WindowOn The Brand Challenge (Issue 16) by Shoppercentric

The Brand Challenge the essential guide to shopper trends from Shoppercentric

What actually is premium? Is it really all about price? Enabling shopper choice through broad distribution: Smart or reckless? Price promotion: sales volume vs. brand integrity. To be seen as premium means to behave premium. Plus new Thought Pieces, The Gossip... and all the usual regular features and revealing interviews

ISSUE

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ISSUE

sixteen

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www.shoppercentric.com

ISSUE 16 | MARCH 2013

For this latest edition of WindowOn... we completed two phases of research: 20 adult shoppers took part in an online forum over a 3 day period 1000 adult shoppers took part in a quantitative interview online In both phases our samples were nationally representative on age, gender, social grade and geography.

ISSUE

sixteen

mar 2013

ISSUE

sixteen

mar 2013

PUBLISHED BY: Shoppercentric EDITOR: Alice Synge 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 Alice Synge e: alice.synge@shoppercentric.com

ÂŠ Shoppercentric 2013 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.

We are proud to lead the way in Shopper Insight in the UK. We are continually conducting our own trends research on current industry related issues and are very happy to be able to share our ďŹ ndings and opinions.

Welcome... Trends Research... I’ll Tell You What’s Premium! Danielle Pinnington,

Founder & Owner, Shoppercentric

Welcome to another edition of WindowOn... A question we often get asked is how ‘premium’ brands are affected by distribution choices – specifically whether the status of the brand will be diminished if it is sold in a non-conducive retail setting. Think malt whisky in corner shops or luxury facial skincare in supermarkets. With the ever strengthening presence of the discount channel we know this is an issue that continues to haunt brand managers – but do shoppers care as much as they might think? We also know there is concern about premium brands being sold on promotion. How does this affect the perception of a brand? This latest edition of WindowOn... is about finding some answers to these questions, so we hope you enjoy reading through.

Price, quality and emotional investment. Which factors matter to shoppers?

The Democratisation of Premium

Shoppers using discounters are being applauded for being smart. Would it be smart for premium brands to broaden their distribution?

We All Love a Bargain In the current economic climate nobody seems prepared to pay full price for anything. We look at how price promotions affect premium brands.

Premium Brands Must Walk Tall

Final thoughts on confidence: How to project position upon shoppers.

THOUGHT PIECE

Thought Piece One 11 Beefburger au Cheval: What impact will the horsemeat scandal have on shoppers?

12 Thought Piece Two Can You Buy a Gift on Discount? Even if it does enable shoppers to ‘trade up’, is it okay?

Regular Features... Shopper Talk... The BIG Picture... The Gossip An Experts Own View... From the High Street... Meet the Team

www.shoppercentric.com

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FEATURE

I’ll Tell You What’s Premium! To understand the impact of the shopping environment on ‘premium’ brands, we firstly had to clarify what shoppers understand by the term ‘premium’ – and how they judge which brands are just a cut above the rest. By Kristen Davis

What soon became clear to us is that ‘premium’ is both a subjective and a relative term: a personal judgement made from an individual vantage point. So it is Laurent Perrier for some, Tesco’s Finest for others. What is always common, however, is the sense of trading up from cheaper alternatives in order to achieve a consistent and satisfying result – one that’s worth that extra investment. Brand tiering, so evident in the grocery channel, has hard-wired good / better / best judgements into a multitude of everyday shopping decisions. In this context ‘premium’ is at the top of the pile: the Finest ready meal or the Butcher’s Choice sausages. It costs more, but we all know that you get what you pay for don’t we?

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But move from the everyday shopping list to more special treats or indulgences and it becomes a little less clear-cut what the extra investment is paying for. Emotional terms creep in: ‘luxury’, ‘pampering’ even ‘guilt’. It seems to all get a bit more complicated. However, when asked to rationalise what characterises ‘premium’ across the board shoppers reach a clear consensus: l 76% of shoppers cite ‘product quality’ as

the key defining feature of a premium brand l In comparison only 51% mentioned

‘price’, indicating what appears to be a more discerning value judgement that is being applied

Price alone clearly does not denote superior quality for shoppers. And so it seems that the days of being happy to be TOLD what we should all aspire to – and being made to pay through the nose for it – may perhaps be over. One shopper succinctly summed up this apparent shift to substance over style when defining a premium brand: “Superior quality, great ingredients, more expensive – with an image to match.”

