Клиентская конференция TNS 2013

1. TNS Retail & Shopper
Our Latest Thinking and Solutions
Retail & Shopper
© TNS 2013

2. We drive brand and category growth by answering the
question “How can I get shoppers to spend more?”
New markets
Morecustomers
3
4Happy shopper
Retail & Shopper
© TNS 2013
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Morecustomers
More money from each customer
Loyalty &
new spend
1
New products
& services
2
New
customer
Today’s
business

3. Sounds simple…
but why do we struggle to drive growth?
Retail & Shopper
© TNS 2013
but why do we struggle to drive growth?
3

4. Many manufacturers fail to drive growth as they don’t
think about shoppers
Brand
focus
Retailer
stories
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5. “Shopper myths” make the problem worse
02
Disrupting
shoppers will
improve
engagement
03
70% of decisions
are made at shelf
01
Holding shoppers
for longer at the
shelf will increase
purchasing
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engagementpurchasing

6. The result…
Shopping is a story of missed opportunities
30%
of shoppers walk away without buying, despite having browsed the shelf
Retail & Shopper
© TNS 2013
of shoppers walk away without buying, despite having browsed the shelf
20%
of planned items don’t make it into the basket
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7. TNS Shopper Insights
drawn from 30 years
We know this because we understand how shoppers
really behave
Retail & Shopper
© TNS 2013
drawn from 30 years
observing shoppers…

8. The good news…
TNS can help you to understand the shopper
and produce ‘Happy Shoppers’
Retail & Shopper
© TNS 2013
and produce ‘Happy Shoppers’
8

9. To understand shopper behaviour we have to
understand the shopping trip
Shopping Trip:
A unique shopper on a specific
mission in a chosen channel
Shopping trip:
A unique shopper on a specific
mission in a chosen channelShopping trip
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10. The trip consists of category purchases made for
specific needs or occasions in the context of that trip
Shopping trip
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Category C
Need/ occasion
Category B
Need/ occasion
Category A
Need/ occasion

11. Each category purchase has its own purchase process,
that will be different for each shopper and occasion
Planning
Learning effect
Searching
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Buying Selecting

12. Combining the trip, category occasion and purchase
process builds a complete picture of shopper behaviour
Shopping trip
Category CCategory BCategory A
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Category C
Need/ occasion
Category B
Need/ occasion
Category A
Need/ occasion

13. TNS shopper principles are the
foundation of our approach and allow us
to apply our shopper understanding
Retail & Shopper
© TNS 2013
to apply our shopper understanding
13

14. TNS’s 3 principles that are fundamental to winning with
shoppers
Shopping mission
and consumer usage
Shoppers are either
‘Decided’ or ‘Open’
Make it faster and
easier for shoppers to
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and consumer usage
occasion
Drives shopper
behaviour and
product choice
‘Decided’ or ‘Open’
Determines how they
interact with the shelf
easier for shoppers to
find the products
they want
Increases shopper
spending

15. Shopping mission
and consumer usage
Shoppers are either
‘Decided’ or ‘Open’
Make it faster and
easier for shoppers to
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and consumer usage
occasion
Drives shopper
behaviour and
product choice
‘Decided’ or ‘Open’
Determines their task
at shelf
easier for shoppers to
find the products
they want
Increases shopper
spending

16. Shopping behaviour, needs and priorities vary
depending on type and size of trip
Stock up shop Quick stop for 1-2 itemsTop up shop
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17. Whatever shoppers buy, they have some idea about
the intended occasion for that product
Weekend brunch
Family mealHappy shopper
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Semi-finals on TV
Dan’s BBQ

18. Shopping mission
Type of store visited
Time spend in-store
Usage occasion
Product choice
Brand
Format
Mission and usage occasion drive shopper behaviour
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Time spend in-store
Planning levels
Route around store
Categories shopped
Number of items purchased
Price sensitivity
Format
Pack size
Price

19. Cutting Edge Connectors
Engaged & Informed
Frugal Families
Time Stressed Families
Routine Robots
Shopper typology is less important in driving shopper
behaviour
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Focused & Methodical
It's About Me
Life is Good
TOTAL Grab and drink Meal times Sports and
refreshment
Socialising Relaxing
SOURCE: TNS Shopper Dimensions study
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20. The key to unlocking
growth…
… Activations that link
Retail & Shopper
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… Activations that link
missions to occasions
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21. Successful activation linking mission to occasion
Manufacturer of ketchup
the basic three package
Mission
Weekly shop
shopping for a particular meal
or event.
Occasion
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L
E
the basic three package
styles had remained the
same
Explore new opportunities
by understanding the
category shopping
landscape
Occasion
key occasions not catered for
Single-serve 24-pack
Limited edition multi-packs with
smaller bottles targeted major
sports teams and sporting events

