas crochet stars, finding old stools and turning them into Christmas toadstools to get the visitors in the Christmas mood! You will find Cara and Nicki upcycling at Ruislip Duckpond Market.

The success of these markets has meant some fruitful opportunities for some small businesses too. Emma Jane Sowerby is a successful designer and illustrator and is expanding her own homeware and fabric ranges. She regularly has a stall at Richmond Duckpond Market where she promotes her freelance services.

www.duckpondmarket.com WindowOn... Issue 21, November 2014

15

THOUGHT PIECE TWO Written by Danielle Pinnington

The

squeezed middle

We are lucky enough to often be asked to commentate on shopper trends by publications and broadcasters, and it’s something we enjoy doing because the retail sector really is undergoing huge upheaval which gives all plenty of food for thought.

One area that is getting a lot of airplay at the moment is that of the so-called squeezed middle retailers. The mass market brands who occupy the middle of the pricing spectrum, currently being squeezed between the discounter and the premium brands. We all know who they are because their every drop in sales, share or profit makes the national headlines – but in case you’ve been away we’re talking about the likes of M&S, Tesco, Morrisons and Sainsbury’s.

The big question is what can a retailer caught in the middle actually do? There have been seismic shifts in the retail landscape over the last 5 or so years, and those shifts are not going to fall back to re-create the status quo. In order to survive the squeezed middle need to take action, and that action needs to go beyond the tendency to focus on price because as we all know, the privately owned discounters can cut to the bottom more quickly and more completely than those businesses with shareholders.

16

WindowOn... Issue 21, November 2014

So if you can’t win on lowest price, and quality is average rather than premium, what is it about the business that differentiates?

Dare we suggest it is the very benefit that these businesses previously traded so successfully on – the range?

You might argue that range is the Achilles heel of the squeezed middle now that shoppers are replacing large weekly or fortnightly shop with smaller, more regular trips. After all, we know shoppers are deserting big box stores in favour of smaller convenience formats. But these retailers can’t afford to just shut huge sections of their estates. So re-purposing them has to be the answer, and perhaps if the range was re-organised to provide solutions, rather than aisle upon aisle of tenuously linked adjacencies, shoppers might start to love the more comprehensive ranges again?

For this to work the retailers would need to re-think their approach to store layouts, focusing on shopper needs rather than logistics. It would take imagination, nerve and effort, but it might just give new purpose to environments that are feeling increasingly out of date and out of touch.

An Experts Own View Name: Christine Edwards Job Title: Director Company: Big River Solutions

Big River Solutions – A consultancy creating solutions for Shopper Marketing and Category Development Everyday FMCG companies are faced with the challenge of managing a portfolio of brands and products whilst the environment that they are in, is changing.

Do we understand shoppers’ needs and missions?

Are we in the right pack size and format? Do we talk to shoppers in the right way at the fixture?

Resources are limited. There is a need to optimise the portfolio and create a set of strategies and tactics that deliver commercially, for customers, consumers or shoppers. Succeeding in this ever changing landscape requires a step change in the company’s ability to deliver activation, which is based on a more rigorous approach to insights. One of the areas often highlighted is a more detailed understanding of the shopper.

Central to embedding is cross functional collaboration, ensuring that there is one approach across the commercial team. We need to ensure that shopper insights are owned by all, not just the shopper marketing or category development team. All teams need to understand what is going on where the final decision is made and how their actions can influence.

These insights need to be embedded within the internal integrated planning processes. We need to ensure that we ‘talk’ to customers, consumers and shoppers with one message. The creation of a common language will facilitate this. There is a sweet spot created when all the plans align that maximises return and impact.

This often requires a commissioned piece of shopper research. Once the research agency has left, what do we do with it? How do we embed its findings? How do we maximise the impact of the findings?

For some organisations, there are a couple of big ‘blocks’ that can be created with shopper research as one of many inputs, namely a Category Vision and a Point of Purchase Vision. These can deliver a big impact for the organisation.

A Category Vision gives a framework within which the organisation can deliver. Having a view of the future state of your category and the key drivers that are operating within the category, can identify some changes that your business may take. It can identify innovation and channel opportunities, promotional strategies and messaging options.

A Point of Purchase Vision allows you to optimise the point at which a shopper makes the final decision - the point at which it matters. The whole path to purchase needs to be considered as advancements in technology and changing lifestyles, has fundamentally changed for many shoppers. We need to consider at home, preshop and in shop. It should identify for example, ideal layout and adjacencies based on an understanding of triggers and barriers, both at a macro and micro level.

There are some other internal, ‘getting the basics right’, elements that should be reviewed. Are we promoting in a way that is changing shoppers’ behaviour (the way we want)? Is the right range available in the right channels?

Then there is the external piece – do you understand what your customers want? Customer specific insights allow you to tailor your approach by customer to ensure that the category is optimised specifically to their shoppers’ needs. We have worked previously with a client, who in turn wanted to work with 2 retailers at a very high level. This was possible as their research had identified that a very different approach was required for each individual retailer, to meet their shoppers’ needs.

Actionable insights, delivered by robust shopper research is part of the mix, which allows you to strengthen relationships with your most important customers. These insights should be embedded in your customer planning process and joint business planning process.

Organisations that succeed in embedding shopper insights need to aim high. Skills and process gaps need to be identified and training may be required to help fill the gaps. Fundamental to it all is the ability of the organisation to take data and convert it into actionable insights.

Individuals’ areas of responsibility, job descriptions and annual objectives may need to change.

Organisations need to create the habit of integrating shopper insights as part of their everyday practices.

www.bigriversolutions.com

WindowOn... Issue 21, November 2014

17

thelastword...

We thought we’d let our clients have the last word by telling you what they think of us...

Just wanted to say again a big THANK YOU for today - I have had feedback already from the team to say they found it a really useful session and importantly a catalyst for driving change moving forward.

Did you enjoy this magazine?

Scan this code to be taken to more trends research from Shoppercentric.

Category Development Controller Manufacturer

You delivered the presentation with such passion, it’s as if there’s nowhere else you’d rather be than here on a Monday morning!

Category Manager Snacks Manufacturer

It was great to learn so many new things when they thought they’d heard it all.

Retailer

We are really very pleased and excited by the findings you have gathered together for us, and we look forward to starting working on your recommendations in SS15.

Brand Manager at Footwear Manufacturer

Your expert opinion has really helped in difficult questions, which you dealt with in a targeted and politically correct manner Manufacturer

18

WindowOn... Issue 21, November 2014

PO Box 435 Harpenden Hertfordshire AL5 2WX

01582 468047 info@shoppercentric.com www.shoppercentric.com