So great (and proven) quality appears to lie at the heart of an unequivocal premium brand definition – but there is clearly also a role for expressing this, through price, packaging, image or even channel and in-store theatre. These are the clues that shoppers use in store to spot the products that shout ‘quality’ and can tempt those extra pounds out of their purse.

If YOU Don’t Invest in the Product, I Won’t Either… l Care and attention marks out a premium brand for many – in terms of its packaging and its treatment on shelf. When quality materials are used for packaging it suggests quality inside too. When time and trouble has been given to the design and look of a branded product, it suggests something that manufacturers are proud of. When brands are given an eye-catching dedicated space in store – or are even just presented in a neat and tidy fashion – it indicates that the retailer is willing to invest in them too. A seal of approval on all fronts, implying confidence that this is a premium brand that really is ‘worth it’. l So of course that leads us to the fixture. We often talk about how ‘switched on’ shoppers are these days – and they all too easily read the subliminal messages on shelf. They know that only the best brands

command space and attention in store, hence the observation: “Premium products are generally tidier, not as crowded, and staff want to keep the area looking good to attract people with a little bit more to spend.” l As another shopper put it: “Brands are not just selling a product but a lifestyle or an image – stacking high in boxes does them no favours.” Poor housekeeping, or sloppy merchandising, can go a long way towards undermining a premium brand’s cachet. A firm bedrock of quality can protect brands against this potential erosion, but those brands less confident in their premium positioning must beware the message conveyed by such a clear neglect of presentation in store.

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FEATURE

The Democratisation of Never before have shoppers had such easy access to so many brand choices, premium brands among them - both through the proliferation of retail channels and through the ubiquitous promotional activity that brings highpriced items within their reach. By Sharon Hodgson Strongly Agree

They no longer need a snooty shop assistant creating barriers – online shopping can bring luxury into the homes of any of us at the click of a mouse. And price reductions create the opportunity for many to buy items that would otherwise be too expensive to justify, in the current climate particularly. Over the next two articles we will consider ﬁrstly the impact of greater distribution, and secondly the role of discounts. Looking firstly at the democratisation of premium through better physical access to these brands, what might surprise premium brand manufacturers is that few shoppers appear to object to a brand boosting its sales through wider distribution, even if this does broaden its pool of consumers. Six in ten shoppers agreed that they hate the snobbery around premium brands and in the words of one of our shoppers commenting on premium brand promotions: “Good on the stores for trying to encourage more people to try the better products.”

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10 2 40

Agree Neither Disagree Strongly Disagree

I hate the snobbery around premium brands % total sample

So it feels more and more acceptable that shoppers are adopting different routes to attaining their chosen premium brands and that the premium shopping ‘experience’ is, for many, playing second fiddle to the more practical logistics of sourcing a desired product at the best price possible. Perhaps the romance of premium brands is fading in the face of cold hard economic realities? There is certainly evidence to suggest that if there is a clear price advantage for shoppers, then many will accept what may be an incongruous setting for premium brands. If trust in the brand’s integrity is such that quality

is assured any reservations about the retail setting can be swiftly overcome in order to make a decent saving. Seven in ten shoppers say they don’t care where they buy premium brands as long as they get a good price. Indeed one shopper’s observations sum up this sentiment: “I’d be pleased to ﬁnd a bargain. Times are tough so I’d be more than happy. Where I buy from isn’t an issue as long as I’m getting a good product at a good price.” Strongly Agree

Agree

Neither Disagree

Strongly Disagree

I want to feel special when I buy premium brands % total sample

Indeed, when shoppers think about which supermarkets, and other retailers, have most top-of-mind associations with premium brands they focus less on the exclusive and more on the solidly middle class stores: Waitrose, Sainsbury’s, John Lewis and M&S among them. Department stores with strong ‘variety’ associations can also feature strongly, reﬂecting the role of premium options within a broad choice of merchandise. Strongly Agree

