A syndicated study to understand food and grocery shoppers attitudes and behaviour.

1. S.M.A.R.T. – HOUSEHOLD & GROCERY PRODUCTS
SHOPPERS IN MODERN TRADE - ATTITUDES & RETAIL TRANSACTIONS
July 2011

2. Cities across the country are in varied stages of Modern Retail development; It is
Modern Retail
in India crucial for all stakeholders in Retail to understand shopper behaviour in these types of
markets for precisely tailored decision-making
Source: Jones Lang LaSalle (Retail: Off the beaten Track)
Markets Socio-Economic Situation Modern Retail Presence of National Brands
Mature Strongest Socio-economic fundamentals Highest no. of malls Highest Presence
Most National Brands Present,
New Projects are increasingly
Transitional Large Middle class, Above Average Incomes International brands starting to
taking shape
arrive
High growth High Income, High Brand Awareness Substantial no. of malls planned “the next retail destinations”
Increased demand for modern Part of medium term expansion
Emerging Growing Incomes, Rising Aspirations
retail catching attention plans
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3. Modern Retail Expanding on their presence in the Mature and Transitional markets, Retailers
in India have now started looking at High Growth and Transitional markets.
In the past two years, the growth in malls in the smaller towns (55%) is more
than twice that of metros (24 %)
“…enormous opportunity in non-metro urban markets; the large consumption
base there was only marginally affected by the recession, and now has
enhanced purchasing power.” - Ashok Rajgopal (E&Y)
V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to
open 40 outlets over the next three years, starting with 13 stores in 2011.
These would come up in Tier-II and Tier-III cities at an overall investment of
about Rs 80 crore
After stabilising its operations in the larger cities, Spencer’s is now focused
on expanding the bigger format stores in 12-14 clusters in the country
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4. Food and Food and Grocery spearheads this thrust into smaller towns with retailers like
Grocery Retail Future Group planning to enter 10-12 new towns every year
Though just 6-7% of FMCG sales at the all India level,
Organized Retail already accounts for 25%+ of sales in
large cities
Food accounts for more than 60% of India's US$350 billion
retail market.
FDI limits in Multi-Brand Retail may be eased soon
Grocery retailers seeing faster growth than non-grocery
retailers after the financial crisis in 2008
Modern grocery retailers managed to double market share
from 1% in in 2005 to 2% in 2010 despite slowdown caused
by the financial crisis
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5. Objective As a Food/Grocery Marketer, do you frequently wish you could answer the
FMCG following questions with certitude?
Who buys my products / category in Modern Trade*?
How can I better target them with my ATL / BTL promotional efforts?
To what extent do discounts / promotions affect purchases in my
Category in Modern Trade?
How is my category shopped across Modern Trade channels?
When does a shopper choose Modern Trade over Traditional Trade?
What comprises the Shopper Basket in Modern Trade?
How can I use that information to improve the sales of my brand(s)?
* For the purpose of the study, Modern Trade is defined as Retail
Chain Stores as well as independent Self-Service Grocery Stores
which are similar to Supermarkets
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6. IF YOU’VE BEEN LOOKING FOR THE ANSWERS TO THESE QUESTIONS,
THE BRANDSCAPES INDIA S.M.A.R.T. STUDY - HOUSEHOLD PRODUCTS
CAN HELP BY PROVIDING…
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7. Deliverables … the following solutions
General Shopping
Behaviour
FMCG Two Types of Reports
In-Depth
Category Report
Channel-Specific
Retailers Individual Reports
Reports
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8. Deliverables Report on General Shopping Behaviour in Modern Trade
 General Shopping Behaviour in Modern Trade
 Who shops at Modern Trade channels?
