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Shoppers in stores. What wins their wallets?. Presentation speakers. Nikhil Sharma VP, Consumer & Shopper Analytics, Nielsen . Daniel Jenski Associate Director of Consumer Analytics, Mondelēz International . #Consumer360. Shopper quiz. 96%.

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Shoppers in stores

Shoppers in stores

What wins their wallets?


Presentation speakers
Presentation speakers

Nikhil SharmaVP, Consumer & Shopper Analytics, Nielsen

Daniel JenskiAssociate Director of Consumer Analytics, Mondelēz International

#Consumer360


Shopper quiz
Shopper quiz

96%

  • % of CPG sales that occur in brick & mortar stores?

67%

  • % of brand decisions that are made in-store?

#Consumer360


Shopping is becoming more complex

EXPONENTIALGROWTH

of product advertisement

24,000 NEW

retail stores since 2009

50% INCREASE

in SKUs in 7 years

#Consumer360

4


All marketers want to drive growth by optimally serving the shopper
All marketers WANT TO DRIVE GROWTH BY optimally serving the shopper

However, the manufacturer and retailers mindset can be different

EXCESSIVE CHANGE MAY DISRUPT SHOPPERS

DRIVE GROWTH

RETAILER

More Shoppers

More Trips

More Items

SHOPPERS

GOAL

Optimally serve shoppers

Grow sales

Maximize profitability

DRIVE GROWTH

MORE INNOVATION TO ENGAGE & RETAIN SHOPPERS

MANUFACTURER

#Consumer360


Technology can help drive greater alignment in shopper marketing
TECHNOLOGY CAN help drive greater ALIGNMENT IN SHOPPER MARKETING

MEASURED CHANGE

RETAILER

GOAL

Optimally serve shoppers

Grow sales

Maximize profitability

RAPID CHANGE

TECHNOLOGY = a KEY enabler!

MANUFACTURER

#Consumer360


In fact technology is already being used extensively in shopper marketing
In fact, Technology is already being used extensively in shopper marketing

geo-location based advertising

PLACE

virtual store technology, shelf imaging

PURCHASE

prior lists & recommendation servicesPLAN

smartphone payment methods

digital ethnography

Path to Purchase

BUY

DEMAND

ENGAGE

social advertising

CONSUME

technology enabled consumption tracking

EVALUATE

social listening


today we will demonstrate how two technologies are helping to win in-store

1

2

Image Recognition

Virtual Store

What is it used for?

Easier Testing

Better Execution

“Understand what to do in-store”

“Ensure it actually gets done”

What benefit does it drive?

  • Shelf layout

  • Pack and Price Architecture

  • Merchandising

  • Compliance

  • Availability

  • Visibility

#Consumer360


1 to win in-store

Virtual Store

Easier Testing

“Understand what to do in-store”

#Consumer360


Virtual store technology
Virtual store technology to win in-store

Online platform to measure in-store shopping behavior

Consumers can

navigate virtually

Can customize any retail environment from big box to small format – traditional to

Modern trade

Can help optimize: price, promotion, assortment packaging, new product impact and more!

Virtual Store


Mondel z wanted to leverage virtual store testing
mondelēz to win in-storewanted to leverage virtual store testing

The multipack business for Biscuits had been decreasing for years while the multipack business for Salty Snacks had been growing

There were many hypotheses about the cause and the possible solutions:

Alternative pricing & promotion strategies?

New Pack counts or varieties?

  • Alternative shelf layout?

How do we test these ideas in an efficient & cost-effective way without alienating shoppers?


Virtual store gives mondel z a safe testing environment
Virtual store gives mondelēz a ‘safe’ testing environment

  • Study Design

  • 21 shelf sets

  • 400 monadic (stand-alone) reads

  • Screened for primary grocery shoppers 18-65 who purchased cookies, crackers or salty snacks in the last 6 months

    • MDLZ Multi-pack buyers

    • MDLZ Multi-pack non-buyers

    • Salty Snack multi-pack buyers

    • Moms/Dads w/kids ages 2-5, 6-12, 13-17

  • Included post-survey questionnaire

Virtual Store Demo

#Consumer360


We were able to test various scenarios

1 environment

We were able to test various scenarios…


And quantify the expected impact
… and quantify the expected impact environment

Reduce unit count in an existing multi-pack product

Mondelez would lose 2.6 Million Unitsto competing brands!