35 13

Agree

4 36

Neither Disagree Strongly Disagree

What might surprise brand manufacturers, however, is that for many shoppers finding premium brands in a discounter would not be a massive issue - discount shopping is, after all, increasingly judged as intelligent shopping these days. It seems that for these shoppers it isn’t about where you sell it, but how you sell it. Our research suggests that it’s unlikely a bespoke, high quality display featuring a premium brand in Lidl could seriously damage the brand’s image. But deliver that same brand piled high on basic display units… and it could very well be a different story altogether. Of course, there are some die-hards for whom the location cue over-rides everything else and for these shoppers a premium brand presence in a discount retailer still gives pause for thought. Seeing premium brands in the wrong context can raise a certain doubt about that all important quality judgement that underpins the brand’s premium positioning. When seeing the brand shoulder to shoulder with ‘inferior’ brands, and faced with a striking discount, some shoppers look for an explanation and begin to question whether this particular stock is old, close to its sell-by date, a discontinued line, or even a counterfeit: “If the item is in a discounter I may be a little hesitant. I would scrutinise the item to ensure that it’s ok and genuine and if it is a bargain I MAY buy it.” Though it does seem that these question marks are raised for the specific example of the product they are appraising in this environment, not the premium brand itself – hence the credibility gap which they must overcome. So, for the time being at least, there are still risks involved in discounter distribution – such that for the uber-premium brands in particular, it’s possibly a stretch too far.

Upmarket stores are the only places to buy premium brands – % total sample

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FEATURE

We All Love a Bargain The second factor in the democratisation of premium is that relating to promotional offers. After a prolonged economic downturn, it is perhaps no surprise that shoppers love to find premium brands with a price discount. By Sharon Hodgson

Indeed price reductions offer access to these products for many shoppers who would otherwise not buy them (61% of shoppers said they only buy premium brands when they are on offer). Strongly Agree

21 4 53

Agree Neither Disagree Strongly Disagree

Love ﬁnding premium brands with price discount % total sample

Agree

10 3 18

Strongly Agree

However, it also seems that to maintain a truly premium position then promotional activity should offer an occasional chance to indulge – or a welcome reward for loyalty – rather than a more continuous expectation. It certainly seems that constant discounting can breed a suspicion that the full price was in fact too high, undermining that all important quality / value judgement that underpins the brand’s premium positioning. As one shopper observed: “A regular promotion on a premium brand would make me think about its credibility, and make it less premium in my eyes.”

2 43

Agree Neither

Neither

Disagree

Strongly Disagree

Only buy premium brands when on offer % total sample

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If saw premium brand on reduced price would wonder if full price too high – % total sample

Shopper Talk... Real words from the high street. Brought to you from the keen ears of the Shoppercentric team... If they aren’t going to make it look nice [on pack], they aren’t going to make it taste nice If I really fancy it price is irrelevant If I’m only cooking for me it’s cheaper to put a ready meal in the microwave for 5 mins than the oven for 40 mins to cook from scratch I always have a list, but then I freestyle as well But premium brands that steer clear of promotions altogether do so at their peril: l 59% of shoppers believe that premium

brands that never offer discounts are in fact out of touch with their customers l 37% of shoppers feel that premium brands

that don’t discount don’t care about their shoppers In the current retail arena, there is a growing belief that “You don’t have to pay full price for anything” – certainly not if you’re prepared to look hard enough! Furthermore, an aversion to promotional activity can also be interpreted by shoppers as reflecting a certain arrogance, strongly suggesting that not all custom is welcome to these brands. As one shopper put it: “The brand has such a high opinion of itself that it’s almost afraid of tempting customers who might not fit their premium target profile.” With so many options available to shoppers these days, why would they want a brand that so clearly doesn’t seem to want them?

The whole point of meal deals is to make it quick, but if you spend half an hour running up and down the store to ﬁnd all the bits… I didn’t want to use [nappy cream brand on my baby] because they told my husband to use it on his tattoo

2013 Diary JUNE

Dates...

