Channel Migration Presentation
-
Upload
jeffmyers1 -
Category
Documents
-
view
217 -
download
0
description
Transcript of Channel Migration Presentation
-
1 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 1 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Times & Trends August 2012
Charting a Course on the Voyage for Value
Channel Migration:
-
2 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 2 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Executive Summary
INSIGHT ACTION
Channel penetration and channel sales trends are evidence of the intensifying battle for share
of grocery spending
Drive purchase frequency and share with a value-oriented and localized assortment of
high-demand categories, such as meal
ingredients, meal components and low-cost
convenient meals
Step up frequency and granularity of consumer and market assessment in order
to anticipate and proactively address
changes in trip mission rituals
Develop and prominently tout a value proposition founded on the needs and wants
of primary and high-growth consumer
segments
Trends in number of channels shopped hint at a further honing of consumer shopping
strategies, where consumers confine their
CPG spending to a handful of channels that
they perceive as offering the greatest value
Trip frequency is slowing, while per trip spending is on the rise, marking yet another
change in trip mission strategies as
consumers continue to evolve their behaviors
in response to ongoing market and personal
financial considerations
-
3 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 3 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Executive Summary
INSIGHT ACTION
Drug, dollar and club channels each captured share of CPG spending during
the past year, posting important gains
across CPG departments
The Internet is having a profound impact on CPG purchase behavior and quickly
gaining share of CPG spending
Invest to understand growth trends around the Internet as a shopping tool for
learning about and purchase of CPG
products, and how to align marketing
strategies to leverage this tool to
influence and inform your key shopper
segments
Closely monitor competitor strategies vis--vis new market entry to enable rapid
refinement/realignment of own strategies to
reflect evolving competitive landscape and
to protect and grow share across key CPG
categories and consumer segments
-
4 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 4 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Trends around number of channels shopped are shifting, hinting at the possibility that
consumers may be limiting their spending to the channels that offer the greatest
perceived value.
# of CPG Channels Shopped
% of Consumers
2012
Five
24% Six
28%
Seven
19%
Eight
5%
One
1%
Two
2% Three
7%
Four
14%
Source: SymphonyIRI Consumer Network, 52 weeks ending 4/15/2012
% of Consumers Shopping Multiple Channels
By # of CPG Channels Shopped
2011-2012
Source: SymphonyIRI Consumer Network
Number of Channels
46.3% 46.7% 44.5% 49.2%
51.4% 50.9% 52.4% 48.9%
0%
50%
100%
Q3 2011 Q4 2011 Q1 2012 Q2 2012
10> 5-9
-
5 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 5 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Supercenters and dollar stores are demonstrating healthy traction, and successfully
winning heavy shoppers from across competing CPG channels.
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Supercenter & Dollar Channel Penetration
Point Gains Among Heavy Channel Shoppers
1.2
0.3
1.3 1.9 1.8
1.2 0.7
1.3 0.9
1.9
Heavy Dollar
Heavy Club
Heavy Mass
Heavy Grocery
Heavy Super
Heavy Drug
Supercenter Dollar Store
Grocery
Supercenter
Mass
Club
Drug
Dollar
98.5%
73.9%
74.5%
51.7%
78.7%
65.1%
(0.1)
+1.0
(2.0)
0.0
+0.1
+1.3
Channel 2012
Penetration
CPG Shopping Trends
% Households Buying by Channel
Point Change
vs 2011
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
-
6 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 6 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
CPG trip frequency has been on a slow decline during the past year, while per trip
expenditures have inched upward.
Average Purchase Occasions per Household &
Average Dollars per Purchase Occasion
All Outlet % Change vs Prior Year
-5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112
Purchase Occasions Dollars per Purchase Occasion
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
-
7 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 7 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
CPG trip behavior has been mixed across channels and trip missions during the past
year, with dollar and drug channels benefitting from fill-in and special purpose trends.
