How do leading retailers develop their strategy ?

1. Understand shoppers

2. Identify an opportunity space which they can own

(shopper segment and shopping trip)

3. Develop a proposition which meets

1) Brand Identity
2) Retail Format
3) In-Store

VIDEO

Key Points from Sainsburys Hazelgrove

Sainsburys:

Understand needs of different shopper segments

Understand different shopping missions
Creatively responded with different formats
Develop specific Shopper Touch points:

Store Look & Feel

Product & Category
Service & People
Communications

More and more retailers have segmented

their shopper base

Retailer Developed Shopper Segmentation Classifications

Wal*Mart
Safeway
Sam's
CVS
Brand Aspirationals
Value Seeking
Office Administrator
Caroline
Price Value Shoppers
Variety Seeking
Business Reseller
Young, single work ing woman
Trendy Quality Seekers Brand Seeking
Institutional Buyer
Vanessa
Price Sensitive Affluents Simplicity Seeking Foodservice Entrepreneur
Married with Children
One Stop Shoppers
Discovery Seeking Traditional Club Shopper
Sophie
Conscientious Objectors Quality Seeking
Demanding/Experiential Shopper Older Shopper/Empty Nester
Social Shoppers
Mom/Family CEO
Active Boomer

Best Buy
Jill
Soccer Mom
Barry
Affuent Professional
Ray
Family Man
Buzz
Younger Male
BB4B
Small Business

Manufacturers are asked to align their brands

with customer segmentations

Watsons shopper segments and attitudes towards shopping

for personal care products

MOST
OUT
OF LIFE

TREND
PURSUER

LIVE
FREELY

LIVE
EFFECTIVELY

Store Explorer

Trendy
Shopper

Convenient
Shopper

Efficient
Shopper

Shop for
HBC products
as part of
daily activities
to search for
something better

Search for new

trends /
innovations
when shop for
HBC products

SHOP FOR FUN

High level of involvement
with shopping for HBC products

Shop & Buy HBC

products
whenever it
is convenience

Find most effective

way to shop for
HBC products

PRACTICAL SHOPPING
Enjoy shopping for HBC products,
but must also be practical
(convenient and efficient)

FULL OF
RESPONSIBILITY

Amateur
Shopper

Want shopping
to be hassle free
(get all that is
needed with the
best experience)

HASSLE FREE
SHOPPING
Want shopping
to be hassle free

CONSUMER INSIGHT

BRINGING FOOD
ALIVE
171

THERE ARE
MILLION
COOKBOOKS IN BRITISH HOMES THE EQUIVALENT OF ABOUT
SEVEN PER HOUSEHOLD

INSIGHTS: ITS ABOUT OWNING THE

SEASONS, CREATING THEMES AND OCCASIONS.
CONSUMERS ARE NO LONGER CONTENT TO
SIMPLY SHOP, THEY EXPECT TO BE INSPIRED
AND ENTERTAINED

LA BOQUERIA MARKET, BARCELONA

KIDFRESH, NEW YORK

LETS DISH, NEW JERSEY

LA FROMAGERIE, LONDON

MAX BRENNER, SYDNEY

Peter is a young, thrusting marketing executive.

He is single and lists skiing, theatre and
socialising as his main interests.
He has a high disposable income and believes
life is to be enjoyed for the moment.

Which car will Peter buy?

Car A

Car B

1.8 litre engine

Radio

1.8 litre, injection engine

Air conditioning
ABS brakes
iPod dock
Metallic paint and alloy
wheels

Which car will Peter buy?

Nissan

BMW

1.8 litre engine

Radio

1.8 litre, injection engine

Air conditioning
ABS brakes
iPod dock
Metallic paint and alloy
wheels

What is a Brand?
A product is something that
is made in a factory; a brand
is something that is bought
by a customer.
A product can be copied by a
competitor;
a brand is unique.
A product can be quickly
updated; a successful brand
is timeless
Stephen King, WPP

What is a Brand?

A name and/or symbols associated with a

known and trusted set of benefits and
values, which appeal to the mind but also
to the heart

What is Brand Positioning?

How the brand is perceived by the target

audience relative to its competitors

What is the Positioning of these Brands?

What is the Positioning of these Brands?