Marketing Week Live 26 – 27 June 2013 Grand Hall, Olympia, London After exhibiting for the first time in 2012, we’re excited to be getting much more involved at this year’s Marketing Week Live. We have been invited to host a series of round table, interactive sessions discussing ‘Changing Shopper Behaviour’. We’ll be in the Retail Zone discussing how changes in shopper expectation is driving the market ahead of the pace of change within retailers. There will be five of these sessions on each of the two show days. Places are limited so keep an eye on the Marketing Week Live website mwl.marketingweek.co.uk, or contact info@shoppercentric.com to register an interest.

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thebigpicture Zeitgeist: Handpicked Hall By Claire Pearson

Amongst the gloomy statistics about vacant high street shops this new enterprise ‘Handpicked Hall’ is what we think is a great use of retail space and a welcome leg-up for budding entrepreneurs. Phillip Hall, a small department store in Ripon, became another victim of the recession and was forced to close its doors in 2012. The store’s owner, Anthony Blackburn, still in possession of the buildings freehold placed an advertisement in the shop’s window looking for businesses to rent space inside. Starting at £10 a day for a small trestle table, the low-risk, low-cost offer was clearly attractive and motivating and there are now 30 businesses operating from Handpicked Hall. Businesses range from food to arts and crafts and include Polly, a ‘vintage inspired’ café, and Make It, a business running a range of craft workshops. With two more stores in the ofﬁng this year in Leeds and Skipton, this would all appear to make perfect business sense. As Handpicked Hall says: “Our aim is that Handpicked Hall sends stall holders on the road to wild success and we populate Ripon with unique, independent and successful businesses, making our little city somewhere people love to shop.” You can’t argue with that.

www.handpickedhall.co.uk

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FEATURE

Final Thoughts:

Premium Brands Must Walk Tall By Danielle Pinnington

There is no doubting the importance of shoppers’ confidence in the quality of a premium brand as a justification for its higher price: l Brands themselves project this confidence

through stylish packaging and imagery l Retailers project it through context

and presentation l Shoppers gain this confidence through

learning for themselves that a product delivers a superior experience, worth the extra investment This all important confidence can be undermined if constant promotional activity or the retail channel itself pre-supposes some sort of quality compromise in order to sustain a consistently low price position. However, brand owners need to acknowledge that times have changed. Shoppers expect bargains and are being more considered in their purchasing. The retail landscape has shifted: although still relatively small, the discounters are growing and more and more shoppers are adding them to their repertoire. And whilst ten years ago there was a marked difference in pricing, range and store quality between the supermarkets, they are now broadly similar.

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The store environment has evolved: messaging tends to be focused on price, and there are more items being sold on promotion. So, considering these changes, brand values may also need to flex to make sure the brand stays in touch with its showroom and shopper. It seems that it is all about how you sell it, not where you sell it. Clothes falling off hangers and display units piled high with discarded stock would have an impact on brand perception whether you were in TKMaxx or Ralph Lauren; similarly, the shopper perspective suggests it’s unlikely a bespoke, high quality display featuring a premium brand in Lidl could seriously damage that brand’s image. It is true that for some shoppers there will be reservations and, for these shoppers for now at least, the discounter channel will be a stretch too far to be able to maintain the quality-based integrity of a truly ‘premium’ brand. Shoppers are smart these days, but they are also sceptical by nature. At the end of the day any suggestion that a premium brand is a marketer’s construct, rather than a genuinely superior product, will undoubtedly have an adverse effect on its desirability.

Vanity is simply too expensive in the current climate.

THOUGHT PIECE ONE Written by Claire Pearson

Beefburger au Cheval Hardly a day goes by without another big name embroiled in the horsemeat scandal. Back in January, the revelation that Tesco had almost a third of horsemeat in some of their beefburgers made for jaw dropping headlines, although perhaps not outright shock across the nation. Whilst repulsive and outrageous, there was also a degree of humour in the reporting of the story.