22. Shopping mission
and consumer usage
Shoppers are either
‘Decided’ or ‘Open’
Make it faster and
easier for shoppers to
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and consumer usage
occasion
Drives shopper
behaviour and
product choice
‘Decided’ or ‘Open’
Determines their task
at shelf
easier for shoppers to
find the products
they want
Increases shopper
spending

23. Shoppers arrive at shelf with different tasks. Activation
success depends on making a distinction between them
Decided Open
Retail & Shopper
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…know what product they will buy …make decision at shelf
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24. Most shoppers have already decided what to buy
69% buy same brand as last time
45%
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45% buy same SKU
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Source: Kantar Worldpanel large trips

25. 81
78
76
73
67
65
70
69
Mayonnaise
Sauce
Personal wash
Spreads
Beer
Deodorants
Culinary
Paper Products
Decided shoppers are in the majority irrespective
of category
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69
69
67
66
66
66
65
60
Paper Products
Cheese
Hair care
Salty Snacks
Yoghurt
Confectionery
Skin care
Ice cream
SOURCE: TNS Decision Tree data 2011-2013
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26. Decided and open shoppers behave very
differently at shelf
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27. 124
Decided shoppers like to find what they want and get
in and out of the category quickly
Personal care Confectionery Beer
Total interaction time (secs)
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77
124
37
53
22
40
27
Decided Open

28. 7 328
14
Personal care
Open shoppers are more likely to buy new products
and be influenced in-store
Purchased new product (%)
Personal care Confectionery Beer
Claimed influences
on choice
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30
20
12
11
6
8
7 32
3 15
8
57
2
11
Decided Open
Decided Open
28
Out of store
Word of mouth
Price or promo
In-store POS
Display or pack

29. Looking at shopper averages is misleading and will
hinder rather than help us to influence shoppers
We know that shoppers approach
the shelf with different tasks
Different tasks at shelf lead to 60
Retail & Shopper
© TNS 2013
Different tasks at shelf lead to
different behaviours
Looking at averages simply
distorts reality
60
42
10
Decided Total Open
29

30. Better decisions are made when focusing on the
Open vs. Decided
Selection
Total
28
Why?A
Pack test example
Open
40
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28
Why?
Open say it is:
Higher quality
More feminine
Up-to-dateB
A
30
40
29

31. Shopping mission
and consumer usage
Shoppers are either
‘Decided’ or ‘Open’
Make it faster and
easier for shoppers to
Retail & Shopper
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and consumer usage
occasion
Drives shopper
behaviour and
product choice
‘Decided’ or ‘Open’
Determines their task
at shelf
easier for shoppers to
find the products
they want
Increases shopper
spending

32. Searching is a negative experience as it mainly
involves rejection
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Positive emotions are experienced only when relevant products are found

33. Shoppers spend most of their time in store searching
90%
Of time spent navigating
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10%
Of time spent in active selection/shopping
33

34. The longer a shopper spends looking for a product the
more likely they are to leave empty-handedBuytime
Slow
Faster buy time = more shoppers buy
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% Conversion to purchase
Buy
Fast
Low High
Source: TNS PathTracking studies in supermarkets around the world

35. The quicker a shopper selects a product the more likely
they are to buy another from the same category
No.ofitemspurchased
4
5
3
Faster buy time = more products bought
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0-10
seconds
11-20
seconds
21-30
seconds
31-60
seconds
60-120
seconds
120
seconds
+
35
Time taken to select first product
No.ofitemspurchased
1
2
Source: TNS PathTracking studies in supermarkets around the world

36. 141
There is a direct correlation between shopper spending
speed and basket size
Faster buy time = greater spend per shopper
minute(RUB)
120
160
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17
48,5
73
85,5
Average <800 800-1300 1300-
1800
1800-
2500
2500+
36
Spendperminute(RUB)
Basket size (RUB)
Source: TNS PathTracking studies in supermarkets around the world
0
40
80

37. Reducing search
time will increase
30%
of shoppers walk away without buying,
despite having browsed the shelf
Retail & Shopper
© TNS 2013
time will increase
sales
20%
of planned items don’t make it into the basket
37

38. Manufacturer of salty
snacks
Successful activation helping reduce search time and
encourage faster shopping
New shelf structure based on the
shopper’s search hierarchy
Snack format
Product type
Retail & Shopper
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Goal of increasing overall
category sales by at least
3%
Convenience channel
38
Product type
Brand
More impactful pack messages
More impactful POSM

39. TNS has industry-leading solutions to
help you through the shopper research
journey from planning to testing
Retail & Shopper
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journey from planning to testing
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40. We have solutions to inform planning
Key solutions
Missions & occasions
Unmet needs
Touchpoint planning
Category & channel growth
Category & channel growth
Category & brand growth
Planning Business issue
Shopper Dimensions
Shopper Matrix
Purchase Decision Journey
01
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Touchpoint planningCategory & brand growth Purchase Decision Journey