Dynamic
Driving

Safety

Chic Fun

Opulence

Store Thumb Print

1. Market Dynamics
The alternative choices, seen from the
shoppers perspective, in meeting a
particular shopping need
2. Target Shopper
Description of the target shopper in terms
of attitudes, lifestyle & demographics
3. Key understanding
The core shopper insight upon which the
retail brand is anchored
4. Solutions
Functional and emotional benefits that
appeal to the shopper
5. Evidence
The proof to substantiate the claimed
solutions
6. Values and Personality
What the retailer stands for and its
personality
7. Differentiator
The key reason the target shopper
will choose that retailer
8. Store in a phrase
A singular thought that captures
what the retailer stands for

Why do Retailers Need to Clearly Position

Themselves?

Retail landscape becoming increasingly competitive

Shoppers need to be attracted based on a clear,
differentiated and relevant proposition
Retailers are brands
Retailers need a Proposition to guide decisions on:

Product
Pack
Place
Price
Promotion

STP Plus

But retail brands are more complex than FMCG

brands
Overarching
Proposition

Mission Specific
Formats

Complex Shopper
Journeys

Touchpoints

Unites every
aspect of a
complex brand
experience to
deliver unique
value in target
shoppers lives

Understanding
range & depth of
target shopper
missions &
providing relevant
store format
solutions

Manage every
aspect of the
shopping trip from
the shoppers
perspective to
deliver total brand
proposition

Tangible
expressions of the
brand to connect
with the shopper
& deliver via full
360 experience

How does this thinking

impact the Store Thumb
Print
positioning tool?

Store Thumb Print Plus (STP Plus) is a more

powerful diagnostic tool
STP Plus builds on the elements of the STP to provide an even more useful
tool for diagnosing the blueprint & future vision of a retailers brand

Key Improvements:
Recognises importance of market dynamics and trading
environment in diagnosing retailers brand positioning
Incorporates shopping missions and their implications through
mission fingerprints
Increased level of understanding of multiple retail
formats/channels by mission
Greater focus on the shoppers journey through the retail brand
Identifies specific shopper touchpoints in and out of store

STP Plus now includes overall positioning and

the way retailers flex their brand
The original Thumbprint still
captures the overarching
proposition of this retailer

+
The new Fingerprints
capture the complexity of
different shopping
missions and how these are
addressed through formats
& shopper touchpoints

= STP Plus

1. Market Dynamics

2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

8. Store
in a
Phrase

STP Plus is grouped into 4 key sections

Market Dynamics

Market
Dynamics

1. Market Dynamics

2. Target Shopper
3. Shopper Understanding

II

Mission Fingerprints

III

Shopper Touchpoints

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

8. Store
in a
Phrase

4. Solutions
5. Evidence

Core Brand Attributes

6. Values & Personality
7. Differentiator
8. Retailer Brand in a Phrase

IV

Core Brand Attributes

Market Dynamics incorporates a fuller understanding of

the retailers trading environment and future implications

Market Dynamics

Market
Dynamics

1. Market Dynamics

2. Target Shopper
3. Shopper Understanding
1. Market Dynamics
2. Target Shopper

Market Dynamics and Implications: RETAILER NAME/LOGO

Market
Trends
Use
market
reports,
retail
websites

3. Shopper
Understanding

Business
Performance

Growth
Strategies

Competitive
Threats

Trading Style

Use annual
reports,
broker
reports,
retailer
websites

Use
knowledge
from
account
teams,
annual
reports,
news
articles,
retailer
websites

Condense
your
knowledge
of how the
competitio
n is seen
by this
retailer

Interview
account
directors
regarding
latest
trading
issues and
make
assessment
from past
history

4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Corporate
& Social
Responsibilit
y
Use
retailer
websites,
news
articles
and annual
reports

8. Store
in a
Phrase

4. Solutions
5. Evidence

Core Brand Attributes

Top 5 Implications for this Retailer

6. Values & Personality

7. Differentiator
8. Retailer Brand in a Phrase

Examples of Market Dynamics and Implications

for Tesco

Market Dynamics

I Dynamics
1. Market
Market

Dynamics
2. Target Shopper
3. Shopper Understanding
1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding
4. Solutions

Market Dynamics and Implications:

Market
Trends

Business
Performance

Growth
Strategies

Competitive
Threats

Trading Style

Food price inflation is

likely to see market
value continue to
increase ahead of
volume growth
Tesco is #1 in value
market share in UK
and Thailand, #2 in
Ireland and #3 S.
Korea
In most other markets
Tesco is a smaller, but
growing player

Full year sales to Feb

08 were up +11.1% to
51.8bn with
international sales up
by +25.3% to 13.8bn
and UK +6.7%
37.9bn
Operating profits
increasing by 5.4% to
2.79bn

Tesco continues to
drive growth based on
a strong UK core (70%
of sales), yet further
development of Asia &
US likely
Broad based marketing
strategy with
significant focus on
loyalty card
Developing a strong
private label and
branded non-food
business is a key
driver for Tesco's
growth initially in the
UK, but internationally
longer term
Engages in predatory
pricing tactics - to
compete with
discounters, Tesco
aims to match them on
1,100 lines and to
become a wide range
discounter across all
formats

In UK, an enlarged
Morrisons and a
resurgent Sainsbury's
could attack Tesco's
core family sector
However, Tesco's
biggest threat is
discounters,
particularly in West
and Central Europe
Entry into the US has
come at a difficult time
with consumers
reigning in expenditure
In Asia, Tesco is a late
entrant into the
convenience store
market, so market
leaders such as 7Eleven may limit
growth
An ageing population
in a number of its
markets, will limit
hypermarket
opportunities

Highly competitive
pricing strategy aimed
at attracting the mass,
family market.
Plays from a position
of strength in many
markets in which it
operates, where it
holds one of the top 3
positions.
Not afraid to take risks,
undertaking
acquisitions to
maintain growth and
expanding into new
products, markets and
channels gaining first
mover advantage
To assess supplier
performance, Tesco
uses a modified
version of the ECR
Scorecard covering:
technical, commercial,
innovation and
investment capabilities

5. Evidence

6.
Values
&
Personality

GLOBAL

7.
Differentiator

8. Store
in a
Phrase

Corporate
& Social
Responsibilit
y

Tesco is adopting a
variety of measures to
reduce its
environmental impact
ranging from more
environmentally
friendly energy
consumption in the UK
and Thailand to waste
management and
recycling in Ireland
Developing an institute
to measure carbon
footprint of all products
Incentivises energy
efficient products
through its Green
Clubcard scheme
Reducing the carbon
footprint of its existing
stores and distribution
centres around the
world by 50% by 2020

4. Solutions
5. Evidence

Core Brand Attributes

Top 5 Implications for this Retailer

6. Values & Personality

7. Differentiator
8. Retailer Brand in a Phrase

Expansion in Asia and

US will be tougher
than expected due to
global growth slowdown

Tesco must expect to

become increasingly
engaged in price wars
to maintain its market
position.

Without economies of
scale in newer
markets, Tesco might
struggle to maintain
margins if forced to
discount

Shoppers will
continue to demand
Tesco stays ahead of
the pack on Green
issues another cost
during tough times

Opportunities for
market share growth
in core UK market will
be limited as
shoppers reign in their
spend