Since then, it has become clear it’s not just Tesco: other supermarkets, pubs, fast food chains, Ikea and even schools have been implicated. It also seems less amusing now, but when did this stop being a comedy? Was it when even Waitrose had to withdraw products? Was it when the government, the FSA and the European Union all started to look a bit powerless? Or perhaps it was when we realised our children might have been fed horsemeat at school. So now the laughter has died down, what are the longer term implications of this story? Will it be more than just a blip in sales of processed meat? For shoppers will this further undermine their trust in our supermarkets, their authenticity, accountability, transparency and ultimately their value proposition? As the stallion of British supermarkets, Tesco dominated the headlines in the early days of this scandal. Perhaps rightly so: as Spiderman said, “with great power comes great responsibility”. Tesco has since announced the introduction of a “comprehensive system of DNA testing across its meat products” to stop horsemeat from entering the food chain again acknowledging that they are responsible for the food they sell, so it is not enough just to stop using the supplier. Other retailers are also reporting rigorous testing and new procedures: so whilst efforts are in place to reassure us this won’t happen again, you could argue that the horse has already bolted. Of course, the one supermarket who can be fairly confident in their beef’s authenticity is Morrisons. Managing their own abattoirs and meat supply chain not only makes financial sense, it also makes commercial and ethical sense. Until recently,

Morrisons was lagging its competitors’ sales growth: perhaps this could help turn their fortunes around. Whether shoppers are aware of Morrisons being any different is a moot point and we can’t help but wonder how quickly shoppers will return to both the supermarket fridges and also their value meat ranges. It may call into question the whole price/ value equation shoppers make every day. Buying cheap may suddenly become a bit of a mare. The term ‘you get what you pay for’ has always been about making compromises and trade offs. Okay, so it’s not 100% steak mince, but it should be 100% beef, not 29% horse. Of course horsemeat is emotive (even if not dangerous). There isn’t the same outcry at Everyday Value Salmon Paste being 30% mackerel. Will we see shoppers becoming more discerning and more considered when buying value ranges as a result of this latest ‘scare’? Will this have more far ranging implications on discounters’ rapidly growing market share? In shopper’s ever increasing quest to cut their weekly food bill, we may question whether we have pushed the supermarkets and in turn their suppliers too far. Are supermarkets putting too much pressure on suppliers in driving food deflation, to the point they have nowhere to go on margin, or is it a case of unethical suppliers maximising profit? Asda’s CEO Andy Clarke was unequivocal on this: “No. There is no excuse for breaking the law. It’s just wrong.” He added “this has dented trust but I am committed to rebuilding it”. Either way shoppers may hold the supermarkets at least partly responsible as surely they are ultimately accountable for what is put on their shelves. The full page ads that Tesco put in national newspapers the day after the story broke and the new DNA testing seemed to strike the right balance and tone between apology and responsibility. The message was non-corporate and honest – “we’ll ﬁnd out what happened and tell you”. In taking the lead to respond ahead of the discounters and fast-food chains, this may have gone some way to restore trust and confidence. Only time will tell.

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THOUGHT PIECE TWO Written by Danielle Pinnington

Can You Buy a Gift on Discount? One of the challenges for shoppers around Christmas, but also other seasonal events, is the fact that gift items are more often than not on discount. This was particularly prevalent this Christmas as the Boxing Day sales started before we had even finished our Christmas shopping, as retailers tried to boost flagging sales. Given we are regularly told consumer confidence is low, and we know from our own research that the majority of families are still working to restricted budgets, then getting Christmas on discount sounds like a great idea. In fact, 45% of UK shoppers bought Christmas presents in the pre-Christmas sales. Being able to trade up to a better present without spending more, or getting presents for more people within the same budget – these are the kinds of benefits shoppers recognise when buying gifts on discount. But for some shoppers discounts aren’t always a benefit, and there are times when you really do need to look a gift horse in the mouth: l Will your sister feel quite the same about her bottle of Bailey’s, given she saw it with £8 off in Sainsbury’s the week before Christmas? l Will you feel duty bound to buy more than a selection box for your nephews and nieces this year when the boxes were on BOGOF?