2012 Average Purchase Occasions per Household
% Change vs Prior Year
0.4%
6.0%
2.7%
2.1%
-3.2%
-2.4%
-0.4%
Convenience
Dollar
Drug
Club
Mass
Supercenter
Grocery
Retailer Trips by Trip Mission
% Change vs Prior Year
-5.0%
-3.0%
-1.0%
1.0%
3.0%
5.0%
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Total Trips Special Purpose
Quick Trips Pantry Stocking
Fill In
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
-
8 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 8 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Average basket size has been on the uptick during the past year, following several
quarters of strong declines; pantry stocking and fill-in trips have seen the strongest,
most consistent growth.
8.0%
0.4%
-2.1%
2.0%
-1.0%
-0.1%
2.6%
Convenience
Dollar
Drug
Club
Mass
Supercenter
Grocery
Basket Size by Trip Mission
% Change vs Prior Year
-5.0%
-3.0%
-1.0%
1.0%
3.0%
5.0%
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Total Trips Special Purpose
Quick Trips Pantry Stocking
Fill In
2012 Average CPG Dollar Sales per
Purchase Occasion
% Change vs Prior Year
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
-
9 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 9 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Channel share has shifted slightly during the past year, with drug, dollar and club
channels each gaining ground at the expense of grocery and mass merchandise.
CPG Dollar Share by Channel*
Grocery
Supercenter
Mass
Drug
Dollar
Club
Specialty
47.9%
18.6%
5.7%
5.8%
1.9%
10.3%
6.7%
(0.3)
+0.1
(0.1)
+0.1
+0.1
+0.3
(0.1)
Channel 2012 Share Point Change vs 2011
*Note: Convenience channel excluded as data are not fully representative; share will not total to 100% as not all channels are highlighted
Source: SymphonyIRI Consumer Network, 52 weeks ending 7/8/2012
-
10 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 10 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Department-level dollar share trends are quite mixed at the channel level, but the drug
and dollar store channels each captured share across CPG departments.
Dollar Share Point Change by Department
2012 vs 2011
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Grocery Drug
Mass
Merchandise Supercenter Club Dollar Specialty
Beverages (0.8) +0.3 (0.2) (0.6) +0.4 +0.2 +0.6
Frozen (0.6) +0.1 +0.1 (0.2) +0.4 +0.1 +0.1
General Food (0.7) +0.2 0.0 0.0 +0.3 +0.2 +0.2
Refrigerated (0.3) +0.1 +0.2 (0.7) +0.5 +0.1 +0.1
Beauty (0.1) +1.5 (0.3) (0.1) (0.6) +0.2 (0.6)
General
Merchandise +0.2 +0.1 (0.6) +0.3 +0.2 +0.2 +0.2
Health (0.1) +1.0 (0.8) (0.2) 0.0 +0.2 +0.1
Home Care (0.3) +0.4 (0.6) (0.2) +0.2 +0.5 +0.1
-
11 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 11 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
The battle for share of spending across key meals, meal ingredients and meal
components is fierce, and significant shifts are occurring across CPG channels.
Dollar Share Point Change
Key Meals, Meal Ingredients & Components
Change 2012 vs 2011
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Grocery
Mass
Merchandise Supercenter Club Dollar Specialty
Flour/Meal (2.3) +0.3 +0.5 +0.5 +0.2 +0.9
Baking Mixes (0.6) +0.2 +0.7 (0.3) +0.1 +0.2
Pasta +0.7 +0.1 (0.8) (0.2) 0.0 +0.4
Soup (1.1) +0.1 +0.2 +0.2 +0.2 +0.5
Shelf Stable
Dinners +0.5 (0.1) 0.0 0.0 +0.2 0.0
Dry Packaged
Dinners (1.1) +0.1 +0.3 0.0 +0.2 +0.7
Butter +1.8 0.0 (1.2) (0.6) 0.0 0.0
Rfg Entrees (3.3) +0.7 +0.1 +2.1 0.0 (0.1)
Fz Plain
Vegetables (0.5) +0.4 (0.1) (0.1) +0.1 +0.1
Fz/Rfg Poultry +0.4 +0.2 (1.8) +1.0 +0.1 +0.2
-
12 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 12 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Share of healthcare spending is shifting at the category level, with drug, dollar and
club each winning share across several of the 10 largest healthcare categories.