Each fingerprint represents a specific mission for

II
a key target shopper for that retailer
Market Dynamics
1. Market Dynamics

2. Target Shopper
3. Shopper Understanding

II

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding

Mission Fingerprints

4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Shopping
Mission

8. Store
in a
Phrase

4. Solutions

Target
Shopper

5. Evidence

Core Brand Attributes

6. Values & Personality

Shopper
Understanding

7. Differentiator
8. Retailer Brand in a Phrase

Store
Format

Mission Fingerprints

Examples of mission fingerprints for Tesco

Market Dynamics
1. Market Dynamics

2. Target Shopper
3. Shopper Understanding

II

Mission Fingerprints

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding

Mission Fingerprints

4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Shopping
Mission

8. Store
in a
Phrase

4. Solutions

Target
Shopper

Medium to
large families

Shopper
Understanding

Mums prefer a
one-stop shop
to get more of
their familys
needs in less
time

5. Evidence

Core Brand Attributes

6. Values & Personality

Main weekly
grocery shop

7. Differentiator
8. Retailer Brand in a Phrase

Store
Format

supermarkets

Examples of mission fingerprints for Tesco

Market Dynamics
1. Market Dynamics

2. Target Shopper
3. Shopper Understanding

II

Mission Fingerprints

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding

Mission Fingerprints

4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Shopping
Mission

8. Store
in a
Phrase

4. Solutions

6. Values & Personality

Medium to
large families

Single, working
people

Shopper
Understanding

Mums prefer a
one-stop shop
to get more of
their familys
needs in less
time

Shoppers hate
queues and
expect to get in
and get out
quickly without
fuss

7. Differentiator
8. Retailer Brand in a Phrase

Top-up shop

Target
Shopper

5. Evidence

Core Brand Attributes

Main weekly
grocery shop

Store
Format

supermarkets

Examples of mission fingerprints for Tesco

Market Dynamics
1. Market Dynamics

2. Target Shopper
3. Shopper Understanding

II

Mission Fingerprints

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding

Mission Fingerprints

4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Shopping
Mission

8. Store
in a
Phrase

4. Solutions

6. Values & Personality

Home
appliance
shopping

Medium to
large families

Single, working
people

Medium to
large families

Shopper
Understanding

Mums prefer a
one-stop shop
to get more of
their familys
needs in less
time

Shoppers hate
queues and
expect to get in
and get out
quickly without
fuss

I can buy
familiar
technology as
cheaply and
easily as
groceries

7. Differentiator
8. Retailer Brand in a Phrase

Top-up shop

Target
Shopper

5. Evidence

Core Brand Attributes

Main weekly
grocery shop

Store
Format

supermarkets

What Touchpoint solutions does retailer use for

each mission?
Mission Fingerprints

Market Dynamics
1. Market Dynamics

Shopping
Mission
Target
Shopper

2. Target Shopper
3. Shopper Understanding
1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Shopper
Understanding
Store
Format

Shopper Touchpoints
Store
Look
& Feel

8. Store
in a
Phrase

4. Solutions

Product
&
Category

5. Evidence

Core Brand Attributes

6. Values & Personality

Service
&
People

7. Differentiator
8. Retailer Brand in a Phrase

Communications

What is a Shopper Touchpoint?

The physical evidence of the retailers brand

positioning in-store and out-of-store

Elements of the shopping experience that

shoppers can touch and interact with

How the retailer engages shoppers and makes

their offer stand out from the crowd

As suppliers, those elements with which we

can align & work with the retailer

Touchpoints Example
A new entrant to the UK
who is challenging established players

Largest organic food retailer in world, founded 1980 in Austin,

Texas
195 stores in US : first store UK opened June 07, Kensington
(acquisition of Fresh & Wild)
Positioning Whole Foods, Whole People, Whole Planet
Impressive store design & innovative merchandising
why cant supermarkets be as inviting
as anywhere else to shop?
Where possible, organic & local sourcing 95% from UK

Touchpoints:
Store Look & Feel

Branding is distinctive but subtle

respects character of building

Images convey authentic message but still allows

you to see inside & make your own judgement

Handwritten signs on windows

this is what we stand for

Touchpoints:
Product & Category
Seriously
fresh!

English Asparagus in season

Grape mountain

Eggs sold loose

(including ostrich!)

Extensive British cheese selection

Cut fruit convenient snacking

Touchpoints:
Service & People

Take Out range of Prepared Foods

Organic Pub on 1st Floor

180 varieties of rice, grain, oats

Make your own

Peanut Butter Machines

Offsets 100% of electricity

consumption
No Car Park policy use
public transport
Bags are 100% recycled 5p
discount if bring your own
Boxes are compostable
Full recycling points in store
Organic cotton uniforms for
staff
Eco Store section : organic,
fair trade t shirts, baby clothes
High traceability weve
done the research for you
No. 5 best company to work
for in US (Fortune ranking)

Touchpoints:
Shopper Communications

Typically takes one year to open a store

Focus on right locations : high footfall, relevant to
local consumer base
Aim to have 2 to 3 in the UK
High profile 1st store : former Barkers of Kensington
Dept store London landmark
Teaser campaign via shop windows during refit
Use of local tube station advertising to build hype
Strong PR campaign, telling consistent story - website
Result : store opening was a major
scrum!
Developers typically love a store
opening builds footfall for entire area

What are the kinds of Touchpoints to look for in

III
each mission?
Market Dynamics

Shopper Touchpoints

1. Market Dynamics

Store
Look
& Feel
2. Target Shopper
3. Shopper Understanding

Store location, layout, aisle widths, traffic flows, lighting, design, etc
Merchandising, shelf structure and look, signposting, sequencing and prominence, product
display, etc.

