The latest update on 10 years’ experience with demand-side implementation, with special emphasis on shopper value, category growth, POS data management and excellence in execution through the power of collaboration at the store level. Four case studies take a fresh look at product development and introduction, efficient promotion, assortment and merchandising.
ECR Europe Forum '05. Shopper. Case Study Champion L Oreal
1. A distinctive, strategic approach to provide consumers
with comfort and satisfaction:
Deployment of a new Health &
Beauty concept in three store formats
&
Catherine Sébastien
de Saint Louvent Debelle
1
2. A longstanding partnership on many Health & Beauty fronts…
Store concepts
Beauty
events
Targeted marketing/
building loyalty Marketing by product
category: cosmetics,
hair coloring etc.
2
3. …involving store personnel…
Stores participate in all
decisions
A Champion store concept
guide, Director, based in-
store
3
4. …head office teams, independent of the commercial relationship…
Champion: marketing expertise
General management Marketing categories
L’Oréal Consumer Products Division: HB expertise, a cross-cutting,
independent set-up from group companies
Sales Div.
Category Company Marketing Div.
management
General management Market
Market Company Research Dept.
Research Dept.
Sales strategic Company
policy
4
5. …and general management.
Every six months: joint meeting of our executive boards
Systematic support to keep projects moving forward.
Chief Executive Officer Chief Executive Officer
THIERRY GARNIER ALEXANDRE POPOFF
5
6. A partnership that starts with a practical action plan
Champion's Health & Beauty market share has growth potential.
It is lower than the Consumer Products market share.
CP market HB market Performance
share 2003 share 2003 index 2003
Champion 7.8% 6.6% 85
Competitor SM 1 7.9% 7.1% 90
Competitor SM 2 11.5% 10.8% 94
Competitor HM 3 17.4% 19.5% 112
Source: Sécodip survey CAM P13 2003 6
7. A partnership that starts with a practical action plan
HB department can be made more attractive and inviting.
3 Growth avenues identified:
PROMOTION
Spotlighting and visibility need to be optimized
INNOVATIONS ADVICE
Underemphasized, not pushed enough A necessity for technical product categories
One essential requirement : REALISM
7
8. Consumers' path through the department: two distinct patterns…
Personal hygiene
Men
Cotton
Men's tissues
products
Dental
Cosmetic removal wipes Feminine
products
Cosmetics hygiene
Beauty, women
Hair Tester Body care
conditioner Haircolor
table
Facial care
Hairdressing
products/
brushes Pleasure path Deodorant
Shampoo Fragrance
Functional path Soap
Family products
Children's
Shower gel
products
Promotion Main Promotion
entrance
A two-stage path: one for the family, one personal. 8
9. …And two types of expectation.
Pleasure Need
Cosmetics
Skin care
Eau de toilette Soap
Hairdressing Deodorant
Hair care Dental products
Hair coloring Cotton products
Men Feminine hygiene
A new typology distinguishing Pleasure purchases (spontaneous,
impulsive) from Need purchases (planned, written on shopping list).
9
10. …And two types of expectation.
Pleasure Need
To generate impulse Soap
buying, located at Deodorant
the point where
Dental products
consumer flows
arrive in the Health Cotton products
& Beauty Feminine hygiene
department
A new typology distinguishing Pleasure purchases (spontaneous,
impulsive) from Need purchases (planned, written on shopping list).
10
11. …And two types of expectation.
Pleasure Need
To generate impulse To generate traffic,
buying, located at located after Pleasure
the point where categories
consumer flows
arrive in the Health
& Beauty
department
A new typology distinguishing Pleasure purchases (spontaneous,
impulsive) from Need purchases (planned, written on shopping list).
