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How PITA Drives Retailer Growth Potential: A Publix Beverage Opportunity

How PITA Drives Retailer Growth Potential: A Publix Beverage Opportunity. Jack Conter - Director, Tools & Capabilities, Category Management. Info.shoppermarketing@coca-cola.com. Driving Retailer Growth Potential with PITA. ( Publix Beverage Opportunity Example).

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How PITA Drives Retailer Growth Potential: A Publix Beverage Opportunity

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  1. How PITA Drives Retailer Growth Potential: A Publix Beverage Opportunity Jack Conter - Director, Tools & Capabilities, Category Management Info.shoppermarketing@coca-cola.com

  2. Driving Retailer Growth Potential with PITA (Publix Beverage Opportunity Example) • Prepared by: Jack Conter • July 12, 2013

  3. How can we help Retailers influence shopper behavior in store and capture growth potential? “It all begins with the Shopper” Focusing on foundational shopper behavior: • Metrics • Drivers • Influencers

  4. Often times we are asked by Retailers to help achieve total store and category growth potential • How can we bring in more shoppers? • How can we increase trip frequency? • How can increase basket size? • Are they buying the beverage category? • What and how much do they buy? • How loyal are shoppers to a Retailer? • Is the Retailer capturing their fair share of shopper beverage needs? • How can we convert more shoppers into buyers?

  5. Understanding the growth potential at Publix begins with foundational shopper behavior

  6. Foundational shopper behavior can be measured with PITA How much was the average measured item purchase by the Retailer’s shoppers in the latest 52 weeks How frequently did the Retailer’s shoppers purchase the measured item in the latest 52 weeks Projected household Shoppers in a Retailer’s stores % of Retailer’s Shoppers who purchased the measured item in the latest 52 weeks?

  7. Nielsen Homescan provides the source for PITA foundational shopper metrics Nielsen National Account Shopper Template

  8. Nielsen National Account Shopper TemplateFact Definitions

  9. Let’s use PITA to understand the Publix current situation for total measured sales MEASUREMENT Total Store All UPC Coded Products Total Outlets 100.0% 119,281 158.7 $39.15 ` 12,763 100.0% 33.9 $39.66 13,471 100.0% 23.2 $36.54 ` 100.0% 30.5 $41.00 21,839 85,359 100.0% 20.8 $55.12 Publix delivers the highest Total Store transactions that are enhanced with trip dollars on par with the national competitive set Source: Nielsen Homescan 52 weeks ending Q1, 2013

  10. What is the Publix current situation for the Beverage Category? MEASUREMENT Total Beverages Total Outlets 99.7% 119,281 46.6 $8.09 12,763 89.0% 18.8 $8.45 13,471 82.8% 13.6 $9.41 90.3% 17.6 $9.07 21,839 85,359 75.8% 10.6 $7.48 Publix still drives the highest Total Beverage transactions mixed with trip dollars that are close to par with the national competitive set Source: Nielsen Homescan 52 weeks ending Q1, 2013

  11. What is the Total Carbonated Soft Drinks (SSD) current situation at Publix? MEASUREMENT Total Carbonated Soft Dinks SSD Total Outlets 94.3% 119,281 21.5 $6.47 69.9% 12,763 8.9 $6.55 13,471 63.3% 7.7 $7.66 75.7% 10.4 $7.61 21,839 85,359 53.0% 7.0 $5.81 A SSD opportunity for Publix emerges with Trip Frequency and Transaction size versus the national competitive set Source: Nielsen Homescan 52 weeks ending Q1, 2013

  12. What is the math behind PITA? Publix Total US - SSD Category Example 12,763 Do not buy Carbonated Soft Dinks SSD 682 Buy Carbonated Soft Dinks SSD somewhere 12,081 3,158 Buy Carbonated Soft Dinks SSD, but not at Publix 8,923 Buy Carbonated Soft Dinks SSD at Publix 8,923 / 12,763 = 69.9% Source: Nielsen Homescan 52 weeks ending Q1, 2013