Product
&
Category

Range (depth & breadth),

category priorities, category roles
Price & Value Proposition

How developed is retailer private label? In

which categories? Does it offer
good/better/best PL ranges?
Promotional strategy & mechanics

Service
&
People

Service messages in-store

Quality of customer service in and around
store

How much staff interaction with customers is

there?
How much is required for each mission?

Communications

Consider external/internal shopper

communications such as signage,
at-shelf, leaflets, magazines, multimedia.

How is value position communicated in and out

of store? Impact om promotions, new products,
in store initiatives

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

8. Store
in a
Phrase

4. Solutions
5. Evidence

Core Brand Attributes

6. Values & Personality
7. Differentiator
8. Retailer Brand in a Phrase

III

Shopper Touchpoints

Shopper Touchpoints

Core
Brand
Attributes
bind
the
retailer
offer
IV
together
Market Dynamics
1. Market Dynamics

Mission Fingerprints
2. Target Shopper

main weekly
grocery shop

3. Shopper Understanding

top-up shop

1. Market Dynamics

Home
appliance
shopping

2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

8. Store
in a
Phrase

4. Solutions

medium to
large families

single, working
people

Medium to
large families

Mums prefer a
one-stop shop
to get more of
their familys
needs in less
time

Shoppers hate
queues and
expect to get in
and get out
quickly without
fuss

I can buy
familiar
technology as
cheaply and
easily as
groceries

5. Evidence

supermarkets

Core Brand Attributes

6. Values & Personality
7. Differentiator
8. Retailer Brand in a Phrase

IV

Core Brand Attributes

IV

We can hunt for Core Brand Attributes by examining

commonalities across Shopper Touchpoints

Market Dynamics

Shopper Touchpoints

1. Market Dynamics

Store
Look
& Feel
2. Target Shopper
3. Shopper Understanding

Product
&
Category

1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

8. Retailer
Brand
in a
Phrase

Service
&
People

Communications

Look for Touchpoint solutions that are the same

across the range of missions & formats.
What do these tell you about the overarching
Brand Values & Personality, or the key
Differentiator, or the Retailer Brand in a
Phrase?

4. Solutions
5. Evidence

Core Brand Attributes

6. Values & Personality
7. Differentiator
8. Retailer Brand in a Phrase

IV

Core Brand Attributes

STP Plus
Values & Personality
What is it?
What the retailer stands forand its personality

ALDI

Good honest value

Substance over form
No frills or gimmicks
It does what is says on
the tin
Your ally in managing
a tight budget

Tip

Use
projective
techniques

Waitrose
Foodiness
Expertise
Experience &
experiment
Inspiration
Seasoned traveler

STP Plus
Differentiator
What is it?
The key reason the target shopper will choose that
retailer

ALDI
Only ALDI gives such
great deals on food
and household goods

Tip

Link to Key
Understanding
Only

Waitrose
Only Waitrose
provides an
inspirational food
shopping
experience

STP Plus
Retailer Brand in a Phrase
What is it?
A singular thought that captures what the retailer
stands for

ALDI

Tip

Smart Shopper
Choice

Waitrose
The world of food
on your doorstep

Whats on
the T-shirt?

STP Plus
Final checklist
Does it hang together?
Is it clear & simple?
Is it motivating & inspiring?
Is it credible & relevant to shoppers?
Is it differentiated from other retail brands?

Developing STP Plus group exercise

Develop a STP Plus for your customer/channel
Market Dynamics have been prepared for you
Visit the store and make observations & notes to help you
build:
- Shopper Mission Fingerprints
- Touchpoint Solutions
Later you will complete the STP Plus wall poster & share your
findings

STP Plus
Mission Fingerprints

Market Dynamics
1. Market Dynamics

Shopping
Mission
Target
Shopper

2. Target Shopper
3. Shopper Understanding
1. Market Dynamics
2. Target Shopper
3. Shopper
Understanding
4. Solutions
5. Evidence

6.
Values
&
Personality

7.
Differentiator

Shopper
Understanding
Store
Format

Shopper Touchpoints
Store
Look
& Feel

8. Store
in a
Phrase

4. Solutions

Product
&
Category

5. Evidence

Core Brand Attributes

6. Values & Personality

Service
&
People

7. Differentiator
8. Retailer Brand in a Phrase

Communications

How do leading retailers develop their strategy ?