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Key Healthcare Categories: Dollar Share Point Change
2012 vs 2011
Grocery Drug Mass Supercenter Club Dollar
First Aid Accessories (0.6) +3.0 (0.7) (0.1) (1.0) +0.5
First Aid Treatment (0.4) +1.6 (0.7) (0.1) (0.4) +0.2
Cold/Allergy/Sinus
Tablets (0.2) (0.6) (0.5) +0.2 +1.5 (0.1)
Gastrointestinal
Liquids +0.6 (2.2) (0.2) (0.3) +2.3 (0.2)
Gastrointestinal
Tablets (1.2) +0.3 (0.4) (0.8) +1.7 +0.2
Internal Analgesics (0.6) +2.3 (0.5) (0.5) (0.9) +0.4
Nasal Products (0.1) (1.7) (0.6) +1.0 +1.8 (0.2)
Vitamins +0.1 +1.9 (0.6) (0.8) 0.0 0.0
Weight Cntrl/Nutrition
Liq/Pwd +0.2 0.0 (1.2) (0.1) +1.5 +0.1
Home Health Care Kits +1.8 (2.1) (0.5) +1.1 +0.3 n/a
-
13 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 13 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
The dollar channel posted dollar sales share growth across the 10 largest
beauty/personal care categories while other channels posted mixed results.
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Key Beauty/Personal Care Categories: Dollar Share Point Change
2012 vs 2011
Grocery Drug
Mass
Merchandise Supercenter Club Dollar Specialty
Hair Conditioner +1.3 +1.1 0.0 (0.5) (0.2) +0.2 (1.7)
Shampoo +1.0 +1.0 (0.3) (0.5) (0.4) +0.1 (0.6)
Deodorant 0.0 +1.5 (0.4) (1.0) (0.8) +0.4 +0.4
Soap (0.1) (0.2) (0.4) +0.2 (0.1) +0.5 +0.1
Blades (0.2) +5.3 (0.7) (1.7) (2.5) +0.1 (0.3)
Skin Care +0.2 (0.6) (0.3) +1.2 (0.9) 0.0 +0.6
Diapers (0.3) +0.9 (0.3) +0.4 (2.5) +0.1 +2.0
Sanitary
Napkins/Tampons +0.1 +0.7 (0.1) (0.7) (0.2) +0.2 +0.1
Toothbrush/Dental
Accessories (1.1) +4.2 (1.0) (0.1) (1.7) +0.2 (0.7)
Toothpaste (0.2) +0.9 (0.3) (0.5) (0.4) +0.3 +0.2
-
14 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 14 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
The battle for share of alcoholic beverage sales is heating up across non-traditional
alcoholic beverage channels, evidenced by sizable share changes across channels
during the past year.
Key Alcoholic Beverage Categories: Dollar Share Point Change
2012 vs 2011
Grocery Drug
Mass
Merchandise Supercenter Club Specialty
Beer (1.8) +0.3 +0.1 +0.7 +0.1 +0.6
Premixed
Cocktails/Coolers +3.8 (0.2) +0.8 +3.1 +0.9 (8.0)
Spirits (0.2) +0.7 +0.1 +0.3 (0.7) (0.3)
Wine (0.6) +0.1 (0.2) +0.5 (0.2) +0.4
Non-Alcoholic
Mixers +0.8 +0.8 (0.9) +1.1 (0.8) (0.6)
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 7/8/2012
-
15 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 15 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Channel behavior across key consumer segments is mixed, with drug, club and dollar
channels posting widespread gains, while grocery, mass merchandisers and
convenience are showing flat to negative share growth trends.