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This is the rub for many brands that are marketed in the seasonal gifting aisles – regardless of whether it is Christmas, or Valentines or Easter. Shoppers who are buying gifts often have to think twice about what a discount means: l Will the recipient know it was on discount, and what will they think of me if they do know? l I don’t need two heart shaped boxes of chocolates, but if it’s on BOGOF I feel obliged to take two, then who do I give the second box to – my mum?! l Is the discount so low that it makes the gift worthless? The whole point of gifting is to make the recipient feel good, and to bask in the glow as a result. That lovely warm feeling is easily shattered if there is any suggestion the gift is somehow tarnished. And discounts can raise serious questions about the gifting value of individual brands if they are used too often. So, whilst promotions continue to be a huge part of shopper marketing in these straightened times, they should be used carefully and judiciously when it comes to gifting categories. In the context of gifting, surely it is better to use promotions to encourage shoppers to stretch to that otherwise out of reach product as a real treat for the recipient - rather than more of the same old but cheaper?

Compiled, conjured up & cobbled together by Alice Synge

An Evening at The Palace

Wedding Bells

Well, you should have heard the gasps and squawks made by the Shoppercentric team as Kristen mentioned in passing that she had been invited to attend a drinks reception at Buckingham Palace. She tried to pass it off as not such a big deal. “Really, it’s not that exciting”. Oh really? So driving up The Mall, in through the Palace Main Gate, into the Quadrangle to that big entrance canopy with all those pillars and carpeted stone steps is not that exciting? Pah. Needless to say we squeezed out every detail and are all suitably impressed.

Since our last magazine, one of our lovely team members has tied the knot. We’re happy to say that Claire is now an honest married woman after a joyous ceremony in November.

Christmas Lunch Shoppercentric Style We don’t need much persuading to treat ourselves, so when Danielle and Sharon came up with the brainwave to go to the Lille Christmas Market for our Christmas Lunch we all quickly made space in our diaries. We eased in the early morning departure with Champagne and croissants, looking out on the frosty fields of Northern France and marvelling at the efficiency of the Eurostar. We happily whiled the day away walking the beautiful cobbled streets of Lille old town, enjoying the festive displays showing both extravagance and elegance. Lunch itself was enjoyed, at French pace, at the highly recommended Le Pot Beaujolais on rue de Paris. Following which some potentially dubious, alcohol fuelled shopping decisions were made involving a goldfish with eyelashes and a packet of tiny pink chocolate baby ‘jésus’ – don’t ask. We’re now wondering how we can top the experience for next year.

It should be noted that despite all the threats we were actually pretty kind to her when we took her out for her final unmarried Shoppercentric meal and spared her the L plates and veil. Perhaps it was this kindness that led her to be most considerate and keep her maiden name for work. This has saved us from a whole heap of admin, so thanks Claire, and congratulations! At last! Can we see an end to ‘World Food’? On our recent adventures out into the wilds of the big five we think we may have picked up on the beginnings of a shift. A long overdue move from the meaningless blanket term ‘World Food’ to a more helpful cuisine and regions based signage approach. The newly revamped Tesco Sandhurst was using language such as Polish Grocery, USA, AfroCaribbean and Asian, in their ‘World Foods’ aisle as well as having information on each cuisine and information in the Polish language. We also noticed a fantastic Polish food counter at Asda Slough – A great example of Think Global, Act Local.

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An Experts Own View Name: Dan Young Job Title: Head of Customer Insight & Brand Communications Company: Thorntons PLC

