10 Shopper

Insights that You Must

Know and Dos & Donts

These shopper insights are important because

Contribute to our knowledge and understanding of in-store shopper behaviour
Use this knowledge to adapt in-store environments to better meet shopper needs Use this knowledge to help brand wins at the point of sale

Highlight the importance the store environment has on the shopper

Better assess shopper needs when developing retail strategies and category solutions Understand the implications of shopper insights

Where do these insights come from?

Extensive shopper research carried by Zdology and Research International China across a number of categories 100+ shopper research projects 3000 hours of in-store video Partnership projects with major retailers

10 SHOPPER INSIGHTS

1 3

Shoppers have difficulty making decisions Shoppers want to feel smart when making decisions Shoppers limited ability to process too much information Shoppers use memory to give meaning to objects

2 4

5 7 9

Shoppers need consistent messages in and out of the store

Discontinuity creates triggers to attract shoppers attention

Shoppers recognize visual stimuli most easily Shoppers use familiar segments to speed up their selection process Shoppers tunnel vision and boomerang behaviour Shoppers need to be reminded of the items they need

6
8 10

1. Shoppers have difficulty making decisions

More choices, more difficult to make a selection It is very common for shoppers not to know exactly what they want. Shoppers need information/education to make a decision.

1. Shoppers have difficulty making decisions

Avg. # SKUs Carried by a Supermarket - Shampoo 120

100 80 60 40 20 0 1996 2000 2004 2006

Source: CCFA Chain Store Annual Report

46% shoppers spend 3min+ in front of shelf

52% shoppers pick up 3+ products

Source: Mini-Market Shopper Research

1. Shoppers have difficulty making decisions

More choices, more difficult to make a selection It is very common for shoppers not to know exactly what they want. Shoppers need information/education to make a decision.
Dos

Donts
Assume shopper know how to choose products Overwhelm shoppers with POP materials!

Education in store through relevant POS materials Train promoters on how to facilitate shoppers selection process

2. Shoppers want to feel smart when making decisions

I Want Cheap

Shoppers want to make a wise and smart decision. They also want to be seen by peers as making the right choice.

I Want Value

I Want to Be Smart!!!

2. Shoppers want to feel smart when making decisions

Do you think the shopper will feel smart with this promotion?

2. Shoppers want to feel smart when making decisions

Shoppers want to make a wise and smart decision. They also want to be seen by peers as making the right choice.
Dos Donts
Disappoint shoppers, even after the sale (e.g. high-low price strategy)

Focus on how to make shoppers feel that theyve made a smart decision rather than on the deal per se Emphasize Smart Choice in promotional activities.

3. Shoppers limited ability to process too much information

Some information is compressed Some information is screened out

The mind can only process 5-7 pieces of information Thousands of stimuli exist in a store: Too much information leads to lock out

Result: Only less

than 50% of shoppers are able to recall any available POSM!

3. Shoppers limited ability to process too much information

Some information is compressed Some information is screened out

The mind can only process 5-7 pieces of information Thousands of stimuli exist in a store: Too much information leads to lock out
Dos Donts
Overwhelm shoppers with clutter in store and on the shelf

Stimuli need to be clear and unambiguous Create relevant in-store communications that help shoppers make the right choice

4. Shoppers use memory to give meaning to objects

Shoppers need to be given a clear stimulus in order to access their memory.

Whats this brand?

4. Shoppers use memory to give meaning to objects

Shoppers need to be given a clear stimulus in order to access their memory.

Whats this brand?

4. Shoppers use memory to give meaning to objects

Whats this brand?

4. Shoppers use memory to give meaning to objects

Shoppers need to be given a clear stimulus in order to access their memory.
Dos

Donts
Use non-standard font, colour or shape Use visuals that inconsistent with those used in other channels: e.g. TV ad, print

Use visual stimuli that are consistent with what shoppers know for better memory retrieval Use existing pathways colour, shape, font Merchandising tools need to have meaning

5. Shoppers need consistent messages in and out of the store

5. Shoppers need consistent messages in and out of the store

Shoppers need consistent messages to make the transition from consumers to shoppers.
Dos

Donts
Dont break the dialogue at POS by sending a different and/ or irrelevant message.

