The Nielson Company

Value Add Stories
Driving Growth through Market &
Shopper Insights

Infocado Summit 2010
By Yahya Kanj

Driving growth through Market & Shopper Insights

What’s the big fuss…..Why
g y
should I care?
Answer: Understanding the Shopper is
the key to driving Growth


My Goal today….

• How information can be used to make more
effective business decisions?
ff ti b i d i i ?

• Sh
Share with you real lif case studies
ith l life t di

3

Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Fresh Market Wrap

4


Fresh Market Wrap – Key Highlights
• Fresh Produce nominal growth (0.9%) on last year, however we are
starting to see improved performance in the last 13 wks, growing at 3.0%

• QLD star performer driving growth, whilst NSW market receding due to
decline in Fruit sales

• ALDI growing at 8.5% on last year (most through switching from WW and
Non-Supermarkets)

• Vegetable sales out-growing Fruit

• Pre-packed for both F&V continue to grow faster than Loose
p g

• Shoppers buying more volume (paying less), and purchasing less often -
increasing consumption should remain a key focus!
g p y

• Families & Young Adults dampening category growth
5


Thoughts for Consideration
• Am I growing my shipments to QLD? If not, can I do more…

• Am I heavily reliant on NSW market? How can I be more efficient?

• A I engaged with ALDI? If not, why not? Could thi b an
Am d ith t h t? C ld this be
opportunity?

• I Pre-packed an opportunity f me? If so, how?
Is P k d i for ? h ?

• What marketing initiatives am I undertaking to expand F&V
g g
consumption?

• Should I be targeting Families & Young Adults to grow sales for my
g g g g y
product? And if so, how?
6


How i f
H information can b used?
ti be d?

7


How do I use this information?
•Should I ship more volume to
QLD, and less to NSW?

•Is there any opportunity in
NSW which is currently not
being served?

•Am I missing out on my
share of growth in QLD and
QLD,
why?

•Am I driving the QLD
Am
growth? If so, share this
learning with your customers
pp
for further support

8


Total Fresh Produce
•May want to consider pre-
pack options for Fruit &
Vegetables if you’re not
Loose Pre-packed
currently
Share 79.8% Share 20.2%
Value Change -2.3% Value Change +15.6% size pre-
•Introduce a different
pack

•Direct more loose volumes to
Vegetables markets, andFruit
pre-packed to
major supermarkets
j p
Pre-packed Pre-packed
Share 25.7%, Value Change +16.4% Share •ExploreValue Change +13.7%
13.5%, packaging/varietal
options, key messages

9


What is driving how much my consumers buy? - Brand Health - Value
•Apples – Strategy should be
ALL SHOPPERS - AUS - MAT TO 10/07/2010 - BASED ON VALUE ($000'S)/1000

aimed at growing frequency of
purchase. T
h Target existing
t i ti
buyers. Messages around # of
varieties, health benefits, pack
size options convenience
options,
options

•Citrus – Short term focus
1 extra
t
around increasing frequency.
purchase of
Good story with penetration
Citrus = $22.9m
up,
up yet still 10% don’t buy
don t

•Stone Fruits – Definite focus
on getting more people to buy

10


Real Life Case Studies
• Demographic Targeting Example
• Product Focused Example
p

11


Apples Case Study

S.A Opportunity to Drive Growth
- Product & Marketing Strategy

Title of Presentation

Apples sales lagging behind rest of market in S.A

Value % Growth – Total Apples Yearly
ea y Qua te y
Quarterly
14/09/2010 versus year ago

National -4.2% +2.6%

-5.2% -1.7%
S.A
SA

13


What’s driving these sales trends?
g S.A
SA

-5.2% Dollar Sales
5 2%
Shopper Purchase Spend per
Penetration Frequency Occasion

14
320,000 fewer purchase occasions
, p


Pre-packed Apples in S.A missing opportunity –
showing no growth! What’s different to rest of market?
What s

S.A

Loose Pre-packed
Pre packed
Purchase Frequency Purchase Frequency

No change
* Pre-packed in rest of
market is growing strongly
15


Established Couples primarily behind the decline in Apple Sales
in South Australia – Marketing efforts should be concentrated at
re-engaging this audience
Which groups are driving my growth/decline? (Lifestage) - Demographics - Value
SA INC NT - TOTAL APPLES - MAT TO 04/09/2010 - BASED ON VALUE ($000'S)/1000

16


Key Strategic Learning’s
S.A
• Focus on improving Pre-Packed offering to drive sales
– How is the offering different to other states?
– Do we have the right varieties?
– Are we over-priced per unit?
– Is the packaging as good?
– Are we getting fair share of shelf in-store? Front-end visibility

• Primarily target marketing activity to Established Couples
– Understand their motivations & barriers to purchase
– Where to reach them?

• Invest in sales/marketing activity to drive Frequency of purchase?
– Think about consumer loyalty programs, innovative pack types, cross-
promotions, recipe ideas, variety pack, convenience solutions

17


Mushrooms Case Study

Woolworths Category Review
- Range optimisation to drive growth

Title of Presentation

How does Mushrooms compare?

Value Growth – National Aus
Year to June 2009 MAT QTR 4WKS
Total Vegetables Flat Flat +4%

+6% +6% +7%

What consumer
Growth has been consistently
behaviour is
b h i i well ahead of market!
driving this?
19


More people are buying Mushrooms compared to
year ago, however still plenty of opportunity to attract
shoppers
What are the key consumer drivers of sales? - Brand Health - Value
ALL SHOPPERS - AUS - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000

At the same time, Shoppers are spending more (+$1 per buyer)
20


ALDI & Woolworths seeing largest growth in share
of Mushroom sales
What is driving grocery sales? (Account Comparison) - Bigger Picture - Value
ALL SHOPPERS - TOTAL VEGETABLES MUSHROOMS - SHARE OF TRADE ($)

21


ALDI clearly differentiated from others on $ spend per occasion
due to pre-pack range, capturing $1 more per shopper visit
What is driving grocery sales? (Account Comparison) - Bigger Picture - Value
ALL SHOPPERS - TOTAL VEGETABLES MUSHROOMS - $ PER OCCASION

22


Mushroom growth in Woolworths largely reliant
on Established Couples and Bustling Families

AUS WOOLWORTHS/SAFEWAY - TOTAL VEGETABLES MUSHROOMS - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000
($000 S)/1000

23


ALDI continues to very heavily over-trade amongst
Senior Couples, who account for over 20% of their sales
AUS ALDI - TOTAL VEGETABLES MUSHROOMS - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000

24


Despite WW gaining share, WW shoppers still over-spend on
Mushrooms in Coles and ALDI compared to other commodities –
Opportunity for WW to to increase their shopper loyalty to Mushrooms!

Where else do my account shoppers buy? (WW) - Retail Health - Value
WOOLWORTHS SHOPPERS - SHOPPER REPERTOIRE ($) - MAT TO 13/06/2009 - BASED ON VALUE ($000'S)/1000

Total Fresh Produce
Mushrooms

25


In Closing, key messages
• The ‘Old’ ways of selling to a retailer & shopper has come
to an end
end….

• Retailers & Shoppers are increasingly more informed –
How are we h l i t d
H helping to develop th right strategies?
l the i ht t t i ?

• The biggest “bang for our buck” will come when our
gg g
strategies and decision making are based on factual
shopper based insights, not anectodal feedback

• Think of ways to widen distribution across channels,
deliver convenience to the shopper and add value back
into the category for the retailer!
26


Thank you


The Nielson Company

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