In this issue of WindowOn we have been looking at the impact that retail context can have on brand positioning. We spoke to Dan Young from Thorntons who shared some of his thoughts on the subject. Shopping for chocolate should deliver the same emotional hit and sense of fulﬁlment as eating chocolate. Currently there is a disconnect between how people feel about our products (they get excited, their energy levels go up, they start to drool!) vs. the way they shop for those same products (low energy, ‘head’ rather than ‘heart’ transactions). We’re working with the supermarkets in helping them to deliver more engaging in-store theatre. The brain should not be involved when shopping for chocolate. The confectionery industry has commoditised itself by merchandising its products as if they were cans of baked beans. Information such as pence per gram and percentage cocoa solids leads shoppers to logical, evaluative brain functions when it should be an emotive, kinaesthetic process. We shouldn’t underestimate the power of selling a lifestyle ﬁrst, product second. Think about the impact that Ikea had when they first became a widespread feature on Britain’s retail parks. Customers in Ikea buy into the whole look, the whole room. They want to live there! Other furniture retailers are only just starting to catch on. I can’t help wondering how long it’s going to be before, say, car showrooms finally realise this power of atmosphere, ambience, context, and multi-sensorial engagement. Shoppers don’t just shop with their eyes. The prize on such high-ticket goods must surely justify the investment. At the heart of special, is effort. Making an effort (real or perceived) is what counts for our customers. The feeling that this hasn’t just come off the factory line, or that the shopper

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didn’t ‘just’ pick it up in the supermarket. This is the pitfall for premium brands as they look to expand their points of distribution – that it becomes simply too easy to come by, with too little effort. As such, premium brands should think carefully when considering their distribution strategy with regards convenience outlets. Promotions are a balancing act. Limited promotional activity can make your brand accessible to a whole new group of consumers, who feel the positive benefit of experiencing a desirable brand that might otherwise be unavailable to them. Clearly the tipping point is when they begin to perceive that brand as being ‘worth’ the discounted price, rather than the full price. Premium status can be undermined by extensive tactical promotional activity. The whole notion of ‘worth’, its perceived value, is a fundamental issue for all premium brands. Over and above the component parts of the product, premium status is derived from brand positioning, communication and distribution Going forward, Thorntons stores will become as much about brand building and brand engagement as sales. In developing our multi-channel strategy, we have embraced supermarket distribution, and although customers tell us they really like our increased availability we know we need to rebalance this availability with a stronger brand positioning. We’ll be using our store estate to deliver an engaging brand experience, such that customers feel good about the brand when they do see it on the Supermarket shelf.

An Independent Retailer Perspective

A View from the High Street Danielle Pinnington visits Raindrops on Roses, the St Albans charity shop with a difference.

Raindrops on Roses opened in St Albans towards the end of last year. It is a charity shop with a difference because it not only seeks to generate funds for local charity, Herts Against Cancer, but the team behind the store also support local craftsmen and women. So Raindrops on Roses only stocks new, rather than donated goods, and there is a distinct possibility that because of the nature of the suppliers they choose to work with, if particular lines sell out there may be a time lag before more stock will become available. Yet there is nothing amateur about this store – in fact you’d be forgiven for not even realising it is a charity shop. It is beautifully, but simply merchandised with an artisanal feel in a compact location close to the heart of St Albans. A variety of gifting categories are

carefully zoned across the space available. Whether it is clothing for babies, arty notebooks or delightful glass jars of layered cookie ingredients, there are gifting ideas for all. The volunteer staff are all passionate about the cause, and create a warm and friendly atmosphere. And so it’s not surprising that after just two months of trading the store had already raised £15,000 for charity. But the team behind Raindrops and Roses won’t be stopping there. In March they are due to start running workshops in knitting and flower arranging, hoping to become a real hub for the community, and to generate even more funds for the charity. It seems to me this is a great example of how new ideas can breathe new life into our high streets – and do it in a way that benefits so many more than just the satisfied shoppers who pass through the door. www.raindropsonroses.org.uk

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meet the team... We are a small group of highly experienced shopper research experts and aim to lead the way in shopper insight. Between us we bring years (over 150!) of industry experience, gained both client side and within leading research agencies. We focus only on shopper research and are method neutral, using a bank of tools and techniques to uncover insights that are real and lead to tangible actions. Iona Carter

Director e: iona.carter@shoppercentric.com Iona has over twenty years of experience in shopper and retail research. She joined Shoppercentric in 2006 following several years leading shopper insight with Research International, most recently as Head of Retail and Shopper.