1. Understand shoppers

2. Identify an opportunity space which they can own

(shopper segment and shopping trip)

3. Develop a proposition which meets that need

1) Brand Identity
2) Retail Format
3) In-Store

Target The Cool College Lifestyle

(where we all want to be!)

Target Corp. is going after a specific lifestage demographic

college students
Younger kids aspire to be like their older siblings. Graduates reflect
fondly on their college experience. Therefore, this narrow target
audience is larger than many people think (age 15-25.)

Target The Cool College Lifestyle

(where we all want to be!)

Build
your
Dorm
Room

Latest Trends and

Campus Essentials

In-Store
Displays

Scholarship Program
RedHot Shop: T-shirt
design contest for
teens. Displayed at
Museum, profits fund
design education.

Target The Cool College Lifestyle

(where we all want to be!)

Tesco UK Massive Brand Stretch

What Tesco have done on Healthy Living

Huge growth of Healthy Living Club
Healthy living range success
5 nutrient GDA food labelling
Weight watcher points Stocking sports
equipment in Extras (
Clothes endorsed by Naomi Campbell
Own label beauty range
Tesco Mag Lifestyle advice

Race for life - cancer research UK

First to open up more space for mini drinks
GI diet
One stop shop in Extras & dot.com

Achieve more

Look better

Feel good daily

Give children a
good start

Be healthy for
longer
5 nutrient GDA front of pack labelling
Healthy living leaflets instore
237 pharmacies stores
GE Promo policy to include 1 better 4 u
Tesco Wholefoods launch

GI labelling & GI diet

Tesco e-diets on dot.com
Sports equipment in Extras
iPods, CDs & DVDs

Be free from health

problems
Purple 'free from range
Nuts & Allergy labelling
Separate section organic
5 nutrient labelling
Booklets - healthy living

Sport for schools and clubs

Computers for schools
School clothing
KidsZone mailer
Kids Foods range
Parking for mums and kids
Baby and toddler club
Financial savings for kids
2006 Whizzkidz charity

Help us Manage our Weight

Embrace Natural Integrity

Tapping into over 50s

Formats exist because they capture and create trips

How do leading retailers develop their strategy ?

1. Understand shoppers

2. Identify an opportunity space which they can own

(shopper segment and shopping trip)

3. Develop a proposition which meets that need

1) Brand Identity
2) Retail Format
3) In-Store

In-store Implications

Category Fixture Layout Exercise

Your group represents either the Supplier (McBiscuits =

Classic/Crumbs/OJ/Slim)

Or
The Customer

Arrange all the biscuit brands on the category fixture layout in

what your company thinks is the best way

Explain your reasoning on a flipchart

Timing 45 minutes

Category Fixture Layout Exercise 2

McBiscuits groups to sell their proposed category
layout to the customer
Note areas of agreement and disagreement &
learnings

Timing:
Preparation 10 minutes
Meeting 20 minutes

Key Customer Considerations

Sales and profit

Based on category drivers of value
50% of retailers cost is store space, so have to make work most effectively

Shopper-friendly
Based on shopper decision trees
Use signpost brands

Retail strategy
DOB next to brands
Aligned with STP
Emphasis depending on retailer strategic positioning

Logistics
Balance back of store space v delivery frequency v OOS
Shelf ready packaging

Category Layout

Retail Brand is 50%

Premium segment

Strong Branded
presence in Everyday
Biscuits segment

Higher price for

Premium and Treats
segments

Biscuits for Children

placed after Everyday
Biscuits segment

Chocolate Bars after

Biscuits for Children

Smaller product
sizes on the top shelf

Everyday
Biscuits

Biscuits for Children

Everyday/
Special
Treats

Strong Branded
presence in Healthy
Biscuits segment

Healthy
Biscuits

Everyday
Treats

Space invested in
growth of Healthy
Biscuits segment

Everyday
Treats

Premium
Biscuits

Healthy Biscuits placed

as the lead segment

Special
Treats

Retailer Value Brand

Biscuit Layout Length: c.8.5
metres

The strategy for the Sweet Biscuit category in this retailer is based on brands
and providing something for everyone, investing in Healthy and Children.