41. We have solutions to inform activation
Store layout
Plan-o-gram
Optimise store
Optimise category
Optimise category
Activation
Store Activator
Shopper Decisions Activator
Business issue02 Key solutions
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Plan-o-gram
Assortment
Location & secondary sites
Shopper marketing
POSM & pack
Messaging
Price & promotions
Optimise category
Optimise category
Optimise category
Optimise brand at shelf
Optimise brand at shelf
Optimise brand at shelf
Shopper Decisions Activator
Assortment Activator
Store Activator
Triggers & Barriers Activator
POSM Activator
Shopper Decisions Activator
Price & Pack Activator

42. We have solutions for testing
Plan-o-gram
POSM
Testing
Category & brand
Category & brand
Shelf Tester
POSM Tester
03 Business issue Key solutions
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PackBrand Pack Tester

43. Our solutions use a range of observational and
traditional research methods
On-line interviews
Face to face
interviews
In-store observation
Intercept interviews
Eye-tracking
Virtual reality
Mock shelves
01 02 03Planning Activation Testing
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interviews
Visual psychology
Eye-tracking
Shopnography &
accompanied shops
Discrete Choice Modelling

44. As part of the WPP group we provide the insights which
form part of the total shopper marketing cycle
Retail & Shopper
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45. For more details about our solution…
Please visit our website
http://www.tnsglobal.com/what-we-do/retail-shopper
Happy shopper
Retail & Shopper
© TNS 2013
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46. Retail & Shopper
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47. Appendix:
TNS Shopper Solutions
Retail & Shopper
© TNS 2013
TNS Shopper Solutions

48. Planning solutions
Solution and key measures Main purpose
Identifies the best opportunities for brand and
category growth in each channel by targeting shopper
missions, category usage occasions, and shopper types
Shopper missions, category usage occasions & shopper
types by brand & retailer (6Ws)
Shopper Dimensions
Shopper Matrix
Category growth; channel & customer strategy
Category growth; channel & customer strategy
01
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Identifies the touchpoints and the relevant messages
along the shopper journey that can be used to
influence category involvement and brand choice
Maps the most common steps from trigger to purchase
along the shopper journey and highlights key points of
influence
Purchase Decision Journey
Identifies shopper needs and how well
each retailer meets these needs. Pinpoints
opportunities for development that may
be exploited
6Ws
Shopper needs & retailer performance
Shopper Matrix Category growth; channel & customer strategy
Touchpoint planning

49. Shopper Dimensions: Uses shopper missions
and consumption occasions to help clients
build channel growth strategies
Shopper Dimensions is designed to help clients
develop channel strategies that place the right
products on the right shelves.
It quantifies the imperative questions of who is
shopping the category, what they are buying, when
they buy, where they shop, how they research and
01
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they buy, where they shop, how they research and
plan for the category purchased, and -- most
importantly -- why they buy what they do on that trip.
With its focus on shopping missions and consumption
occasions, Shopper Dimensions identifies the strategies
critical to driving growth in each channel.
On-line (or F2F) interview, based upon most recent
purchase made.

50. Purchase Decision Journey: Identifies most
influential touchpoints along the path to
purchase, and most relevant messages
Identifies the most common purchase experiences from
trigger to purchase, highlighting key opportunities or
points of influence that can be exploited.
Purchase Decision Journey quantifies the various triggers to
purchase, and the different steps taken between the trigger
01
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and a store visit and finally a purchase. The approach is
used to identify the touchpoints that are driving, or have the
greatest potential to drive category involvement and brand
choice. Predictive modelling identifies when, where and how
to engage consumers with relevant messages and
experiences delivered at the right time in the right place.
Two stage on-line qualitative and quantitative

51. Portfolio management solutions
Solution and key measures Main purpose
Calculates the share impact of introducing or
removing variants on an existing portfolio for
any customer. Optimises price to maximise
share, revenue, or profit. Identifies combination
of features that will optimise demand.
Shopper trade-offs. Simulator for what-if scenarios;
relative importance impact of features;
sensitivity/elasticity of price and features; share and
volume analysis.
Assortment Activator; Price & Pack Activator Assortment optimisation
02
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of features that will optimise demand.
Tests shopper response to new items in virtual
retail environments. Predicts likely success or
failure, and identifies potential enhancements to
retail execution.
Simulated shopping using 3d virtual reality. Assesses
noticeability and stand out, as well as purchase rate.
Bespoke Studies Retail activation of new items