  13. What is the math behind PITA? Publix Total US - SSD Category Example $518,598 Total Dollars paid for Carbonated Soft Dinks SSD at Publix ($000’s) 406,406 Total # of Publix Trips by Carbonated Soft Dinks SSD Buyers (000’s) # of Trips where Carbonated Soft Dinks SSD were not purchased 327,160 79,246 # of Trips where Carbonated Soft Dinks SSD were purchased 8,923 # of Households buying Carbonated Soft Dinks SSD at Publix 79,246 / 8,923 = 8.9 $518,598 / 79,246 = $6.55 Source: Nielsen Homescan 52 weeks ending Q1, 2013

  14. What are the drivers we can use to influence these foundational PITA shopper metrics?

  15. Buyer Conversion Item Buyers / Retail Shoppers = Buyer Conversion Retailer Shoppers: 30 shoppers who buy the measured item and shop at the Retailer, although they may not have purchased the measured item in the Retailer Item Buyers: Of those 30 shoppers, 20 actually buy the measured item in the Retailer Buyer Conversion: The 67% of shoppers who buy the measured item in the Retailer are known as Buyer Conversion (20/30= 67%) A Shopper only has to buy the category once in a year to be considered converted!

  16. Trip Conversion Item Trips / Retail Trips = Trip Conversion Trip Conversion: The 30% of shopping trips by the measured item buyers who buy the measured item in the Retailer are known as Trip Conversion (3/10 = 30%) Retailer Trips: 10 shopping trips made by measured item buyers in the Retailer, although they may not have purchased the measured item in the Retailer Item Trips: Of those 10 shopping trips, 3 trips included the purchase of the measured item in Retailer

  17. Buying Rate (Item $ per Item Buyer) Total Outlets - Total Beverages example X $8.09 = Buying Rate: Annual measured item $ spent per Household. (46.7 x $8.09 = $377.60) Purchase Frequency: Average number of shopping trips (purchase occasions) on which the measured item was purchased in the Retailer (46.7) Purchase Size: Average measured item $ per Shopping Trip in the Retailer ($8.09) Source: Nielsen Homescan

  18. What are the drivers to influence a Retailer’s PITA Publix Total US - SSD Category Example Item Buyers How many SSD Category Shoppers buy at Publix (000’s) 8,923 Buyer Conversion What % of SSD Shoppers buy the SSD Category at Publix 73.9% ÷ Retailer Shoppers How many SSD Category Shoppers buy anywhere (000’s) 12,081 Item Trips How many Publix trips included the SSD Category purchase (000’s) 79,246 Trip Conversion What % of Publix Trips include the SSD Category 19.5% ÷ Retailer Trips How many Publix trips did SSD Category Buyers make (000’s) 406,406 Purchase Frequency How often they buy the SSD Category in Publix 8.9 Buying Rate How much the Publix Shopper spends on the SSD Category each year $58.14 X Purchase Size How much they spend each Publix trip they buy the SSD Category $6.55 Source: Nielsen Homescan 52 weeks ending Q1, 2013

  19. Shopping behavior influencers are the driving levers • Shopper Behavior Influencers • BOGOS, Advertising, Bonus Packs, Bundling, IC Coolers, Coupons, Displays, Messaging, Point of Influence, POS, Promotions, Weekly Circulars, TPR’s, and special coupon offers Publix Total US - SSD Example SSD Category 69.9% 12,763 8.9 $6.55 Buyer Conversion What % of SSD Shoppers buy the SSD Category at Publix 73.9% Buying Rate How much the Publix Shopper spends on the SSD Category each year $58.14 Trip Conversion What % of Publix Trips include the SSD Category 19.5% Source: Nielsen Homescan 52 weeks ending Q1, 2013

  20. THANK YOU For additional information please visit the Shopper/Customer Marketing Community at www.KOSCMarketing.com

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