Use 360-degree communication Align above- and below-the-line activity In-store communication also needs to be aligned with shoppers needs and mission

6. Discontinuity creates triggers to attract shoppers attention

The mind ignores what it knows and focuses on differences

6. Discontinuity creates triggers to attract shoppers attention

The mind ignores what it knows and focuses on differences

6. Discontinuity creates triggers to attract shoppers attention

The mind ignores what it knows and focuses on differences
Dos

Donts
Design without any discontinuous, stimulating element

Enhance shelf design & merchandising tools by using: Different shelf layouts Different lighting intensities Different flooring Curved designs Different colour patterns

7. Shoppers recognize visual stimuli most easily

From flashy visuals

7. Shoppers recognize visual stimuli most easily

to more subtle but unique approaches.

7. Shoppers recognize visual stimuli most easily

Whats this ?

7. Shoppers recognize visual stimuli most easily

Shoppers can process information in visual form (e.g. pictures) much more easily than words.

Dos
Use pictures/visuals Simple words such as SAVE, SALE, FREE

Donts
Use wordy text in POS materials (shoppers wont read them!)

8. Shoppers use familiar segments to speed up their selection process

Shoppers first sort out what is not relevant, then choose among the remaining products.

8. Shoppers use familiar segments to speed up their selection process

Seven distinct category segments have been identified Little association between cat and dog food Pet health segment is associated with both cat and dog

Cat food

Cat treats/ toys

Cat litter

Pet health

Dog walking

Dog treats/ toys

Dog food

8. Shoppers use familiar segments to speed up their selection process

Shoppers first sort out what is not relevant, then choose among the remaining products.
Dos

Donts
Organize products on the shelf in a way that is not aligned with shoppers selection logic. Organize the store in a way that shoppers need to spend more time to find the brand they want.

Make it easy for the shopper to sort out what is and is not relevant Organize products based on how shoppers make decisions Think about needs-based shelf layout

9. Shoppers tunnel vision and boomerang behaviour

Shoppers have a tunnel vision when viewing fixtures at eye level. Also, if they cannot find what they want half-way down the aisle, they usually turn round and leave the fixture.
Corridor side
Module 1 Shelf 1 2 3 4 5 6 7 8 2 3 4 5 6 7 8

Eye level

% of interaction
6% - 10% 4% - 5% 3% or below

9. Shoppers tunnel vision and boomerang behaviour

Shoppers have a tunnel vision when viewing fixtures at eye level. Also, if they cannot find what they want half-way down the aisle, they usually turn round and leave the fixture.
Dos Donts
Dont expect shoppers to go the extra mile to find your brand because they wont!

Place relatively weak brands at eye level, so they stand a better chance to be noticed Place your brands close to the main entrance of the fixture

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10. Shoppers need to be reminded of the items they need

100% Planned to buy instant noodle? Yes 74% No

71% of shoppers make their final purchase decision in store!

No

26%

12%

Purchased instant noodle or not? Yes 62% Not planned but purchased instant noodle

Planned but not purchased instant noodle

Planned and Purchase instant noodle

Closure rate analysis

Details of preplan

Impulse purchase rate analysis

Why? In-store barriers

Changed Plan or not? Yes

Why? In-store triggers

33%

Why? In-store impacts

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10. Shoppers need to be reminded of the items they need

Reasons for Impulse Purchase - (%)

I was reminded by in-store stuff

26% Impulse Purchase

61

Not planned but purchased instant noodle

It is on promotion now

29
Impulse purchase rate analysis

Recommended by promoter

6
Why? In-store triggers

Recommended by accompanier 3 Base=All Hypermarket Impulse Purchasers

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10. Shoppers need to be reminded of the items they need

Breakfast solution Squeeze a minute into your morning

Reminding shoppers to buy their morning fresh juice with their newspaper.

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10. Shoppers need to be reminded of the items they need

Simple meal solution approach. Increasing value of purchase with pasta and cook sauces.

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10. Shoppers need to be reminded of the items they need

Grouping categories in line with shoppers logical selection process triggers their memory and leads to more sales whether planned, unplanned or impulse.
Dos

Donts
Use secondary displays with illogical category adjacency Arrange the fixture based on what makes sense to the Category Manager!

Organize the fixture around shoppers needs and mission to make the most of their limited time at POS Create in-store solution centers

Summing up
Consumers and shoppers are two sides of the same coin, hence consistency is needed in our communications. The store environment has enormous impact on shoppers and their behaviour. In order to influence shoppers to our advantage, understanding what makes them tick is fundamental. Therefore, shopper insights are key to win in the last mile.

Thank you for your attention!