Our Retail Partner would sell 1.4 Million fewer Units of the category!

  • Brand Impact

  • Category Impact

We tested 27such ideas … in only 12 weeks!


Mondel z developed tangible ideas to reverse the downward business trend
mondelēz environment developed tangible ideas to reverse the downward business trend

  • Larger sizes can work

  • on bottom shelf, but smaller sizes tend to perform better at eye level

  • Do not include constant consumables in a multipack shelf

Don’t be too aggressive withnew size promo

Maintain key flavors in line

Considerdownsizecarefully

Launch new sizes


We improved our retail partnerships realized several other benefits
We improved our retail partnerships & realized several other benefits

Quicker Relative To In-Market Testing

No Need To Manufacture Test Products

No Inconvenience To Our Retail Partners

Cheaper Relative To In-Market Testing

Able To Test Results In Mass and Grocery Formats

Tested More Ideas Compared To In-Market Testing

#Consumer360


The virtual store technology is a powerful solution to drive impact at retail
The Virtual benefitsstore technology is a powerful solution to drive impact at retail

The Benefits:

Confidential and secure

Does not disrupt retailers

Comprehensive and powerful management tool

Less expensive and faster

Flexible

Global solution

#Consumer360


2 benefits

Image Recognition

Better Execution

“Ensure it actually gets done”

#Consumer360


Execution at retail is critically important
Execution at retail is critically important benefits

As an industry, we invest significantly here…

… but often fall short here

EXECUTION

INNOVATION

MARKETING

#Consumer360


What is really happening in store
What is really happening in store? benefits

?

“What you think is happening”

vs.

“What is actually happening”

#Consumer360


Image recognition technology
Image recognition technology benefits

Smartphone based technology to help improve in-store execution

Revolutionary technology that applies automatic image recognition to the tracking of in-store implementations

Transforms digital photographs taken at the point of sale into planograms

Allows you to track and evaluate the status of planogram compliance & key KPI’s such as ‘share-of-shelf’

Shelf Imaging


Shelf imaging allows you to fix issues at retail in a nearly real time manner
Shelf imaging allows you to fix issues at retail in a nearly real time manner

Picture of Actual Shelf

Planogram of Actual Shelf

“How Well Are We Doing?”

“What Should We Fix?”

Real

Agreed

Differences


A health beauty manufacturer used image recognition to execute better at retail
A health & beauty manufacturer used image recognition to execute better at retail

BUT

Had significant opportunities to improve how they tracked & executed in-store

Long history of being a leading innovator in the skin care category

Current methods of tracking execution were sub-optimal

Manually collected self reported data + Time consuming consolidation process = Long timeframe for shelf changes


Execution improved significantly resulting in substantially lower opportunity cost
Execution improved significantly resulting in substantially lower opportunity cost

Food For Thought…

Stores Meeting Minimum ‘Share of Shelf’ Requirement

(Indexed to 100)

February

  • What are your sales from promotions?

  • How well are your promotions executed at retail?

  • What could an 11% increase in promotional sales mean for your business?

35

For a brand with nearly $45MM in sales from promotions…

39

May

$4.5 Million

Incremental Sales Opportunity!

+11%

Improvement in Execution!


Image recognition technology can deliver other substantial benefits
Image recognition technology can deliver other substantial benefits

Granular Data

Quick Turnaround

Lower ‘opportunity cost’ for retailers

High Accuracy

Improved shopper satisfaction

More effective sales

force deployment


Technology can drive tangible outcomes and more effective shopper marketing!

1

2

Image Recognition

Virtual Store

Easier Testing

Better Execution

“Understand what to do in-store”

“Ensure it actually gets done”

#Consumer360


In store technologies can provide a myriad of benefits
in-store technologies can provide a myriad of benefits shopper marketing!

Scalability

Deploy at scale compared to some traditional methods

Cycle Time

Significantly improve ‘time to market’

Privacy

Offer privacy against competitors

Shopper Disruption

Result in limited to no disruption to the shopper

#Consumer360


An issue focused approach remains key to appropriate use of technology
An issue-focused approach remains key to appropriate use of technology

Clearly identify the issue you’re looking to solve

Set clear objectives/

measures of success

Think through various

approaches and tools

Determine whether and what part technology can play in the full solution

#Consumer360


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