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SHOPPERS VERSUS RETAILERS

Who should I focus on instore?


Win Both Shoppers and Retailers Through
Execution Excellence

March 2016
WHY BOTHER?

>85%
1.3 M
GROCERY STORES ACCOUNT FOR
TT FMCG SALES
Copyright 2015 The Nielsen Company. Confidential and proprietary.

US$ 9.9 Billion

Source: Retailer Sentiment Study Q1, 2015


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ENCOURAGING PROSPECTS
No need to turn every store to get the opportunities

30% 80%
store turnover
Fragmented Cigarettes 50%
Concentrated Home/ Personal Care 15-20%

There is so much value in a single % point reduction of OOS


Copyright 2015 The Nielsen Company. Confidential and proprietary.

Cigarettes 3% to 2% US $54+K / day


CSD 4% to 3% US $180+K / day

Source: RMS Data Nationwide MAT 3


HOWEVER,
IT ALSO COMES WITH CHALLENGES
DAUNTING TASK LIMITED SPACE
1.3 mil stores can look
Average store size is only 19 SQM
overwhelming for manufacturers

WAIT AND SEE MODE LIMITED CATEGORIES


RCI 71 pts vs CCI 106 pts Retailers are Cannot handle more than 15 SKUs
not yet fully confident about state of in the space available
business
Copyright 2015 The Nielsen Company. Confidential and proprietary.

RETAILERS NEED F&B DOMINATE SPACE


MONITORING 60% of limited space is occupied by
Just 40% of retail stores comply with food and beverage categories
manufacturer programs if not monitored

Source: Retailer Sentiment Study Q1/2, 2015


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Copyright 2013 The Nielsen Company. Confidential and proprietary. Copyright 2012 The Nielsen Company. Confidential and proprietary.

CHALLENGES
HOW TO BEAT THESE

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Copyright 2013 The Nielsen Company. Confidential and proprietary. Copyright 2012 The Nielsen Company. Confidential and proprietary.

IN VIETNAM
TO WIN IN TRADITIONAL TRADE
5 INSIGHTS

WIN THE SHOP, SHOPPER & SHOPKEEPER

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Copyright 2015 The Nielsen Company. Confidential and proprietary.

1. STORE FRONT IS THE GOLDEN GATE


Any brand exposure (product display or POSM) should aim to land at store-front to
maximize visibility.

55%
Image on Sign-
32% board
Image of 53%
Shelf
Image on fridge/
Visicooler

% Who noticed POSM

Source: Traditional Trade Thought Leadership Q4, 2015 7


1. CAPTURE THE GOLDEN GATE
Transactions happen outside the store with the golden gate in full view.

97% 98%
Shoppers Shoppers ask
stand outside stores owners
of the store to get the
products
Copyright 2015 The Nielsen Company. Confidential and proprietary.

Shoppers are running auto-pilot on their transactions.


The challenge is how to get them engaged to open up more purchase opportunities

Source: Traditional Trade Thought Leadership Q4, 2015


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2. SHOPPERS ARE GONE IN 90 SECONDS
Stores get an average 404 customers visiting every day. 3 out 4 transactions are less
than 2 minutes. Things happen fast but theres a whole minute to capture the shopper
while he/she is idle.

FIRST 10 NEXT 60 LAST 20


SECONDS SECONDS SECONDS

ORDERING WAITING FOR RETAILER TO GET THE ITEM MAKING PAYMENT


Copyright 2015 The Nielsen Company. Confidential and proprietary.

IDLE TIME = OPPORTUNITY


TO INTERVENE
Source: Traditional Trade Thought Leadership Q4, 2015 9
Copyright 2015 The Nielsen Company. Confidential and proprietary.

IDLE TIME
ENGAGEMENT OPPORTUNITIES TO CAPTURE

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3. SHOUT OUT YOUR PROMOTIONS
The best way to shout about it is through the retailer. Unfortunately, it is not a
very common practice currently.

of the of the
98% shoppers
are not
shopkeepers
actively talk
1%
aware of about
Copyright 2015 The Nielsen Company. Confidential and proprietary.

PROMOTION
retailers made a 2 out of the 3
3% recommendation shoppers will follow the
retailers recommendation.
to shopper

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4. EDUCATE RETAILERS WHERE THE MONEY IS
Supporting store management (inventory, space planning, shopper engagement)
are vital needs raised opportunities to engage retailers. Concepts such as
upselling & cross-selling will be valued as it can drive growth for their business.