Savoury Biscuits
Category after
Chocolate Bars

Confectionery is
opposite Sweet
Biscuits Category

Retailer Value Brand

on the base shelf

Category Layout Value Retailer

Focus on Family and

Value products

Everyday
Treats

Everyday
Biscuits

Healthy Biscuits

Biscuits in Grocery
opposite Chocolate
Bars and Preserves

Premium Biscuits

40-60% share of lines

for Retailer Brand
products

Biscuits for Children

Hypermarket retailer
with EDLP plus
promotions

Premium and Healthy

either side of Everyday
volume segments

Brands are blocked

in biscuit segments

Retailer Brand products

next to Market Leaders
Biscuit Layout Length: c.8.5
metres

Category Layout Premium Retailer

Focus on quality and

width of assortment

Everyday Treats
Chocolate Biscuits &
Cookies

Special Treats

Biscuits in Grocery
opposite Confectionery

(Chocolate
Bars)

Healthy
Biscuits

Premium

High category space for

size of store due to
older consumer profile

Biscuits
for Children

Continental Biscuits

Supermarket retailer
focused on quality
food offer

Everyday
Biscuits
Everyday
Treats

Large organic range,

Fair Trade products
and exclusive lines

Retailer Brand products

on key selling shelves
Biscuit Layout Length: c.9.6
metres

Copyright SMart In Corporates Ltd

Centre of layout for

higher price segments

Category Roles

Destination
Core/Preferred
Convenience
Seasonal

Category Strategies
Transaction
Building
Traffic
Building
Share
Protecting

Cash
Generating

Profit
Generating

Image
Enhancing
Excitement
Creating

Category Strategies
Traffic
Building

Transaction
Building

Turf
Protecting

This strategy aims at getting the shopper into the store and purchase
from the category and from the store in general

to the store
in the store

value
This strategy aims at increasing the shopper's average purchase
volume
of the category
This strategy aims at protecting the obtained market share and turnover of subcategories against competition.
The retailer wishes to be unbeatable in that segment of the category.

Cash
Generating

This strategy aims at increasing cash flow by high rotation of absolute value products.
This strategy can be realised through long payment term agreements with the supplier.

Profit
Generating

This strategy aims at increasing the sales of high margin products (> average category margin)

Image
Enhancing

This strategy aims at creating an image towards the target shopper in one of the
following domains: pricing, service, quality or assortment

Excitement
Creating

This strategy aims at meeting the shopper' needs by offering trendy and
innovative products

3TC PIE

79

Implications for Unilever

How Can We Help the Customer Grow or Defend Their Business?
How does your customer expect to grow their overall business?

How do they expect to grow the department/category?

Is your customer interested in identifying new ways to grow their overall business or
specific categories?

Is your customer interested in growing sales within:

a specific shopper segment such as families with young children?

a type of shopping mission such as a stock-up or trips for
immediate needs?
a specific department or category?
a store format?
Is your customer interested in having Unilever generate insight for collaboratively
creating growth solutions?
Is your customer interested in evaluating the effectiveness of a new growth idea
that affects Unilever?

Implications for Unilever

How Can We Help the Customer Grow or Defend Their
Business?
Is your customer interested in new strategies for increasing
differentiation and/or shopper loyalty?
Is your customer looking for more efficient ways of using their retail
space? Their aisle space? Their shelf space?
Is your customer interested in improving the in-store experience to
increase differentiation and/or shopper loyalty?
Is your customer interested in increasing the shopability of the store
or a particular department or shelf?
Is your customer interested in understanding the role of out-of-stocks
on category volume? On shopper loyalty?
Would your customer like to understand how shoppers shop the aisle
or shelf in order to set category adjacencies or planograms?

Implications for Unilever

All questions are focused on how can we help the
customer to grow
How we identify the apparent issues/opportunities for
growth:

They come from the customers objectives or

from getting the customer to adopt our
objectives (based on business analysis)
Ideally they represent a mutual objective
They should be stated in terms of both the
customer & the shopper

Customer, Shopper & Brand

Customer
Objectives

Shopper
Insight

Brand
Objectives

Actual Customers Perspective