slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Center Store Consumer Insights PowerPoint Presentation
Download Presentation
Center Store Consumer Insights

Loading in 2 Seconds...

play fullscreen
1 / 32

Center Store Consumer Insights - PowerPoint PPT Presentation


  • 305 Views
  • Uploaded on

Center Store Consumer Insights. Our Consumers & Shoppers. Our Consumers & Shoppers. How the Landscape is Evolving Economic Conditions Changes in Shopper Behavior Channel Trends Continuing Behaviors Consumer “Value” Revisited Implications. Negative. Positive. Neutral.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Center Store Consumer Insights' - Mia_John


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Center Store

Consumer Insights

Our Consumers & Shoppers

slide2

Our Consumers & Shoppers

  • How the Landscape is Evolving
    • Economic Conditions
    • Changes in Shopper Behavior
      • Channel Trends
    • Continuing Behaviors
  • Consumer “Value” Revisited
  • Implications
starting to see a modest recovery in key economic indicators

Negative

Positive

Neutral

Starting to see a modest recovery in key economic indicators

Economic Conditions

Sources: U.S Leading Economic Indicators

economic conditions
Economic Conditions
  • Unemployment remains high, yet jobs increased significantly in March 2010
  • 16% of shoppers are worried about their job security, down from 20% a year ago2

U.S. Jobs Lost or Gained

10%

Unemployment Rate

Source: Seasonally Adjusted U.S. Total Non Farm Employment, U.S. Government; 2. Shopper Loyalty Card Data from Leading National Retailer 2010

economic conditions5

2004

2006

2008

2009

2010

2002

2003

2005

2007

2001

Economic Conditions
  • Consumer confidence has improved recently

The Conference Board - Nine census regions, 5,000 US households; 1985 = 100

changes in shopper behavior

Spending on Indulgences

50%

45%

40%

35%

30%

% of consumers

25%

20%

Cutting holidays abroad

15%

Cutting car purchase

10%

Buying higher quality premium food and beverages

5%

Increasing or maintaining spending on “staycations”

0%

June

July

August

September

October

November

December

Changes in Shopper Behavior
  • Shoppers increase their hesitancy with big expenses, but continue to indulge in food and beverage

Source: Data Monitor “Recovery from Recession” March 2010

slide8

Changes in Shopper Behavior

  • Shoppers began spending more in late 2009
    • Personal savings dropped to 3.1% in February 2010 from almost 5% a year ago2

Total Retail Sales ex Auto

% Change vs. Prior Year

Source: Dept of Commerce - Total Retail Sales exc. Auto; 2. Bureau of Economic Analysis

slide9

Changes in Shopper Behavior

  • Shopping trips increased in 2009

Average Shopping Trips per Household

All Outlet % Change vs. Prior Year

Source: IRI Consumer Network; 52 weeks ending 12/27/2009 and same period prior years

changes in shopper behavior10

Shopper Trips

Dollar Sales per Trip

Unit Sales per Trip

Changes in Shopper Behavior
  • Shoppers making less trips to Center Store Grocery, but increasing units purchased per trip

Source: IRI April 2010 Total U.S. All Outlets, Total Edible Grocery

changes in shopper behavior11
Changes in Shopper Behavior
  • Commissary shoppers are increasing their trips, and have significantly higher spend per trip than Grocery Channel shoppers

Item Trips per Buyer

Item $ per Trip

+1%

+0%

+1%

+3%

Source: Nielsen Homescan

changes in shopper behavior12
Changes in Shopper Behavior
  • Commissary growth outpaced Grocery during recession onset,but slowed during 2009

+3%

+3%

+12%

+2%

+5%

+5%

Source: Nielsen Homescan

changes in shopper behavior13
Changes in Shopper Behavior
  • Outside the gate, consumers are increasing their purchases

Source: Nielsen RMS March 2010

slide14

4%

Redemption Growth

4%

6%

20%

12%

12%

16%

20%

71%

65%

26%

20%

0%

100%

Changes in Shopper Behavior

  • Coupon redemption grew 27% in 2009 across all channels

Share of Redemption

Military

Convenience

Pharmacy

Dollar

Mass/SC

Grocery

Source: Nielsen April2010

slide16

Continuing Behaviors

  • Shoppers’ quest for bargain hunting is beginning to slow, but is still strong

Shopping Behaviors

% of Shoppers Participating in Activity

Source: IRI 2010 FMI Economic Survey; Americanism Study: IRI Economic Trend Database, IRI AttitudeLink Survey of 1,067 Consumers

slide17

Continuing Behaviors

  • Pre-planning has become more important to shoppers

Where Purchase Decisions Are Made

% of Shoppers

Source: Longitudinal Economic Study Series, IRI AttitudeLink, n=1,000 + shoppers

slide18

Continuing Behaviors

  • 64% of shoppers work from a pre-made list
    • Of those shoppers, store flyers are key in list-making preparation

List Making Behaviors

Source: IRI April 2010

slide19

Continuing Behaviors

  • 66% of shoppers admit to varying from their list

Reason for Impulse Purchases Away From Lists

slide20

Continuing Behaviors

  • Home meals at highest level since 1993

# Annual Meals Prepared & Consumed In-Home per Person

Source: The NPD Group

consumer value revisited
Consumer Value: Revisited
  • Food price inflation in 2009 was only 0.5% for food-at-home, but 3.5% for food-away-from home2

