The Way of Shopper Marketing Classified - Internal use
How PITA Drives Retailer Growth Potential: A Publix Beverage Opportunity
Jack Conter - Director, Tools & Capabilities,
Category Management
Driving Retailer Growth Potential with
PITA
Prepared by: Jack ConterJuly 12, 2013
(Publix Beverage Opportunity Example)
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How can we help Retailers influence shopper behavior in store and capture growth potential?
Focusing on foundational shopper behavior: • Metrics
• Drivers
• Influencers
“It all begins with the Shopper”
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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?
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Understanding the growth potential at Publix begins with foundational shopper behavior
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Foundational shopper behavior can be measured with PITA
Projected household
Shoppers in a Retailer’s stores
% of Retailer’s Shoppers who purchased the
measured item in the latest 52
weeks?
How frequently did the Retailer’s
shoppers purchase the measured item
in the latest 52 weeks
How much was the average measured item purchase by
the Retailer’s shoppers in the latest 52 weeks
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Nielsen Homescan provides the source for PITA foundational shopper metrics
Nielsen National Account Shopper Template
Nielsen National Account Shopper TemplateFact Definitions
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Let’s use PITA to understand the Publix current situation for total measured sales
119,281 100.0% 158.7
MEASUREMENT Total Store All
UPC Coded Products
$39.15
85,359 100.0% 20.8 $55.12
21,839 100.0% 30.5 $41.00
Total Outlets
13,471 100.0% 23.2 $36.54
12,763 100.0% 33.9 $39.66
Source: Nielsen Homescan 52 weeks ending Q1, 2013
Publix delivers the highest Total Store transactions that are enhanced with trip dollars on par with the national competitive set
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What is the Publix current situation for the Beverage Category?
119,281 99.7% 46.6
MEASUREMENT Total Beverages
$8.09
85,359 75.8% 10.6 $7.48
21,839 90.3% 17.6 $9.07
Total Outlets
13,471 82.8% 13.6 $9.41
12,763 89.0% 18.8 $8.45
Source: Nielsen Homescan 52 weeks ending Q1, 2013
Publix still drives the highest Total Beverage transactions mixed with trip dollars that are close to par with the national competitive set
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What is the Total Carbonated Soft Drinks (SSD) current situation at Publix?
119,281 94.3% 21.5
MEASUREMENT Total Carbonated
Soft Dinks SSD
$6.47
85,359 53.0% 7.0 $5.81
21,839 75.7% 10.4 $7.61
Total Outlets
13,471 63.3% 7.7 $7.66
12,763 69.9% 8.9 $6.55
Source: Nielsen Homescan 52 weeks ending Q1, 2013
A SSD opportunity for Publix emerges with Trip Frequency and Transaction size versus the national competitive set
What is the math behind PITA?Publix Total US - SSD Category Example
Source: Nielsen Homescan 52 weeks ending Q1, 2013
12,763
8,923 / 12,763 = 69.9%
12,081 Buy Carbonated Soft Dinks SSD somewhere682 Do not buy Carbonated Soft Dinks SSD
8,923 Buy Carbonated Soft Dinks SSD at Publix
3,158 Buy Carbonated Soft Dinks SSD, but not at Publix
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Publix Total US - SSD Category Example
Source: Nielsen Homescan 52 weeks ending Q1, 2013
406,406
79,246 / 8,923 = 8.9
# of Trips where Carbonated Soft Dinks SSD were purchased
Total # of Publix Trips by Carbonated Soft Dinks SSD Buyers (000’s)
327,160
79,246
# of Trips where Carbonated Soft Dinks SSD were not purchased
8,923 # of Households buying Carbonated Soft Dinks SSD at Publix
$518,598
$518,598 / 79,246 = $6.55
What is the math behind PITA?
Total Dollars paid for Carbonated Soft Dinks SSD at Publix ($000’s)
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What are the drivers we can use to influence these foundational PITA shopper metrics?
Buyer ConversionItem Buyers / Retail Shoppers = Buyer Conversion
Item Buyers:Of those 30 shoppers,
20 actually buy the measured item in the
Retailer
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
A Shopper only has to buy the category once in a year to be considered converted!
Buyer Conversion:The 67% of shoppers who buy
the measured item in the Retailer are known as Buyer
Conversion (20/30= 67%)
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Trip ConversionItem Trips / Retail Trips = Trip Conversion
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
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%)
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Buying Rate (Item $ per Item Buyer)Total Outlets - Total Beverages example
Purchase Frequency:Average number of shopping trips (purchase occasions) on which the measured item was
purchased in the Retailer (46.7)
Buying Rate:Annual measured item $
spent per Household.(46.7 x $8.09 = $377.60)
Purchase Size:Average measured item
$ per Shopping Trip in the Retailer
($8.09)
X $8.09 =
Source: Nielsen Homescan17
What are the drivers to influence a Retailer’s PITAPublix Total US - SSD Category Example
Buyer ConversionWhat % of SSD
Shoppers buy the SSD Category at Publix
73.9%
Item BuyersHow many SSD Category Shoppers buy at Publix
(000’s)8,923
Retailer ShoppersHow many SSD
Category Shoppers buy anywhere (000’s)
12,081
÷
Trip ConversionWhat % of Publix Trips
include the SSD Category
19.5%
Item TripsHow many Publix trips
included the SSD Category purchase (000’s)
79,246
Retailer TripsHow many Publix trips
did SSD Category Buyers make (000’s)
406,406
÷
X
Buying RateHow much the Publix Shopper spends on the SSD Category
each year$58.14
Purchase FrequencyHow often they buy the SSD Category in Publix
8.9
Purchase SizeHow much they spend
each Publix trip they buy the SSD Category
$6.55Source: Nielsen Homescan 52 weeks ending Q1, 2013 18
Shopper Behavior InfluencersBOGOS, Advertising, Bonus Packs,
Bundling, IC Coolers, Coupons, Displays, Messaging, Point of
Influence, POS, Promotions, Weekly Circulars, TPR’s, and special coupon
offers
Shopping behavior influencers are the driving levers
12,763 69.9% 8.9SSD Category $6.55Buyer Conversion
What % of SSD Shoppers buy the SSD
Category at Publix73.9%
Buying RateHow much the Publix
Shopper spends on the SSD Category each year
$58.14
Source: Nielsen Homescan 52 weeks ending Q1, 2013
Publix Total US - SSD Example
Trip ConversionWhat % of Publix Trips
include the SSD Category
19.5%
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The Way of Shopper Marketing Classified - Internal use
THANK YOUFor additional information please visit the Shopper/Customer Marketing
Community at www.KOSCMarketing.com
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