 Visit Incidence and Visit Frequency of the Major Stores
 Key Visit Motivations by Channels
 Visit Metrics by channel – Time Spent, Money Spent
 Profiling shoppers and shopping behaviour by Visit Motivations
 Key Categories Purchased by Visit Motivations and Demographics
 Data reported at All India and Town Class levels
*Study incorporates the existing as well as the proposed new implementation of Socio-economic Classes
* For the purpose of the study, Modern Trade is defined as Retail
Chain Stores as well as independent Self-Service Grocery Stores
which are similar to Supermarkets
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9. Deliverables Sample Output: General Shopping Behaviour
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10. Deliverables Category Reports
 How is the category shopped?
 Shopper Profile: Who buys my category?
 Detailed Demographics profile, Lifestyle Attributes, Attitudes to Shopping
 Channel Profile: Where is my category bought from?
 What are the key Visit Motivations that lead to purchase of my category?
 Basket and Adjacency Analysis :
 Identify categories exhibiting higher purchase frequency and synergy with my
category by channel
 Shopper Behavior:
 Brands Purchased
 Planned / Unplanned Purchase
 Purchases on Discount/Promotion
 Preferred store for category
 Data reported at All India and Town Class levels
Report Available for Select Key Categories
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11. Deliverables Sample Output: Category Report
Frequency: what % of total baskets contain both your product and the potential adjacency.
Relevance: tells you how well your product “goes with” the potential adjacency,
Synergy: tells you how much more often your category and the potential adjacency are purchased
together than their individual probabilities would predict,
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12. Deliverables Channel Reports: Supermarkets and Hypermakets
 Shopper Behaviour within a channel
 Visit Frequency
 Visit Motivations
 Visit Type (Planned / Unplanned)
 Visit Metrics: Time Spent, Amount Spent
 Shopper Profile – Demographics, Attitude to Shopping
 Shopping Experience at the channel
 Channel Perceptions
 Loyalty Card Ownership
 Basket Contents
 Data reported at All India and Town Class levels
Report Available for:
1. Supermarkets (More, Food Bazaar, Nilgiri’s, Reliance Fresh etc)
2. Hypermarkets (Spencer’s Hyper, More Megastore, Big Bazaar, Spar, Hypercity etc)
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13. Deliverables Channel Specific Reports: Shopper Behaviour within a channel
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14. Deliverables … and there’s more!
 Brandscapes can create customized reports to suit your exact needs
 This includes:
 Custom Reports
 Store Level Analysis
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15. THE BRANDSCAPES APPROACH
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16. Target Group: The study is geared to target the primary decision maker in every
Coverage
household we approach
• Primary FMCG Decision Maker in the Household
• 20-45 years old
• SEC ABC
• Shops at Modern Trade outlets at least once a month for Food and
Grocery
* For the purpose of the study, Modern Trade is defined as Retail Chain Stores as well as independent Self-
Service Grocery Stores which are similar to Supermarkets
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17. Methodology The Data Collection Process
Qualitative Phase Quantitative Phase Quantitative Phase
Focus Group Discussions Stage I: Listing Interviews Stage II: Post Shopping Visit
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18. Qualitative Phase: 12 Focus Group Discussions across Market Types and different types of
Methodology
Decision Makers
Mature
Transitional High Growth Emerging Total
Markets
Young Female
1 1 - - 2
25 – 35 years
Young Male
- 1 1 - 2
25 - 35 years
Older Female,
1 1 1 1 4
35 – 50 years
Older Males
1 1 1 1 4
35 - 50 years
TOTAL 3 4 3 2 12
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19. Methodology Quantitative Phase: Deployed in Two Stages
Stage – II
Post Shopping Visit Interview
Recruitment:
• Primary FMCG Decision Maker
• 20 – 45 years
• SEC ABC
• Shops at Modern Retail outlets at least once a month for Food and Grocery
• Respondent incentivised to contact Field Team after next Shopping Visit for
Stage II
Stage – I
Door to Door Listing
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20. Two Stage Data Collection to capture shopper habits along with actual store visit
Methodology
behaviour, Purchase Receipt collected to accurately reflect transactions
Stage I: Door-to-Door Listing Stage II: Post-Shopping Visit
Bill Collection + Interview
• Awareness / Visit Frequency : Key Retailers
• Key Visit Motivations • Reason for Visit
• Purchase Incidence : Key Categories • Was visit Planned / Unplanned
• Purchase Frequency: Key Categories • Was a Shopping list used?