Reasons for Preparing Meals at Home

Source: The NPD Group; 2. Economic Resource Service, Food Business News March 2010

brand value remains important to shoppers especially pre store decisions
Brand value remains important to shoppers, especially pre-store decisions

Consumer Value: Revisited

What is important to you in making a decision on brand? % of Shoppers

IN-STORE FACTOR

PRE-STORE FACTOR

Source: Longitudinal Economic Study Series, IRI AttitudeLink, n= 1000+ Shoppers

slide24

Consumer Value: Revisited

  • For consumers, “Value” continues to be much more than a price point
    • Value assessments are complex & ever changing
    • Value is perceived as all that a brand or product has to offer – and weighed in context of a price point and a host of alternative choices

Mom: “It’s what I get for what I pay”

Source: The J.M. Smucker Company

consumer value revisited25
Consumer Value: Revisited

30%

12%

18%

18%

23%

25

Source: The J.M. Smucker Company

consumer value revisited26
Consumer Value: Revisited

Brand & Quality Lovers

  • Quality is paramount in purchase decisions
  • Rely on brand names to deliver quality
  • Willing to pay a premium for certain benefits, like health & wellness

30%

12%

18%

18%

23%

26

Source: The J.M. Smucker Company

consumer value revisited27
Consumer Value: Revisited

Brand & Quality Lovers

  • Quality is paramount in purchase decisions
  • Rely on brand names to deliver quality
  • Willing to pay a premium for certain benefits, like health & wellness

Quality Savvy

  • Focus their purchase decisions on fewer, yet high quality products
  • Not driven by price or sales
  • Reduce overall buying and make thoughtful decisions to ensure they can afford the high quality items they like

30%

12%

18%

18%

23%

27

Source: The J.M. Smucker Company

consumer value revisited28
Consumer Value: Revisited

Brand & Quality Lovers

  • Quality is paramount in purchase decisions
  • Rely on brand names to deliver quality
  • Willing to pay a premium for certain benefits, like health & wellness

Quality Savvy

  • Focus their purchase decisions on fewer, yet high quality products
  • Not driven by price or sales
  • Reduce overall buying and make thoughtful decisions to ensure they can afford the high quality items they like

30%

12%

18%

18%

23%

Family Values

  • These Moms are smart shoppers who look for good prices & deals, but they do not buy on price alone
  • Generally less willing to pay a premium for convenience, preferring to “do-it-myself” 

28

Source: The J.M. Smucker Company

consumer value revisited29
Consumer Value: Revisited

Brand & Quality Lovers

  • Quality is paramount in purchase decisions
  • Rely on brand names to deliver quality
  • Willing to pay a premium for certain benefits, like health & wellness

Quality Savvy

  • Focus their purchase decisions on fewer, yet high quality products
  • Not driven by price or sales
  • Reduce overall buying and make thoughtful decisions to ensure they can afford the high quality items they like

30%

12%

18%

18%

23%

Family Values

Drifters

  • These Moms are smart shoppers who look for good prices & deals, but they do not buy on price alone
  • Generally less willing to pay a premium for convenience, preferring to “do-it-myself” 
  • No overarching value philosophy with respect to grocery purchasing
  • Neither strongly price-oriented, nor quality-driven
  • Still appreciate deals, some aspects of value, some convenience elements, and small indulgences, but not overly so

29

Source: The J.M. Smucker Company

consumer value revisited30
Consumer Value: Revisited

Brand & Quality Lovers

  • Quality is paramount in purchase decisions
  • Rely on brand names to deliver quality
  • Willing to pay a premium for certain benefits, like health & wellness

Price Dependents

  • Very price conscious
  • Hunt for bargains in order to get by from paycheck-to-paycheck
  • Need to stretch every dollar and will do whatever it takes to find the best price
  • Brands are not very important, since price trumps all else

Quality Savvy

  • Focus their purchase decisions on fewer, yet high quality products
  • Not driven by price or sales
  • Reduce overall buying and make thoughtful decisions to ensure they can afford the high quality items they like

30%

12%

18%

18%

23%

Family Values

Drifters

  • These Moms are smart shoppers who look for good prices & deals, but they do not buy on price alone
  • Generally less willing to pay a premium for convenience, preferring to “do-it-myself” 
  • No overarching value philosophy with respect to grocery purchasing
  • Neither strongly price-oriented, nor quality-driven
  • Still appreciate deals, some aspects of value, some convenience elements, and small indulgences, but not overly so

30

Source: The J.M. Smucker Company

implications
Implications
  • Worst of recession appears to have passed, yet we remain in challenging times
  • Consumer restraint will likely become “the new normal”
  • Consumers are better informed and more demanding. Important to engage with them in both traditional & new ways
  • Success can be achieved by connecting with consumers & shoppers at the right place & time … anytime inside the gate
  • Targeted efforts will become more important:
    • Opportunity to increase trips inside the gate as consumers are shopping more outlets
    • Opportunity to increase impulse purchases
  • Continue to leverage insights to remain relevant with our consumers
  • Trusted brands and retailers will continue to win with innovation & differentiation