11
12. Transposition at point of sale (example in a hypermarket)
DIRECTION
OF TRAFFIC
Pleasure
CATEGORIES
Need
CATEGORIES
12
13. A system that works: Pleasure categories perform superbly
Example: sales in terms of value in HM store test versus Champion
France sales July 2003-October 2004
70%
60%
50%
40%
30%
Test France
20%
10%
0%
/
O AR IAL
ST VER
ER
TS
S
R P
G
G
P
TS
N
T
O
VE -U
IN
C ND E
IN
N
C
U
C C
N
O
R
PO
O
E O
U
O KE
FA
C
YL
R
A
E
TI
EY WE
EM
D
R I
U
LO
K
R
A IT
M
LO
EM A
O
D
A
O
O
A
R EM
R
PR
O
O
M
D
SH
H
PR
C
P
EO
/S
U
E
IR
C
H
E-
R
D
G
A
AT
IR
U
IN
K
H
IC
A
A
B
AV
H
M
N
A
SH
M
13
14. A single, adaptable concept for three formats
Hypermarket : > 2,500 sq.m
Total 53 / Restructured : 20
Urban Center SM : < 1,200 sq.m
Total : 5 / Restructured : 3
Champion: Supermarket : < 2,500 sq.m
1,028 point of sales Total : 970 / Work in progress
14
17. Special focus on the 3 growth avenues
General management
INNOVATION PROMOTIONS ADVICE on flagship
get enhanced visibility spotlighted categories
CHAMPION VANNES
17
18. A floor plan based on what we have learned from consumers
Women Needs
Cosmetics Hair color Deo + EDT + EDC Foot care Feminine hygiene
Direction
of Personal
traffic Face and body hygiene Tissues/cotton
PROMO
PROMO PROMO
Direction
of Hairdressing Accessories Dental care
traffic
Men Shampoo Bath/shower
Family Pleasure
18
19. A concept that attracts shoppers and boosts sales
Test store Benchmark
Average time spent in the area: 2 min 20 sec 1 min 35 sec
Average number of purchases: 1.41 1.26
In the test store, the area generates a higher average number of
purchases and a greater average time spent in the department.
Base test: 203/benchmark: 273 respondents 19
20. …And boosts sales
T/O growth* Qty sold growth*
HB averages in 10 restructured HMs : +12.0% +8.8%
Highest results in HB : +30.1% +19.9%
Average difference between
restructured HB and national HB : + 11 points
*HB comparison: three months following restructuring vs N-1. Data from Champion checkout system. 20
23. Variant of the concept for the City Center format
The “New product”
area moves to upper
gondolas
23
24. Variant of the concept for the City Center format
The inviting character
reproduced through product
category visuals
24
25. …Once again, with a floor plan inspired by consumers
Women
Cosmetics Hair Face & body Deo + EDT + EDC Dental Feminine hygiene
color care
Direction
of
traffic
Personal hygiene
Men Accessories Hairdressing Shampoo Bath/shower Cotton/tissues
Family Pleasur Needs
e
25
27. The Supermarket format: promotion as the engine of growth
Promotion :
Event-based
spotlighting
of
promotions
27
28. The Supermarket format: promotion as the engine of growth
Promotion :
Event-based
spotlighting
of
promotions
Attractiveness :
reuse of visual
from urban
format
28
29. The Supermarket format: promotion as the engine of growth
Promotion :
Event-based
spotlighting
of
promotions
Attractiveness :
reuse of visual
from urban
format
Innovation :
reuse of « new
products » area
from the urban
format
29
30. Conclusion
Key Success Factor :
Deployment orchestrated in and by the point of sale
Consumer surveys/shoppers in the store
Creation of a test store (Champion Bayeux)
Consumer validation/store flows
Champion issues call for tenders for store fixtures
Decision from stores
to adopt the new concept
Order by technical staff 30
31. Conclusion
Steady increase in market share
A rising performance index
CP market HB market Performance
Sh. Sh. index
Champion 2003 7.8% 6.6% 85
Champion 2004 7.8% 6.9% 88
Source: Sécodip survey CAM P13 2003 and CAM P13 2004. 31