RETAILER CONCERNS
10%
Consumer Recommend to shoppers
Off-take when product is out-of-stock
Competition
from other
retailers
10%
Engage shoppers in
Copyright 2015 The Nielsen Company. Confidential and proprietary.

Revenue conversation about product


/Margin feedback, price, new
launches
Stock quantity/
stock price/
sufficient stock SHOPKEEPERS
Source: Retailer Sentiment Study Q2, 2015; Traditional Trade Thought Leadership Q4, 2015 12
4. SHOW RETAILERS WHERE THE MONEY IS
Create a WIN WIN opportunity for manufacturers and retailers to drive
growth and at the same time addressing issues such as out-of-stocks

JET (7%) CRAVEN A HERO (6%)


AVERAGE RATE OUT-OF- (6%)
Copyright 2015 The Nielsen Company. Confidential and proprietary.

STOCK FOR CIGARETTE


TOP 3 BRANDS THAT
3% = US $2 mil/day ARE OUT-OF-STOCK

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5. DISRUPT THE TRANSACTION
Not all is lost with most transactions being planned. There are opportunities to
intervene and create opportunities for unplanned purchases and build your brand.

SHOPPERS
SMS promo

95% In exclusive in TT

planned
purchases 60 SHOPKEEPERS
Mention theres a
new product or a
promo item

seconds PG
Copyright 2015 The Nielsen Company. Confidential and proprietary.

Hand out a
you can product sample

IN-STORE COMMS
Play a 15 sec TVC 4x via
LCD display

Source: Traditional Trade Thought Leadership Q4, 2015


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5. DISRUPT THE TRANSACTION
Opportunities to increase basket size can be explored by partnering with often
bought categories. On the other hand, if your product is part of the destination
categories - protect your stock levels and ensure compliance from retailers.

46% 54%
Food
Cigarette 48% (Instant noodles, 60%
Fish/soy sauce)
Food Beverage
(Instant noodles, 36% 38%
Copyright 2015 The Nielsen Company. Confidential and proprietary.

(Liquid milk, RTD Tea)


Snack)
Beverage Personal care
(CSD, Beer, Liquid 31% (Sanitary napkin, 17%
milk) shampoo)
Household care
Personal care 12%
6% (Dish washing liquid,
(shampoo)
washing powder)
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Source: Trade Thought Leadership Q4, 2015
Copyright 2013 The Nielsen Company. Confidential and proprietary. Copyright 2012 The Nielsen Company. Confidential and proprietary.

HERE
WHERE TO FROM

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WINNING CAN LOOK LIKE THIS
Product assortment
identified and in Branded store
stock sign secured

Disruptions
created like a
Dynamic POSM promo Girl
(LCD, product handing out
samples for sniffing, product samples
Copyright 2015 The Nielsen Company. Confidential and proprietary.

touching, etc.)
located in front of
store, All possible front
Retailer standard of store surface
response after getting area is maximized
shopper order: Brand X for branding.
is on promo today
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RETAILER VOICE NEEDS TO BE HEARD
Question: To sell more in Tet, which activities would you like manufacturers to support?

76% 65% 42%

Product Quality Promo for consumers Stock return/


Money-back

38% 34% 31% Listen to retailers


voice to help
Copyright 2015 The Nielsen Company. Confidential and proprietary.

manufacturers to
innovate and elevate
the relationship
Delay payment Incentive scheme for POSM/Display
stores achieving Tet
sales target
Source: Retailer Sentiment Study Q3, 2015 18
TRADITIONAL TRADE EVOLUTION
Engaging retailers of traditional trade and taking the business to the next level is very
much possible
Space Planning and Management

Community of
Entrepreneurs

POS and Inventory Management


Copyright 2015 The Nielsen Company. Confidential and proprietary.

Business
Training

Microfinancing

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Source: hapinoy.com
Copyright 2012 The Nielsen Company. Confidential and proprietary.

PARTING WORDS
Capture shoppers Have them
Maximize branding while they are idle. shout out your
opportunities in the You have
PROMOTIONS
Golden Gate 60 seconds and watch the
to make this happen conversion grow.

WIN-WIN BE
WIN RETAILERS
opportunities in DISRUPTIVE
To
Copyright 2013 The Nielsen Company. Confidential and proprietary.

retailer engagement use interactive


help grow each
others businesses
marketing activities that
could shake up the
Win Shoppers
shoppers idle time.

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Copyright 2013 The Nielsen Company. Confidential and proprietary. Copyright 2012 The Nielsen Company. Confidential and proprietary.

THANK YOU

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