• Total Monthly Spend on Grocery • Time Spent in store
• Store Perceptions • Mode of Commute
• Profiling Data • Mode of Payment – Cash / Credit / Coupons
• Demographics • Alone / Accompanied
• Attitudes to Shopping Recruitment for Stage II • Shopping Experience
• Household Composition • Bill Analysis** to capture:
• Type of Household (Joint / Nuclear) • Basket Contents / Size
• No. of Earning Members in Family • Categories Purchased
• Monthly Household Income • Brands Purchased
• Durable Ownership • Planned / Unplanned Purchases
• Discount, if any
• Day of week / Time of Day
• Bill Amount
** Actual Bill from Visit is collected for analysis
Data weighted for Age X SEC
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21. Coverage
8500 interviews in 19 cities across 4 key market types, followed by 3275
grocery bills and visit metrics
Market Growth Stage Level Reporting
Phase I - Listing Phase II – Post-Visit
Mature 2000 800
Delhi 1000 400
Mumbai 1000 400
Transitional 2400 900
Ahmedabad 400 150
Bangalore 400 150
Chennai 400 150
Hyderabad 400 150
Kolkata 400 150
Pune 400 150
High Growth 2400 900
Indore 400 150
Jaipur 400 150
Kochi 400 150
Ludhiana 400 150
Surat 400 150
Vadodara 400 150
Emerging 1700 675
Coimbatore 400 150
Nagpur 400 150
Raipur 300 125
Trivandrum 300 125
Udaipur 300 125
All India Total 8500 3275
* For the purpose of the study, Modern Trade is defined as Retail
Chain Stores as well as independent Self-Service Grocery Stores
which are similar to Supermarkets
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22. Categories Typical Categories in basket*
FOODS HOME CARE PERSONAL CARE
Staples Laundry detergents Skin care creams and
Cooking Oils/ Vanaspati Dishwashing products lotions
Packaged Tea/ Coffee Disinfectants Shampoos &
Cold Beverages Toilet Cleaners Conditioners
Packaged Spices Air Fresheners Hair colouring products
Poultry & Non-Veg Mosquito/ Insect Repellants Talcum Powders
Milk and Dairy Products Bathing soaps/ shower gels Perfumes
Frozen Foods Toothpastes Deodorants
Instant Foods Antiseptic creams & liquids Lipsticks & Nail Polish
Instant Mixes, Instant Pasta, Instant
Noodles, Packaged Soup, RTE Foods
Biscuits and Snacks
Biscuits/Cookies, Chips, traditional
snacks
* Category quotas will be monitored for those categories which have been pre-subscribed to
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23. PROPOSED TIMELINES AND INVESTMENTS
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24. Timelines Proposed timelines
Activity Timeline
Launch of Fieldwork September 2011
General shopping behaviour in Modern Trade Dec 2011 – Jan 2012
Category and Channel Reports 3-4 weeks post request
Reports can be made
available from Dec 2011
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25. Investment Investment Required
Report Type Early Bird Offer* (INR) Regular Price (INR)
General Shopping Behaviour in Modern Trade 4,00,000/- 5,00,000/-
Category Reports (Single category) 4,00,000/- 5,00,000/-
Channel Reports (Single channel) 3,50,000/- 4,40,000/-
* Early Bird pricing eligibility limited to subscriptions confirmed before 25th August and
advance payment received before 31st August
Costs are exclusive of Service Tax which would be charged at prevailing GOI rates
Payment Terms
50% advance payment on subscription to a report
50% payment on report delivery
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26. MODERN TRADE IN INDIA HOLDS ENORMOUS POTENTIAL FOR YOUR BUSINESS…
ARE YOU EQUIPPED TO TAP IT SMART-LY ?
CONTACT: retail@brand-scapes.com
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