52. Sales and marketing solutions
Solution and key measures Main purpose
Drives category growth by improving ease of
shopping to increase conversion. Drives brand
growth by identifying most relevant in-store
communication.
Improves brand performance at shelf by
targeting real shopper behaviour in-store to
Category conversion and at shelf behaviour.
Category purchase decision process: Plan;
Search; Select; Buy
Shopper visual activity
Shelf hot spots
Shopper Decisions Activator
POSM Activator
Plan-o-gram; messaging
POS optimisation; brand at shelf
02
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targeting real shopper behaviour in-store to
maximise cut through
Shelf hot spots
Pack and POS stand out
Optimises store layout, category adjacencies and
locations for secondary sites by making most
efficient use of shoppers’ paths in-store
Shopper traffic & flow
Category 1st and 2nd conversion
Dwell times
Category affinities
Store Activator
Identifies and sizes the in-store Triggers & Barriers to
purchasing the category so that in-store actions can
be prioritised with retail customers
Shopper Barriers to Purchase
Shopper Triggers to Purchase
Triggers & Barriers Activator
Store Layout, category locations
Shopper marketing

53. Shopper Decisions Activator: Increases sales by
improving ease of shopping and ability to influence
shoppers
02
Drives category growth by creating a shelf layout to facilitate
shopping and generates brand growth by developing in-store
communication to better influence shoppers
Shopper Decisions Activator provides enhanced understanding of
the category purchase decision by de-constructing the purchase process
and understanding each stage:
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and understanding each stage:
￭ Plan: pre-determined characteristics
￭ Search: de-selection process
￭ Select: choice drivers
￭ Buy: product purchased
Method: In-store observations and intercept interviews

54. Triggers & Barriers Activator: Identifies specific actions
brands and retailers can take in store to increase
category conversion
02
Helps clients identify and prioritize specific measures that
can be taken in-store to improve category conversion.
Highlights manufacturer and retailer actions and facilitates
collaboration between the two.
Triggers & Barriers Activator is specially designed to help shoppers
articulate hard-to-explain issues that slow category conversion.
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articulate hard-to-explain issues that slow category conversion.
By taking the in-store shopping process step-by-step and grouping
respondents in a meaningful way, we obtain specific and actionable
results. Working together to address growth opportunities linked to
Barriers and Triggers can be a non-confrontational way for
manufacturers and retailers to connect.
Method: Two stage process of accompanied shops followed by on-
line interviews

55. Testing and in-market performance solutions
Solution and key measures Main purpose
Tests shopper response to new initiatives in
virtual retail environments. Predicts likely
success or failure, and identifies potential
enhancements to retail execution.
Simulated shopping using 3d virtual reality.
Assesses noticeability and stand out, as well as
purchase rate.
Pack Test, POS test, shelf test
03
Pack Tester; POSM Tester; Shelf Tester
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Identifies strengths and weaknesses and
opportunities to improve conversion at each
stage of the path to purchase. Before and after
tracking enables assessment of effectiveness of
any shopper initiative.
Bespoke Studies
enhancements to retail execution.
Measure effectiveness of in-store initiatives
Observation of shopper behaviour in-store –
number of visitors to shelf, shoppers who engage
with category, and purchasers. Data collected by
automated filming (or manual observation).

56. Tester solutions: Testing category
and brand growth initiatives
Optimises packaging, POS and shelf layout by pre-testing new
initiatives in a virtual retail environment
Respondents complete a simulated ‘shop’ on their own home
computers.
Product is presented in a realistic 3D retail environment where it must
03
Retail & Shopper
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Product is presented in a realistic 3D retail environment where it must
battle for attention.
Respondents can pick up, zoom in and examine all sides of the 3D
product.
Shopping behaviour is integrated with post-shop questionnaire to
assess performance against both retail and communications
objectives
Primary approach: 3D online virtual reality shopping.

57. In many parts of the world Traditional Trade is the
dominant channel for FMCG
Mom ‘n
Pop
no-entry
Self-
service
Mini-
marts
Stores
Mobile
stores,
push-
carts
Wet
markets
Street
vendors,
make-
shift
Mom ‘n
Pop
entry
Specialty
stores
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martscartsshift
stores
Closest to modern trade autonomy,
assortment and experience
Non-stores

58. There are different forces at play in any Traditional
Trade store
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Structural
Spatial and operational
influences on shopping
Cultural
Shared assumptions
and beliefs about
shopping in a type
of store
Psychological
What shoppers do, think
and feel in a particular
type of store

59. Process: Positively impacting
retailer relationship by
targeting their needs
People: Engagement between
Place: Suitability and efficiency
of current RtM strategy
Product: Suitability of current
assortment mix to TT
shopping environment
Price: Suitability of current
There are 3 types of business issues in crafting
the Traditional Trade strategy: We work in all 3
Retailer-oriented =
trade servicing policies
Shopper-oriented =
the offer
Distribution
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People: Engagement between
sales force and retailers
Price: Suitability of current
pricing structure to TT
missions and buying
patterns
Promotion: Suitability
of in-store initiatives and
tactics to win against local
brands
59