Dollar Share Point Change by Consumer Segment
2012 vs 2011
Source: SymphonyIRI Consumer Network Consumer & Shopper Insights Advantage (SIA), 52 weeks ending 4/15/2012
Grocery Drug
Mass
Merchandise Supercenter Club Dollar Convenience
Under $35K (0.1) +0.2 (0.3) +0.2 0.0 +0.3 (0.1)
$35-$70K +0.1 +0.2 (0.2) (0.3) 0.2 +0.1 0.0
$70-$100K (0.1) +0.2 (0.2) (0.6) +0.8 +0.1 (0.1)
Over $100K (0.9) +0.5 0.0 0.0 +0.4 +0.1 (0.1)
Hispanic (0.7) +0.5 0.0 (0.5) +1.1 +0.2 (0.2)
Households with
Children (0.2) +0.6 (0.1) (0.6) +0.2 +0.1 (0.1)
Boomers (0.4) 0.0 (0.2) +0.2 +0.4 +0.1 (0.1)
-
16 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 16 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Consumers use the internet for many shopping-related activities, and to buy a wide
range of CPG products.
8%
8%
13%
15%
20%
23%
30%
33%
35%
39%
I use social media sources (e.g., Twitter, Facebook) to research
I research products on blogs
I look for updates from retailers/manufacturers via email/text
I use social media sources (e.g. Twitter, Facebook) to get coupons
I visit online deal sites (e.g.,Woot.com, Groupon)
I research products on websites
I download coupons from couponing sites (e.g., SmartSource)
I download coupons from retailer websites
I download coupons from manufacturer websites
I download recipes off websites and other online sources
Digital Media Usage
% of Shoppers- Top 2 Box Responses
Source: SymphonyIRI MarketPulse, June 2012
13%
31%
32%
33%
33%
37%
37%
38%
40%
49%
49%
55%
Baby supplies
Beverages
Cleaning supplies
Medications
Pet supplies
Music
Toys
Other household items
Food
Personal care
Electronics
Books
What People Are Buying Online
% of Shoppers Who Bought the Product- Among Those Who
Have Shopped Online in the Past 6 Months
Source: Etailing Solutions, survey of 1,098 consumers
-
17 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 17 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Identify new growth opportunities
and risks through ongoing
category and brand channel
migration tracking
Align distribution, marketing and
merchandising strategies with
channel migration patterns
Protect and grow share among
top shoppers
Conclusions: Manufacturers
Closely monitor shifts in trip mix and
at the account level
Constantly evaluate the evolving
competitive set at the channel and
retailer level, including traditional
brick and mortar and online retailers,
to understand channel share shifts
across key categories and brands
Invest to understand hidden potential
among shoppers by analyzing based
upon their habits, purchase response
and history with your own and
competing brands
Work closely with retailers that have
similar best shopper profiles to your
own
Align distribution strategies against
preferred trip types, channel
preferences and store locations of
your most important shoppers
Continue to enhance merchandising
and promotional strategies across
old and new media platforms to
ensure your value proposition is
beginning to impact the shopper in
the home, and is consistent
throughout the purchase process
Drive satisfaction, trips and basket
size with specially-targeted
promotional programs that entice and
reward top shopper segments
Work to secure optimal shelf space
and placement by demonstrating
category/brand value in basket
building
-
18 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary. 18 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Conclusions: Retailers
Identify new growth opportunities
and risks through ongoing
category and brand channel
migration tracking
Align distribution, marketing and
merchandising strategies with
channel migration patterns
Protect and grow share among
top shoppers
Track shifts in trip mix at the market
level and across key shopper
segments
Constantly evaluate the evolving
competitive set at the market level,
including traditional brick and mortar
and online retailers to understand
channel share shifts across key
categories and brands, as well as
existing and emerging product
assortment strategies
Establish profiles of existing best
customers by creating discrete
behavioral segments based upon
their habits, purchase response and
history with competitors
Work closely with manufacturers that
have similar best shopper profiles
to your own
Ensure assortment and merchandise
strategies cater to your most
important shoppers preferred trip
missions and store locations
Continue to enhance merchandising
and promotional strategies across
old and new media platforms to
ensure your value proposition is
beginning to impact the shopper in
the home, and is consistent
throughout the purchase process
Drive satisfaction, trips and basket
size with specially-targeted
promotional programs that entice and
reward top shopper segments
Maintain a deep understanding of
emerging shopping patterns and
competitive threats among key
shopper and target segments