Sharon Hodgson

Director e: sharon.hodgson@shoppercentric.com Sharon’s career started at Ipsos where she was instrumental in establishing the agency’s first Retail division. She led the Retail & Shopper specialism there for 10 years, also heading Ipsos’s Shopper Centre of Excellence for Western Europe. She left her role as Managing Director of Retail & Shopper Research in 2009 to join Shoppercentric.

Kristen Davis

Director e: kristen.davis@shoppercentric.com Following several years as one of our Associates, Kristen joined us a permanent team member in 2010. She has significant experience in consumer trends and future thinking, including previous roles as a Trends Forecaster for Initiative Media and a Qualitative Director for Hall & Partners.

Alice Synge

Marketing & Operations e: alice.synge@shoppercentric.com Alice is the oil that keeps Shoppercentric moving! Her years of experience in support roles are invaluable to us, and her particular focus is on driving our industry presence and our focus on current hot topics.

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Penny Ericson

Director e: penny.ericson@shoppercentric.com Penny has extensive experience in brand & consumer, sports marketing /sponsorship and media research (agency & client). Previously Head of Retail at IPSOS, she is a full member of the Market Research Society and ESOMAR.

Danielle Pinnington

Founder & Owner e: danielle.pinnington@shoppercentric.com Danielle spent her first 12 years as a researcher specialising in the world of NPD, branding and sales volume estimation. She rose to the position of Deputy MD at Research International before joining Incite Marketing Planning as a Board Director. Here her specialisim in shopper began to develop. In 2004 she took the decision to break out of the generalist agency world and set up Shoppercentric – and she hasn’t looked back since.

Susie Spencer

Director e: susie.spencer@shoppercentric.com

Prior to joining Shoppercentric, Susie was Head of Research at Marks and Spencer and has over ten years of experience in shopper insight. She also has significant experience in brand and advertising research.

Claire Pearson

Director e: claire.pearson@shoppercentric.com Claire has 10 years insight experience gained at Tesco, Cadbury and Sainsbury’s. It was during her time at Cadbury that she became a shopper insight specialist. Claire returned to retail in 2010, heading up a Sainsbury’s insight team guiding business and property strategy.

We lead the way in shopper research Shopper Insight... We work with the widest range of methodologies available; qualitative and quantitative, traditional and technological, pre-store and in-store. Itâ&#x20AC;&#x2122;s our experience that allows us to pick the most appropriate methodologies to answer each brief. We work as interactively as possible with our clients, so regularly workshop our results with a wide client team to turn our insights into action streams. Whether the brief is about shopper behaviour or promotions strategies, fixture layout or range evaluations â&#x20AC;&#x201C; our ambition is always to help our clients deliver bottom line growth.

Client Training... We design tailor made, interactive training sessions to deepen understanding of shopper insight. We use a variety of theory and practical exercises to really engage clients in how shoppers think right through the shopper journey. We explore a full breadth of key research techniques, where and how they are best used and how to best apply real shopper insight within the business.

Trends Research... We are proud to lead the way in Shopper Insight in the UK. We are continually conducting our own trends research on current industry related issues and are very happy to be able to share our findings and opinions at www.shoppercentric.com. We are also invited to speak at a number of leading industry conferences each year. If you have recently seen us at an event, you can download our speaker charts from the website too.

Please visit shoppercentric.com for the full story

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

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Excellent, thank you. If only we were so organised internally. Market Research Manager, Retailer

I think that’s one of the clearest debriefs I’ve ever seen – and I’ve seen a lot. Category & Trade Marketing Director, Manufacturer

You’ll be pleased to hear that your presentation ﬁgures prominently in the feedback forms as being amongst the most worthwhile. ECR Ireland Event Manager

A massive thank you for your presentation yesterday; feedback from the customer’s team was fantastic. Category Manager, Own Label Supplier

An excellent moderator – probably the best I’ve seen. Marketing Manager, Retailer

We felt very conﬁdent with your experience, track record, positive attitude and ability to deliver on time and to budget. Market Research Manager, Charity

PO Box 435 Harpenden Hertfordshire AL5 2WX

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